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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 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 NameApplicant NameEnvironmental DeterminationIssuance Date
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)2020 October 15
Castle Mountain Creeks Homeowners Association Drinking Water Improvements ProjectCastle Mountain Creeks Homeowners AssociationCategorical Exclusion (Cat Ex)2019 May 03
Council (City of) Wastewater Improvements ProjectCity of CouncilFinding of No Significant Impact (FONSI)2018 September 18
Crouch (City of) Drinking Water ImprovementsCity of CrouchCategorical Exclusion (Cat Ex)2018 November 13
Culdesac (City of) Wastewater Improvement ProjectCity of CuldesacCategorical Exclusion (Cat Ex)2018 August 01
Deary (City of) Drinking Water Improvements ProjectCity of DearyCategorical Exclusion (Cat Ex)2019 February 06
Donnelly Water Systems ImprovementsCity of DonnellyCategorical Exclusion (Cat Ex)2017 August 14
Franklin (City of) Drinking Water Improvement ProjectCity of FranklinCategorical Exclusion (Cat Ex)2018 December 05
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
Gooding (City of) Drinking Water ImprovementsCity of GoodingFinding of No Significant Impact (FONSI)2016 September 21
Gooding (City of) Wastewater System ImprovementsCity of GoodingCategorical Exclusion (Cat Ex)2017 August 01
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
Heyburn (City of) Water System ImprovementsCity of HeyburnFinding of No Significant Impact (FONSI)2017 December 07
Idaho City Drinking Water ImprovementsCity of Idaho CityCategorical Exclusion (Cat Ex)2019 July 31
Idaho City Wastewater Facility ImprovementsCity of Idaho CityCategorical Exclusion (Cat Ex)2017 August 02
Iona Water System Improvements ProjectCity of IoanFinding of No Significant Impact (FONSI)2018 July 24
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
Malad (City of) Wastewater ImprovementsCity of MaladFinding of No Significant Impact (FONSI)2018 July 25
Mores Creek Rim Ranches Water District Drinking Water System Improvements ProjectMores Creek Rim Ranches Water DistrictFinding of No Significant Impact (FONSI)2018 Sepetember 17
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
New Meadows (City of) Drinking Water ImprovementsCity of New MeadowsCategorical Exclusion (Cat Ex)2018 May 10
Preston (City of) Drinking Water Improvement ProjectCity of PrestonCategorical Exclusion (Cat Ex)2017 November 16
Preston (City of) Wastewater Improvement ProjectCity of PrestonFinding of No Significant Impact (FONSI)2020 September 03
Rapid River Water and Sewer District Water System Improvements ProjectRapid River Water and Sewer DistrictCategorical Exclusion (Cat Ex)2017 October 03
Rexburg (City of) Drinking Water Improvements ProjectCity of RexburgFinding of No Significant Impact (FONSI)2018 February 12
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
Rogerson Water District Drinking Water ProjectRogerson Water DistrictCategorical Exclusion (Cat Ex)2018 August 16
Sandpiper Shores Master Utility Wastewater Improvements ProjectSandpiper Shores Master Utility Inc.Reaffirmation
Categorical Exclusion (Cat Ex)
2020 January 14
Snake River School District Wastewater System Improvements ProjectSnake River School DistrictCategorical Exclusion (Cat Ex)2018 July 18
Southside Water and Sewer District Water System ImprovementsSouthside Water and Sewer DistrictCategorical Exclusion (Cat Ex)2017 August 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
Star Sewer and Water District Wastewater ImprovementsStar Sewer and Water DistrictFinding of No Significant Impact (FONSI)2017 December 14
Stites (City of) Water System Improvements ProjectCity of StitesCategorical Exclusion (Cat Ex)2018 June 08
Stites (City of) Wastewater Improvement ProjectCity of StitesCategorical Exclusion (Cat Ex)2018 January 17
St. Maries (City of) Drinking Water Improvements ProjectCity of St. MariesCategorical Exclusion (Cat Ex)2019 May 29
Sugar City (City of) Water System Improvements ProjectCity of Sugar CityFinding of No Significant Impact (FONSI)2017 October 10
Sunnyside Water Association Drinking Water Improvements ProjectSunnyside Water AssociationCategorical Exclusion (Cat Ex)2019 December 24
Troy (City of) Drinking Water Improvements ProjectCity of TroyCategorical Exclusion (Cat Ex)2018 May 30
Wayside Estates Water System ImprovementsWayside EstatesCategorical Exclusion (Cat Ex)2018 September 14
Wilderness Ranch Owners Association Drinking Water Improvement ProjectWilderness Ranch Owners AssociationCategorical Exclusion (Cat Ex)2019 November 08
Willowbrook Estates Drinking Water ImprovementsWillowbrook Estates Homeowners AssociationCategorical Exclusion (Cat Ex)2018 October 16
Panhandle Village Drinking Water Improvements ProjectPanhandle VillageCategorical Exclusion (Cat Ex)2021 April 12
City of Gooding Wastewater System ImprovementsCity of GoodingCategorical Exclusion (Cat Ex) Reaffirmation2021 March 31
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 Coordinator

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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