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

The Environmental Protection Agency (EPA) Region 2 awarded $38.56 million to the Puerto Rico Department of Natural and Environmental Resources under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458) effective October 1, 2025, through September 30, 2030. This capitalization grant, funded through the Infrastructure Investment and Jobs Act (IIJA), establishes a long-term financing mechanism whereby the Puerto Rico Infrastructure and Financing Authority deposits grant funds into CWSRF accounts and provides low-interest financing to subrecipients for eligible water quality improvement and protection projects throughout Puerto Rico.

The primary products and services delivered include financing, planning, design, and construction support for water infrastructure projects that improve and protect water quality while benefiting public health across Puerto Rico. The recipient agency maintains comprehensive accounting systems, fiscal and financial records, and provides required transaction reports to EPA documenting all CWSRF activities. By leveraging federal capitalization grant funds as low-interest loans to municipalities and utilities, the CWSRF creates a self-sustaining financing mechanism supporting wastewater treatment facilities, stormwater management systems, and other eligible water quality management activities consistent with the Clean Water Act.

Activities:the recipient 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:the 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 puerto rico.