The EPA Left $20 Million Unawarded in the Sewer Overflow and Stormwater Reuse Municipal Grants Program

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Date Issued

Monday, February 10, 2025

Submitting OIG

Environmental Protection Agency OIG

Agencies Reviewed/Investigated

Environmental Protection Agency

Report Number

25-P-0014

Report Description

The EPA did not consistently manage its Sewer Overflow and Stormwater Reuse Municipal Grants, or OSG, Program in accordance with some applicable laws, regulations, policies, and guidance. We found that, as of January 10, 2024, the EPA had not awarded approximately $20 million, or about 18 percent, of the approximately $110 million allocated to states within the OSG Program for fiscal years 2020 through 2022. In addition, the EPA failed to meet its statutory requirement to submit a report to Congress, provided insufficient justification on required merit review worksheets, and allowed a cost share to be imposed on a grant that should have been exempt because the communities to benefit were rural or financially distressed.

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 2 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$20,238
Update the implementation guidance for the Sewer Overflow and Stormwater Reuse Municipal Grants Program to include procedures to award and reallocate funds in a timely manner, and work with regions to accelerate the award of program funds.
2	No	$0	$0
Improve program reporting in the Sewer Overflow and Stormwater Reuse Municipal Grants Program by: a. Completing the required report to Congress. b. Populating established data storage platforms with information to facilitate reporting on the program, such as that required by Congress. c. Establishing controls to ensure that in the future regions post all program grant files, including annual and final reports, to the appropriate established electronic mechanism. d. Updating the program implementation guidance to include electronic document storage requirements.