Drinking Water Projects to Support Increased Population
Program Total: $400,000,000 (this allocation is a planning amount and is subject to change)
The EPA regulation implementing the DWSRF program provides that projects needed primarily to serve future population growth are not eligible uses of the DWSRF. A project that is intended primarily to address public health or regulatory compliance issues for the existing service population may be sized for a ‘‘reasonable’’ amount of population growth over the useful life of the project.
ARPA does not include the same limitation as the SDWA. Accordingly, the final rule provides that recipients may use SLFRF funds for projects that are needed to support increased population in certain cases. ARPA limits projects to those investments that are ‘‘necessary.’’ As discussed above, Treasury interprets this to mean that the investments must be:
(1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which for some eligible project categories may include a reasonable projection of increased need, whether due to population growth or otherwise and
(2) a cost-effective means for meeting that need, taking into account available alternatives.
For this eligible use category, expansion of drinking water service infrastructure, the project must also be projected to be sustainable over its estimated useful life.
Projects of the type that meet the eligibility requirements of 40 CFR 35.3520 other than the requirement of subparagraph (b)(1) of such regulation to address present or prevent future violations of health-based drinking water standards, if the following conditions are met:
(A) The project is needed to support increased population, with need assessed as of the time the project is undertaken;
(B) The project is designed to support no more than a reasonable level of projected increased need, whether due to population growth or otherwise;
(C) The project is a cost-effective means for achieving the desired level of service; and
(D) The project is projected to continue to provide an adequate level of drinking water over its estimated useful life
(vi) Dams and reservoirs. Rehabilitation of dams and reservoirs if the following conditions are met:
- The project meets the requirements of 40 CFR 35.3520 other than the following requirements:
(1) The prohibition on the rehabilitation of dams and reservoirs in 40 CFR 35.3520(e)(1) and (3); and
(2) The requirement in 40 CFR 35.3520(b)(1) that the project is needed to address present or prevent future violations of health-based drinking water standards, provided that if the dam or reservoir project does not meet this requirement, the project must be needed to support increased population, with need assessed as of the time the project is undertaken, and the project must be projected to continue to provide an adequate level of drinking water over its estimated useful life;
(B) The primary purpose of the dam or reservoir is for drinking water supply;
(C) The project is needed for the provision of drinking water supply, with need assessed as of the time the project is initiated;
(D) The project is designed to support no more than a reasonable level of projected increased need, whether due to population growth or otherwise; and
(E) The project is a cost-effective means for achieving the desired level of service.
All ARPA applicants must have an organization, or subrecipient, that will serve as the fiduciary agent and assume overall responsibility for the grant. Eligible ARPA applicants include:
- A unit of local government
Strong Labor Standards in Water, Sewer, and Broadband Construction
As stated in the Supplementary Information to the interim final rule, Treasury encourages recipients to carry out investments in water, sewer, or broadband infrastructure in ways that produce high-quality infrastructure, avert disruptive and costly delays, and promote efficiency. Treasury encourages recipients to use strong labor standards, including project labor agreements (PLAs) and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. Treasury also recommends that recipients prioritize in their procurement decisions employers who can demonstrate that their workforce meets high safety and training standards (e.g., professional certification, licensure, and/or robust in-house training), that hire local workers and/or workers from historically underserved communities, and who directly employ their workforce or have policies and practices in place to ensure contractors and subcontractors meet high labor standards. Treasury further encourages recipients to prioritize employers (including contractors and subcontractors) without recent violations of federal and state labor and employment laws.
Furthermore, among other requirements contained in 2 CFR 200, Appendix II, all contracts made by a recipient or subrecipient in excess of $100,000 with respect to water, sewer, or broadband infrastructure project that involve employment of mechanics or laborers must include a provision for compliance with certain provisions of the Contract Work Hours and Safety Standards Act, 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Treasury will continue to seek information from recipients on their workforce plans and water, sewer, and broadband projects undertaken with SLFRF funds. This reporting will support transparency and competition by enhancing available information on the services being provided.
The Office of Planning and Budget will collect reporting information required by Treasury regarding Strong Labor Standards in Water, Sewer, and Broadband Construction based on the Reporting and Compliance Guide. Recipients of State and Local Fiscal Recovery Funds under Water, Sewer, and Broadband Infrastructure should be prepared to respond accordingly.
Policy Requirements: All applicants are subject to reporting and auditing requirements per federal guidelines and OPB terms and conditions.
Recipients of SFRF must alight to policy requirements under 2 CFR 200.
The following 2CFR policy requirements apply to 21.027 assistance listing for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), Coronavirus State Fiscal Recovery Fund (CSFRF) and Coronavirus Local Fiscal Recovery Fund (CLFRF):
- Subpart B, General provisions
- Subpart C, Pre-Federal Award Requirements and Contents of Federal Awards
- Subpart D, Post Federal; Award Requirements
- Subpart E, Cost Principles
- Subpart F, Audit Requirements
*Additional requirements may be placed on awards are outlined in an executed terms and conditions agreement to accept the award.
Post Award Information:
These funds will be made available for reimbursement for eligible activity through a modified reimbursement method. Please review our post award FAQs for more information on reimbursements.
In addition to the application, applicants will be required to upload the following (all of which can be found within the application):
- template is provided on our website and within the application upload section for you to refer to as you complete a cost-effectiveness analysis for your project(s).
- Vendor Management Form and W-9
- Tool for Assessing Risk
- SAM.gov Registration
- Project Timeline
- Detailed Budget Worksheet
- Letters of Support (Optional)- Letters of support will only be reviewed if uploaded at the time of application
There is no match requirement, but match funds will be part of the scoring criteria.
Program Category Considerations
- Funds may be used for rehabilitation of dams and reservoirs if the primary purpose of the dam or reservoir is for drinking water supply and the rehabilitation project is necessary for continued provision of drinking water supply
- The project must in any case be designed to support no more than a reasonable level of projected increased need.
- The recipient must also determine that the project is cost-effective, i.e., that there are not significantly superior alternatives that are available, taking into consideration the relative costs and benefits of the project as compared to those alternatives.