Report: EPA Guidance Addresses Implementation Requirements for Infrastructure Investment and Jobs Act for Drinking Water State Revolving Fund Emerging Contaminants Funding, but Clarification Is Needed Before More States Spend Funds

Report # 25-P-0015, February 12, 2025

Why We Did This Report

The U.S. Environmental Protection Agency Office of Inspector General conducted this audit to determine the extent to which the EPA provided state agency officials with guidance for the use of the Drinking Water State Revolving Fund for emerging contaminants, in accordance with Infrastructure Investment and Jobs Act, or IIJA, requirements and related federal implementation guidance. The Act appropriates $4 billion in supplemental appropriations to address emerging contaminants in drinking water through the Drinking Water State Revolving Fund.
 

Summary of Findings

EPA guidance generally addresses IIJA Drinking Water State Revolving Fund, or DWSRF, emerging contaminants provisions. These provisions include focusing on projects that address per- and polyfluoroalkyl substances, or PFAS. However, the EPA’s guidance does not detail allowable ranking and funding levels of non-PFAS projects. Further, the EPA guidance does not adequately describe how to process transfers between different state revolving funds.

Without adequate guidance, states may inconsistently process transfers between their state revolving funds.

Report Materials

• At a Glance - 25-P-0015 (pdf) (1.37 KB)

•   Full Report - 25-P-0015 (pdf) (1.37 KB)