REAUTHORIZATION

CIFA works to build congressional support for the Clean Water and Drinking Water State Revolving Funds, successful, proven state-federal partnerships for water infrastructure investment. 

Reauthorization of the Clean Water State Revolving Fund

On October 29, 2019, the U.S. House Transportation & Infrastructure Committee unanimously passed the Water Quality Protection and Job Creation Act of 2019 (H.R. 1497), which reauthorized the Clean Water State Revolving Fund.

Funding levels:

  • 2021: $2.4 billion

  • 2022: $2.6 billion

  • 2023: $2.8 billion

  • 2024: $3 billion

  • 2025: $3 billion

 

Policy changes:  

  • Adds grants as an eligible form of additional subsidization.

  • Mandates 15% of the capitalization grant be used for green infrastructure, energy and water efficiency projects or other environmentally innovative activities, as long as there are applications.

  • Mandates 10% of capitalization grant be used for additional subsidization (grants, loan forgiveness, negative interest loans).

  • Caps optional additional subsidization at 30% and simplifies the calculation for determining the cap on additional subsidization to a flat 30% of the capitalization grant.

  • Allows states to use bond proceeds (i.e. the 10-year average of state contributions that exceed the state match requirement) for additional subsidization beyond the 30% cap on optional additional subsidization.

  • Allows states to allocate 1% of the annual capitalization grant to fund a workforce development program.

  • Modifies the requirement of the cost-effectiveness analysis from simply “energy conservation” to “efficient energy use (including through the implementation of technologies to recapture and reuse energy produced in the treatment of wastewater).”

 

Read CIFA's comment letter

Reauthorization of the Drinking Water State Revolving Fund

America's Water Infrastructure Act of 2018, which became law on October 23, 2018, reauthorized the Drinking Water State Revolving Fund.

 

Funding levels:

  • 2019: $1.174 billion

  • 2020: $1.3 billion

  • 2021: $1.95 billion

​Policy changes: 

  • Authorizes an additional $100 million in capitalization grants for areas that are impacted by natural disaster and meet certain criteria.

  • Maintains Davis-Bacon prevailing wage requirements and extends American Iron and Steel requirements through 2023.

  • Allows loan terms beyond 30 years to the life of the project.

  • Establishes a minimum of 6% and a maximum of 35% for additional subsidization for disadvantaged communities.

  • Requires the Government Accountability Office (GAO) to conduct a report on the cross-cutting requirements to “identify demonstrations of compliance with a State or local environmental law that may be substantially equivalent to any demonstration required by the Administrator for compliance with a Federal cross-cutting requirement.”

  • Requires EPA to implement a project to collect information about best practices from states, including efforts to streamline the application process, provide state assistance with applications, offer incentives for partnering between large and small utilities, improve management, and evaluate operations.

  • Requires an assessment of the cost to replace lead service lines to be included in a needs survey.

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