Frequent Questions
1. What is the Territorial Set-Aside Grant Program?
2. What type of projects are eligible for funding?
3. How is the grant program administered?
4. How are the funds allotted among the four territories?
5. What is the difference between Tentative and Final allotments?
1. What is the Territorial Set-Aside Grant Program?
The Drinking Water Infrastructure Grants Territorial Set-Aside Program provides grant funds to improve the infrastructure of drinking water systems located in four US territories: the Virgin Islands; American Samoa; Guam; and the Northern Mariana Islands. It is a component of the Drinking Water State Revolving Fund.
[see the Safe Drinking Water Act (SDWA) §1452(j)]
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2. What type of projects are eligible for funding?
Most projects that improve a community, or non-profit non-community, drinking water system are eligible to be funded with the territorial program funds. Some examples are projects to: rehabilitate or develop sources of drinking water; install or upgrade treatment facilities; install or upgrade storage facilities; install or replace transmission or distribution pipes; and replace aging water system infrastructure. Funds can also be used to conduct project feasibility studies, engineering design work, and project administration.
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3. How is the Grant Program administered?
All available program funds are allotted, by formula, among the four territories and provided to the appropriate EPA Regions. The Regional offices may directly make awards for projects, or they may award the funds to the government of one of the territories, which will then be responsible for making individual project awards.
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4. How are the funds allotted among the four territories?
The funds set-aside each year are allotted, by formula, among the four territories, on the basis of territorial population (5%); territorial geographical area (2.5%); the number of community water systems and non-transient non-community water systems in the territory (14%); the number of transient non-community water systems in the territory (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. The Drinking Water Infrastructure Needs Survey is currently revised every four years and the identified needs may change significantly from one survey to the next. Since the Needs Survey is the primary factor in determining each year's allotments, there may be significant changes in a territory’s allotments every fourth year.
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5. What is the difference between Tentative and Final allotments?
EPA calculates the allotments twice for each fiscal year. Tentative allotments are based on the amount of funding that is requested in the federal budget for the upcoming federal fiscal year. The budget is normally released in February of each year and the Tentative allotments are calculated a month or two later. Once EPA receives an appropriation from Congress for the new fiscal year, we recalculate the allotments based on the funds that are actually available. These are the Final allotments. This step normally occurs within a few months after the start of the new federal fiscal year. When the amount of funds appropriated is the same as the budget request, the Tentative and Final allotments are identical.
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