Safe Drinking Water Act §1459A
Emerging Contaminants in Small or
Disadvantaged Communities Grant Program
Implementation Manual for FY 2024 Funding
November 2024
EPA-810-B-24-002
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Emerging Contaminants in Small or
Disadvantaged Communities Grant
Program: States and Territories Grant
Implementation Document for Fiscal Year
2024 Funding
Safe Drinking Water Act Section 1459A
Infrastructure Investment and Jobs Act (IIJA) of 2021 (P.L. 117-58) Division J (FY 2022 Appropriations),
Title VI - State and Tribal Assistance Grants (6)
Summary
In November 2021, Congress passed the Infrastructure Investment and Jobs Act (IIJA) of 2021 (P.L 117-
58) and it was later signed into law, which is commonly referred to as the Bipartisan Infrastructure Law
(BIL). The U.S. Environmental Protection Agency (EPA) is issuing an updated implementation document
for fiscal year (FY) 2024 funding for the Emerging Contaminants in Small or Disadvantaged Communities
(EC-SDC) Grant Program. An amendment to the Safe Drinking Water Act (SDWA) Section 1459A
Assistance for Small and Disadvantaged Communities provides more than $50 billion for the EPA to
strengthen the nation's drinking water and wastewater systems - the single largest investment in clean
water that the federal government has ever made. Among its provisions, the BIL provides a total of $5
billion in fiscal years 2022-2026 for the EC-SDC grant program, which focuses on addressing emerging
contaminants and perfluoroalkyl and polyfluoroalkyl substances (PFAS) in small or disadvantaged
communities' drinking or source water.
The EPA recognizes that communities across the country need relief from emerging contaminants and
PFAS in drinking water. That is why EPA's PFAS Strategic Roadmap identifies remediation as a central
directive in EPA's approach. EC-SDC funding combines BIL funds, resources and priorities to help states:
• Address PFAS and emerging contaminant challenges;
• Target resources to communities most in need of assistance to ensure that no community is left
behind with unsafe, inadequate water; and
• Advance the priorities of equity and environmental justice, particularly by educating
communities about this opportunity, and simplifying administrative procedures to reduce or
eliminate barriers to access funds.
The EPA is committed to productive coordination with states, Tribes, and territories to maximize the
impact of these funds in addressing PFAS and emerging contaminant-related water challenges facing
communities.
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The amended SDWA focuses on rebuilding America's infrastructure and investing in communities that
have too often been left behind, from rural towns to struggling cities, and presents a unique opportunity
to provide funding for these communities. For the purposes of this grant program, "small or
disadvantaged communities" are defined in Section 1459A(c) of the SDWA.1
Under SDWA, a "disadvantaged community" is defined as "the service area of a public water system that
meets affordability criteria established after public review and comment by the State in which the public
water system is located."2 Similarly, for this grant funding, the definition and affordability criteria are
critical to identifying areas most in need to direct grant award assistance under the SDWA 1459A
programs. The EPA is committed to working with states to evaluate and revise, as needed, the state's
disadvantaged community definition.
The EC-SDC grant funds are awarded to states and territories noncompetitively. Using a non-competitive
approach through the states and territories aids in identifying disadvantaged communities, strengthens
program efficiency, promotes inclusivity and equity, and is consistent with congressional intent for these
funds.
1 See Appendix F: SDWA SECTION 1459A ASSISTANCE FORSMALLAND DISADVANTAGED COMMUNITIES.
2 SDWA §1452(d)(3).
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Table of Contents
SUMMARY 2
TABLE OF CONTENTS 4
PURPOSE 5
STRATEGIC PRIORITIES 5
ADDRESSING DISADVANTAGED COMMUNITIES AND AFFORDABILITY 8
STATUTORY AUTHORITY 9
ELIGIBLE APPLICANTS AND BENEFICIARIES 11
ELIGIBILITY PROVISIONS 12
INELIGIBLE ACTIVITES/USES OF GRANT FUNDS 15
PRIVATE WELLS 15
NOTICE OF INTENT 16
ALLOCATION OF FUNDS 17
APPLICATION PACKAGE AND SUBMISSION INFORMATION 17
SCOPE OF WORK (WORKPLAN) 18
STATE ACTIVITIES SELECTION 22
COST SHARING REQUIREMENTS 22
AWARD ADMINISTRATION INFORMATION 22
APPENDIX A. OTHER APPLICABLE PROVISIONS 27
APPENDIX B. SUMMARY OF KEY WORKPLAN ELEMENTS 32
APPENDIX C. EXAMPLES OF WORKFORCE ACTIVITIES ELIGIBLE FOR FUNDING 33
APPENDIX D. EXAMPLES OF CATEGORY ACTIVITIES 34
APPENDIX E. SUMMARY OF GRANT TIMELINE 40
APPENDIX F. SAMPLE LETTER OF INTENT TO PARTICIPATE 41
APPENDIX G. BIL DIVISION J TITLE VI APPROPRIATION 42
APPENDIX H. SDWA SECTION 1459A ASSISTANCE FOR SMALL AND DISADVANTAGED COMMUNITIES 43
APPENDIX I. DEFINITION OF EMERGING CONTAMINANTS 46
APPENDIX J. RESOURCES 47
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PURPOSE
This Emerging Contaminants in Small or Disadvantaged Communities (EC-SDC) grant program, CFDA
66.442, Implementation Document describes how the U.S. Environmental Protection Agency (EPA) will
administer grant funds to assist small or disadvantaged communities to improve their drinking water by
carrying out projects and activities to address emerging contaminants. The purpose of this
Implementation Document is to provide states with the information they need to apply for funding. For
the purposes of this document, the term "state" refers to the 50 states, the District of Columbia, Puerto
Rico, Guam, the U.S. Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana
Islands. The statutory authority for the EC-SDC grant program requirements is Section 1459A of the Safe
Drinking Water Act (SDWA), which is the same authority as EPA's Small, Underserved and Disadvantaged
Communities (SUDC) Grant.
The EC-SDC grant program, however, is different than the SUDC grant. The EC-SDC grant program
focuses primarily on funding emerging contaminants projects and activities necessary for a public water
system in a small or disadvantaged community. The SUDC grant program prioritizes eligible projects
needed to return to compliance under SDWA in underserved, small or disadvantaged communities. The
EC-SDC grant program does not have a requirement to provide funds to underserved communities, as
defined in SDWA 1459A.
This document contains EC-SDC grant program information for EPA, states, and communities. Nothing in
this document is meant to conflict with or supersede the statute, Office of Management and Budget
Guidance, or EPA's regulations, policy, or grant terms and conditions. A separate document will
delineate the implementation of the appropriation for tribal funding that does not go through a state.
All public materials for the grant program are available at iA/ww.epa.gov/safewater/grants.
STRATEGIC PRIORITIES
An amendment to the Safe Drinking Water Act (SDWA) Section 1459A Assistance for Small and
Disadvantaged Communities provides more than $50 billion for the EPA to strengthen the nation's
drinking water and wastewater systems - including $5 billion dedicated to the EC-SDC grant program in
fiscal years 2022-2026. This funding represents a historic investment in small or disadvantaged water
systems, many of which have long struggled to develop and access funding to implement urgently
needed infrastructure improvements. The EC-SDC grant program enables small or disadvantaged water
systems to make improvements necessary to identify and address emerging contaminants in their
communities. The EPA encourages states to use EC-SDC funding to do the following:
Target resources to communities most in need of assistance. States are encouraged to think
creatively about how to reach communities in need with EC-SDC funds. The EPA encourages
states to reach beyond traditional stakeholder organizations and engage neighborhood and
other organizations connected to the community to help identify needs and communicate
priorities. States may start by identifying recipients of other targeted programs; for example,
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state EC-SDC programs can collaborate with other state environmental programs with
community-based projects, such as the Resource Conservation and Recovery Act (RCRA)
Permitting, Corrective Action, and Brownfields programs to identify vulnerable communities.
Additionally, the EPA will collaborate with state programs to share models, examples, and build
state capacity to identify and target resources to disadvantaged communities and small systems
with limited capacity. Further information on reaching communities is provided in ADDRESSING
DISADVANTAGED COMMUNITIES AND AFFORDABILITY.
Advance Equity. Historically, some communities have suffered disproportionate burdens of
pollution, chronic disinvestment, and lack of access to capital. These disadvantaged
communities exist in every state, tribe, and territory and encompass urban, suburban, and rural
areas across America. Characteristics may include low income; high and/or persistent poverty;
high unemployment or underemployment; high housing costs and substandard housing;
disproportionate environmental stressors and high cumulative impacts; limited drinking water
access and affordability; and/or disproportionate climate impacts. States should communicate
with these communities about this grant opportunity, simplify administrative procedures, and
provide comprehensive technical assistance and support to eliminate barriers to participation
and ensure improvements are successfully planned, developed, and implemented. States are
encouraged to coordinate between their SUDC, Public Water System Supervision (PWSS) and/or
Drinking Water State Revolving Fund (DWSRF) programs in their reviews and updates of the
disadvantaged community definitions. This effort is anticipated to increase the number of
disadvantaged communities that apply for grant funding or seek use of the grant funds to co-
fund projects with SUDC, PWSS and/or DWSRF funds to support larger activities/infrastructure
projects, as applicable, in communities of need.
Address PFAS and other emerging contaminants. The universe of substances considered to be
emerging contaminants is, by its nature, variable and evolving. States are encouraged to think
broadly about the type of contaminants that pose public health risks through drinking water.
State EC-SDC programs are encouraged to coordinate with their states' hazardous waste
management and cleanup programs to identify potential contaminants and potential sources of
contamination. However, to the extent there are sufficient applications, projects that address
PFAS should be prioritized. States are also encouraged to address perchlorate and other
persistent "forever" chemicals. See Eligible Provisions and Appendix F. SDWA Section 1459A
Assistance for Small and Disadvantaged Communities provide information for states to use in
evaluating project eligibility.
Drive toward energy efficient and climate smart water systems. The EPA encourages states to
use funding to support emerging contaminant remediation projects with consideration to
climate mitigation and adaptation that minimize greenhouse gas emissions, moderate energy
usage, and include resilience to climate threats using the best available and most geographically
relevant climate information, projections, and standards, such as the :ederal Flood Risk
Management Standard.
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Foster resilience to all threats and hazards. Consistent with 'residential Policy Directive (PPD)
, critical infrastructure must be secure and resilient to all threats and hazards, both natural
and manmade, in an increasingly electrified, digitized, and interconnected society. EPA
urges states to use the historic increase in grant funding to foster water, wastewater, and
stormwater system resilience to all hazards, including new and emerging threats like
cyberattacks.
Support American workers and build an inclusive water workforce. Through implementation of
BIL, the EPA is committed to working with states, tribes, and territories—as well as labor
organizations, employers, and educators - to renew America's water workforce and create
good-paying jobs in communities across America. As an examples, as states implement the grant
funding, they are to encourage pre-apprenticeship, registered apprenticeship, and youth
training programs that open pathways to employment.
Cultivate domestic manufacturing. Congress established the Build America Buy America (BABA)
Act, a domestic preference program to create long-term opportunities for domestic
manufacturers and manufacturing jobs and build resilient domestic supply chains for a wide
range of products. For EC-SDC recipients, BABA introduces domestic preference requirements
for iron and steel, construction materials, and manufactured goods. The EPA will support whole
of government efforts to catalyze domestic manufacturing, resilient supply chains, and good
jobs - while successfully delivering a wide range of critical infrastructure projects for states,
local communities, counties, tribal nations and farms, factories, and businesses across the U.S.
The EPA released implementation procedures for BABA compliana for federal water
infrastructure grant funding programs in November 2022. The EPA recognizes this is a complex
law and will work closely with states, tribes, and territories on technical assistance, compliance,
and training.
States can refer to the EPA's BABA webpage for the most current information. States should:
• Inform EC-SDC sub-recipients of the BABA domestic preference requirements and/or
waiver eligibilities. The EPA will work with states to develop and provide information to
EC-SDC sub-recipients.
• Assist with overseeing BABA implementation across state EC-SDC-funded projects, as
applicable, and relay detailed information, as provided by the EPA and the Office of
Management and Budget, on BABA compliance requirements and processes to recipients.
• Collaborate with the EPA and industry to incentivize and grow domestic supply chains and
U.S. manufacturing capacity for products essential to drinking water infrastructure.
• Educate funding recipients about their eligibility for waivers and provide help applying for
waivers. The EPA will develop appropriate waivers and processes to facilitate compliance
with these requirements.
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Fully enforce civil rights. Under Title VI of the Civil Rights Act, the EPA has a responsibility to
ensure that federal funds are not being used to subsidize discrimination based on race, color, or
national origin. This prohibition against discrimination under Title VI has been a statutory
mandate since 1964, and the EPA has had Title VI regulations since 1973. EPA's
nondiscrimination regulations prohibit recipients of the EPA financial assistance from taking
actions in their programs or activities that are intentionally discriminatory and/or have a
discriminatory effect based on race, color, national origin (including limited English proficiency),
age, disability, or sex. The EPA intends to carefully evaluate the implementation of EC-SDC
funding to ensure compliance with civil rights laws. The EPA will provide interested states with
technical assistance and training to support their compliance with Title VI obligations.
Streamline state programs to build the pipeline of projects. The EPA encourages states to
strategically use new authorities and different funding sources as a catalyst to continue building
and maintaining a robust project pipeline of water infrastructure improvement projects. The EC-
SDC and the DWSRF programs can complement each other in supporting disadvantaged
communities' and small communities' development of projects to remediate emerging
contaminants in drinking water. States must balance the need to use all funds in a timely and
expeditious manner with a need for sustainable projects.
ADDRESSING DISADVANTAGED COMMUNITIES AND AFFORDABILITY
Section 1452(d)(3) of SDWA requires states to define "disadvantaged communities" based on
affordability criteria developed by the states, consistent with other laws, including federal non-
discrimination statutes such as Title VI of the Civil Rights Act of 1964. Given the influx of funding from
the BIL, the EPA expects states to review, refine, and improve as necessary, their disadvantaged
community definition to ensure that they are reflective of current affordability issues within the state.
The EPA is committed to working with states to ensure EC-SDC funding is provided to disadvantaged
communities and small communities with limited capacity to the maximum extent possible. The EPA will
use a variety of tools to accomplish this goal, including:
• Review of the effective integration of the program to reach disadvantaged and small
communities. Recognizing that the communities in greatest need are often the least equipped or
prepared to move forward with an EC-SDC project and application, to identify needs, develop
projects, and complete preliminary engineering steps that are necessary to apply for
construction funding. Working collaboratively, the EPA and states can make progress towards
ensuring that federal agencies collectively deliver at least 40% of benefits from certain
investments to disadvantaged communities.
• Reaching disadvantaged neighborhoods within larger communities: The SDWA requires states
to define a "disadvantaged community." Some states define a disadvantaged community to
include a large public water system where a particular project within the system addresses a sub-
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set of the service area that meets the affordability criteria. The EPA interprets this type of
definition to be consistent with Section 1452(d)(3) of SDWA.
• Evaluating capacity of systems: The EPA encourages states to review their existing public water
systems (PWS) technical, managerial, and financial capacity (TMF) assessment strategies. The
Agency expects the states to take the opportunity to better evaluate, identify, and prioritize
small or disadvantaged systems who can most benefit from this funding. Under the SDWA
section 1420(c), states are required to implement a capacity development strategy to assist
public water systems in acquiring and maintaining TMF capacity.
• Reallotments and partial awards: States must identify sufficient eligible projects that will receive
funding in their proposed workplan. After year one, states that are unable to fund sufficient
eligible projects may receive partial grant awards until they are able to fund sufficient
communities or projects. In instances where states are unable to identify sufficient eligible
projects for sub-awards, funds may be eligible for reallotment in the following fiscal year to
support communities with substantial needs.
STATUTORY AUTHORITY
Infrastructure Investment and Jobs Act of 2021 (IIJA) (P.L. 117-58), Division J, Title VI - State and Tribal
Assistance Grants (6), appropriates funds for the EC-SDC grant program under section 1459A of SDWA as
follows:
"(6) $5,000,000,000for grants for addressing emerging contaminants under subsections (a)
through (j) of section 1459A of the Safe Drinking Water Act (42 U.S.C. 300j-19a)."3
The appropriation also specifies that public water systems receiving assistance through EC-SDC funded
grants do not have to serve communities that meet the definition of "underserved community":
"Provided further, That funds provided to States under this paragraph may be used for
projects that address emerging contaminants supporting a community described in section
1459A, subsection (c)(2), of the Safe Drinking Water Act, notwithstanding the definition of
underserved communities in section 1459A, subsection (a)(2), of the Safe Drinking Water
Act:"4
The appropriation further specifies that the cost sharing and match requirements in SDWA section
1459A(g) also do not apply to the EC-SDC grant program funds:
"Provided further, That funds provided under this paragraph in this Act shall not be subject to the
matching or cost share requirements of section 1459A of the Safe Drinking Water Act:"5
3 BIL (P.L 117-58) Division J (FY 2022 Appropriations), Title VI - State and Tribal Assistance Grants (6).
4 Ibid.
5 Ibid.
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The matching or cost share requirements are contained in Section 1459A(g) of SDWA:
(g) COST SHARING.—Before providing a grant to an eligible entity under this section, the
Administrator shall enter into a binding agreement with the eligible entity to require the eligible
entity—
(1) except as provided in subsection (l)(5) and subject to subsection (h), to pay not less
than 10 percent of the total costs of the project or activity, which may include services,
materials, supplies, or other in-kind contributions;
(2) to provide any land, easements, rights-of-way, and relocations necessary to carry out
the project or activity; and
(3) to pay 100 percent of any operation and maintenance costs associated with the
project or activity.
The EPA interprets the appropriations provision waiving the matching and cost share requirements
under SDWA section 1459A to refer specifically to the ten percent cost share requirement in SDWA
section 1459A(g)(l). Costs associated with acquiring land, easements, right-of-way, and relocations as
described in SDWA section 1459A(g)(2) and ongoing operation and maintenance costs as described in
SDWA section 1459A(g)(3) are not eligible for EC-SDC funding and must be paid for by the eligible entity.
Section 1459A of SDWA, as amended by the 2016 WIIN Act and the 2018 America's Water Infrastructure
Act (AWIA), authorizes the EPA to award grants to states to assist underserved, small and disadvantaged
communities that are unable to finance activities needed to comply with SDWA, as well as respond to a
drinking water contaminant. The BIL appropriation for the EC-SDC program is not withstanding the
underserved criterion in SDWA section 1459A. In other words, communities do not need to meet the
definition of underserved in SDWA section 1459A(a)(2) to be eligible for EC-SDC funding, though they
must meet the definition of "small" or "disadvantaged."
For the EC-SDC grant program, the terms "small" and "disadvantaged" are defined in Section
1459A(c)(2) of SDWA as a community:
"(A) that, under affordability criteria established by the State under section 1452(d)(3), is
determined by the State—
'(i) to be a disadvantaged community; or
'(ii) to be a community that may become a disadvantaged community as a result of
carrying out a project or activity under subsection (b); or
'(B) with a population of less than 10,000 individuals that the Administrator determines
does not have the capacity to incur debt sufficient to finance a project or activity under
subsection (b)."6
6 SDWA section 1459A(c)(2), 42 U.S.C. § 300j-19a(c)(2).
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States are best positioned and have the in-depth knowledge to identify the appropriate small
communities that lack the capacity to incur debt and can most benefit from this funding opportunity.
The appropriation for the EC-SDC program is authorized under Sections 1459A(a)-(j) to address
emerging contaminants. SDWA section 1459A(j) includes requirements for grants to States to address
contaminants:
"(j) STATE RESPONSE TO CONTAMINANTS. —
(1) IN GENERAL—The Administrator may, subject to the terms and conditions of this
section, issue a grant to a requesting State, on behalf of an underserved community,
so the State may assist in, or otherwise carry out, necessary and appropriate activities
related to a contaminant—
(A) that is determined by the State to—
(i) be present in, or likely to enter into, a public water system serving, or an
underground source of drinking water for, such underserved community; and
(ii) potentially present an imminent and substantial endangerment to the
health of persons; and
(B) with respect to which the State determines appropriate authorities have not
acted sufficiently to protect the health of such persons."7
ELIGIBLE APPLICANTS AND BENEFICIARIES
Funds will be awarded to states (the "eligible entity") based on the established allocation formula (see
ALLOCATION OF FUNDS). Eligible entities include the 50 states, the District of Columbia, Puerto Rico, the
U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. Consistent with this
definition, the term "state" will be used throughout this document to refer to all eligible entities.
States will develop workplans that focus on assistance to public water systems that serve small or
disadvantaged communities. Public water systems include existing privately- and publicly-owned
community water systems and non-profit non-community water systems, including systems utilizing
point of entry or residential central treatment.
In March 2024, in the FY 2024 Consolidated Appropriations Act, Congress included "owners of drinking
water wells that are not public water systems or connected to a public water system" as eligible
beneficiaries of FY 2024 funds awarded to states through grant programs under SDWA sections
1459A(a)-(j), which includes the EC-SDC grant program. The appropriations language states in relevant
part:
"Provided, That for fiscal year 2024, funds provided under subsections (a) through (j) of [Section
1459A of SDWA] may be used—
7 SDWA section 1459A(j), 42 U.S.C. § 300j-19a(j).
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(A) by a State to provide assistance to benefit one or more owners of drinking water
wells that are not public water systems or connected to a public water system for
necessary and appropriate activities related to a contaminant pursuant to subsection (j)
of such section of such Act; and
(B) to support a community described in subsection (c)(2) of such section of such Act" 8
ELIGIBILITY PROVISIONS
For a project or activity to be eligible for funding under the EC-SDC grant program, it must be otherwise
eligible for funding under SDWA sections 1459A(a) through (j), except that (g)(1) cost-sharing is not
required,9 and the primary purpose must be to address one or more emerging contaminants, including
PFAS, in drinking water. Other contaminants or deficiencies, including those that are subject to primary
or secondary drinking water regulations, may be addressed as a secondary purpose of a project. To the
extent there are sufficient projects, states should prioritize projects with the primary purpose of
addressing PFAS in drinking water systems or source water. To maximize public health protection, the
EPA also encourages states to address perchlorate and contaminants that have higher levels of
occurrence or potential health concerns.
If the EPA has set a maximum contaminant level (MCL) under the lational Primary Drinking Water
Regulations (NPDWR) for a contaminant, it is not an emerging contaminant, and a project whose
primary purpose is to address that contaminant is not eligible for funding, with the PFAS exception
noted below. For example, a project for which the primary purpose is to address arsenic or nitrate in
drinking water is not eligible because arsenic and nitrate are regulated under the NPDWRs. A project
with a primary purpose of addressing chlorpyrifos, which is not a regulated drinking water contaminant,
that would also address arsenic or nitrate contamination would be eligible. Contaminants that are listed
under any Drinking Water Contaminant Candidate List (CCL) and under the National Secondary Drinking
Water Regulations (NSDWR) are eligible for funding as a primary purpose funded project. National
Secondary Drinking Water Regulations are non-enforceable guidelines regarding contaminants that may
cause cosmetic effects (such as skin or tooth discoloration) or aesthetic effects (such as taste, odor, or
color) in drinking water. The EPA recommends secondary standards to water systems but does not
require systems to comply. However, some states may choose to adopt them as enforceable standards.
The EPA announced the final National Primary Drinking Water Regulation (NPDWR) for six PFAS on April
10th, 2024. Given stated congressional intent of this appropriation, PFAS-focused projects are still
eligible for funding under this appropriation for the EC-SDC grant program. More information on PFAS is
located here: https://www.epa.gov/pfas.
8 Consolidated Appropriations Act, 2024, P.L. 118-42, Division E, Title II, State and Tribal Assistance Grants,
paragraph (7), available at: https://www.congress.gov/bill/118th-congress/house-bill/4366/text.
9 SDWA section 1459A(g)(l); 42 U.S.C. § 300j-19a(g)(l).
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The evolving nature of contaminants, the regulatory requirement to produce water that meets multiple
primary and secondary standards, and the need to consider multiple contaminants in the planning,
design, and implementation of infrastructure improvements all support a holistic and comprehensive
approach to contaminants as the most efficient and cost-effective means of achieving the objectives of
SDWA section 1459A and its amendments. If projects are funded from multiple sources, states must
carefully track expenditures and only charge the EC-SDC grant award for costs supported by the EC-SDC
program funding. The same is true for any other source of federal financial assistance.
Costs to make drinking water system improvements are not eligible for EC-SDC funding unless they are
directly and reasonably related to the project to address emerging contaminants. For example, a project
to develop a new well to address emerging contaminant issues that is located a distance away from the
current treatment facility could include installing a transmission line to connect them. A project to
replace a water main, where the replacement is unrelated to an emerging contaminant, at a separate
location in the distribution system would not be eligible for funding.
Explanation of "primary" purpose: For the purposes of determining eligible projects, "primary" means
the components of the project that address emerging contaminant(s) exceed 50% of the total project
costs or level of effort (LOE). In addition, in the case that the costs or LOE attributable to the emerging
contaminant do not exceed 50% and the project components attributable to both emerging and other
contaminants are co-located, the primary purpose still can be considered as addressing emerging
contaminants provided that a preliminary engineering report, alternatives analysis, or similar
engineering document identifies the emerging contaminant-attributable activities as a preferred
method for addressing emerging contaminants.
Example: A water system has elevated levels ofPFAS and also has long struggled to maintain
arsenic levels below the MCL. Treatment is determined to be the best alternative for addressing
PFAS, and a treatment facility must be constructed. The system would like to install and add
arsenic treatment in the water system at the same time. The costs of constructing the facility and
installing both arsenic and PFAS treatment are eligible for funding, provided the costs or LOE
attributable to PFAS treatment exceed 50% of the project total. In the case that the costs and LOE
to address PFAS are not more than 50%, all costs can still be eligible provided that the selected
PFAS treatment components are identified as the preferred method of addressing PFAS. If the
arsenic treatment were to be constructed at a separate system or a different time, those costs
cannot exceed 49% of the total project cost.
When determining whether components of EC-SDC grant-funded projects are eligible for EC-SDC grant
funding, as long as the project component is integral to the EC purpose of the project, expenses related
to that component may be drawn from the EC-SDC grant funding.
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Eligible Uses and Activities
Activities eligible for EC-SDC funding: In accordance with the statutory eligibilities under Section
1459A(a)-(j) of SDWA10, these actions may include but are not limited to, the following categories for
addressing emerging contaminants:
• Scoping and identification
• Testing or sampling for baseline assessment11
• Research and testing
• Planning and design
• Treatment, including for underlying aquifers that are source water for public water systems
• Source
• Storage
• Water system restructuring, consolidation, or creation
• Providing households access to drinking water services
• Technical assistance
• Public communication, engagement, and education
A list of example activities that could be funded under each category can be found in Appendix [ for
further reference. These lists are not intended to represent all types of eligible activities. If a state
wishes to fund an activity not specifically listed, an explanation of how the activity addresses the critical
main functions the EC-SDC program under Section 1459A(a)-(j) of SDWA must be included in the
workplan (see SCOPE OF WORK (WORKPLAN)). Also note that a wide range of costs and expenditures
associated with an infrastructure construction project are eligible as part of a project budget. Contact
the EPA with any questions regarding the eligibility of proposed activities.
Technical assistance to develop EC projects is eligible: Technical assistance can be provided in several
ways. States are encouraged to use EC-SDC funds to provide direct technical assistance to water systems
serving small or disadvantaged communities. Funds may be used by states to directly assist systems,
subcontract with technical assistance providers, or provide subawards. The state can help identify
needs, develop projects, apply for funding, and design and implement projects. The EPA also offers
water technical assistance services, i.e., the A/aterTA initiative, which supports communities with
identifying water challenges, developing plans, building capacity, and developing application materials
to access water infrastructure funding.
Workforce development activities as part of EC projects are eligible: The grant program provides an
opportunity to support the workforce needed to accomplish the infrastructure investment through the
EC-SDC grant program funding. Eligible activities may include reasonable costs to support on-the-job
10 SDWA § 1459A(b)(2), 42 U.S.C. § 300j-19a(b)(2).
11 This includes the development of biochemical markers that complement the toxicity profile of these contaminants
and highlight the need for further research on ECs and their implications, and the regulations required to protect
human health, etc.
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training, apprenticeship, pre-apprenticeship, and youth training programs that open pathways to
employment. Examples of workforce activities can be found under Appendix C.
Ineligible Activities/Uses of Grant Funds
Consistent with the statutory provisions under SDWA section 1459A, funding for bottled water is not
eligible under the EC-SDC grant program. Examples of additional ineligible uses of grant funds are listed
below. Please note that this list is intended to be illustrative and is not all inclusive. Grant funding may
generally not be used for the following activities:
• Projects whose primary purpose is not to address emerging contaminants.
• Acquisition of land, easements, rights-of-way, and relocations necessary for the project
(prohibited by statute)12
• Operations and maintenance costs (prohibited by statute).13
• Lead service line replacement.
• Replacement of premise plumbing.
• Construction or rehabilitation of dams.
• PFAS buy-back or replacement programs.
• Activities needed primarily for fire protection.
• Activities needed primarily to serve future population growth.
• Activities that have received assistance from the tribal allotment for Indian Tribes and Alaska
Native Villages.
• Costs that are unallowable (e.g., lobbying and alcoholic beverages) under I CFR Part 200 Subpart
E - Cost Principles.
If a state wishes to fund an activity not specifically listed as ineligible, an explanation of how the activity
addresses the critical main functions of the EC-SDC program under Section 1459A(a)-(j) of SDWA must
be included in the workplan ( ;e SCOPE OF WORK (WORKPLAN)). Also note that a wide range of costs
and expenditures associated with an infrastructure construction project are eligible as part of a project
budget. Contact the EPA with any questions regarding the eligibility of proposed activities. Examples of
activities under these categories can be found in Xppendix D.
PRIVATE WELLS
In March 2024, Congress made a legislative change in the FY 2024 Consolidated Appropriations Act to
include "owners of drinking water wells that are not public water systems or connected to a public
12 SDWA section 1459A(g)(2), 42 U.S.C. § 300j-19a(g)(2).
13 SDWA section 1459A(g)(3), 42 U.S.C. § 300j-19a(g)(3). While operations and maintenance costs are ineligible
costs, water systems may wish to use Design-Build-Operate procurement approach to facilitate greater lifetime
project efficiencies. In such cases, the cost of operations must be clearly identifiable, and these costs are not
allowable under the EC-SDC program.
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water system", referred to as private wells as eligible beneficiaries of FY 2024 funds awarded to states
through grant programs under SDWA sections 1459A(a)-(j), which includes the EC-SDC grant program.
Accordingly, the FY 2024 funds (but not the FY 2022-2023 funding) may be used by states for eligible
activities that support these private wells. When states consider potential projects to support these
wells, the EPA encourages prioritizing beneficiaries that make less than the average household income
for the state. Activities funded must still focus on addressing emerging contaminants and PFAS. Example
eligibilities can be found in Category 10 of Appendix D in this document.
This change does not apply to the EC-SDC funds appropriated in FY 2022 and FY 2023. As enacted,
Sections 1459A(a)-(j) of the SDWA, do not allow the EPA to authorize grants to states to address
contaminants in communities with individual private wells, unless the purpose of the activity is
determining whether the individual private wells should be connected to an existing public water system
or create a new public water system. Section 1459A of SDWA does not authorize use of EC-SDC grant
funding to remediate contaminated aquifers, including treatment of individual wells, that do not impact
public water systems.
NOTICE OF INTENT
States that wish to receive EC-SDC grant program funding must submit a Letter of Intent (LOI) to the
Agency. The LOI should state the lead state agency/department charged with the state's oversight and
responsible for receipt of funds and actions pertaining to the grant program. The LOI must be addressed
to the EPA Administrator. It must be signed by the state governor, the director of the designated agency,
or other authorized official. It must certify one state agency designated to receive the funds with legal
and administrative authority to enter into a grant or cooperative agreement with the EPA. Upon receipt,
the EPA will consider the state agency designated by the governor as the lead agency for the state for
the purposes of the EC-SDC grant program.
If a state does not intend to request or accept the funding allocation for the EC-SDC grant program in a
given fiscal year, the state should indicate through correspondence this intention not to receive the
funding for the fiscal year cycle by the first quarter of the given federal fiscal year. Funds intended to be
allocated to a state that chooses not to participate will be reallocated to participating states as
described in ALLOCATION OF FUNDS.
The LOI can be submitted by email to WIINDrinkingWaterGrants@epa.gov. The EPA Office of Ground
Water and Drinking Water (OGWDW) will forward the letters of intent to participate to the appropriate
EPA Regional Office for review. Regions will work with states as necessary to resolve any identified
issues. See Appendix D. Sample Notice of Intent to Participate.
States that do not choose to participate in one year may submit a LOI in a subsequent fiscal year to
receive funds. States that have already submitted a LOI will not be asked to submit another in
subsequent years.
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ALLOCATION OF FUNDS
The appropriated funding focuses on rebuilding America's infrastructure and investing in communities
that have too often been left behind - from rural towns to struggling cities. The grant program presents
a unique opportunity to provide funding for these communities. Under the authority provided in the
Safe Drinking Water Act (SDWA) Section 1459A Assistance for Small or Disadvantaged Communities
program, the EPA is providing and prioritizing funding on an annual basis to eligible states and territories
for participation in the EC-SDC grant program. If all 50 states, the District of Columbia, and the five
qualifying territories participate in the Program, then each will be allocated funds based on a formula
that includes factors for population below poverty, small water systems, and known or likely occurrence
of emerging contaminants. All funding will be allocated accordingly and distributed to participating
entities, States and Territories.
If fewer than all states and territories participate, the formula will be applied to any remaining
unclaimed funds, and these funds will be reallocated to all participating states and territories. States
that do not request funds in one year may request funds in subsequent years.
APPLICATION PACKAGE AND SUBMISSION INFORMATION
States must apply to the EPA for an EC-SUDC grant. The EPA Regional offices are the primary points of
contact to approve workplans, process grant applications and award funding.
Application package: The application package must include the following forms:
Standard Form (SF) 424, Application for Federal Assistance
Standard Form (SF) 424A, Budget Information for Non-Construction Programs
EPA Form 5700-54, Key Contacts Form
EPA Form 4700-4, Pre-award Compliance Review
Project Narrative Attachment Form
Applicants should note there is additional guidance available through the Office of Grants and
Debarment that formalizes the definition and categorization of construction costs listed in an applicant's
budget for all EPA financial assistance programs. The associated documentation and guidance can be
found on the EPA's Office of Grants and Debarment under Interim General Budget Development
Guidance for Applicants and Recipients of EPA Financial Assistance.
Optional Submissions: Negotiated indirect cost rate agreement (as applicable)
Submission Instructions: Application packages must be submitted by deadline set by the EPA Region
each fiscal year cycle in which appropriations are made available for the grant program. EPA Regions will
communicate to states the instructions for submitting applications through Grants.gov
(www.grants.gov), including how to access the opportunity. Funding Opportunity Number: EPA-CEP-02,
Assistance Listing # 66.442.
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Because this is a non-competitive program, use , scroll to the middle of the
page, and click the red search for opportunity package button. Type in the funding opportunity number
EPA-CEP-02 at the prompt to pull up the opportunity on grants.gov.
SCOPE OF WORK (WORKPLAN)
When requesting funds under the EC-SDC grant program, states must submit a workplan detailing the
intended use of funds. A draft workplan should be submitted to the appropriate EPA Region for review
prior to submitting the final workplan (see STATE ACTIVITIES SELECTION). States are encouraged to
consider a phased approach to identifying, planning, and implementation of eligible projects,
particularly to ensure that all eligible communities are evaluated for eligible work and that lack of
previous planning or evaluation does not place otherwise eligible systems at a disadvantage. States may
include their reasonable program administration costs, which must be clearly identified and supported.
These reasonable costs may include costs incurred by other state programs that support the drinking
water program in these efforts, such as community engagement, hazardous waste management and
cleanup programs (see AWARD ADMINISTRATION INFORMATION. Funding to Other State Agencies ).
States should consider the following parameters when developing the scope of work:
Project and Budget Period: It is anticipated that project/budget periods will be no more than six
years. The EPA can modify workplans, adjust budgets, and extend the period of performance for
grants to address impacts or delays, consistent with applicable law relating to the availability of
appropriations or otherwise, 2 CFR 200.308, and the General Term and Condition for recipients
if necessary.
Eligible Activities: States will use funding for eligible activities in small or disadvantaged
communities (see :LIGIBLE ACTIVITIES). States are encouraged to include public engagement
and communication activities with all projects. The communities benefiting from assistance
must meet the statutory definition of either small with insufficient capacity or disadvantaged,
with consideration for those communities with the greatest needs (see TATUTORY
AUTHORITY). As relevant, the determination of small systems' lack of capacity will be reviewed
by EPA.
The EPA encourages participating states to include in their workplan the identification of the
small or disadvantaged communities (SDCs) that are eligible for assistance and have plans for
projects/activities eligible for funding. In addition to identifying the community, the state should
provide sufficient detail in the workplan to support the prioritization of the communities with
the greatest needs. States are to describe the proposed infrastructure project work and
associated eligible activities such as planning, testing, and/or community engagement. States
will work with the EPA Regional staff to determine the activities to be funded, provide sufficient
detail in the workplan as to how that determination was made (see STATE ACTIVITIES
SELECTION) and develop the timeline for each phase of the project through completion.
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The EPA recognizes that states' EC needs vary and is presenting this process to provide a general
outline of the steps to be followed for state application submissions. Each state will submit a
draft workplan to its respective EPA Region. The EPA must be able to determine from the draft
workplans that activities conform to all applicable requirements of the EC-SDC grant program.
The EPA will work with the state to ensure that the final workplan: (1) is designed to help
achieve the goals and objectives of the grant program; (2) includes costs that are eligible,
reasonable, necessary, allowable, allocable, and consistent with the grant program; and (3)
clearly identifies the specific outcomes, outputs, and other results that are linked to funding and
includes target dates and milestones for achieving them.
Reporting metrics: The main goal of the EC grant funding is for states to provide subawards to
public water systems in small or disadvantaged communities to address emerging contaminants,
including PFAS.
For the purposes of this Program, the following indicators will be used and must be reported to
EPA, including:
• Number and location of small or disadvantaged communities receiving funds.
• Total dollar amount of assistance to small or disadvantaged communities.
• Number and location of impacted public water systems.
• Number of systems evaluated for EC detections of concern.
• Number of treatment projects or activities targeting emerging contaminants reduction.
Grant Programmatic Priorities: The principal objective of the program is to enable water
systems serving small or disadvantaged communities to effectively address emerging
contaminants in drinking and/or source water, and to minimize potential public health risks
from emerging contaminants in the future. For example, a project for which the primary
purpose is to address an emerging contaminant in a water system through treatment, and also
addresses the system's compliance arsenic issue, may be eligible for funding. In this case, a
water system will be able to achieve and maintain compliance with SDWA. States are required
to use project funds to benefit small or disadvantaged communities, as defined in SDWA section
1459A(c).
Strategic Plan Linkage, Anticipated Outputs and Outcomes: Pursuant to Section 6a of iPA
Order 5700.7. Environmental Results under EPA Assistance Agreements, recipients must link
proposed assistance agreement workplans with the Agency's Strategic Plan. The EPA also
requires that workplans adequately describe environmental outputs and outcomes to be
achieved under assistance agreements:
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Linkage to EPA's Strategic Plan: The activities to be funded must support the EPA's FY 2022 -
2026 Strategic Plan. Funding will primarily support the following:
Goal 5: "Ensure Clean and Safe Water for All Communities/' Objective 5.1 "Ensure Safe Drinking
Water and Reliable Water Infrastructure."
Funding may also support other EPA FY 2022 - 2026 Strategic Plan, including:
Goal 1: "Tackle the Climate Crisis/' Objective 1.1 "Reduce Emissions that Cause Climate Change/'
and Objective 1.2 "Accelerate Resilience and Adaptation to Climate Change Impacts."
Goal 2: "Take Decisive Action to Advance Environmental Justice and Civil Rights/' Objective 2.1
"Promote Environmental Justice and Civil Rights at the Federal, Tribal, State, and Local Levels,"
and Objective 2.2 "Embed Environmental Justice and Civil Rights into EPA's Programs, Policies,
and Activities."
Goal 6: "Safeguard and Revitalize Communities," Objective 6.1 "Clean Up and Restore Land for
Productive Uses and Healthy Communities," Objective 6.3 "Prepare for and Respond to
Environmental Emergencies."
States must explain in their workplan how their projects will further these objectives. States may
address these linkages by describing the overall state process for providing technical assistance,
project review and ranking, and making funding decisions that furthers these objectives. A state
may request technical assistance from the EPA to develop processes and technical assistance
offerings in a manner that supports these strategic plan objectives.
States must also include specific statements describing the expected public health and/or
environmental results of proposed activities in terms of well-defined outputs and, to the
maximum extent practicable, well-defined outcomes that will demonstrate how activities will
contribute to program priorities. These should include target dates and milestones.
Outputs: The term "output" means an environmental activity, effort, and/or associated work
product related to an environmental goal and objective that will be produced or provided over a
period of time or by a specified date. Outputs may be quantitative or qualitative but must be
measurable during an assistance agreement funding period.
Expected outputs from the activities to be funded under this announcement may include, but
are not limited to, the following:
• Number of communities evaluated for meeting disadvantaged criteria.
• Number of small communities (population <10,000) evaluated for capacity to complete a
project in the absence of funding assistance.
• Number of water systems tested for presence of emerging contaminants and the
population served.
• Number of households tested for a drinking water contaminant and identified for action
to address contaminant concerns.
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• Number of preliminary engineering reports conducted and the population served by
systems for which reports are prepared.
• Number of water systems provided technical assistance and the population served.
• Number of water systems restructured or consolidated with other water systems and the
population served.
• Number of plans designed and the population served by the systems for which they are
prepared.
• Number of public outreach and engagement resources created and meetings/workshops
conducted.
• Number of new wells developed and the population served.
• Number of operators trained to use new equipment/technology and the population
served.
Outcomes: The term "outcome" means the result, effect, or consequence that will occur from
carrying out an environmental program or activity that is related to an environmental or
programmatic goal or objective. Outcomes may be qualitative and environmental, behavioral,
health-related, or programmatic in nature, but must also be quantitative. Outcomes may not
necessarily be achievable within an assistance agreement funding period.
Expected outcomes from the activities to be funded under this announcement may include, but
are not limited to, the following:
• Reduction in the number of public water systems serving small or disadvantaged
communities that face real or potential public health threats due to emerging
contaminants.
• Increased technical, managerial, and financial capacity of public water systems serving
small or disadvantaged communities and the population served.
• Reduction in the population that is served by a water system threatened by emerging
contaminants and that benefit from the Federal investments in drinking water
infrastructure improvements to respective communities.
• Increase in community engagement and trust among small and disadvantaged
communities.
• Improved public awareness of threats posed by emerging and regulated contaminants.
For the purposes of reporting, the outputs and outcomes will be used to identify the
performance reporting measures, such as the total funds awarded annually to address PFAS or
emerging contaminants. A regular, frequent reporting and monitoring schedule is to ensure that
intended community impact and milestone information will be added no less than semiannually
to reporting required through the terms and conditions of the grant award.
Expeditious Commitments and Expenditures: Funds must be committed and expended in an
expeditious and timely manner, consistent with law, regulation, and guidance, including the
Uniform Grant Guidana (2 CFR Part 200). States must make commitments to proceed with
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workplan activities expeditiously upon receiving the award. States must draw down (expend)
funds in a timely manner and continue to demonstrate progress in accordance with the
milestone schedule for the implementation and completion of projects.
STATE ACTIVITIES SELECTION
The EPA recognizes that all states are different and is presenting this process to provide a general
outline of the steps to be followed for state submissions.
States are encouraged to submit a draft workplan with a list of communities and projects eligible for
funding to their respective EPA Region. The EPA Regions must be able to determine from the draft
workplans that activities conform to all applicable requirements of the EC-SDC grant program. The EPA
Region will work with the state to ensure that the final workplan: (1) includes projects that serve small
or disadvantaged communities, as defined in SDWA section 1459A(c); (2) is designed to help achieve the
goals and objectives of the grant program; (3) includes costs that are eligible, reasonable, necessary,
allowable, and consistent with the grant program; and (4) clearly identifies the specific outcomes,
outputs, and other results that are linked to funding and includes target dates and milestones for
achieving them.
States are strongly encouraged to begin their internal process as early as possible to identify the extent
of need in small or disadvantaged communities for activities to address emerging contaminants and to
identify multiple potential projects, in case one or more projects are ineligible. State hazardous waste
management and cleanup programs may be able to provide valuable information about potential
sources of emerging contaminants. States are also encouraged, when feasible, to discuss proposed
activities with their EPA Region prior to submission of the draft workplan and SDC List so that the
subsequent submission can be reviewed and approved quickly. The EPA encourages states to submit
draft workplans and SDC lists to the EPA Region as soon as possible if they believe that there are
complexities to resolve (e.g., whether a proposed activity is legally fundable or meets mandatory criteria
established by statute).
Prior to beginning the award process, the EPA Regions will discuss with each state a schedule to ensure
timely award of the grant.
COST SHARING REQUIREMENTS
There is no cost share requirement for the EC-SDC grant program.
AWARD ADMINISTRATION INFORMATION
Regulatory Requirements for Grant Assistance Agreements: This award is subject to the regulations of
the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards;
Title 2 CFR, Parts 200 and 1500. A searchable list of policies, regulations, and guidance is available.
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Terms and Conditions: General administrative and programmatic terms and conditions applicable to all
of the EPA's assistance agreements are applicable to this program. The EPA Headquarters will provide
the EPA Regions with an additional list of terms and conditions that will also be applicable to this
program. The EPA Regions will ensure that all applicable terms and conditions are included in the grant
agreements.
Funding to Subrecipients: Funding may be used to provide subawards of financial assistance provided
the recipient complies with applicable requirements for subawards including those contained in 2 CFR
Part 200 and EPA's Subaward Policy. Responses to frequently asked questions are available at Subaward
Policy Additional Resources.
Funding to Other State Agencies: The EPA's general policy, based on the definitions of the terms in 2
j including, "Non-federal entity/' "Pass-through entity," "Recipient," and "State," is that the
state itself is the legal entity that receives the funds even if one particular component of the state is
named in the assistance agreement as the recipient. Transfers of funds between state agencies to
perform a particular financial assistance agreement would, therefore, be governed by state law.
Additionally, 2 CFR 200.417 "Interagency Services" contemplates situations in which one agency
provides services to another agency within the same unit of government as a direct cost of performing
EPA assistance agreement.
If utilizing interagency service agreements between state agencies under 2 CFR §200.417, the
expenditures the state agency makes to carry out the Interagency Service Agreement should be shown
in the corresponding direct cost categories (Personnel, Travel, Contractual etc.). If state law
characterizes agreements under which one state agency provides services to another state agency as a
procurement contract, then the costs would be placed in the contractual category. In interagency
service situations, 2 CFR 200.417 provides the state may charge a pro-rated share of indirect costs for
the service, or 10% of the . .direct salary and wage cost of providing the service (excluding overtime,
shift premiums, and fringe benefits) may be used in lieu of determining the actual indirect costs of the
service." Centralized services included in central service cost allocation plans subject to 2 CFR Part 200.
Appendix V are accounted for separately.
There may be situations in which state law provides that state agencies or instrumentalities are legally
separate for the purposes of financial transactions between them or when state financial management
policies for Federal assistance agreements require separate instruments for accounting purposes (e.g.,
due to differences in indirect cost rates). In those situations, a state may characterize appropriate
funding transfers as subawards. Note, however, that if one state agency provides a subaward to another
state agency, the state agency acting as the passthrough entity must comply with applicable provisions
of 2 CFR Part 200 (including ! CFR 200.33 ), the National Term and Condition for Subawards in the EPA's
, and the EPA Subaward Policy unless EPA provides an exception. The
aggregate cost estimates for subawards to other state agencies or instrumentalities should be included
as line items in the "Other" budget category.
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Procurements: When procuring property and services under a Federal award, a state must follow the
same policies and procedures it uses for procurements from its non-Federal funds, as described in 2 CFR
200.317. The state will comply with 2 CFR 200.32: Procurement of Recovered Materials and ensure that
every purchase order or other contract includes any clauses required by section 2 CFR 200.327 Contract
provisions, as described in Appendix II of 2 CFR Part 200. All other non-Federal entities, including
subrecipients of a state (other than another state agency), will follow all of the Procurement Standards
described in 2 CFR 200.318-200.327. See also EPA's Best Practice Guide for Procuring Services. Supplies,
and Equipment under EPA Assistance Agreements.
Performance Partnership Grants: Funds awarded under this program are not eligible for inclusion with
the state's Performance Partnership Grants.
Expenses Incurred Prior to the Project Period: As described in I CFR 200.458 and as authorized by I CFR
200.308(e)(1) and , pre-award costs incurred prior to the effective date of the federal
award or subaward that are directly pursuant to the negotiation and in anticipation of the Federal
award, where such costs are necessary for the efficient and timely performance of the scope of work,
are allowable to the extent that they meet all other eligibility requirements, with the written approval
and requirements set forth by the EPA. Pre-award costs are generally acceptable for time periods within
the 90 days of the award date. The EPA defines pre-award costs as costs incurred prior to the award
date, but on or after the start date of the budget period and period of performance as those terms are
defined in 2 CFR 200.1. Under the EPA's interpretation of 2 CFR 200.308(e)(1) and 2 CFR 1500.9 all
eligible costs must be incurred during the budget/ performance period as defined by the start and end
date shown on the grant award to receive the EPA's approval. This interpretation is implemented in a
grant-specific Term and Condition entitled "Pre-award Costs" which must be included in all awards when
the applicant has incurred the EPA's approved costs prior to award. If pre-award costs are sought for
periods greater than 90 days, the EPA's approval will be required. All costs incurred before the Federal
awarding agency makes the Federal award are at the recipient's risk {i.e., the Federal awarding agency is
not required to reimburse such costs if for any reason the recipient does not receive a Federal award or
if the Federal award is less than anticipated and inadequate to cover such costs).
Quality Assurance/Quality Control: Activities that include the collection of environmental data, such as
household water quality testing, will need to comply with the Quality Assurance/Quality Control
requirements in 2 CFR 1500.12. Environmental data are any measurements or information that describe
environmental processes, location, or conditions; ecological or health effects and consequences; or the
performance of environmental technology. States should allow sufficient time and resources for this
process. The EPA can assist states in determining whether QA/QC is required for a proposed project and,
if required, the appropriate QA/QC practices needed. Additional information on implementing quality
assurance requirements is available: https://www.epa.gov/grants/implementation-quality-assurance-
requirements-organizations-receiving-epa-financial
Application of Federal Cross-Cutting Authorities (Cross-Cutters): A number of federal laws, executive
orders, and government-wide policies apply by their own terms to projects and activities receiving
federal financial assistance, regardless of whether the statute authorizing the assistance makes them
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applicable. All programs, projects, and activities for which a state provides assistance are subject to the
following federal anti-discrimination laws: Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d et seq.;
section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. 794; and the Age Discrimination Act
of 1975, as amended, 42 U.S.C. 6102. A state is responsible for ensuring that assistance recipients
comply with the requirements of crosscutters, see Appendix A. Other Applicable Provisions. See also
EPA Information on Subaward Cross-Cutter Requirements.
Participant Support Costs: 2 CFR 200.456 requires participant support costs to be documented in a
financial assistance recipient's or subrecipient's policies, and to be treated consistently across grants.
The transfer of funds budgeted for participant support costs to other budget categories requires prior
written approval from EPA (2 CFR 200.308(f)(5)). Recipients or subrecipients generally must exclude
participant support costs from Modified Total Direct Costs (MTDC) for distribution of indirect costs. The
Agency advises recipients, subrecipients, and program beneficiaries to consult with their tax advisers,
the U.S. Internal Revenue Service, or State, Tribal, and/or local tax authorities regarding the taxability of
participant support costs.
Reporting Requirements: Entities receiving assistance are required to provide semiannual and annual
performance progress reports, including grant fund reporting elements and summaries of the project
activity and status of outputs during the reporting period. EPA will provide recipients with the criteria
for reporting and the platform in which the reporting will be submitted. Reports must adhere to the
Performance and Financial Monitoring and Reporting requirements as outlined in the Office of
Management and Budget's Uniform Grant Guidance ( CFR Part 20 ). The reporting period will be
identified in the terms and conditions of the assistance agreements. Further, in accordance with 2 CFR
, the recipient agrees to report on key project characteristics, milestones, and
environmental/public health protection results in the following areas: 1) achievement of the outputs
and outcomes established in the workplan; 2) the reasons for delays if established outputs or outcomes
were not met; and 3) any additional pertinent information on environmental/public health results.
Information provided in the reports helps monitor the state's progress with implementing their project
and also directly supports the EC-SDC grant program by highlighting measurable accomplishments to the
public and Congress.
Semiannual Reports: The semiannual report will reflect information pertaining to the state and its
agency with oversight and the work performed to meet the objectives of the program and the grant
activity during the period of performance. Reporting must provide a comprehensive review of the small
or disadvantaged communities receiving assistance; the type of assistance provided / activities
performed; and the breakdown of financial and direct grant assistance which subsidized the activities
performed during the reporting cycle. Participating states and territories should coordinate with the EPA
Regional offices on reporting elements after applications have been approved for awards. Required
annual reporting components are included in the semiannual reports and states will not be required to
submit a separate annual report. Reports are due 30 days after the end of the reporting period.
Final Project Reports: The final report must include: a summary of the project or activity, outputs and
outcomes achieved, expenditures, lessons learned, and any other resources leveraged during the
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project and how they were used. The final report shall be submitted to the EPA, per 2 CFR 200.329
within 120 calendar days of the project/budget period end date.
Reporting requirements will be made available to grantees 45 days after grant award packages are
complete. Reporting criteria may be subject to annual revisions.
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APPENDIX A. OTHER APPLICABLE PROVISIONS
Equivalency: The amended SDWA's supplemental appropriations are federal funds. Projects funded
through the EC-SDC program cannot be used to meet the equivalency requirements of other federal
programs such as DWSRF.
Build America, Buy America Act: The Build America, Buy America (BABA) Act, which provides domestic
sourcing requirements for Federal financial assistance programs for infrastructure pertains to the EC-
SDC program.14 In addition to domestic iron and steel, it requires the use of domestic manufactured
products and construction materials to be used in any infrastructure project receiving federal financial,
unless a waiver applies.
Reporting: Transparency and consistency are of the utmost importance to ensure that the funds are
being used effectively and efficiently. States will use the EPA's preferred data platform to report key
project characteristics and milestone information no less than twice a year. Additional reporting will be
required through the terms and conditions of the grant award.
Federal Funding Accountability and Transparency Act: The Federal Funding Accountability and
Transparency Act (FFATA) of 2010 requires the EC-SDC Program to report on recipients that received
federal dollars in the FFATA Subaward Reporting System (/vww.fsrs.gov). FFATA reporting must exactly
equal the grant amount.
Federal Flood Risk Management Standards: On July 11, 2024, FEMA published a Final Rule and Policy to
implement the Federal Flood Risk Management Standard, which addresses increased flood risk. This
rule is designed to make communities more resilient and help reduce the damage caused by both
current and future flooding. The Final Rule and FEMA policy was effective on Sept. 9, 2024. Information
about the FFRMS is available on the Federal Emergency Management Agency's website. The FFRMS
applies to actions where federal funds are used for new construction, substantial improvement (i.e.,
projects worth more than 50% of the market value or replacement cost of the facility), or to address
substantial damage to structures and facilities. If a potential grant recipient requires assistance with
evaluating their water system or project with respect to this new standard, they are to reach out to their
respective programmatic region for additional resources on Floodplain Management or use EPA's tools
and resources available, including several that would assist with utilizing the climate-informed science
approach (https://www.epa.gov/crwu).
Environmental Reviews: Consistent with the procedural requirements of the National Environmental
Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq., as implemented by the Council on Environmental
Quality (CEQ) Regulations (40 CFR Parts 1500 through 1508), and the EPA's NEPA Regulations (40 CFR
Part 6), grant recipients may be required to conduct environmental reviews. The EPA's voluntary NEPA
policy applies only to projects implemented by the EPA or under an EPA award. Subawards to other
14 BIL, P.L 117-58, §§ 70901-52.
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entities are not subject to NEPA requirements and therefore, EPA's voluntary NEPA policy does not
apply to projects implemented under subawards.
Environmental Justice and Federal Civil Rights Responsibilities, Including Title VI of the Civil Rights Act
of 1964: In 1994, Executive Order 1289815 was issued to direct Federal agencies to incorporate achieving
environmental justice into their mission. The Presidential Memorandum16 accompanying that Executive
Order required in part, that consistent with Title VI of the Civil Rights Act of 1964, each Federal agency
"...ensure that all programs or activities receiving Federal financial assistance that affect human health
or the environment do not directly, or through contractual or other arrangements, use criteria,
methods, or practices that discriminate on the basis of race, color, or national origin."
The EPA has a responsibility to ensure that recipients and subrecipients of federal financial assistance
from the EPA comply with federal civil rights laws that prohibit discrimination on the basis of race, color,
national origin (including limited English proficiency), disability, sex and age, including Title VI of the Civil
Rights Act of 1964.15
The EPA's implementing regulation generally prohibits discrimination in any programs, activities and
services receiving federal financial assistance. 40 CFR § 7.30. In addition, the EPA's implementing
regulations at 40 CFR § 7.35, states that programs or activities receiving the EPA's assistance "shall not
directly or through contractual, licensing, or other arrangements on the basis of race, color, or national
origin...":
Subject a person to segregation or separate treatment;
Deny a person or group the opportunity to participate as members of any planning or advisory body;
Restrict a person in any way in the enjoyment of any advantage or privilege enjoyed by others
receiving any service, aid, or benefit provided by the program;
Use criteria or methods of administration "which have the effect of subjecting individuals to
discrimination;" or
Choose a site or location of a facility with "the purpose or effect of excluding individuals from,
denying them the benefits of, or subjecting them to discrimination," among other things.
The EPA's nondiscrimination regulation in 40 CFR Parts 5 and 7 also contain longstanding procedural
requirements applicable to applicants for and recipients (including sub-recipients) of EPA financial
assistance.17 These requirements include having a notice of nondiscrimination, nondiscrimination
coordinator, grievance procedures, a process for collecting and maintaining nondiscrimination
compliance information, and pursuant to Title VI and the Rehabilitation Act of 1973, developing policies
and procedures for ensuring meaningful access to programs and activities for individuals with limited-
15 Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-
Income Populations, 59 FR 7629, February 16,1994.
16 Presidential Memorandun on Executive Order for Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations (pdf).
17 EPA's nondiscrimination regulation at 40 CFR Parts 5 and 7 requires recipients to establish and implement their
own nondiscrimination programs. See CFR §§ 7.80-7.100.
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English proficiency and individuals with disabilities. In addition, recipients' public participation processes
must also be implemented consistent with the federal civil rights laws.18
The EPA intends to carefully evaluate the implementation of the amended SDWA SRF funding to ensure
compliance with civil rights laws by recipients of the EPA's funding and to confirm no community is
excluded from receiving or denied benefit of SRF funding based on race, color, national origin (including
limited English proficiency), age, disability, or sex. The EPA expects the state to review program activities
to ensure compliance with Title VI of the Civil Rights Act of 1964. Further, financial award agreements
and contracts must include appropriate Title VI nondiscrimination language.
For more information about the federal civil rights laws enforced by the EPA, including Title VI, please
visit: https://www.epa.gov/ocr/title-vi-laws-and-regulations and https://www.epa.gov/ogc/external-
civil-rights-compliance-office-title-vi.
18 See Title VI, 42 U.S.C. 2000(d) et seqSection 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 794;
Lau v. Nichols, 414 U.S. 563, 568-69 (1974) (finding that the government properly required language services to be
provided under a recipient's Title VI obligations not to discriminate based on national origin); 40 CFR § 7.35(a). See
also U.S. EPA, Guidance to Environmental Protection Agency Financial Assistance Recipients Regarding Title VI
Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons. 69 FR 35602 (June
25, 2004) (available at https://www.epa.gov/sites/production/files/2020-
02/documents/title vi lep guidance for epa recipients 2004.06.25.pdf); U.S. EPA, Title VI Public Involvement
Guidance for EPA Assistance Recipients Administering Environmental Permitting Programs, 71 FR 14207 (March 21,
2006) (available at https://www.epa.gov/sites/production/files/2020-
02/documents/title vi public involvement guidance for epa recipients 2006.03.21.pdf); U.S. EPA, Procedural
Safeguards Checklist for Recipients, at ittps://www.epa.gov/sites/production/files/2020-
02/documents/procedural safeguards checklist for recipients 2020.01.pdf (rev. Jan. 2020) (which provides a
more detailed explanation of nondiscrimination obligations and best practices); U.S. EPA, Disability
Nondiscrimination Plan Sample, at https://www.epa.gov/sites/production/files/2020-
02/documents/disabilitv nondiscrimination plan sample for recipients 2020.01.pdf (2017).
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Additional cross-cutting federal authorities:
Environmental Authorities
Archeological and Historic Preservation Act, 16 U.S.C. 469 et seq
Clean Air Act, 42 U.S.C. 7401 et seq.
Clean Water Act, 33 U.S.C. 1251 et seq.
Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq.
Coastal Zone Management Act, 16 U.S.C. 1451 et seq.
Endangered Species Act, 16 U.S.C. 1531 et seq.
Environmental Justice, Executive Order 12898
Revitalizing Our Nation's Commitment to Environmental Justice for All, Executive Order 14096
Advancing Racial Equity and Support for Underserved Communities Through the Federal
Government, Executive Order 13985
Tackling the Climate Crisis at Home and Abroad, Executive Order 14008
Flood Plain Management, Executive Order 11988, as amended by Executive Orders 12148 and
13690
Protection of Wetlands, Executive Order 11990 as amended by Executive Order 12608
Farmland Protection Policy Act, 7 U.S.C. 4201 et seq.
Fish and Wildlife Coordination Act, 16 U.S.C. 661 et seq.
Magnuson-Stevens Fishery Conservation and Management Act, 16 U.S.C. 1801 et seq.
National Historic Preservation Act, 54 U.S.C. 300101 et seq.
Safe Drinking Water Act, 42 U.S.C. 300f et seq
Wild and Scenic Rivers Act, 16 U.S.C. 1271 et seq.
Economic and Miscellaneous Authorities
Debarment and Suspension, Executive Order 12549, 2 CFR part 180, 2 CFR part 1532
Intergovernmental Review, Executive Order 12372, 40 CFR Part 29
Drug-Free Workplace Act, 41 U.S.C. 8101 et seq., 2 CFR part 1536
New Restrictions on Lobbying, 40 CFR Part 34
Prohibitions relating to violations of the Clean Water Act or Clean Air Act with respect to Federal
contracts, grants, or loans under Section 306 of the Clean Air Act and Section 508 of the Clean
Water Act, and Executive Order 11738
Uniform Relocation and Real Property Acquisition Policies Act, 42 U.S.C 4601 et seq., 40 CFR Part
4, 49 CFR Part 24
Buy America, Build America Act, Pub. L. No. 117-58, §§ 70901-52, 2 CFR part 184
Civil Rights, Nondiscrimination, Equal Employment Opportunity Authorities
Age Discrimination Act, 42 U.S.C. 6102 et seq., 40 CFR part 7
Equal Employment Opportunity, Executive Order 11246
Section 13 of the Clean Water Act, 33 U.S.C. 1251, 40 CFR part 7Section 504 of the Rehabilitation
Act, 29 U.S.C. 794, 40 CFR part 7Title VI of the Civil Rights Act, 42 U.S.C. 2000d et seq., 40 CFR
part 7
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Participation by Disadvantaged Business Enterprises in Procurement Under Environmental
Protection Agency (EPA) Financial Assistance Agreement
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APPENDIX B. SUMMARY OF KEY WORKPLAN ELEMENTS
A complete workplan must include the elements described below.
Section 1. Project Summary and Overall Approach
ACTIVITIES: A description of activities to be funded, as described in Section V. ELIGIBLE ACTIVITIES,
including a discussion of how small/disadvantaged communities are identified, the proposed activities
are necessary for a public water system and/or state to address emerging contaminants, other
contaminants, and/or provides household water quality testing. The activities described in the workplan
must fund projects and activities that benefit small and/or disadvantaged communities, as described in
Section III. STATUTORY AUTHORITY. This section also includes the SDC List, as described in Section IX.
SCOPE OF WORK.
States wishing to request funds to develop their SDC List should state so clearly and describe their plan
for its development. States that do not have a comprehensive list of the emerging contaminant-related
needs of all systems serving small or disadvantaged communities should include in their workplan
efforts to further develop their SDC List, in addition to any specific projects or activities they may wish to
undertake.
ROLES AND RESPONSIBILITIES: A discussion of the roles and responsibilities of the state and any other
project partners, contractors, or subrecipients.
TIMELINE AND MILESTONES: A detailed timeline for the project activities, including milestones for
specific tasks. A workplan may cover multiple years.
Section 2. Programmatic Priorities and Strategic Plan Goals
Clearly state how the activities described support the grant programmatic priorities and EPA Strategic
Plan goals as described in Section IX. SCOPE OF WORK.
Section 3. Environmental Results-Outputs and Outcomes
Clearly describe and discuss the anticipated outputs and outcomes of the project/activities, as described
in Section IX. SCOPE OF WORK.
Section 4. Budget Narrative
Detailed description of the budget, including estimated funding amounts for each component/task.
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APPENDIX C. EXAMPLES OF WORKFORCE ACTIVITIES ELIGIBLE FOR FUNDING
Workforce development activities as part of EC projects are eligible. Workforce development activities
targeted towards the residents of the small or disadvantaged communities in which emerging
contaminant projects are funded are especially encouraged. Some examples are as follows:
• Water System A receives funds to install a new treatment system to address PFAS, with which
their operator is unfamiliar. They may use funds to train their operator(s) in the operation of the
system.
• Company B may be contracted to conduct testing and research to identify the presence of an
emerging contaminant and the extent of contamination. As part of their funded work, they may
train an apprentice in the methods and practices necessary to complete the work, or they may
host a class from a local technical training program to discuss the project and practices. The
added costs associated with apprentice training or introduced inefficiencies from hosting a class
are eligible for funding.
• Company C may be contracted to install a new treatment system to address an emerging
contaminant. They may train a new employee on the methods and skills required necessary to
perform this work.
• Water System D receives funds to develop a new source and pump station in order to address an
emerging contaminant of concern. They previously had one certified operator, but operational
requirements now make it necessary to have two operators. They may use a portion of funds to
cover the training and certification of a local resident to be a new operator.
• State E uses a portion of its grant funds to host a water careers training event at a high school or
community college serving the community that is receiving funds to complete the EC-SDC project.
States and PWSs are encouraged to think creatively about how projects may build the size, capability,
and diversity of the water workforce. Contact the relevant EPA region for questions of the eligibility of
specific workforce-supportive project elements.
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APPENDIX D. EXAMPLES OF CATEGORY ACTIVITIES
The following lists include examples of activities that could be funded under each category. These lists
are not intended to represent all types of activities.
Category 1 -Research and Testing*
Example Activities
• Research and investigations to identify the presence, source, or extent of emerging
contaminant contamination in water systems or source water, including:
o Monitoring and testing (non-routine),
o Modeling and surveys
• Direct technical assistance to public water systems (of any size) and respective source water
resources with emerging contaminants and treatment problems which could lead to requests
for grant funding.
• PFAS and other emerging contaminants project pre-development activities (technical and
engineering expert engagement and planning, partnership development with community-
based organizations that have experience conducting community outreach).
• Provisions to provide household water quality testing, including testing for unregulated
contaminants.
• Technical assistance for eligible systems to diagnose emerging contaminants problems at their
water systems.
• Post-remediation testing of water system to verify whether contaminant(s) are still present
after removal actions have been completed.
• Supplying water test kits and instructions to households.
• Upgrading Supervisory Control and Data Acquisition (SCADA) system to aid with the detection
of emerging contaminants.
• Pilot testing for treatment alternatives.
• Conducting initial, special (non-routine/non-compliance) testing to establish a baseline
understanding of a contaminant of concern or operation of newly-installed technology.
• Purchase of lab equipment and materials, including equipment that is shared/rotated among
public water systems, is an eligible capital expense to fully assess the potential for emerging
contaminants impacting the public water system and/or source.
*Research and testing activities do not need to find emerging contaminants to be eligible. Efforts
undertaken to determine whether emerging contaminants are present are eligible regardless of the
findings.
Category 2 - Planning and Design to Address Emerging Contaminant(s)
Example Activities
• Developing emerging contaminant action plans
• Preliminary engineering reports
• Alternatives analyses
• Preliminary and final design
• Climate and cybersecurity risk assessment to address gaps that may increase levels of
emerging contaminant exposure due to the prevalence of such actions as extreme weather
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Category 2 - Planning and Design to Address Emerging Contaminant(s)
events or public water system interruptions that may cause unintended threats to source
waters and/or water treatment systems.
• Energy efficiency analyses
• Source water protection plans and plan updates
• Environmental and archaeological review, including the costs to hire a cultural resources
management firm if required based upon archaeological or historic issues discovered during
the environmental review process
• Capacity building, administrative support, technical assistance, training, outreach,
reports/studies, tools, and other eligible activities
• Permit fees
Category 3 - Treatment of Emerging Contaminant(s)
Example Activities
• Build new treatment facilities with emerging contaminant removal capability.
• Upgrade existing treatment facilities to add new treatment processes such as activated
carbon, ion exchange, and reverse osmosis.
• Treatment or protection measures against emerging contaminants in source water.
• Development of a new source (i.e., new/replacement well or intake for a public water system)
that addresses an emerging contaminant issue.
Category 4 - Source Water Activities Related to Emerging Contaminant(s)
Example Activities
• Source water protection planning activities, including the development or update of source water
protection assessments and plans to address emerging contaminants, development of GIS layers
for source water assessments, or modeling the fate and transport of ECs within source waters
and/or wellhead protection/time of travel zones.
• Funding state staff or technical assistance providers (e.g., circuit riders) to implement source
water protection planning and activities focused on emerging contaminants.
• Investigations to identify the presence, source, or extent of emerging contaminant in source
waters, including: monitoring (non-routine/non-compliance), modeling, occurrence predictive
modeling, surveys, and testing (non-routine/non-compliance).
• Conducting initial, special (non-routine/non-compliance) monitoring to establish a baseline
understanding of source water ECs or effectiveness of new technology for protection of source
waters from ECs; this can include installing new monitoring wells.
• Purchase of lab equipment and materials, including, but not limited to, equipment that is
shared/rotated among public water systems, is an eligible capital expense to fully assess the
potential for emerging contaminants impacting public water systems' source water quality.
• Direct technical assistance, related to source water contamination from ECs which could lead to
applications for grant funding, to eligible public water systems serving small and/or
disadvantaged communities.
• Implementation of voluntary source water protection activities, such as but not limited to:
o Sealing abandoned wells to protect sources of drinking water,
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Category 4 - Source Water Activities Related to Emerging Contaminant(s)
o Aqueous Film Forming Foam (AFFF) "Take back" programs to collect and properly dispose
of PFAS-containing products19, and
o Projects that reduce EC runoffs from landfills (i.e., landfill closure, landfill runoff and
leachate collection and treatment that will reduce PFAS runoff) upgradient from drinking
water sources.
• Development or implementation of watershed-based plan or TMDL Implementation plan to
address emerging contaminants that protect sources of drinking water.
• Development of internal or external (public-facing) document, dashboard, or map of potential
or known dischargers of emerging contaminants (e.g., map of facilities that manufacture or
store ECs) as part of an effort to protect sources of drinking water.
• Technical assistance to develop local ordinance to prevent contamination of public drinking
water supply with emerging contaminants.
• Projects that trap or treat stormwater, such as catchment basins, erosion control, or rain
gardens, that protect sources of drinking water from EC contamination.
• Upgrading or replacement of septic systems where excess nutrient pollution from septic
systems are determined to be a cause of source water EC contamination and where such
preventative measures have been identified as a solution to protect sources of drinking water
from EC contamination (e.g., cyanobacteria and cyanotoxins).
• Some ECs, such as cyanobacteria/cyanotoxins and others listed on the CCL, are fueled by
excess organic matter in source waters. Where such EC contamination is occurring currently
or historically and where preventative measures have been identified as a solution to
contamination, eligible activities to prevent these ECs through source water protection
include development and implementation of sediment, total organic carbon, and/or nitrogen
and phosphorus reduction strategies (i.e., including but not limited to nutrient management
plans, vegetative buffer strips, agricultural best management practices, stormwater
management, and green infrastructure).
• Installing in-waterbody mitigation equipment and strategies to reduce ECs such as
cyanobacteria/cyanotoxins in source water (such as aerators, surface skimming and other
physical controls, pretreatment of source water, floating wetlands, etc.).
• Establishing and/or operating of a local or regional source water collaborative with the
objective to address ECs in source waters.
• Public outreach and education in order to prevent EC contamination of source water, such as:
o Training and outreach to emergency response, fire departments, military, airports, and
other users of fire retardants with PFAS on availability of other non-PFAS-containing fire
retardants, and
o Training and outreach to facilities that use products that contain emerging contaminants
on the harmful effects of emerging contaminants and available best management
practices to safeguard public health.
19 First, they may not compensate the organizations or individuals who are bringing in the products in any way.
States cannot reimburse or compensate any group that is disposing of PFAS-containing products for the
transportation of those products to the take-back site. Second, only not-for-profit and local government-run
organizations (e.g., fire stations) are allowed to bring in PFAS-containing products. For a take-back program to be
eligible, any company that manufacturers PFAS-containing products must be prohibited from participating in the
program. Third, states need to follow all federal, state, and local laws regarding the proper handling and disposal
of these materials and properly certify and document that they have done so.
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Category 4 - Source Water Activities Related to Emerging Contaminant(s)
• In source water impacted by emerging contaminants, installation of aquifer storage and
recovery (ASR) system for water storage (e.g., part of a reclaimed water system), including
wells, pumps, pipes, and wellhead structures.
• Source exploration and new source development.
Category 5 - Storage
Example Activities
• New storage or replacement/rehabilitation of existing structures to continue to maintain
compliance and protect public health by preventing microbiological contaminants from
entering a public water system.
• Development of supplemental treatment to finished water storage facilities as a protective
distribution "barrier" that prevents contamination of water.
• Animal control services to mitigate bacteria and pathogen contamination.
• Aquifer storage and recovery (ASR) system for water storage (e.g., part of a reclaimed water
system).
Category 6 - Water System Restructuring, Consolidation, or Creation**
Example Activities
• Planning, negotiations, and public processes necessary to support restructuring,
consolidation, partnership, or new system creation due to emerging contaminant concerns.
• Administrative restructuring.
• Consolidation with another water system that does not have emerging contaminants present
or has removal capability.
• Creation of a new community water system to address unsafe drinking water provided by
individual (i.e., privately-owned) wells or surface water sources.
• Creation of a Source Water Protection Partnership.
* * Activities that result in restructured, consolidated, or regionalized systems are eligible even if the water system with which
the recipient water system partners or consolidates does not serve a community meeting the definition of small or
disadvantaged, or the newly-consolidated/regionalized system does not serve a community meeting the definition of small or
disadvantaged. Activities resulting in the elimination of a water system serving a small and/or disadvantaged community are
eligible.
Category 7 - Providing Households Access to Drinking Water Services
Example Activities
• Connection to an existing water system without emerging contaminant contamination.
• Point-of-Use / Point-of-Entry devices that are certified by a third-party using science-based
test methods for the removal of contaminants of concern, as a temporary, interim measure
completed by recipient of the grant funding while determining whether to connect to an
existing PWS or create a new water system.
• Investments necessary for providing accurate and current information about the need for
filtration and filter safety, including proper use and maintenance practices.
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Category 8 - Technical Assistance
Example Activities
• Technical assistance to help PWSs plan, develop, administer, or perform any other eligible
activity or use.
• Staff training on operation of new equipment or implementation of new practices.
• Implementation of TMF surveys for the determination of small system capacity.
• Hiring of staff to administer and support otherwise eligible work.
• Development of statewide contracts for services such as preliminary engineering.
• Assistance in conducting engineering evaluations of proposed work.
• Local contractor training on emerging contaminant projects, as part of a construction
contract.
• State hiring of staff, nonprofit organizations, or regional, interstate, or municipal entities to
assist the system and/or community. The form of that assistance is flexible and could include,
but is not limited to, outreach, technical evaluation of drinking water solutions, technical
evaluation of contaminated land and industrial sources that may impact source water,
preparation of applications, or preliminary engineering reports.
• Hiring staff/contracting with third-party service providers to assist with Federal requirement
compliance.
• Subcontracts and Subawards, including subawards with nonprofit organizations that have
water system technical expertise, to provide technical assistance.
Category 9 - Public communication, engagement, and education ***
Example Activities
• Conducting community stakeholder meetings.
• Shared decision-making processes.
• Establishing public information and reporting web portals.
• Educational support to agencies and partners.
• Development of educational materials and programs.
• Advisory councils/committees to provide research opportunities and mechanisms to improve
understanding of emerging contaminants.
Category 10 - Private Wells Activities
Example Activities
• Providing household water quality testing, including testing for unregulated contaminants.
• Post-remediation testing to verify whether contaminant(s) are still present after removal
actions have been completed.
• Supplying water test kits and instructions to households.****
• Conducting initial, special (non-routine/non-compliance) testing to establish a baseline
understanding of a contaminant of concern or operation of newly-installed technology.
• Development of a new source (i.e., new/replacement well or intake for a public water system)
that addresses an emerging contaminant issue.
• Initial Point-of-Use / Point-of-Entry devices that are certified by a third-party using science-
based test methods for the removal of contaminants of concern.
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Category 10 - Private Wells Activities
• Planning, negotiations, and public processes necessary to support restructuring,
consolidation, partnership, or new system creation due to emerging contaminant concerns.
• Consolidation with another water system that does not have emerging contaminants present
or has removal capability.
• Creation of a new community water system to address unsafe drinking water due to emerging
contaminants provided by individual privately-owned wells or surface water sources.
***Research and testing activities do not need to find emerging contaminants to be eligible. Efforts undertaken
to determine whether emerging contaminants are present are eligible regardless of the findings. Activities that
result in restructured, consolidated, or regionalized systems are eligible even if the water system with which the
recipient water system partners or consolidates does not serve a community meeting the definition of small or
disadvantaged, or the newly-consolidated/regionalized system does not serve a community meeting the
definition of small or disadvantaged.
****Water test kits to households can be structured as a Participant Support Cost fEPA Guidance on Participant
Support Costs).
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APPENDIX E. SUMMARY OF GRANT TIMELINE
Steps to secure funding:
Submit Letter of Intent (LOI) by [DATE SET BY U.S. EPA]: The LOI may be submitted by email to
WIINDrinkingWaterGrants@epa.gov. States that do not intend to participate may send notice of their
intent not to participate to the same address.
Review the NOIP: The EPA Office of Ground Water and Drinking Water (OGWDW) will forward the LOIs
to the appropriate EPA Regional Office for review. Regions will work with States as necessary to resolve
any identified issues.
Allocation distribution: After the LOI open period closes, the program anticipates notifying all States of
final allocation amounts.
Submit draft workplan and SDC List to the EPA Region for review: EPA Regions will coordinate with
States and OGWDW on draft workplans and applications.
Submit funding application package by [DATE SET BY EPA REGION]: Submit a complete application
package as described below in VIII. APPLICATION PACKAGE AND SUBMISSION INFORMATION through
applications through Grants.gov ( vww.grants.gov).
Review of application packages: Regions will work with States as necessary to resolve any issues.
Notification of acceptance: OGWDW and Regions will notify all participating States that have submitted
complete and appropriate applications of their acceptance. The Award Official notifies of award.
Grant or cooperative agreement execution: Awards will be issued to States.
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APPENDIX F. SAMPLE LETTER OF INTENT TO PARTICIPATE
State governors or designees can communicate their intention to participate in the EC-SDC grant by
emailing EPA at WIINDrinkingwatergrants@epa.gov using the following format:
Dear Administrator :
On behalf of the state/territory of , I submit this email as notice of intent to
participate in the Emerging Contaminants - Small and Disadvantaged Communities grant program as
funded under the Bipartisan Infrastructure Law. The (insert State/territory Department or Agency here)
will serve as the lead state/territory agency for this program. Please send any information pertaining to
the grant program to the following contact person:
Name:
Phone number:
Email:
Mailing address.
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APPENDIX G. AMENDED SDWA 1459ADIVISION J TITLE VI APPROPRIATION
(6) $5,000,000,000 for grants for addressing emerging contaminants under subsections (a) through (j) of
section 1459A of the Safe Drinking Water Act (42 U.S.C. 300j-19a): Provided, That $1,000,000,000, to
remain available until expended, shall be made available for fiscal year 2022, $1,000,000,000, to remain
available until expended, shall be made available for fiscal year 2023, $1,000,000,000, to remain
available until expended, shall be made available for fiscal year 2024, $1,000,000,000, to remain
available until expended, shall be made available for fiscal year 2025, and $1,000,000,000, to remain
available until expended, shall be made available for fiscal year 2026: Provided further, That funds
provided to States under this paragraph may be used for projects that address emerging contaminants
supporting a community described in section 1459A, subsection (c)(2), of the Safe Drinking Water Act,
notwithstanding the definition of underserved communities in section 1459A, subsection (a)(2), of the
Safe Drinking Water Act: Provided further, That funds provided under this paragraph in this Act shall not
be subject to the matching or cost share requirements of section 1459A of the Safe Drinking Water Act:
Provided further, That up to three percent of the amounts made available under this paragraph in this
Act in each of fiscal years 2022 through 2026 shall be for salaries, expenses, and administration:
Provided further, That one-half of one percent of the amounts made available under this paragraph in
this Act in each of fiscal years 2022 through 2026 shall be transferred to the Office of Inspector General
of the Environmental Protection Agency for oversight of funding provided to the Environmental
Protection Agency in this title in this Act;
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APPENDIX H. SDWA SECTION 1459A ASSISTANCE FOR SMALL AND
DISADVANTAGED COMMUNITIES
42 (JSC 300j-19a: Assistance for small and disadvantaged communities
Text contains those laws in effect as of February 28, 2022.
SEC. 1459A. ASSISTANCE FOR SMALL AND DISADVANTAGED COMMUNITIES.
(a) DEFINITION OF UNDERSERVED COMMUNITY. —In this section:
(1) IN GENERAL.—The term 'underserved community' means a political subdivision of a State that,
as determined by the Administrator, has an inadequate system for obtaining drinking water.
(2) INCLUSIONS.—The term 'underserved community' includes a political subdivision of a State
that either, as determined by the Administrator—
(A) does not have household drinking water or wastewater services; or
(B) is served by a public water system that violates, or exceeds, as applicable, a requirement
of a national primary drinking water regulation issued under section 1412, including—
(i) a maximum contaminant level;
(ii) a treatment technique; and
(iii) an action level.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—The Administrator shall establish a program under which grants are provided to
eligible entities for use in carrying out projects and activities the primary purposes of which are to
assist public water systems in meeting the requirements of this title.
(2) INCLUSIONS.—Projects and activities under paragraph (1) include—
(A) investments necessary for the public water system to comply with the requirements of
this title;
(B) assistance that directly and primarily benefits the disadvantaged community on a per-
household basis;
(C) programs to provide household water quality testing, including testing for unregulated
contaminants;
(D) the purchase of point-of-entry or point-of-use filters and filtration systems that are
certified by a third party using science-based test methods for the removal of contaminants
of concern;
(E) investments necessary for providing accurate and current information about—
(i) the need for filtration and filter safety, including proper use and maintenance
practices; and
(ii) the options for replacing lead service lines (as defined in section 1459B(a)) and
removing other sources of lead in water; and
(F) entering into contracts, including contracts with nonprofit organizations that have water
system technical expertise, to assist—
(i) an eligible entity; or
(ii) the State of an eligible entity, on behalf of that eligible entity.
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(c) ELIGIBLE ENTITIES.—Except for the purposes of subsections (j) and (m), an eligible entity under this
section—
(1) is—
(A) a public water system;
(B) a water system that is located in an area governed by an Indian Tribe; or
(C) a State, on behalf of an underserved community; and
(2) serves a community—
(A) that, under affordability criteria established by the State under section 1452(d)(3), is
determined by the State—
(i) to be a disadvantaged community; or
(ii) to be a community that may become a disadvantaged community as a result of
carrying out a project or activity under subsection (b); or
(B) with a population of less than 10,000 individuals that the Administrator determines does
not have the capacity to incur debt sufficient to finance a project or activity under
subsection (b).
(d) PRIORITY.—In prioritizing projects and activities for implementation under this section, the
Administrator shall give priority to projects and activities that benefit underserved communities.
(e) LOCAL PARTICIPATION.—In prioritizing projects and activities for implementation under this section,
the Administrator shall consult with and consider the priorities of States, Indian Tribes, and local
governments in which communities described in subsection (c)(2) are located.
(f) TECHNICAL, MANAGERIAL, AND FINANCIAL CAPABILITY.—The Administrator may provide assistance
to increase the technical, managerial, and financial capability of an eligible entity receiving a grant under
this section if the Administrator determines that the eligible entity lacks appropriate technical,
managerial, or financial capability and is not receiving such assistance under another Federal program.
(g) COST SHARING.—Before providing a grant to an eligible entity under this section, the Administrator
shall enter into a binding agreement with the eligible entity to require the eligible entity—
(1) except as provided in subsection (l)(5) and subject to subsection (h), to pay not less than 10
percent of the total costs of the project or activity, which may include services, materials, supplies,
or other in-kind contributions;
(2) to provide any land, easements, rights-of-way, and relocations necessary to carry out the
project or activity; and
(3) to pay 100 percent of any operation and maintenance costs associated with the project or
activity.
(h) WAIVER.—The Administrator may waive, in whole or in part, the requirement under subsection
(g)(1) if the Administrator determines that an eligible entity is unable to pay, or would experience
significant financial hardship if required to pay, the non-Federal share.
(i) LIMITATION ON USE OF FUNDS.—Not more than 4 percent of funds made available for grants under
this section may be used to pay the administrative costs of the Administrator.
(j) STATE RESPONSE TO CONTAMINANTS.
(1) IN GENERAL.—The Administrator may, subject to the terms and conditions of this section,
issue a grant to a requesting State, on behalf of a community described in subsection (c)(2), so the
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State may assist in, or otherwise carry out, necessary and appropriate activities related to a
contaminant—
(A) that is determined by the State to—
(i) be present in, or likely to enter into, a public water system serving, or an
underground source of drinking water for, that; and
(ii) potentially present an imminent and substantial endangerment to the health of
persons; and
(B) with respect to which the State determines appropriate authorities have not acted
sufficiently to protect the health of such persons.
(2) RECOVERY OF FUNDS.—If, subsequent to the Administrator's award of a grant to a State under
this subsection, any person or entity (including an eligible entity), is found by the Administrator or
a court of competent jurisdiction to have caused or contributed to contamination that was
detected as a result of testing conducted, or treated, with funds provided under this subsection,
and such contamination violated a law administered by the Administrator, such person or entity
shall, upon issuance of a final judgment or settlement and the exhaustion of all appellate and
administrative remedies—
(A) notify the Administrator in writing not later than 30 days after such issuance of a final
judgment or settlement and the exhaustion of all appellate and administrative remedies;
and
(B) promptly pay the Administrator an amount equal to the amount of such funds.
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APPENDIX I. DEFINITION OF EMERGING CONTAMINANTS
To be eligible to receive EC-SDC grant program funds, a project must be otherwise eligible and the
primary purpose must be to address one or more emerging contaminants in drinking water. Projects
that address any contaminant listed on any of EPA's Zontaminant Candidate List: are eligible (i.e., CCL1,
2, 3, 4, 5 and the draft and the final CCL6 when completed). States may request consideration of other
contaminants that they find to be of concern in the state. States contemplating this are encouraged to
contact the EPA to discuss it prior to submitting their application.
If the EPA has promulgated a National Primary Drinking Water Regulation (NPDWR) for a contaminant,
then a project whose primary purpose is to address that contaminant is not eligible for funding under
this appropriation, with the PFAS exception explained below.
For example, a project for which the primary purpose is to address arsenic or nitrate in drinking water is
not eligible because arsenic and nitrate are regulated under the NPDWRs. The EPA established a JPDWR
for PFOA and PFOS with the PFAS NPDWR rule announced in April 2024. Given the stated Congressional
intent of this appropriation, PFAS-focused projects will continue to be eligible for funding under this
appropriation even with the established NPDWR for that particular PFAS or group of PFAS. More
information on PFAS is located here: https://www.epa.gov/sdwa/and-polvfluoroalkyl-substances-pfas.
Legionella: Even though there are MCLGs for Legionella and viruses, and these contaminants are subject
to limitations as a class through the treatment techniques under the Surface Water Treatment Rules,
there are no monitoring, treatment, or notification requirements within those NPDWRs that are specific
to Legionella pneumophila or the specific viruses listed on CCL5 (although systems may use coliphage for
source water monitoring for ground water systems). Therefore, the EPA considers Legionella
pneumophila and the specific viruses listed on CCL5 to be unregulated contaminants for purposes of
eligibility for the CCL. Additionally, the EPA received public nomination for viruses and Legionella for the
Draft CCL 5, with Legionella pneumophila receiving the highest number of nominations. Legionella
pneumophila qualifies as an emerging contaminant.
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APPENDIX J. RESOURCES
Contacts:
EPA Regional Contacts by State and Territory for Small and Disadvantaged Communities grant program:
https://www.epa.gov/dwcapacitv/wiin-grant-assistance-small-and-disadvantaged-communities-
drinking-water-grant
Resources for increasing the efficiency and reach of projects:
• Guidance on technical assistance contractor selection criteria (knowledge of federal framework
and state-specific laws, rules, and processes); metrics for cost-effectiveness analysis of
providers; performance-based system of accountability.
• Guidance on training and apprenticeship, including contract language for allowing on-the-job
training for contractors/water workforce - i.e., so contractors are rewarded for bring new
people on to crews.
• Pay for Success, Design-Build-Operate, etc. contracting guidance.
• List of materials, tools, and programs that states can consult specific to strategic priorities to
ensure they meet expectations. EJ mapping tools, emerging contaminant-specific resources,
working with state civil rights offices, Environmental Finance Centers, information on green
infrastructure, efficiency, and renewable energy, CRWU climate resilience resources etc.
Grants, procurement, and EPA contracts:
Grants Policy Resources. Includes searchable table of the latest resources that may be pertinent to your
grant. Use the keyword search.
https://www.epa.gov/grants/epa-grants-policy-resources
Other Grant Policy references:
EPA Grants Policy Issuance 16-01 (Sub-awards Policy): https://www.epa.gov/grants/grants-policv-
issuance-gpi-16-Ol-epa-subaward-policy-epa-assistance-agreement-recipients
Office of Grants and Debarment Guidance on Selected Items of Cost for Recipients:
https://www.epa.gov/grants/rain-2018-g01-r
Cost review template and guidance for project officers' grants:
Best Practice Guide for Procuring Services, Supplies, and Equipment Under Assistance Agreements:
https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-
epa-assistance-agreements
Grants Management Training for Applicants and Recipients: https://www.epa.gov/grants/epa-grants-
management-training-applicants-and-recipients
Participant Support Cost: https://www.epa.gov/sites/default/files/2020-ll/documents/epa-guidance-
on-participant-support-costs.pdf
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