Funding Database: Clean Water State Revolving Fund

The Clean Water State Revolving Fund (CWSRF) provides low-interest and zero-interest loans supplemented with limited principal forgiveness, as allowed by the Clean Water Act §603(i)(3), for wastewater, stormwater and stream restoration projects which support clean water. This includes treatment facilities and projects associated with estuary and nonpoint source pollution programs. The NC Department of Environmental Quality (NC DEQ) Division of Water Infrastructure, which administers the program, provides loans to local government units at half the market rates for implementation, repair and maintenance of clean water infrastructure. 

NC DEQ, as required by the American Recovery Act of 2009, uses a portion of the state’s CWSRF allotment for projects that address green infrastructure, water and energy efficiency and other environmentally innovative activities. 

Eligible Applicants

Local government units, including counties, cities, towns and sanitary districts, are eligible to apply.

Eligible Projects

The following projects are eligible for CWSRF loans:

• Wastewater treatment
• Wastewater collection
• Reclaimed water
• Stormwater Control Measures (SCMs)
• Stream, buffer and wetland restoration
• Energy efficiency at treatment works or collection systems

Project prioritization considers four aspects, including the project purpose, benefit, system management and affordability. NC DEQ gives higher priority to projects that target failing water infrastructure, consolidate nonviable systems or reduce nonpoint source pollution. Replacement and rehabilitation are more competitive than building new infrastructure. NC DEQ also prioritizes project proposals that illustrate environmental benefits, well developed asset management plans and that offer value to disadvantaged areas.

Funding Amount

Funding is highly variable and depends on project needs. Typical awards are between $5 million and $10 million and go no higher than $35 million.

The types of funding available are:

• Low-interest loans
• Principal forgiveness loans
• 1 percentage point discount rate loans available for SCMs, stormwater restoration, energy efficiency, water efficiency and water quality projects and for rehabilitation projects for certain local government units

Match Requirements

Program participants must provide a 2% closing fee, which cannot be financed. The State of North Carolina provides the 20% match required by the federal program.

Application Schedule

Applications are open twice annually, opening for two months in the spring and in the fall. Keep note of NC DEQ Application Forms page to see upcoming deadlines. The CWSRF program will issue a Letter of Intent to Fund (LOIF) to successful applicants. An outline of the 24-month plan of action from receiving a LOIF to executing construction contracts is outlined in the 2022 Intended Use Plan (PDF).

Application Process

The Applications Forms and Additional Resources page contains the application document, a guide for filling out the form and an overview of the priority ranking system.

Application Assistance

Review Using Clean Water State Revolving Funds for Greening and Climate Resilience: A Guide for Local Governments. In addition, the NC DEQ Division of Water Infrastructure offers in-person, virtual and recorded application trainings. Contact the NC DEQ staff listed above for additional application assistance.

Funding Source

Congress provides funds for states to establish this revolving loan program.