Drinking Water State Revolving Fund

The Drinking Water State Revolving Fund (DWSRF) is a financing program administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) in partnership with the Michigan Finance Authority (MFA). Established under the Safe Drinking Water Act (SDWA) Amendments of 1996 and augmented by Bipartisan Infrastructure Law (BIL) funding, the program assists public water systems in financing the costs of replacement and repair of drinking water infrastructure to protect public health and achieve or maintain SDWA compliance.

Eligible applicants include community water supplies and non-community water supplies that operate as non-profits. Applicants must have the legal, managerial, and financial capability to ensure debt repayment and must issue a municipal bond or note to the MFA. Every year, applicants seeking disadvantaged status must submit an affordability calculation; entities identified as Overburdened or Significantly Overburdened are eligible for subsidized interest rates (as low as 1.00% for up to 40 years) and additional subsidization in the form of principal forgiveness.

Eligible project scopes include watermain replacement and looping, full lead and galvanized service line replacement, drinking water treatment plant construction and upgrades, finished water storage rehabilitation and construction, new well installation and wellhead rehabilitation, booster pump stations, SCADA systems, water meter upgrades, and projects addressing emerging contaminants such as PFAS. Construction activities must comply with American Iron and Steel (AIS), Build America, Buy America (BABA), and Davis-Bacon prevailing wage requirements.

The application follows a multi-step process. Potential applicants must submit an electronic Intent to Apply (ITA) form by November 1st to have a project manager assigned from EGLE's Water Infrastructure Funding and Financing Section (WIFFS). Final project planning documents and Overburdened Determination Surveys must be submitted by June 1st. Eligible projects are evaluated, scored, and placed on the annual Project Priority List (PPL) in the Intended Use Plan (IUP). Approved borrowers must execute a milestone schedule, satisfy environmental review requirements (FNSI or Categorical Exclusion), obtain necessary construction permits, and complete loan closing through the MFA across scheduled quarterly closing dates.