News Releases from Region 09

U.S. EPA Announces Availability of $291.7 Million in New Funding to Improve Water Infrastructure in the Pacific Southwest and Pacific Islands

A total of $2.6 billion available across the United States

SAN FRANCISCO — The U.S. Environmental Protection Agency (EPA) announced the availability of nearly $2.6 billion in new funds to assist states, tribes and territories with improving drinking water and wastewater infrastructure across the country. Arizona, California, Nevada, and the Pacific Island Territories are eligible to receive a total of $291.7 million. This funding advances President Trump’s efforts to rebuild the country’s aging water infrastructure, create local jobs, and ensure all Americans have safe and clean water.

“EPA is delivering on President Trump’s commitment to modernize our nation’s water infrastructure and improve public health and environmental protections,” said EPA Administrator Andrew Wheeler. “EPA’s $2.6 billion contribution to the State Revolving Funds will enable more communities to make the investments needed to ensure Americans have safe water for drinking and recreation. These funds can also be combined with EPA’s WIFIA loans to create a powerful, innovative financing solution for major infrastructure projects nationwide.”

“EPA is investing in drinking water and wastewater infrastructure in our communities,” said EPA Pacific Southwest Regional Administrator Mike Stoker. “With our state and local partners, we’ll continue to improve the safety and reliability of our water resources for all.”

Arizona will receive a $19.8 million capitalization grant to provide low-interest rate financing for drinking water infrastructure. Between $5 million and $11 million of the grant can be used at the state’s discretion for further reduced-rate financing such as zero-interest loans or principal-forgiveness loans. Arizona will also receive $10.7 million of clean water funding for sewage treatment and stormwater infrastructure projects.

California will receive a $97.1 million capitalization grant to provide low-interest rate financing for drinking water infrastructure. Between $25 million and $53 million of the grant can be used at the state’s discretion for further reduced-rate financing such as zero-interest loans or principal-forgiveness loans. California will also receive $113.6 million of clean water funding for sewage treatment and stormwater infrastructure projects.

Nevada will receive a $12.8 million capitalization grant to provide low-interest rate financing for drinking water infrastructure. Between $3 million and $7 million of the grant can be used at the state’s discretion for further reduced-rate financing such as zero-interest loans or principal-forgiveness loans. Nevada will also receive $7.8 million of clean water funding for sewage treatment and stormwater infrastructure projects.

The Pacific Island Territories of American Samoa, Guam and the Northern Marianas Islands will receive almost $30 million to be used as grants from the State Revolving Funds for water infrastructure projects. These funds include $11.2 million to improve drinking water systems and $18.7 million for a wide range of water infrastructure projects, including modernizing aging wastewater infrastructure, implementing water reuse and recycling, and addressing stormwater.

The State Revolving Funds (SRFs) require state match, loan repayments, and interest that flows back to the funds. With more than 30 years of federal capitalization grants and state contributions, approximately $80 billion has been invested into these programs. According to the agency’s estimate of national drinking water and wastewater needs, over $743 billion is needed for water infrastructure improvements. Through loan repayments and investment earnings, the SRFs have leveraged these contributions to provide more than $170 billion in financial assistance to over 39,900 water quality infrastructure projects and 14,500 drinking water projects across the country.

This year, EPA is making available more than $1 billion in new federal grant funding for the Drinking Water State Revolving Fund (DWSRF). This funding can be used for loans that help drinking water systems install controls to treat contaminants such as PFAS and improve distribution systems by removing lead service lines. In addition, more than $50 million in DWSRF grant funding is available to tribes, U.S. territories, and the District of Columbia to use for drinking water system upgrades.

EPA is also providing approximately $1.6 billion in new federal grant funding for the Clean Water State Revolving Fund (CWSRF). This funding is available for a wide range of water infrastructure projects, including modernizing aging wastewater infrastructure, implementing water reuse and recycling, and addressing stormwater. More than $64 million in CWSRF grant funding is available to tribes, certain U.S. territories, and the District of Columbia for infrastructure projects.

Background:

Under the Clean Water and Drinking Water State Revolving Fund programs, EPA provides funding to all 50 states and Puerto Rico to capitalize SRF loan programs. The states and Puerto Rico contribute an additional 20% to match the federal grants. The 51 SRF programs function like infrastructure banks by providing low-interest loans to eligible recipients for drinking water and clean water infrastructure projects. As the loan principal and interest are repaid over time, it allows the state’s DWSRF or CWSRF to be recycled or “revolve.” As money is returned to the state’s revolving loan fund, the state makes new loans to other eligible recipients.

In 2018, the SRFs committed $9.6 billion in drinking water and clean water infrastructure loans and refinancing and disbursed $8.8 billion for drinking water and clean water infrastructure.

For more information, visit https://www.epa.gov/drinkingwatersrf and https://www.epa.gov/cwsrf.

Learn more about EPA’s Pacific Southwest Region. Connect with us on Facebook and on Twitter.

# # #