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

Environmental Protection Agency Region 8 awarded the North Dakota Department of Environmental Quality $28.65 million on January 1, 2026, under the Drinking Water State Revolving Fund program (CFDA 66.468) to capitalize the state's DWSRF with emphasis on lead service line replacement and associated identification, planning, design, and replacement activities.

The recipient will provide low-interest-rate financing to eligible public water systems for planning, design, and construction of drinking water improvement projects, with specific focus on DWSRF-eligible lead service line replacement projects and related activities. The award also funds set-asides for eligible activities directly connected to lead service line work. Anticipated deliverables include financing, planning, design, and construction of eligible lead service line projects and activities to increase technical, managerial, and financial capacity of public water systems. Expected outcomes include public health protection serving citizens throughout North Dakota.

The funding, derived from the Infrastructure Investment and Jobs Act, supports the Safe Drinking Water Act's public health protection objectives. Performance extends from January 1, 2026, through December 31, 2032, with work performed in North Dakota.

The North Dakota Department of Environmental Quality submitted an Intended Use Plan identifying capital projects eligible for funding and describing set-aside activities. At least one sub-recipient, the City of Mandan (Mandan Park District), received a sub-award on February 4, 2026, for lead service line replacement.

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:the state has submitted an intended use plan (IUP) as part of the application package for this capitalization grant. This agreement will provide funds to capitalize the recipient's DWSRF with an emphasis on lead service line replacement and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. This IUP contains a list of the capital projects that may receive funding from this grant and a description of the eligible activities funded by the set-asides. 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.