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

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Date Issued

Wednesday, February 12, 2025

Submitting OIG

Environmental Protection Agency OIG

Agencies Reviewed/Investigated

Environmental Protection Agency

Report Number

25-P-0015

Report Description

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 Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
Provide clarification to state agency staff on their discretion to prioritize non- per- and polyfluoroalkyl substances over per- and polyfluoroalkyl substances projects, based on the most serious risk to human health.
2	No	$0	$0
Provide supplemental guidance to the EPA regions and the state revolving fund managers on processing transfers between the Drinking Water State Revolving Fund and Clean Water State Revolving Fund involving Infrastructure Investment and Jobs Act funds to address emerging contaminants.
3	No	$0	$0
Provide additional training on the supplemental guidance to EPA regional and state agency staff in a timely manner.