ODW Revolving Fund Programs Announced

The Office of Drinking Water released information about some important loan and grant programs available this year along with Emergency Rule changes that went into effect on December 29, 2023. The application windows for the announced programs are either open immediately or within the next month. You can find the original release here.

Lead Service Line Loan — Intended for any LSL inventory or replacement projects.

  • Application cycle opened January 8, 2024.
  • Applications due by 11:59 p.m. PDT on March 29, 2024.

For more details, refer to the ODW release and the fall 2023 webinar on  DWSRF webpage, under the Lead Service Line Loan: Ongoing dropdown menu.

Consolidation Feasibility Study Grant Application Cycle — To support consolidation of small water systems into larger entities with greater technical, managerial, and financial capacity including consolidation of Group B and private well into a new or existing Group A water system.

  • Opens February 1, 2024.
  • Applications accepted year-round.

For more details, refer to the ODW release and the fall 2023 webinar on  DWSRF webpage, under the Consolidation Feasibility/Regionalization Grant: Ongoing dropdown menu.

Planning and Engineering Loan Application Changes (Previously Called the Preconstruction Loan) — Updates include funding up to $200,000 for limited water rights exploration. This allows a water system to drill a well that currently does not have water rights. Funding pays for drilling, pump test, and water quality testing. It does not pay for well development or connection to the water system.

  • Application window currently open.
  • Applications accepted year-round.

More information is available on the DWSRF webpage, under the Planning and Engineering dropdown menu.

Drinking Water Systems Rehabilitation and Consolidation Grant – Funding may be used for consolidation, restructuring, or receivership of a failing system or the rehabilitation of a struggling system. 

Consolidation, restructuring, and receivership projects are eligible for DWSRC funding if the water system being consolidated, restructured, or received under court order is a community Group A system serving fewer than 10,000 people, a Group B system serving residences, or several properties served by private wells. The consolidated, restructured, or received system must become a community Group A system at the end of the project.

Find guidance on how projects are selected, who are eligible applicants, and what information you must submit in Drinking Water System Rehabilitation and Consolidation Guidance 331-742.

Emergency Rule Changes — The emergency adoption allows forgiveness of a portion or all of the SRF loan amount, update the definition of a disadvantaged community, remove water system plan requirements for those systems that are seeking a loan to address LSL identification and replacement, and remove obsolete priority rating and ranking criteria to allow more water systems to qualify for loans in conformance.

  • Effective date December 29, 2023.
  • Expiration date April 26, 2024.

For any of these programs, refer to the ODW release for more details.