Drinking Water State Revolving Fund (DWSRF) Loan Program
1. What can the program do for you?
The Drinking Water State Revolving Fund, authorized by the Safe Drinking Water Act, provides low-interest financial assistance for planning, design, and construction of water infrastructure.
2. Who can borrow?
Eligible applicants for the DWSRF include publicly and privately owned commu¬nity public water systems, including nonprofit water supply corporations and nonprofit, non-community public water systems.
3. What types of projects can I use the loan funding for?
Financial assistance from the DWSRF can be utilized for:
- water treatment facilities,
- distribution systems,
- upgrade or replace water infrastructure,
- address standards from the Safe Drinking Water Act,
- consolidation of systems,
- purchasing additional capacity,
- source water protect projects, and
- eligible green project reserve components
4. Are loans or grants offered?
The TWDB provides subsidies to applicants in the form of loan forgiveness (similar to grants) on a limited basis. In order to receive loan forgiveness, applicants must be included in the Intended Use Plan (IUP) as an eligible Disadvantaged Community or Green Project Reserve project and be invited to apply for the available subsidies. The amount of loan forgiveness for Disadvantaged Communities (up to 70%) is dependent on the adjusted annual median household income for the project area. Additionally, entities may receive subsidized green funding (up to 15%) if their project has eligible components that total 30% of the project's total cost.
5. What project components can I receive funding to complete?
The DWSRF provides financial assistance for planning, acquisition, and design as well as construction. Applicants interested in financial assistance for construction activities are required to meet readiness to proceed criteria before consideration from the Board. Applicants who obtain financial assistance for planning, acquisition and design will be automatically retained on the next three IUPs and be invited to apply for construction funds if the project is ready to proceed to construction.
6. How much funding is available?
Whether you are seeking financial assistance for smaller projects to large scale capital improvement projects, the DWSRF is an excellent fit for your system's needs. The DWSRF program has the capacity to lend over $60 million to systems on an annual basis and can provide long-term interest-rate savings compared to accessing the traditional bond market.
7. When can I apply for SRF financial assistance?
The TWDB accepts projects for the DWSRF program annually, beginning on December 1 and ending on March 1. Following adoption of the IUP by the Board, the TWDB may reopen the program for additional projects that meet certain criteria such as eligible green projects, emergency, and construction-ready projects.
8. Where can I find more information regarding the financial assistance application?
If you have been invited to apply for DWSRF financial assistance, you will need to complete a financial assistance application for agency review and Board approval.
Financial assistance through the DWSRF program requires compliance with applicable rules, policies, and Acts including:
- National Environmental Policy Act-type environmental review. Projects receiving non-equivalency funding TWDB staff members are available to assist applicants in determining the scope of investigation required, preparing reports, and coordinating with environmental regulatory agencies.
- Adoption of a Water Conservation and Drought Contingency Plan for all loans greater than $500,000 (as mandated under the Texas Administrative Code Title 31 § 363, Subchapter A),
- Application of Davis-Bacon Act wage rates for assistance agreements made in whole, or in part, with Clean Water State Revolving Fund equivalency funds, and
- Compliance with the EPA's Disadvantaged Business Enterprise program, which requires applicants and prime contractors to follow six affirmative steps in procurement (Guidance and additional information is available).