Drinking Water State Revolving Loan Fund (DWSRF)

The Nebraska Drinking Water State Revolving Loan Fund (DWSRF) is a state-administered funding program designed to help public water systems finance infrastructure improvements necessary to ensure safe drinking water. It is part of a broader national initiative authorized under the 1996 Amendments to the Federal Safe Drinking Water Act. The program is federally capitalized by the U.S. Environmental Protection Agency (EPA), which allocates grants to individual states. These states, in turn, manage their own DWSRF programs to provide financial support to eligible entities. In Nebraska, the program is operated by the Department of Water, Energy, and Environment (DWEE) in coordination with the Nebraska Investment Finance Authority (NIFA), which is authorized to issue revenue bonds to expand funding capacity. The core objective of the Nebraska DWSRF is to assist communities in meeting their drinking water infrastructure needs through the provision of low-interest loans and, in some cases, principal forgiveness. Funds may be used for a variety of purposes, including the planning, design, and construction of new or upgraded drinking water facilities. Eligible expenses include water treatment systems, transmission and distribution pipelines, and source water protection via land acquisition from willing sellers. Additional interest rate reductions are offered to economically disadvantaged communities or those choosing early repayment, as outlined in the annual Intended Use Plan, which also governs the program’s prioritization and loan interest rate structure. To access funding, communities must first ensure that their project appears on the Intended Use Plan priority list and that it meets eligibility criteria under the DWSRF program. Applicants must also complete a professionally prepared engineering report and undergo an environmental review and public hearing, unless exempted. Loan terms can be up to 20 years; however, economically disadvantaged communities may qualify for terms up to 30 years. The process is designed to be comprehensive, ensuring that only well-vetted projects with sustainable repayment mechanisms are supported. To begin the application process, communities are encouraged to contact DWSRF program staff at the DWEE, who will guide them through initial planning and financing strategies. Applicants must complete the biennial Combined Clean Water and Drinking Water SRF Needs Survey by December 31 of the relevant year to be considered for inclusion in the next Intended Use Plan. They must also submit a pre-application for state and/or federal assistance and retain a Nebraska-licensed professional engineer to develop their project plan. Importantly, community engagement and public support are emphasized, including communication of project benefits and implementation of user fees to cover long-term operational costs. Evaluation is based on factors like community need, project readiness, environmental compliance, and alignment with state infrastructure priorities. Though specific scoring criteria are not detailed, projects on the Intended Use Plan priority list are generally given preference. While there is no fixed application close date, the program functions on a biennial planning cycle, and early engagement is critical to ensuring eligibility in future rounds. For assistance, applicants can contact the DWEE Financial Assistance Section at (402) 471-4200 or via email at [email protected]. Additional support may be available from the Nebraska Department of Economic Development, USDA Rural Development, and the EPA’s Region VII Small Community Outreach Coordinators. The DWEE office is located at 245 Fallbrook Blvd., Suite 100, Lincoln, NE 68521. All public water systems in Nebraska are encouraged to apply and explore how this revolving fund program can help secure sustainable drinking water infrastructure for their communities.