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 North Dakota Department of Environmental Quality received a $29.88 million capitalization grant from the Environmental Protection Agency (EPA) Region 8 under the Drinking Water State Revolving Fund program (CFDA 66.468) on July 25, 2025. This award, funded through the Infrastructure Investment and Jobs Act (IIJA), capitalizes North Dakota's Drinking Water State Revolving Fund (DWSRF) to provide low-interest rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements. The grant also supports set-aside activities including technical assistance to small water systems, operator certification programs, and source water protection initiatives, with an ultimate completion date of June 30, 2032.

The capitalized DWSRF enables North Dakota to issue loans to participating communities for drinking water infrastructure projects. Sub-awardees include the Cities of Minot, Kenmare, Grafton, Jamestown, Napoleon, West Fargo, Portland, Mandan, and Colfax, which are utilizing these funds for water main replacements, water main extensions, water main looping, water system replacements, water tower and distribution improvements, and related watermain projects. These financing mechanisms support the Safe Drinking Water Act's public health protection objectives by increasing the technical, managerial, and financial capacity of public water systems throughout North Dakota while delivering critical drinking water infrastructure improvements to state residents.

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, including but not limited to providing technical assistance to small systems, for operator certification activities, and source water protection activities. Subrecipient:this grant agreement capitalizes the state SRF program, allowing the state SRF program to make loans (SUBAWARDS) to communities for infrastructure improvements. Per the 2025 EPA HQ guidance, the SUBAWARDS placed into loans (not direct grants) are not to be included in the subaward total. North dakota buys community debt (their loans), so no direct grant or UGG apply. Therefore, the subaward total is zero. Nggs will not take $0 input. Therefore, HQ indicated that we should not worry about implementing their new guidance this season. We should work with our regional grants office to find an alternate approach. Therefore, we reverted to the 7/7/2025 decision to have section E.9.a include the 'other' from section and the SF424, which includes federal amount and state match.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible public health-related projects. Deliverables will also be used to increase the technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state.