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DEQ awards nearly $8 million to two drinking water and wastewater systems 

June 6, 2024

Contact: MaryAnna Peavey, Grants and Loans Bureau Chief,  

BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of $7,625,252 in construction grants to two drinking water and wastewater systems.   

These construction projects are made possible through Governor Little’s Leading Idaho initiative.  

“Water is our most valuable resource, and we absolutely must keep up the infrastructure to ensure water is clean and plentiful for this generation and future ones. That is why we made historic investments in water quality and quantity this year as part of my ‘Leading Idaho’ plan,” Governor Little said. “These investments also could keep your property taxes low. Property taxes are determined locally but the investments we made in water and other infrastructure needs at the state level help relieve the burden on local government to cover costs of projects, improving the chances property owners won’t be burdened with the costs,” said Governor Little. 

The following systems received funding: 

Fernwood Water and Sewer District – Fernwood Water and Sewer District in Benewah County was awarded $1.5 million to install a new well and connect to the existing water system.  

City of Kendrick – The city of Kendrick in Latah County was awarded $6,125,252 for wastewater treatment plant improvements, including upgrading from a lagoon system to a mechanical treatment system. 


In 2023, the State of Idaho approved plans to roll out $115 million in water and wastewater infrastructure project funding, benefiting communities across Idaho through DEQ’s State Revolving Loan Fund Program. This program provides grants and low-interest loans to qualified recipients to improve their drinking water and wastewater facilities. The criteria and list to expend the Leading Idaho funds are listed here.  

These construction grants represent an estimated $13,050,481 savings to communities compared to average costs for municipal general obligation debt issuances. For more information about DEQ’s State Revolving Loan Fund Program and to learn more about this year’s funding recipients, go to DEQ’s Construction Loans page. 

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