Clean Water State Revolving Loan Fund (CWSRF)

The Nebraska Clean Water State Revolving Loan Fund (CWSRF) is a financial assistance program managed by the Nebraska Department of Water, Energy, and Environment (DWEE) to support municipalities in developing and improving wastewater treatment facilities and sanitary sewer collection systems. This initiative is designed to help alleviate public health and environmental concerns arising from outdated or insufficient wastewater infrastructure. Through the provision of low-interest loans and, for qualifying small communities, matching grants, the program promotes sustainable water quality management practices across Nebraska. The interest earnings generated by the fund are used both to repay state match bond issues and to issue new loans, creating a revolving source of capital for continued community investment. The DWEE works in conjunction with the Nebraska Investment Finance Authority (NIFA) under the CWSRF Assistance Act. NIFA issues revenue bonds that are used to provide loan funds to eligible municipalities. The program’s interest rates and specific loan terms are defined annually in the CWSRF’s Intended Use Plan. Since its inception, the program has provided financial support to over 180 communities throughout Nebraska, highlighting its broad reach and significant impact on local infrastructure development. To be eligible for CWSRF loans, municipalities must meet specific criteria. Projects must qualify under the CWSRF program and be included on the annual priority list within the Intended Use Plan. An engineer's report must be developed by a registered professional engineer, and a loan contract must be signed, which includes pledging a revenue source for loan repayment. The loan term may not exceed 20 years, and interest is charged at a rate determined by the community's qualification under the current interest rate structure. Communities are encouraged to explore funding from various sources, including federal and state grants, to supplement CWSRF loans. This combined funding approach can enhance affordability and increase the feasibility of projects. The DWEE emphasizes the importance of community engagement and planning, recommending that local leaders communicate the need and benefits of wastewater system improvements to residents. A user fee system should also be implemented to ensure long-term financial sustainability of the infrastructure. The first step in the application process is contacting the DWEE State Revolving Fund Section at (402) 471-4200 for guidance on planning and financing. All publicly owned applicants are encouraged to submit a joint Water/Wastewater pre-application for state or federal funding assistance. The application process begins with completing the biennial Combined Clean Water and Drinking Water SRF Needs Survey, usually mailed in the fall and due by January 15th. This survey informs the development of the Intended Use Plan. Following that, applicants must hire a professional engineer, produce a detailed engineering report, identify alternative funding sources, and secure local support for the proposed improvements. For technical assistance or program inquiries, contact the DWEE Financial Assistance Section at (402) 471-4200 or via email at ndee.srf@nebraska.gov. Additional support is available from the Nebraska Department of Economic Development, USDA Rural Development, and the EPA Region VII Small Community Outreach Coordinators. Physical correspondence may be directed to NDEE Goodlife, 245 Fallbrook Blvd., Suite 100, Lincoln, NE 68521.