Drinking Water State Revolving Funds Available by Roger Tsao, Bureau of Safe Drinking Water

The Safe Drinking Water Act Amendments (SDWA) of 1996 authorized a total of $9.6 billion nationally for the Drinking Water Revolving Fund (DWSRF) from Federal Fiscal Year 1997 through 2003. The DWSRF is to assist publicly owned and privately owned community water systems and nonprofit noncommunity water systems to finance the costs of infrastructure needed to achieve or maintain compliance with SDWA requirements and to protect public health in conformance with the objectives of the Act. Since the program's inception in 1998, the Department has successfully financed fifty-eight projects with a total loan amount of $124,714,343 and a standard loan maturity of 20 years. The Department provides 0% interest loans for one-half of the eligible costs and the New Jersey Environmental Infrastructure Trust (Trust) financed the remaining portion at the market rates. Through leveraging by the Trust, the Department is able to provide low interest loans to far more projects than if leveraging was not done.

To be considered eligible for funding, the project must be placed on the Project Priority List to receive a ranking. Presently, there are about 210 projects on the project Priority List totaling $612,278,504. The Department anticipates to award 46 projects from the list totaling $172,451,908 in November 2001. Although priority will be given to those projects ranked higher and ready to proceed, 15% of the DWSRF fund is reserved to provide financing for small systems serving fewer than 10,000 residents. In addition to the project funding, the DWSRF also provides funding for nonproject set-aside activities such as loans to acquire land or easement for compliance with the primary drinking water regulations or technical and financial assistance for water systems as part of a capacity development strategy.

For those interested in receiving financing through the DWSRF in the next funding cycle (November 2002), you must submit the Project Ranking Form by the end of the summer and submit the Commitment Letter and planning documents by October 1, 2001. You may find the ranking form and program schedule at our website: www.state.nj.us/dep/watersupply/loandata.htm. If there are any questions, please contact Josephine Craver or Roger Tsao at (609) 292-5550.