Capitalization Grants for Clean Water State Revolving Funds (66.458)
Program
66.458 Capitalization Grants for Clean Water State Revolving Funds
Federal Agency
OFFICE OF WATER, ENVIRONMENTAL PROTECTION AGENCY
Authorization
Clean Water Act, as amended; Public Law 95-217; Water Quality Act of 1987, Sections 601 through 607, 205(m); Public Law 100-4.
Program Number
66.458
Last Known Status
Active
Objectives
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 (see 66.418). Funding Priority: Capitalization grants are available to each State for the purpose of establishing a clean water State revolving fund for providing assistance for: (1) construction of publicly owned wastewater treatment works; (2) implementing nonpoint source management activities included in State Plans developed pursuant to Section 319; and (3)developing and implementing an estuary conservation and management plan under Section 320. The capitalization grant is deposited in the SRF, which is used to provide loans and other types of financial assistance, but not grants, to local communities and intermunicipal and interstate agencies. Assistance may be provided to persons for implementing nonpoint source and estuary management activities if provided for in State Plans developed under Sections 319 and 320. Up to 4 percent of the grant amounts may be used for the cost of administering the SRF.
Types of Assistance
Formula Grants.
Uses and Use Restrictions
Capitalization grants are available to each State for the urpose of establishing a clean water State revolving fund for providing assistance for: (1) construction of publicly owned wastewater treatment works; (2) implementing nonpoint source management activities included in State Plans developed pursuant to Section 319; and (3) developing and implementing an estuary conservation and management plan under Section 320. The capitalization grant is deposited in the SRF, which is used to provide loans and other types of financial assistance, but not grants, to local communities and intermunicipal and interstate agencies. Assistance may be provided to persons for implementing nonpoint source and estuary management activities if provided for in State Plans developed under Sections 319 and 320. Up to 4 percent of the grant amounts may be used for the cost of administering the SRF.
Eligibility Requirements
Applicant Eligibility
States and Puerto Rico are eligible to receive capitalization grants under Title VI. The District of Columbia, territories, possessions of the U.S. and Indian tribes are eligible to receive grants from Title VI for the construction of municipal wastewater facilities.
Beneficiary Eligibility
For loans and other financial assistance (but not grants) for wastewater treatment facilities-local communities, intermunicipal, State, interstate 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 above public agencies and individuals if specified in the approved plans and programs.
Credentials/Documentation
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. OMB Circular No. A-87, "Cost Principles Applicable to Grants and Contracts with State and Local Governments" applies to State grantees.
Application and Award Process
Preapplication Coordination
An applicant (State) should seek preapplication 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. 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 wastewater facilities. 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.
Application Procedure
The standard application for EPA non- construction grant assistance (SF424-A and B) is submitted to the appropriate Regional Office. 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. Regulation 40 CFR Part 31 applies to the State. Establishment of the SRF is a prerequisite for a grant award.
Award Procedure
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.
Deadlines
Applications should be submitted to the appropriate Regional Office no later than July 3 of the year following the year of appropriation to allow sufficient time for review and processing prior to the September 30 reallotment deadline.
Range of Approval/Disapproval Time
Appeals
As described in EPA's Regulation 40 CFR Part 31, Subpart F.
Renewals
For those portions of the State program that do not change from year to year, a subsequent grant application may incorporate by reference relevant portions of the previous year's application which have not changed.
Assistance Considerations
Formula and Matching Requirements
The Regional Administrator may award capitalization grants from funds appropriated for this purpose. Allotments to the States are determined by a table of decimal fractions ("formula") in Section 205(c)(3) of the CWA. The required State match is 20 percent of the amount of each Federal grant payment.
Length and Time Phasing of Assistance
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.
Post Assistance Requirements
Reports
Beginning the first fiscal year after receiving payments the State shall provide an annual report to the Regional Administrator in accordance with the schedule established in the grant agreement (generally not later than 90 days after the end of the fiscal year in which the payments were received). The annual report shall describe how the State has met the goals and objectives for the preceding fiscal year as identified in its intended use plan, including identification of loan recipients, loan amounts, and loan terms and similar details on other forms of financial assistance provided from the SRF.
Audits
A State must, at a minimum, comply with the provisions of the Single Audit Act Amendments of 1996, and the OMB Circular No. A-133 and Compliance Supplement. States are also encouraged to conduct annual independent audits. State conducted audits may be performed in conjunction with the Single Audit Act of 1984. In accordance with the provisions of OMB Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations," non-Federal entities that receive financial assistance of $300,000 or more within the State's fiscal year shall have an audit made for that year. The Office of Management and Budget (OMB) Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations," was published in the Federal Register on June 30, 1997. The Circular implements the Single Audit Act Amendments of 1996. The Circular requires non-Federal entities that expend more than $300,000 in Federal award dollars, to have an audit conducted in accordance with the Circular's provisions. With the revised Circular, the previous OMB Circular No. A-128 for single audits of State and local governments was rescinded and the single audit requirements for these entities were incorporated among the provisions of OMB Circular No. A-133.
Records
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.
Program Accomplishments
As of September 2002, more than 585 awards have been made to 50 States, plus Puerto Rico. The estimate of awards in fiscal year 2003 is 51 (50 States plus Puerto Rico). States and Puerto Rico, in turn, have provided over $42 billion to eligible recipients.
Financial Information
Account Identification
68-0103-0-1-304; 68-0103-7-1-304.
Obligations
FY 02 $1,270,000; FY 03 est $1,341,000,000; and FY 04 est $850,000,000.
Range and Average of Financial Assistance
$10,000,000 to $216,000,000; $30,000,000.
Regulations, Guidelines and Literature
Program guidance was issued January 28, 1988. A State Revolving Fund Management Manual was distributed in November, 1988. Regulations include 40 CFR Part 31 and SRF regulations 40 CFR Part 35, Subpart K which were issued in March 1990.
Related Programs
None.
Information Contacts
Regional or Local Office
EPA Regional Offices listed in Appendix IV of the Catalog.
Headquarters Office
Sheila Platt, State Revolving Fund Branch, Municipal Support Division, (4204M), Office of Wastewater Management, Environmental Protection Agency, Washington, DC 20460. Telephone: (202) 564-0686.
Web Site Address
Examples of Funded Projects
State revolving loan fund; wastewater treatment plants, nonpoint source projects (e.g., prevention of agricultural runoff), and estuary protection.
Criteria for Selecting Proposals
Grants are awarded to States that satisfy the requirements outlined in the application procedure section.
