Texas water projects one step closer to IIJA funding Posted on October 12, 2022

Projects such as elevated storage tanks may be eligible for funding through the Drinking Water State Revolving Fund.

On October 5, the Texas Water Development Board (TWDB) approved the Clean and Drinking Water State Revolving Funds’ 2023 Intended Use Plans (IUPs) covering “general activities.” The plans detail how the agency intends to utilize federal funding, including a total of $222,340,000 from the Infrastructure Investment and Jobs Act (IIJA), for water and wastewater infrastructure projects. This milestone brings the state one step closer to allocating the highly anticipated IIJA funding to Texas communities.

The IIJA, also known as the Bipartisan Infrastructure Law, is a federal statute signed in November 2021 that includes an array of funding for transportation and power infrastructure improvements, access to clean drinking water and high-speed internet, public transit investments, and more. Nationwide, IIJA will invest $55 billion in water infrastructure, lead service line replacement, and addressing contaminants in drinking water. According to the Environmental Protection Agency, it is the single largest investment in water infrastructure in history.

Every year, the Environmental Protection Agency allocates grant funding, called capitalization grants, to states through two State Revolving Funds (SRFs). The Drinking Water State Revolving Fund assists communities by providing low-cost financing for a wide range of water projects that facilitate compliance with drinking water standards. Similarly, the Clean Water State Revolving Fund provides low-cost financing for wastewater, stormwater, reuse, and other pollution control projects. The Texas Water Development Board administers SRF grants on behalf of the State of Texas.

The IIJA funds will be allocated as additional capitalization grants to the states, and Texas expects to receive approximately $2.5 billion over the next five years through IIJA to improve water infrastructure. For federal fiscal year 2022, the TWDB anticipates a total of $507,971,000 from SRF grants, which is more than three times the amount allocated in recent years to the state.

With the Board-approved IUPs, the TWDB will begin to invite projects to apply for funding this fall. Projects are prioritized in the IUP based on project information forms submitted to the TWDB for scoring in March 2022. The agency anticipates to begin approving funding for projects in spring 2023.

In addition to standard State Revolving Fund projects, there are multiple new categories of funds available to states under the IIJA. These categories include emerging contaminants, lead service line replacement, and standard set-asides for non-construction, like administration, state program management, small system technical assistance, local assistance, and other state programs.

Eligible applicants for the Clean Water SRF include political subdivisions, such as water supply corporations that are designated management agencies, authorized Indian tribal organizations, and private entities for nonpoint source or estuary projects only. Publicly and privately owned community water systems are eligible applicants for the Drinking Water SRF, including nonprofit water supply corporations and nonprofit, non-community public water systems.

To learn more about the State Revolving Fund programs, visit the TWDB website.

For federal fiscal year 2022, the TWDB anticipates a total of $507,971,000 from SRF grants, which is more than three times the amount allocated in recent years to the state.

This article is posted in Financial Assistance .