State Revolving Fund

Purpose:  The State Revolving Fund (SRF) provides low-interest loans for water pollution control projects.

Goals of the Program:  To assist municipalities in funding wastewater treatment system improvements, storm water treatment projects, and nonpoint source pollution control projects.

Eligibility:  Any city, village, township, county, or related authority as defined in Section 5301(h) of Part 53, Act 451 of the Public Acts of 1994.

Criteria:  The requirements for this program are identified in Part 53, Act 451 of the Public Acts of 1994, as amended, as well as Administrative Rules (R323.951- ­R323.965). Certain federal requirements also apply and are spelled out in Title VI of the federal Clean Water Act (P.L. 92-500, as amended). Primarily, applicants must present environmentally sound, cost effective water pollution control projects which are drawn from Project Priority Lists (PPLs) administered by EGLE.

Application Process:

  • The municipality is first ranked on one of the PPLs by submitting a project plan to EGLE.
  • The municipality is included in the annual fundable range according to priority ranking and the level of fund lending capacity.
  • The municipality submits plans and specifications for EGLE review.
  • The municipality submits an application for assistance in accordance with the quarterly funding schedule.
  • The municipality receives financial assistance upon satisfying program requirements through the application process.

Nominating Procedures:  After submitting a project plan and the project is ranked on one of the PPLs, 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 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. From the time of actual application to receipt of assistance, the process may take as little as three months. Much is dependent upon available funds and the quality of municipal submissions.

Dollar Amount(s) Available (Min or Max):  Dependent on federal grant amount.

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, as well as proceeds from the sale of Great Lakes Water Quality Bonds as authorized by the passage of Proposal 2 in November of 2002.

Authority:  Part 53 and Part 197, Act 451 of the Public Acts of 1994 and P.L. 92‑500, as amended.

Responsible Division/Office Contact:  Finance Division, Water Infrastructure Financing Section, Karol Patton, Acting Supervisor, 517-284-5433.

Phase-out/Expansion/Changes for Next Fiscal Year:  Since the fund "revolves", it is intended to operate in perpetuity. Annual lending capacity will remain even if new federal/state capitalization ceases.

Related ProgramsStrategic Water Quality Initiatives Fund; Stormwater, Asset Management, and Wastewater Program; and the Drinking Water Revolving Fund.

Request for Proposals:  Municipalities can apply at any time by submitting a Project Plan.