Water Infrastructure Funding from the Bipartisan Infrastructure Law

Also referred to as the Infra­struc­ture Investment and Jobs Act (IIJA), the Bipartisan Infra­struc­ture Law (BIL) became effective November 2021. This $1.2 trillion investment will fund trans­porta­tion, water and other infra­struc­ture projects from 2022 through 2026. Of these funds, more than $55 billion are dedicated to improving drinking water, wastewater, and stormwater infra­struc­ture.

 “Since [2009], this is the largest amount of federal funding we have available for water and wastewater projects... The good news is it’s even a better deal than what we’ve seen previously because so much of it is being dedicated to principal forgiveness or grant money.” said Stacy Barna, CDM Smith client service leader.

A substantial portion of these funds will flow through the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF). The funds will be used to supplement these existing SRF programs as well as support lead service line replacements and projects on emerging contaminants such as PFAS. These SRF programs are administered by the state independently, each having their own requirements. The Water Infrastructure Improvements through the Nation (WIINS) will also receive $5B for projects addressing emerging contaminants. This is a significant opportunity for water projects to obtain funding to tackle some of the biggest challenges facing our communities across the nation.

EPA distributed guidance on how the funding will be implemented on March 8, 2022. Eligible candidates must submit a pre-application for SRF funds provided through BIL. The projects will be ranked on the state’s Project Priority List where the list will be used to develop an Intended Use Plan for the EPA. After approval, projects will be invited to apply and receive funds.

SRF Supple­men­tals

Both the CWSRF and DWSRF will receive $11.7B distributed over 5 years. The $11.7B will be dedicated to funding projects that would typically be awarded through SRF programs. Under the Bipartisan Infra­struc­ture Law, 49% of the funding is required to be distributed as principal forgiveness or grant funds. To receive principal forgiveness or grant eligibility, the local government must meet the state’s afford­abil­ity criteria. If the local government does not meet the state’s afford­abil­ity criteria, it can still be eligible if they can prove the project funded will benefit an area that is underserved or serves disad­van­taged communities, based on each state’s individual criteria. Projects that implement a process, material, technique, or technology addressing water or energy goals, mitigate stormwater runoff or encourage sustain­abil­ity may also be eligible for principal forgiveness and grants.

Lead Service Line Replace­ments

The DWSRF will receive $15B over 5 years for lead service line replace­ments (LSLR) or associated projects connected to the iden­ti­fi­ca­tion, planning, design, or replacement of lead service lines. Like the supple­men­tal program, 49% of funding must be distributed as principal forgiveness or grants. To be eligible for this funding, the entire lead service line must be replaced.

Emerging Cont­a­m­i­nants

Entirely comprised of principal forgiveness or grants, $4B is allocated for emerging cont­a­m­i­nants under DWSRF over the next five years. Eligible projects include those that address emerging cont­a­m­i­nants included in any of the EPA’s Contaminant Candidate List, with a primary focus on PFAS. Projects eligible include those involved in the planning or design of treatment pilot studies, construc­tion of new or upgrading treatment facilities, developing a new water source, consol­i­dat­ing water systems, or new community water systems that will take cont­a­m­i­nated private wells offline.

The CWSRF will receive $1B over 5 years for projects addressing substances and microor­gan­isms that are known or anticipated to pose newly identified or re-emerging risks to human health, aquatic life or the environment. Just like DWSRF, 100% of funds are available as principal forgiveness and grants. The funding includes projects relating to PFAS and other persistent organic pollutants, biological cont­a­m­i­nants, microor­gan­isms, certain compounds of phar­ma­ceu­ti­cal and personal care products, and nano­ma­te­ri­als.

Help is available for appli­ca­tions, coor­di­na­tion, and reporting that is involved in obtaining these funds. CDM Smith has experience with state and federal funding programs including ARPA, SRF, WIFIA, FEMA, USDA, HUD, USBR, ARCOE, and more. Clients have received and managed over $5.5B in loans and grants because of our assistance.

For more on the Bipartisan Infra­struc­ture Law, check out the This is Water’s Moment webinar, where Stacy Barna and Michael Sloop discuss the different funds allotted by the program as well as the various require­ments that may impact program funding.