Rural Water’s small and rural community membership secured a massive legislative victory on Friday when the House passed the Infrastructure Investment and Jobs Act (H.R.3684) by a 228-206 vote. This $1.2 trillion infrastructure investment bill passed the Senate back in August and now heads to the President’s desk for his imminent signature. The historic legislation includes $55 billion for drinking water and wastewater infrastructure (read EPA’s statement here) and the funding is mainly appropriated through the following state revolving fund provisions:
The Drinking Water State Revolving Fund (DWSRF) is funded for a total of $11.713 billion over five years: $1.902 billion for Fiscal Year (FY) ‘22, $2.202 billion for FY ‘23, $2.403 billion for FY ‘24, and $2.603 billion for FY ‘25-’26. FY ‘22 and FY ‘23 funds require a 10% state match while FY ‘24-‘26 require a 20% match. 49% of the funds shall be used to provide additional subsidy to eligible recipients in the form of assistance agreements with 100% principal forgiveness or grants or a combination of the two. Up to 3% of FY ‘22 funding and 2% of FY ‘23-’26 funding is for salaries and administration.
A new dedicated lead service line replacement fund within the DWSRF is funded for a total of $15 billion through the DWSRF, $3 billion for each of five fiscal years (FY ‘22-’26). Eligible activities include identification, planning, design, and replacement of lead service lines with 49% of the funds dedicated entirely for principal forgiveness or grants. Funds provided under this new program are not subject to the matching or cost-share requirements. Up to 3% of FY ‘22 funding and 2% of FY ‘23-’26 funding is directed to salaries and administration.
A new dedicated fund within the DWSRF for emerging contaminants focuses on PFAS and is funded for a total of $4 billion ($800 million for each of five fiscal years, FY ‘22-’26). There is no matching requirement for the states. 100% of the funds are dedicated to principal forgiveness or grants or a combination of the two. Up to 3% of FY ‘22 funding and 2% of FY ‘23-’26 funding is for salaries and administration.
A new dedicated fund for grants to Small and Disadvantaged Communities to target emerging contaminants is funded for a total of $5 billion ($1 billion each for each fiscal year, FY ‘22-’26). EPA’s Small and Disadvantaged Communities’ program is defined in subsections (a) through (j) of section 1459A of the Safe Drinking Water Act (link). No state match is required, and up to 3% of FY ‘22-’26 funding is to be used for salaries and administration.
The Clean Water State Revolving Fund (CWSRF) is provided with a total of $11.7 billion over five years, $1.902 billion for FY ‘22, $2.202 billion for FY ‘23, $2.403 billion for FY ‘24, and $2.603 billion for FY ‘25-‘26. FY ‘22 and FY ‘23 funds require a 10% state match while FY ‘24-’26 require a 20% match. 49% of the funds shall be used to provide additional subsidy to eligible recipients in the form of assistance agreements with 100% principal forgiveness or grants or a combination of the two. Up to 3% of FY ‘22 funding and 2% of FY ‘23-26 funding is for salaries and administration.
A new dedicated fund for grants within the CWSRF to address emerging contaminants is included in the bill with $100 million for FY ‘22 and $225 million for FY ‘23-26. No state match is required. 100% of the funds are dedicated to principal forgiveness or grants or a combination of the two. Up to 3% of FY ‘22 funding and 2% of FY ‘23-26 funding is for salaries and administration.