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The U.S. Environmental Protection Agency (“EPA”) Office of Inspector General (“OIG”) released a report on February 27 titled:
Perspectives on Capacity: Managing Drinking Water State Revolving Fund Infrastructure Investment and Jobs Act Funds (“Report”)
look report No.24-E-0022.
OIG says it created this report Identify:
- Opinion on the Management Capacity of the Drinking Water State Revolving Fund Agency’s Infrastructure, Investment and Employment Act Fund (“IIJA”).and
- Obstacles that administrators of the Drinking Water State Revolving Fund Agency believe limit their ability to manage IIJA t funds.
of report Focuses on the Drinking Water State Revolving Fund (“DWSRF”).
The Water and Drinking Water State Revolving Fund (“SRF”) is utilized for water, wastewater, and stormwater infrastructure upgrades. These are designed to provide low-interest, flexible financing for water infrastructure. These funds are administered by the Arkansas Department of Natural Resources in Arkansas, which is part of the Arkansas Department of Agriculture.
IIJA is said to be delivering the largest investment in drinking water and wastewater infrastructure in U.S. history. This includes repairing and updating the country’s water infrastructure. Funding for IIJA’s water projects is provided through the SRF program for drinking water and wastewater.
OIG says it used the survey to determine state agencies’ views on their ability to manage IIJA funds.
Capacity used by OIG report is described as having three related aspects:
- organizational
- finance
- human capital
Therefore, it is stated that a lack of competency in any of the three aspects may adversely impact a state agency’s ability to effectively manage federal grant funds. Of course, this includes his IIJA funding.
OIG says responses to the investigation include:
- Most state DWSRF administrators believe that their state agencies have the necessary organizational capacity to manage the DWSRF IIJA funds awarded to their states.
- Several DWSRF administrators expressed concerns related to financial capacity (citing concerns about meeting state fiscal matching requirements/identifying projects eligible for DWSRF IIJA funding).
- The state DWSRF administrator said it is difficult to identify projects eligible for lead service line replacement funding.
- A few DWSRF administrators believed that their agencies had sufficient staff and guidance to manage DWSRF IIJA funds.
- Common obstacles limiting the ability to manage DWSRF IIJA funds include workplace controls and inadequate federal guidance.
- IIJA’s inadequate guidance regarding the provisions of the Build America, By America Act was cited.
- Several state DWSRF administrators cited a lack of coordination with EPA as an obstacle.
copy of report You can download it here.
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