The Michigan Department of Environment, Great Lakes, and Energy (EGLE) has designed this guidance to explain the Drinking Water State Revolving Fund (DWSRF) program scoring criteria. This guidance helps with completion of the soon to be released SRF Project Scoring Form and clarifies the eligible activities that can receive points under the scoring categories.
DWSRF applicants must complete the DWSRF Scoring Form and submit it with their DWSRF Project Planning Document (PPD). Applicants must identify which specific categories their project qualifies for on the worksheet and include supporting documentation within the PPD. The more justification that is included in the PPD and worksheet to support the awarded points, the more likely the points will be awarded.
When completing the scoring form, points must only be associated with the work proposed to be financed in the current fiscal year. EGLE staff will review the completed form and make the final decision on points awarded for the project. Applicants will be made aware of EGLE’s scoring decision when the draft project scoring list is released. The project specific detailed scores will be sent to applicants, who will have an opportunity to review their scores with EGLE staff before scores are finalized and published on the project priority list (PPL). Project scores will be reevaluated if the scope changes at any point during that fiscal year.
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This guidance was last updated on: 02/04/2026.
Projects that address any open court or enforcement order against a water supply are awarded 10 points. This includes a formal Administrative Consent Order, Administrative Compliance Agreement, or a department order to correct deficiencies with the drinking water supply and achieve compliance with the Michigan Safe Drinking Water Act, 1976 PA 399, as amended. The final enforcement order must be issued by EGLE to the water supply by the due date of the final DWSRF PPD.
Projects that address any deficiencies that were identified in the most recently completed sanitary survey and recommended by EGLE’s Drinking Water and Environmental Health Division (DWEHD) are awarded 5 points. The PPD should identify the deficiency and how the proposed project will address the recommendations made by EGLE. A copy of the relevant sections from the sanitary survey must be included with the PPD
Projects that undertake lead service line replacements (LSLRs) in any capacity are awarded points based on the number of LSLRs proposed for the project compared to data from the Current Distribution System Materials Inventory (CDSMI). The CDSMI data that will be used is the most recent published version from DWEHD as of the PPD submittal date for that year. DWSRF applicants must state the number of LSLRs planned for replacement in the PPD and on the scoring worksheet. Up to 15 points will be awarded to projects that include LSLRs. Points are awarded to projects based on either the LSLR percentage or number of proposed LSLRs when there are 500 or more proposed replacements, whichever results in a greater point amount. LSLRs must be completed within three years of loan issuance.
The LSLR percentage is calculated by dividing the total number of service line replacements listed in the PPD by the total number of lead, galvanized previously connected to lead (GPCL), and unknown service lines as reported in the CDSMI.
For systems with large quantities of lead services, if the number of LSLRs planned for replacement exceeds 500 replacements, the number of proposed replacements listed in the PPD will be used to award points. Points are awarded based on the defined quantities as outlined on the scoring worksheet. This will only be used when the points awarded for the number of replacements are greater than the points awarded for the LSLR percentage.
PPDs that include general statements about replacing known lead or GPCL service lines if encountered and/or do not include a total number of proposed LSLRs will not receive these points. Additionally, points will not be awarded to projects that are only completing service line verifications. Projects must be undertaking LSLRs.
Projects that address current and ongoing documented acute maximum contaminant level (MCL) or treatment techniques (TTs) violations are awarded 15 points. Acute MCLs or TTs include nitrate, E-Coli, surface water treatment rules, etc.
This includes acute violations as outlined on the U.S. Environmental Protection Agency (EPA) National Primary Drinking Water Regulations.
Projects that address current and ongoing non-acute MCLs, health advisory levels (HALs), or TTs violations are awarded 5 points. Non-acute MCLs, HALs, or TTs include arsenic, per- and polyfluoroalkyl substances (PFAS), volatile organic compounds, lead and copper action level exceedances, radium, manganese, etc.
This includes non-acute violations of U.S. EPA National Primary Drinking Water Regulations or Michigan Safe Drinking Water Act standards.
If the water supply and associated consecutive systems have had no health-based violations (MCLs and TT violations) in the past five years, the project is awarded 3 points. These points cannot be awarded if points are awarded in either acute (B) or non-acute (C) violations.
Up to 7 points may be awarded to a project that extends water service to an area with documented private well contamination. The PPD must include details on the water quality issues present in the private wells. To receive 5 points, documentation must be provided to demonstrate that a minimum of five homes will be connected to the PWS. An additional 2 points are awarded if the applicant has a mandatory connection requirement, such as a local ordinance. To receive the connection requirement points, a copy of the requirement must be included in the PPD. PWS extensions must comply with the minimum connection requirement outlined in the Waterworks System Expansion section from the DWSRF Eligibility Guidance.
Points are awarded to projects that promote consolidation and merge two or more public water systems (PWS) together into one system. Consolidation or tie-in projects are awarded points for each PWS that will be connected to the applicant’s supply. 5 points will be awarded for each PWS (up to 10 points maximum).
The project must eliminate a regulated PWS through consolidation, such as:
Points will not be awarded to projects where two or more water systems become interconnected and provide water supplies to one another but retain their WSSNs. Consolidation or tie-in must eliminate a regulated PWS and the associated WSSN. Regionalization efforts or projects to support technical, managerial, and financial capacity are not eligible for these points, unless the project is for eligible consolidation as discussed above. Points also will not be awarded to applicants considered regional suppliers and are not consolidating PWSs as part of the project. These points are awarded to the proposed project, not the applicant’s regionalization efforts to date.
Points are awarded to projects that include new infrastructure upgrades or improvements that provide a benefit to water quality. 5 points are awarded to projects that may include:
Projects must address public health or aesthetic water quality issues to receive these points. Points will not be awarded to projects for in-kind replacements of treatment processes or for restoring treatment back to its original functionality.
Projects that are considered construction ready by the final DWSRF PPD submittal deadline are awarded 5 points. Construction ready projects are those projects that have completed design prior to final PPD submittal, and the applicant has submitted an Act 399 construction permit application. The project does not need to have an issued construction permit, but the application should be considered complete and adequate for review. Projects must also proceed with a loan closing in Quarter 3 or earlier. If an applicant cannot achieve a Quarter 3 loan closing or earlier, these points may be deducted from their overall score, which may result in the project no longer being in the fundable range on the PPL.
For projects that do not require a construction permit (e.g., LSLR projects), all required documentation, such as design, agreements and/or approvals, that are necessary to implement the scope of work should be completed by the final PPD submittal deadline and proceed with a loan closing in Quarter 3 or earlier.
A geographically overlapping project integrates multiple previously planned projects in the same area occurring at the same time. Points are awarded to projects that coordinate improvements to other assets and infrastructure that would be considered DWSRF ineligible or non-participating work.
Examples of projects include opening the road once to update more than just drinking water utility infrastructure, road reconstruction beyond DWSRF eligible scope, etc. A letter from the municipality or other agency committing to the other utilities in the dig once projects and a map with the overlapping locations of all projects must be included in the final PPD to receive the 5 points. Points will not be awarded to projects that include incidental work such as meeting minimum separation requirements or replacement/repair of utilities directly impacted by DWSRF construction.
Points are awarded to applicants that embrace a true asset management approach. To receive points, the project must be included in a current asset management (AM) plan and the municipality must have a staff person participating in or who has successfully completed the Michigan Infrastructure Council’s AM Champions Program or similar AM training program. If a staff member is currently completing the program, the applicant must demonstrate their staff has been accepted as a cohort for the current year’s program by the final PPD submittal deadline. If a staff member has already completed the program, a Certificate of Completion must be submitted with the final PPD. If both requirements are met and documentation is included in the final PPD, the applicant will receive 5 points.
Points will not be awarded to applicants who only have an AM plan and do not have a staff member participating in or who has completed the AM Champions or other similar AM training program. Points will only be awarded when both requirements are met.
If an applicant does not currently have an AM plan, has never received DWSRF financing for AM activities and an AM plan is being developed for the first time as part of this project, the applicant will receive 5 points.
If an applicant has not received DWSRF financing in the last 5 fiscal years, they are awarded 3 points. This includes applicants that have applied for funding in previous years but were not in the fundable range. Points will not be awarded to applicants that previously declined funding within the last 5 fiscal years. An applicant is awarded points if they have received CWSRF financing, but not DWSRF financing within the last 5 fiscal years.
Applicants that have implemented water conservation efforts are awarded 5 points. Water conservation includes any beneficial reduction in water loss, waste, or use. Conservation efforts may include, but are not limited to, ordinances that restrict water use during high demand periods/seasons, have structured conservation pricing for seasonal usage, and/or promote other water efficiency and conservation practices. Water efficiency includes water loss reduction and prevention measures, installing water meters to previously unmetered areas, and/or adding leak detection equipment to existing meters. Applicants must submit supporting documentation that shows existing water conservation efforts or demonstrate that the proposed project will implement/create these efforts.
Projects that include resiliency and/or DWSRF eligible security measures are awarded 7 points. These measures should be taken at the physical location of the water treatment plant or within the distribution system to prevent, deter, and/or readily respond to climate related changes, theft, trespassing, vandalism, or attacks. The purchase and storage of spare parts is not considered a resiliency improvement and is not DWSRF eligible.
Resiliency improvements include, but are not limited to
DWSRF eligible security measures include the addition of new facility lighting, perimeter fencing, security cameras, secured storage for chemicals or fuel, and other measures as listed in the Waterworks System Security Measures section of the DWSRF Eligibility Guidance. Replacement of existing physical security measures does not qualify for these points. Security measures also include cyber security actions to protect against the unauthorized use of systems, networks, devices, and programs used by the water system.
This category is awarded based on the applicant’s Overburdened and Significantly Overburdened Determination Survey submitted to EGLE. A new determination and survey submittal is required for each fiscal year. Determination, review data, and required forms are on the State Revolving Fund Affordability Criteria webpage. An Overburdened system is awarded 20 points, while a Significantly Overburdened system is awarded 25 points.
If two or more projects have the same score based on the above criteria, the following tiebreaker will be used:
The system with the lower median annual household income will be ranked ahead of the system with the higher median annual household income.
For systems that serve more than one municipal entity, the blended median annual household income (MAHI) calculated during the submission of the overburdened survey will be used as the tiebreaker. All applicants must submit the Overburdened and Significantly Overburdened Determination Survey on the State Revolving Fund Affordability Criteria webpage to calculate the MAHI that will be used.
