Provide 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 (EPA) Region 9 awarded the State of California Water Resources Control Board a $268.6 million capitalization grant under the Drinking Water State Revolving Fund (CFDA 66.468) program, effective July 1, 2025. Funded through the Infrastructure Investment and Jobs Act (IIJA), this award supports California's DWSRF program to advance Safe Drinking Water Act (SDWA) public health protection objectives. The recipient will deploy these funds to provide low-interest rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements. The grant remains available for obligation through June 30, 2030, with pre-award costs approved retroactively to July 1, 2025.

In addition to financing drinking water projects, the State of California may allocate specified set-aside funding for technical assistance to small water systems, operator certification activities, and source water protection initiatives. The anticipated outcomes include increased technical, managerial, and financial capacity of public water systems statewide, with primary beneficiaries being California citizens. No subawards are included in this assistance agreement. The award represents standard formula grant allocation methodology for state-administered revolving funds, which leverage federal capitalization grants to create sustainable, long-term financing mechanisms for water infrastructure development.

Description

The purpose of this grant is to provide 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 award furthers the public health protection objectives of the safe drinking water act (sdwa). This grant agreement provides full federal funding in the amount of $268,618,000.00. Pre-award costs are approved back to 7/1/25. 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:no subawards are included in this assistance agreement.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.