Drinking Water SRF 

The Drinking Water State Revolving Fund (DWSRF) Loan Program, administered by the Texas Water Development Board (TWDB), is authorized under the federal Safe Drinking Water Act. It is designed to provide low-cost financial assistance to support the planning, acquisition, design, and construction of water infrastructure projects across Texas. This program aims to help public water systems improve water quality, pressure, capacity, and reduce water loss, while also promoting consolidation of systems and protection of source water. Eligible applicants for the program include publicly and privately owned community water systems, including nonprofit water supply corporations and nonprofit, non-community public water systems. Funding can be used for a variety of project types such as correcting system deficiencies, upgrading or replacing systems, acquiring or consolidating systems, and implementing environmentally beneficial or source water protection initiatives. Financial assistance through the DWSRF includes below-market interest rate loans, 0% interest loans, and principal forgiveness, the latter functioning similarly to grants. The program offers various degrees of subsidization, such as 35% and 30% interest rate reductions for equivalency and non-equivalency projects respectively. Principal forgiveness is offered for qualifying disadvantaged communities, small or rural systems, very small systems, urgent need projects, and green projects, with specified maximum amounts and eligibility criteria detailed in the program’s Intended Use Plan (IUP). For the State Fiscal Year 2024, the DWSRF program has made at least $435 million available, with $95 million allocated for principal forgiveness. These funds derive from annual appropriations through the DWSRF capitalization grant and supplemental funding from the Infrastructure Investment and Jobs Act of 2021. To apply, entities must submit a Project Information Form (PIF) by the annual solicitation deadline—opening in December and closing in March—to be considered in the initial project priority list. Submissions are accepted year-round but may not be prioritized if submitted after the deadline. Applicants must comply with various regulatory requirements including NEPA-like environmental reviews, TWDB State Water Plan consistency, water conservation and drought contingency planning, Davis-Bacon wage requirements, and American Iron and Steel provisions. Additional compliance includes participation in a Financial, Managerial, and Technical (FMT) Capacity Assessment and adherence to federal mandates like the Disadvantaged Business Enterprise program and the Build America, Buy America Act for equivalency projects. For further assistance, applicants can contact TWDB’s regional project implementation teams, each led by a regional manager serving as the main point of contact. The TWDB is located at 1700 North Congress Avenue, Austin, TX 78701, and can be reached at 512-463-7847. Additional program documents, forms, and guidance are available through TWDB’s website.

Submit PIF by March deadline for priority list consideration; ensure compliance with all TWDB and EPA regulations to maximize funding eligibility