Infrastructure Investment & Jobs Act: EPA

Loan Programs Summary 

Nearly half of the U.S. Environmental Protection Agency’s (EPA) budget goes toward grants that fund a vast array of projects related to its mission of protecting the environment. However, EPA does provide credit assistance for wastewater, stormwater, drinking water and other water-related projects via Clean Water and Drinking Water State Revolving Funds. EPA also provides credit assistance for water-related projects through its Water Infrastructure Finance and Innovation (WIFIA) program, as well as WIFIA’s state-oriented counterpart SWIFIA. 

Clean Water State Revolving Fund (CWSRF)

Under the CWSRF, EPA provides grants to all 50 states plus Puerto Rico to capitalize state CWSRF loan programs. The states contribute an additional 20% to match the federal grants. The state programs essentially function as environmental infrastructure banks that provide low-interest loans to eligible recipients, and then use the money that is paid back into the fund through principal and interest payments to finance future loans (hence the “revolving” nature of the funds). A wide range of projects are eligible for funding under CWSRF, including stormwater and green infrastructure. 

Drinking Water State Revolving Fund (DWSRF)

A drinking water counterpart to the CWSRF, the DWSRF program is a federal-state partnership that provides communities a permanent, independent source of low-cost financing for drinking water systems and state safe water programs. Green infrastructure projects that improve source water quality and/or quantity or maximize reliance on natural hydrological functions may be eligible for funding.

Water Infrastructure Finance and Innovation (WIFIA)

WIFIA provides long-term, low-cost supplemental credit assistance to creditworthy water and wastewater projects across the country. Eligible programs include those that are eligible for funding under the CWSRF and DWSRF programs. WIFIA funding is currently available, and Letters of Interest may be submitted on an ongoing basis as of September 6, 2022.

State Water Infrastructure Finance and Innovation (SWIFIA)

The State infrastructure financing authority WIFIA (SWIFIA) program, authorized by Congress in section 4201 of America’s Water Infrastructure Act (AWIA) of 2018, is a new loan program exclusively for State infrastructure financing authority borrowers. SWIFIA funding is currently available, and Letters of Interest may be submitted on an ongoing basis as of September 6, 2022.

EPA Small Business Innovation Research (SBIR)

The U.S. Environmental Protection Agency (EPA), as part of its Small Business Innovation Research (SBIR) program, is seeking proposals from small businesses to develop novel environmental technologies in the following topic areas: clean and safe water, air quality and climate, homeland security, circular economy/sustainable materials, safer chemicals and risk assessment. 

Summary of BIL Components & Current Notice of Funding Opportunities 

The Infrastructure Investment & Jobs Act (otherwise known as the Bipartisan Infrastructure Law, or BIL), which was signed into law by President Joe Biden on November 15, 2021, has made historic investments in America’s environmental infrastructure. The U.S. Environmental Protection agency’s various grant programs for environmental remediation have received substantial new financial support under BIL. The new resources that the EPA has obtained through BIL include:

• The law provides $1.5 billion for Brownfield grants and loans within EPA’s Brownfields program over the next 5 years.
• The law reinstates and revises the federal Superfund tax (enacted as part of CERCLA and which expired in 1995) to provide $3.5 billion in additional funding over the next five years for EPA to conduct response actions and cleanup at federal Superfund sites across the U.S. 
• The law provides $5 billion for decarbonizing the nation’s school bus fleet.
• The law includes $350 million for solid waste and recycling grants — $275 million for grants under the Save Our Seas 2.0 Act directed at improvements to waste management and recycling and $75 million for grants aimed at improving material recycling and management through education and outreach. The law also provides $25 million for the development of best practices for battery recycling and voluntary battery labeling guidelines.
• $55 billion of the law’s new spending is dedicated to improving America’s drinking water, wastewater and storm water infrastructure, including $15 billion for replacing America’s lead pipes
• The law provides $100 million for EPA’s Pollution Prevention (P2) Program and the launch of a new program targeting environmental justice.

A full list of outstanding notice of funding opportunities for the EPA’s grant programs can be found below. 

*Faegre Drinker Policy Assistant Andrew Bryant contributed to this article.