This agreement provides funding to minnesota public facilities authority (mpfa)

This $35,035,000 Drinking Water State Revolving Fund (DWSRF) Formula Grant, awarded by the U.S. Environmental Protection Agency (EPA) on June 1, 2024, provides capitalization funding to the Minnesota Public Facilities Authority (MPFA) to administer the state's DWSRF program.

The DWSRF program enables MPFA to offer low-interest loans and other authorized assistance to public water systems across Minnesota for eligible drinking water infrastructure projects. These projects can include improvements to drinking water treatment, water distribution systems, source water supply, and finished water storage. Additionally, the grant funding supports MPFA's efforts to provide technical assistance to small water systems, as well as cover program administration and other allowable uses under the DWSRF program. The grant's performance period extends through June 30, 2027, with the goal of enhancing public health protection and water infrastructure resilience statewide.

Section 1452 of the safe drinking water act (sdwa) and infrastructure investment and jobs act (IIJA) PL 117-58 authorizes the state to utilize funds to further the health protection objectives of sdwa. This agreement will provide funds to capitalize the recipient's drinking water state revolving fund (dwsrf). As part of this agreement, the state ensures compliance with federal and state regulations, which are designed to protect public health. $140,000 of the minnesota FY 24 drinking water SRF grant allotment is being used for in-kind services. Specifically, $140,000 will be used to pay for an EPA contractor for area-wide optimization program (awop) services which will be taken out of the state program management (DF) set-aside. Minnesota's request for this in-kind service and withholding of funds is included in their state program management set-aside workplan (attached below).activities:the bulk of the state revolving fund (SRF) will be used for loans and other authorized assistance to public water systems for eligible projects, including improving drinking water treatment, water distribution, improving source of water supply, replacing or constructing finished water storage tanks, and other infrastructure projects needed to protect public health. The recipient may also use some of the funding for specific 'set-asides'; to provide technical assistance to small systems, program administration, state program management and other allowable uses.subrecipient:drinking water state revolving fund program is exempt from 2 CFR 200.332 subrecipient management requirements for subawards as provided in 2 CFR 1500. Program provides assistance in the form of loans.outcomes:the benefits of this grant will be to capitalize the recipient's dwsrf. The fund can then be used to increase technical, financial and managerial capacity of public water systems, and provide assurance of a cleaner and safer potable water supply by funding improvements to multiple water infrastructure projects. These public health benefits will be statewide.