FY 2023 Drinking Water State Revolving Fund Allotments Based On DWINSA.pdf

This memorandum from the U.S. Environmental Protection Agency (EPA) outlines FY 2023 allotments for the Drinking Water State Revolving Fund (DWSRF), funded through the Consolidated Appropriations Act, 2023 and the Bipartisan Infrastructure Law (BIL). Key points include:

- Allotment Formula: Based on the Seventh Drinking Water Infrastructure Needs Survey and Assessment (DWINSA) results, with minor changes from the previous year. The formula distributes base appropriation, BIL General Supplemental, and BIL Emerging Contaminant funds. A new formula for Lead Service Line Replacement funding considers national lead service line counts.
- BIL Priorities: 49% of General Supplemental and Lead Service Line Replacement funding allocated to communities meeting disadvantaged definitions, consistent with the Safe Drinking Water Act (SDWA). At least 25% of Emerging Contaminant funding directed to smaller public water systems or disadvantaged communities.
- Funding Changes: Slightly decreased state funding availability due to increased Community Grants (Congressionally Directed Spending) in FY 2023.
- Implementation Resources: EPA has developed resources for states and water systems regarding BIL implementation, including fact sheets, tools for climate resilience, and guidance on lead service lines.
- Regulatory Exceptions: Permanent exception to SRF cash draw rules, eliminating the previous requirement for specific state/federal fund ratios. Guidelines also issued for implementing the BIL signage term and condition for SRF projects.
- Emerging Contaminants: Webinar held in January 2023 on DWSRF emerging contaminants funding options and project eligibilities.
- No Changes in Additional Subsidies: Same additional subsidy authorities from FY 2022, with visual representation and amounts detailed in attachments.