Lead Service Line Inventory Grant

Division of Water Resources, State Water Infrastructure Grants Program

The State Water Infrastructure Grants Program is currently accepting applications:
From November 29, 2023 – January 16, 2024

Background

The Bipartisan Infrastructure Law (BIL) was signed on November 15, 2021. BIL is a large investment in the water sector that will impact drinking water and wastewater systems. As part of the BIL implementation strategies, a dedicated funding source was provided for the rapid progress on lead service line (LSL) identification and replacement for state programs to build capacity to assist local communities.

The Division of Water Resources State Revolving Fund published its Intended Use Plan (IUP) in July 2023. The Drinking Water IUP included a funding assistance plan for LSL inventory, planning, and design grants. SRF set-aside $16,832,719 from FFY 2022 and 2023 Lead Service Line Capitalization grants to develop a grant assistance program for communities investigating and addressing LSL issues and provide direct and indirect technical assistance for Public Water Systems (PWS). This grant program, executed through State Water Infrastructure Grants (SWIG), will be directed to investigate LSL issues by service area, establish compliant inventories, and provide dollars for planning and design for full lead service line replacement (LSLR). The lead service line (LSLI) investigation, inventory, and planning assistance program will allow the rapid identification and inventory of LSLs and ensure PWSs have a plan for LSL replacement, potentially financed through an SRF loan. This grant manual intends to describe how eligible entities can apply for this funding.

Entities eligible to apply for these competitive grants must meet technical and administrative requirements and demonstrate a matching commitment before a grant can be awarded. Applications will be scored to determine suitability for funding. SWIG will award grants until the designated funding is exhausted.
 

The first phase of this BIL funding opportunity is to assist PWSs with meeting two important deadlines in the LCRR. Both the LSL inventory and replacement plans are due October 16, 2024. This is the first major compliance date for LCRR. Preparing these inventories and replacement plans are the first steps to identifying critical locations with potentially high drinking water lead exposure. These documents will also allow the PWSs to target communication with impacted residents, reassess their sampling locations, and begin planning to conduct full LSLRs.

Eligible grant entities will complete a grant application within SWIG’s Grants Management System (GMS). The grant application will establish the items needed for a complete application. All grant applications must be submitted by the announced deadline.

Eligible grant applicants include cities, counties, utility districts, and water authorities that own or operate a public water system. Grant applicants are responsible for grant oversight and monitoring of activities. Grant applicants are also responsible for submitting progress updates as requested by SWIG and managing the grant contract scopes of services.

This grant will assist communities in investigating and addressing compliant inventory replacement plans and in planning and designing for future full LSLR. The goal is to prepare communities for the LCRR compliance deadlines of October 16, 2024, and allow PWSs to have a plan to lead to a pipeline of projects for LSLR financed with SRF loans.

Division of Water Resources’ Compliance and Enforcement Program (DWR-CE) has established an LSLI Fillable Excel Data Sheet. When reviewing the eligible activities below, it is highly recommended to reference this datasheet. The format and information requested in this data sheet have the minimum data elements that must be submitted by October 16, 2024. USEPA has released additional guidance for Developing and Maintaining a Service Line Inventory. This guidance should be used to determine the level of effort and resources needed to complete the LSLI. Since LSLI is the foundation of the LCRR, communities must build a comprehensive and accurate LSLI with this funding opportunity.

This grant opportunity can cover the costs associated with the planning, creation, investigation, and revisions to the LSLI. Additionally, applicants should refer to the eligibility guidance for Drinking Water State Revolving Fund and BIL SRF Memorandum for other eligibility requirements. The requirements to conduct LSLI activities under this grant are further detailed in the grant manual.
 

SWIG has allocated $16,832,719 for this LSL grant. Grant award maximums are $250,000 per applicant. The designated funding allocations will be the dollar amount that can be used to reimburse eligible LSLI projects once the community receives a fully executed grant contract. Grant applicants must consider proposal budget maximums and match requirements when developing and submitting proposals. A proposal’s total project budget is the sum of the grant award plus their match. Match will be applied to the total project budget for each reimbursement request.

Match is required for all LSLI grants. Each recipient is anticipated to contribute a matching ranging between 15%-25% of the total project cost. Match amounts are based on the 2022 Ability To Pay Index (ATPI) for the project area served (city or county scale).
 

The anticipated timeline for this grant offering:

November 2023
Grant manual released

November 29, 2023
Open application solicitation

December 14, 2023
Grant Workshop

January 16, 2023
Close application solicitation

January-February 2024
Review, evaluate, and recommend awards

February-March 2024
All contracts executed
 

On December 14, 2023, TDEC hosted a virtual workshop for the LSLI grant program to discuss the grant application process for potential applicants.

CONTACT
Seth McCormick
(615) 981-4839
Seth.McCormick@tn.gov

This Page Last Updated: February 1, 2024 at 5:10 PM