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Idaho's Drinking Water

Revolving Loan Fund and

Planning Grant Program

 (pdf 233 kb, 2 pages)

Planning Grants for
Public Water Systems

Guidance for Public Water Systems

Link to

Forms for Drinking Water SRF Loans

Outline and Checklist for Environmental Information Documents (pdf)

Contact DEQ

Regional Office
Water Quality Managers

State Office

Water Quality Division

For questions related to priority list development or environmental information documents, contact:

Nancy Bowser

(208) 373-0406

For all other questions, contact:

Carol Garrison

(208) 373-0577

 


Drinking Water in Idaho:

Construction Loans for Public Water Systems

Program Eligibility

Link to:

Drinking Water Loan Handbook

and List of Forms (pdf)
Overview of the Loan Process
Interest Rate

Source of Revenue
FY 2009 Loan Recipients
Intended Use Plan for FYs 2009 and
  2010 (April 21, 2009 - June 30, 2010)
FY 2010 Loan Recipients
 
DEQ's Drinking Water Revolving Loan Fund provides below-market-rate interest loans to help repair or build new drinking water facilities. Loans of up to 100% of project costs may be awarded for project design and/or construction.

 Program Eligibility
Community water systems and non-profit, non-community water systems are eligible to participate in the Drinking Water Loan Program. Community water systems serve at least 15 service connections used by year-round residents or regularly serve at least 25 year-round residents. Non-community water systems regularly serve at least 25 of the same persons over six months in a year.
 Overview of the Loan Process

DEQ queries drinking water systems annually to obtain information on projects for which loan funds can be used. Potential candidates must submit a Letter of Interest to DEQ indicating their desire for DEQ funding and stating the improvements or expansion needed.  Those systems submitting a letter of interest are listed on the state's annual Priority List, developed through a rating and ranking process based upon public health concerns. The systems on the Priority List are further refined based on the entity's readiness to proceed. The refined list makes up the final "fundable list."

Fundable projects on the Priority List are placed on the Intended Use Plan, which outlines the purpose and goals of the state's drinking water loan program, explains how projects are selected for funding, and identifies priority projects eligible for state assistance.

Once funding is secured from the EPA and the state match is provided, communities with projects on the Intended Use Plan are invited to submit applications. After review of the application and satisfaction that all environmental and legal requirements have been met, a loan may be offered.
 
 Interest Rate
For the remainder of 2009 and through 2010, the interest rate for loans will range from 0% to 1.75%. These loans must generally be fully repaid within 20 years of project completion. Some applicants may qualify as "disadvantaged" and be eligible for an interest rate as low as 0%, a 30-year repayment schedule, and possible principal forgiveness.
 
 Source of Revenue

Funding is derived from four sources. Congress appropriates funds to the U.S. Environmental Protection Agency (EPA), which then allots those funds to the states based upon set formulas. Each state is required to provide a 20% match. Idaho's match comes from a transfer to the loan account from the Water Pollution Control Account. Loan repayments and interest earnings provide other resources for new drinking water loans.

> View FY 2008 Annual Report (to EPA)for the Drinking Water Source Revolving Fund
   (pdf 866 kb, 38 pages)

Periodically, EPA conducts an audit of state revolving loan funds to assure that monies are being appropriately allocated.

> View EPA's Program Evaluation Report: DEQ Drinking Water State Revolving Fund,
   State Fiscal Year 2007 (pdf 2.7 mb, 31 pages)

 
 FY 2009 Loan Recipients

In FY 2009, drinking water design and construction loans were awarded to the following recipients:

> View PDF map identifying locations of all FY 09 Drinking Water and Wastewater

   Grant and Loan Recipients.

 
 Intended Use Plan for FYs 2009 and 2010
 (April 21, 2009 - June 30, 2010)

Each spring DEQ develops a draft plan defining how it intends to allocate resources for drinking water planning, design, and construction projects during the next state fiscal year. A public comment period is then held on the draft plan, after which the plan is presented to the Board of Environmental Quality for final review and adoption.

Previous years' plans were structured according to the state fiscal year, which begins July 1 of each year and ends the following June 30. In spring 2009, however, Idaho received federal stimulus funding for drinking water improvement projects. To enable the federal stimulus dollars to be disbursed in FY 09, the effective date of the current plan was moved up to April 21, 2009, the date it was approved by the Board of Environmental Quality. The plan extends through the end of the 2010 fiscal year (June 30, 2010). Under the plan, a total of 19 projects will be eligible for loans totaling more than $48.5 million (see Attachment I).

› View Drinking Water State Revolving Fund Intended Use Plan for FYs 2009 and
  2010 (DEQ Publication, April 2009: pdf 132 kb, 28 pages)
> View EPA approval letter.
 
 FY 10 Loan Recipient

To date in FY 2010, a drinking water construction loan has been awarded to the following recipient:
 
 
 



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