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Infrastructure Investment and Jobs Act (IIJA) Guidance



PROGRAM DESCRIPTON, GOALS AND INTENT

The Pennsylvania General Assembly in its 1988 session passed the Pennsylvania Infrastructure Investment Authority Act (March 1, 1988, P.L. 82, No. 16), which was subsequently amended in 1992 (December 18, 1992, P.L.1137, No 149, in 2005, July 14, P.L. 299, No. 51 and in 2013, June 19, P.L.51 No. 16 and codified at 35 P.S. Section 751.1 et seq.) (the “PENNVEST Act”). This Act created the Pennsylvania Infrastructure Investment Authority (“PENNVEST”) to provide affordable financing on projects with a water quality impact for the citizens of the Commonwealth.

On November 15, 2021, the Infrastructure Investment and Jobs Act of 2021 (November 15, 2021, P.L. 117-58) (“IIJA”) was signed into law by President Biden making $50B available to the United States Environmental Protection Agency (“EPA”) to improve the Nation’s drinking water, wastewater and storm water infrastructure. Under IIJA, PENNVEST received funding through the Clean Water State Revolving Fund (“CWSRF”) for emerging contaminants and through the Drinking Water State Revolving Fund (“DWSRF”) for lead service line replacement and emerging contaminants, among other things. 

On July 11, 2022, Act 54 of 2022 (July 11, 2022, P.L. 40, No. 54) (“Act 54”) was signed into law by Governor Wolf amending the Pennsylvania Fiscal Code, and providing for the implementation of the Commonwealth’s 2022-2023 budget, among other things. Under Section 1740-E of Act 54, PENNVEST was authorized to administer certain funds, as specifically set forth in Subsection (a)(2) of 1740-E, in accordance with IIJA. Act 54 further provides that the appropriation of funds set forth in Subsection (a)(1) of 1740-E shall not be subject to 35 P.S. §§751.10(e), 10(i), or any other conflicting provision of the PENNVEST Act, and that PENNVEST shall issue guidance on the implementation of Subsections (a)(1) and (a)(3) of 1740-E.

Section 751.10(e) of the PENNVEST Act authorizes the award of grants only when the PENNVEST Board, in its sole discretion, determines that the financial condition of the recipient is such that repayment of the loan is unlikely. The PENNVEST Board applies a formula to determine affordable user rates for a particular community and the resulting impact of the cost of each project on system-wide user rates, or where there are no user rates, the ability of the recipient to repay a loan (“PENNVEST Financial Capacity Analysis”). After performing the PENNVEST Financial Capacity Analysis, if the PENNVEST Board determines the recipient will be able to repay a loan, the award of grant, principal forgiveness or extended loan or bond purchase terms are not offered to the recipient.

Section 751.10(i) of the PENNVEST Act establishes limitations on the total assistance that may be approved by the PENNVEST Board for any single project, with separate project funding limitations for storm water projects.

The goal and intention of this guidance is to apply the requirements of Act 54 to articulate the use of IIJA funds to address emerging contaminants and the presence of lead in Pennsylvania’s wastewater and drinking water systems through the PENNVEST Emerging Contaminant, Lead Service Line and Lead Testing and Remediation Program (the “Program”) in an effort to improve public health and safety.



FUNDING AVAILABILITY

Projects will be afforded the opportunity to compete for grant, principal forgiveness and extended term financial assistance award with other grant, principal forgiveness and extended term financial assistance award eligible projects in the funding round. This may result in a prorated award of grant or principal forgiveness combined with an extended term financial assistance award, if applicable.



ELIGIBLE APPLICANTS

Applicants may be public or private entities that have an eligible:

  • emerging contaminants project
  • lead line replacement project in distinct areas within a larger system that are adequately mapped


ELIGIBLE PROJECTS

DWSRF Emerging Contaminant:
Eligible DWSRF emerging contaminants projects must otherwise be eligible under PENNVEST’s DWSRF Program, and the primary purpose must be to address emerging contaminants in drinking water, including perfluoroalkyl and polyfluoroalkyl substances (“PFAS”) or any contaminant listed on EPA’s Contaminant Candidate Lists, Contaminant Candidate List 1 through Draft Contaminant Candidate List 5.

DWSRF Lead Service Line:
Eligible lead service line projects must otherwise be eligible under the PENNVEST program and include those projects that replace lead service lines, lead goosenecks, pigtails, and connectors.

CWSRF Emerging Contaminant:
Eligible CWSRF emerging contaminants projects must otherwise be eligible under PENNVEST’s CWSRF Program, and the primary purpose must be to address emerging contaminants, defined as substances and microorganisms, including manufactured or naturally occurring physical, chemical, biological, radiological, or nuclear materials, which are known or anticipated in the environment, that may pose newly identified or re-emerging risks to human health, aquatic life, or the environment. These substances, microorganisms, or materials can include many different types of natural or manufactured chemicals and substances such as those in some compounds of personal care products, pharmaceuticals, industrial chemicals, pesticides, and microplastics.



FINANCING TERMS

DWSRF Emerging Contaminant:
Applications for eligible DWSRF emerging contaminant projects will not be subject to the PENNVEST Financial Capacity Analysis. Rather, funding will be prioritized for PFAS projects and will be awarded on a first come, first serve basis until annual allotment dollars are spent. Regardless of the recipient’s ability to repay a potential loan, 100% of the requested funding will be awarded in the form of principal forgiveness, which does not require the recipient to repay the funding provided. Only if demand exceeds the remaining available balance for DWSRF emerging contaminant projects at any particular Board meeting, will principal forgiveness funding be prorated across all eligible projects, with the balance of the project cost supplemented with loan funds to offer a funding award sufficient to cover the cost of the entire project.

DWSRF Lead Service Line:
Applications for eligible DWSRF lead service line projects will compete for funding awards based upon financial need with the other projects in the competitive pool for that round of funding awards. Based on the results of the PENNVEST Financial Capacity Analysis, the DWSRF lead service line project will be eligible for consideration of principal forgiveness or extended loan or bond purchase terms.

CWSRF Emerging Contaminant:
Applications for eligible CWSRF emerging contaminant projects will not be subject to the PENNVEST Financial Capacity Analysis. Rather, funding will be awarded on a first come, first serve basis until annual allotment dollars are spent. Regardless of the recipient’s ability to repay a potential loan, 100% of the requested funding will be awarded in the form of principal forgiveness, which does not require the recipient to repay the funding provided. Only if demand exceeds the remaining available balance for CWSRF emerging contaminant projects at any particular Board meeting, will principal forgiveness funding be prorated across all eligible projects, with the balance of the project cost supplemented with loan funds to offer a funding award sufficient to cover the cost of the entire project.




APPLICATION PROCEDURE

All applications for IIJA and WIIN funds will be received electronically through the PENNVEST Apply On-Line Portal, which can be found at Apply Online (pa.gov), and processed through traditional workflows.

IIJA funding will be made available to applicants starting with the August 3, 2022 cutoff for the October 19, 2022 PENNVEST Board Meeting. Future PENNVEST Board Meeting and Application Cut-Off Dates can be found on the PENNVEST website, Board Meetings (pa.gov).




SIGNAGE REQUIREMENTS

Per the conditions of utilizing funding through the Bipartisan Infrastructure Law (BIL), funding recipients must place a sign at construction sites that displays the "Investing in America" emblem and identify the project as being funded by BIL. The sign must be in an easily visible location that can be directly linked to the worksite and must be maintained in good condition throughout the construction period.

All signs should be printed 72 in (W) x 48 In (H).

The following links provide print-ready versions of this signage including PENNVEST and EPA logos.

BIL signage with blue background and PENNVEST logo.

BIL Signage with white background and PENNVEST logo.