Each SRF program office has a structured application and ranking process for developing the requisite IUP, the timing, requirements, and criteria. It is imperative that project leaders interested in pursuing CWSRF or DWSRF assistance engage with their state program to express interest and identify the state-specific requirements and timelines; details can vary from state to state.

Typically, project leaders must submit project information via a project proposal, pre-application, or project information form – depending on the state process and requirements (for this resource we collectively refer to this as the “proposal”).

In addition to the project description, proposals include a justification for the project (e.g., compliance or capacity needs), cost estimates and financing needs, discussion of environmental and public health benefits, engineering or planning documentation (e.g., a facility plan), and readiness to proceed. To gather this information and build a project narrative, local leaders should engage with both internal and external stakeholders across the city government, including but not limited to their public works, finance, environmental services, and utility departments.

Selection for Funding

For the SRF programs, states establish scoring and ranking criteria to establish their Project Priority List (PPL), which ranks the projects for which the state received preliminary applications. The ranking established here is used to create the IUP. The variation between the PPL and IUP is dependent on the availability of funds in each state.

While the priority ranking and scoring criteria varies by state, they primarily focus on public health, water quality, and regulatory mandates such as those relating to violations of the Safe Drinking Water Act or Clean Water Act and existing consent decrees or enforcement orders. Additionally, economic need and affordability might be considered and evaluated based on utility rates or median household income. Ranking criteria can also address concerns like green infrastructure, system resilience, and innovation.

Inclusion on the IUP does not guarantee funding as readiness and fund availability also play a role. Once a project is included on the IUP and funds become available, then the local project leader will work with the state SRF office to complete the loan application and environmental review, negotiate financial terms and conditions, and execute a financial agreement.

CWSRF and DWSRF have very similar financial structures. For both, borrowers must demonstrate an ability to repay — often via utility revenues or rate pledges. Both can also provide credit subsidies, with criteria typically defined by the state, and loan terms of up to 30 – 45 years at below-market interest rates. Additionally, since they are federally funded programs, they must meet federal requirements, including but not limited to those relating to the National Environmental Policy Act (NEPA), Davis-Bacon prevailing wages, and Build America, Buy America requirements.

CWSRF and/or DWSRF may not be sufficient to cover the needs of local water systems; project leaders should consider alternative funding sources for water infrastructure projects as well the opportunity to combine with other sources together with SRF financial assistance. 

For example, the City of Peru, Indiana blended DWSRF assistance and Community Development Block Grant (CDBG) funding to make an $8.5 million investment in various water system improvements, including the replacement of lead service lines and water mains as well as generator installations. 

In Hoboken, New Jersey, the City leveraged a blended capital stack that included $10 million in funding from the Building Resilient Infrastructure and Communities (BRIC) Program and $44 million in CWSRF financing for the development of their Northwest Resiliency Park. The Northwest Resiliency Park project transformed a former industrial site into a public park with both recreational and resiliency benefits by housing expansive grey and green stormwater infrastructure. 

In Kalamazoo, Michigan, the City is leveraging a Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation Program (PROTECT) award to upgrade stormwater infrastructure by increasing system capacity, a project that would also be eligible for CWSRF assistance as an alternative. The Kalamazoo project is further detailed on the Local Infrastructure Hub website.

Construction, expansion, or rehabilitation of publicly-owned water treatment plants and collection systems

The Ardmore Wastewater Treatment Plant, serving approximately 1,100 customers in Alabama and Tennessee, was built in the 1960s and is no longer suited to effectively treat daily flows. With approximately $20 million in financial assistance from Alabama’s CWSRF, the facility will be upgraded to improve capacity to handle both routine and peak demands.

This project was recognized by the EPA as part of the PISCES 2025 Recognition Program.

Addressing diffuse pollution from runoff, such as stormwater, agriculture, or urban sources

In Wetmore, Kansas, a partnership between CWSRF, the Bureau of Watershed Management, Glacial Hills Resource Conservation and Development, and the City of Wetmore established a new interseeding program to promote the use of cover crops to farmers in the region. Planting cover crops in the offseason can conserve water resources, reduce excess nutrients that can enter water bodies, and better protect water quality by improving the integrity of the soil profile over time.

Through the partnership, the City is receiving a pass-through loan that will be forgiven; funding goes to a local nonprofit partner who purchases the interseeding equipment and provides the equipment to agricultural service providers who can then significantly discount the cost of leasing the equipment to farmers to try the practice. More information on this project and best practices for equipment leasing programs can be found in this EPA case study.

Implementing habitat, stormwater, or pollution-reduction projects that advance management plans of EPA-designated National Estuary Programs

The Association of Bay Area Governments in California received CWSRF assistance in the form of a $693,000 loan with 100% principal forgiveness for a multi-phase project to inform decision-making around the San Francisco Estuary’s health and develop the first State of the Estuary Report. The last phase included the complete overhaul and update of the San Francisco Estuary Partnership’s Comprehensive Conservation and Management Plan.

Support for onsite or clustered wastewater treatment systems such as septic systems or small community-scale systems

In Massachusetts, the state CWSRF program includes a Community Septic Management Program, whereby communities can get pass-through loans to go to homeowners for repairs or replacements of failed septic systems. Homeowners then repay their loans via property tax payments, while the community maintains a lien on the property until the loan is repaid. From 1996 to 2020, this program made over $142 million in loans and financed more than 480 septic projects.

Controlling wet-weather pollution from stormwater runoff or combined sewer overflows

The City of Hoboken and North Hudson Sewerage Authority undertook two interconnected projects to address water quality and public health problems by reducing combined sewer overflows (CSO), mitigating flooding, and enhancing urban resilience. This includes the creation of Northwest Resiliency Park that serves as both recreational space and a critical flood mitigation solution with advanced stormwater management systems, including an underground detention tank. Then they constructed a pumping station to convey water overflow to the new detention tank. Together, these projects have reduced CSO events from four per month to just four per year. The projects were financed with $40 million in loans from New Jersey’s CWSRF program, including $3 million in principal forgiveness.

Together, the two projects were recognized by the EPA as part of the PISCES 2025 Recognition Program. Northwest Resiliency Park was also the focus of a prior Local Infrastructure Hub case story.

Projects that conserve water, reuse treated wastewater, or improve efficiency while maintaining or improving water quality

Loudon Water, in northern Virginia, has utilized multiple CWSRF loans to finance recycled water projects that provide cooling water to more than 40 data centers. In 2024, Loudon Water’s Reclaimed Water Program delivered 736 million gallons of reclaimed water to customers, saving potable water and reducing nutrient discharge to the Potomac River and Chesapeake Bay.

Innovative demonstration projects that test watershed-scale approaches to water quality management

Brookhaven, Georgia was awarded a $5.7 million CWSRF loan by the Georgia Environmental Finance Authority. The loan was used to finance the acquisition of 33 acres of forested land adjacent to the Dekalb-Peachtree Airport that will preserve one of the largest remaining tracts of urban forest in the Atlanta area, helping to protect the watershed of Peachtree Creek.

Per the terms of the financial agreement, the city will pay 0.89% interest on the 20-year loan and will use their stormwater fund as the repayment source.

Improvements to energy efficiency of wastewater treatment and collection systems

The Clifton Sanitation District, one of the largest public utilities in western Colorado, is investing in a new solar array with a $3 million loan from Colorado’s CWSRF program. The new solar array will provide more reliable, onsite energy generation on a district-owned parcel that is unsuitable for treatment due to local regulations, ensuring resiliency and protecting affordability for rate-payers. This transforms underutilized land owned by the utility into an asset, which will offset the District’s annual electricity consumption. The utility will also be able to generate $180,000 annually in extra revenue by selling surplus energy.

This project was recognized by the EPA as part of the PISCES 2025 Recognition Program.

Projects that treat and reuse municipal effluent or stormwater for non-potable uses

Los Alamos County in New Mexico received a $26 million loan from New Mexico’s CWSRF program. The loan enabled the County to invest in the White Rock Resource Reclamation Facility in Los Alamos, New Mexico, which replaced the existing wastewater treatment plant from 1966. The facility was brought online in November 2024.

The project employs technologies that reclaim wastewater and reduce the demands on potable water resources by generating a reusable end product while utilizing means that minimize electricity demand, reduce stormwater pollution, and minimize manpower.

This project was recognized by the EPA as part of the PISCES 2025 Recognition Program.

Upgrading facilities to protect against climate change impacts, natural disasters, or security threats

Oklahoma City Water Utility Trust received over $55 million via a CWSRF loan to implement cybersecurity upgrades that are ensuring long-term financial and operational sustainability without imposing undue financial burdens on the community.

The upgraded software ensures compliance with national cybersecurity standards, protects water and wastewater systems, enhances community resilience, and maintains secure customer data and payment processing.

This project was recognized by the EPA as part of the PISCES 2025 Recognition Program.

Providing planning, design, and engineering assistance to support communities in developing eligible projects

The Clean Water Act allows states to set aside up to two percent of each capitalization grant they receive to fund technical assistance services to rural, small, and tribal publicly-owned treatment works. This funding typically goes towards contracts with  technical assistance providers to help eligible recipients address technical, managerial, and financial capacity.

Eligible recipients for technical assistance typically must request it from the state and the state should include it in their Intended Use Plan (IUP), as described later in this resource.

Construction or improvement of facilities that remove pollutants and contaminants from water to meet regulatory health standards

The City of Woonsocket received $55 million in total financing from Rhode Island’s DWSRF. This financing allowed the city to build a new water treatment plant that replaced an aging plant that no longer met the State’s water quality discharge standards. Additionally, by building the new plant outside of the Blackstone River’s floodplain, the City is increasing resilience to future storm events.

The new plant began producing water in July 2021.

Projects that convey treated water to users such as pipes, mains, service lines, and associated valves or meters

Reed City has leveraged about $9.3 million in loans from the State of Michigan’s DWSRF program to replace lead service lines and water mains. As of March 2025, the City has replaced 90% of their lead service lines with the remaining 10% expected to be completed by the end of 2025.

Development, rehabilitation, or protection of water sources

The City of New London leveraged a loan of approximately $6 million from Connecticut’s DWSRF program to install a new raw water intake pump station. The new pump station was constructed to enable the City to access additional water from Lake Konomoc and increase the safe yield of their source to augment their system’s supply during peak demand periods and severe drought conditions.

Construction or rehabilitation of tanks, reservoirs, or standpipes that store potable water

The City of Pineville leveraged a $1.8 million grant alongside a $594,000 loan from Missouri’s DWSRF program to add treatment technologies to remove radionuclides from a well that was previously shut down and build a new 200,000 gallon water tower. The project, completed in 2024, also includes additional infrastructure improvements which eliminates the need for a booster pump station that was previously needed to address water pressure issues.

This project was recognized by the EPA as part of the 2025 Aquarius Recognition Program.

Combining water systems to improve compliance, capacity, or sustainability

Historically, residents of the Cities of Turlock and Ceres in California were dependent on drinking water from the Turlock Groundwater subbasin. However, reliance on groundwater as a single source for drinking water is not sustainable due to the decline in water quality and increasing number of regulated contaminants. To address the water quality and supply reliability challenges faced by both cities,  they formed a joint authority — the Stanislaus Regional Water Authority — which received a $184 million DWSRF loan to construct a water treatment plant, pump station, and transmission infrastructure. The partnership is crucial to address the challenges facing both cities and strengthen long-term water supply reliability.

The project was completed in 2023, and was recognized by the EPA as part of the 2025 Aquarius Recognition Program.

Establishment of a new community water system to provide safe water where no public supply exists

As part of Texas’ FY 2026 DWSRF Intended Use Plan (IUP), North Alamo Water Supply Company is eligible to receive $5.42 million in DWSRF assistance for the Cameron-Willacy Counties First-Time Water Service Project. The project aims to extend safe, reliable drinking water to underserved areas in the two counties by constructing new water distribution infrastructure. The initiative will provide first-time public water services to residents who currently rely on private wells or inadequate water sources, and will enhance public health, quality of life, and long-term community resilience.