State rules for awarding federal economic stimulus funds to improve local water and sewer facilities could be ready next week, officials said.

Since late last year, some local municipalities, anticipating the money might be available, have been submitting lists of projects that could use those dollars.

The Kenosha Water Utility, for example, filed with the state for $96 million for water projects, including main replacements, and $5 million for sewage treatment plant upgrades, said manager Ed St. Peter.

Preference will be given to projects that are ready to go, which is fine with St. Peter.

“They want to put people to work immediately,” he said, “and I’m ready.”

Wisconsin is to receive about $106 million of the stimulus package for wastewater, storm water and similar work and $38 million for drinking water projects, said Bob Ramharter, Wisconsin Department of Natural Resources chief of the environmental loans section. Half of that money will be distributed as loans and half as grants, which won’t have to be repaid.

Decisions on loan interest, criteria for awarding the money and other policy decisions are to be made by the secretaries of the DNR and state Department of Administration and possibly other state officials, Ramharter said.

The stimulus money is to help outdated wastewater systems that release more than 23 billion gallons of sewage into the Great Lakes every year, usually during heavy flooding. The overflows cause high bacteria counts in beach water and hurt the outdoor recreation economy.

A 2005 study suggested nearly $14 billion was needed to upgrade the sewage treatment systems.

Some environmental groups would like a different approach, however.

Dan Kohler, Wisconsin Environment director, said the focus should be more on reducing the water flow through treatment plants by using wetlands, rain gardens and other collection ways.

“We’re trying to do more to return to the natural flow of water,” he said.

That approach, generally called “green environment” projects, including water efficiency, energy efficiency and innovative processes, is to be funded by 20 percent of the stimulus money, Ramharter said.

Ramharter said municipalities already have filed 396 notices of their intent to apply for $1.2 billion in wastewater projects, more than 11 times the stimulus amount available. They also have said they intend to submit 285 applications for $600 million in drinking water funds, almost 16 times what’s available. There are other, non-stimulus dollars available, too.

Somers is asking for $800,000 for a water main project and $1.6 millon for a sewer interceptor. Twin Lakes is hoping for $1.4 million for improvements to lift stations and force mains in the collection system of its treatment plant. Pleasant Prairie has applied for almost $27.7 million for sanitary sewer, storm sewer, water and other utility projects.

John Berg, Paddock Lake administrator, said the village needs about $11 million for sewage treatment plant renovations. Officials there have been hoping for no more than 3 percent interest on that money, if awarded.

“But zero percent interest would be great” on stimulus funds, he said. “I’d be more than happy with that.”