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State & Local Projects

Drinking Water State Revolving Fund (enhanced funding)

Section: Division A, Title VII | Agency: Environmental Protection

The Drinking Water State Revolving Fund (DWSRF) is a low-interest loan program primarily for local government drinking water projects. Loans are made based on federally-approved, competitive priority system reflecting public health and regulatory compliance considerations and readiness-to-proceed. Local government projects must qualify for funding under the terms of the Drinking Water State Revolving Fund.

See "DEP Drinking Water State Revolving Fund Fundable Projects" (http://flarecovery.com/_resources/documents/dep-drinking-water-srf-arra-fundable-projects-as-of-05-13-09.pdf) under State and Federal Funding Announcements on the Documents page.  The amounts identified for ARRA funding in the certification reflect the maximum possible funding for each project.  The actual amounts awarded may be less as a result of decreases in construction costs at the time of contract award.

Brief description of program or funding including funding distribution method (formula or competitive grant): The DWSRF program is a low-interest loan program primarily for local government drinking water projects.  Loans are made based on a federally-approved, competitive priority system reflecting public health and regulatory compliance considerations and readiness-to-proceed.  Moneys are disbursed based on completed, invoiced work.  Loans are generally made for a 20-year term at interest rates 40% below rates.  Loan repayments are returned (“revolve”) to the program to make new loans, combining with any available federal funds, state matching moneys (waived for ARRA), and interest earnings on the SRF.  Federal funds, including ARRA funds, are allotted to the states based on a formula in federal regulations.

When funds are expected to be available: EPA awarded the state capitalization grant in May 2009..

How long are funds available: All funds must obligated through construction contracts at the local government level no later than one year after the effective date of the ARRA.  EPA is authorized to re-allot uncommitted funds to other states.

Conditions or prerequisites for accessing funds (include matching or MOE requirements): No state match is required to access funds.  Local government projects must qualify for funding under the terms of the DWSRF program as set forth in state law and rule.  All recipients must comply with Davis-Bacon and Buy American labor provisions; 50% of ARRA funds must go to disadvantaged recipients through some form of additional subsidy; 20% of ARRA funds must go to “green” projects.  Certain state rule provisions may have to be waived to enable the timely commitment of ARRA funds; no statutory changes are required.  Stimulus-related budget authority is required for both SFY 2008-09 and 2009-10.