Introduction

In September 2024, Hurricane Helene significantly damaged many drinking water, wastewater, and decentralized wastewater treatment systems, particularly in the western portion of the Commonwealth of Virginia. On December 21, 2024, the American Relief Act, 2025, P.L. 118-158, (“the Act”) became law. The funding for the Environmental Protection Agency (EPA) in Title VII of the Act includes $3 billion in disaster relief supplemental funding for the State Revolving Fund (SRF) programs, of which, $1.23 billion was allotted to the Clean Water State Revolving Fund (CWSRF), available only to states or territories in EPA Regions 3, 4, and 9 for wastewater treatment works impacted by Hurricanes Helene and Milton and the Hawai’i wildfires. Only the States of Florida, Georgia, Hawai’i, North Carolina, South Carolina, Tennessee, and Virginia are eligible to apply for these CWSRF and Drinking Water State Revolving Fund (DWSRF) supplemental funds. The Act also appropriated an additional $85 million in supplemental funding for the CWSRF program to improve the resilience of decentralized wastewater treatment systems, available only to states or territories in EPA Regions 3 and 4 impacted by Hurricanes Helene and Milton. Only the States of Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia are eligible to apply for these CWSRF supplemental funds.

Section 606 of the Water Quality Act of 1987 required the State to develop an Intended Use Plan (IUP) for the use of these emergency funds that identified the uses of its Clean Water Revolving Loan Fund and to prepare a list of projects targeted for funding assistance. The original IUP and Project Priority List (PPL) were advertised for public comment in May-June of 2025 and subsequently the PPL was approved by the State Water Control Board (Board) in June 2025. Additional funds are also available under the SA-HMW for decentralized wastewater treatment systems. As such, the previously approved and noticed IUP and PPL have been revised to include decentralized project implementation. Following public comment and final Board action, the list of targeted projects for financial assistance will become the Clean Water Revolving Loan Fund’s Supplemental Appropriation for Hurricanes Helene and Milton and the Hawai’i Wildfires (SA-HMW) PPL in the revised Supplemental IUP.

 Funds Available

The State Revolving Fund Supplemental Appropriation for Hurricanes Helene and Milton and the Hawai’i Wildfires (SA-HMW) for Clean Water is administered by the Virginia Department of Environmental Quality’s (DEQ) Clean Water Financing and Assistance Program (CWFAP) via the Clean Water Revolving Loan Fund (VCWRLF) program. Virginia’s allotment to improve the resilience of decentralized wastewater treatment systems is $1,656,000. Final Board approval of the revised PPL that includes two additional projects will be requested at a future meeting of the Board.

 Revised SA-HMW Supplemental IUP and PPL Development

Virginia has utilized the originally approved $9,307,000 in project loans for centralized wastewater treatment system repair as approved by the Board in June 2025. Virginia’s draft revised IUP for Supplemental Appropriations Under the SA-HMW and PPL for decentralized wastewater treatment systems, targets two additional projects for the additional funding.  This funding will be provided in the form of a Clean Water Revolving Loan with full principal forgiveness as these localities are financially stressed and considered disadvantaged communities within the Commonwealth. The revised HA-SMW PPL will become effective depending upon approval by the Board at a future meeting.

DEQ assisted with the collection of critical wastewater infrastructure damage assessment information, which was incorporated within a report from the Virginia Department of Emergency Management (VDEM) detailing impacted wastewater works systems directly after the flood waters subsided. The DEQ Southwest Office Pollution Response Team (PreP) performed site visits to all wastewater works identified on the FEMA-4831-DR, Virginia Disaster Declaration Map, dated October 10, 2024. In addition, CWFAP oversight and extensive outreach has been performed via site visits and meetings to determine the localities with the greatest demonstrated need based on financial need and environmental impacts or potential impacts on State waters. Based on extensive field investigations and outreach, it is with great confidence that the revised PPL has identified the decentralized wastewater treatment system projects with the greatest need and that will result in improving water quality of the Commonwealth of Virginia. DEQ proposes funding for the additional projects on the PPL and bypassing an application solicitation period in order to expedite the distribution of funds. Expediting distribution of funds will allow for these most critically important wastewater infrastructure repair projects to be realized in a more timely manner, thus eliminating ongoing public health threats, expediting the restoration of the community’s natural resource for recreational and economic benefits, as well as significantly improving the water quality in these highly impacted areas.

Public Participation

DEQ is presenting the revised draft list of targeted SA-HMW decentralized wastewater treatment system funding recipients (additions in red on the PPL, projects listed in black have already been approved) for public review and comment. More information on the supplemental PPL and the proposed IUP can be found on the Clean Water Revolving Loan website here: https://www.deq.virginia.gov/our-programs/water/clean-water-financing-and-assistance/virginia-clean-water-revolving-loan-fund-vcwrlf.

DEQ will not host a public meeting, but written comments and recommendations regarding the IUP and PPL will be accepted until June 11, 2026.  DEQ considers all meaningful public input and comments and may revise the IUP and PPL if necessary.  Please direct your request for information and forward written comments to:

Meghan Mayfield

Director Clean Water Finance and Training Assistance
Department of Environmental Quality
PO Box 1105
Richmond, Virginia 23219

cwfap@deq.virginia.gov  

Written comments should include the name, address, and telephone number of the commenter.