U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2022 Appropriations

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2022 Appropriations

link to page 1

May 11, 2022
U.S. Environmental Protection Agency (EPA) Water
Infrastructure Programs and FY2022 Appropriations
Policymakers and stakeholders have raised concerns about
Drinking Water State Revolving Fund (DWSRF).
the condition of the nation’s local drinking water and
Appropriations for the CWSRF, DWSRF, and other grant
wastewater infrastructure, and the financial challenges that
programs are provided within the State and Tribal
communities may confront in maintaining, repairing, or
Assistance Grants (STAG) account. A separate account
replacing aging infrastructure. In 2016, the U.S.
funds a federal credit assistance program under Water
Environmental Protection Agency (EPA) estimated that
Infrastructure Finance and Innovation Act (WIFIA).
wastewater treatment facilities will need $271 billion over
the next 20 years to meet federal water quality objectives.
As presented in Table 1, P.L. 117-103 appropriates a total
In its 2018 survey, EPA estimated that public water systems
of $3.0 billion for FY2022 for these water infrastructure
need to invest $473 billion on infrastructure over 20 years
programs, 0.5% more than the total FY2021 enacted level
to ensure the provision of safe drinking water. These do not
prior to rescissions (P.L. 116-260). Further, Division J of
include costs to extend services to accommodate population
the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-
growth or to repair infrastructure not linked to compliance
58) includes emergency supplemental appropriations for the
or to related health and environmental goals.
CWSRF, DWSRF, and one drinking water grant program
for FY2022-FY2026. For example, IIJA provided
EPA Water Infrastructure Programs
additional appropriations for FY2022 of $1.96 billion for
FY2022 Appropriations
each of the SRF programs, as well as SRF appropriations
The Consolidated Appropriations Act, 2022 (P.L. 117-103),
dedicated for specific purposes. For more information, see
Division G, Title II, contains regular appropriations for
CRS Report R46892, Infrastructure Investment and Jobs
EPA for multiple water infrastructure programs, including
Act (IIJA): Drinking Water and Wastewater Infrastructure.
the Clean Water State Revolving Fund (CWSRF) and the
Table 1. EPA Water Infrastructure: Enacted Appropriations for FY2021 and FY2022
(dol ars in mil ions, not adjusted for inflation)
FY2021
FY2021
FY2022
FY2022
Program
(P.L. 116-113) (P.L. 116-260) (P.L. 117-58) (P.L. 117-103)
State and Tribal Assistance Grants (STAG) Account

CWSRF
—
$1,638.8
$1,902.0
$1,195.2
Grants for Emerging Contaminant Projects
—
—
$100.0
—
Community Project Funding/Congressionally Directed Spending (CPF/CDS)
—
—
—
$443.6
DWSRF
—
$1,126.1
$1,902.0
$728.3
Lead Service Line Replacement Projects
—
—
$3,000.0
—
Grants for Emerging Contaminant Projects
—
—
$800.0
—
CPF/CDS
—
—
—
$397.8
Grants for U.S.-Mexico Border Projects
$300.0
$30.0
—
$32.0
Grants for Rural and Alaska Native Vil ages
—
$36.2
—
$39.2
Grants for Testing School Water for Lead
—
$26.5
—
$27.5
Grants for Reducing Lead in Drinking Water
—
$21.5
—
$22.0
Grants for Small and Disadvantaged Communities
—
$26.4
$1,000.0
$27.2
Grants for Drinking Water System Resilience and Sustainability
—
$4.0
—
$5.0
Grants for Sewer Overflow and Stormwater
—
$40.0
—
$43.0
Water Infrastructure Finance and Innovation Act (WIFIA) Account
—
$65.0
—
$69.5
Total
$300.0
$3,014.5
$8,704.0
$3,030.3
Source: CRS, using data from Consolidated Appropriations Act, 2021 (P.L. 116-260); USMCA Supplemental Appropriations Act, 2019 (Title IX
of P.L. 116-113); P.L. 117-58; and P.L. 117-103. P.L. 117-58 provides supplemental appropriations for certain activities for FY2022-FY2026.
https://crsreports.congress.gov

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2022 Appropriations
State Revolving Fund Programs
Congress capped the FY2022 WIFIA credit assistance
The Clean Water Act (CWA) and the Safe Drinking Water
authority at $12.5 billion.
Act (SDWA) authorize complementary financial assistance
programs to help publicly owned treatment works and
Grants for Testing School Water for Lead
public water systems finance improvements needed for
The Water Infrastructure Improvement for the Nation Act
compliance and other statutory purposes. The CWSRF
(WIIN Act; P.L. 114-322) amended SDWA Section
provides financial assistance for infrastructure projects to
1464(d) (42 U.S.C. §300j-24) to require EPA to establish a
publicly owned treatment works and other eligible
voluntary program for testing for lead in drinking water at
recipients (33 U.S.C. §§1381-1387). The DWSRF provides
schools and child care programs under the jurisdiction of
assistance to public water systems, which may be publicly
local education agencies (LEAs). IIJA expands eligibilities,
or privately owned (42 U.S.C. §300j-12). In both SRF
and P.L. 117-103 provides $27.5 million.
programs, EPA makes grants to states to capitalize a state
revolving loan fund. Each state must match 20% of its
Grants for Reducing Lead in Drinking Water
annual capitalization grant. States are authorized to use the
The WIIN Act amended SDWA to add Section 1459B (42
DWSRF or the CWSRF to provide primarily subsidized
U.S.C. §300j-19b), which directs EPA to establish a grant
loans to eligible recipients. CWSRF financial assistance is
program for projects and activities that reduce lead in
available generally for purposes defined in CWA Section
drinking water. Grants can provide assistance to low-
603(c), which include wastewater and stormwater
income homeowners to replace their portions of lead
infrastructure projects. DWSRF financial assistance is
service lines. IIJA expands this program’s eligibilities. P.L.
available for statutorily specified expenditures and those
117-103 provides $22.0 million for FY2022.
that EPA has determined, through guidance, will facilitate
SDWA compliance or significantly further the act’s health
Grants for Small and Disadvantaged Communities
protection objectives.
In 2016, the WIIN Act amended SDWA by adding Section
1459A (42 U.S.C. §300j-19a), which directs EPA to
P.L. 117-103 includes “community project
establish a grant program to assist disadvantaged
funding/congressionally directed spending” (CPF/CDS)
communities and small communities that are unable to
items, which some have referred to as earmarks. P.L. 117-
finance projects needed to comply with SDWA. Projects
103 sets aside 27% ($443.6 million) of the FY2022
eligible include investments needed for SDWA compliance,
CWSRF appropriation to CPF/CDS and 35% ($397.8
household water quality testing, and assistance that
million) of the FY2022 DWSRF appropriation to
primarily benefits a community on a per-household basis.
CPF/CDS. Such funds will be distributed directly to
P.L. 117-103 provides $27.2 million for FY2022. IIJA
recipients, instead of to states’ SRF programs. Thus, the
expands the program’s eligible projects, and provides a
reservation of funds effectively decreases the total amount
supplemental appropriation for projects to address emerging
available for allotment as state capitalization grants. Per
contaminants of $1 billion for FY2022.
state, the amount available—namely state capitalization
grants and CPF/CDS—from FY2022 regular appropriations
Grants for Drinking Water System Resilience
will be larger or smaller compared to state allotments of
America’s Water Infrastructure Act of 2018 (AWIA; P.L.
FY2021 appropriations distributed by statutory formula
115-270) amended SDWA Section 1459A (42 U.S.C.
alone. Taken together with the FY2022 IIJA SRF
§300j-19a) to authorize EPA to establish the Drinking
supplemental appropriations, all states will receive a higher
Water System Infrastructure Resilience and Sustainability
capitalization grant amount in FY2022 than in FY2021.
Program, a grant program for small and disadvantaged
public water systems. IIJA directs EPA to establish this
Water Infrastructure Finance and Innovation Act
program. EPA is authorized to provide grants for projects
Congress established the WIFIA program in the Water
that increase resilience to natural hazards, including
Resources Reform and Development Act of 2014 (P.L. 113-
hydrologic changes. Eligible projects include those that
121; 33 U.S.C. §§3901-3914). WIFIA authorizes EPA and
increase water use efficiency, enhance water supply through
the U.S. Army Corps of Engineers (USACE) to provide
watershed management or desalination, and increase energy
credit assistance—secured or direct loans—for a range of
efficiency in the conveyance or treatment of drinking water.
water infrastructure projects. (For information on USACE
P.L. 117-103 provides $5.0 million for FY2022.
implementation, see CRS Insight IN11577, U.S. Army
Corps of Engineers Civil Works Infrastructure Financing
Sewer Overflow and Stormwater Grant Program
Program (CWIFP): Status and Issues.) Under WIFIA, EPA
In 2000, the Consolidated Appropriations Act, 2001 (P.L.
provides credit assistance directly to an eligible recipient.
106-554) amended the CWA by adding Section 221, which
To be eligible for WIFIA assistance, projects must
authorized EPA to establish a grant program to address
generally cost $20 million or more. The WIFIA program
overflows from municipal combined sewer systems and
can provide a large amount of credit assistance relative to
from municipal separate sanitary sewers. In 2018, AWIA
its budget authority. Annual WIFIA appropriations
modified the program to include stormwater infrastructure.
primarily cover long-term credit subsidy costs, which are
P.L. 117-103 provides $43.0 million for FY2022.
calculated to cover the risk that the loan will not be repaid.
As such, relative to its budget authority (e.g., $63.5 million
Elena H. Humphreys, Analyst in Environmental Policy
in FY2022 to cover subsidy costs), appropriations provide a
Jonathan L. Ramseur, Specialist in Environmental Policy
larger amount of total credit assistance. For example,
IF12103
https://crsreports.congress.gov

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2022 Appropriations

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF12103 · VERSION 1 · NEW