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Water Protection Financial
Assistance Center
Drinking Water State Revolving Fund
40 percent Construction Grants/Direct Loans
On Aug. 6, 1996, President Clinton signed into law the
Safe Drinking Water Act Amendments of 1996 (P.L. 104-182). Section 1452
of this Act authorizes the Administrator of the U.S.
Environmental Protection Agency (EPA) to establish a Drinking Water
State Revolving Fund (DWSRF) program. EPA makes capitalization grants
to each state for the purposes of establishing a perpetual Drinking Water
Revolving Fund (DWRF). The DWRF provides financial assistance to public
water systems for costs of infrastructure needed to achieve or maintain
compliance with Safe Drinking Water Act (SDWA) requirements, to protect
the public health and to allow states to carry out
prevention programs.
Bonds are purchased and resold nationally by a sub-unit of the department known as the Environmental Improvement and Energy Resources Authority (EIERA). At present, the EIERA bonds are rated as AAA. Funds generated by the sale of the bonds are deposited with a trustee bank in the applicant's name and are used for construction. The chart entitled Comparing "The Costs of Doing Business" PDF illustrates an example of the savings to a borrower that are possible when the SRF is used instead of conventional bond funding.
Additionally, the charges paid by local citizens of a water district or customers of a municipal water utility can be substantially lower when SRF funding is used compared to conventionally financed construction. To date, the SRF and related department programs have financed in excess of $135 million worth of drinking water construction.
DWSRF Loan Information
Drinking Water SRF - Look Again! PDF
State Revolving Fund (SRF) Leveraged Loans
State Direct Loan Program for applicants who do not meet the eligibility criteria of a Leveraged Loan
Small Borrower Direct Loan Program
Applications and Guidance Documents
SRF Flowchart PDF - This is a flow chart of the State Revolving Fund. The flow chart shows the process from project submission to applying for a loan through to it's authorization.
