U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2020 Appropriations

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2020 Appropriations

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April 2, 2020
U.S. Environmental Protection Agency (EPA) Water
Infrastructure Programs and FY2020 Appropriations
The condition of the nation’s drinking water and
In both SRF programs, EPA makes grants to states to
wastewater infrastructure and associated financing
capitalize a state revolving loan fund. Each state must
challenges are perennial subjects of debate and attention in
match 20% of its annual capitalization grant. States are
Congress. Among others, challenges include the ability of
authorized to use the DWSRF or the CWSRF to provide
communities—especially low-income communities—to
primarily subsidized loans to eligible public water systems
finance projects needed to (1) repair or replace water
or publicly owned treatment works (and other eligible
infrastructure, much of which has was constructed more
recipients), respectively. CWSRF financial assistance is
than 50 years ago; (2) comply with new or revised federal
available generally for projects needed for constructing or
regulatory requirements; and (3) address damage from
upgrading (and planning and designing) publicly owned
natural hazards and improve resiliency to extreme weather
treatment works, among other purposes defined in Title 33,
events.
Section1383(c), of the United States Code. DWSRF
financial assistance is available for statutorily specified
EPA Water Infrastructure Programs
expenditures and those that EPA has determined, through
FY2020 Appropriations
guidance, will facilitate SDWA compliance or significantly
The Further Consolidated Appropriations Act, 2020 (P.L.
further the act’s health protection objectives.
116-94), Division D, Title II, included appropriations for
multiple water infrastructure programs administered by the
Table 1. U.S. EPA Water Infrastructure: Enacted
U.S. Environmental Protection Agency (EPA), particularly
Appropriations for FY2019 and FY2020
the Clean Water State Revolving Fund (CWSRF) and
(dol ars in mil ions, not adjusted for inflation)
Drinking Water State Revolving Fund (DWSRF) programs.
P.L. 116-94 also included appropriations for the Water
Program
FY2019
FY2020
Infrastructure Finance and Innovation Act (WIFIA) loan
program, two regional infrastructure grant programs, four
State and Tribal Assistance Grants (STAG) Account
drinking water infrastructure grant programs, and one
CWSRF
$1,694.0
$1,638.8
wastewater infrastructure grant program. Appropriations for
the CWSRF, DWSRF, and other infrastructure grant
DWSRF
$1,164.0
$1,126.1
programs are provided within the State and Tribal
Grants for U.S.-Mexico Border Projects
$15.0
$25.0
Assistance Grants (STAG) account. WIFIA is funded
through a separate account.
Grants for Rural and Alaska Native Vil ages
$25.0
$29.2
Grants for Small and Disadvantaged
$25.0
$25.4
As presented in Table 1, Congress appropriated a total of
Communities
$2.81 billion for FY2020 for these water infrastructure
programs, or about 1.6% less than the total FY2019 enacted Grants for Testing School Water for Lead
$25.0
$26.0
level of $3.03 billion, prior to rescissions (P.L. 116-6, Titles Grants for Reducing Lead in Drinking Water
$15.0
$19.5
II and IV). Also for FY2019, Congress provided $349.4
million in supplemental appropriations for the state
Grants for Drinking Water System
None
$3.0
revolving funds (SRFs) in P.L. 116-20. These funds were
Resilience and Sustainability
provided to areas affected by specified natural disasters. For Grant for Sewer Overflow and Stormwater
None
$28.0
FY2020, P.L. 116-113, Title IX, included a supplemental
appropriation of $300 million for wastewater projects at the
Water Infrastructure Finance and Innovation Act (WIFIA) Account
U.S.-Mexico border.
WIFIA
$68.0
$60.0
State Revolving Fund Programs
Total
$3,031.0
$2,981.0
The Clean Water Act (CWA) and the Safe Drinking Water
Act (SDWA) authorize two complementary SRF programs
Source: CRS using data from P.L. 116-6 (Division E, Titles II and IV)
to help publicly owned treatment works and public water
and P.L. 116-94 (Division D, Title II). This table does not include (1)
systems finance improvements needed for compliance and
supplemental appropriations acts described in the accompanying text,
other statutory purposes. The CWSRF provides financial
as these only provided additional funding for specific locations or
assistance for infrastructure projects to publicly owned
narrower types of projects; or (2) grants for technical assistance for
treatment works and other eligible recipients (33 U.S.C.
smal , rural water systems and treatment works, as described below.
§§1381-1387). The DWSRF provides assistance to public
water systems, which may be publicly or privately owned
While the SRFs generally provide subsidized loans, states
(42 U.S.C. §300j-12).
may use the DWSRF and the CWSRF (under certain
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U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2020 Appropriations
conditions) to provide “additional subsidization”—such as
to EPA for grants. P.L. 116-94 provided $26.0 million for
principal forgiveness and/or negative interest loans—to
these grants for FY2020.
municipalities that meet the state’s affordability criteria. For
the CWSRF, the additional subsidization is also available
Grants for Reducing Lead in Drinking Water
for specified projects, such as those that implement water or
The WIIN Act further amended SDWA by adding Section
energy efficiency goals or mitigate stormwater runoff.
1459B (42 U.S.C. §300j-19b), which directs EPA to
establish a grant program for projects and activities that
Although the SRFs have generally been popular, states,
reduce lead in drinking water, including replacement of
local communities, and others have raised concerns
lead service lines and corrosion control. Grants may be used
regarding increasing funding needs (e.g., replacement of
to provide assistance to low-income homeowners to replace
lead pipes) and affordability of infrastructure projects for
their portions of lead service lines. Eligible recipients
many communities. In its most recent compilation surveys,
include community water systems, tribal systems, schools,
EPA estimated that the capital cost of wastewater and
states, and municipalities. P.L. 116-94 provided $19.0
drinking water infrastructure needed to meet CWA and
million for FY2020.
SDWA objectives exceeds $744 billion for a 20-year
period. This amount does not include costs to extend
Grants for Drinking Water System Resilience
services to accommodate population growth or to repair
America’s Water Infrastructure Act of 2018 (AWIA; P.L.
infrastructure not linked to compliance and related health
115-270) amended SDWA Section 1459A (42 U.S.C.
and environmental goals.
§300j-19a), to authorize EPA to establish the Drinking
Water System Infrastructure Resilience and Sustainability
Water Infrastructure Finance and Innovation Act
Program, a grant program for small and disadvantaged
To promote development of water infrastructure projects,
public water systems. EPA is authorized to provide grants
the 113th Congress authorized the WIFIA program in the
to eligible public water systems for projects that increase
Water Resources Reform and Development Act of 2014
resilience to natural hazards, including hydrologic changes.
(P.L. 113-121, Title V; 33 U.S.C. §§3901-3914). Initially
Eligible projects include those that increase water use
established as a five-year pilot program, WIFIA authorizes
efficiency, enhance water supply through watershed
EPA and the U.S. Army Corps of Engineers (USACE) to
management or desalination, and increase energy efficiency
provide credit assistance—secured or direct loans—for a
in the conveyance or treatment of drinking water. P.L. 116-
range of water infrastructure projects. (The USACE-
94 provided $3.0 million for FY2020. FY2020 is the first
administered WIFIA program has not advanced into
fiscal year Congress appropriated funding for this program.
implementation.) In contrast to SRF programs, under
WIFIA, EPA provides credit assistance directly to an
Sewer Overflow and Stormwater Grant Program
eligible recipient. To be eligible for WIFIA assistance,
In 2000, the Consolidated Appropriations Act, 2001 (P.L.
projects must generally have costs of $20 million or more.
106-554), amended the CWA by adding Section 221, which
authorized EPA to establish a grant program to address
Annual WIFIA appropriations primarily cover long-term
overflows from municipal combined sewer systems and
credit subsidy costs, which are calculated to cover the risk
from municipal separate sanitary sewers (“wet weather”
that the loan will not be repaid. As such, relative to its
projects). The act authorized annual appropriations of
budget authority (e.g., $55 million in FY2020 to cover
$750.0 million for each of FY2002 and FY2003. In 2018,
subsidy costs), WIFIA appropriations may provide a large
AWIA made several amendments to Section 221, including
amount of credit assistance. For FY2020, Congress capped
modifying the program to include stormwater infrastructure
the WIFIA credit assistance authority at $11.5 billion.
and authorizing appropriations of $225.0 million for each of
FY2019 and FY2020. P.L. 116-94 provided $28 million for
Grants for Small and Disadvantaged Communities
FY2020. FY2020 is the first fiscal year Congress
In 2016, the Water Infrastructure Improvement for the
appropriated funding for this program.
Nation Act (WIIN Act; P.L. 114-322) amended SDWA by
adding Section 1459A (42 U.S.C. §300j-19a), which directs
Technical Assistance for Water Systems
EPA to establish a grant program to assist disadvantaged
The CWA and SDWA authorize EPA to make grants to
communities and small communities that are unable to
qualified nonprofits to provide technical assistance to small
finance projects needed to comply with SDWA. Eligible
wastewater and water systems (33 U.S.C. §1254(b)(8); 42
projects include investments needed for SDWA
U.S.C. §300j-1(e)). AWIA amended the CWA in 2018 to
compliance, household water quality testing, and assistance
add this grant program. While construction is not an eligible
that primarily benefits a community on a per-household
activity, the grants may be used to help systems with
basis. EPA may make grants to public water systems, tribal
compliance and to apply to the SRFs. P.L. 116-94 provided
water systems, or states on behalf of an underserved
$12 million for the CWA technical assistance program in
community. P.L. 116-94 provided $25.4 million for 2020.
the STAG account and $15 million for the SDWA program
in the Environmental Programs and Management account.
Grants for Testing School Water for Lead
In the WIIN Act, Congress amended SDWA Section
Elena H. Humphreys, Analyst in Environmental Policy
1464(d) (42 U.S.C. §300j-24) to require EPA to establish a
Jonathan L. Ramseur, Specialist in Environmental Policy
voluntary program for testing for lead in drinking water at
schools and child care programs under the jurisdiction of
IF11485
local education agencies (LEAs). States or LEAs may apply
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U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2020 Appropriations

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