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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 (Word)

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:

Idaho's Drinking Water Revolving Loan Fund and Planning Grant Program

DEQ Brochure, Updated May 2008:

pdf 233 kb, 2 pages

Overview of the Loan Process  
Interest Rate  

Source of Revenue

 
FY 2008 Intended Use Plan & Loan Recipients  
FY 2009 Intended Use Plan  
 
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
The interest rate is established annually on the basis of 75% of the index of 20-year obligation bonds. The interest rate for most loans issued in FY2008 will be 3.00%. 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.

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 2008 Intended Use Plan

Each year the Department issues a plan defining how it intends to allocate resources for drinking water facilities planning, design, and construction projects. An Intended Use Plan for State Revolving Fund Drinking Water Projects for FY 2008 was adopted by the Board of Environmental Quality at its April 2007 meeting. Under the ranking, a total of 59 projects will be eligible for more than $39 million for drinking water grants and loans in FY 08.

› View Drinking Water State Revolving Fund Intended Use Plan for FY 2008
  (DEQ Publication, April 2007: pdf 64 kb, 20 pages)
  Includes Priority List for Drinking Water Loans for FY 2008.

To date, drinking water design and construction loans have been awarded to the following recipients in FY 2008:

 
 FY 2009 Intended Use Plan

Under the ranking for FY 09, a total of 23 projects will be eligible for water pollution control grants or loans totaling more than $13 million. The plan was adopted by the Board of Environmental Quality at its April 2008 meeting.

   
View Drinking Water State Revolving Fund Intended Use Plan for FY 2009
  (DEQ Publication, April 2008: pdf 67 kb, 18 pages)
Includes Priority List for Drinking Water Loans for FY 2009.



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