The U.S. Environmental Protection Agency (USEPA) has more than $1.1 billion available to the 50 States and Puerto Rico in 2018 Drinking Water State Revolving Fund (DWSRF) loans, plus $23 million for Tribal water systems, and $28 million for the District of Columbia and territorial water systems.
The U.S. Congress appropriates funding for the DWSRF and USEPA awards capitalization grants to each State based on the results of the most recent Drinking Water Infrastructure Needs Survey and Assessment. The States provide a 20 percent match. States have the option of taking a variety of set-asides, which help fund State programs and activities to ensure safe drinking water. In total, States may take up to 31 percent of their capitalization grant in set-asides.
After taking their set-asides, States place the balance of their capitalization grant, together with the State match, into a dedicated revolving loan fund. The funds provide loans and other authorized assistance to water systems for eligible infrastructure projects. As water systems repay the loans, the repayments and interest flow back into the dedicated revolving fund and may be used to make additional loans.
Examples of projects that are eligible for DWSRF loans include:
*Projects to improve drinking water treatment
*Fixing leaky or old pipes (water distribution)
*Improving sources of water supply
*Replacing or constructing finished water storage tanks
*Infrastructure projects needed to protect public health
More information about the DWSRF, including how communities can apply to State programs for DWSRF assistance, can be found on the USEPA website, or contact Ryan Graf, AE2S Nexus Financial Analyst, for more information.