Federal State Revolving Fund (SRF) Program: Drinking Water

The State of Utah 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.

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

Financial assistance applicants must demonstrate that their water system has sufficient technical, managerial, and financial capacity. Capacity Assessment Worksheets are included as part of the financial assistance application and must be completed before your application will be reviewed. The worksheets are also available as separate documents.

• Capacity Assessment Worksheets 
• PDF 
• Asset Management

After an Applicant submits all the required information and documents, Division staff will prepare and present a project feasibility report to the Utah Drinking Water Board. Applicants are encouraged but not required to attend the Board meeting. At the meeting, applicants are given an opportunity to elaborate on the project need and answer the Board’s questions. If the proposed project meets the Board’s need and feasibility requirements, the Board may authorize financial assistance to the Applicant.

• See Drinking Water Board Meetings for schedule and agendas.

An Authorization Letter is issued by the Drinking Water Board and explains requirements the Applicant must meet before the loan can be closed. Requirements include but are not limited to:

• Complete an environmental assessment and be issued a “Finding of No Significant Impact” (FONSI) or qualify for a “Categorical Exclusion” (CatEx)
• Consult with the State Historic Preservation Office
• Document public notice and support for the project
• Demonstrate annual water revenue will cover future debt service
• Establish a capital facilities replacement reserve account
• Obtain a fidelity bond for employees handling loan funds
• Secure the loan with a bond or pledged collateral
• Submit engineering plans and specifications for Division approval
• Advertise for bids

Refer to the Guidance For Loan Recipient document for more detail.

For Federally funded projects, American Iron and Steel, Davis-Bacon, and Disadvantaged Business Enterprise (DBE) Procurement, and federal signage requirements must be followed during construction. Recipients must also register their entity with the System Award for Management (SAM).

Supporting documents for these federal requirements:

• Build America Buy America Act Requirements
• Federal Project Signage Requirements Instructions 
• DBE Procurement Requirements 
• EPA Form 5700-52A– DBE Utilization report
• DBE Contact Log for Bidders
• DBE Forms – Subcontractor Participation, Performance, and Utilization
• Equal Employment Opportunity Guidelines 
• Suggested Sources for Locating Certified MBE/WBE Contractors in Utah
• SAM Quick Start Guide 
• American Iron and Steel 
• Instructions for Complying with Davis-Bacon Wage Requirements
• Download All 

When all documentation is in order, a “loan closing” is held. Funds are transferred to a jointly administered escrow account and released only on a dual signature from both the water system and the Division of Drinking Water.

Please note the following:

• A pre-construction meeting must be held and a representative from the Division should be in attendance.
• The Division will process payment requests within the approved scope of work as the project is built.
• The Division will review all change orders to determine if additional expenses are eligible for payment.
• Project construction inspection services must be provided by a qualified inspector.
• Division personnel will conduct at least one interim project inspection as well as a final project inspection.
• Disadvantaged Business Enterprise Reporting must be submitted by October 30 each year.

Once construction is finished, appropriate documentation must be provided to properly closeout/finalize the project. These include lien releases from contractors, subcontractors and suppliers, an operating permit, and closing the escrow account.