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Federal Equivalency

Clean Water Fund Program and Safe Drinking Water Loan Program

If the DNR designates one or more of your projects as federal equivalency, your municipality must meet some additional federal requirements for those projects.

What is federal equivalency?

Every year the Clean Water Fund Program (CWFP) and Safe Drinking Water Loan Program (SDWLP) each receive a capitalization grant from the U.S. Environmental Protection Agency (EPA). Since the State Revolving Funds (SRFs) contain a mixture of federal capitalization grant funds, state match and loan repayments as well as revenue bond proceeds in the case of leveraged programs like Wisconsin's, the federal government needs a system to track and report some of the funding as coming from the federal grants. In order to do this, the DNR designates projects in an amount equivalent to the annual capitalization grants as federal equivalency projects.

More projects will need to be designated as federal equivalency because the Bipartisan Infrastructure Law (BIL), also known as Infrastructure Investment and Jobs Act (IIJA), is expected to bring over $900 million in additional federal funds to Wisconsin's state revolving programs during the next five years (State Fiscal Years 2023-2027, note that any unused funding can be "rolled forward" beyond SFY 2027).

What are the additional requirements?

Municipalities constructing federal equivalency projects must do the following, as applicable to their projects. To certify compliance, municipalities must complete and submit the Federal Equivalency Projects Assurances and Certification (Form 8700-201).

Comply with all of the following:

  • Administration of the Clean Air Act and the Federal Water Pollution Control Act of 1973, (Executive Order 11738)
    • Section 306 of the Clean Air Act, 42 U.S.C. §7606 et seq.
    • Section 508 of the Clean Water Act, 33 U.S.C. §1368 et seq.
  • Archaeological and Historic Preservation Act of 1974 (P.L. 93-291, as amended) 16 U.S.C. §469a-1
  • Build America, Buy America Act (BABA), P.L. 117-58, §§ 70901-52
  • Civil Rights Laws
    • Title VI of the Civil Rights Act of 1964 (P.L 88-352), 42 U.S.C. §2000d et seq.
    • CWFP only – Section 13 of the Federal Water Pollution Contract Act Amendments of 1972
    • Section 504 of the Rehabilitation Act of 1973, 29 U.S.C §794
    • The Age Discrimination Act of 1975, 42 U.S.C. §6102 et seq.
  • Clean Air Act Conformity (P.L. 95-95, as amended) 42 U.S.C. §7506(c)
  • Coastal Barriers Resources Act (P.L. 97-348) 16 U.S.C. §3501 et seq.
  • Coastal Zone Management Act (P.L. 92-583, as amended) 16 U.S.C. §1451 et seq.
  • Debarment and Suspension (Executive Order 12549)
  • Demonstration Cities & Metropolitan Development Act (P.L. 89-754, as amended) 42 U.S.C. §3331 et seq.
  • Endangered Species Act (P.L. 93-205, as amended) 16 U.S.C. §1531 et seq.
  • Enhancing Public Awareness of SRF Assistance Agreements "Signage Requirement" (EPA Office of Water Memo dated June 3, 2015)
  • Farmland Protection Policy Act (P.L. 97-98) 7 U.S.C. §4201 et seq.
  • Federal Single Audit Act (2 CFR 200 Subpart F - Audit Requirements)
  • Fish and Wildlife Coordination Act (P.L. 85-624, as amended) 16 U.S.C. §661
  • Floodplain Management (Executive Order 11988, as amended by Executive Order 12148)
  • National Historic Preservation Act of 1966 (P.L. 89-665, as amended) 54 U.S.C. §300101 et seq.
  • NEPA-like Environmental Review (National Environmental Policy Act). Note that the State Environmental Review Process (SERP) conducts a NEPA-like environmental review that is applied to all projects receiving SRF funding.
  • Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment (2 CFR 200.216)
  • Promoting the Use of Small, Minority, & Women-owned Businesses (Executive Orders 11625, 12138, & 12432)
  • Protection and Enhancement of the Cultural Environment (Executive Order 11593)
  • Protection of Wetlands (Executive Order 11990, as amended by Executive Order 12608)
  • Uniform Relocation Assistance and Real Property Acquisition Policies Act (P.L. 91-646, as amended)
  • Wild & Scenic Rivers Act (P.L. 90-542, as amended) 16 U.S.C. §1271 et seq.
  • CWFP only – Comply with all Architectural and Engineering (A/E) Procurement requirements, 40 U.S.C. §1101 et seq. Municipalities that are unsure or do not meet the A/E procurement requirements should contact the DNR to discuss the alternative options that are available. The requirements of 40 U.S.C. §1101 et seq. are:
    • Public announcement of the solicitation (e.g. a Request for Qualifications);
    • Evaluation and ranking of the submitted qualifications statements based on established, publicly available criteria (e.g. identified in the solicitation);
    • Evaluation criteria should be based on demonstrated competence and qualification for the type of professional services required (e.g. past performance, specialized experience, and technical competence in the type of work required);
    • Discussion with at least three firms to consider anticipated concepts and compare alternative methods for furnishing services;
    • Selection of at least three firms considered to be the most highly qualified to provide the services required;
    • Contract negotiation with the most highly qualified firm to determine compensation that is fair and reasonable based on a clear understanding of the project scope, complexity, professional nature, and the estimated value of the services to be rendered; and
    • In the event that a contract cannot be negotiated with the most highly qualified firm, negotiation continues in order of qualification.

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Has my project been designated as federal equivalency?

The DNR will indicate on the corresponding Project Priority List (PPL) which projects meet the criteria to be automatically designated as federal equivalency.

Beginning with the State Fiscal Year 2026 funding cycle, a municipality's eligible project(s) will be designated as federal equivalency if the following criteria are met:

  • For the SDWLP, if the municipality's population is ≥ 20,000.
  • For the CWFP, if the municipality's population is ≥ 20,000.
  • Emerging contaminants (i.e. PFAS) or lead service line projects that receive BIL/IIJA funding must comply with equivalency requirements, regardless of population size.

Unique Entity ID (SAM)

Municipalities with a federal equivalency designated project must have an active Unique Entity Identifier (UEI) from SAM.gov. Review time to register as a new entity in SAM.gov will depend on the system's ability to verify information included in your original submission.

Contact Information

Direct questions to:

Casey Sweeney, CWFP and CWSRF policy analyst and federal liaison

Suzy Hasheider, SDWLP and DWSRF policy analyst and federal liaison

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