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Fees, Grants, and Funds

Drinking Water: Federal State Revolving Fund (SRF) Program


Rule

Administrative Background

The national Drinking Water State Revolving Fund (DWSRF) program established by the Safe Drinking Water Act (SDWA) Amendments of 1996, authorizes the U.S. Environmental Protection Agency (EPA) to award capitalization grants to states, which in turn may provide low-cost loans and other types of assistance to eligible public water systems to finance the costs of infrastructure projects needed to achieve or maintain compliance with SDWA requirements. States are also authorized to set-aside a portion of their capitalization grants to fund a range of activities including administration, technical assistance, source water protection, capacity development, and operator certification.

Intended Use Plan (IUP 2017)

The State is required to submit an annual Intended Use Plan as long as the Fund or set-aside accounts remain in operation in order to receive the DWSRF grant award. The IUP outlines various aspects of the State's DWSRF program including the fund's financial status and goals, the various sources of revenue to the fund, and a list of proposed and authorized projects, among others. Program requirements may change from year to year, based on Congressional constraints, and are reported in the IUP. This IUP is available for the public to review.

Water Systems Eligible for Funding

Community water systems (both privately and publicly owned) and nonprofit non community water systems.

Available Financial Assistance

Low-interest loans (typically 2-4%, 20 years) and grants. Of all the funds allocated by this program, only approximately 8% are authorized as grants.

Application Process

To initiate the process, complete and submit the new combined application form in Microsoft Excel. This version will allow data to be directly imported into our internal database. Please fill out the application and email it to DDW. If you want to present your project to the Utah Drinking Water Board during a particular month, please note that certain deadlines apply. Refer to Required Submission Deadlines.

Placement on the Project Priority List

Your application will be evaluated by DDW staff, assigned priority points, and placed on a Project Priority List. The most recent list can be found in the latest Drinking Water Board packet. Systems whose projects have a high priority score are given the opportunity to be considered for financial assistance ahead of projects with lower scores.

Note the most recent PPL is in the most recent board packet.

Supplemental Application Documents

When a project is near the top of the Project Priority List, the sponsor will need to demonstrate that their water system has sufficient financial, managerial and technical capacity. When submitting your financial assistance application, these forms are already included. These forms are also available as separate documents.

Appearance Before the Utah Drinking Water Board

When all needed information is received, DDW staff will prepare a report to be presented to the Utah Drinking Water Board. At the board meeting, sponsors are given an opportunity to review the project and respond to the staff's recommendations. See Drinking Water Board Meetings for the board meeting schedule and agendas. There are certain deadlines that must be adhered to in anticipation of an appearance before the board. Please refer to the Required Submission Deadlines.

After Board Authorization

Before the authorized financial assistance can be obligated at a loan closing, several requirements must be met and appropriate documents submitted and found acceptable. Refer to the Closing Checklist. A Pre-award Compliance Review Report must also be completed and submitted. The Disadvantaged Business Enterprise (DBE) Procurement Requirements must be followed. An environmental assessment must be completed and a “Finding of No Significant Impact” (FONSI) must be issued or the project must be reviewed and qualify for a Categorical Exclusion from Further Environmental Review (CatEx).

Closing

When all documentation is in order, a "closing" is held. If warranted, the first incremental advance is transferred to the project sponsor at that time. Typically, the first incremental advance amounts to 20% of the Drinking Water Boards financial contribution.

Construction Phase

Please note the following:

  • A pre-construction meeting must be held and a representative from the Division must be in attendance
  • The Division will process pay requests as the project is constructed
  • WBE/MBE Documentation must be submitted semi-annually
  • Construction inspection services must be provided by a Utah-licensed professional engineer
  • Division personnel must conduct a final inspection of the project

Contact Information