Capitalization Grants for Drinking Water State Revolving Funds

 

Grants are made to States and Puerto Rico to capitalize their Drinking Water State Revolving Funds (DWSRFs) which will provide a long-term source of financing for the costs of drinking water infrastructure. Grants are also made to the District of Columbia, U.S. Territories (Virgin Islands, Northern Mariana Islands, American Samoa, and Guam), and Indian Tribes. Funding Priority - Fiscal Year 2019: The funding priority established by the SDWA are for capitalization grants to each state for infrastructure improvement projects that are needed to achieve or maintain compliance with SDWA requirements, protect public health, and assist systems with economic need. A state may use a portion of the capitalization grant funds for programs that emphasize preventing contamination problems through source water protection and enhancing water system management. States and EPA Regions determine priorities for funding in accordance with SDWA. The program supports the Agency's strategic goal of providing for clean and safe water. 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. Funding Priority - Fiscal Year 2020: The funding priority established by the SDWA are for capitalization grants to each state for infrastructure improvement projects that are needed to achieve or maintain compliance with SDWA requirements, protect public health, and assist systems with economic need. A state may use a portion of the capitalization grant funds for programs that emphasize preventing contamination problems through source water protection and enhancing water system management. States and EPA Regions determine priorities for funding in accordance with SDWA. The program supports the Agency's strategic goal of providing for clean and safe water.

General information about this opportunity
Last Known Status
Active
Program Number
66.468
Federal Agency/Office
Environmental Protection Agency
Type(s) of Assistance Offered
A - Formula Grants
Program Accomplishments
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 2019 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY 19, states, tribes, and territories will continue to receive funding to support infrastructure improvement projects.
Fiscal Year 2020 All 50 states and Puerto Rico have established and are implementing DWSRF programs through receipt of a capitalization grant. In FY20, states, tribes, and territories will continue to receive funding to support infrastructure improvement projects.
Authorization
Clean Water Act, Section 518(c)
Water Resources Reform and Development Act of 2014 (WRRDA), Public Law 113-121
Clean Water Act, Title VI, as amended
Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018, of the Bipartisan Budget Act of 2018, H.R. 1892, Public Law 115-123, February 9, 2018
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
States, 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. For certain competitive funding opportunities under this CFDA description, the Agency may limit eligibility to compete to a number or subset of eligible applicants consistent with the Agency's Assistance Agreement Competition Policy. 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.
Beneficiary Eligibility
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.
Credentials/Documentation
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 130 of the SDWA. Recipients must follow 2 CFR 200 Subpart E.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. 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 drinking water systems. announcement.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 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. Applicants, except in limited circumstances approved by the Agency, must submit all initial applications for funding through https://www.grants.gov. Additional information on the EPA grant package can be found at: https://www.epa.gov/ogd/grants.
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. EPA Headquarters retains the authority to review certain applications or parts thereof.
Deadlines
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 30 to 60 days. Approval time averages 45 days.
Appeals
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 requested by contacting the individual(s) listed as "Information Contacts." Disputes relating to matters other than the competitive selection of recipients will be resolved under 2 CFR 1500 Subpart E, as applicable.
Renewals
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
Capitalization grants are made available to each State and Puerto Rico for the purpose of establishing a DWSRF for providing assistance to drinking 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, 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.
What are the requirements after being awarded this opportunity?
Reporting
Performance Reports: Performance monitoring is required under this program. Reporting requirements shall be determined at the time of grant award
Auditing
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.
Records
Financial records, including all documents to support entries on accounting records and to substantiate changes to each grant, must be kept available to personnel authorized to examine EPA grant accounts. All records must be maintained for three years from the date of submission of the final expenditure report. If questions still remain, such as those raised as a result of audit, related records should be retained until the matter is completely resolved. 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.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title Protection of the Environment Chapter 40 Part 35 Subpart 3515, 3540, and 3585 Public Law Safe Drinking Water Act, Sec. 1452

Matching is mandatory. 20%. The required State match is 20% of the amount of the capitalization made to the State. 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. The required State match is 20% of the amount of the capitalization made to the State. For Recovery Act funds, the required State match of 20% of the amount of the capitalization grant was waived. The match requirement for the Disaster Relief Act, 2019 funds is 20%. Allocations for the Disaster Relief Act, 2019 funds were developed based on impacts from Hurricanes Florence and Michael, Typhoon Yutu, and the 2018 wildfires and earthquakes. 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.
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. Recovery Act funds were available for EPA's obligation to the State until September 30, 2010. 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. States are also required to 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.
Who do I contact about this opportunity?
Regional or Local Office
See EPA Regional Offices listed in Regional Offices of the Catalog, or online. Region 1 - Katie Marrese, Marrese.Katherine@epa.gov, (617) 918-1658, 5 Post Office Square - Suite 100 Boston, MA 02109-3912. Region 2 - Steve Vida, Vida.Stephen@epa.gov, (212) 637-3862, Ted Weiss Federal Building, 290 Broadway, New York, NY 10007 Region 3 - Vince Gallo, Gallo.Vincent@epa.gov, (215) 814-5773, 1650 Arch St, Philadelphia, PA 19103 Region 4 - Travis Creighton, Creighton.Travis@epa.gov, (404) 562-8344, 61 Forsyth St NW, Atlanta, GA 30303 Region 5 - Gerry Bakker, Bakker.Gerry@epa.gov, (312) 886-0177, Ralph Metcalfe Federal Building, 77 West Jackson Blvd. Chicago, IL 60604-3590 Region 6 Javier Balli, Balli.Javier@epa.gov, (214) 665-7261, 1445 Ross Ave, Dallas, TX 75202 Region 7 Glenn Curtis, Curtis.Glenn@epa.gov, (913) 551-7726, 11201 Renner Blvd, Lenexa, KS 66219 Region 8 Brian Friel, Friel.Brian@epa.gov, (303) 312-6277, 1595 Wynkoop Street, Denver, CO 80202-1129 Region 9 - Josh Amaris ,Amaris.Joshua@epa.gov, (415) 972-3597, 75 Hawthorne Street, San Francisco, CA, 94105 Region 10 - Rick Green, Green.Richard@epa.gov, (206) 553-8504, 1200 6th Avenue Seattle, WA 98101
Headquarters Office
Felecia Fort
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
Fort.Felecia@epa.gov
Phone: 202-564-6239
Fax: 202-564-3754
Website Address
https://www.epa.gov/drinkingwatersrf
Financial Information
Account Identification
68-0102-0-1-304
Obligations
(Formula Grants) FY 18$1,136,667,000.00; FY 19 est $1,126,088,000.00; FY 20 est $863,200,000.00; FY 17$844,255,000.00; FY 16$833,218,900.00; - FY2019: $296,100,000 for projects funded under the Additional Supplemental Appropriations for Disaster Relief Act, 2019.(Formula Grants) FY 18 FY 19 est $296,100,000.00; FY 20 - For projects funded under the Additional Supplemental Appropriations for Disaster Relief Act, 2019.
Range and Average of Financial Assistance
States: $8,500,000 to $97,000,000/fiscal year; $16,318,800/fiscal year. Tribes: $6,000 to $2,400,000/fiscal year; $480,000/fiscal year. Territories: $1,532,000 to $8,787,000/fiscal year; $4,189,000/fiscal year. Recovery Act funds - States: $19,500,000 to $160,000,000/fiscal year. Territories: $500,000 to $2,100,000/fiscal year. Tribes: $15,600 to $3,200,000/fiscal year.
Regulations, Guidelines and Literature
Uniform Administrative Requirements for Grants and Cooperative Agreements (2 CFR 200 and 1500) and Drinking Water State Revolving Funds (40 CFR Part 35, Subpart L). Additional program information, including contact information for state program managers, is available online at http://www.epa.gov/drinkingwatersrf .
Examples of Funded Projects
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 2019 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. 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.
Fiscal Year 2020 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. 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.

 


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