Who Pays for Dam Removal?

“Who is paying for this?” is one of the more common questions that comes up around dam removal. It’s an important question and one that deserves transparency. Dam removal is an expensive endeavor that can often incur significant costs well before the actual dam removal part happens. That is why there are plenty of grant options available for dam owners to take advantage of as they navigate through all phases of a dam removal project. 

There are many different types of grants offered by all different types of entities – federal, state, local, private, and even other nonprofit organizations. No matter who is offering the grant, there are always specific guidelines as to what types of projects the funder is looking to fund. For example, the State’s Division of Ecological Restoration (DER) offers a Culvert Replacement Municipal Assistance (CRMA) grant annually. These grants are only awarded to municipalities across the state that need to design, permit, or construct a stream crossing culvert upgrade project. The grant money is specifically allocated in the State’s budget every year and cannot be repurposed for projects that do not meet the goal of upgrading municipally owned culverts.

The same is true for virtually all grants – the money is allocated for a specific purpose and goal and cannot simply be repurposed for other, non-related projects. So in the case of dam removal, states around the country and the federal government (i.e., agencies like NOAA) choose to offer grants that will fulfill the goal of dam removal because it is a tried and true restoration strategy that has many benefits beyond restoring fish passage. These projects are so important that there is typically enough grant funding to ensure dam owners will not pay out of their own pocket to fund any part of the project.

Over the years, the Ipswich Mills Dam removal project has received a large amount of funding from a variety of sources because of the huge benefits that dam removal would bring. The project is part of DER’s Priority Projects program, which funds a selected few projects across the state that offer vast and unique restoration benefits. DER has provided the majority of funding over the years to support the feasibility efforts, which outline both the benefits and potential risks of the project.  Additional funding has come from the Massachusetts Environmental Trust, Massachusetts Executive Office of Energy and Environmental Affairs, as well as the National Oceanic and Atmospheric Administration.

Additionally, as the most important restoration action in the watershed, IRWA has contributed staff time and resources over the years to keep the project moving forward. 

If you want to read more about the benefits of dam removal, check out these helpful resources:

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