Status: Open. Proposals due November 8, 2026, 11:59 PM Eastern Standard Time, through FedConnect.
Executive Summary
EPA's FY26 SBIR Phase I solicitation (68HERW26R0102) funds proof-of-concept work on 10 environmental technology topics, from PFAS and water reuse to battery recycling. It is for SBIR-eligible U.S. small businesses (500 or fewer employees, plus ownership rules). Proposals are due November 8, 2026, 11:59 PM Eastern Standard Time.
The deciding factor is commercial potential. EPA scores technical merit, relevance to the topic and commercial strength at one-third each, so a strong lab result with a thin market case will not score well. Phase I winners can then compete for a Phase II award of $400,000.
Solicitation at a Glance
- Agency: U.S. Environmental Protection Agency (EPA) SBIR Program
- Opportunity: FY26 SBIR Phase I Broad Agency Announcement, 10 topics in four focus areas
- Number: 68HERW26R0102 (Amendments 0001 and 0002)
- Award Vehicle: Firm-fixed-price SBIR Phase I contracts
- Funding: About 25 awards of up to $100,000 each, plus up to $6,500 in optional technical and business assistance (TABA) per award
- Technology Maturity: Proof of concept over a period of performance of up to six months
- Who Can Apply: SBIR-eligible U.S. small businesses with no more than 500 employees, including affiliates
- Deadline: November 8, 2026, 11:59 PM Eastern Standard Time, via FedConnect
Think your company qualifies? Talk with BW&CO before the November 8 deadline.
What Is the EPA SBIR Phase I Solicitation?
EPA's Small Business Innovation Research program funds small businesses developing technologies that support the agency's mission of protecting human health and the environment. Each year EPA issues one Phase I solicitation on specific topics. Phase I is for proof of concept. Companies that complete Phase I can compete for Phase II to develop and commercialize the technology further. The FY26 solicitation is issued as a Broad Agency Announcement, and each proposal must address one of the listed topics in full.
What Problem Is EPA Trying to Solve?
EPA says its needs are large and its available funding is small, so it wants new approaches rather than incremental improvements to existing technologies. The FY26 topics target specific problems: PFAS in groundwater, sludge and biosolids, safe reuse of water, carbon monoxide exposure, food waste, the fire risk of damaged lithium-ion batteries in collection and transport, the impacts of critical mineral mining, chemicals of concern in rubber, and unreliable lead paint test kits. EPA also asks offerors to consider the lifecycle impacts of their technology, although a formal life cycle analysis is not required.
Priority Capability Areas: What EPA Is Looking For
- Clean and safe water: 1A monitoring technologies for water reuse; 1B treatment of PFAS in wastewater sewage sludge and biosolids; 1C removal or destruction of PFAS in groundwater.
- Air quality: 2A sensors to detect PFAS in environmental matrices (sensors for PFAS in water belong here, not in 1C); 2B technologies to monitor carbon monoxide.
- Circular economy and sustainable materials: 3A technologies to prevent and recycle food waste; 3B critical mineral recovery from lithium-ion batteries and safe recycling or reuse of batteries; 3C technologies that mitigate the impacts of critical mineral mining or extract critical minerals from acid mine drainage.
- Battery safety detail (3B): packaging that prevents thermal runaway during accumulation, methods to evaluate batteries for damage before accumulation or transport, and ways to discharge batteries that still hold significant voltage.
- Safer chemicals: 4A rubber anti-degradants that are lower concern for human health and the environment; 4B improved lead test kits for lead paint.
Funding and Award Terms
- Phase I awards: EPA anticipates about 25 firm-fixed-price contracts of up to $100,000 each, including profit. Profit may not exceed $10,000.
- Period of performance: up to six months. EPA expects a contract start date in February or March 2027.
- TABA: up to $6,500 per Phase I award for technical and business assistance, in addition to the $100,000. EPA evaluates TABA requests separately, and approval is not guaranteed.
- Payments: monthly progress payments at 85% of actual expenses with each of the first five monthly reports; the remainder is paid after the final report is accepted.
- Phase II path: EPA's SBIR page says Phase I awardees can propose for a Phase II award of $400,000, and that EPA offers a Commercialization Option of up to $100,000 in Phase II for companies that secure third-party investment.
- Funding caveat: awards depend on the availability of appropriated funds, and EPA has no obligation to fund any proposal or any number of proposals under a topic.
Eligibility and Participation
- Small business concern: organized for profit with a place of business in the United States, more than 50% owned and controlled by U.S. citizens or permanent residents (or by a qualifying U.S. business), and no more than 500 employees, including affiliates.
- Ownership limit: EPA will not accept proposals from, or make awards to, small businesses owned in majority part by multiple venture capital operating companies, hedge funds or private equity firms.
- Principal investigator: must be primarily employed by the small business at award and during the work. A PI who appears to be employed by a university or another employer must include a letter confirming they will become a less-than-half-time employee there.
- Work location and subcontracting: the research must be performed in the United States, and at least two-thirds of the Phase I effort, measured by budget, must be performed by the small business.
- Foreign purchasing: no foreign subcontracting or foreign purchasing is authorized without a written deviation from the Contracting Officer. EPA's Q&A says such a request should be identified in the proposal.
- One proposal per company: if a company submits more than one, only the last one received is considered.
- Performance benchmarks: companies with multiple prior SBIR or STTR awards must meet the SBA Phase I to Phase II transition and commercialization rate benchmarks.
- Human subjects: EPA cautions against Phase I proposals that require human subjects research, since IRB approval can take 6 to 12 months.
How to Apply
- Register early: an active SAM.gov registration set to accept "contracts" or "all awards," a FedConnect account and an SBA Company Registry entry (with your SBC Control ID). Registration takes time; start now.
- Pick one topic: select a single topic code on the cover sheet and address the full topic description.
- Use EPA's forms: complete the fillable forms on the EPA SBIR required forms page without reformatting them, including the cover sheet, a one-page project summary of no more than 400 words, the summary budget and the four-section Representations and Certifications.
- Write the narrative: the technical proposal and commercialization plan must use the solicitation's section titles, from Technical Approach through Commercialization Approach.
- Stay within 36 pages: the whole proposal, including forms and letters of support, must be one PDF of 36 pages or fewer. EPA's Q&A says only the 36-page total is binding.
- Acknowledge the amendments: EPA's Q&A says an acknowledgment on the cover sheet is sufficient.
- Submit as a response: upload through the FedConnect "Response" function, not messages or email, with a file name such as "Topic 1A - Company ABC, LLC," by November 8, 2026, 11:59 PM Eastern Standard Time.
What Happens After You Submit?
- Compliance screen: EPA first checks that each proposal meets every requirement. Nonconforming proposals receive no technical review.
- Merit review: EPA and external reviewers score technical (one-third), relevancy (one-third) and commercial (one-third) criteria.
- Selection: EPA may also weigh programmatic balance, agency priorities and available funding. Price is checked for fairness but is not the basis for selection.
- Before award: offerors under consideration may be asked to complete a Foreign Disclosure form.
- Award and reporting: contracts are expected to start in February or March 2027, with monthly reports and a final report due within seven days of contract end.
Is This Opportunity a Good Fit for Your Company?
It fits small companies with an early-stage environmental technology that maps directly to one of the 10 topics, such as PFAS treatment or sensing, water reuse monitoring, battery handling and recycling, or critical mineral recovery. Teams that can show customer interest and a credible path to market are better positioned, since commercial criteria carry a third of the score. Companies majority-owned by multiple venture, hedge fund or private equity firms, and projects that depend on human subjects research, are a weak fit.
How BW&CO Can Help
BW&CO has helped deep-tech and dual-use founders secure more than $350M in non-dilutive funding. For SBIR solicitations like EPA SBIR Phase I, we help you:
- Pick the topic: confirm which of the 10 topics your technology answers in full.
- Check eligibility: review size, ownership and PI employment before you invest in a proposal.
- Build the commercial case: market validation, customers and a commercialization plan for a third of the score.
- Assemble the package: forms, narrative and budget in one compliant PDF of 36 pages or fewer.
- Plan the next step: position for Phase II and the Commercialization Option.
Plan Your EPA SBIR Phase I Submission
Frequently Asked Questions
When are EPA SBIR Phase I proposals due?
November 8, 2026, 11:59 PM Eastern Standard Time, through FedConnect. Amendment 0002 confirmed the Eastern Standard Time deadline.
How much is a Phase I award?
Up to $100,000, including profit, for up to six months. Awardees may also request up to $6,500 in technical and business assistance.
How many awards will EPA make?
EPA anticipates about 25 Phase I awards, depending on available funding.
How many topics are there?
Ten: 1A, 1B and 1C on water; 2A and 2B on air quality; 3A, 3B and 3C on circular economy and materials; and 4A and 4B on safer chemicals.
Can I submit more than one proposal?
No. Each company may submit one proposal. If EPA receives more than one, only the last one received is considered.
Can venture-backed companies apply?
Companies owned in majority part by multiple venture capital operating companies, hedge funds or private equity firms are not eligible for EPA SBIR awards. Other ownership structures must still meet the U.S. ownership and 500-employee rules.
What is the page limit?
36 pages for the entire proposal, submitted as one PDF. The per-section page counts in the solicitation table are recommendations.
What comes after Phase I?
Phase I awardees can propose for a Phase II award of $400,000. EPA also offers a Commercialization Option of up to $100,000 in Phase II for companies that secure third-party investment.
Can BW&CO help with an EPA SBIR Phase I submission?
Yes. BW&CO helps teams choose a topic, build the commercialization case and assemble a compliant proposal. Book a call with our team.