Safe Drinking Water Act (SDWA)

Program Goals 
The 1996 reauthorization to the Safe Drinking Water Act created the Drinking Water State Revolving Loan Fund Program (SRF) based on the SRF used for clean water. This program provides capitalization grants from EPA to States to capitalize a revolving loan fund for water infrastructure projects and created funding for a number of set-asides to the program such as source water protection and delineation, State program administration, well head protection, and technical assistance to small systems. Under Section 1452(i) of the Safe Drinking Water Act Reauthorization of 1996 made available a maximum of one-half of one percent of the Drinking Water SRF for drinking water construction projects on Indian lands.

Type of Assistance
Amount of grant determined by a national formula.

Region 4 Eligible Applicant
(Use and Use Restrictions)
States:  Through the DWSRF the states make loans to assist construction of drinking water systems.  The capitalization grant is deposited in the DWSRF which issued to provide loans and other types of financial assistance to eligible public water systems.  A state may elect to use up to 31 percent of the capitalization grant for  other eligible activities, including 4 percent for administration.  States may also elect to transfer up to one-third of the DWSRF capitalization grant o the Clean Water State Revolving Fund (CWSRF) or an equivalent amount from the CWSRF to the DWSRF.

Tribes:  Under the Indian Set-Aside Program, section 1452(i) of the  SDWA allows an amount of up to 1½ percent of  the national capitalization grants to be made available to Indian tribes for construction grants for water supply facilities.

Beneficiary Eligibility
States:  Eligible public water systems that are either publicly or privately owned community drinking water systems and nonprofit organizations.  Financial assistance under this section may be used by a public water system only for expenditures (no including monitoring operation, and maintenance expenditures) of a type or category which the Administrator has determined, through guidance, will facilitate compliance with national primary drinking water regulations applicable to the system under section 1412 or otherwise significantly further the health protection objectives of this title. The funds shall not be used for the acquisition of real property or interests therein, unless the acquisition is integral to a project authorized by this paragraph and the purchase is from a willing seller.

Tribes:  The determination of the projects to be funded under the Indian Set- Aside program is based upon a prioritization system established by the Regional office.  It starts with the score assigned by the Indian Health Service Sanitation Deficiency System (SDS), then points are added or deleted for such criteria as operator certification, capacity development, etc.

Fiscal Year 2001 Funding (Regional)
States:  $98 million was allocated to the eight states by formula.  (Regional) 20% state match is required.  States must also provide a match or demonstrate a credit for state funded eligible activities to receive federal funds for certain support activities. 

Tribes:  $398,200 was provided to the Region for Indian Set-Aside construction grants, and a similar amount is expected in FY 2002.

Application and Award Process
States:  Applications and Intended Use Plans should be submitted to Award Process  Region 4 no later than June 30th of the year following the year of appropriation to allow sufficient time for review and process applications prior to the September 30 reallotment deadline. 
 
Tribes:  Selection of projects to be funded under the Indian Set-Aside program is made in the first quarter of the fiscal year.  The Selection is made from the most recent update of the IHS SDS list, which is released by IHS HQ  in November.  The Nashville Area IHS generally tries to have its update complete by mid June.  Therefore, any tribe that wishes to have a project considered for Indian Set-Aside funding needs to ensure that the project is included in the June update of the SDS, and that it be developed so as to achieve maximum number of SDS points.  Additional information on the SDS system can be provided by the Nashville Area IHS at (616) 736-2503.

Regional Contact
Carl Biemiller, DWSRF Coordinator, Grants and Technical Assistance Section, Water Management Division 
61 Forsyth Street 
Atlanta, Georgia 30303 
Phone: 404/562-9341 
Email:     mailto:biemiller.carl@epq.gov