Memorandum of Understanding Between the Environmental Protection Agency and the Department of Homeland Security
This Memorandum of Understanding (MOU) establishes a framework for the EPA funded Clean Water State Revolving Fund and Drinking Water State Revolving Fund programs to assist and collaborate with the Federal Emergency Management Agency (FEMA) disaster assistance grant programs. The State Revolving Funds (SRFs) have worked cooperatively with FEMA and state, local, Tribal, and territorial governments to allow local entities to quickly recover and restore their vital infrastructure after a Presidentially-declared major disaster. The proposed activities in this MOU are intended to streamline coordination between FEMA and the SRFs to enable funding to support essential infrastructure projects to be made available as quickly as possible.
- MOU Between the Environmental Protection Agency and the Department of Homeland Security (pdf)
- Factsheet: MOU Between the Environmental Protection Agency and the Department of Homeland Security (pdf)
- Webinar Series between EPA SRFs and FEMA: Disaster Response I and II
Dealing with the aftermath of a disaster can be more difficult than the actual disaster itself. Learn how you can work with the Clean Water and Drinking Water State Revolving Funds (SRFs) and the Federal Emergency Management Agency (FEMA) to expedite financial assistance for water and wastewater utilities in the aftermath of a Presidential-declared disaster using the MOU.
Opportunities for Hazard-Mitigation Assistance and Combining Funding
After a Presidential-declared disaster has occurred, it is important that a community is prepared and able to withstand the next one. Not only does the MOU provide funding for disaster recovery assistance, but it also has the authority to provide cost-effective hazard mitigation measures for disaster-damaged facilities. For example, if a road was washed out during a flood, FEMA would consider funding work to upsize the culvert, increase pipe capacity, or redirect stormwater flow if these measures would mitigate future flooding impacts.
It is also a useful strategy to combine funding from different sources to make a project more financially feasible. For instance, after repeated flooding, a utility may relocate its wastewater treatment plant by using financing from local grants, state funding, EPA State Revolving Funds, and FEMA Public Assistance Grants.
We encourage you to visit EPA’s Federal Funding for Water and Wastewater Utilities in National Disasters (Fed FUNDS) for more information on federal disaster and mitigation funding programs.
EPA and FEMA Funding Success Stories under the MOU
Nebraska
In response to a severe statewide flooding disaster in March of 2019, the Nebraska Department of Environment and Energy was able to use the MOU between EPA SRF’s and FEMA with 0 percent financing assistance from the SRFs for work to immediately begin in 7 affected communities. In accordance with the MOU, Nebraska’s 0 percent financing consisted of a balloon repayment structure, so that only minimal repayments needed to be made during the first 5 years. It was anticipated that FEMA Public Assistance grants would be made during the 5-year time period so that the communities could reimburse the SRF for the vast majority of incurred project costs.
The Nebraska Department of Environment and Energy provided approximately $11 million in assistance to the 7 affected communities, where at least 6 of them are likely to receive at least 75 percent reimbursement from FEMA Public Assistance grants. As FEMA continues to issue awards, the loans are re-amortized at 0 percent, to continue to help the flood impacted communities pay off their FEMA required non-federal cost- share over time. Efforts went toward replacing washed out sewer and water mains, repairing damaged treatment plants and water supply wells, and planning costs for replacing critical infrastructure out of flood zones.
Oklahoma
The water main connecting the Town of Webbers Falls to the East Central Oklahoma Water Authority (ECOWA) water treatment plant was washed out in 2019 by severe flooding in the Arkansas River. Webbers Falls, a small, disadvantaged community, temporarily connected to neighboring water systems through emergency connections, but the systems could not provide an adequate water supply at an appropriate pressure, causing Webbers Falls to undergo a boil water advisory.
The best long-term solution was for Webbers Falls to reconnect with ECOWA. The Oklahoma Water Resources Board (OWRB) coordinated with Webbers Falls and FEMA to use the MOU between EPA SRFs and FEMA so that the recovery process could begin as quickly and efficiently as possible. Initially, Webbers Falls received $546,000 in the form of an interim loan from the DWSRF, which included $100,000 of principle forgiveness. Additionally, the Cherokee Nation provided $200,000 in grant money, while OWRB further granted Webbers Falls $100,000.
OWRB and the community continually worked with FEMA to ensure that the elements and flexibilities outlined in the MOU were met so that Webbers Falls would eventually receive Public Assistance grant funds from FEMA. After successful completion of the project in February of 2020, Webbers Falls was able to lift the boil water advisory and receive safe drinking water from ECOWA. FEMA awarded $485,020.26 to Webbers Falls (ECOWA) which was used by ECOWA to pay off the loan through the Oklahoma DWSRF.