66.458: Clean Water State Revolving Fund

66.458

Active

Environmental Protection Agency (EPA)

Nov. 3, 2022

Nov. 3, 2022

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 2022: 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. 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.

A - Formula Grants

States (includes the 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 Disaster Relief Act, 2019, (Public Law 116-20), provides additional funding for states and water systems impacted by the Hurricanes Florence and Michael, Typhoon Yutu, and the 2018 wildfires and earthquakes. These disasters affected drinking water and wastewater in EPA regions 4, 9, and 10. Based on the information EPA has, only California had wildfires with major disaster declarations for public assistance during calendar year 2018 and only Alaska had an earthquake with major disaster declaration for public assistance. The Act did not provide an allocation among affected states. The distribution of the disaster supplemental resources took into account several variables, including the number and geographical location of facilities that were directly impacted during the incidents, and the population served by those systems.

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.

https://sam.gov/fal/51bb78d8816240279c54ad4a3fda4a00/view