For many Massachusetts residents, the most obvious part of the state's $8.7 billion share of the federal stimulus package, will come in the form of weather stripping, attic insulation and lower energy bills.

State weatherization projects will receive nearly $122 million in stimulus funding through the U.S. Department of Energy Weatherization Assistance Program, a significant increase from the $6.5 million it provided in fiscal year 2008, and $11.7 million awarded in fiscal year 2009 that will run for two years.

"The $122 million in stimulus funds will be disbursed over a three-year period with a goal of serving 17,000 households," said Phil Heiler, communications director for the Housing and Community Development Center.

Heiler said weatherization funds will be primarily used for sealing windows, attic insulation, side wall insulation and heating system improvements in homes across the state.

"Funding is available to all cities and towns in the commonwealth," Heiler said. "By the U.S. Department of Energy regulations, 12 existing agencies across the state receive the funding based on a historical allocation formula." Heiler said his department recently held a hearing to decide how to distribute weatherization funds that will include $86 million for weatherization organizations, $25 million toward state-aid public housing developments, $6 million for private developments, $4 million for training and technical assistance, and $1 million for the Massachusetts Clean Energy Training Center intended to "train a green, renewable and energy-efficiency skilled workforce."

He said no specific projects will be chosen until July but that his department must submit an official plan to the Department of Energy by mid-May, after which the agency has 60 days to review it.

"Low-income households that are eligible for the state Fuel Assistance Program are also eligible for Department of Energy weatherization and are served based on an established priority system which awards priority of service to households with the greatest needs, such as the elderly, people with disabilities or households with small children," he said.

According to the department's Web site, low-income families save approximately $350 or more each year on energy bills and eliminate 1.79 tons of carbon dioxide annually after their homes have been weatherized.

The increased funding will quadruple weatherization projects for the anti-poverty agency Action for Boston from 300 homes to 1,200 homes.

The state's Energy Task Force must divvy up clean water and drinking water funds as well.

Massachusetts will receive $134 million of the clean water funds for wastewater treatment systems and $52 million for drinking water infrastructure needs. Twenty percent of the funding will go toward green infrastructure, including energy efficiency improvements, green roofs and expanding the production of wind and solar power.

The federal stimulus allotments are double the typical annual federal funding for drinking water systems and six times what is annually provided for wastewater systems.

Executive Office of Energy and Environmental Affairs spokeswoman Lisa Capone said the state needs to change its own regulations to meet new federal standards, including the provision that the federal money go out as grants instead of loans.

The American Recovery and Reinvestment Act requires the funds be awarded as grants rather than loans. Under current state law, the Massachusetts Water Pollution Abatement Trust loans carry a 2 percent interest rate. "There is legislation pending to change that so we could get grants to meet the (federal stimulus)requirements," Capone said.

Jeffrey Simon, overseer of infrastructure project spending in the state, said that a list of potential contenders for the respective funds has been posted on the state Department of Environmental Protection Web site.

"The list is called the "intended use list" that is all the projects that we're going to get done in a particular year," Simon said.

The plan lists projects determined to be most significant in terms of public health and environmental benefit.

The final clean water list includes 16 new planning projects, 22 new construction projects plus 41 carry-over projects from previous lists totaling $744 million. The final drinking water list includes 20 new construction projects, 31 carry-over projects and one planning project totaling $241 million.

"The chosen projects are a combination of ready-to-go, shovel-readiness, regional equity so that we spread all of the jobs around the state, and making sure we invest in projects that provide long-term economic vitality for Massachusetts," Simon said.

All construction projects on the intended use list are eligible for stimulus funds if they are under contract or construction by Feb. 17 and meet the deadlines for application submission.

Drinking water projects include construction of a new water main and storage tank in Lakeville, a water transmission main replacement in West Springfield, and a new water treatment plant in Framingham.

Clean water projects include a sewer extension in Barnstable and Acton, grit removal in New Bedford and a septic system replacement in Taunton.

This report was prepared for The Sun Chronicle by the Boston University Statehouse Program