Bipartisan Infrastructure Law Funding

The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, will provide over $900 million in additional funding during the next five years through the Wisconsin Department of Natural Resources (DNR) Environmental Loans programs (Clean Water Fund and Safe Drinking Water Loan Programs).

• BIL Funding Overview handout

5-Year Funding Totals by Program

The BIL provides significant funding through the Wisconsin Clean Water Fund Program (CWFP) and Safe Drinking Water Loan Program (SDWLP) for each of the next five federal fiscal years (2022-2026).

• The Federal Fiscal Year (FFY) runs from October 1 of one calendar year through Sept. 30 of the next; it is designated by the calendar year in which it ends. FFY 2022 runs from 10/1/21 through 9/30/22.
• The State Fiscal Year (SFY) begins on July 1 of each year and ends on June 30 of the following year. SFY 2023 runs from 7/1/22 through 6/30/23.

Overall Program Impacts

The SFY 2023 CWFP and SDWLP Intended Use Plans (IUPs) provide detailed descriptions of the changes made to each program relating to the implementation of BIL. Details regarding BIL funding for Emerging Contaminants (i.e., PFAS) and Lead Service Line (LSL) Replacements can be found in the amendments to the SFY 2023 SDWLP IUP.

• View IUPs and amendments on the Project Lists & Intended Use Plans page.

Principal Forgiveness (PF) Eligibility

The DNR revised the principal forgiveness (PF) allocation methodology and Priority Evaluation & Ranking Formula (PERF) scoring in the SFY 2023 IUPs to make it more meaningful. The previous criteria used to allocate PF was primarily determined by population size and median household income. For consistency, the PF scoring methodology is now the same for both programs.

The table used to determine the PF percentage now includes almost triple the number of tiers to reflect a municipality's score more accurately and to smooth the transition between tiers. Changes to the PF methodology include adding more affordability metrics or expanding upon them and significantly increasing the general PF caps.

• The SDWLP PF cap is $1,500,000 per municipality, per SFY.
• The CWFP General PF cap is $2,000,000 per municipality, per SFY.

The additional metrics added to the CWFP and SDWLP are 200% family poverty percentage and lowest quintile household income. Population trend data and county unemployment rate were added to the SDWLP and expanded upon in the CWFP. Refer to the IUPs for details on the disadvantaged/affordability criteria (shown in the table below).

Population

Median Household Income

200% Family Poverty Percentage

Population Decline

County Unemployment Rate

Lowest Quintile Household Income

Base Capitalization Grants

Wisconsin implements a state revolving loan fund (Environmental Improvement Fund) that combines state funding with federal capitalization (Cap) grants from the U.S. Environmental Protection Agency (EPA) Clean Water and Drinking Water State Revolving Funds (SRFs). Going forward, these established annual capitalization grants will be referred to as regular or base funding.

The BIL Supplemental funding added to the existing annual appropriations represents an increase in total funding capacity and significantly increases the total amount of principal forgiveness available.

CWFP Supplemental Cap Grant

	Total	Principal Forgiveness (49% required)
Year 1 CWFP Supplemental	$48,116,000	$23,576,840
Year 2 CWFP Supplemental	$56,351,000	$27,611,990

Uses

Funding will primarily address wastewater treatment system upgrades and collection system improvements. Water-quality-related storm water and non-point runoff projects are also eligible. No project eligibility changes are planned.

Timing

Year 1 CWFP Supplemental Funding will be incorporated into the regular CWFP funding cycle for SFY 2023. A similar approach is planned for each of the following years of BIL funding.

CWFP Emerging Contaminants (EC) Cap Grant

	Total	Principal Forgiveness (100% required)
Year 1 CWFP Emerging Contaminants	$2,527,000	$2,527,000
Year 2 CWFP Emerging Contaminants	$5,749,000	$5,749,000

Uses

Implementing the BIL CWFP Emerging Contaminants (EC) funding requires the DNR to set up a new funding program. The Environmental Loans Section is engaged with the DNR Bureaus of Water Quality and Remediation & Redevelopment to determine eligible projects, establish priorities, set funding parameters, and develop application and loan closing requirements. Funding is expected to primarily address PFAS (perfluoroalkyl and polyfluoroalkyl substances) concerns in wastewater, but other contaminants may also be eligible.

• It is likely Clean Water EC funding will be integrated into the existing CWFP similarly to how we award Priority Principal Forgiveness (Priority PF).
• We anticipate demand will exceed available funding, so awards may be a mix of CWFP EC PF and regular CWFP loan and PF dollars.

The following are Clean Water EC project ideas and examples:

• PFAS monitoring in storm water and wastewater (influent, effluent, sludge).
• Storm water – permitted & non-permitted discharges.
• Projects at WWTPs to remove PFAS from effluent or biosolids.
• Landfills – capping landfills or runoff/leachate collection projects.
• Contaminated sites that are a source of PFAS – capping, in-situ treatment, removal of contaminated materials.

Timing

Our goal is to have the Clean Water EC program in place for SFY 2024 applications. Further information will be provided as it becomes available.

SDWLP Supplemental Cap Grant

	Total	Principal Forgiveness (49% required)
Year 1 SDWLP Supplemental	$30,666,000	$15,026,340
Year 2 SDWLP Supplemental	$36,053,000	$17,665,970

Uses

Funding will primarily address public drinking water system infrastructure including municipal well construction, drinking water treatment systems, and distribution systems. No project eligibility changes are planned.

Timing

The first year of BIL SDWLP Supplemental funding will be incorporated into the regular SDWLP funding cycle for SFY 2023. A similar approach is planned for each of the following years of BIL funding.

SDWLP Emerging Contaminants (EC) Cap Grant

	Total	Principal Forgiveness (100% required)
Year 1 SDWLP Emerging Contaminants	$12,877,000	$12,877,000
Year 2 SDWLP Emerging Contaminants	$13,082,000	$13,082,000

The Emerging Contaminants Amendment to the SFY 2023 SDWLP IUP was published for public comment on November 21, 2022. In December, the Wisconsin DNR held a webinar discussing the new BIL-funded Emerging Contaminants (EC) program. The recording and slides are available on the Project Lists and IUPs page under the SFY 2023 SDWLP heading.

Uses

The BIL SDWLP Emerging Contaminants funding program will focus on PFAS (per- and polyfluoroalkyl substances) concerns in drinking water.

• EPA guidance for the Small and Disadvantaged Communities program for emerging contaminants (EC-SDC), formerly Water Infrastructure Improvements for the Nation (WIIN) grant funding, was released in February 2023. This grant funding will be integrated with funding available through the SDWLP in SFY 2024 and beyond.
• We anticipate demand will exceed available funding, so awards in years 2-5 may be a mix of SDWLP EC PF, regular SDWLP loan and PF dollars, and EC-SDC grant funds.

Timing

The SFY 2023 SDWLP Emerging Contaminants application deadline was January 31, 2023. The second year of Drinking Water EC funding will be incorporated into the regular SDWLP funding cycle for SFY 2024. A similar approach is planned for each of the following years of BIL funding.

Given that the program details were not available at the SFY 2024 Intent to Apply (ITA) submittal deadline, we are offering flexibility for those who may have missed the deadline. If you are interested in applying but did not submit an ITA with Priority Evaluation and Ranking Formula (PERF) information by the October 31, 2022 deadline, or you would like to submit another ITA/PERF with a different project scope, you can request a waiver to this deadline (for SFY 2024 only).

• Email your ITA/PERF deadline variance request to Ryan Atkinson at Ryan.Atkinson@Wisconsin.gov by June 1, 2023 (earlier is encouraged) and include the WAMS ID of the person who will submit the ITA/PERF.
• Submit SFY 2024 SDWLP Applications for EC projects with all required documentation though the online system by June 30, 2023. Include approvable plans and specifications and the additional SDWLP EC PERF (Form 8700-399), specific to EC Principal Forgiveness.

You must submit a complete ITA/PERF through the online system before you can start filling out the application. DNR strongly recommends that you give yourself at least a couple of weeks to complete the online application. To help applicants through the application process, information, instructions, and guidance documents are on our Online Systems page.

SDWLP Lead Service Line (LSL) Replacement Cap Grant

	Total	Principal Forgiveness	Loans/Set-Asides
Year 1 SDWLP LSL Replacements	$48,319,000	$23,676,310	$24,642,690
Year 2 SDWLP LSL Replacements	$81,203,000	$39,789,470	$41,413,530

The LSL Amendment to the SFY 2023 SDWLP IUP was published for public comment on November 16, 2022. In December, the Wisconsin DNR held a webinar discussing the new BIL-funded Lead Service Line (LSL) Program. The recording and slides are available on the Project Lists and IUPs page under the SFY 2023 SDWLP heading.

Uses

Funding will be available in this category for lead service line replacements (both public and private) and related LSL inventory work. The expansion of eligibility and different funding requirements for the BIL LSL Replacement funding required the DNR to restructure the existing Private LSL Replacement Program. Specifically, the BIL requires that 49% of the LSL Replacement Cap Grant be awarded as PF to disadvantaged municipalities with the remaining 51% utilized for loans and set-asides. This is a shift from our current approach of providing 100% PF for private LSL replacement projects. The Environmental Loans Section is working on updating guidance and web pages to better reflect all the changes to LSL funding.

Timing

The first year of BIL SDWLP Lead Service Line funding will be integrated into the regular SDWLP SFY 2024 funding cycle. A similar approach is planned for each of the following years of BIL funding.

Given that the program details were not available at the SFY 2024 Intent to Apply (ITA) submittal deadline, we are offering flexibility for those who may have missed the deadline. If you are interested in applying but did not submit an ITA with Priority Evaluation and Ranking Formula (PERF) information by the October 31, 2022 deadline, or you would like to submit another ITA/PERF with a different project scope, you can request a waiver to this deadline (for SFY 2024 only).

• Email your ITA/PERF deadline variance request to Becky Scott at Rebecca.Scott@wisconsin.gov by June 1, 2023 (earlier is encouraged) and include the WAMS ID of the person who will submit the ITA/PERF.
• Submit SFY 2024 SDWLP Applications for LSL projects with all required documentation though the online system by June 30, 2023. Include the additional updated SDWLP LSL PERF (Form 8700-383) and complete the Environmental Review (ER) module in the online system.

You must submit a complete ITA/PERF through the online system before you can start filling out the application. DNR strongly recommends that you give yourself at least a couple of weeks to complete the online application. To help applicants through the application process, information, instructions, and guidance documents are on our Online Systems page.

Federal Requirements

BIL Signage Requirement

On December 8, 2022, the EPA issued guidance for implementing a physical signage requirement for BIL-funded projects. The recipient is required to place a physical sign at the construction site supported by BIL funding which displays the official Building a Better America emblem. For more information on the requirement, including projects affected by the requirement, how to comply, and guidance on how to design the sign, see the Environmental Loans BIL Signage page.

BABA Requirement

Congress passed the Build America, Buy America (BABA) Act concurrently with BIL/IIJA. The BABA Act requires recipients of federal infrastructure funding to use iron, steel, manufactured products, and construction materials that are produced in the United States. For more information, including projects affected by the requirement, how to comply, and approved waivers, see the Environmental Loans BABA page.

Stay Informed

Sign up for Environmental Loans E-Bulletins to get updates about BIL requirements, the BABA Act, federal equivalency projects, the new Lead Service Line and Emerging Contaminants programs, and related topics.

Contact information

For information on this topic, contact the appropriate Program Coordinator:

Lisa Bushby, Clean Water Fund Program Coordinator

Noah Balgooyen, Safe Drinking Water Loan Program Coordinator