This agreement funds a capitalization grant for the recipient's drinking water state revolving fund (DWSRF) program with a primary purpose to address emerging contaminants

Environmental Protection Agency Region 5 awarded the Minnesota Public Facilities Authority $3.909 million on March 1, 2026, under the Clean Water State Revolving Fund program (CFDA 66.458). This capitalization grant transfers Clean Water State Revolving Fund resources to the Drinking Water State Revolving Fund to address emerging contaminants in Minnesota's water systems. The full amount will be reprogrammed and awarded to Minnesota through the Drinking Water State Revolving Fund Emerging Contaminants Grant (4E-03E03336-0). The Minnesota Public Facilities Authority will loan the funds entirely as additional subsidy to subrecipients for cost-eligible projects addressing emerging contaminants under Section 1452 of the Safe Drinking Water Act. Anticipated deliverables include financing, planning, design, and construction of water quality improvement and protection projects, with expected outcomes to improve and protect water quality statewide with an emphasis on emerging contaminants. The award period runs through September 30, 2026. Place of performance is Minnesota.

Section 302 of the safe drinking water act (SDWA) amendments of 1996, 42 U.S.C. 300J-12, and subsequent PUB. L.109-54, title II, AUG 2, 2005, 119 stat. 530 allows for the transfer of clean water state revolving funds (CWSRF) funds to the DWSRF at minnesota's request. The minnesota public facilities authority has provided such a request and has provided the necessary documentation. These CWSRF funds ($3,909,000) will be awarded as EPA in-kind and after grant acceptance the funds will be reprogrammed and awarded to minnesota in the DWSRF emerging contaminants grant (4E-03E03336-0). The minnesota public facilities authority will loan the funds out in minnesota entirely as additional subsidy, consistent with the law, to protect water quality and public health in minnesota and to vitalize the economy through the creation of jobs. This process satisfies the statutory requirement that the CWSRF award be made prior to the funds transfer. Activities:the full allotment will be transferred to the DWSRF emerging contaminant grant (4E-03E03336-0) with the minnesota public facilities authority. The activities are to provide low interest financing to numerous subrecipients for cost eligible under section 1452 of the SDWA and the primary purpose must be to address emerging contaminants. Subrecipient:no subawards are included in this assistance agreement.outcomes:anticipated deliverables include financing planning, design, and construction of eligible water quality improvement and protection projects. The expected outcomes are to improve and protect water quality with an emphasis on emerging contaminants. The intended beneficiaries include citizens throughout the state.