Bipartisan Infrastructure Law

The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure and Investments and Jobs Act (IIJA), was signed by President Biden on November 15, 2021 which included the Build America, Buy America Act (BABA). The BIL will provide additional federal funding for eligible Drinking Water State Revolving Fund (DWSRF) infrastructure projects in Connecticut over five (5) federal fiscal years (Fiscal Years 2022 – 2026). The U.S. Environmental Protection Agency (EPA) released BIL implementation guidance for Clean and Drinking Water State Revolving Fund Programs on March 8. The BIL provides for three (3) additional DWSRF awards to states in each of Federal Fiscal Years 2022-2026. A brief description of each of those awards is provided below along with the anticipated amounts the Connecticut DWSRF Program will receive in the first year:

1. Supplemental Capitalization Award ($17,955,000) – This is an additional capitalization grant that can be used for any eligible DWSRF drinking water project
2. Lead Service Line Replacement Award ($28,275,000) – This a capitalization grant that can be used only for drinking water lead service line replacement (LSLR) projects
3. Emerging Contaminant Award ($7,540,000) – This is a capitalization grant that can be used only to address emerging contaminants in drinking water with a focus on poly and perfluoroalkyl substances (PFAS/PFOA)

Within each of these new federal BIL awards there will be opportunities to use some of the funding to subsidize loans for eligible drinking water infrastructure projects. Disadvantaged communities are a priority under BIL funding to ensure equitable access to SRF funding including subsidy. The amount, or percentage of subsidy that will be “passed-through” to DWSRF loan applicants for their specific projects has not been determined. These amounts, or percentages, will be evaluated and published in the Draft State Fiscal Year 2023 DWSRF Intended Use Plan (IUP) once all requests for DWSRF funding have been received. The Draft IUP will be made available for a minimum 30-day public review and comment period which will be followed by a public hearing to receive testimony on it before it is finalized.

Who can apply for BIL Funding? Only Community and Non-Profit Non-Community Public Water Systems are eligible for BIL funding. This is the same eligibility as it is for the DPH’s base DWSRF Program.

Application Process: In an effort to prepare for the first year availability of these grants, the DPH is requesting that eligible public water systems submit DWSRF applications for funding from any or all of these funding opportunities during our annual DWSRF Call for Projects. The DPH will determine which projects will be eligible to receive funding from these new federal awards based on EPA's guidance on eligibility requirements. The deadline for applications for State Fiscal Year 2023 is March 31, 2022.

NEW Requirements for the DWSRF:

Build America Buy America: Division G of the BIL includes a Build America, Buy America Act (BABA) provision that will expand the current American Iron and Steel provisions within the DWSRF and include a domestic preference requirement for “manufactured goods”. The new BABA requirement will become effective May 14, 2022 and will apply to all DWSRF funding from that point forward. The federal Office of Management and Budget (OMB) issued guidance on implementing BABA on April 18, 2022. Additional guidance from EPA will also be provided as it becomes available.

Justice40: The DWSRF is a pilot program for the federal Justice40 initiative. The goal of this initiative is to deliver at least 40% of the benefits of federal investments to disadvantaged communities. OMB and EPA are currently preparing guidance for states on this initiative, and it may require states to update their Disadvantaged Community Assistance Programs (DCAP) for consistency with Justice40. Connecticut’s DCAP for the DWSRF is provided as an attachment in our annual DWSRF IUP. Please visit our Call for Projects webpage and scroll down to the latest IUP to view the current DCAP program.

Links to Additional Information:

DPH Circular Letter 2022-17

EPA Memorandum: Implementation of the Clean Water and Drinking Water State Revolving Fund Provisions of the Bipartisan Infrastructure Law (March 2022)

EPA Fact Sheet: Bipartisan Infrastructure Law: State Revolving Funds Implementation Memo (March 2022)

DPH Circular Letter 2022-03

H.R. 3684 Infrastructure Investment and Jobs Act (full text)

Environmental Protection Agency (EPA) BIL Website

Association of State Drinking Water Administrators (ASDWA) Summary of BIL

Council of Infrastructure Finance Authority’s (CIFA) Summary of BIL

Presentation: BIL SRF Memorandum Webinar (March 2022)

BIL State Revolving Fund Questions and Answers (September 2022)

Build America, Buy America Approved Waivers (EPA Website)

EPA SRF Final Waiver – Adjustment Period (September 2022)

BABA Small Project General Applicability Waiver

EPA Build America, Buy America Act Implementation Webinar (April 2022)