I' \ UNITED STATES ENVIRONMENTAL PROTECTION AGENCY | I WASHINGTON, D.C. 20460 V *1 PrO^ OFFICE OF WATER May 12, 2022 MEMORANDUM SUBJECT: FY 2022 DWSRF Base Allotment Availability Digitally signed by NICHOLAS CHAMBERLAIN FROM: Nick Chamberlain, Acting Associate Branch Chief Infrastructure Branch NICHOLAS Infrastructure Branch CHAMBERLA|N ^20512155923 Drinking Water Protection Division Office of Ground Water and Drinking Water TO: DWSRF Branch Chiefs & Regional Coordinators Regions I-X Federal fiscal year 2022 Drinking Water State Revolving Fund (DWSRF) base allotments from the Consolidated Appropriations Act, 2022 (Pub. L. 117-103) are now available. Together with the funding allocated under the Bipartisan Infrastructure Law (BIL), also referred to as the Infrastructure Investments and Jobs Act (IIJA) (Pub. L. 117-58), over $6.4 billion will be provided to the DWSRF in fiscal year 2022 to assists states, tribes, and territories with infrastructure projects that help provide safe drinking water to communities across the United States. This represents a nearly six-fold increase in funding to the DWSRF this year. This historic level of funding reinforces the ability of the DWSRF program to address the priorities established in the BIL Implementation Memorandum of March 8. 2022. including increasing investment in disadvantaged communities, building drinking water systems' resilience to all threats, and supporting American workers and domestic manufacturing. BIL funding also specifically and significantly advances the goal of fully removing all lead service lines across America. Learn more about water infrastructure investments through the BIL. The base allotment amounts reflect the appropriation of $1,126,088,000 reduced by the funds directed by Congress towards Community Project Funding/Congressionally Directed Spending projects. Therefore, the amount of funds available to the base DWSRF program this year is $728,321,956. Attached are the allotments and required additional subsidy amounts. The Green Project Reserve continues to be optional for state DWSRF programs. Programmatic terms and conditions will be sent to the Regions in the coming weeks. General information on the SRF programs can be found at: https://www.epa.gov/cwsrf and https://www.epa.gov/dwsrf. Per the Safe Drinking Water Act, states must provide at least a 20 percent match to the capitalization grant amount. 1 ------- 2022 Base Additional Subsidy Provisions Two distinct and additive subsidy authorities are included in the base 2022 capitalization grant. 1) Congressional Additional Subsidy Authority Under this authority, states may provide this subsidy to any DWSRF-eligible recipient. States must use 14 percent of the funds made available in the base 2022 DWSRF capitalization grant to provide additional subsidization to eligible recipients in the form of forgiveness of principal, negative interest loans, or grants (or any combination of these) to be used: • where such funds are provided as initial financing for an eligible recipient or to buy, refinance, or restructure the debt obligations of eligible recipients only where such debt was incurred after March 15, 2022, or • where such debt was incurred prior to March 15, 2022, if o the state, with concurrence from the EPA Region, determines that such funds could be used to help address a threat to public health from heightened exposure to lead in drinking water, or o a federal or state emergency declaration has been issued due to a threat to public health from heightened exposure to lead in a municipal drinking water supply before March 15, 2022. In a state in which such an emergency declaration has been issued, the state may use more than 14 percent of the 2022 capitalization grant for additional subsidy to recipients who are subject to the emergency declaration. In this case, the additional subsidy ceiling is the total capitalization grant amount, minus set-asides taken. 2) Safe Drinking Water Act Disadvantaged Community Additional Subsidy Authority As amended by the Bipartisan Infrastructure Law (BIL) (Pub. L. 117-58), the SDWA mandates that states use at least 12 percent but no more than 35 percent of the capitalization grant amount for additional subsidy for state-defined disadvantaged communities. Additional subsidy provided from this authority may be in the form of forgiveness of principal, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt. For a visual representation of these two mandatory yet distinct subsidy authorities, along with set-asides and the revolving loan portion, see Diagram 1 below. Diagram 1: Example $100 FY2022 Base Capitalization Grant Mandatory 14% Congressional Additional Subsidy Mandatory 12-35% SDWA Disadvantaged Communities Additional Subsidy Optional 0-31% SDWA Set-Asides* *31% is approximate, as states may take more than 4% for Administration purposes. Revolving Infrastructure Loan Funds Total FY22 Capitalization Grant 2 ------- If you have questions, contact Nick Chamberlain at Chamberlain.Nick@epa.gov. Attachments Cc: Anita Thompkins, Director, Drinking Water Protection Division Cindy Simbanin, Deputy Director, Drinking Water Protection Division Ron Bergman, Associate Director, Drinking Water Protection Division 3 ------- Attachment A FY 2022 Distribution of Drinking Water SRF Appropriation 2022 Base DWSRF Allotment of $728,321,956 based on 2015 DWINSA Results Based on Appropriation of $1,126,088,000 less $397,766,044 for Congressionaiiy Directed Spending Projects DWSRF Allotment DWSRF Allotment State % of Funds State % of Funds Capitalization Available Capitalization Available Grant to States Grant to States Alabama $15,106,000 2.16% New Jersey $11,960,000 1.71% Alaska $7,008,000 1.00% New Mexico $7,008,000 1.00% Arizona $12,603,000 1.80% New York $28,618,000 4.08% Arkansas $10,543,000 1.50% North Carolina $21,520,000 3.07% California $61,819,000 8.82% North Dakota $7,008,000 1.00% Colorado $13,846,000 1.98% Ohio $17,624,000 2.51% Connecticut $7,008,000 1.00% Oklahoma $9,935,000 1.42% Delaware $7,008,000 1.00% Oregon $9,220,000 1.32% Florida $27,585,000 3.94% Pennsylvania $21,577,000 3.08% Georgia $16,513,000 2.36% Puerto Rico $7,008,000 1.00% Hawaii $7,008,000 1.00% Rhode Island $7,008,000 1.00% Idaho $7,008,000 1.00% South Carolina $9,075,000 1.30% Illinois $26,439,000 3.77% South Dakota $7,008,000 1.00% Indiana $10,711,000 1.53% Tennessee $12,172,000 1.74% Iowa $11,101,000 1.58% Texas $54,911,000 7.84% Kansas $8,130,000 1.16% Utah $7,008,000 1.00% Kentucky $11,547,000 1.65% Vermont $7,008,000 1.00% Louisiana $10,489,000 1.50% Virginia $11,434,000 1.63% Maine $7,008,000 1.00% Washington $15,655,000 2.23% Maryland $12,837,000 1.83% West Virginia $7,008,000 1.00% Massachusetts $16,260,000 2.32% Wisconsin $11,943,000 1.70% Michigan $17,202,000 2.45% Wyoming $7,008,000 1.00% Minnesota $10,697,000 1.53% Mississippi $7,544,000 1.08% Missouri $12,354,000 1.76% District of Columbia $7,008,000 1.00% Montana $7,008,000 1.00% American Samoa* $2,640,000 0.38% Nebraska $7,008,000 1.00% Guam* $2,454,000 0.35% Nevada $8,123,000 1.16% Northern Marianas* $2,066,000 0.29% New Hampshire $7,008,000 1.00% Virgin Islands* $3,351,000 0.48% Total Funds Available to States $ 700,756,000 National Set-Asides Tribal Set-Aside ** $14,566,000 Monitoring for Unregulated Contaminants $12,000,000 National American Iron & Steel Administrative Set-Aside $999,956 Total SRF Appropriation $ 728,321,956 * Congress changed the percentage of total funds for the Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands to 1.5% in the FY 2010 appropriations law. This language carries forward in subsequent appropriations. ** Congress changed the annual percentage for the national Tribal set-aside to "2% of the funds appropriated, or $20M, whichever is greater, "in the FY 2016 appropriations law. This language carries forward in subsequent appropriations. This is an annual calculation based upon all capitalization grants appropriated by Congress that fiscal year. 4 ------- Distribution of Drinking Water Infrastructure Grants Tribal Set-Aside (DWIG TSA) Funds FY 2022 Base Based on DWSRF Appropriation of Portion for the DWIG TSA Program: $728,321,956 $ 14,566,000 Region Allotment Region 1 $302,000 Region 2 $789,000 Region 3 $292,000 Region 4 $377,000 Region 5 $757,000 Region 6 $1,352,000 Region 7 $494,000 Region 8 $1,864,000 Region 9 (incl Navajo) $4,536,000 Region 10 (incl ANVs) $3,803,000 TOTAL: $14,566,000 5 ------- Attachment B DWSRF FY 2022 Base Congressional Additional Subsidization Amounts as Authorized by the 2022 Base Appropriation Bigibie Recipient: Any DWSRF-Bigibie Recipient Based on Appropriation of $728,321,956 State Amount that must be provided as subsidization under this authority (14%) State Amount that must be provided as subsidization under this authority (14%) Alabama $ 2,114,840 Nevada $ 1,137,220 Alaska $ 981,120 New Hampshire $ 981,120 Arizona $ 1,764,420 New Jersey $ 1,674,400 Arkansas $ 1,476,020 New Mexico $ 981,120 California $ 8,654,660 New York $ 4,006,520 Colorado $ 1,938,440 North Carolina $ 3,012,800 Connecticut $ 981,120 North Dakota $ 981,120 Delaware $ 981,120 Ohio $ 2,467,360 Florida $ 3,861,900 Oklahoma $ 1,390,900 Georgia $ 2,311,820 Oregon $ 1,290,800 Hawaii $ 981,120 Pennsylvania $ 3,020,780 Idaho $ 981,120 Puerto Rico $ 981,120 Illinois $ 3,701,460 Rhode Island $ 981,120 Indiana $ 1,499,540 South Carolina $ 1,270,500 Iowa $ 1,554,140 South Dakota $ 981,120 Kansas $ 1,138,200 Tennessee $ 1,704,080 Kentucky $ 1,616,580 Texas $ 7,687,540 Louisiana $ 1,468,460 Utah $ 981,120 Maine $ 981,120 Vermont $ 981,120 Maryland $ 1,797,180 Virginia $ 1,600,760 Massachusetts $ 2,276,400 Washington $ 2,191,700 Michigan $ 2,408,280 West Virginia $ 981,120 Minnesota $ 1,497,580 Wisconsin $ 1,672,020 Mississippi $ 1,056,160 Wyoming $ 981,120 Missouri $ 1,729,560 Montana $ 981,120 Nebraska $ 981,120 6 ------- DWSRF FY 2022 Base SDWA Disadvantaged Community Subsidization Amounts as Authorized by the SDWA Eligible Recipients: Disadvantaged Communities Based on Appropriation of $728,321,956 State Minimum amount that must be provided as subsidization under this authority (12%) Maximum amount that may be provided as subsidization under this authority (35%) State Minimum amount that must be provided as subsidization under this authority (12%) Maximum amount that may be provided as subsidization under this authority (35%) Alabama $ 1,812,720 $ 5,287,100 Nevada $ 974,760 $ 2,843,050 Alaska $ 840,960 $ 2,452,800 New Hampshire $ 840,960 $ 2,452,800 Arizona $ 1,512,360 $ 4,411,050 New Jersey $ 1,435,200 $ 4,186,000 Arkansas $ 1,265,160 $ 3,690,050 New Mexico $ 840,960 $ 2,452,800 California $ 7,418,280 $ 21,636,650 New York $ 3,434,160 $ 10,016,300 Colorado $ 1,661,520 $ 4,846,100 North Carolina $ 2,582,400 $ 7,532,000 Connecticut $ 840,960 $ 2,452,800 North Dakota $ 840,960 $ 2,452,800 Delaware $ 840,960 $ 2,452,800 Ohio $ 2,114,880 $ 6,168,400 Florida $ 3,310,200 $ 9,654,750 Oklahoma $ 1,192,200 $ 3,477,250 Georgia $ 1,981,560 $ 5,779,550 Oregon $ 1,106,400 $ 3,227,000 Hawaii $ 840,960 $ 2,452,800 Pennsylvania $ 2,589,240 $ 7,551,950 Idaho $ 840,960 $ 2,452,800 Puerto Rico $ 840,960 $ 2,452,800 Illinois $ 3,172,680 $ 9,253,650 Rhode Island $ 840,960 $ 2,452,800 Indiana $ 1,285,320 $ 3,748,850 South Carolina $ 1,089,000 $ 3,176,250 Iowa $ 1,332,120 $ 3,885,350 South Dakota $ 840,960 $ 2,452,800 Kansas $ 975,600 $ 2,845,500 Tennessee $ 1,460,640 $ 4,260,200 Kentucky $ 1,385,640 $ 4,041,450 Texas $ 6,589,320 $ 19,218,850 Louisiana $ 1,258,680 $ 3,671,150 Utah $ 840,960 $ 2,452,800 Maine $ 840,960 $ 2,452,800 Vermont $ 840,960 $ 2,452,800 Maryland $ 1,540,440 $ 4,492,950 Virginia $ 1,372,080 $ 4,001,900 Massachusetts $ 1,951,200 $ 5,691,000 Washington $ 1,878,600 $ 5,479,250 Michigan $ 2,064,240 $ 6,020,700 West Virginia $ 840,960 $ 2,452,800 Minnesota $ 1,283,640 $ 3,743,950 Wisconsin $ 1,433,160 $ 4,180,050 Mississippi $ 905,280 $ 2,640,400 Wyoming $ 840,960 $ 2,452,800 Missouri $ 1,482,480 $ 4,323,900 Montana $ 840,960 $ 2,452,800 Nebraska $ 840,960 $ 2,452,800 7 ------- |