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 in Federal Fiscal Years 2022-2026 through the Wisconsin Department of Natural Resources (DNR) Environmental Loans programs.

• BIL Funding Overview handout

The Clean Water Fund Program (CWFP) and Safe Drinking Water Loan Program (SDWLP) provide subsidized loans to municipalities for eligible wastewater and drinking water infrastructure projects. The standard loan interest rate is 55% of the market rate. Some municipalities may also be eligible for additional subsidy (principal forgiveness).

5-Year Funding Totals by Program

The fiscal year is designated by the calendar year in which it ends.

• Federal Fiscal Year (FFY) 2024 runs from 10/01/23 through 9/30/24.
• State Fiscal Year (SFY) 2024 runs from 7/01/23 through 6/30/24.

Overall Program Impacts

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

The corresponding state fiscal year CWFP and SDWLP Intended Use Plans (IUPs) provide detailed descriptions of the changes made to each program relating to the implementation of BIL.

• View IUPs and amendments at Project Lists & Intended Use Plans.

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. Refer to the annual IUPs for details on the CWFP affordability criteria and the SDWLP disadvantaged community criteria (shown in the table below) used to allocate Principal Forgiveness.

Changes to the PF methodology include significantly increasing the general PF caps.

• CWFP General PF cap – was $750,000, now is $2,100,000 per municipality, per SFY.
• SDWLP PF cap – was $500,000, now is $1,600,000 per municipality, per SFY.

Population

Median Household Income

200% Family Poverty Percentage

Population Decline

County Unemployment Rate

Lowest Quintile Household Income

Base Capitalization (Cap) Grants

Wisconsin implements a state revolving loan fund (Environmental Improvement Fund) that combines state funding with federal capitalization grants from the U.S. Environmental Protection Agency's 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.

• Applicants can compete for general CWFP PF and CWFP Priority PF, with the remainder of their project costs being covered by a regular CWFP subsidized loan.
• Applicants can compete for general SDWLP PF, with the remainder of their project costs being covered by a regular SDWLP subsidized loan.

Common CWFP projects:

• Collection system improvements, e.g., sewer replacement or rehabilitation
• Wastewater treatment system and plant/facility upgrades

Common SDWLP projects:

• Public drinking water treatment and distribution system upgrades
• Municipal well construction
• Storage facility replacements, e.g., water towers
• Watermain replacements
• Wellhouse rehabilitation

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 municipal wastewater treatment and collection system infrastructure projects that will achieve or maintain compliance with Wisconsin Pollutant Discharge Elimination System (WPDES) permits. Water quality-related urban storm water and urban nonpoint source runoff projects are also eligible. No project eligibility changes are planned.

Timing

Year 1 of BIL CWSRF Supplemental Funding was incorporated into the regular CWFP funding cycle for SFY 2023. The same 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

Funding will focus on water quality projects that will reduce/eliminate any detectable levels of any PFAS contaminant compound for which a surface water quality standard or recommended Wisconsin Department of Health Services groundwater standard exists.

• Applicants can compete for general CWFP PF, CWFP Priority PF, and Emerging Contaminants PF, with the remainder of their project costs being covered by a regular CWFP subsidized loan.

CWFP EC project ideas and examples:

• Treatment to remove PFAS from groundwater dewatering discharges associated with publicly owned sanitary sewer, storm sewer, or WWTP construction projects in areas with contaminated groundwater that has reasonable potential to exceed Wisconsin's water quality standards for PFOS or PFOA.
• Biosolids sampling and storage, processing, and/or disposal expenses incurred by facilities seeking to investigate or address PFAS in biosolids in accordance with Wisconsin's Interim Strategy for Land Application of Biosolids Containing PFAS.
• Public sanitary or storm sewer reconstruction or lining projects to reduce inflow and infiltration of groundwater or storm water contaminated with PFAS at concentrations that exceed the recommended groundwater PFAS standards published by the Wisconsin Department of Health Services.
• Landfill Leachate treatment to remove PFAS at publicly owned landfills prior to discharge to a sanitary sewer or waters of the state.
• Development and implementation of best management practices to reduce PFAS concentrations in storm water at publicly owned, PFAS-contaminated sites that are covered under an approved Wisconsin Pollutant Discharge Elimination System (WPDES) storm water permit.
• Treatment to remove PFAS at publicly owned treatment works (POTWs), eligible only where the applicant demonstrates in its facility plan that all practicable source reduction efforts have been exhausted.
• Groundwater remediation projects on publicly owned sites where PFAS impact or have a potential to impact water quality and the sites are covered under an approved non-point source management plan.

Ineligible CWFP EC projects:

• Privately owned projects.
• Projects where a privately owned responsible party exists and is able to pay to address the contamination.
• Sampling and analysis of effluent that is required by a WPDES permit.

Timing

Year 1 of BIL CWSRF EC Funding will be incorporated into the regular CWFP funding cycle for SFY 2024. A similar approach is planned for each of the following years of BIL funding.

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 and infrastructure projects that will achieve or maintain compliance with Safe Drinking Water Act (SDWA) requirements and focus on public health needs. No project eligibility changes are planned.

Timing

Year 1 of BIL DWSRF Supplemental Funding was incorporated into the regular SDWLP funding cycle for SFY 2023. The same 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

Uses

Funding will focus on water system projects that will reduce/eliminate any detectable levels of any PFAS contaminant compound included in any recommended Wisconsin Department of Health Services standards and/or Wisconsin DNR maximum contaminant levels in the water system.

• Applicants can compete for general SDWLP PF, Emerging Contaminants PF, and the Small and Disadvantaged Communities program for Emerging Contaminants (EC-SDC) grant funding, with the remainder of their project costs being covered by a regular SDWLP subsidized loan. There is no separate application for EC-SDC grant funding.

SDWLP EC project ideas and examples:

• Construction of a new treatment facility or upgrade to an existing treatment facility.
  • Costs associated with interim solutions/temporary/portable PFAS treatment systems might only be eligible if included with a funding request for a long-term solution. Rental or lease costs are eligible.
• Development of a new source (i.e., new/replacement well or intake for a public water system).
• Consolidation with another water system that does not have emerging contaminants present or has removal capability.
• Creation of a new community water system or extension of a distribution system to address unsafe drinking water provided by individual (i.e., privately owned) wells or surface water sources.
• Costs for planning, design and associated pre-project costs.
  • Eligible costs can include an alternatives analysis and non-routine sampling associated with project planning.
  • Costs are eligible as part of a funding request for a project that provides a long-term solution, not as stand-alone costs.
• Infrastructure related to pilot testing for treatment alternatives.
  • Costs are eligible as part of a funding request for a project that provides a long-term solution, not as stand-alone costs.
• Rental Costs will be determined on a case-by-case basis.

Ineligible SDWLP EC projects:

• Bottled water is not an eligible expense per federal program rules.
• Point of use treatment devices (i.e., filters) are only eligible if the device is the compliance treatment technology and the devices are owned and maintained by the public water system.

Timing

Year 2 of BIL DWSRF EC Funding and the EC-SDC grant funding will be incorporated into the regular SDWLP funding cycle for SFY 2024. The same approach is planned for each of the following years of BIL funding.

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

Uses

Funding will focus on lead service line replacements (both public and private) and related LSL inventory work. BIL requires the LSL PF to be awarded to disadvantaged communities and census tracts. All other applicants will be eligible for subsidized loan funds only.

• Applicants can compete for general SDWLP PF and LSL PF, with the remainder of their project costs being covered by a regular SDWLP subsidized loan.

Timing

Years 1 & 2 of BIL DWSRF LSL 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.

Federal Requirements

BIL Signage Requirement

The BIL Signage Requirement requires projects designated as federal equivalency and projects that receive Principal Forgiveness to install a physical sign at the construction site which displays the official Investing in America emblem. For more information on the requirement, including how to comply and guidance on how to design the sign, see BIL Signage.

BABA Requirement

The Build America, Buy America (BABA) Act requires projects designated as federal equivalency, lead service line projects, and emerging contaminants projects to use iron, steel, manufactured products, and construction materials that are produced in the United States. For more information, including how to comply and approved waivers, see BABA.

Stay Informed

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

Contact information

Clean Water Fund Program (CWFP) Coordinator: Lisa Bushby

Safe Drinking Water Loan Program (SDWLP) Coordinator: Noah Balgooyen

SDWLP Lead Service Line (LSL) Replacement Program Specialist: Kate Leja-Brennan

CWFP & SDWLP Emerging Contaminants (EC) Programs Specialist: Ryan Atkinson

BIL Funding Outreach and Technical Assistance (TA) Contacts