Drinking Water State Revolving Loan Fund (“DWSRLF”) is operated in partnership with the New Mexico Environment Department (“NMED”) to provide low-cost financing for the construction of and improvements to drinking water facilities throughout New Mexico in order to protect drinking water quality and the public health.
This federally funded program, managed by the NMFA on behalf of the State of New Mexico, is funded through a federal capitalization grant of approximately $8 million annually. The State is required to match the federal grant by 20 percent. The primary use of the funding is for zero or two-percent loans to drinking water systems to fund vital water quality projects.
There are three priorities of the program:
- protection of public health;
- compliance with drinking water standards; and
- affordable access to drinking water.
To ensure the success of the program, NMFA and NMED partner to provide technical, managerial and financial assistance to water systems as well as low-cost loans.
The DWSRLF provides long term loans at below market interest rates.
- Publicly-Owned Water System—Disadvantaged 0%*
- Publicly-Owned Water System—Non-disadvantaged 2%
- Privately-Owned Water System—Non-profit 3%
- Privately-Owned Water System—For-profit 4%
* Disadvantaged funding is limited to the first $600,000 of total project financing. Disadvantaged is defined as:
- Disadvantaged – Community has (1) a Median Household Income (MHI) less than 90% of the State’s MHI and (2) an Affordability Ratio between 0.010 and 0.015.
- Severely Disadvantaged – Community has (1) an MHI less than 90% of the State’s MHI and (2) an Affordability Ratio greater than 0.015.
Median Household Income date can be found at: 2017 MHI Numbers
Community water systems and non-profit non-community water systems are eligible to apply for DWSRLF funding. Projects that protect drinking water quality and public health are eligible for the DWSRLF, including:
- New and replacement water sources
- Transmission and distribution lines
- Supervisory Control and Data Acquisition (SCADA) systems
- Infrastructure to interconnect or regionalize water systems
In addition to funding costs needed for project construction, the DWSRLF can also finance planning, design and associated pre-project costs, and land acquisition needed for locating project components.
Current Comprehensive and Fundable Priority List
DWSRLF Comprehensive and Fundable Priority Lists identify projects that are expected to receive DWSRLF funding in the future. They are prepared quarterly.
Water systems on the Fundable Priority List have met three criterias:
- capacity to maintain compliance with federal and state drinking water regulations;
- readiness to proceed with the project in a reasonable timeframe;
- financial ability to take on debt and repay the loan, and are eligible to submit a DWSRLF application.
EPA Grant and Intended Use Plan
The NMFA is the state’s recipient of federal Environmental Protection Agency (EPA) Capitalization Grants awarded under the Safe Drinking Water Act (SDWA). The SDWA partners with the NMFA and NMED to carry out the provisions of the program.
The Intended Use Plan is required by the SDWA in order to receive each Capitalization Grant, pursuant to 40 CFR 35.3555. The amount of the Capitalization Grant allotted to the State is determined by Congress and administered by the EPA. The Intended Use Plan contains information about the short and long-term goals, subsidy and green project reserves, principal forgiveness, and other programmatic topics funded by the Capitalization Grant.
The SFY 20 Intended Use Plan details new proposed DWSRLF Disadvantaged Community Program policies and changes related to the American Water Infrastructure Act of 2018 (AWIA). Public comments on the new proposed policies may be submitted to DW@nmfa.net until June 14, 2019.
New Mexico State Environmental Review Process (SERP)
The applicant’s preparation of the environmental information required as part of the State Environmental Review Process (SERP) and the Chief Executive Officer of the NMFA review and issuance of a determination forms an integral part of the planning process required of any potential applicant to the DWSRLF. (In 1997, the New Mexico Legislature enacted the Drinking Water Revolving Loan Fund Act – 1997 N.M. Laws, ch. 144, paragraph 1 to 9 (the Act)). The Act establishes a DWSRLF that is funded through the Safe Drinking Water Act (SDWA) and Amendments – United States Environmental Protection Agency (EPA) and administered by the NMFA.
If you have any questions regarding the DWSRLF application process, please contact a Public Lending Officer or: