EPA seeks public input on financial capability guidance for wastewater upgrades

The U.S. Environmental Protection Agency is requesting public comment on its Clean Water Act Financial Capability Assessment (FCA) guidance, which helps determine how communities can afford wastewater infrastructure upgrades.

The non-regulatory guidance is used by utilities and regulators to evaluate a community’s ability to fund improvements such as collection systems, pump stations and treatment plants, while maintaining affordable water bills. EPA said feedback will inform potential updates to better reflect the financial realities facing ratepayers, particularly in small and rural communities.

“A priority for EPA’s Office of Water is practical implementation of Clean Water Act requirements that keep water bills affordable for American families. This is especially important for rural communities where small systems face real challenges financing water infrastructure upgrades,” said EPA Assistant Administrator for Water Jess Kramer in a press release. “This guidance document aims to address the balancing act necessary to ensure all Americans have safe and clean water without undue financial hardship on already stressed families.”

Financial capability assessments are a key factor in setting compliance schedules under permits and enforcement actions, as well as evaluating water quality standards and variances. The guidance also helps regulators consider economic impacts when determining designated uses for waterbodies.

EPA will accept public comments through May 26, 2026, and plans to hold two virtual meetings as part of the review process. The agency said revisions could help utilities better align infrastructure investments with community affordability constraints while continuing to meet Clean Water Act requirements.