EPA Invites Public Feedback on Key Tool that Supports Water Affordability, Strengthens Practical Clean Water Act Implementation

EPA Invites Public Feedback on Key Tool that Supports Water Affordability, Strengthens Practical Clean Water Act Implementation

March 26, 2026

WASHINGTON - U.S. Environmental Protection Agency (EPA) is seeking public input on its Clean Water Act Financial Capability Assessment (FCA) guidance. This non-regulatory guidance is an important resource that helps local water bills remain affordable as wastewater systems plan for needed infrastructure upgrades, including for their collection systems, pumps, and treatment plants. Using public feedback, EPA will consider updating the agency's guidance to better reflect ratepayers' ability to support infrastructure upgrades, potential impacts on rural and small communities, and other related topics.

"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. "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 is one of many factors EPA considers when evaluating schedules for implementing long-term Clean Water Act control plans. The guidance provides information on how to assess a community's financial capability as part of negotiating implementation schedules under both permits and enforcement agreements. In addition, the guidance identifies specific ways to consider economic impacts to public entities when determining water quality standards variances and during antidegradation reviews. In appropriate cases, these methodologies also inform decisions about revising the designated use (e.g., drinking water supply, agriculture, recreation, and aquatic life protection) for a waterbody.

In order to implement Clean Water Act objectives without imposing burdensome financial stress on American families, EPA is seeking information and data on issues related to financial capability for communities. After reviewing the public input, the agency will revisit the guidance to address these concerns through possible revisions as part of its ongoing commitment to working with communities to protect human health and ensure practical implementation.

EPA will accept comments through May 26, 2026, via the Federal eRulemaking portalExit EPA's website, referencing Docket ID No. EPA-HQ-OW-2026-1090. EPA also plans to hold two virtual meetings to discuss the guidance before the public comment period closes.

Background

This effort will revise, as needed, the Clean Water Act FCA guidance. The most recent Final FCA guidance was published in March 2023 and had minor revisions in March 2024. The FCA guidance is not legally binding and is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.