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Water: Allotments

DWSRF Territorial Set-Aside Program

The Safe Drinking Water Act (SDWA), as amended in 1996, established the Drinking Water State Revolving Fund (DWSRF) to make funds available to drinking water systems to finance infrastructure improvements. The Act also authorizes EPA to set-aside up to 0.33 percent, of the amount available for the DWSRF grants to States, for grants to improve the infrastructure of drinking water systems located in:

  • Virgin Islands,
  • American Samoa,
  • Guam, and
  • the Northern Mariana Islands.

Community water systems, and non-profit, non-community water systems, are eligible to have projects funded.

Most types of projects that improve the health of the public being served by the drinking water system are eligible for funding. Some examples are projects that:

  • rehabilitate or develop a source of drinking water,
  • or install or upgrade treatment, storage, or transmission facilities.

Funds may also be used to conduct project feasibility studies, engineering design work, and for project administration. EPA may award a grant to either the government of one of the four territories, or directly award a grant to a public water system in a territory.

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Method of Allotment of Program Funds

The funds set-aside each year are allotted, by formula, among the four territories, on the basis of

  • population (5%);
  • geographical area (2.5%);
  • the number of community water systems and non-transient non-community water systems (14%);
  • the number of transient non-community water systems (3.5%);
  • and the “infrastructure needs” of the water systems in each territory as identified in the most current Drinking Water Infrastructure Needs Survey (75%).

Each territory is guaranteed a minimum allotment which is the greater of $150,000 or 7.5% of the total funds available for the program.

EPA Headquarters calculates the allotments. The funds are then transferred to, and managed by, EPA’s Offices in Region 2 (for the Virgin Islands) and Region 9 (for American Samoa, Guam, and the Northern Mariana Islands). The Regions either select and make direct awards for drinking water system projects, or award grants to the territorial governments who will make the project selections and awards.

The allotments are calculated twice each federal fiscal year. The initial calculation is made after the federal budget figures are released for the upcoming fiscal year. These allotments are “tentative” figures since they are based on the amount of funds that are requested for the program, rather than the amount actually appropriated. They provide the territories, and the two EPA Regions, with planning targets for the coming fiscal year. When EPA actually receives an appropriation for the fiscal year, the allotments are recalculated if necessary (if the funds appropriated are different than what was requested), and become final allotments. To view the most recent, or the historical, allotments, check on the links below.

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