Alaska DEC plan offers fully forgivable loans for PFAS drinking water projects

The Alaska Department of Environmental Conservation will put $7.64 million in federal fiscal year 2025 funding toward drinking water projects that address emerging contaminants, according to its final Intended Use Plan.

The loans come with 100% principal forgiveness, meaning recipients will not have to repay the money. Projects addressing PFAS, per- and polyfluoroalkyl substances, get priority for funding. Projects that address PFAS in finished water earn extra scoring points.

In total, about $30.7 million in Emerging Contaminants funding is available to Alaska, the plan says. Separately, the EPA announced in May a $9,457,000 allotment for Alaska under its Emerging Contaminants in Small or Disadvantaged Communities program.

Demand is higher than the money on hand. Projects on the state's priority list request about $30 million, against about $20.6 million in net funds available. One is a Girdwood well project eligible for $5 million to address high manganese levels.

At least a quarter of the funding must go to disadvantaged communities or systems serving fewer than 25,000 people. This state fiscal year, that floor is $1,964,250.

The program issued $3.4 million in forgiven loans in state fiscal year 2025. The next deadline for project questionnaires is Oct. 31.