Official Government Website

Construction Loans

DEQ’s State Revolving Fund (SRF) program provides low-interest loans to qualified recipients to improve their drinking water and wastewater facilities. SRF construction loans are 20-year, below-market-rate interest loans that typically result in significant cost savings to recipients over the life of the project. Principal forgiveness of a portion of the loan and up to 30-year terms is also available to recipients who qualify as a disadvantage system following IDAPA 58.01.12.021. Availability of funding varies each year and loans of up to 100% of project costs may be awarded for project planning, design, and construction.

The legislative Services Office and EPA perform annual audits on the SRF program to ensure monies are being used appropriately and meet EPA grant requirements. A public records request may be submitted to obtain a copy of these audits.

Loan Recipients

The following list is the current fiscal year recipients. This list will update July 1. 

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Wastewater – loans are available for counties, cities, special service districts, other governmental entities, and nonprofit corporations with the authority to collect, treat, or dispose of wastewater or otherwise provide direct water quality benefits. 

Drinking Water – loans are available to all community public water systems and non-profit non-community public water systems. Public water systems are defined by IDAPA 58.01.08, Idaho Rules for Public Drinking Water Systems and summarized below:

  • Community Water System: A public water system that serves at least 15 service connections used by year-round residents or regularly serves at least 25 year-round residents.
  • Non-community Water System: A public water system that serves the public but does not serve the same people year-round. A non-community water system is either transient or non-transient.
  • Transient – Does not regularly serve at least 25 of the same people for more than 6 months per year (e.g., rest area or campground with its own water supply).
  • Non-Transient – Regularly serves at least 25 of the same people for more than 6 months per year (e.g., a school or hospital with its own water supply).

Please see the SRF Customer Handbook for additional eligibility information.

Our staff queries eligible systems annually to obtain information on projects eligible for loans. Interested systems must submit a letter of interest (LOI) for the following fiscal year between October and January. DEQ evaluates, rates, and ranks the LOIs for inclusion on the state’s priority list in the State Revolving Fund Intended Use Plans (IUP). Rating criteria focus on potential public health and environmental concerns, the long-term viability of the system (i.e., sustainability), and the status of the system’s compliance with state and federal regulations. 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.

Systems on the priority list are further refined based on the applicant’s readiness to proceed. The IUPs, which outline the purpose and goals of the state’s drinking water and wastewater loan programs, explains how projects are selected for funding and identify priority projects eligible for state assistance. The grant priority lists and IUPs are issued for a public comment period and then approved by the Board of Environmental Quality annually, typically in May.

Applicants with projects on the  IUP fundable range are invited to apply for funding. Invitations are normally issued shortly after DEQ Board approval. A loan may be offered after a review of the application and satisfaction that all environmental and legal requirements have been met. The loan application forms and requirements are available in the SRF Customer Handbook under the Resources section below.

Build America, Buy America – Projects funded in part or whole with SRF funds after May 14, 2022, are required to comply with Build America, Buy America provisions as required by the Infrastructure Investment and Jobs Act, 2021 Pub L. No. 117-58. These provisions expand upon American Iron and Steel requirements to require that, in addition to iron and steel, all manufactured products and construction materials purchased for the project be produced in the United States. These requirements may vary from project to project depending on funding sources and the date of the executed loan agreement. Please refer to the SRF Customer Handbook for additional requirements and information.

American Iron & Steel – Provisions of P.L. 113-76, Consolidated Appropriations Act, 2014 and the Infrastructure Investment and Jobs Act, 2021 Pub L. No. 117-58 require that iron and steel, manufactured products, and construction materials purchased for SRF projects be produced in the United States. These requirements may vary from project to project depending on funding sources and the date of the executed loan agreement. Please refer to the SRF Customer Handbook for additional requirements and information.

Davis Bacon Wages – The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) requires that Davis-Bacon prevailing wage requirements apply to all construction carried out in whole or in part with assistance made available by the SRF loans for contracts that exceed $2,000. The recipient’s responsibilities regarding implementing Davis-Bacon wages are included in loan agreements. At the same time, the requirements for the contractor(s) and subcontractors are incorporated into the construction contract through DEQ’s supplemental specification insert. Please refer to the SRF Customer Handbook for additional requirements and information.

Green Project Reserve (GPR) – As a condition for receiving federal funds for wastewater infrastructure improvement projects, The Fiscal Year (F.Y.) 2012 Appropriation Act (P.L. 112-74) requires DEQ to allocate not less than 10% of funds to projects that address green infrastructure, water conservation, energy efficiency improvements, or other environmentally innovative activities which are commonly known as green project reserve (GPR). DEQ has continued the GPR efforts to drinking water loans to encourage long-term sustainability. Each year DEQ solicits and incentivizes projects that include GPR components through the Letter of Interest (LOI) process. In their LOI, applicants identify potential GPR components and associated cost estimates. These GPR components are incorporated in the loan agreements. Near completion of the project, recipients must submit documentation of the actual construction costs in a GPR technical memorandum. DEQ uses this information to satisfy the reporting requirements needed to maintain funding. For assistance in developing the format and content of the GPR technical memorandum, please get in touch with the DEQ SRF loan program. Historical GPR components and associated final costs can be viewed at https://www2.deq.idaho.gov/admin/LEIA/index.html?view=folder&id=2633.

State Environmental Review Process (SERP) – All SRF projects must comply with SERP. DEQ is guided by 40 CFR Par 6 and will implement a “National Environmental Policy Act (NEPA)-like” process. 40 CFR Part 6 identifies the scope of federal environmental concerns and objectives that must be addressed. Please refer to the SRF Customer Handbook for additional information regarding the SERP process.

To review environmental determinations for the projects below, please submit a public records request at: deq.idaho.gov/public-records-request/.

Categorical Exclusion (Cat Ex)

Project NameApplicant NameEnvironmental DeterminationIssuance Date
Cottonwood (City of) Wastewater Improvement ProjectCity of CottonwoodFinding of No Significant Impact (FONSI) Concurrence2023 November 27
Cave Bay Community System Drinking Water Improvement ProjectCave Bay Community SystemCategorical Exclusion (Cat Ex)2023 December 23
Kingston-Cataldo Water & Sewer District Wastewater Improvement ProjectKingston-Cataldo Water & Sewer DistrictCategorical Exclusion (Cat Ex)2023 December 26
Letha Sewer District Wastewater Improvement ProjectLetha Sewer DistrictCategorical Exclusion (Cat Ex)2023 December 04
Rigby (City of) Drinking Water Improvement ProjectCity of RigbyFinding of No Significant Impact (FONSI)2024 January 11
Yellow Pine Water Users Association Drinking Water Improvement ProjectYellow Pine Water Users AssociationCategorical Exclusion (Cat Ex)2023 November 23
Birch Creek Culinary Water Company Drinking Water Improvement ProjectBirch Creek Culinary Water CompanyCategorical Exclusion (Cat Ex)2023 November 08
Cottonwood Point Water & Sewer Association Drinking Water Improvement ProjectCottonwood Point Water & Sewer AssociationCategorical Exclusion (Cat Ex)2023 November 01
Panorama Hills Water Company Drinking Water Improvement ProjectPanorama Hills Water CompanyCategorical Exclusion (Cat Ex)2023 October 25
Elk City Water & Sewer District Drinking Water Improvement ProjectElk City Water & Sewer DistrictCategorical Exclusion (Cat Ex)2023 October 04
Caldwell Housing Authority Drinking Water Improvement ProjectCaldwell Housing AuthorityCategorical Exclusion (Cat Ex)2023 July 27
Drake Subdivision Drinking Water Improvement ProjectDrake Subdivision Property Owner’s Association of Domestic & Lateral Water Users, Inc.Categorical Exclusion (Cat Ex)2023 January 11
McCammon (City of) Wastewater Improvement ProjectCity of McCammonCategorical Exclusion (Cat Ex) 2023 January 11
Riverside Water & Sewer District Drinking Water Improvement ProjectRiverside Water & Sewer DistrictCategorical Exclusion (Cat Ex)2023 January 9
Eastern Idaho Regional Sewer District’s Oxbow Water Reclamation Facility Wastewater Improvement ProjectEastern Idaho Regional Sewer DistrictFONSI2023 May 18
Notus (City of) Drinking Water Improvement ProjectCity of NotusCategorical Exclusion (Cat Ex)2023 April 11
Riverside Water & Sewer District Wastewater Improvement ProjectRiverside Water & Sewer DistrictCategorical Exclusion (Cat Ex)2023 January 4
Shoshone (City of) Drinking Water Improvement ProjectCity of ShoshoneCategorical Exclusion (Cat Ex)2022 October 28
American Falls (City of) Drinking Water Improvement ProjectCity of American FallsCategorical Exclusion (Cat Ex)2022 October 26
Challis (City of) Drinking Water Improvement ProjectCity of ChallisCategorical Exclusion (Cat Ex)2022 October 20
Greenferry Water and Sewer District Drinking Water Improvement ProjectGreenferry Water and Sewer DistrictCategorical Exclusion (Cat Ex)2022 October 14
Harrison (City of) Wastewater Improvement ProjectCity of HarrisonCategorical Exclusion (Cat Ex)2022 October 05
Harrison (City of) Drinking Water Improvement ProjectCity of HarrisonCategorical Exclusion (Cat Ex)2022 September 28
Council (City of) Drinking Water Improvement ProjectCity of CouncilCategorical Exclusion (Cat Ex)2022 August 17
Carlin Bay Drinking Water Improvement ProjectCarlin Bay Property Owner’s AssociationFinding of No Significant Impact (FONSI)2020 November 05
Grangeville (City of) Drinking Water Improvement ProjectCity of GrangevilleCategorical Exclusion (Cat Ex)2022 June 15
Grangeville (City of) Wastewater Improvement ProjectCity of GrangevilleCategorical Exclusion (Cat Ex)2022 June 15
Roberts (City of) Wastewater Improvement ProjectCity of RobertsCategorical Exclusion (Cat Ex)2022 June 08
Kootenai County Water District No. 1 Drinking Water Improvement ProjectKootenai County Water District No. 1Categorical Exclusion (Cat Ex)2022 May 23
Coeur d’Alene (City of) Wastewater Improvement ProjectCity of Coeur d’AleneFinding of No Significant Impact (FONSI) Reaffirmation2022 February 1
Clark Fork (City of) Drinking Water Improvement ProjectCity Clark ForkCategorical Exclusion (Cat Ex)2022 January 4
Nezperce (City of) Wastewater Improvement ProjectCity of NezperceConcurrence of Finding of No Significant Impact (FONSI)2021 December 16
Craigmont (City of) Wastewater Improvement ProjectCity of CraigmontCategorical Exclusion (Cat Ex)2021 November 25
Grace (City of) Wastewater Improvement ProjectCity of GraceCategorical Exclusion (Cat Ex)2021 December 9
Garfield Bay Water & Sewer District Wastewater Improvement ProjectGarfield Bay Water & Sewer DistrictCategorical Exclusion (Cat Ex)2021 December 8
Laclede Water District Drinking Water Improvement ProjectLaclede Water DistrictFinding of No Significant Impact (FONSI)2021 November 8
Kidd Island Bay Lots Sewer District Wastewater Improvement ProjectKidd Island Bay Lots Sewer DistrictCategorical Exclusion (Cat Ex)2021 October 19
Winchester (City of) Wastewater Improvement ProjectCity of WinchesterCategorical Exclusion (Cat Ex)2021 August 5
Grand View (City of) Drinking Water Improvement ProjectCity of Grand ViewCategorical Exclusion (Cat Ex)2021 August 4
Syringa Heights Water District Drinking Water Improvement ProjectSyringa Heights Water DistrictCategorical Exclusion (Cat Ex)2021 July 29
Homedale(City of) Wastewater Improvements ProjectCity of HomedaleConcurrence of Finding of No Significant Impact (FONSI)2021 July 28
Gooding (City of) Wastewater Improvements ProjectCity of GoodingCategorical Exclusion (Cat Ex) Reaffirmation2021 March 24
Dayton (City of) Drinking Water Improvements ProjectCity of DaytonCategorical Exclusion (Cat Ex)2021 June 30
Aberdeen(City of) Wastewater Improvements ProjectCity of AberdeenFinding of No Significant Impact (FONSI)2021 June 28
McCammon (City of) Drinking Water Improvements ProjectCity of McCammonCategorical Exclusion (Cat Ex)2021 April 21
Reubens (City of) Drinking Water Improvements ProjectCity of ReubensCategorical Exclusion (Cat Ex)2021 May 10
Elk River (City of) Wastewater Improvements ProjectCity of Elk RiverCategorical Exclusion (Cat Ex)2021 March 17
Priest River (City of) Drinking Water Improvements ProjectCity of Priest RiverCategorical Exclusion (Cat Ex)2021 March 18
Moon Lake Ranch Owner’s Association Wastewater Improvements ProjectMoon Lake Ranch Owner’s AssociationCategorical Exclusion (Cat Ex)2021 February 18
Ammon (City of) Drinking Water ImprovementsCity of AmmonCategorical Exclusion (Cat Ex)2020 February 13
Juliaetta (City of) Wastewater Improvements ProjectCity of JuliaettaCategorical Exclusion (Cat Ex)2021 February 06
Athol (City of) Drinking Water Improvements ProjectCity of AtholCategorical Exclusion (Cat Ex)2019 May 29
Bayview Water and Sewer District Drinking Water Improvements ProjectBayview Water and Sewer DistrictFinding of No Significant Impact (FONSI)2020 August 25
Cabinet Mountains Drinking Water Improvements ProjectCabinet Mountains Water DistrictFinding of No Significant Impact (FONSI) Concurrence2020 October 15
Castle Mountain Creeks Homeowners Association Drinking Water Improvements ProjectCastle Mountain Creeks Homeowners AssociationCategorical Exclusion (Cat Ex)2019 May 03
Deary (City of) Drinking Water Improvements ProjectCity of DearyCategorical Exclusion (Cat Ex)2019 February 06
Garden Valley Ranchettes Drinking Water Facility Improvements ProjectGarden Valley RanchettesCategorical Exclusion (Cat Ex)2019 January 18
Genesee (City of) Wastewater System Improvements ProcessCity of GeneseeFinding of No Significant Impact (FONSI)2020 April 16
Hayden Area Regional Sewer Board Wastewater ImprovementsHayden Area Regional Sewer BoardFinding of No Significant Impact (FONSI)2019 January 18
Hayden Lake Irrigation District Drinking Water Improvements ProjectHayden Lake Irrigation DistrictFinding of No Significant Impact
(FONSI)
2019 October 28
Heyburn (City of) Wastewater Treatment System and Collection System Improvement ProjectCity of HeyburnCategorical Exclusion (Cat Ex)2019 May 13
Idaho City Drinking Water ImprovementsCity of Idaho CityCategorical Exclusion (Cat Ex)2019 July 31
Lewiston (City of) Drinking Water ImprovementsCity of LewistonFinding of No Significant Impact (FONSI)2020 June 01
Lewiston (City of) Wastewater Improvements ProjectCity of LewistonCategorical Exclusion (Cat Ex)2019 January 07
Moyie Springs (City of) Wastewater Improvements ProjectCity of Moyie SpringsFinding of No Significant Impact (FONSI)2020 October 18
Mullan (City of) Wastewater Improvements ProjectCity of MullanCategorical Exclusion (Cat Ex)2019 April 15
Murray Water Association 2020 Drinking Water ImprovementsMurray Water AssociationCategorical Exclusion (Cat Ex)2020 April 03
Nampa (City of) Wastewater Treatment ImprovementsCity of NampaReaffirmation of Categorical Exclusion (Cat Ex)2020 October 08
Preston (City of) Wastewater Improvement ProjectCity of PrestonFinding of No Significant Impact (FONSI)2020 September 03
Rigby (City of) Drinking Water Improvements ProjectCity of RigbyCategorical Exclusion (Cat Ex)2019 October 11
Rigby (City of) Wastewater Systems Improvements ProjectCity of RigbyFinding of No Significant Impact (FONSI)2020 May 21
Sandpiper Shores Master Utility Wastewater Improvements ProjectSandpiper Shores Master Utility Inc.Reaffirmation
Categorical Exclusion (Cat Ex)
2020 January 14
South Park Water and Sewer Wastewater ImprovementsSouth Park Water and SewerCategorical Exclusion (Cat Ex)2019 August 28
Spirit Lake (City of) Drinking Water Improvements ProjectCity of Spirit LakeFinding of No Significant Impact (FONSI)2019 August 02
St. Maries (City of) Drinking Water Improvements ProjectCity of St. MariesCategorical Exclusion (Cat Ex)2019 May 29
Sunnyside Water Association Drinking Water Improvements ProjectSunnyside Water AssociationCategorical Exclusion (Cat Ex)2019 December 24
Wilderness Ranch Owners Association Drinking Water Improvement ProjectWilderness Ranch Owners AssociationCategorical Exclusion (Cat Ex)2019 November 08
Panhandle Village Drinking Water Improvements ProjectPanhandle VillageCategorical Exclusion (Cat Ex)2021 April 12
Genesee (City of) Drinking Water Improvements ProjectCity of GeneseeCategorical Exclusion (Cat Ex) Concurrence2021 March 23
Lewiston (City of) Drinking Water Improvements ProjectCity of LewistonFinding of No Significant Impact (FONSI) Reaffirmation2021 April 10
Remington Recreational Water and Sewer District Drinking Water Improvements ProjectRemington Recreational Water and Sewer DistrictCategorical Exclusion (Cat Ex)2021 April 05

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Grants and Loans Supervisor

Charlie Parkins
Charlie.Parkins@deq.idaho.gov
(208) 373-0577

Primary Environmental Review Contacts:

Grants and Loans Analyst

LaDonn Kaylor
LaDonn.Kaylor@deq.idaho.gov
(208) 373-0556

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