Feds send Otsego Township millions for water treatment upgrades as PFAS mitigation continues

Editor's note: This story has been updated online to reflect that Otsego Township, not the city of Otsego, is receiving the USDA loan. The Sentinel originally received inaccurate information.

HOLLAND — The U.S. Department of Agriculture announced on Thursday a $2.6 million loan to the Otsego Township in Allegan County for water treatment work, part of a $27.4 million investment in water infrastructure in Michigan through the federal Water and Waste Disposal Loan and Grant Program. 

Otsego will use the funds to extend its water system to approximately 120 additional homes as state health teams continue to monitor and examine potential PFAS polution in the area. The loans are meant to be long-term, low interest for rural areas and towns with populations of 10,000 or less.

According to the USDA, the work will be done in conjunction with the sewer extension project and will construct 11,000 feet of water main with hydrants, valves, service laterals and restoration.  An additional $3.8 million loan will be used to construct 1.7 miles of gravity sewer with manholes, service laterals and restoration. 

In total, the feds are sending over $27 million to rural communities in Michigan for water infrastructure upgrades.  

More:MDHHS testing Otsego area wells for PFAS as part of ongoing study

“When we invest in rural infrastructure, we build opportunity and prosperity for people in rural communities. These investments support the local economy by making rural communities attractive, economically viable and safe places to live and work, therefore helping to create and save jobs by attracting and retaining employers and workers,” USDA Secretary Tom Vilsack said in a statement. 

Since July 2018, Michigan Department of Health and Human Services researchers have collected water and soil samples to accurately detect the level of PFAS contamination in Otsego. State officials believe landfills, as well as the site of the former Rock-Tenn paper mill in Otsego, could be sources of PFAS contamination. 

PFAS (per- and polyfluoroaklyl substances) are contaminants that can case health concerns like thyroid disease, kidney and testicular cancers as well as higher levels of cholesterol. The U.S. Environmental Protection Agency says the chemicals can be found in products used to break down grease, oil and other similar substances. PFAS are hard to break down, and are sometimes referred to as "forever chemicals."  

Places where contamination is possible include former industrial sites, fire stations and military bases. 

Advocates for PFAS contaminant cleanup recently announced policy priorities they want state officials to dedicate a portion of the $11 billion in federal coronavirus relief funds Michigan to. An estimated 11,000 sites in Michigan are believed to be PFAS contaminated, according to the state. 

The Great Lakes PFAS Action Network is calling on leaders to take steps to further prevent PFAS contamination in communities, including preventing initial PFAS contamination, increasing access to testing for potential exposure, supporting communities affected by PFAS and being transparent whenever PFAS exposure is dedicated. 

“PFAS impacts people, communities, waterways and wildlife across our entire state. It's a growing crisis that requires forward-thinking action, and there are concrete steps that state policy makers can take now in order to address it.” said Tony Spaniola, co-chair of the Great Lakes PFAS Action Network, during a Tuesday press conference in Lansing.

— Contact Arpan Lobo at alobo@hollandsentinel.com. Follow him on Twitter @arpanlobo.