Iowa’s Environmental Protection Commission approved a plan Tuesday to distribute $53 million in federal stimulus money for sewer projects.

The list didn’t include Davenport’s top economic development priority, the $46 million west side sewer diversion tunnel. However, a city official said Tuesday he’s confident Gov. Chet Culver’s I-JOBS bonding initiative will yield a significant contribution for the project.

“We expect to receive substantial funding,” City Administrator Craig Malin said.

Ever since the $787 billion federal stimulus package was proposed, Davenport has hoped it would help pay for a chunk of the sewer project.

Half the state’s allocation is being given out in grants; the rest are low-interest loans. Most of the money will go to smaller cities and towns. Donahue and Princeton will get about $550,000 between them. Clinton would get another $684,000.

The Department of Natural Resources considered several factors in awarding the money, including an applicants’ unemployment rate, median household income and sewer rates.

Davenport officials argued more emphasis should be put on the ability to create jobs and the number of unemployed, not just the rate.

Iowa Gov. Chet Culver said in Davenport a couple weeks ago he thought the city's argument had merit, but the commission made no changes to the DNR's allocation formula.

Malin said that in addition to a possible I-JOBS contribution, the city expects a $10 million loan from the state for the project from the state's clean water revolving loan fund. It is already on an approved list of projects, said Patti Cale-Finnegan, the loan coordinator.

The sewer line will extend from River Drive and Howell Street to Silver Creek northwest of Williams Intermediate School. City officials say it will help resolve existing problems, as well as open up large parts of northwest Davenport for development.