Overview of U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2018 Appropriations

Overview of U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2018 Appropriations

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May 9, 2018
Overview of U.S. Environmental Protection Agency (EPA)
Water Infrastructure Programs and FY2018 Appropriations
Financing and investing in the nation’s drinking water and
Budgetary constraints, competing priorities, debate over the
wastewater treatment systems has been an issue of
federal role, and other issues have posed challenges to
increasing concern among stakeholders and many Members
increased federal support in recent years.
of Congress. Increased attention can be attributed to a
combination of factors, including (1) the need to repair and
Table 1. EPA Water Infrastructure Enacted
replace aging water infrastructure, (2) the financial impacts
Appropriations in FY2018 in P.L. 115-141, Division G
on communities of meeting federal regulatory requirements
(dollars in millions)
and the associated public health and environmental impacts
Water
Title II:
Title IV:
Total
of not doing so, and (3) concerns regarding the costs of
Infrastructure
STAG
General
projects needed to improve resiliency to drought and
Programs
Account
Provisions
extreme weather events, among other challenges.
EPA Water Infrastructure Programs
CWSRF
$1,393.9
$300.0
$1,693.9
FY2018 Appropriations
DWSRF
$863.2
$300.0
$1,163.2
Division G in the Consolidated Appropriations Act, 2018
WIFIA
$10.0
$53.0
$63.0
(P.L. 115-141), included appropriations for multiple water
infrastructure programs administered by the U.S.
U.S.-Mexico Border
Environmental Protection Agency (EPA), particularly the
$10.0

$10.0
Project Grants
Clean Water State Revolving Fund (CWSRF) and Drinking
Water State Revolving Fund (DWSRF) programs. P.L. 115-
Rural and Alaska
141 also included funding for the Water Infrastructure
Native Villages Project
$20.0

$20.0
Finance and Innovation Act (WIFIA) loan program, two
Grants
regional grant programs, and three new drinking water
Grants for Small and
grant programs. Total appropriations for the SRFs and other
Disadvantaged

$20.0
$20.0
infrastructure programs provided within the State and
Communities
Tribal Assistance Grants (STAG) appropriations account in
Title II and within the general provisions in Title IV (§430)
Lead Reduction Grants

$10.0
$10.0
were approximately $3.0 billion, as presented in Table 1.
Grants for Testing

$20.0
$20.0
School Water for Lead
Compared to FY2017, funding for EPA water infrastructure
programs increased by 24% in FY2018 (from $2.42 billion
Total
$2,297.1
$703.0
$3,000.1
to $3.0 billion).
Source: The Consolidated Appropriations Act, 2018 (P.L. 115-141,
Title II and Title IV).
The following sections discuss the EPA infrastructure
programs and their funding. The final section includes
The CWSRF and DWSRF programs received an increase in
related information about the U.S. Department of
appropriations for FY2018 compared to FY2017.
Agriculture (USDA) rural water infrastructure programs.
 EPA’s STAG account (Division G, Title II of P.L. 115-
State Revolving Funds Programs
141) included $863.2 million for the DWSRF program
The CWSRF program, authorized in the Clean Water Act,
and $1.394 billion for the CWSRF (the same amounts
and the DWSRF program under the Safe Drinking Water
appropriated for FY2017, less $100 million for the
Act (SDWA) are the principal federal programs to aid
DWSRF provided to assist Flint, MI).
municipal wastewater and drinking water infrastructure
construction. Although these programs have been popular,
 Division G, Title IV (General Provisions), Section 430,
states, local communities, and others have raised concerns
included an additional $600 million ($300.0 million
regarding growing funding needs (e.g., replacement of lead
each) within the STAG account for both SRF programs.
pipes) and affordability of infrastructure projects for many
communities. In its 2018 drinking water infrastructure
Regional STAG Account Infrastructure Programs
needs survey, EPA estimated that an investment of $472.6
Congress regularly funds several targeted infrastructure
billion is needed to maintain and improve the nation’s
programs and did so again for FY2018. Title II in Division
drinking water infrastructure over the next 20 years. In
G of P.L. 115-141 included $10 million and $20 million,
2016, EPA estimated a 20-year investment need of $271
respectively, for grants for drinking water and wastewater
billion for projects eligible for funding under the CWSRF.
projects along the U.S.-Mexico border and for rural and
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Overview of U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2018 Appropriations
Alaska Native villages. Congress has funded these
2. $10.0 million for Lead Reduction Project Grants. New
programs at these levels for the past three fiscal years.
SDWA Section 1459B directs EPA to establish a grant
program for projects and activities that reduce lead in
Water Infrastructure Finance and Innovation Act
drinking water, including replacement of lead service
(WIFIA)
lines and corrosion control. Grants may be used to
Authorized in the Water Resources Reform and
provide assistance to low-income homeowners to
Development Act of 2014 (P.L. 113-121), the WIFIA
replace their portions of lead service lines. Eligible
program provides credit assistance (e.g., direct loans) for an
recipients include community water systems, tribal
array of water infrastructure projects, including CWSRF-
systems, schools, states, and municipalities.
and DWSRF-eligible projects. Congress authorized both
EPA and the U.S. Army Corps of Engineers to administer
3. $20 million for grants for Lead in School Drinking
WIFIA programs for different categories of drinking water,
Water. In the WIIN Act, Congress rewrote SDWA
water quality, and water resources projects.
Section 1464(d) to require EPA to establish a voluntary
program for testing for lead in drinking water at schools
For FY2017, Congress appropriated $30 million to EPA for
and child care programs under the jurisdiction of local
the WIFIA program ($20 million in P.L. 114-254 and $10
education agencies (LEAs). States or LEAs may apply
million in P.L. 115-31). The combined FY2017 funding
to EPA for grants.
provided $25 million for subsidy costs, allowing EPA to
invite 12 entities nationwide to apply for loans totaling $2.3
USDA Rural Water Infrastructure Funding
billion that support a variety of water infrastructure
USDA provides significant funding to rural communities
projects. (Congress has not yet appropriated funds to the
for drinking water, sewer, and storm drainage infrastructure
Corps for establishing a parallel program.)
projects through its Water and Waste Disposal loan and
grant program. The program serves communities with
The Consolidated Appropriations Act, 2018, provided a
populations of 10,000 or fewer. (For more information, see
total of $63 million for the WIFIA program (including $8
CRS Report RL30478, Federally Supported Water Supply
million for administrative costs). As the table indicates, P.L.
and Wastewater Treatment Programs, coordinated by
115-141 Division G, Title II, included $10 million, and
Jonathan L. Ramseur.) This program also received
Title IV, Section 430, included an additional $53 million
increased funding for FY2018, as noted below.
for WIFIA. EPA estimates that the total funding will
provide approximately $5.5 billion in credit assistance. For
 P.L. 115-141 Division A, Title III, included
further information regarding the WIFIA program and
appropriations for the USDA Water and Waste Disposal
pending legislation, see CRS Report R43315, Water
program, providing $560.3 million ($11.0 million less
Infrastructure Financing: The Water Infrastructure
than FY2017) for the cost of direct loans, loan
Finance and Innovation Act (WIFIA) Program.
guarantees, and grants. This title provided USDA’s
water programs with loan authority of $1.25 billion.
WIIN: Safe Drinking Water Act Grant Programs
In December 2016, Congress amended the SDWA through
 Division A, Title VII (Section 780), provided an
the Water Infrastructure Improvements for the Nation
additional $500 million for the program, of which $495
(WIIN) Act (P.L. 114-322, Title II, the Water and Waste
million is available for grants.
Act of 2016). Among other amendments, the WIIN Act
authorized three new grant programs to (1) help public
Water Infrastructure Legislation
water systems serving small or disadvantaged communities
In addition to funding drinking water and wastewater
meet SDWA requirements; (2) support lead reduction
infrastructure programs through appropriations acts, the
projects, including lead service line replacement; and (3)
115th Congress is considering water infrastructure
establish a voluntary program for testing for lead in
legislation. The Securing Required Funding for Water
drinking water at schools and child care programs. P.L.
Infrastructure Now Act (H.R. 4902 and S. 2364) and the
115-141, Division G, Title IV, Section 430, provided the
Water Infrastructure Finance and Innovation
first appropriations for each of these programs, as noted
Reauthorization Act of 2017 (H.R. 4492 and S. 2329)
below. The FY2018 budget request did not include funding
would amend WIFIA. Others would, among other purposes,
for these programs.
revise and reauthorize the DWSRF program (e.g., H.R.
3387, H.R. 1068, and H.R. 1653) and/or the CWSRF and
1. $20.0 million for Grant Assistance for Small and
related programs (e.g., H.R. 2510, H.R. 1673, H.R. 5609,
Disadvantaged Communities. New SDWA Section
and S. 1137). Others propose new funding programs, such
1459A directs EPA to establish a grant program to assist
as H.R. 1647, the Water Infrastructure Trust Fund Act of
disadvantaged communities and also small communities
2017. (For more information, see CRS Report RS22037,
that are unable to finance projects needed to comply
Drinking Water State Revolving Fund (DWSRF): Program
with SDWA. Eligible projects include investments
Overview and Issues, by Mary Tiemann.)
needed for SDWA compliance, household water quality
testing, and assistance that primarily benefits a
Mary Tiemann, Specialist in Environmental Policy
community on a per-household basis. EPA may make
Jonathan L. Ramseur, Specialist in Environmental Policy
grants to public water systems, tribal water systems, or
states on behalf of an underserved community.
IF10883
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Overview of U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2018 Appropriations

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