Lawmakers and utilities press for clear Arkansas ARPA process as water projects face rising costs and long lead times

Committee chair opened a hearing on statewide water and wastewater needs, emphasizing that reliable drinking water and functioning wastewater systems are critical to public health and economic growth. Witnesses from utilities, engineering firms and the Department of Agriculture outlined a broad need and urged a simple, transparent process for allocating federal American Rescue Plan Act (ARPA) funds to water projects.

West Ward, Natural Resources Director at the Arkansas Department of Agriculture, said the department’s working group collected more than 1,400 submissions and mapped “around $5,000,000,000” in statewide needs, and described a plan to reopen a targeted ARPA application period once the steering committee names a dollar figure and final criteria. “We took those submissions, put it on a map, and it's the entire state,” Ward said, summarizing the geographic spread of requests.

Industry witnesses and municipal managers told the committee many projects are technically shovel‑ready but face two bottlenecks: an unclear state allocation process and sharply higher costs and supplier lead times. Michael Clayton of the Arkansas Water and Wastewater Managers Association explained that design and permitting can take years, and equipment delivery alone often adds 40–50 weeks. Springdale’s chief operating officer, Rick Pulverini, said a wastewater improvement that planners estimated at about $45 million has seen bids jump into the $50–79 million range and that even an interim award of $14–15 million would meaningfully help.

Local examples cited in testimony included: Searcy’s sewer expansion (November 2021 estimate $8.2 million, $2 million local match requested); Jacksonville’s wastewater upgrade (initial estimate roughly $16 million, later updated to about $19 million with excluded equipment); Conway County Regional Water’s proposal to install a parallel 24‑inch raw water line that would increase capacity by about 44 percent; and larger regional projects such as Mountain Home’s second intake, which officials estimate near $85 million.

Engineering and construction representatives warned that pandemic‑era supply‑chain problems and high demand have produced steep, volatile price increases and long lead times for key materials. “Ductile iron pipe is 40 weeks out,” one presenter said; another cited 18‑month lead times for some generators and 30–50 percent construction‑cost escalation since the pandemic. Bond counsel and financers also briefed the committee on higher interest rates, noting that local borrowing costs have risen and may complicate financing if projects are delayed.

Several legislators and mayors criticized the ARPA steering committee process and urged the executive branch to set clear priorities and release dedicated funds for water and wastewater. Testimony from small towns described emergency situations—wells or pumps burning out, borrowed generators running on expensive diesel, and communities temporarily dependent on neighboring systems for water—underscoring the urgency of release and distribution of funds.

The Department of Agriculture said it plans a 45–60 day ARPA application window once a dollar figure and criteria are agreed, followed by staff review and presentation to the Natural Resources Commission; from there, projects would proceed through existing public‑meeting processes and legislative oversight. Committee members asked the department and the steering committee to provide lists of submitted projects and to clarify timelines for convening decision forums.

The hearing closed with committee staff directed to obtain outstanding Department of Health comment letters on specific stalled projects, a request for the steering committee to publish who submitted proposals, and follow‑up commitments from the Department of Agriculture on the proposed application criteria. The committee did not take formal action to reallocate ARPA money during the hearing; members urged expedited executive‑legislative coordination so projects can meet federal spending deadlines in 2026.