TWDB Opens Solicitation for Lead Service Line Replacement Projects

Mark Evans

Funding Specialist

The Texas Water Development Board has opened solicitations for lead service line replacement projects to be submitted for consideration for financial assistance from the Drinking Water State Revolving Fund (DWSRF). This solicitation is a next step in the distribution of funds from the Infrastructure Investment and Jobs Act (IIJA) and provides financial assistance to Public Water Systems (PWSs) for lead service line replacements or directly associated activities such as identification, planning, and design.

In 2021, the IIJA was enacted to address infrastructure improvements, and appropriated supplemental capitalization grant funds for Federal Fiscal Years (FFY) 2022 to 2026 for general activities, lead service line replacement, and emerging contaminants. The State Fiscal Year 2023 Intended Use Plan (IUP) covering general activities using these appropriations was effective October 5, 2022. Additional details regarding the funding allotment for addressing emerging contaminants will be provided at a future date.

Want to apply for lead service line project funding in Texas? Here’s what to know:

Available Funds

Under this IUP, a total of $213,455,000 is available. $108,855,950 will be allocated to the required additional subsidization funding and $104,599,050 will be allocated to the loans/bonds, including the financed loan origination fee.

Definition of a Service Line

Per the IUP and the amended version of the Lead and Copper Rule Revisions’ regulatory definition, a “service line” is:

• Made of lead, and connects the water main to the building inlet
• Owned by the water system, owned by the property owner, or both
• Includes a galvanized service line if it ever was or is currently downstream of any lead service line or service line of unknown material.
• Includes replacement of lead goosenecks, pigtails, or connectors

Eligible Applicants

The TWDB lists that existing community Public Water Systems (PWSs) including political subdivisions, nonprofit water supply corporations, privately-owned community water systems, non-profit, and non-community public water systems are eligible to apply for the program.

Eligible Projects

In general, a project is eligible if it is otherwise eligible for financial assistance from the DWSRF and meets the other IUP definitions. If the project you are submitting is construction-ready, with inventories, planning, acquisition, and design already completed, you will receive a first-round invitation to submit a full application for the program.

What Utilities Can Do Now

Freese and Nichols can support you in your next steps:

• Determine your eligibility and compliance with the program’s special requirements, including but not limited to:
  • Project consistency with current TWDB State Water Plan
  • Water Conservation and Drought Contingency Plans
  • The EPA Disadvantaged Business Enterprise program
  • The American Iron and Steel Provisions and Build America, Buy America Act
• Prepare and submit your LSLR Project Information Form, due May 23.
• If it is not already underway, begin your lead service line inventory. Under the Lead and Copper Rule Revisions (LCRR) from the EPA, inventories must be submitted to state governing agencies by Oct. 16, 2024.

For assistance, contact Mark Evans, Julie Huerta, or your Freese and Nichols project manager.

Resources

• TWDB Lead Service Line Replacement Program webpage
• Draft DWSRF IUP for Lead Service Line Replacements Funding

Mark Evans is a Funding Specialist based in San Marcos, Texas.