The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is helping to address drinking water infrastructure needs throughout Michigan with the Drinking Water State Revolving Fund (DWSRF) loan program. The DWSRF program is designed to assist water suppliers in satisfying requirements of the Safe Drinking Water Act and improving drinking water quality by offering low-interest loans. Water suppliers who own either a community water supply or a non-community water supply that operates as a non-profit (which typically would need to bond through another eligible entity) can qualify to receive DWSRF assistance. Qualified water suppliers may apply to borrow funds to plan, design, and construct eligible drinking water infrastructure projects.
Eligible drinking water projects may include the following:
- New wells or upgrades to existing wells
- Upgrades or expansions to existing facilities
- Removal and replacement of public and private lead service lines
- Transmission lines
- Pumping facilities
- Distribution systems
- New water treatment plants
- Other related waterworks system improvements
EGLE is required to provide a portion of the funds each year as additional subsidy, which is typically allocated as principal forgiveness. The amount and category for awarding loan principal forgiveness may change annually, but in recent years has been allocated to disadvantaged communities for lead service line replacement activities.
To learn more about DWSRF, interested applicants should submit an Intent to Apply (ITA) form to the Water Infrastructure Financing Section (WIFS) of EGLE’s Finance Division by January 31, 2022. This is the first step in the application process in order to be considered for the DWSRF Fiscal Year (FY) 2023 Project Priority List. Final project plans for FY 2023 projects will be due in the summer of 2022. Loans close on a quarterly schedule in each FY, from December through September.
Submitting an ITA form will initiate a meeting with a WIFS Project Manager, where they will share information about the DWSRF process and available financing options. Contact WIFS at EGLE-WIFS@michigan.gov with additional questions or visit the DWSRF website at Michigan.gov/DWSRF for more details and to find the ITA form mentioned above.
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