This agreement funds a capitalization grant for the recipient's clean water state revolving fund program

The Environmental Protection Agency (EPA) Region 8 awarded the Montana Department of Environmental Quality a capitalization grant of $9.35 million under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), effective July 15, 2025, through July 14, 2032. This formula grant funds the establishment and operation of Montana's Clean Water State Revolving Fund program, which provides low-interest financing to municipalities and local entities for planning, design, and construction of water quality improvement and infrastructure projects. The capitalization grant enables the state to deploy federal funds as loans to subrecipients throughout Montana, creating a self-sustaining financing mechanism whereby loan repayments generate continued funding availability for future water infrastructure investments.

Through this program, Montana will deliver comprehensive financing and technical support for eligible water quality management activities, including wastewater treatment facility improvements, stormwater management systems, and other infrastructure projects that improve and protect water quality and public health. The state serves as the primary administrator and distributor of these federal funds, making subawards to municipalities, water systems, and community-based organizations across Montana. The anticipated outcomes include improved water quality and environmental conditions across the state, with intended beneficiaries encompassing citizens throughout Montana who depend on enhanced water infrastructure and protection initiatives.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:this grant agreement capitalizes the state SRF program, allowing the state SRF program to make loans (SUBAWARDS) to communities for infrastructure improvements. 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 and public health. The intended beneficiaries include citizens throughout the state.