Clean Water State Revolving Fund

 

To create State Revolving Funds (SRFs) through a program of capitalization grants to States which will provide a long-term source of State financing for construction of wastewater treatment facilities and implementation of other water quality management activities. Funding Priority - Fiscal Year 2023: Capitalization grants are available to each State for the purpose of establishing a Clean Water SRF for providing assistance for: (1) construction of publicly owned wastewater treatment works; (2) implementation of nonpoint source management activities included in State Plans developed pursuant to Section 319; (3) development and implementation a National Estuary Program comprehensive conservation and management plan under Section 320; (4) the construction, repair, or replacement of decentralized wastewater treatment systems that treat municipal wastewater or domestic sewage; (5) measures to manage, reduce, treat or recapture stormwater or subsurface drainage water; (6) any municipality or intermunicipal, interstate, or State agency for measures to reduce the demand for publicly owned treatment works capacity through water conservation, efficiency or reuse; (7) the development and implementation of watershed projects meeting the criteria set forth in section 122; (8) any municipality or intermunicipal, interstate, or State agency for measures to reduce the energy consumption needs for publicly owned treatment works; (9) reusing or recycling wastewater, stormwater, or subsurface drainage water; (10) measures to increase the security of publicly owned treatment works; (11) any qualified nonprofit entity, as determined by the Administrator, to provide assistance to owners and operators of small and medium publicly owned treatment works to plan, develop, and obtain financing for eligible projects under section 603(c), including planning, design, and associated preconstruction activities and to assist such treatment works in achieving compliance with the Clean Water Act (CWA); and (12) any qualified nonprofit entity, as determined by the Administrator, to provide assistance to an eligible individual (as defined in subsection (j)) (A) for the repair or replacement of existing individual household decentralized wastewater treatment systems or in a case in which an eligible individual resides in a household that could be cost effectively connected to an available publicly owned treatment works, for the connection of the applicable household to such treatment works. The program supports the Agency's strategic goal of providing clean and safe water. The Infrastructure Investment and Jobs Act (IIJA), 2021, (Public Law 117-58), makes available additional capitalization grants to each state for the purpose of providing assistance through the Clean Water SRF to: (1) activities identified above and (2) activities identified above for projects that address emerging contaminants. The capitalization grant is deposited in the State's SRF, which is used to provide loans and other types of financial assistance, to local communities, intermunicipal and interstate agencies, and other eligible entities as described in Title VI of the Clean Water Act. Division N of the Consolidated Appropriations Act, 2023, Public Law 117-328 also includes $665.2 million in supplemental funding for the CWSRF, available only to states or territories in EPA Regions 2 and 4 for treatment works impacted by Hurricanes Fiona or Ian. A maximum of four percent of the grant amounts, $400,000 each year, or 1/5 percent per year of the current valuation (total net position) of the fund may be used by the States for the cost of administering the SRF. States determine priorities for funding within their State in accordance with the CWA. For the 51 State CWSRFs, a portion of the capitalization grant funding must be used to provide additional subsidy in the form of grants, principal forgiveness, or negative interest loans.

Active 66.458 Environmental Protection Agency A - Formula Grants Fiscal Year 2016 Each year, 51 grants are awarded to states and Puerto Rico. Assistance in FY 16 will include funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis. Each year, 51 grants are awarded to states and Puerto Rico. The program funds an estimated 10 to 20 percent of the nation's annual wastewater capital projects. The program has provided over $120 billion in cumulative assistance since 1988. Assistance has included funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis. In FY 16, the program provided $7.6 billion in assistance. This included $2.8 billion for secondary treatment to reduce pollutant loads, $1.7 billion to upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment, and over $3.1 billion to prevent polluted runoff.
Fiscal Year 2017 Each year, 51 grants are awarded to states and Puerto Rico. The program funds an estimated 10 to 20 percent of the nation's annual wastewater capital projects. The program has provided over $100 billion in cumulative assistance since 1988. Assistance in FY 17 included funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis.
Fiscal Year 2018 Each year, 51 grants are awarded to states and Puerto Rico. Assistance in FY 18 included funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis.
Fiscal Year 2019 Each year, 51 grants are awarded to states and Puerto Rico. The CWSRFs provided $6.2 billion in assistance to projects in FY19. Assistance in FY 19 included funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis. Disaster Relief Act, 2019, funds are directed to certain areas of the country effected by specific hurricanes and other natural disasters per the statute.
Fiscal Year 2022 Each year, 51 grants are awarded to states and Puerto Rico. Assistance in FY 22 includes funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis. Disaster Relief Act, 2019, funds are directed to certain areas of the country effected by specific hurricanes and other natural disasters per the statute.
Fiscal Year 2023 Each year, 51 grants are awarded to states and Puerto Rico. Assistance in FY 22 includes funding to prevent polluted runoff, upgrade wastewater treatment plants from secondary level treatment to advanced (tertiary) treatment to reduce pollutant loads, and improve water quality on a watershed basis. Clean Water Act (CWA), as amended, Public Law 95-217; Water Quality Act of 1987, Sections 601 through 607, 205(m), Public Law 100-4; American Recovery and Reinvestment Act of 2009, Public Law 111-5; Infrastructure Investment and Jobs Act (IIJA), 2021, Public Law 117-58; Consolidated Appropriations Act, 2023, Public Law 117-328 States and Puerto Rico are eligible to receive capitalization grants under Title VI. Indian tribes are eligible to receive grants from Title VI for the construction of municipal wastewater facilities. The District of Columbia, territories, possessions of the U.S. are eligible to receive grants from Title VI for the construction of municipal wastewater facilities (see Assistance Listing 66.418). Division N of the Consolidated Appropriations Act, 2023, Public Law 117-328 also includes $665.2 million in supplemental funding for the CWSRF, available only to states or territories in EPA Regions 2 and 4 for treatment works impacted by Hurricanes Fiona or Ian. Only the State of Florida and the Commonwealth of Puerto Rico are eligible to apply for these CWSRF supplemental funds. Two percent of the appropriated funds are reserved for direct grants or interagency agreements to benefit Tribes. For loans and other financial assistance (but not grants) for wastewater treatment facilities: municipalities, intermunicipal, interstate, State agencies, and Indian tribes. For nonpoint source management programs and estuary activities in approved State Nonpoint Source Management Programs and Comprehensive Conservation and Management Plans: the public agencies listed above, individuals, nonprofit organizations, homeowners, land/property owners. To receive a capitalization grant, a State shall enter into an agreement with the EPA Regional Administrator which shall include, but not be limited to, the 10 specifications set forth in Section 602(b) of the CWA. 2 CFR 200 Subpart E applies to the program. Preapplication coordination is required. As indicated in EPA Financial Assistance Programs Subject to Executive Order 12372 and Section 204 of the Demonstration Cities and Metropolitan Development Act and Section 401 of the Intergovernmental Cooperation Act, at https://www.epa.gov/grants/epa-financial-assistance-programs-subject-executive-order-12372-and-section-204, EPA has determined that states meet their intergovernmental review responsibilities when they comply with the public notice requirements for Intended Use Plans prescribed in 40 CFR 35.3150. An applicant (State) should seek pre-application assistance from the appropriate EPA Regional Office. The State is required to prepare and provide for public comment a plan identifying the intended uses of the funds in the SRF (an intended use plan) and how those uses support the goals of the SRF. The plan is to be submitted no later than the application. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Applicants, except in limited circumstances approved by the Agency, must submit all initial applications for funding through Grants.gov. The State must certify in its application that it has the legal, managerial, technical, and operational capabilities to administer the SRF program competently and that it will comply with Federal anti-discrimination laws and other applicable Federal statutes. Regulations at 2 CFR 200 and 1500, as applicable, applies to the State. Establishment of the SRF is a prerequisite for a grant award. A grant application is reviewed by the appropriate Regional Office and, if approved, the grant is awarded by the Regional Administrator under a delegation of authority from the Administrator of EPA. Contact the headquarters or regional location, as appropriate for application deadlines From 30 to 60 days. Approval time averages 45 days. Disputes will be resolved under 2 CFR 1500 Subpart E, as applicable. Not applicable. Grants are awarded to States that satisfy the requirements outlined in the application procedure section. Capitalization grants are available to each State for the purpose of establishing a Clean Water SRF for providing assistance for: (1) construction of publicly owned wastewater treatment works; (2) implementation of nonpoint source management activities included in State Plans developed pursuant to Section 319; (3) development and implementation a National Estuary Program comprehensive conservation and management plan under Section 320; (4) the construction, repair, or replacement of decentralized wastewater treatment systems that treat municipal wastewater or domestic sewage; (5) measures to manage, reduce, treat or recapture stormwater or subsurface drainage water; (6) any municipality or intermunicipal, interstate, or State agency for measures to reduce the demand for publicly owned treatment works capacity through water conservation, efficiency or reuse; (7) the development and implementation of watershed projects meeting the criteria set forth in section 122; (8) any municipality or intermunicipal, interstate, or State agency for measures to reduce the energy consumption needs for publicly owned treatment works; (9) reusing or recycling wastewater, stormwater, or subsurface drainage water; (10) measures to increase the security of publicly owned treatment works; (11) any qualified nonprofit entity, as determined by the Administrator, to provide assistance to owners and operators of small and medium publicly owned treatment works to plan, develop, and obtain financing for eligible projects under section 603(c), including planning, design, and associated preconstruction activities and to assist such treatment works in achieving compliance with the Clean Water Act; and (12) any qualified nonprofit entity, as determined by the Administrator, to provide assistance to an eligible individual (as defined in subsection (j))— (A) for the repair or replacement of existing individual household decentralized wastewater treatment systems or in a case in which an eligible individual resides in a household that could be cost effectively connected to an available publicly owned treatment works, for the connection of the applicable household to such treatment works. The capitalization grant is deposited in the State's SRF, which is used to provide loans and other types of financial assistance, to local communities, intermunicipal and interstate agencies, and other eligible entities as described in Title VI of the Clean Water Act. A maximum of four percent of the grant amounts, $400,000 each year, or 1/5 percent per year of the current valuation (total net position) of the fund may be used by the States for the cost of administering the SRF. States determine priorities for funding within their State in accordance with the CWA. The Infrastructure Investment and Jobs Act (IIJA), 2021, (Public Law 117-58), makes available additional capitalization grants to each state for the purpose of providing assistance through the Clean Water SRF to: (1) activities identified above and (2) activities identified above for projects that address emerging contaminants. The capitalization grant is deposited in the state's SRF, which is used to provide loans and other types of financial assistance to municipalities, intermunicipal, interstate, and State agencies and other eligible entities as described in Title VI of the Clean Water Act. Performance Reports: Reporting requirements shall be determined at the time of grant award. Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff, or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. A State must, at a minimum, comply with the provisions of 2 CFR 200, Subpart F. States are also encouraged to conduct annual independent audits. As part of the annual review conducted by the agency to assess the State's performance against activities identified in the intended use plan and annual report, and to determine compliance with the terms of the capitalization grant agreement, the State or loan recipient shall make available to EPA such records as the Regional Administrator reasonably requires to review and determine State compliance with the requirements of the CWA. Recipients must keep financial records, including all documents supporting entries on accounting records and to substantiate changes in grants available to personnel authorized to examine EPA recipients grants and cooperative agreements records. Recipients must maintain all records until 3 years from the date of submission of final expenditure reports as required by 2 CFR 200.334. If questions, such as those raised because of audits remain following the 3-year period, recipients must retain records until the matter is completely resolved. Statutory Formula: Title Clean Water Act Part Section 205(c)(3) Allotments to the States are determined by a table of decimal fractions ("formula") in Section 205(c)(3) of the Clean Water Act (CWA).

Matching is mandatory. Under the CWSRF base appropriations the required State match is 20% of the amount of the capitalization made to the State. Under the FY23 IIJA general supplemental capitalization grant appropriations, the required State match is 10% of the amount of the capitalization grant made to the State. Under the IIJA Emerging Contaminant supplemental capitalization grant, match is waived. The match is also waived for the supplemental appropriation under the 2023 Consolidated Appropriations Act.

MOE requirements are not applicable to this assistance listing. Funds are available for EPA's obligation to the State during the fiscal year in which they are allotted and during the following year. The State must agree to enter into binding commitments with recipients to provide financial assistance from the SRF in an amount equal to 120 percent of each quarterly grant payment. The State is also required to agree to expend all funds in the SRF in an expeditious and timely manner The method of fund disbursement will be determined at the time of award. None/Not specified. Kelly Tucker
Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W. (Mail Code: 4204M)
Washington, DC 20460 USA
tucker.kelly@epa.gov
Phone: (202) 564-0608
Fax: (202) 501-2403 https://www.epa.gov/cwsrf 68-0103-0-1-304 (Formula Grants) FY 22$1,195,186,949.00; FY 23 est $774,752,358.00; FY 24 est $1,635,874,000.00; FY 21$1,638,826,000.00; FY 20$1,488,896,900.00; FY 19$1,604,628,300.00; FY 18$1,569,200,000.00; FY 16$1,319,293,600.00; FY 17 est $1,369,202,000.00; - (Formula Grants) FY 22$1,902,000,000.00; FY 23 est $2,202,000,000.00; FY 24 est $2,403,000,000.00; FY 21$0.00; - (IIJA General CWSRF Supplemental)(Formula Grants) FY 22$100,000,000.00; FY 23 est $225,000,000.00; FY 24 est $225,000,000.00; FY 21$0.00; - (IIJA CWSRF Emerging Contaminants)(Formula Grants) FY 22$0.00; FY 23 est $665,210,000.00; FY 24 - (Consolidated Appropriations Act, 2023 Disaster Supplementals) State Revolving Fund capitalization awards range from $7,879,000 to $177,146,000. Awards are also made to Indian Tribes and U.S. Territories. 2 CFR 200 1500 (EPA Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards); 40 CFR Part 33 (Participation by Disadvantaged Business Enterprises in United States Environmental Protection Agency Programs); 40 CFR Part 35 SubPart K (State Water Pollution Control Revolving Funds). Fiscal Year 2016 State revolving loan fund; wastewater projects involving advanced treatment, secondary treatment, infiltration/inflow correction, replacement/upgrade of pipe and equipment and expansion of existing wastewater treatment plants; nonpoint source and estuary protection projects (for example, septic system rehabilitation, leaking underground storage tank removal, contaminated soil removal, agricultural BMPs, conservation easements, wetlands protection/rehabilitation, and prevention of agricultural runoff). State revolving loan fund; wastewater projects involving advanced treatment, secondary treatment, infiltration/inflow correction, replacement/upgrade of pipe and equipment and expansion of existing wastewater treatment plants; nonpoint source and estuary protection projects (for example, septic system rehabilitation, leaking underground storage tank removal, contaminated soil removal, agricultural BMPs, conservation easements, wetlands protection/rehabilitation, and prevention of agricultural runoff).
Fiscal Year 2018 State revolving loan fund; wastewater projects involving advanced treatment, secondary treatment, infiltration/inflow correction, replacement/upgrade of pipe and equipment and expansion of existing wastewater treatment plants; nonpoint source and estuary protection projects (for example, septic system rehabilitation, leaking underground storage tank removal, contaminated soil removal, agricultural BMPs, conservation easements, wetlands protection/rehabilitation, and prevention of agricultural runoff).
Fiscal Year 2022 State revolving loan fund; wastewater projects involving advanced treatment, secondary treatment, infiltration/inflow correction, replacement/upgrade of pipe and equipment and expansion of existing wastewater treatment plants; nonpoint source and estuary protection projects (for example, septic system rehabilitation, leaking underground storage tank removal, contaminated soil removal, agricultural BMPs, conservation easements, wetlands protection/rehabilitation, and prevention of agricultural runoff); stormwater management; decentralized wastewater treatment; water reuse. Funds associated with the Disaster Relief Act, 2019, shall be used for eligible projects whose purpose is to reduce flood or fire damage risk and vulnerability or to enhance resiliency to rapid hydrologic change or natural disaster at treatment works.
Fiscal Year 2023 State revolving loan fund; wastewater projects involving advanced treatment, secondary treatment, infiltration/inflow correction, replacement/upgrade of pipe and equipment and expansion of existing wastewater treatment plants; nonpoint source and estuary protection projects (for example, septic system rehabilitation, leaking underground storage tank removal, contaminated soil removal, agricultural BMPs, conservation easements, wetlands protection/rehabilitation, and prevention of agricultural runoff); stormwater management; decentralized wastewater treatment; water reuse. For projects funded under the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, some project examples include wastewater treatment plant upgrades to address PFAS and other emerging contaminants. For projects funded via the disaster supplementals appropriated in the Consolidated Appropriations Act, 2023, Public Law 117-328, some project examples include upgrade of a treatment facility; and projects to reduce flood or fire damage risk and vulnerability at eligible facilities under section 212 of the Clean Water Act.