EPA State Revolving Funds and Grants Available to Water and Wastewater Utilities
On this page:
- Drinking Water State Revolving Funds
- Clean Water State Revolving Funds
- Water Infrastructure Finance and Innovation Act (WIFIA)
- Drinking Water System Infrastructure Resilience and Sustainability Program Grants
EPA allocates grant funding through two State Revolving Funds (SRFs). Administered by the states, the SRFs have the potential to support mitigation or post-disaster recovery and rebuilding projects.
Drinking Water State Revolving Funds
Description: The Drinking Water State Revolving Fund (DWSRF) provides below-market rate loans to fund infrastructure improvements to water systems to protect public health and ensure compliance with the Safe Drinking Water Act. These projects may include the installation, upgrade, and replacement of treatment facilities, finished water storage facilities, and transmission and distribution systems. Projects to consolidate water supplies may also be eligible. Dams and reservoirs are generally ineligible.
Many states offer funding for disaster preparedness and recovery. DWSRF assistance can be used to purchase and construct resiliency- and recovery-related infrastructure improvements such as backup generators, physical flood barriers, redundant equipment and infrastructure, telemetry systems for remote operation, cyber security and saltwater-resistant equipment. Existing facilities can be modified or relocated; examples include moving a treatment plant out of the floodplain or deepening existing wells. Equipment can be physically hardened against hazards by waterproofing electrical components, sealing structures to prevent floodwater penetration, and adding wind-resistant features.
Many states offer DWSRF technical assistance and trainings for water utilities to bolster resiliency. This assistance helps water systems plan for and adapt to extreme weather, prepare for emergencies and disasters, and join Water and Wastewater Agency Response Networks (WARNs).
Under the historic 2021 Bipartisan Infrastructure Law, or BIL, unprecedented amounts of DWSRF are available to states nationwide ($11.7 billion) to update and improve drinking water systems, including helping systems become more resilient to disasters. Nearly half of this funding is provided to underserved or disadvantaged communities as grants or principal forgiveness loans.
Your technical assistance providers may be able to help you take advantage of these additional funds within your state.
Eligibility: Project eligibility varies by state. Both publicly and privately-owned community water systems and non-profit, non-community water systems are eligible for funding.
Type and Cost Share: State DWSRF program assistance is typically in the form of low-interest loans, although grants may become available through BIL funding. These loans range from zero percent to market rate. Utilities repay these loans over a period of up to 30 years. Terms can be up to 40 years for systems designated by the state as “disadvantaged.” Some states offer additional subsidization, such as grants, principal forgiveness, and negative interest rate loans to these disadvantaged systems. Technical assistance and training activities for water systems is also available in most states.
Application: Application requirements vary by state. Water systems should contact your technical assistance providers or your state DWSRF program.
Website: See DWSRF
Clean Water State Revolving Funds
Description: The Clean Water State Revolving Fund (CWSRF) provides below-market rate loans for a wide range of water quality infrastructure projects, including publicly owned wastewater collection and treatment systems, stormwater management, nonpoint source pollution control, decentralized wastewater treatment, water reuse, and estuary management projects. Through the Green Project Reserve, the CWSRFs target critical green infrastructure, water and energy efficiency improvements, and other environmentally innovative activities.
Many states offer financing for disaster preparedness and recovery. CWSRF assistance can be used to purchase and construct resiliency- and recovery-related infrastructure improvements such as backup generators, physical flood barriers, redundant equipment and infrastructure, telemetry systems for remote operation, cyber security and saltwater-resistant equipment. Existing facilities can be modified or relocated, such as moving a treatment plant out of the floodplain. Equipment can be physically hardened against hazards by waterproofing electrical components, sealing structures to prevent floodwater penetration, and adding wind-resistant features.
Under the historic 2021 Bipartisan Infrastructure Law, or BIL, unprecedented amounts of CWSRF are available to states nationwide ($11.7 billion) to update and improve water and wastewater systems, including helping systems become more resilient to disasters. Nearly half of this funding is provided to underserved or disadvantaged communities as grants or principal forgiveness loans.
Your technical assistance providers may be able to help you take advantage of these additional funds within your state.
Eligibility: Project eligibility varies by state. Eligible loan recipients include, but are not limited to, municipalities, individuals, citizens' groups, and nonprofit organizations.
Type and Cost Share: CWSRF assistance is typically in the form of low-interest loans, although grants may become available through BIL funding. These loans range from zero percent to market rate over a period of up to 30 years. Some states offer additional subsidization, such as grants, principal forgiveness, and negative interest rate loans.
Application: Application requirements vary by state. For more information, contact your technical assistance providers or your state CWSRF program.
Website: See CWSRF.
Water Infrastructure Finance and Innovation Act (WIFIA)
Description: The WIFIA program accelerates investment in our nation’s water infrastructure by providing long-term, low-cost supplemental loans for regionally and nationally significant water and wastewater infrastructure projects. The WIFIA program can fund development and implementation activities for eligible projects:
- Wastewater conveyance and treatment projects that are eligible for the Clean Water SRF
- Drinking water treatment and distribution projects that are eligible for the Drinking Water SRF
- Enhanced energy efficiency projects at drinking water and wastewater facilities
- Brackish or seawater desalination, aquifer recharge, alternative water supply, and water recycling projects
- Drought prevention, reduction, or mitigation projects
- Acquisition of property if integral to a project or would mitigate environmental impact of a project
- Combination of projects secured by a common security pledge or submitted under one application by an SRF program
WIFIA works separately from, but in coordination with, the SRF programs to provide subsidized financing for large dollar-value projects.
Eligibility: Utilities operated by local, state, tribal, and federal government entities.
Type and Cost Share: The WIFIA program offers loans with low, fixed interest rates and flexible financial terms.
Application: The WIFIA application process is outlined here.
Website: See WIFIA.
Drinking Water System Infrastructure Resilience and Sustainability Program Grants
Description: With an influx of BIL funding, this new program will support eligible entities with projects in underserved and disadvantaged communities with populations of less than 10,000 individuals to increase drinking water system resilience to natural hazards. Eligible activities for funding include planning, design, construction, implementation, operation, or maintenance.
Each application must address one of the National Priority Areas:
- Small-Scale Investments to Help Drinking Water Systems Implement Resilience Measures (awards total $1.75 million)
- Large-Scale Infrastructure Improvements to Enhance Drinking Water System Resilience (awards total $9.98 million)
Eligibility: Funding awarded to public water systems, water systems in an area governed by an Indian tribe, or a state on behalf of an underserved community. An “underserved community” is defined as one that does not have access to household drinking water or wastewater services or is served by a public water system that violates or exceeds a requirement of a National Primary Drinking Water Regulation, including a maximum contaminant level, treatment technique, or action level.
Type and Cost Share: There will be a total of 11 to 22 assistance agreements, each with a project period of up to four years.
Application: Will soon be released.
Website: See Drinking Water System Infrastructure Resilience & Sustainability Grants (pdf)