Environmental Loans
Clean Water & Drinking Water State Revolving Funds
Public Comment Period
Please review the draft State Fiscal Year 2023 Clean Water Fund Program Intended Use Plan (Draft SFY 23 CWFP IUP) and submit your comments to Casey.Sweeney@Wisconsin.gov by August 29, 2022.- On 8/9/2022, the Wisconsin DNR held a workshop about the CWFP SFY 2023 Draft IUP [VIDEO Length 0:46:37]. View the slide show handout.
The purpose of the Environmental Loans Section is to administer affordable financial assistance to communities within Wisconsin for water infrastructure projects that protect and improve public health and water quality for current and future generations. Wisconsin provided over $6.2 billion in financial assistance to municipalities since State Fiscal Year 1991 through two Environmental Improvement Fund (EIF) programs.
Under the Clean Water Fund Program and the Safe Drinking Water Loan Program, municipalities may receive financial assistance in the form of subsidized loans; additional subsidy to reduce the size of a loan; or a combination of assistance to keep project costs low. The programs can finance construction as it takes place; refinance interim debt used to design and construct a project; and reimburse municipal funds used for project costs.
Benefits and program features:
- Program subsidy buys down the market rate on loans (reduced-interest rate loans).
- Some municipalities may be eligible for further subsidy to reduce their loan size (principal forgiveness).
- Fixed interest rates on long-term loans (up to 30 years).
- Coordination of funds with other funding sources.
- Online submittal system for Intents to Apply and Financial Assistance Applications.
- Dedicated DNR loan project manager and construction management engineer.
Funding programs
Clean Water Fund Program
The Clean Water Fund Program (CWFP) provides financial assistance to municipalities for wastewater and storm water infrastructure projects. It includes projects for compliance with a municipality's WPDES permit.
- Priority Principal Forgiveness (Priority PF) points and criteria for regionalization, phosphorus reduction, and energy efficiency projects.
- The CWFP Small Loans Program is currently suspended. For details, read the SLP webpage.
Pilot Projects Program
Pilot Projects Program provides a subsidy to municipalities seeking to fund water quality trading projects and other non-traditional projects (i.e., projects not related to a wastewater treatment plant upgrade) for compliance with a municipality's WPDES permit.
Safe Drinking Water Loan Program
The Safe Drinking Water Loan Program (SDWLP) provides financial assistance to municipalities for drinking water infrastructure projects.
Lead Service Line Projects
Funding options for lead service line (LSL) replacements.
Other funding sources
The Wisconsin DNR Environmental Loans Section often partners with other funding agencies to ensure that municipalities get the best funding package to meet their needs. The DNR and other funding sources can collaborate to clarify the joint funding process and help with common paperwork challenges.
Eligibility
Who may apply?
Eligible applicants include Wisconsin cities, towns, villages, counties, sanitary districts and other qualifying municipalities.
How may funds be used?
The program funds are for reasonable and necessary costs directly related to the planning, design and construction of eligible projects. Funds may be used to construct, improve, modify, purchase, replace, restore and upgrade drinking water, wastewater and storm water systems and infrastructure; such as collection, conveyance, disposal, distribution, sourcing, storage, transmission and treatment. For more information, read:
The following are general guidelines helpful in determining whether an EIF loan would be appropriate for your project.
- The municipal wastewater project is a necessity to stay in compliance with WPDES permits or to meet new permit requirements.
- Projects constructing a new sewer system to eliminate groundwater pollution and threats to public health.
- Projects that correct public water systems that violate health standards, have contamination, are not in compliance with drinking water standards or have inadequate transmission pipes and/or storage facilities.
How to Apply
How do we apply?
Follow these steps in order to apply for funding:
- Identify and define the wastewater treatment or drinking water "problem" that needs to be corrected or prevented. This process generally involves a joint effort of the municipality, a consulting engineer, and the DNR engineer in your area.
- Pre-Application - A notice of Intent to Apply (ITA) and Priority Evaluation & Ranking Formula (PERF) must be submitted online for each project for which you will be seeking an EIF loan. The deadline for all ITAs/PERFs is October 31 for the following state fiscal year (SFY) funding cycle. For example, if you wish to apply for SFY 2024 funding (July 1, 2023 through June 30, 2024), the ITA/PERF deadline is October 31, 2022.
When your project score is finalized by the DNR, you will receive an email notification. Eligible projects will be placed on the Project Priority List (PPL) in priority score order.
ITAs/PERFs are only valid for one state fiscal year. If you do not go forward with submitting an application, be sure to re-submit an ITA/PERF for the following state fiscal year, if you are still pursuing funding from the EIF.
- Application - Once your project is on the Project Priority List (PPL), you may apply for funding for that state fiscal year. Refer to the documents below for more information on the application.
Next steps for applicants after PPL is published: Application Process and Contents:
Attention: Read our final policy paper on Procedural Changes for CWFP and SDWLP Applications. More information is available on the Statutes & Codes webpage.
Deadlines
Deadlines & due dates
The state fiscal year begins on the first day of July in each year and closes on the next following June 30 (e.g., SFY 2023 begins July 1, 2022, and ends June 30, 2023).
Note: When a deadline falls on a weekend, that deadline, by statute, is extended to Monday.
Visual aids for deadlines, due dates, and timelines:
- CWFP deadlines during SFY 2023 (PUB-CF-046)
- SDWLP deadlines during SFY 2023 (PUB-CF-047)
- CWFP and SDWLP deadlines & due dates during SFYs 2023-2024 (PUB-CF-048)
Listed by deadline date
DEADLINE | PROGRAM ACTIVITY |
---|---|
June 30 |
|
Sept. 30 |
|
Oct. 31 |
|
Listed by program and type of activity
Clean Water Fund Program
CWFP ACTIVITY | CWFP DEADLINE |
---|---|
Intent to Apply |
|
Application |
|
Loan Closing |
|
Safe Drinking Water Loan Program
SDWLP ACTIVITY | SDWLP DEADLINE |
---|---|
Intent to Apply |
|
Application |
|
Loan Closing |
|
Interest rates
What are the interest rates?
The CWFP and SDWLP provide subsidy to bring interest rates on loans down from the market rate established by Wisconsin Department of Administration (DOA) to the reduced interest rates described in the table shown below. For more information, read the Interest Rates webpage.
PROJECT TYPE | % of MARKET RATE | ≤ 20 YR TERM | 21-30 YR TERM |
---|---|---|---|
CWFP and SDWLP For eligible projects of municipalities not meeting the financial need criteria. |
55% | 2.145% | 2.255% |
CWFP and SDWLP For eligible projects of disadvantaged municipalities meeting the following financial need criteria:
|
33% | 1.287% | 1.353% |
CWFP For eligible projects of extremely disadvantaged municipalities meeting the following financial need criteria:
|
0% | 0% | 0% |
CWFP For the portion of eligible projects for receiving and storing septage and capacity for treating septage, and non-traditional pilot projects, e.g., water quality trading. |
0% | 0% | 0% |
MARKET RATE (effective 07/01/2022) | 100% | 3.900% | 4.100% |
Help
Program coordinators & specialists
Clean Water Fund Program contact: Lisa Bushby, CWFP Coordinator
Pilot Projects Program contact: Dave Calhoon, Pilot Projects Specialist
Private Lead Service Line Replacement Program contact: Kate Leja-Brennan, LSL Specialist
Safe Drinking Water Loan Program contact: Noah Balgooyen, SDWLP Coordinator
- Contact information
- For information on this topic, contact either Section Chief:
- Matt Marcum or Becky Scott