This agreement provides a capitalization grant, funded by the infrastructure investment and jobs act (IIJA) (PL 117-58), for the recipient's drinking water state revolving fund (DWSRF) program

The Environmental Protection Agency Region 2 awarded the Puerto Rico Department of Health $28.65 million on October 1, 2025, under the Drinking Water State Revolving Fund (CFDA 66.468), a capitalization grant funded by the Infrastructure Investment and Jobs Act to support lead service line replacement and related activities in Puerto Rico's drinking water infrastructure.

The recipient will provide low-interest-rate financing to eligible public water systems for planning, design, and construction of drinking water improvement projects focused on lead service line replacement. The Puerto Rico Infrastructure and Financing Authority, as sub-recipient, will develop a complete service line inventory to comply with EPA Lead and Copper Rule Revisions, including locating and mapping lead service lines. Where service lines are identified for removal, activities include complete removal of lead service lines (public and privately owned portions) or galvanized iron or galvanized steel service lines that are currently or have previously been downstream of lead components, and replacement with pipe meeting 40 CFR 143 requirements and state and local plumbing and building codes. The Puerto Rico Infrastructure and Financing Authority will also deposit capitalization grant funds into DWSRF accounts, maintain the program's accounting system and fiscal records, and provide required reports to the Puerto Rico Department of Health summarizing all DWSRF transactions.

The award runs from October 1, 2025, through September 30, 2032, with performance throughout Puerto Rico. The funding furthers public health protection objectives of the Safe Drinking Water Act.

Funds will be used for DWSRF-eligible lead service line replacement projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. The award furthers the public health protection objectives of the safe drinking water act (SDWA). Activities:the recipient of these funds will provide low interest rate financing to eligible public water systems for the costs associated with the planning, design, and construction of eligible drinking water improvement projects. The recipient may also use some of the funding for specific set-asides. Funds will be used for DWSRF-eligible lead service line replacement projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. Subrecipient:subaward activities include development of complete service lines inventory to comply with the usepa lead and copper rule revisions, including locating and mapping lead service lines. If service lines are identified to be removed: complete removal of lead service lines (public and privately owned portion) or service lines made of galvanized iron or galvanized steel (that are currently or have previously been downstream of lead components), and replacement with a pipe that meets the requirements established under 40 CFR 143 and which complies with state and local plumbing codes and or building codes. Also, the puerto rico infrastructure and financing authority receives capitalization grant funds and deposits them into the DWSRF accounts, maintains the accounting system for the operation of the program; maintains fiscal and financial records, and provides PR DOH (as required) with reports summarizing all transactions with the DWSRF.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible lead service line projects and associated activities. Deliverables will also be used to increase the lead service line-related technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state.