United States
                    Environmental Protection        Office of .Water       ,EPA 816-F-97-010
                    Agency                        4606                 October 1997

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                    New Federal Funding for  Land

                    Acquisition and Conservation

                    Easements
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 -.          '         • •          •   - :               ,   -          .   •           Vr Protection
 Overview
    New funds from the Safe Drinking Water Act promote EPA's mission to protect public health by
 ensuring safe drinking water. Land trusts and other local organizations can further this mission by
 working with state agencies and water suppliers to identify and acquire critical lands and conservation
 easements.

 A Focus on Drinking Water Protection
    Safe drinking water is precious to communities, and its quality can be threatened by contamination
 of the lakes, reservoirs, streams, and ground water ,that serve as sources of drinking water.  Communities
 of all sizes across the United States that have experienced contaminated water supplies or that foresee
 potential threats to the quality of their drinking water are considering various options for protecting their -
 sources of drinking water.  Some communities have found that an effective way to protect water quality
 is to own or control land that is located in upstream watershed or ground water recharge areas where
 development activities could impair the.quality of the drinking water source. While land acquisition  and -
 easement efforts can protect a water supply by preventing pollution-generating activities in critical areas,
 the efforts can also provide other' community benefits such as preserving wildlife areas, enhancing
 recreational opportunities, and reducing flood damage.

 Safe Drinking  Water Act Funding
    The 1996 Amendments to the Safe Drinking Water Act make it easier for communities to purchase
 land or conservation  easements for the purpose of protecting public drinking water supplies.  The new
 law provides for annual grants to each state through the year 2003 to fund drinking water programs and
 projects that protect public health and ensure compliance with the requirements of the Act. In 1997,
 grants to individual states from the U.S. Congress' $ 1.275 billion appropriation ranged from $ 12.6 '
 million to $75.7 million. Each state will place most of this money into a Drinking Water State Revolving
 Fund (DWSRF) to use for loans to community public water systems for building or upgrading water
treatment plants and other water supply construction projects. However, a state also has the option of
designating up tq 10% of its federal grant specifically for the acquisition of land and conservation
easements, as well as for other source water protection activities. The conditions for this land acquisition
set-aside are described in the Drinking Water SRF Program Guidelines (page 22):

          ."A State may provide assistance,, only in the form of a loan, to a public water
          system to acquire land or a conservation easement from a willing party for the
          purpose of protecting the system's source water(s) and ensuring compliance with
          national drinking water regulations.

          If a State elects to use this set-aside, the State shall use a priority setting process to
          decide what land or easements can be purchased.  The process must include a

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          requirement that public water systems demonstrate how the land or
          easements to be purchased will directly promote public health protection '
          and/or compliance with national drinking water regulations.
          The State must seek public review and comment on this process."

Working with States to Influence Funding Decisions
    Each year, states must explain how they intend to  use the federal funding under the Safe Drinking
Water Act in a document that is submitted to the U.S.  Environmental Protection Agency (EPA) called
the Intended Use Plan (IUP). Funds set aside for specific purposes such as land acquisition, assistance to
small communities, wellhead protection, and other uses must be specifically described in the Intended
Use Plan. Before the IUP is submitted to the EPA for approval, states must provide the public with
adequate opportunity to review and comment on the Plan. Each state must also respond to all substantial
comments received from  the public.

    For further information on your state's decisions to designate funds for easements and land
acquisition and how to become involved, contact the agency in your state that is managing the drinking
water program.  Call the EPA Drinking Water Hotline at 1-800-426-4791 for the phone number and
address of your state's contact.

Partnerships with Water Suppliers on Land Acquisition Activities
    Loans for land acquisition and conservation easements can only be given to public water systems,
Therefore, local land trusts, community groups, or others that are interested in easements and land
acquisition opportunities  for protecting drinking water quality should work cooperatively with local
water suppliers to request funds from'the DWSRF.  Local groups that have expertise in identifying
properties that qualify for the funding or that have experience in negotiating acquisitions from willing
sellers can offer their assistance to water suppliers.  Such partnerships may complement the ongoing
work of organizations to preserve parts of a watershed or ground water area for other purposes. Contact
your state agency, community leaders, and/or local public water provider to find out about opportunities
for local involvement, or  to explore partnership opportunities.

To Find Out More
    For additional information on state responsibilities for source water assessment activities,
opportunities for local involvement, public participation, and other issues, call the EPA Hotline and
request a copy ,of the "State Source  Water Assessment and Protection Programs Guidance."  In addition,
more details on state use of federal funds for drinking  water programs are contained in EPA's "Drinking
Water State Revolving Fund Program Guidelines" that can also be requested through the Hotline. These
publications, as well as various fact sheets and links to other water protection programs can be found  on
the EPA Website at http://www.epa.gov/OGWDW.

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