TWDB Opens Annual Water and Wastewater Funding Opportunities
The Texas Water Development Board (TWDB) recently announced funding opportunities for several different cost-effective loan and grant funding programs that provide for the planning, acquisition, design and construction of water related infrastructure and other water quality improvements.
Below are the five different opportunities available:
State Water Implementation Fund for Texas (SWIFT)
The (SWIFT) program was created by the Texas Legislature to provide affordable, ongoing state financial assistance for projects in the state water plan. The program helps communities develop cost-effective water supplies by providing low-interest financing, extended repayment terms, deferred repayments, and incremental repurchase terms. Only loans are available, but interest rates are subsidized and many times lower than borrowers can get by using market financing.
Applicants are invited to submit short Abridged Applications that provide information the TWDB needs to complete prioritization of the projects.
Who is Eligible to Apply?
Any political subdivision or nonprofit water supply corporation with the ability to issue municipal bonds for a project included in the most recently adopted state water plan.
Deadline: Abridged applications are due by midnight on Feb. 1, 2024.
Drinking Water State Revolving Fund (DWSRF)
The DWSRF, authorized by the Safe Drinking Water Act, provides low-cost financing for a wide range of water projects that facilitate compliance with drinking water standards. Both subsidized rate loans and principal forgiveness (like a grant) are available for the planning, acquisition, design and construction of water infrastructure.
Who is Eligible to Apply?
Eligible entities include publicly and privately owned water systems, nonprofit water supply corporations, and nonprofit, non-community public water systems.
Deadline: Project Information Forms must be received by 11:59 p.m. CST on March 1, 2024.
Lead Service Line Replacement (LSLR)
The federal Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), appropriated funds for Lead Service Line Replacement (LSLR) projects and associated activities directly connected to the identification, planning, design and replacement of lead service lines. Eligible projects include development or updating of lead service line inventories, including location and mapping of lead service lines, complete removal of lead service lines (public- and privately owned portion) and replacement with pipe meeting requirements established under 40 CFR 143 and complying with state/local plumbing codes and/or building codes, and non-routine lead sampling (not for compliance purposes) as part of the LSLR project.
Who is Eligible to Apply?
Eligible applicants for the LSLR program include existing community public water systems, including political subdivisions, nonprofit water supply corporations, privately owned community water systems, and nonprofit, non-community public water systems. An entity’s project must meet the disadvantaged community criteria to receive funding under this IUP. For the SFY 2024 LSLR IUP, eligible disadvantaged communities must have an Annual Median Household Income (AMHI) that is no more than 150% of the state’s AMHI, or $109,598. All funding will be made at the ratio of 51% principal forgiveness and 49% below-market-rate loans.
Deadline: Completed LSLR PIFs are due by 11:59 p.m. CST on April 1, 2024.
Clean Water State Revolving Fund (CWSRF)
The CWSRF, authorized by the federal Clean Water Act, provides low-cost financing for a wide range of wastewater, reuse, and stormwater projects. Both subsidized rate loans and principal forgiveness are available for planning, acquisition, design and construction. Projects include collection, treatment and effluent facilities as well as project that reduce/elimination nonpoint-source pollution.
Who is Eligible to Apply?
Eligible entities include cities, counties, districts and river authorities.
Deadline: Project Information Forms must be received by 11:59 p.m. CST on March 1, 2024.
Emerging Contaminants Program (EC)
The Emerging Contaminants Program was authorized by the IIJA (BIL) and provides funding for projects that reduce exposure to perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other emerging contaminants through drinking water and to help address discharges through wastewater and, potentially, nonpoint sources. Funding is available for both water and wastewater projects and is offered as 100% principal forgiveness.
Who is Eligible to Apply?
Entities otherwise eligible for funding in the DWSRF and CWSRF programs.
Deadline: Completed LSLR PIFs are due by 11:59 p.m. CST on April 1, 2024.
How can Freese and Nichols help?
Freese and Nichols can help determine whether your project is eligible for funding and help you develop strong applications. In 2023 alone, Freese and Nichols helped its clients secure more than $833M in commitments from the TWDB.
For more information, contact Mark Evans, mark.evans@freese.com, Lacy Fenn, lacy.fenn@freese.com or your Freese and Nichols contact.