Drinking Water State Revolving Fund (DWSRF) Construction

The Drinking Water State Revolving Fund (DWRSF) program assists public water systems in financing the cost of drinking water infrastructure projects needed to achieve or maintain compliance with Safe Drinking Water Act (SDWA) requirements and support to human right to water. The Division of Financial Assistant (DFA), State Water Board manages the DWSRF program and prioritizes financing for projects that address the most serious human health risks, are necessary to comply with SDWA, and assist public water systems (PWS) most in need on per household basis. Periodically funding programs that help provide clean and safe water are used in combination with the DWSRF program. Eligible community water systems (CWS) currently may receive principle forgiveness (PF)/grant from $2,000,000 up to 100% of total eligible project cost depending on the project types, community served by the CWS, and residential water rates as a percentage of MHI. Financing terms varies from 0% interest to half of California's average general obligation bond rate for the previous calendar year. Repayment may be amortized for 30 to 40 years or the useful life of he financed construction facilities. Construction of water systems' infrastructures (treatment facilities, water sources, storages, and distribution systems) and contingency of change orders are common eligible construction cost. Additional eligible construction cost examples are value appraisal and land purchase for right-of-way and easements, planning and design, administration, and construction management. Applications for the DWSRF program and associated funding are accepted on a continuous basis. After DFA receives a complete application, a detailed technical, environmental, legal, and financial review is conducted to determine the applicant’s eligibility for DWSRF and associated drinking water funding.