Drinking Water State Revolving Fund

 

To provide a low-cost, long-term source of drinking water infrastructure financing, EPA awards capitalization grants to States and Puerto Rico to capitalize their Drinking Water State Revolving Funds (DWSRFs). EPA also awards construction grants to the District of Columbia, U.S. Territories (Virgin Islands, Northern Mariana Islands, American Samoa, and Guam), and Indian Tribes. Funding Priority - Fiscal Year 2023: The funding priority established by the Safe Drinking Water Act (SDWA) is for capitalization grants to each state for infrastructure improvement projects that are needed to address the most serious risk to human health, are necessary to achieve or maintain compliance with SDWA requirements, and assist systems most in need on a per household basis according to State affordability criteria. A state may use a portion of the capitalization grant funds for programs emphasizing contamination prevention through technical assistance, capacity development, operator certification, and source water protection. The program supports the Agency's strategic goal of providing for clean and safe water. The Infrastructure Investment and Jobs Act (IIJA), 2021, (Public Law 117-58), makes available additional capitalization grants to each state and construction grants to the other listed entities for the purpose of providing assistance through the Drinking Water SRF to: (1) activities identified above, (2) activities identified above for projects that address emerging contaminants in drinking water, and (3) activities identified above for projects that identify and replace lead service lines (including related planning and design projects and activities). The capitalization grant is deposited in the State's DWSRF, which is used to provide loans and other types of financial assistance to public water systems as described in Section 1452 of the SDWA. 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, whichever is greatest, may be used by the States for the cost of administering the DWSRF. States may discretionally take other set-asides for small system technical assistance, state program management, and local assistance as described in Section 1452 of the SDWA. States determine priorities for funding within their State in accordance with the SDWA. For the 51 State DWSRFs, 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 66.468 Environmental Protection Agency A - Formula Grants Fiscal Year 2016 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY 16, states, tribes, and territories will continue to receive funding to support infrastructure improvement projects All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY 16, States made 708 loans to systems for a cumulative total of $2.47 billion to conduct infrastructure improvement projects. Of the total number of loans, 71% of loans went to small water systems that serve 10,000 persons or fewer. States also used funds to prevent drinking water contamination through source water protection and enhanced system management.
Fiscal Year 2017 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY 17, states, tribes, and territories continued to receive funding to support infrastructure improvement projects.
Fiscal Year 2018 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY 18, states, tribes, and territories will continue to receive funding to support infrastructure improvement projects.
Fiscal Year 2022 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY22, states, tribes, and territories continued to receive funding to support infrastructure improvement projects.
Fiscal Year 2023 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY23, states, tribes, and territories will continue to receive funding to support infrastructure improvement projects. Safe Drinking Water Act, Section 1452, as amended & Infrastructure Investment and Jobs Act (IIJA) (PL 117-58)
Consolidated Appropriations Act, 2023, Public Law 117-328 States (includes District of Columbia), U.S. Territories or Possessions (the Commonwealth of Puerto Rico, Virgin Islands, Mariana Islands American Samoa, and Guam), and Federally Recognized Indian Tribal Governments are eligible for grants from the program. The Consolidated Appropriations Act, 2023, Public Law 117-328, provides two sets of additional funding. Division N of the Act appropriates $450 million in disaster supplemental funding for the DWSRF, available only to states or territories in EPA Region 4 in areas where the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. ?? 5121 et seq.). The President's emergency declaration dated August 30, 2022, applies to Hinds County, Mississippi, but was necessitated by the water crisis impacting the City of Jackson's public water systems. Therefore, the City of Jackson's public water systems (PWS ID No. MS0250008 and PWS ID No. MS0250012) are the nation's only public water systems eligible for these funds. Division N of the Act also includes $402 million in supplemental funding for the DWSRF, available only to states or territories in EPA Regions 2 and 4 for drinking water facilities impacted by Hurricanes Fiona or Ian. Only the State of Florida and the Commonwealth of Puerto Rico are eligible to apply for these DWSRF supplemental funds. Two percent of the appropriated funds are reserved for direct grants or interagency agreements to benefit Tribes. States, U.S. Territories or Possessions (the Commonwealth of Puerto Rico, Virgin Islands, Mariana Islands American Samoa, and Guam), Federally Recognized Indian Tribal Governments, local, and intrastate. To receive a grant, an applicant enters into an agreement with the EPA Regional Administrator which shall include, but is not limited to, the requirements set forth in Section 1452 of the SDWA. Preapplication coordination is required. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Note that EPA has determined that states meet their intergovernmental review responsibilities under 40 CFR Part 29 when they comply with the public notice requirements for Intended Use Plans prescribed in 40 CFR 35.3555. States are required to prepare and provide for public comment on a plan identifying the intended uses (Intended Use Plan, or IUP) of the funds in the DWSRF and how those uses support the goals of the DWSRF. The IUP is to be submitted no later than the application. An environmental impact statement is not required prior to grant award; however, a State environmental review process must be applied to all subsequent State assistance for public water systems. 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. EPA requires final applications to be made on Standard Form 424. Grants for Tribes, U.S. Territories, and the District of Columbia are selected based on funding priorities established by EPA Regional Offices. States must certify that they have the legal authority to receive a capitalization grant and that they have the legal authority to operate the program. States must provide assurance in their applications that they have the legal, managerial, technical, and operational capabilities to administer the DWSRF program competently and that they will comply with all applicable Federal cross-cutting authorities and Federal statutes. 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. EPA Headquarters retains the authority to review certain applications or parts thereof. For competitive awards, EPA will review and evaluate applications in accordance with the terms, conditions, and criteria stated in the competitive announcement. Competitions will be conducted in accordance with EPA policies/regulations for competing assistance agreements. Contact the headquarters or regional location, as appropriate for application deadlines From 30 to 60 days. Approval time averages 45 days. Assistance agreement competition-related disputes will be resolved in accordance with the dispute resolution procedures published in 70 FR (Federal Register) 3629, 3630 (January 26, 2005). Copies of these procedures may also be found at: https://www.epa.gov/grants/grant-competition-dispute-resolution-procedures. Disputes relating to matters other than the competitive selection of recipients will be resolved under 2 CFR 1500 Subpart E, as applicable. Not applicable. Not applicable. Capitalization grants are made available to each State and Puerto Rico for the purpose of establishing a DWSRF for providing assistance to public water systems for infrastructure improvements. States award loans and other types of financial assistance to eligible public water systems for projects. Once invoices for these projects are submitted to the State, the State can request reimbursement from the Federal Treasury up to the amount of their capitalization grant. A State may elect to use up to approximately 31% of the capitalization grant for other eligible activities, including 4%, $400,000 or 1/5th percent of fund valuation for administration of the program. States may also elect to transfer up to one-third of the DWSRF capitalization grant amount to the Clean Water State Revolving Fund (CWSRF) or an equivalent amount from the CWSRF to the DWSRF program. Grants are also made available to Federally Recognized Indian Tribal Governments, U.S Territories, and the District of Columbia. The Infrastructure Investment and Jobs Act (IIJA), 2021, (Public Law 117-58), makes available additional capitalization grants to each state and construction grants to the other listed entities for the purpose of providing assistance through the Drinking Water SRF to: (1) activities identified above, (2) activities identified above for projects that address emerging contaminants in drinking water, and (3) activities identified above for projects that identify and replace lead service lines (including related planning and design projects and activities). Assistance agreement awards under this program may involve or relate to geospatial information. Geospatial information is information that identifies the geographic location and characteristics of natural or constructed features or boundaries on the earth, or applications, tools, and hardware associated with the generation, maintenance, or distribution of such information. This information may be derived from, among other things, GPS, remote sensing, mapping, charting, and surveying technologies, or statistical data. Further information regarding geospatial information may be obtained by viewing the following website: Geospatial Resources at EPA (https://www.epa.gov/geospatial). 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 a State's performance against activities identified in the intended use plan and biennial report, and to determine compliance with the terms of the capitalization grant agreement, the State or assistance 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 SDWA. 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 Protection of the Environment Chapter 40 Part 35 Subpart 3515, 3540, and 3585 Public Law Safe Drinking Water Act, Sec. 1452 The funds available for allotment to State DWSRF programs are those funds appropriated by Congress under the Safe Drinking Water Act (SDWA 1452; 40 CFR 35.3540 and 35.3585). EPA allots funds to each State based on the State's proportional share of total eligible needs reported for the most recent Drinking Water Infrastructure Needs Survey (which is conducted every four years). The minimum proportional share that each State can receive is 1% of total funds available to States. EPA reserves up to 1.5% of the funds available for allotment to the States to provide grants to the U.S. Territories (Virgin Islands, Mariana Islands American Samoa, and Guam). The SDWA also requires the Administrator to reserve 1% of the funds available for allotment to the States to provide grants to the District of Columbia. The SDWA also allows EPA to reserve funds for national set-asides that include up to 2.0% of the national appropriation for grants to Indian Tribes as well as funding for health effects studies, small system technical assistance, and monitoring of unregulated contaminants.

Matching is mandatory. Under the DWSRF 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 and Lead Service Line supplemental capitalization grants, match is waived. The match is also waived for the two supplementals under the 2023 Consolidated Appropriations Act. For additional information go to: https://www.epa.gov/drinkingwatersrf/annual-allotment-federal-funds-states-tribes-and-territories.

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 term of the grant shall be determined at the time of award. States must agree to enter into binding commitments with loan recipients to provide financial assistance from the DWSRF in an amount equal to the sum of Federal assistance, less amounts used by the State for eligible set-aside purposes, and the State match (if applicable). States must agree to commit and expend all funds in the DWSRF as efficiently as possible, and in a timely manner. The method of fund disbursement will be determined at the time of award. None/Not specified. Nick Chamberlain, DWSRF Team Lead
Drinking Water Protection Division, Office of Groundwater and Drinking Water, U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W. (Mail Code: 4606M )
Washington, DC 20460 US
Chamberlain.Nick@epa.gov
Phone: 202-564-1871 https://www.epa.gov/dwsrf 68-0103-0-1-304 (Formula Grants) FY 22$3,207,507,584.00; FY 23 est $516,617,000.00; FY 24 est $1,125,854,000.00; FY 21$1,126,088,000.00; FY 20$1,126,088,000.00; FY 19$1,107,691,900.00; - (Formula Grants) FY 22$1,166,003,381.00; FY 23 est $2,925,100,000.00; FY 24 est $2,925,100,000.00; FY 21$0.00; - (IIJA Lead Service Line Replacement)(Formula Grants) FY 22$256,176,624.00; FY 23 est $780,100,000.00; FY 24 est $780,100,000.00; FY 21$0.00; - (IIJA Emerging Contaminants)(Formula Grants) FY 22$1,144,736,688.00; FY 23 est $2,151,253,000.00; FY 24 est $2,347,529,500.00; FY 21$0.00; - (IIJA Traditional/Base)(Formula Grants) FY 22$0.00; FY 23 est $852,000,000.00; FY 24 est $0.00; - (Consolidated Appropriations Act, 2023 Disaster Supplementals) States: $60,905,000 to $470,659,000, average approximately $100,000,000/fiscal year. Tribes: $6,000 to $2,400,000/fiscal year; average approximately $480,000/fiscal year. Territories: $17,958,000 to $25,514,000, average approximately $21,000,000 /fiscal year. 2 CFR 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); and 40 CFR Part 35, Subpart L (Drinking Water State Revolving Funds). Additional program information, including contact information for state program managers, is available online at: https://www.epa.gov/dwsrf. Fiscal Year 2016 Drinking water projects addressing treatment, storage, source, transmission, distribution and consolidation. Some examples of projects include: construction of a ultra-violet treatment facility; construction of pumping stations; upgrades of water treatment plant; line replacement; and new wells to replace wells that have been contaminated Drinking water projects addressing treatment, storage, source, transmission, distribution and consolidation. Some examples of projects include: construction of a ultra-violet treatment facility; construction of pumping stations; upgrades of water treatment plant; line replacement; and new wells to replace wells that have been contaminated.
Fiscal Year 2018 Drinking water projects addressing treatment, storage, source, transmission, distribution and consolidation. Some examples of projects include: construction of a ultra-violet treatment facility; construction of pumping stations; upgrades of water treatment plant; line replacement; and new wells to replace wells that have been contaminated.
Fiscal Year 2022 Drinking water projects addressing treatment, storage, source, transmission, distribution, and consolidation. Some project examples include: construction of a ultra-violet treatment facility; construction of pumping stations; upgrades of water treatment plant; water main replacement; service line replacement; and new wells (owned by a public water system) to replace wells that have been contaminated. For projects funded under the Additional Supplemental Appropriations for Disaster Relief Act, 2019: projects to reduce flood or fire damage risk and vulnerability or to enhance resiliency to rapid hydrologic change or natural disaster at eligible facilities under section 1452 of the Safe Drinking Water Act. For projects funded under the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, some project examples include upgrade of a treatment facility to address PFAS; consolidation with another water system that does not have emerging contaminants present; costs for planning and design for a DWSRF-eligible project; complete removal of lead service lines (public and privately owned portion) or service lines made of galvanized iron or galvanized steel; and the development or update of lead service line inventories.
Fiscal Year 2023 Drinking water projects addressing treatment, storage, source, transmission, distribution, and consolidation. Some project examples include: construction of a ultra-violet treatment facility; construction of pumping stations; upgrades of water treatment plant; water main replacement; service line replacement; and new wells (owned by a public water system) to replace wells that have been contaminated. For projects funded under the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, some project examples include upgrade of a treatment facility to address PFAS; consolidation with another water system that does not have emerging contaminants present; costs for planning and design for a DWSRF-eligible project; complete removal of lead service lines (public and privately owned portion) or service lines made of galvanized iron or galvanized steel; and the development or update of lead service line inventories. 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 1452 of the Safe Drinking Water Act.