The U.S. Environmental Protection Agency (EPA) is awarding $2.7 billion nationwide in support to water infrastructure via State Revolving Funds (SRFs), including $30,536,000 for Arizona. This funding assists states, tribes and territories with infrastructure projects that help protect surface water and provide safe drinking water to communities across the United States.
“EPA is delivering on its commitment to modernize water infrastructure and improve public health and environmental protections in the Pacific Southwest,” said EPA Pacific Southwest Regional Administrator John Busterud. “EPA’s $346.8 million contribution to the State Revolving Funds in the region will enable more communities to make the investments needed to ensure safe drinking water and sanitation.”
The Water Infrastructure Finance Authority of Arizona (WIFA) will receive and administer the SRF appropriations. WIFA helps Arizona’s wastewater and water systems maintain – or come into – compliance with federal and state clean water and drinking water requirements.
In 2020, EPA awarded $1.6 billion nationwide in new federal grant funding for the Clean Water State Revolving Fund (CWSRF), including $10,734,000 to assist Arizona. This funding is available for a wide range of water infrastructure projects, including modernizing aging wastewater infrastructure, implementing water reuse and recycling and addressing stormwater.
EPA also awarded $1.07 billion across the country in new federal grant funding for the Drinking Water State Revolving Fund (DWSRF), including $19,802,000 to assist Arizona. This funding can be used for loans that help drinking water systems install treatment for contaminants, improve distribution systems by removing lead service lines and strengthen system resiliency to natural disasters such as floods.
Under the CWSRF and DWSRF programs, EPA provides funding to all 50 states and Puerto Rico to capitalize SRF loan programs. The states and Puerto Rico contribute an additional 20 percent to match the federal funding.
The SRF programs function like infrastructure banks by providing low-interest loans to eligible recipients for drinking water and clean water infrastructure projects. As the loan principal and interest are repaid over time, it allows the state’s DWSRF and CWSRF to be recycled or “revolve.” As money is returned to the state’s revolving loan fund, the state makes new loans to other eligible recipients. These funds can also be combined with EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) loans to create a powerful, innovative financing solution for major infrastructure projects.
