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Strategic Water Quality Initiatives Fund

Purpose: The Strategic Water Quality Initiatives Fund (SWQIF) provides low-interest loans for water pollution control projects involving the on-site upgrade or replacement of failing septic systems or for the removal of groundwater or storm water from sanitary or combined sewer leads on private property.

Goals of the Program: To assist municipalities in funding wastewater treatment improvements that cannot qualify for assistance from the CWSRF.  

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 Parts 52 and 53, Act 451 of the Public Acts of 1994, as amended, as well as Administrative Rules (R323.951- ­R323.965).  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:

  • A municipality submits an Intent to Apply form to the Water Infrastructure Financing Section (WIFS).
  • A municipality is ranked on the PPL.
  • The municipality submits a project plan to WIFS.
  • The municipality is included in the annual fundable range according to priority ranking.
  • 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 the 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 the Intent to Apply form is January 31. The deadline for submission of a project plan is August 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 of project construction.

Dollar Amount(s) Available (Min or Max): It is estimated $10-20 million in loan funds will be available annually.

Required Match: No local match is required.

Source(s) of Funds: The fund is capitalized with proceeds (10%) from the sale of Great Lakes Water Bonds, which were authorized by the passage of Proposal 2 in November 2002.

Authority: Parts 52 and 53, Act 451 of the Public Acts of 1994.

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 loan fund "revolves," lending capacity will remain even if new state capitalization ceases.

Related ProgramsClean Water State Revolving Fund.

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