The company, based in Estancia, has been allocated $8.5 million by the U.S. Department of Agriculture Rural Development Agency, according to a news release from the New Mexico congressional delegation.

"A safe, centralized water system will greatly improve the public health and quality of life for the residents of McIntosh and Torrance County," U.S. Rep. Martin Heinrich said in the release.

Donzil Worthington, senior project manager at Wilson & Co. Engineering, said the funding appeared to be earmarked for the smaller scope project out of three he outlined in January.

The scenario would serve the McIntosh area and serve up to 400 customers.

When construction does get under way, Worthington said it would probably take a year or less to complete the project.

He expects to hear in a few weeks how the funds will granted, which could be a combination of grants and loans or mutually exclusive.

The release stated the funding would be in the form of loans. If it becomes the case, Worthington said loans may not be the best option for EMW. The next step will be to meet with the EMW board to look at what the funding entails and decide what they feel is most desirable to proceed, he said.

"If this is acceptable funding it's a great start — it gets an area that has a need for high-quality water in place," Worthington said. "The stimulus has been quite an interesting scenario. I think the board would still pursue the project; their goal is to build it whatever it takes."

Federal stimulus funding, nearly $42 million, was awarded to water and wastewater projects in New Mexico. The money is part of a $615.8 million package for water and environmental projects in 34 states, U.S. Agriculture Secretary Tom Vilsack announced last week.