The funding includes $172.3m in loans to the state and $1.2m in grant to the city of Vallejo for sewer upgrades.
EPA has provided the loan to the State Water Resources Control Board to capitalize its clean water and drinking water State Revolving Fund programs. These funds are supplemented with state funding sources and will support California’s water infrastructure needs.
EPA Administrator Scott Pruitt said: "Investing in water infrastructure with our state partners is a priority for the Trump Administration and ensures communities can deliver safe drinking water and wastewater treatment.
“This funding is critical to supporting public health and environmental goals in California.”
The Clean Water State Revolving Fund has been given $94.8m to support a variety of water infrastructure improvement projects.
Monterey One Water will use $88m loan for installing new water treatment facility Monterey County. The facility will treat and reclaim municipal wastewater, urban runoff, agricultural return flows and food processing wastewater.
The purified water will fill the Seaside Groundwater Basin, offering water to at least 105,000 people, while reducing the amount of water diverted from the Carmel River.
The city of Santa Monica will use its allocated $52.9m and $4m in loan forgiveness, to collect and treat municipal wastewater, stormwater, and impaired groundwater.
With this project, the city is expected to reduce the use of imported water, replenish its groundwater supply, increase drought resilience and improve beach water quality.
The Drinking Water State Revolving Fund has also received $77.5m for drinking water infrastructure improvements to improve public water systems.
State Water Resources Control Board vice chair Steven Moore said: “The State Revolving Fund programs allow us to help a wide variety of communities throughout the state.
“But their financial strength and versatility are especially good at helping small and disadvantaged communities that otherwise might not have access to the capital they need to solve their water treatment problems.”