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EPA Provides Guidance on State Revolving Fund Programs

Date: March 18, 2022

Earlier this month, the U.S. Environmental Protection Agency (EPA) released its Implementation Guidance Memo for the Clean Water and Drinking Water State Revolving Fund (SRF) Programs. The guidance outlines how EPA will implement the changes made to the SRF programs by the Infrastructure Investment and Jobs Act of 2021 (IIJA). WateReuse remains engaged with EPA on the rollout of SRF funds.

The implementation memo outlines a strategy for collaborative implementation with state, local, and Tribal partners of the $43 billion in water infrastructure funding directed through the infrastructure law. It outlines the Administration’s priorities, including encouraging flexibility in the programs, better supporting disadvantaged communities, and supporting resilience and one water innovation.

The memo details the following:  

  • Outlines how state SRF administrators can increase investments in disadvantaged communities over the five years of IIJA implementation (pg. 4, 14-15, 26, 40-43).
  • Encourages states to utilize SRF funding for projects that make water systems more resilient and suggests a climate resilience criterion for states to use when prioritizing projects (pg. 5-6).
  • Details how states should apply additional loan forgiveness and grant funds made available through the DWSRF and CWSRF, both through the general programs and through additional funding provided for the mitigation of contaminants of emerging concern (pg. 3-4).
  • Clarifies states’ ability to combine Intended Use Plans (IUPs) and Project Priority Lists (PPLs) for both the IIJA and base funding or submit separate IUPs and PPLs for both base and IIJA funding.

The IIJA provides billions of dollars in new funding for the SRF programs, including funding that can be used for water recycling projects. To learn more, check out EPA’s dashboard.

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