Construction Loans

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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.

• Davis Bacon Conditions

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.

• Idaho projects with GPR components

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.