[Federal Register Volume 74, Number 101 (Thursday, May 28, 2009)]
[Notices]
[Pages 25531-25534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12470]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-8907-6]


State Allotment Percentages for the Drinking Water State 
Revolving Fund Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In this notice, EPA is announcing the revised Drinking Water 
State Revolving Fund (DWSRF) allotments that will be provided to the 
States, the District of Columbia, Puerto Rico, U.S. Territories, 
American Indian

[[Page 25532]]

Tribes, and Alaska Native Villages if the President's budget request 
for Fiscal Year 2010 is enacted. These allotments reflect the results 
from EPA's most recent Drinking Water Infrastructure Needs Survey and 
Assessment, which was released on March 26, 2009. The revised State 
allotment percentages will be the basis for distributing the DWSRF 
program appropriations to the States for the four years from Fiscal 
Years 2010 through 2013.

DATES: This notice is effective May 28, 2009.

FOR FURTHER INFORMATION CONTACT: For inquiries, contact Travis 
Creighton, Drinking Water Protection Division, Office of Ground Water 
and Drinking Water (4606M), Environmental Protection Agency, 1200 
Pennsylvania Ave., NW., Washington, DC 20460; telephone number: (202) 
564-3858; fax number: (202) 564-3757; e-mail address: 
<a href="/cdn-cgi/l/email-protection#b7f4c5d2ded0dfc3d8d999c3c5d6c1dec4f7d2c7d699d0d8c1"><span class="__cf_email__" data-cfemail="3b78495e525c534f5455154f495a4d52487b5e4b5a155c544d">[email protected]</span></a>. Copies of this document and information on 
the Drinking Water Infrastructure Needs Survey and Assessment and the 
DWSRF program can be found on EPA's Office of Ground Water and Drinking 
Water Web site at http://www.epa.gov/safewater/.

SUPPLEMENTARY INFORMATION: The 1996 Safe Drinking Water Act (SDWA) 
Amendments established a DWSRF program and Congress has appropriated 
$10.3 billion, in total, for the program since its inception through 
Fiscal Year (FY) 2009. Congress directed that allotments for FY 1998 
and each subsequent year would be distributed among States based on the 
results of an assessment by EPA of the relative infrastructure 
investment needs of the drinking water systems within each state (SDWA 
section 1452(a)(1)(D)(ii)), which must be conducted every four years.

EPA's Drinking Water Infrastructure Needs Survey and Assessment

    EPA's first assessment, which reflected 1995 survey data, was 
released in February 1997; the second assessment, which reflected 1999 
survey data, was released in February 2001; and the 2003 assessment was 
released in 2005. The 2007 Drinking Water Infrastructure Needs Survey 
and Assessment (Needs Assessment) was released on March 26, 2009 (EPA 
816-R-09-001).
    The 2007 Needs Assessment was completed in cooperation with the 
States. The States participated in both the design of the survey and in 
the collection of data. The survey examined the needs of water systems 
and used these data to determine the aggregate infrastructure 
investment needs of drinking water systems within each individual 
State. The survey included: All of the nation's 584 largest systems, 
each serving over 100,000 people; a statistical sample of 2,266 
systems, each serving 3,301-100,000 people; and a statistical sample of 
600 small water systems, each serving fewer than 3,301 people.
    The sample design for the survey and assessment produces a 
statistically-valid State-by-State bottom-line estimate of the total 
need, which reflects the capital costs for all drinking water 
infrastructure projects allowed for inclusion in the survey. The 2007 
Needs Assessment also presents capital needs for each State by system 
size and by category of need (i.e., treatment, distribution and 
transmission, storage, source, and ``other'').
    In general, an infrastructure project was included in the Needs 
Assessment if project documentation demonstrated that meeting the need 
would address the public health objectives of SDWA. The total State 
need includes both projects that are currently needed and future 
projects that will be needed over the next 20 years. Projects to 
correct immediate public health threats (e.g., replacing a deteriorated 
filter plant) are given the same weight in the assessment as less 
critical needs (e.g., replacing a storage tank that is expected to 
reach the end of its useful life in five years). The Needs Assessment 
excluded capital projects that are ineligible for DWSRF program 
assistance, such as dams, reservoirs and projects needed solely for 
growth.
    The 2007 Needs Assessment found that the total national need is 
$334.8 billion (Table 1). This estimate represents the needs of the 
approximately 52,000 community water systems and 21,400 not-for-profit 
non-community water systems that are eligible to receive DWSRF program 
assistance. These systems are found in all 50 States, the District of 
Columbia, Puerto Rico, on American Indian lands and in Alaska Native 
Villages, and the Virgin Island and Pacific Island territories.

 Table 1--2007 Drinking Water Infrastructure Needs Survey and Assessment
                              20-Year Needs
------------------------------------------------------------------------
                                                                Need
                       Type of need                          (billions)
------------------------------------------------------------------------
States....................................................        $324.0
Territories...............................................           0.9
American Indian and Alaska Native Villages................           2.9
Costs for Proposed and Recent Regulations.................           7.0
                                                           -------------
    Total National Need...................................        334.8
------------------------------------------------------------------------
Note: Numbers may not total due to rounding.

    The total national need also includes $7.0 billion in capital needs 
associated with recently promulgated and proposed regulations, as 
identified in EPA Economic Analyses accompanying the rules. Although 
these needs are included in the total national need, they were not 
apportioned to the States based on the unanimous recommendation of the 
State representatives who participated in the survey design. The States 
expressed concern that the methods available for allocating the costs 
of these more recent or proposed regulations would not yet be 
represented in the capital improvement plans of water systems at the 
time of the 2007 survey. The total State need, which is the figure that 
EPA will use to calculate the State allotments, includes only the needs 
of the 50 States, the District of Columbia, and Puerto Rico. The 2007 
Needs Assessment estimates that the total State need is $324.0 billion.

Allocation Method

    On October 31, 1996, EPA solicited public comment on six options 
for using the results of the first Drinking Water Infrastructure Needs 
Survey and Assessment to allocate DWSRF program funds to the States (61 
FR 56231). On March 18, 1997, EPA announced its decision to allocate 
DWSRF program funds for FYs 1998 through 2001 appropriations based on 
each State's proportional share of the total eligible needs for the 
States as derived from the 1995 Needs Assessment (62 FR 12900). EPA 
used this same method when allocating DWSRF program funds for FYs 2002 
through 2005, utilizing the results of the 1999 Needs Assessment, and 
for FYs 2006 through 2009, utilizing the results of the 2003 Needs 
Assessment. EPA has made the determination that it will continue to use 
this method for allocating DWSRF program funds for FYs 2010 through 
2013 appropriations, utilizing the results of the 2007 Needs 
Assessment.
    The funds available to the States will be the level of funds 
appropriated by

[[Page 25533]]

Congress, less the national set-asides, which includes an allocation 
for American Indian and Alaska Native Village water systems. Of the 
funds available to States, the SDWA includes specific allocations for 
the Pacific Islands, the Virgin Islands, and the District of Columbia. 
Each State will receive an allotment of DWSRF program funds based on 
its proportional share of the total State need ($324.0 billion), 
provided that each State receives a minimum allocation of one percent 
of the funds available to States, as required by the SDWA. The 2007 
Needs Assessment found that 20 States, Puerto Rico, and the District of 
Columbia each had less than one percent of the total national need; for 
2010 to 2013, each of these DWSRF grantees will be eligible for one 
percent of the annual DWSRF funds made available to States (or, in 
aggregate, 22 percent of the total DWSRF funds made available to 
States).

President's Request for Allotments for American Indian and Alaska 
Native Water Systems and for United States Territories

    The President's budget request for FY 2010 includes an increase in 
the minimum funding to be made available to American Indian and Alaska 
Native water systems from 1.5% to 2.0% of the total funding 
appropriated for the DWSRF. The President also requested an increase in 
the minimum funding to be made available to United States Territories 
from 0.33% to 1.5% of the total available to the States, the District 
of Columbia and Puerto Rico.

Allocation of Funds

    Table 2 contains each State's expected DWSRF program allotment 
based on an appropriation of $1,500,000,000 and national set-aside 
assumptions. The appropriation amount is based on the President's 
budget request of $1,500,000,000 for FY 2010. The national set-asides 
for Fiscal Year 2010 include funds for American Indian and Alaska 
Native Village water systems at the level of 2.0% percent of the total 
appropriation or $30,000,000 for FY 2010 under the President's budget 
request. An additional national set-aside for FY 2010 includes 
$2,000,000 for monitoring for unregulated contaminants. If funds are 
appropriated for the DWSRF program at the level of $1,500,000,000, the 
total funds available to the States, the District of Columbia, and 
Territories would equal $1,468,000,000. Because the percentages are 
based on allotting all available funds annually to the States 
regardless of the year in the four-year cycle, they can be used for 
general planning purposes for the entire four-year cycle. Once the 
appropriated amount and national set-asides are known, a State's 
allotment can be estimated by subtracting the national set-asides from 
the total funds available for allotment and then applying the 
appropriate percentage shown below. For succeeding years, EPA will 
annually notify each State of their allotment from a specific fiscal 
year's appropriation after the final budget has been passed.

   Table 2--DWSRF State Percentages and Dollar Allotments Based on the
  President's Budget Request for FY 2010 and the 2007 Needs Assessment
------------------------------------------------------------------------
                                           FY 2010       2010 allotment
                State                   allotment ($)          (%)
------------------------------------------------------------------------
Alabama.............................        18,196,000              1.24
Alaska..............................        14,680,000              1.00
Arizona.............................        29,483,000              2.01
Arkansas............................        22,215,000              1.51
California..........................       137,318,000              9.35
Colorado............................        26,038,000              1.77
Connecticut.........................        14,680,000              1.00
Delaware............................        14,680,000              1.00
Florida.............................        47,932,000              3.27
Georgia.............................        34,688,000              2.36
Hawaii..............................        14,680,000              1.00
Idaho...............................        14,680,000              1.00
Illinois............................        55,411,000              3.77
Indiana.............................        24,485,000              1.67
Iowa................................        25,060,000              1.71
Kansas..............................        17,960,000              1.22
Kentucky............................        21,191,000              1.44
Louisiana...........................        27,742,000              1.89
Maine...............................        14,680,000              1.00
Maryland............................        22,777,000              1.55
Massachusetts.......................        27,367,000              1.86
Michigan............................        44,591,000              3.04
Minnesota...........................        24,635,000              1.68
Mississippi.........................        15,278,000              1.04
Missouri............................        28,375,000              1.93
Montana.............................        14,680,000              1.00
Nebraska............................        14,680,000              1.00
Nevada..............................        14,680,000              1.00
New Hampshire.......................        14,680,000              1.00
New Jersey..........................        31,361,000              2.14
New Mexico..........................        14,680,000              1.00
New York............................        96,724,000              6.59
North Carolina......................        38,497,000              2.62
North Dakota........................        14,680,000              1.00
Ohio................................        47,168,000              3.21
Oklahoma............................        18,239,000              1.24
Oregon..............................        14,680,000              1.00
Pennsylvania........................        43,011,000              2.93

[[Page 25534]]

 
Puerto Rico.........................        14,680,000              1.00
Rhode Island........................        14,680,000              1.00
South Carolina......................        14,680,000              1.00
South Dakota........................        14,680,000              1.00
Tennessee...........................        16,315,000              1.11
Texas...............................        93,293,000              6.36
Utah................................        14,680,000              1.00
Vermont.............................        14,680,000              1.00
Virginia............................        24,885,000              1.70
Washington..........................        37,477,000              2.55
West Virginia.......................        14,680,000              1.00
Wisconsin...........................        25,308,000              1.72
Wyoming.............................        14,680,000              1.00
District of Columbia................        14,680,000              1.00
U.S. Territories*...................        22,020,000              1.50
                                     -----------------------------------
    Total Funds Available to the         1,468,000,000  ................
     States, the District of
     Columbia, Puerto Rico, and U.S.
     Territories....................
------------------------------------------------------------------------
American Indian & Alaska Native             30,000,000  ................
 Water Systems......................
Monitoring for Unregulated                   2,000,000  ................
 Contaminants.......................
                                     -----------------------------------
    Total SRF Appropriation.........     1,500,000,000  ................
------------------------------------------------------------------------
* Virgin Islands, American Samoa, Guam, and the Commonwealth of the
  Northern Mariana Islands.


    Dated: May 14, 2009.
Paul F. Simon,
Acting Director, Office of Ground Water and Drinking Water.
[FR Doc. E9-12470 Filed 5-27-09; 8:45 am]
BILLING CODE 6560-50-P


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