Infrasync Newsletter #22 - $31,517,992,426 in Funding for Water and Wastewater Projects

Funding Options for Water Infrastructure and Technology

Author

Andrew Swirsky
July 02, 2024

Economic pressures are greater than ever on water utilities. They are faced with ageing infrastructure, retiring workforces, and new regulations every year. While technology and improving our infrastructure offers relief it can be difficult to find the right funding sources for it.

The good news is there are BILLIONS of dollars out there for water project funding. It can be difficult to find, get the right application in, and get the award but the money is out there. If you are a water technology company or a utility you need to know the funding sources for your innovations and improvements.

Quick note - It's often difficult to find software or sensor specific grants. However, many utilities take a comprehensive approach in securing funding. For example, as part of a water loss reduction grant to replace pipelines, does it make sense to include sensors and software to monitor the before and after water loss in the project area? Those can be considered related projects costs and so included in the capital project vs having to get separate funding.

Additionally many states have recognized the impacts of modern Advanced Metering Infrastructure (AMI) programs and have special procedures to expedite those types of projects. See below for the example from Florida.

There are too many options to cover in this quick newsletter are also public-private partnerships and other funding sources available but that is past the scope of this newsletter. We will show you various federal and state programs to get started with.  

The United States federal and states governments offers numerous funding opportunities for water technology initiatives, supporting innovation, infrastructure improvements, and environmental protection. This blog post will explore key federal funding sources, grant programs, and application processes for water technology projects.

$4,329,101,000 - Clean Water State Revolving Fund (CWSRF)

The CWSRF provides low-interest loans for water quality protection projects, including:

  • Centralized and decentralized wastewater treatment

  • Nonpoint source pollution control

  • Watershed and estuary management

States can customize loan terms to meet the needs of small, disadvantaged communities.

$4,266,861,000 - Drinking Water State Revolving Fund (DWSRF)

The DWSRF focuses on funding infrastructure improvements in drinking water systems, with an emphasis on small and economically disadvantaged communities. 

$7,500,000,000 - Water Infrastructure Finance and Innovation Act (WIFIA)

WIFIA focused on offering loans with low, fixed interest rates and flexible terms. They may be separate or combined with other federal funding sources.

Various State Requirements

The federal programs are mostly funded at the national level but carried out at the state level. They give the states a lot of flexibility on exactly how and what to spend their allocations on. Just a few highlights for some of the larger states are below.

Texas

Drinking Water Requirements. New in 2024 because of legislation in 2023, an AWWA standard water loss audit, including water loss audit data validation must be completed.

Florida

Water Meter Only Projects have a simplified project process and application. It’s 16 steps to complete.

California

Has over 35 state funded grants and loan programs available. Covering everything from water loss, to desalination, to water reuse, to flood prevention, and others.

Because of the new Water loss performance standards were developed through a rulemaking that became effective in 2023 there is plenty of technology opportunity funding to support that.

$2,800,000,000 - Environmental Justice Grants

These grants provide financial assistance to eligible organizations for developing collaborative partnerships, identifying environmental and public health issues, and implementing projects related to water technology.

$26,300,000 - Grants.gov 

These are often one time or specialized grants to promote economic or technological advancement for specific federal initiatives. It’s not limited to just water but if you have a specific needs or technology this program may help continue the development and bring that into a utility.

 $4,800,000 - Water power innovation network

 $1,500,000 - Desalination and Water Purification Research Program

$20,000,000 - water smart projects (restricted to the existing 53 qualified applicants)

Department of Agriculture (USDA) Funding

The USDA offers several programs to support water technology initiatives, particularly in rural areas.

 SEARCH – Can be used for engineering and planning costs for communities under 2,500 people

 Water & Waste Disposal Loan & Grant Program - Can be used for capital projects for communities under 10,000 people

$12,595,054,000 - HUD CDBG Funding

HUD's Community Development Block Grants (CDBG) program can fund water and wastewater projects in eligible communities. It’s either state or federal administered depending on the community size. Because it can be used for housing, infrastructure, or disaster relief the total amount available is $12,595,054,000 for 2024.

 State - Cities with populations under 50,000 or Counties with populations under 200,000

Federal - Cities with populations of at least 50,000 or Urban counties with populations of at least 200,000

$676,426 - The Economic Development Administration (EDA)

This program helps communities upgrade their physical infrastructure, including water. EDA grants can cover planning and construction costs for projects that lead to job creation in the community. Award amounts range but have recently included grants up to $676,426 to the City of Longwood Florida for stormwater improvements.

Typical Application Processes

While specific application processes vary by program, most funding opportunities follow a similar general structure:

  1. Eligibility check: Determine if your organization and project meet the program's criteria.

  2. Notice of Funding Opportunity (NOFO): Review the NOFO for detailed information on application requirements, deadlines, and evaluation criteria.

  3. Registration: Ensure your organization is registered in the System for Award Management (SAM) and has an active DUNS number.

  4. Proposal development: Prepare a comprehensive proposal that addresses all required elements outlined in the NOFO.

  5. Submission: Submit your application through the specified portal, such as Grants.gov or the state specific program.

  6. Review and selection: Applications are evaluated based on merit criteria, and selections are made.

  7. Award notification: Successful applicants are notified and begin the post-award process.

Tips for Successful Applications

  1. Start early: Begin the application process well before the deadline to allow time for unexpected challenges.

  2. Collaborate: Partner with other organizations to strengthen your proposal and demonstrate community support.

  3. Align with program goals: Clearly show how your project aligns with the funding program's objectives.

  4. Provide detailed budgets: Include comprehensive, realistic budgets that justify all proposed expenses.

  5. Demonstrate sustainability: Explain how your project will continue beyond the grant period.

  6. Seek technical assistance: Many agencies offer technical assistance to help applicants navigate the process.

 

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Make sense to connect?

Are you working to help your utility or technology company take the next step forward? If you want to talk through a challenge or share something interesting your team did please shoot me a note at [email protected] or schedule a utility technology review here.