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

The Environmental Protection Agency (EPA) Region 3 awarded the Virginia Department of Environmental Quality a capitalization grant totaling $38.96 million under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), effective July 1, 2025, through June 30, 2032. This formula grant funds the establishment and operation of Virginia's Clean Water State Revolving Fund program, through which VDEQ provides low-interest financing to numerous subrecipients for planning, design, and construction of eligible water quality improvement and protection projects. The anticipated deliverables include comprehensive financing support for water quality infrastructure projects that improve and protect water quality while advancing public health outcomes for Virginia citizens.

Under this capitalization grant, VDEQ serves as the state administrator managing the revolving loan fund mechanism, with documented subawards including the H.L. Mooney Advanced Water Reclamation Improvements Project awarded to the Prince William County Service Authority. The CWSRF program structure creates a self-sustaining financing mechanism whereby loan repayments generate continued funding availability for future water infrastructure projects, enabling long-term state investment in wastewater treatment facilities, stormwater management systems, and other water quality management activities consistent with the Clean Water Act.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. 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 and public health. The intended beneficiaries include citizens throughout the commonwealth.