This agreement funds a capitalization grant for the recipient's clean water state revolving fund program.activities:the recipients of these funds provide low interest financing to numerous…

The Environmental Protection Agency (EPA) Region 2 awarded a Clean Water State Revolving Fund (CWSRF) capitalization grant (CFDA 66.458) totaling $24.8 million to the Puerto Rico Department of Natural and Environmental Resources (DNER), effective October 1, 2025, through September 30, 2032. This capitalization grant establishes a long-term financing mechanism through which DNER provides low-interest financing to municipalities and utilities for planning, design, and construction of water quality improvement and protection projects throughout Puerto Rico.

Under this award, DNER administers CWSRF accounts and maintains comprehensive accounting and financial systems to track all program transactions and activities. The Puerto Rico Infrastructure and Financing Authority, as a sub-recipient, deposits capitalization grant funds into CWSRF accounts and manages the accounting infrastructure for program operations while providing required reporting to EPA. The anticipated deliverables include financing for wastewater treatment facilities, water quality management activities, and related infrastructure projects, with expected outcomes of improved water quality and enhanced public health protection for Puerto Rico's citizens. Loan repayments from subrecipients will generate sustained funding availability for future eligible water infrastructure projects.

This agreement funds a capitalization grant for the recipient's clean water state revolving fund program.activities:the recipients of these funds provide low interest financing to numerous subrecipients.subrecipient:sub award activities include planning, design, and construction of eligible water quality improvement and protection projects. Also, the puerto rico infrastructure and financing authority receives capitalization grant funds and deposits them into the cwsrf accounts, maintains the accounting system for the operation of the program; maintains fiscal and financial records, and provides prdner (as required) with reports summarizing all transactions with the cwsrf.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.