Federal and state low-interest loans and grants can be a game-changer for advancing clean and drinking water projects and show a significant federal investment to tackling PFAS in drinking water.
For municipalities and communities juggling affordability, necessary improvements, and compliance, this support can serve as financial lifelines to bridge the funding gap between needs and available resources — driving progress on critical water projects that enhance public health, protect natural resources, and promote sustainable water management.
How it works
The EPA-funded State’s Clean Water and/or Drinking Water State Revolving Fund (CW/DWSRF) programs are administered by states. Municipalities, counties, special purpose districts, and private entities (providing a public function) can apply for different types of assistance, including:
- low interest loans
- principal forgiveness loans (grants)
- green project reserve funding
- technical assistance
While application process, timelines, project priorities, and funding limits may vary from state to state, program requirements and implementation are consistent.
Funding what matters
As BIL dollars flow into CW/DWSRF programs, states can fund more projects and/or boost the total funding given to projects that match their particular project needs and target the distinctive issues they face, such as urgent water quality, quantity, and regulatory matters.
CW/DWSRF often enable the integration of water equity, climate action, economic opportunity, and One Water into infrastructure planning. In alignment with the Justice 40 initiative, almost half of the SRF program funds will be available as principal forgiveness loans, ensuring that funds are directed toward underserved and rural communities with critical water infrastructure needs.
Funding strategy in action: BIL PFAS aid
South Adams County Water and Sanitation District in Colorado took early action to comply with evolving PFAS regulations and to safeguard water supplies for the over 67,000 residents they serve.
Rendering of the future ion-exchange treatment plant.
The district collaborated with Brown and Caldwell (BC) to develop a phased approach for the design and construction of an 18 mgd (million gallons per day) ion-exchange treatment plant to treat PFAS in the area’s drinking water sources.
To minimize the impact of this $80 million project on their ratepayers, the district, supported by BC, secured more than $60 million in funding through federal and state funding sources including:
- Colorado Department of Public Health and Environment (CDPHE) DWSRF program
- $30 million in BIL PFAS Grant funding
- EPA’s WIIN Emerging Contaminants in Small Disadvantaged Communities (ECSDC)
- $30 million grant
- Congressionally-directed spending request through Rep. Yadira Caraveo:
- $959,752 direct appropriation
In addition, the district obtained a CDPHE Drinking Water SRF loan for $17 million and is providing approximately $2 million of its own funding.
Early and strategic engagement and ongoing communications with CDPHE enabled the district to secure both sources of grant and low-interest loan funding, including the EPA’s ECSDC funding, in time for construction. The district continues to work with CDPHE and the EPA on federal compliance requirements, specifically Build America, Buy America Act, and is pursuing applicable waivers to cover identified manufactured products and construction materials that are not available within the United States.
The district broke ground on April 25, with substantial completion anticipated by December 31, 2026.
How to secure funding
Opportunities abound in SRF programs. Here are some considerations to bear in mind.
Start early
Critical to securing funding is to start the process early from the identification of projects, understanding the funding program priorities and “hooks,” program requirements, application timing, and documentation readiness.
Be prepared
Familiarize yourself with your state’s funding application and implementation process including precursor steps that may be required as well as the funding cycle. Knowing the deadlines, documentation requirements, and milestones early in the process will aid effective planning.
Align early…and then adapt
Study the specific project qualifications set by your state. Do your project goals and schedule align? Can adjustments be made to better fit the guidelines and timing? By asking these questions early in your project’s lifecycle (e.g., planning through 30% design), you can create a well-defined project that meets program requirements.
Think big
Taking a collaborative, integrated, and holistic approach to developing water infrastructure projects vs. traditional siloed, single-purpose projects can increase opportunities to secure external funding for projects.
Collaborate wisely
Seek partners who understand the intricacies of state applications, implementation, and reporting requirements. The right partner can provide valuable insights, streamline the process, and enhance your chances of success.
The bottom line
The key to securing funding is early identification of funding opportunities and having projects that are well defined and meet program requirements when a funding opportunity opens. SRF funding provides an exciting opportunity to make clean water, drinking water, stormwater, and nonpoint sources projects a reality.
Brown and Caldwell can assist utilities and communities with external funding support from strategically identifying potential opportunities, developing competitive applications, and navigating grant administration and federal compliance requirements. Reach out to learn more.
The big picture
Now is an opportunity-rich time with federal funding, such as the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act, catalyzing billions in spending in water infrastructure and climate resiliency. The majority of BIL’s water infrastructure money is being disbursed through each State’s Clean Water and/or Drinking Water State Revolving Fund (CW/DWSRF), which includes:
- >> $23.4 billion for SRF supplemental allocations supporting a wide range of eligible water and wastewater projects (e.g., water/wastewater treatment, water quality/regulatory, transmission and distribution, consolidation, stormwater/non-point source, and green infrastructure)
- >> $15 billion for lead line projects
In addition, BIL provides a significant federal investment for projects to address emerging contaminants like PFAS in our nation’s drinking waters, including:
- >> $1 billion for PFAS through CWSRF
- >> $4 billion for PFAS through DWSRF (with 25% set aside for disadvantaged communities)
- >> $5 billion for PFAS for Small and Disadvantaged Communities
To date, the EPA has awarded over $15.9 billion in BIL SRF funding and $3 billion in BIL PFAS funding to states, territories, and tribes. While the pace of funding was initially slow due to the time needed for state agencies to receive guidance from the EPA and establish administrative procedures, the flow of funding is anticipated to increase. The EPA authorized $8.5 billion for CW/DWSRF programs in fiscal year 2024, with similar funding awards anticipated in fiscal years 2025-26, pending congressional approvals.
About the Experts
Seema Chavan is Senior Director of Strategic Funding. She leads BC’s Strategic Funding Services group to help agencies identify, strategize, and secure federal and state low-interest loans and grants. With a 20 year background in the water and wastewater industry, Seema’s expertise includes the development of grant strategies, loan, and grant application development, coordinating with funding agency staff, supporting advocacy, and assisting agencies navigate federal compliance requirements and funding administration.
About BC Insider
“BC Insider: The nexus of knowledge and action” is a new blog from our technical leaders bringing you timely insight into innovative solutions, leading-edge research, and the key environmental issues facing our communities and industry today. BC experts will cover a variety of subjects from resiliency to contaminants of emerging concern to water recycling and beyond to drive collaboration.