Construction Loans

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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 public water systems as 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.

American Iron & Steel and Build America, Buy America – Provisions of P.L. 113-76, Consolidated Appropriations Act, 2014 and the Infrastructure Investment and Jobs Act, 2021 Pub L. No. 117-58 requires 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 projects below, please submit a public records request at: deq.idaho.gov/public-records-request/.