Clean Water State Revolving Fund

The Clean Water State Revolving Fund (CWSRF) loan program provides low-interest financing and loan principal forgiveness to Michigan public entities to support wastewater and stormwater infrastructure, nonpoint source pollution control, and climate-resilient water systems, while protecting public health and the water quality of surface and groundwaters across the state. The program leverages federal capitalization grants, state matching funds, and recycled loan proceeds to ensure a sustainable revolving source of low-cost financing.

Eligibility is open to counties, cities, villages, townships, authorities, and other public entities established under state law. Projects are scored and prioritized based on water quality and environmental protection criteria. Communities qualifying as Overburdened or Significantly Overburdened receive substantial priority point scoring advantages (20 to 25 points), reduced interest rates (1.00% to 2.00%), and principal forgiveness allocations covering 13% to 18% of eligible project loan costs. In addition, recipients must complete programmatic requirements including environmental reviews resulting in a Finding of No Significant Impact (FNSI), compliance with Davis-Bacon prevailing wage requirements, American Iron and Steel (AIS) rules, Build America, Buy America (BABA) requirements for equivalency projects, and implementation of a Fiscal Sustainability Plan (FSP).

Eligible projects include municipal wastewater treatment plant (WWTP) upgrades and expansions, sewer collection system repair and replacement, combined sewer overflow (CSO) abatement, pump station improvements, stormwater infrastructure, decentralized publicly owned systems, and Green Project Reserve (GPR) components that promote water and energy efficiency or environmentally innovative practices.

Application involves a multi-step process. Potential borrowers must first submit an Intent to Apply (ITA) form online by November 1st to have a Water Infrastructure Funding and Financing Section (WIFFS) project manager assigned. Final project planning documents, engineering reports, and overburdened determination surveys must be submitted by May 1st. Projects are scored and ranked on the annual Project Priority List (PPL) in Michigan's Intended Use Plan (IUP). Entities placed within the fundable range must negotiate milestone schedules, complete formal loan applications (Parts I-III), obtain all necessary construction permits, and execute competitive bidding before closing on loans.