Sections of the Infrastructure Investment and Jobs Act (H.R. 3684) that impact the Drinking Water SRFs:
I. Funding
The bill appropriates $30,713 billion for the Drinking Water State Revolving Funds (SRFs) over five years. (This is actual funding.) (See Division J - Appropriations, Title VI Department of Interior, Environment and Related Agencies, State and Tribal Assistance Grants: Starts on page 2,565 of the bill.)
II. Reauthorization & Policy
The bill includes The Drinking Water and Wastewater Infrastructure Act (S. 914) which reauthorizes funding levels for the SRFs and amends SRF provisions in the Clean Water Act and the Safe Drinking Water Act. (See Division E - Drinking Water and Wastewater Infrastructure: Starts with Section 50001 on page 1,887 of the bill.)
III. Buy America / Buy American
The bill expands domestic preference procurement provisions for programs across government, including the SRFs. (See Division G - Other Authorizations, Title IX Build America, Buy America: Starts with 70901 on page 2,303 of the bill.)
I. Funding
The bill provides three pots of funding for SRFs over the next five years:
* Any Eligible Project:
* $11,713,000,000 for the Drinking Water SRF for any eligible project.
* Lead Remediation:
* $15 billion for the Drinking Water SRF for lead service line replacement, including planning, identification, and design (includes inventories).
* Emerging Contaminants Remediation:
* $4 billion for remediation of emerging contaminants with a focus on PFAS/PFOA for the Drinking Water SRF.
Key points for this supplemental appropriation:
* Funding is intended to be in addition to annual appropriations.
* Funding is available "until expended."
* State match is not required for appropriations dedicated to lead service line replacement and remediation of emerging contaminants.
* State match is 10% for 2022-2023 and 20% for 2024-2026 for appropriations for any eligible project.
* 100% of the capitalization grant for emerging contaminants must be used for additional subsidy. A flat 49% of the annual capitalization grant for any eligible project and lead service line replacement must be used for additional subsidy.
* Additional subsidy must be provided in the form of assistance agreements with 100% principal forgiveness or grants.
Year | Drinking Water SRF Any Eligible Project | State Match | Mandated Additional Subsidy |
2022 | $1,902,000,000 | 10% | 49% |
2023 | $2,202,000,000 | 10% | 49% |
2024 | $2,403,000,000 | 20% | 49% |
2025 | $2,603,000,000 | 20% | 49% |
2026 | $2,603,000,000 | 20% | 49% |
Total | $11,713,000,000 | ||
Year | Drinking Water SRF Emerging Contaminants | State Match | Mandated Additional Subsidy |
2022 | $800,000,000 | 0% | 100% |
2023 | $800,000,000 | 0% | 100% |
2024 | $800,000,000 | 0% | 100% |
2025 | $800,000,000 | 0% | 100% |
2026 | $800,000,000 | 0% | 100% |
Total | $4,000,000,000 | ||
Year | Drinking Water SRF Lead | State Match | Mandated Additional Subsidy |
2022 | $3,000,000,000 | 0% | 49% |
2023 | $3,000,000,000 | 0% | 49% |
2024 | $3,000,000,000 | 0% | 49% |
2025 | $3,000,000,000 | 0% | 49% |
2026 | $3,000,000,000 | 0% | 49% |
Total | $15,000,000,000 | ||
Total | $30,713,000,000 |
II. Reauthorization & Policy
The bill includes The Drinking Water and Wastewater Infrastructure Act of 2021 (S. 914) which passed the U.S. Senate on Thursday, April 29, by a vote of 89 - 2 (9 not voting). The bill contained the following provisions. (Policy provisions apply to annual appropriations, not supplemental appropriations in the bill.)
Funding
* Reauthorizes Drinking Water SRFs at the same levels for the next five years:
* 2022: $2.4 billion
* 2023: $2.75 billion
* 2024: $3 billion
* 2025 and 2026: $3.25 billion
* Reauthorizes SWIFIA: $5 million annually for the next five years, 2022 through 2026.
Additional Subsidy
* Defines additional subsidization as "forgiveness of principal, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt" for both SRFs and excludes loans with 0% or higher interest are not additional from being considered additional subsidy.
* Mandates minimum additional subsidy for as long as there are eligible applications:
* Drinking Water SRFs: Increases additional subsidy from 6% to 12% of the capitalization grant for additional subsidy for disadvantaged communities.
III. Buy America / Buy American
The legislation also expands domestic preference procurement requirements for SRF projects from American Iron and Steel to construction materials and manufactured products.
Miss. Code. tit. 33, pt. 15, Appendices, app 33-15-G