The Drinking Water State Revolving Fund (DWSRF) program was established by the Safe Drinking Water Act (SDWA) Amendments of 1996. Congress appropriates funding for the DWSRF. The U.S. Environmental Protection Agency then awards capitalization grants to states, which in turn may provide low-cost loans and other types of financial assistance to eligible public water systems to finance the costs of drinking water infrastructure projects. 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.
- EPA’s Drinking Water State Revolving Fund
Background and guidance information.
- R309-705: Federal Drinking Water Revolving Fund Program
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.
Low-interest loans (typically below market rate, 20-40 years) and grants. To qualify for grant, applicants must demonstrate that the estimated average water bill exceeds 1.75% of the local median adjusted gross income (MAGI) or the local MAGI is less than or equal to 80% of the State MAGI. MAGI is based on most recent data from the Utah State Tax Commission and are available here.
Your application will be evaluated by Division 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.
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.
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.
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.