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Construction Loans

DEQ’s State Revolving Loan Funds (SRF) provide below-market-rate interest loans to help repair or build new drinking water or wastewater facilities and/or non-point source projects. Loans of up to 100% of project costs may be awarded for project design and/or construction.

There are four sources for the SRF program:

  • These sources include Congressional appropriations to the US Environmental Protection Agency (EPA) and then allocated to the states based upon set formulas. Each state is required to provide a 20% match.
  • State match, which comes from the Water Pollution Control Account and from loan fees.
  • Loan repayments.
  • Interest earnings.

The Legislative Services Office and EPA perform annual audits on the SRF program to ensure monies are being used appropriately and meeting EPA grant requirements.

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For drinking water, community water systems, and nonprofit, noncommunity water systems are eligible for 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. Noncommunity water systems regularly serve at least 25 of the same persons over 60 days of the year.

For wastewater, counties, cities, special service districts, governmental entities, and nonprofit corporations with authority to collect, treat, or dispose of sewage or industrial wastewater are eligible for the Wastewater State Revolving Loan Program.

For non-point source, counties, cities, special service districts, governmental entities, and nonprofit corporations are eligible for the Wastewater State Revolving Loan Program.

DEQ queries eligible systems annually to obtain information on projects eligible for loans. Interested systems must submit a letter of interest (LOI) between October and January for the following fiscal year. 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.

Fundable projects on the priority list are placed on the intended use plan (IUP), which outlines the purpose and goals of the state’s drinking water and wastewater loan programs, explains how projects are selected for funding, and identifies priority projects eligible for state assistance. The terms of the loans for the fiscal year are also included in the IUP. The fiscal year (FY) IUP gets reviewed and adopted by the Board of Environmental Quality annually in May.

Once DEQ receives funding from the US Environmental Protection Agency (EPA) and the state match is provided, applicants with projects on the IUP are invited to apply for a loan. 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 can be found in the DEQ DWSRF and the CWSRF Loan Handbooks. The handbooks also reference state statues that guide the SRF program.

American Iron & Steel All iron and steel products used in a project funded by the SRF program shall be produced in the United States, except those iron and steel products for which a waiver has been issued. This requires that all manufacturing processes, including the application of a coating, must take place in the United States. For additional information and definitions on the American Iron & Steel requirement, please refer to the SRF Loan Handbooks. Davis Bacon Wages Davis Bacon prevailing wage requirements apply to all construction, alterations, and repair of treatment works carried out in whole or in part with assistance made available by the SRF loan. For additional information, requirements, and definitions on Davis Bacon prevailing wage requirements, please refer to the SRF Loan Handbooks. Green Project Reserve (GPR) As a condition to receiving federal funds for wastewater infrastructure improvement projects, federal law requires states to allocate not less than 10% of funds to projects that address green infrastructure, water conservation, energy efficiency improvements, or other environmentally innovative activities. DEQ has extended the GPR effort to drinking water loans to encourage long-term system affordability. GPR may be used for planning, design, and building activities. Projects clearly eligible for GPR are known as categorically eligible projects. Projects not found to be categorically eligible must have a business case providing a well-documented justification for the project to be considered a GPR project. Examples include installing new water meters in previously unmetered systems and purchasing leak detection equipment. Examples of wastewater infrastructure projects include maintaining, restoring, or mimicking natural systems to infiltrate, evapotranspirate, or recycle stormwater and economically managing water resources to prevent or remove pollution.  GPR is only required of those systems that commit to undertaking such efforts by claiming such points on their Letter of Interest submission. State Environmental Review Process (SERP) All SRF projects are required to 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.  For additional information and SERP process, please refer to Chapter 5 of the SRF Loan Handbooks.
Project Name Applicant Name Environmental Determination Issuance Date
Coeur d’Alene (City of) Wastewater Improvement Project City of Coeur d’Alene Finding of No Significant Impact (FONSI) Reaffirmation 2022 February 1
Clark Fork (City of) Drinking Water Improvement Project City Clark Fork Categorical Exclusion (Cat Ex) 2022 January 4
Nezperce (City of) Wastewater Improvement Project City of Nezperce Concurrence of Finding of No Significant Impact (FONSI) 2021 December 16
Craigmont (City of) Wastewater Improvement Project City of Craigmont Categorical Exclusion (Cat Ex) 2021 November 25
Grace (City of) Wastewater Improvement Project City of Grace Categorical Exclusion (Cat Ex) 2021 December 9
Garfield Bay Water & Sewer District Wastewater Improvement Project Garfield Bay Water & Sewer District Categorical Exclusion (Cat Ex) 2021 December 8
Laclede Water District Drinking Water Improvement Project Laclede Water District Finding of No Significant Impact (FONSI) 2021 November 8
Kidd Island Bay Lots Sewer District Wastewater Improvement Project Kidd Island Bay Lots Sewer District Categorical Exclusion (Cat Ex) 2021 October 19
Winchester (City of) Wastewater Improvement Project City of Winchester Categorical Exclusion (Cat Ex) 2021 August 5
Grand View (City of) Drinking Water Improvement Project City of Grand View Categorical Exclusion (Cat Ex) 2021 August 4
Syringa Heights Water District Drinking Water Improvement Project Syringa Heights Water District Categorical Exclusion (Cat Ex) 2021 July 29
Homedale(City of) Wastewater Improvements Project City of Homedale Concurrence of Finding of No Significant Impact (FONSI) 2021 July 28
Gooding (City of) Wastewater Improvements Project City of Gooding Categorical Exclusion (Cat Ex) Reaffirmation 2021 March 24
Dayton (City of) Drinking Water Improvements Project City of Dayton Categorical Exclusion (Cat Ex) 2021 June 30
Aberdeen(City of) Wastewater Improvements Project City of Aberdeen Finding of No Significant Impact (FONSI) 2021 June 28
McCammon (City of) Drinking Water Improvements Project City of McCammon Categorical Exclusion (Cat Ex) 2021 April 21
Reubens (City of) Drinking Water Improvements Project City of Reubens Categorical Exclusion (Cat Ex) 2021 May 10
Elk River (City of) Wastewater Improvements Project City of Elk River Categorical Exclusion (Cat Ex) 2021 March 17
Priest River (City of) Drinking Water Improvements Project City of Priest River Categorical Exclusion (Cat Ex) 2021 March 18
Moon Lake Ranch Owner’s Association Wastewater Improvements Project Moon Lake Ranch Owner’s Association Categorical Exclusion (Cat Ex) 2021 February 18
Ammon (City of) Drinking Water Improvements City of Ammon Categorical Exclusion (Cat Ex) 2020 February 13
Juliaetta (City of) Wastewater Improvements Project City of Juliaetta Categorical Exclusion (Cat Ex) 2021 February 06
Athol (City of) Drinking Water Improvements Project City of Athol Categorical Exclusion (Cat Ex) 2019 May 29
Bayview Water and Sewer District Drinking Water Improvements Project Bayview Water and Sewer District Finding of No Significant Impact (FONSI) 2020 August 25
Cabinet Mountains Drinking Water Improvements Project Cabinet Mountains Water District Finding of No Significant Impact (FONSI) 2020 October 15
Castle Mountain Creeks Homeowners Association Drinking Water Improvements Project Castle Mountain Creeks Homeowners Association Categorical Exclusion (Cat Ex) 2019 May 03
Council (City of) Wastewater Improvements Project City of Council Finding of No Significant Impact (FONSI) 2018 September 18
Crouch (City of) Drinking Water Improvements City of Crouch Categorical Exclusion (Cat Ex) 2018 November 13
Culdesac (City of) Wastewater Improvement Project City of Culdesac Categorical Exclusion (Cat Ex) 2018 August 01
Deary (City of) Drinking Water Improvements Project City of Deary Categorical Exclusion (Cat Ex) 2019 February 06
Donnelly Water Systems Improvements City of Donnelly Categorical Exclusion (Cat Ex) 2017 August 14
Franklin (City of) Drinking Water Improvement Project City of Franklin Categorical Exclusion (Cat Ex) 2018 December 05
Garden Valley Ranchettes Drinking Water Facility Improvements Project Garden Valley Ranchettes Categorical Exclusion (Cat Ex) 2019 January 18
Genesee (City of) Wastewater System Improvements Process City of Genesee Finding of No Significant Impact (FONSI) 2020 April 16
Gooding (City of) Drinking Water Improvements City of Gooding Finding of No Significant Impact (FONSI) 2016 September 21
Gooding (City of) Wastewater System Improvements City of Gooding Categorical Exclusion (Cat Ex) 2017 August 01
Hayden Area Regional Sewer Board Wastewater Improvements Hayden Area Regional Sewer Board Finding of No Significant Impact (FONSI) 2019 January 18
Hayden Lake Irrigation District Drinking Water Improvements Project Hayden Lake Irrigation District Finding of No Significant Impact (FONSI) 2019 October 28
Heyburn (City of) Wastewater Treatment System and Collection System Improvement Project City of Heyburn Categorical Exclusion (Cat Ex) 2019 May 13
Heyburn (City of) Water System Improvements City of Heyburn Finding of No Significant Impact (FONSI) 2017 December 07
Idaho City Drinking Water Improvements City of Idaho City Categorical Exclusion (Cat Ex) 2019 July 31
Idaho City Wastewater Facility Improvements City of Idaho City Categorical Exclusion (Cat Ex) 2017 August 02
Iona Water System Improvements Project City of Ioan Finding of No Significant Impact (FONSI) 2018 July 24
Lewiston (City of) Drinking Water Improvements City of Lewiston Finding of No Significant Impact (FONSI) 2020 June 01
Lewiston (City of) Wastewater Improvements Project City of Lewiston Categorical Exclusion (Cat Ex) 2019 January 07
Malad (City of) Wastewater Improvements City of Malad Finding of No Significant Impact (FONSI) 2018 July 25
Mores Creek Rim Ranches Water District Drinking Water System Improvements Project Mores Creek Rim Ranches Water District Finding of No Significant Impact (FONSI) 2018 Sepetember 17
Moyie Springs (City of) Wastewater Improvements Project City of Moyie Springs Finding of No Significant Impact (FONSI) 2020 October 18
Mullan (City of) Wastewater Improvements Project City of Mullan Categorical Exclusion (Cat Ex) 2019 April 15
Murray Water Association 2020 Drinking Water Improvements Murray Water Association Categorical Exclusion (Cat Ex) 2020 April 03
Nampa (City of) Wastewater Treatment Improvements City of Nampa Reaffirmation of Categorical Exclusion (Cat Ex) 2020 October 08
New Meadows (City of) Drinking Water Improvements City of New Meadows Categorical Exclusion (Cat Ex) 2018 May 10
Preston (City of) Drinking Water Improvement Project City of Preston Categorical Exclusion (Cat Ex) 2017 November 16
Preston (City of) Wastewater Improvement Project City of Preston Finding of No Significant Impact (FONSI) 2020 September 03
Rapid River Water and Sewer District Water System Improvements Project Rapid River Water and Sewer District Categorical Exclusion (Cat Ex) 2017 October 03
Rexburg (City of) Drinking Water Improvements Project City of Rexburg Finding of No Significant Impact (FONSI) 2018 February 12
Rigby (City of) Drinking Water Improvements Project City of Rigby Categorical Exclusion (Cat Ex) 2019 October 11
Rigby (City of) Wastewater Systems Improvements Project City of Rigby Finding of No Significant Impact (FONSI) 2020 May 21
Rogerson Water District Drinking Water Project Rogerson Water District Categorical Exclusion (Cat Ex) 2018 August 16
Sandpiper Shores Master Utility Wastewater Improvements Project Sandpiper Shores Master Utility Inc. Reaffirmation Categorical Exclusion (Cat Ex) 2020 January 14
Snake River School District Wastewater System Improvements Project Snake River School District Categorical Exclusion (Cat Ex) 2018 July 18
Southside Water and Sewer District Water System Improvements Southside Water and Sewer District Categorical Exclusion (Cat Ex) 2017 August 14
South Park Water and Sewer Wastewater Improvements South Park Water and Sewer Categorical Exclusion (Cat Ex) 2019 August 28
Spirit Lake (City of) Drinking Water Improvements Project City of Spirit Lake Finding of No Significant Impact (FONSI) 2019 August 02
Star Sewer and Water District Wastewater Improvements Star Sewer and Water District Finding of No Significant Impact (FONSI) 2017 December 14
Stites (City of) Water System Improvements Project City of Stites Categorical Exclusion (Cat Ex) 2018 June 08
Stites (City of) Wastewater Improvement Project City of Stites Categorical Exclusion (Cat Ex) 2018 January 17
St. Maries (City of) Drinking Water Improvements Project City of St. Maries Categorical Exclusion (Cat Ex) 2019 May 29
Sugar City (City of) Water System Improvements Project City of Sugar City Finding of No Significant Impact (FONSI) 2017 October 10
Sunnyside Water Association Drinking Water Improvements Project Sunnyside Water Association Categorical Exclusion (Cat Ex) 2019 December 24
Troy (City of) Drinking Water Improvements Project City of Troy Categorical Exclusion (Cat Ex) 2018 May 30
Wayside Estates Water System Improvements Wayside Estates Categorical Exclusion (Cat Ex) 2018 September 14
Wilderness Ranch Owners Association Drinking Water Improvement Project Wilderness Ranch Owners Association Categorical Exclusion (Cat Ex) 2019 November 08
Willowbrook Estates Drinking Water Improvements Willowbrook Estates Homeowners Association Categorical Exclusion (Cat Ex) 2018 October 16
Panhandle Village Drinking Water Improvements Project Panhandle Village Categorical Exclusion (Cat Ex) 2021 April 12
Genesee (City of) Drinking Water Improvements Project City of Genesee Categorical Exclusion (Cat Ex) Concurrence 2021 March 23
Lewiston (City of) Drinking Water Improvements Project City of Lewiston Finding of No Significant Impact (FONSI) Reaffirmation 2021 April 10
Remington Recreational Water and Sewer District Drinking Water Improvements Project Remington Recreational Water and Sewer District Categorical 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

Grants and Loans Analyst

Bonnie Ricord
Bonnie.Ricord@deq.idaho.gov
(208) 373-0439

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