The Infrastructure Investment and Jobs Act of 2021 (IIJA) provides for significant federal investments in transportation, broadband, water, and other types of infrastructure. Specifically, the IIJA delivers more than $50 billion to the Environmental Protection Agency (EPA) for water infrastructure investments to improve our nation’s drinking water, wastewater, and stormwater infrastructure - the single largest investment in water that the federal government has ever made. In many programs, the increased funding will flow to states, tribes, and communities over five years, beginning in 2022. 

For information and guidelines on how EPA will award and administer SRF Capitalization Grants appropriated to the State and Tribal Assistance Grants account in the IIJA: Implementation of the Clean Water and Drinking Water State Revolving Fund Provisions of the Bipartisan Infrastructure EPA guidance memo.

In addition to projects adhering to American Iron & Steel and Davis-Bacon Act, projects funded under IIJA funding are required to conform with the Build America, Buy America (BABA) Act and EPA signage. BABA requires all iron, steel, manufactured products, and construction materials used in the project are produced in the United States.

CWSRF and DWSRF General Supplemental

The IIJA General Supplemental funding is in addition to the annual Base Capitalization Grant allocated by EPA to the participating states.

Projects selected to receive IIJA General Supplemental funding must meet all laws and rules of the existing SRF programs, which are low-interest loan programs with opportunities for eligible borrowers, who meet the rule criteria, to have a portion of the loan’s principal to be forgiven or paid off by a companion grant. 

CWSRF Emerging Contaminants

This additional fund is specifically for the abatement of emerging contaminants in wastewater, stormwater or surface water.

  • Eligible projects must be otherwise CWSRF eligible with the primary purpose of addressing emerging contaminants either at a wastewater treatment plant, reuse system, stormwater or control of nonpoint source pollution.
  • Emerging contaminants include but are not limited to PFAS and other persistent organic pollutants; biological contaminants and microorganisms; some compounds of pharmaceuticals and personal care products; nanomaterials and microplastics; and harmful algal blooms in surface waters.
  • Examples of eligible projects: www.epa.gov/system/files/documents/2024-04/cwsrf-ec-ta-fact-sheet.pdf

DWSRF Emerging Contaminants

This additional fund is specifically for addressing emerging contaminants in drinking water.

  • Eligible projects must be otherwise DWSRF eligible with the primary purpose of addressing emerging contaminants in drinking water, including those listed in Contaminant Candidate Lists 1 through Draft 5.
  • Examples of eligible projects include but are not limited to upgrading treatment for known level of PFAS; developing a new water source free from EC; consolidation and blending to address known PFAS levels; construction of a new community water system to take contaminated private wells offline; and the planning and design of a project to address an emerging contaminant or contaminants.
  • The IIJA emerging contaminants funding requires at least 25% of the funding be used for financially disadvantaged small communities. If dollars are available after funding all eligible financially disadvantaged small communities, financially disadvantaged communities with a service area population of 10,000 persons or greater may be eligible.

DWSRF Lead Service Line Inventory and Replacement Funding

This additional fund is specifically for the replacement of lead service lines. 

  • Lead Service Line (LSL) inventory work is eligible as a planning loan project.
  • Design and bidding for Lead Service Line replacement projects is an eligible project as a design loan project.
  • With exemption to 62-554.300(4)(j) F.A.C., projects funded under this supplemental funding must replace entire lead service line (EPA definition and figure depicting service line), not just a portion, unless a portion has already been replaced.
  • Galvanized pipe and goosenecks are only eligible if they are or have previously been downstream of known lead service lines.
  • Internal (aka premise) plumbing and apparatuses are NOT currently eligible for this supplemental funding as it is not DWSRF eligible. This includes plumbing and water coolers in schools and day cares, as well as plumbing inside homes and multifamily residential buildings.
  • 49% of the funding will be given in the form of Principal Forgiveness to disadvantaged communities. 
  • This funding will be provided at zero percent financing rate with a ten-year, semi-annual repayment period.
  • For more information on all types of Federal funding for LSL replacement go to EPA's website at www.epa.gov/ground-water-and-drinking-water/funding-lead-service-line-replacement. 
  • Example Lead Service Line Project Request for Inclusion (RFI) Submittal
Last Modified: Wednesday, Mar 12, 2025 - 04:10pm