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 2017: 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 ensuring clean and safe water.
Related Programs

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.

Fiscal Year 2017: 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: NA.


Agency - Environmental Protection Agency

The mission of the Environmental Protection Agency is to protect human health and the environment. Since 1970, EPA has been working for a cleaner, healthier environment for the American people.

Office - See Regional Agency Offices.

See EPA Regional Offices listed in the Catalog, or online.



Selected Recipients for this Program


RecipientAmount Start DateEnd Date
Department Of Environment And Natural Resources $ 13,573,000   2010-07-282030-09-30
Montana Department Of Environmental Quality $ 10,573,000   2010-06-152030-05-31
Colorado Water Res & Power Dev Authority $ 24,074,000   2010-06-152030-05-01
Environmental Quality, Utah Department Of $ 8,146,000   2009-07-012029-09-30
State Lands And Investments, Wyoming Office Of $ 13,573,000   2010-09-012029-08-31
Health, North Dakota Department Of $ 8,146,000   2009-07-012029-07-01
Colorado Water Res & Power Dev Authority $ 14,350,000   2009-07-012029-07-01
Department Of Environment And Natural Resources $ 8,146,000   2009-07-012029-07-01
Montana Department Of Environmental Quality $ 8,146,000   2009-07-152029-06-30
Sd Department Of Environment & Natural Resour $ 8,146,000   2008-05-152028-09-30



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 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 will continue to receive funding to support infrastructure improvement projects. Fiscal Year 2018: NA.

Uses and Use Restrictions

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.

Assistance agreement awards under this program may involve or relate to geospatial information.

Further information regarding geospatial information may be obtained by viewing the following website: https://www.epa.gov/geospatial.

Grant recipients and sub-recipients are encouraged to adopt and enforce policies that ban text messaging while driving company-owned or -rented vehicles or government-owned vehicles, or while driving privately-owned vehicles when on official government business or when performing any work for or on behalf of the government.

Grant recipients and sub-recipients are encouraged to conduct initiatives of the type described in section 3(a) of the Federal Leadership on Reducing Text Messaging While Driving Executive Order that was signed on October 1, 2009.

Eligibility Requirements

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.

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. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

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.

Regarding pre-application/pre-proposal assistance with respect to competitive funding opportunities under this program description, EPA will generally specify the nature of the pre-application/pre-proposal assistance, if any, that will be available to applicants in the competitive announcement.

For additional information, contact the individual(s) listed as 'Information Contacts' or see Appendix IV of the Catalog.

Environmental impact information is not required for this program.

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 Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The standard application forms as furnished by the Federal agency and required by 2 CFR 200 and 1500 as applicable, must be used for this program. EPA requires final applications to be made on Standard Form 424. Requests for application kits must be submitted to the Environmental Protection Agency, Grants and Interagency Agreements Management Division, 1200 Pennsylvania Avenue, N.W., Mailcode 3903R, Washington, DC 20460 or through the appropriate Regional Office listed in Appendix IV of the Catalog. Additional information on the EPA grant package can be found at: http://www.epa.gov/ogd/grants/how_to_apply.htm. Grants for Tribes, U.S. Territories, and the District of Columbia are selected based on funding priorities established by EPA Regional Offices. 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 http://www.grants.gov.

Award Procedures

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. For competitive awards, EPA will review and evaluate applications, proposals, and/or submissions in accordance with the terms, conditions, and criteria stated in the competitive announcement. Competitions will be conducted in accordance with EPA policies/regulations for competing assistance agreements.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

American Recovery and Reinvestment Act of 2009, Public Law 111-5; Safe Drinking Water Act (SDWA) Amendments of 1996, Section 130, Public Law 104-182; Water Infrastructure Improvements for the Nation Act of 2016,, Public Law 114-322.

Range of Approval/Disapproval Time

Applications should be submitted to the appropriate Regional Office no later than June 30 of the year following the year of appropriation to allow sufficient time for review and processing prior to the September 30 reallotment deadline. 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

For those portions of the applicant's 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

Statutory Formula: Title Safe Drinking Water Act. 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. Matching Requirements: 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. For additional information go to https://www.epa.gov/drinkingwatersrf/annual-allotment-federal-funds-states-tribes-and-territories. This program does not have MOE requirements.

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. See the following for information on how assistance is awarded/released: The method of fund disbursement will be determined at the time of award.

Post Assistance Requirements

Reports

States shall provide biennial reports 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 second fiscal year during which the payments were received).

The biennial report shall describe how the State has met the goals and objectives for the preceding two fiscal years as identified in its intended use plans for those periods, including identification of loan recipients, loan amounts, and loan terms and similar details on other forms of financial assistance provided from the DWSRF.

For grants to Tribes and U.S.

Territories, procedures for accounting, auditing, evaluating, and reviewing any program for activities in whole or in part shall be governed by regulations at 2 CFR 200 and 1500 as applicable, and 40 CFR Parts 32 and 35, 'Environmental Program Grants for Tribes,' with reports as required by the specific terms of the agreement.

For Recovery Act funds, funding reports must be submitted in a prescribed format within 10 calendar days after the end of each calendar quarter, beginning October 10, 2009.

These reports will include data elements as prescribed by Public Law 111-5, Section 1512 and OMB Guidance.

Program reports are required under this program.

Cash reports are required under this program.

Progress reports are required under this program.

Expenditure reports are required under this program.

Performance monitoring is required under this program.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. 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. States must 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. The audit of the fund to be prepared by the State or an independent auditor must be in accordance with the standards of the Government Accountability Office (known as the Generally Accepted Government Auditing Standards). To the extent that the set-asides are used for project purposes that must be repaid, or are directly related to the DWSRF (e.g., administration) or are revolving funds themselves, they must be part of an audited opinion(s). The audits must provide an auditor's opinion on the DWSRF financial statements, a report on internal controls and a report on compliance with laws and regulations. Those set-aside funds that are not loaned out may be audited in conjunction with audits conducted under the Single Audit Act, as described in OMB Circular No. A-133 and OMB's Compliance Supplement for Single Audits of State and Local Governments.

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.

Financial Information

Account Identification

68-0103-0-1-304; 68-0102-0-1-304.

Obigations

(Formula Grants) FY 16 $833,218,900; FY 17 est $844,255,000; and FY 18 est $863,233,000 - FY 16 $833,218,900; FY 17 est. $844,255,000; and FY 18 est. $ 863,233,000. Recovery Act funds - FY 16 $0; FY 17 est. $0; and FY 18 est. $0.

Range and Average of Financial Assistance

States: $8,787,000 to $82,674,000/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/safewater/dwsrf.html.

Information Contacts

Regional or Local Office

See Regional Agency Offices. See EPA Regional Offices listed in the Catalog, or online.

Headquarters Office

Nick Chamberlain Nick Chamberlain, Infrastructure Branch (4606M), Drinking Water Protection Division, Office of Groundwater and Drinking Water, U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue, NW, Washington, DC 20460. Phone: (202) 564-1871. E-mail: chamberlain.nick@epa.gov. , Washington, District of Columbia 20460 Email: chamberlain.nick@epa.gov Phone: 202-564-1871

Criteria for Selecting Proposals

The evaluation and selection criteria for competitive awards under this CFDA description will be described in the competitive announcement.



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