Drinking Water State Revolving Fund Loans

Purpose:  The Drinking Water State Revolving Fund provides low-interest loans to water suppliers to finance the construction (including upgrades/consolidation) of public drinking water systems.

Goals of the Program:  To assist water suppliers in providing safe/high quality drinking water.

Eligibility:  Any water supplier who owns and operates a community or non-community (if operated as a non-profit entity) water supply.

Criteria:  The requirements for this program are identified in Part 54, Act 451 of the Public Acts of 1994, as amended. Certain federal requirements may also apply and are spelled out in Title XIV of the Public Health Services Act (commonly referred to as the Safe Drinking Water Act). Primarily, applicants must present environmentally sound water supply projects which are drawn from a Project Priority List (PPL) administered by the Water Infrastructure Financing Section (WIFS).

Application Process:

  • The municipality submits an Intent to Apply form to WIFS.
  • The water supplier is ranked on the project priority list.
  • The water supplier submits a project plan to WIFS.
  • The water supplier is included in the annual fundable range according to priority ranking.
  • The water supplier submits plans and specifications for EGLE review.
  • The water supplier submits an application for assistance in accordance with the quarterly funding schedule.
  • The water supplier receives financial assistance upon satisfying program requirements through the application process.

Nominating Procedures:  After a project is ranked on the PPL, projects in the fundable range are notified.  A schedule is then developed that will lead to completion of the environmental review, submission of an application, award of an Order of Approval, and closure of the loan.

Deadlines:  The deadline for submission of an Intent to Apply form is January 31. The deadline for submission of a project plan to be included on the annual PPL is July 1.  The deadline for the application for financial assistance is negotiated for each project dependent upon which quarter they will receive a binding commitment.

Timelines:  The time period may run approximately six months to several years from the time the project plan is submitted to receipt of assistance. Much is dependent upon available funds and the timeline for project construction.

Dollar Amount(s) Available (Min or Max):  Dependent on federal grant amount. Estimated $100 million for next three fiscal years (through 2023).

Required Match:  No local match is required.

Source(s) of Funds:  The fund is capitalized with federal grant funds and a required 20% state match.

Authority:  Part 54, Act 451 of the Public Acts of 1994 and Title XIV of the Public Health Service Act (commonly referred to as the Safe Drinking Water Act).

Responsible Division/Office Contact:  Finance Division, Water Infrastructure Financing Section, Kelly Green, Administrator, 517-284-5433.

Phase-out/Expansion/Changes for Next Fiscal Year:  Since the fund "revolves" it is intended to operate in perpetuity.

Related Programs:   Clean Water State Revolving Fund.

Request for Proposals:  Municipalities can begin the application process at any time by submitting an Intent to Apply form.