By Emma Copenhaver, Project Analyst, UNC Environmental Finance Center
In the aftermath of Hurricane Helene, many utilities in western North Carolina are seeking funding and support from state and federal agencies. Accessing these resources is critical for
With so many funding options available to utilities, finding a fit that balances affordability concerns, optimizes utility management, and addresses challenges unique to a system can be challenging. Utilities established by and serving tribal nations have access to specific federal funding to help build, upgrade, and maintain water and wastewater infrastructure. These funding streams are tailored to meet the specific needs of tribal utilities by expanding project eligibilities and making funds available through grants.
Tribal Set-Asides from the SRF Program
The State Revolving Fund (SRF) program establishes one potential funding stream. Each year, the federal government provides states with a capitalization grant that they may use to provide low-interest loans to utilities for water and wastewater projects. Before that funding is distributed to states, 2% of the total grant for clean and drinking water projects is set aside specifically for tribal utility projects, which federally recognized tribes may access through the appropriate agencies. The funding set aside for drinking water (the Drinking Water Infrastructure Grants Tribal Set Aside Program, or DWIG-TSA) projects is administered by EPA, and the funding set aside for clean water projects (the Clean Water Indian Set Aside Grant Program, or CWISA) is administered by Indian Health Services (IHS). Both programs provide funding entirely through grants.
Federally recognized tribes are eligible to apply to either program depending on their water and wastewater needs. The DWIG-TSA and CWISA programs also include additional project eligibilities that are not allowed under the state programs, including post-project O&M costs and operator training. These additional project eligibilities help tribes expand long-term TMF capacity. Additionally, tribes may submit several projects on one application, sometimes referred to as a “wish list,” in addition to the main project they are submitting. This unique feature of the tribal set aside program ensures that if additional funding is left over for a region, EPA and IHS do not have to initiate another call for projects.
Both DWIG-TSA and CWISA aim to assist tribal utilities in implementing important water and wastewater infrastructure projects, yet their respective policies and processes are vastly different, given that t.
Drinking Water vs Clean Water Program Administration
EPA administers the DWIG-TSA program by allocating a percentage of the total drinking water set-aside to each EPA region. From there, EPA regional offices control which projects are selected to receive funding, meaning each region can customize its program design and guidelines better to meet the needs of tribes in its region. Funds are awarded directly from the EPA to the tribes, but tribes have two options for administering them. Tribes can choose to self-administer the funds, or they can request that IHS administer them.
In addition to grant administration, IHS administers the funding for the CWISA program. Unlike the DWIG-TSA program, the CWISA program allocates funding to IHS regions instead of EPA regions. The boundaries of these regions do not align perfectly with each other, so EPA regions may need to coordinate with each other to prioritize projects. For example, EPA Region 4, where North Carolina is located, is part of the IHS Nashville area. This means projects in Region 4 must compete with projects in EPA Regions 1, 2, 3, and 6.
The IHS distributes funding to its regions based on needs identified in its Sanitation Deficiency System (SDS) list. Because projects funded through the CWISA are pulled from the SDS list, tribes interested in this funding only need to get on the list; they do not need to submit a separate application like they would for the DWIG-TSA program. Tribes may contact IHS to start this process.
(Image created by US EPA, listed in Drinking Water Infrastructure Grants Tribal Set-Aside Program Revised Guidelines, December 2013)
Federal Tribal Grants in North Carolina
While many grants available to tribal nations are managed on a federal and regional level, they can provide funding to make crucial upgrades to tribal systems across the nation. North Carolina is home to the Eastern Band of Cherokee Indians. EPA Region 4 has structured its regional SRF set-aside funding to better benefit all tribal nations in the region by rotating funding priority between the six tribal nations in the region. The Eastern Band of Cherokee Indians was given priority during fiscal year 2024, meaning they will not have priority again until fiscal year 2030. That does not mean they cannot apply for funding, but the policy was requested by EPA Region 4 tribes to allow each tribe a chance to access larger sums of dedicated grant funding. Tribes that have identified specific capital improvements may be better positioned to access funding streams when the funds are available or when the tribe is given priority in their region.
While directed set-aside funding may be a smart choice for tribal nations looking to maintain and upgrade their water and wastewater systems, tribal nations should consider additional factors affecting their communities. The Eastern Band of Cherokee Indians were recently affected by and may benefit from accessing additional funding streams targeted at emergency response, like FEMA and state-supported funding streams.
Additional Federal BIL Funding
In addition to SRF set-aside funding, significant funding is targeted to help tribal communities strengthen and expand their infrastructure, made available through the Bipartisan Infrastructure Law (BIL). BIL funding flows through several federal agencies, including the EPA and SRF programs, and this funding is designed to help tribal nations not just with water and wastewater infrastructure but also transportation, broadband connection, and other types of infrastructure.
Ensuring tribal communities have access to funding to establish, repair, and maintain robust and safe infrastructure is critical to public health. While work remains to ensure each community has access to the funding it needs to build and maintain safe infrastructure, federal programs, like the SRF program, have helped fill that gap by providing targeted grant funding for critical infrastructure.
Need technical assistance? The UNC Environmental Finance Center is here to help!
The Environmental Finance Center at UNC-CH offers free one-on-one technical assistance with water systems. If you are interested in our support, fill out our Technical Assistance Request Form or contact us at efc@sog.unc.edu.