U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2023 Appropriations

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2023 Appropriations

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January 13, 2023
U.S. Environmental Protection Agency (EPA) Water
Infrastructure Programs and FY2023 Appropriations
Many policymakers and stakeholders have raised concerns
the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-
about the condition of the nation’s local drinking water and
58). Appropriations for the SRFs and other water
wastewater infrastructure and the financial challenges that
infrastructure programs are provided within the State and
communities may confront in maintaining, repairing, or
Tribal Assistance Grant (STAG) account. A separate
replacing aging infrastructure. In 2016, the U.S.
account funds a federal credit assistance program under the
Environmental Protection Agency (EPA) estimated that
Water Infrastructure Finance and Innovation Act (WIFIA).
wastewater and stormwater infrastructure would need $271
billion over the next 20 years to meet federal water quality
As presented in Table 1, Division G provides $3.07 billion
objectives. In 2018, EPA estimated that public water
in regular appropriations for these water infrastructure
systems need to invest $473 billion in infrastructure over 20
programs, 1.25% more than the total regular FY2022
years to ensure the provision of safe drinking water.
enacted level (P.L. 117-103). Division J of IIJA included
emergency supplemental appropriations for the SRFs and
FY2023 Appropriations
one drinking water grant program for FY2022-FY2026. For
The Consolidated Appropriations Act, 2023 (P.L. 117-328),
FY2023, IIJA provides $9.3 billion for such programs.
Division G, Title II, contains regular appropriations for
Division N of P.L. 117-328 provides supplemental
EPA for multiple water infrastructure programs, including
appropriations for certain locations through the SRFs and a
the Clean Water State Revolving Fund (CWSRF) and the
drinking water grant program; these location-limited funds
Drinking Water SRF (DWSRF). The act provides
are not shown in Table 1 or discussed further herein.
appropriations for some new grant programs authorized in
Table 1. EPA Water Infrastructure: Enacted Appropriations for FY2022 and FY2023
dol ars in millions, not adjusted for inflation
FY2023
FY2022
FY2022
FY2023
Division G
IIJA
P.L. 117-103
IIJA
Program
P.L. 117-328
State and Tribal Assistance Grants (STAG) Account

CWSRF
$1,902.0
$1,195.2
$2,202.0
$775.8
Grants for Emerging Contaminant Projects
$100.0
—
$100.0
—
Community Project Funding/Congressionally Directed Spending (CPF/CDS)
—
$443.6
—
$863.1
DWSRF
$1,902.0
$728.3
$2,202.0
$516.9
Lead Service Line Replacement Projects
$3,000.0
—
$3,000.0
—
Grants for Emerging Contaminant Projects
$800.0
—
$800.0
—
CPF/CDS
—
$397.8
—
$609.3
Grants for U.S.-Mexico Border Projects
—
$32.0
—
$36.4
Grants for Rural and Alaska Native Vil ages
—
$39.2
—
$39.7
Grants for Testing School Water for Lead
—
$27.5
—
$30.5
Grants for Reducing Lead in Drinking Water
—
$22.0
—
$25.0
Grants for Small and Disadvantaged Communities
$1,000.0
$27.2
$1,000.0
$30.2
Grants for Small Water System Resilience and Sustainability
—
$5.0
—
$7.0
Grants for Midsize to Large Water System Resilience and Sustainability
—
—
—
$5.0
Grants for Indian Reservation Drinking Water
—
—
—
$4.0
Grants for Sewer Overflow and Stormwater
—
$43.0
—
$50.0
Water Infrastructure Finance and Innovation Act (WIFIA) Account
—
$69.5
—
$75.6
Total
$8,704.0
$3,030.3
$9,304.0
$3,068.3
Source: CRS using from Consolidated Appropriations Act, 2022 (P.L. 117-103); P.L. 117-58; and P.L. 117-328. P.L. 117-58 provides
supplemental appropriations for certain activities for FY2022-FY2026. Supplemental appropriations in Division N of P.L. 117-328 are not
shown, as they are for certain locations.
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U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2023 Appropriations
State Revolving Fund Programs
eligibilities, and P.L. 117-328 provides $30.5 million in
The Clean Water Act (CWA) and the Safe Drinking Water
FY2023 for the program.
Act (SDWA) authorize complementary programs to help
publicly owned treatment works and public water systems
Grants for Reducing Lead in Drinking Water
finance improvements needed for compliance and other
SDWA Section 1459B directs EPA to establish a grant
statutory purposes. The CWSRF provides financial
program for projects and activities that reduce lead in
assistance for infrastructure projects to publicly owned
drinking water. Grants can provide assistance to low-
treatment works and other eligible recipients (33 U.S.C.
income homeowners to replace lead service lines. IIJA
§§1381-1387). The DWSRF provides assistance to public
expands eligibilities, and P.L. 117-328 provides $25.0
water systems, which may be publicly or privately owned
million in FY2023 for the program.
(42 U.S.C. §300j-12). In both SRF programs, EPA makes
grants to states to capitalize a state revolving loan fund.
Grants for Small and Disadvantaged Communities
Each state must match 20% of its annual capitalization
SDWA Section 1459A directs EPA to establish a grant
grant. States are authorized to use the CWSRF or the
program to assist disadvantaged communities and small
DWSRF primarily to provide subsidized loans to eligible
communities that are unable to finance projects needed to
recipients. CWSRF financial assistance is available
comply with SDWA. P.L. 117-328 provides $30.2 million
generally for purposes defined in CWA Section 603, which
for FY2023. IIJA provides funding for this grant program
include wastewater and stormwater infrastructure projects.
for projects to address emerging contaminants of $1.0
DWSRF financial assistance is available for statutorily
billion for FY2023.
specified expenditures and those that EPA has determined,
through guidance, will facilitate SDWA compliance or
Grants for Drinking Water System Resilience
significantly further the act’s health protection objectives.
SDWA Section 1459A(l) directs EPA to establish a grant
program to assist small and disadvantaged public water
P.L. 117-328 includes “community project
systems to improve natural hazard resilience. P.L. 117-328
funding/congressionally directed spending” (CPF/CDS)
provides $7.0 million for FY2023. IIJA amended SDWA to
items, which some call earmarks. The act sets aside 53%
add a parallel resilience grant program for water systems
($863.1 million) of the FY2023 CWSRF appropriation to
serving 10,000 people or more. P.L. 117-328 provides the
CPF/CDS and 54% ($609.3 million) of the FY2023
program’s first appropriation of $5.0 million.
DWSRF appropriation to CPF/CDS. Such funds are to be
distributed directly to recipients, instead of to states’ SRF
Grants for Indian Reservation Drinking Water
programs. Thus, the reservation of funds effectively
America’s Water Infrastructure Act of 2018 (AWIA; P.L.
decreases the total amount available for allotment as state
115-270), Section 2001, established a grant program for
capitalization grants. Compared to FY2022 appropriations,
water systems that serve Indian tribes in specified river
P.L. 117-328 set aside a higher percentage of the SRF
basins. IIJA expanded the program to more river basins and
appropriations for CPF/CDS. Accordingly, even with the
project types. P.L. 117-328 provides the program’s first
IIJA SRF appropriations, all states are to receive a lower
appropriation of $4.0 million.
capitalization grant amount in FY2023 than in FY2022.
Sewer Overflow and Stormwater Grant Program
Water Infrastructure Finance and Innovation Act
In 2000, the Consolidated Appropriations Act, 2001 (P.L.
Congress established the WIFIA program in the Water
106-554), amended the CWA by adding Section 221,
Resources Reform and Development Act of 2014 (P.L. 113-
authorizing EPA to establish a grant program to address
121, 33 U.S.C. §§3901-3914). WIFIA authorizes EPA and
sewer overflows. AWIA modified the program to include
the U.S. Army Corps of Engineers (USACE) to provide
stormwater infrastructure. P.L. 117-328 provides $50.0
credit assistance—secured loans or loan guarantees—for a
million for FY2023.
range of water infrastructure projects. (For information on
USACE implementation, see CRS Insight IN12021, Corps
Other Wastewater/Drinking Water Grant
Water Infrastructure Financing Program (CWIFP)). Under
Programs
WIFIA, EPA provides loans directly to eligible recipients.
P.L. 117-328 provides appropriations for other wastewater
WIFIA appropriations primarily cover long-term credit
and drinking water grant programs that do not directly
subsidy costs, which is the federal government’s risk that
support construction activities. These programs support a
the loan may not be paid. EPA estimates that the average
variety of activities, including technical assistance for small
subsidy cost for WIFIA projects will be comparatively low.
drinking water/wastewater systems, development of
Thus, relative to its budget authority, WIFIA appropriations
“innovative” technology for drinking water or stormwater
allow for a larger amount of total assistance. For example,
control, development of the water sector workforce, and
EPA estimates that the FY2022 budget authority for
research on enhanced aquifer recharge and use. P.L. 117-
subsidy costs (i.e., $63.5 million of the $69.5 million for the
328 provides first-time appropriations for certain IIJA grant
program) will allow EPA to loan roughly $6.5 billion.
programs for stormwater control technology centers of
excellence and enhanced aquifer use and recharge research.
Grants for Testing School Water for Lead
SDWA Section 1464(d) requires EPA to establish a
Elena H. Humphreys, Analyst in Environmental Policy
voluntary program for testing for lead in drinking water at
Jonathan L. Ramseur, Specialist in Environmental Policy
schools and child care programs under the jurisdiction of
local education agencies. IIJA expanded the program’s
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U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2023 Appropriations

IF12309

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