WaterNow Alliance hosted this year’s final Water Wednesday Webinar, “Finding Best-Fit Funding and Financing for Sustainable Water Projects”, on November 6, 2024, which focused on showcasing various funding and financing options for sustainable water projects. The webinar featured three programs including, the U.S. Bureau of Reclamation’s WaterSMART grant program as a way to kick-start water conservation projects; Colorado’s State Revolving Fund program as a key pathway to larger-scale investments in sustainable water infrastructure projects; and U.S. EPA’s Water Infrastructure Finance and Innovation Act loans as flexible financing for communities’ largest investments in sustainable infrastructure.
U.S. Bureau of Reclamation’s WaterSMART Program
Lucy Schurr and Drew Manning, Program Analysts at the U.S. Bureau of Reclamation, highlighted information about four WaterSMART grants along with tips and best practices for submitting successful applications.
WaterSMART Program Overview
WaterSMART is an umbrella term for multiple Federal financial assistance programs. These programs are divided into three categories: Planning, Science and Tools, and On-the-Ground projects. Most of these programs are grant programs and generally require a 50% non-federal cost share. Each program has unique eligibility criteria, funding amounts, and evaluation questions.
What to Know
- Fund disbursement takes time. Generally, it takes about 12 months from when the Notice of Funding Opportunity (NOFO) is posted to when award funding will be dispersed, so be sure to factor this into your project plans prior to applying.
- Applicants need to create an account and submit their application on grants.gov.
- Carefully read and answer all questions outlined in the NOFO. The NOFO, available on grants.gov, contains all the information you need to successfully apply. It is important to read the NOFO in its entirety and copy all application questions into your application document to ensure you are addressing each specific criterion for each question.
- If your application is unsuccessful, you can always apply again. It is recommended that applicants book a debrief appointment with USBR to discuss how to strengthen their application in a future application cycle.
- All federal funding projects require compliance with federal cultural and environmental policies, so get in touch with your regional USBR office if you have questions.
Stay in the Loop
- Visit the WaterSMART website to read more about each WaterSMART grant and sign up for WaterSMART updates.
- View the Funding Opportunity Calendar to see when each grant is expected to open.
Colorado State Revolving Fund Loan Program
Desi Santerre, Water and Wastewater Program Manager at Colorado Department of Local Affairs, spoke about the specific loan terms, eligibility details, and funding amounts for both the Drinking Water Revolving Fund (DWRF) and Water Pollution Control Revolving Fund (WPCRF).
Colorado SRF Program Overview
The State Revolving Fund (SRF) program is a national low-interest loan program administered by each state. Colorado communities can receive loans for drinking water projects through the DWRF and for wastewater projects through the WPCRF. In Colorado, the program is run by three agencies: The Water Quality Control Division (WQCD) who is the primary agency responsible for the SRF program, including program administration and technical review roles; the Colorado Water Resources and Power Development Authority (CWRPDA) who performs similar functions as a bank for this program; and the Colorado Department of Local Affairs (DOLA) who provides expertise in conducting outreach and providing technical assistance to local governments.
What to Know
- Additional SRF program funding from the Bipartisan Infrastructure Law (BIL), available through at least 2026, makes this an opportune time to apply for a SRF loan. BIL funding provides additional funding to regular SRF programs and enables states to provide loans through the Lead Service Line Replacement Program and Emerging Contaminants Program, as well as loan forgiveness for projects in these programs.
- The time from pre-qualification meeting to loan application can take between 12-18 months so plan accordingly and work with SRF program administrators to complete the application process as early as possible.
- Innovative infrastructure projects are eligible to receive funding and go beyond the more commonly thought of “conventional infrastructure” projects to include projects with more holistic elements such as backup generators for climate resilience, energy efficient equipment, onsite and offsite renewable energy, methane capture, and water reuse and precipitation capture projects.
- Additional subsidies are available for applicants. Through the Green Project Reserve Fund and Disadvantaged Communities program, eligible applicants and projects can receive a reduced interest rate between 1.5% - 2.75% on the first $3 million of the loan.
- SRF loans can be combined with additional funding and financing programs. To ensure project affordability, applicants can apply for SRF loans in addition to other grants and loans, such as USDA grants and/or loans, DOLA grants, or WIFIA loans.
USDA Photo by Lance Cheung.
Stay in the Loop
- Sign up for WCQD Newsletter to receive updates every other month on available funding for SRF programs, upcoming application cycles, and other program news.
Water Infrastructure Finance and Innovation Act Program
Dallas Shattuck, Senior Program Manager for the Water Infrastructure Finance and Innovation Act (WIFIA) program at the U.S. Environmental Protection Agency outlined details of the WIFIA program, including program metrics, loan terms, eligibility details, and project examples.
WIFIA Program Overview
The WIFIA program provides low-cost, long-term loans to drinking water, wastewater, and stormwater projects for public and private entities.
What to Know
- The WIFIA program provides flexible payment terms. Loan payments do not start until substantial construction is completed. Recipients can defer repayments for up to 5 years after substantial completion, wrap WIFIA repayments around other existing debt, and reset interest rates if a lower interest rate is available before they start their repayment period.
- Applicants often apply due to a few common drivers, such as, to ensure regulatory compliance, address water quantity and/or quality issues, mitigate impacts of climate change, and to modernize their infrastructure.
- WIFIA loans fund more than just construction projects, such as, project planning and design components and financing related project costs.
- There is no application deadline. Applicants can submit their Letter of Interest (the first part of the application process) any time throughout the year, allowing them to time submission with other funding application deadlines and receive expedited selection decisions.
Stay in the Loop
- Email [email protected] to speak with EPA employees about specific project questions or join the EPA’s WIFIA office hours on the second Wednesday of each month.
- Sign up for upcoming webinar announcements and office hours on EPA’s website.
Interested in Applying for These Funding and Financing Opportunities? Receive Free Support from WaterNow Alliance
Victoria Arling, the Colorado Basin Program Director at WaterNow, gave an overview of WaterNow’s technical assistance offerings to support Colorado communities applying for these funding and financing opportunities.
WaterSMART Grant Application Support and Help Desk
WaterNow provides free assistance to help Colorado communities navigate the WaterSMART application process. We provide the following support for nine WaterSMART programs:
- Application templates and checklists based on the Notice of Funding Opportunity
- Detailed review of your application (Please note that WaterNow is not able to write/draft WaterSMART applications)
- Targeted research tasks related to your application
- 1-on-1 calls to discuss grant opportunities and to strategize next steps
- Guidance on USBR grant submission processes
Check out our website for more information about our assistance and details about each WaterSMART grant we support. Fill out this Google form to access our support offerings.
Colorado SRF Technical Assistance Program
Modeled after the WaterSMART Help Desk program, WaterNow launched a SRF Technical Assistance Program this summer. This program is designed to assist communities looking for financing to support non-traditional water infrastructure projects, including green stormwater infrastructure, indoor and outdoor water efficiency, water reuse, source watershed protection, and lead service line replacement.
Fill out our inquiry form to access personalized consulting sessions to strategize projects and answer questions, guidance on pre-qualification and application process, support identifying key stakeholders, and more.
Tap into Resilience Pilot Community Program
Through our Tap into Resilience (TiR) program, WaterNow supports communities who are interested in scaling up their investments in innovative and sustainable water solutions through localized infrastructure projects. WaterNow provides 300 hours of pro-bono technical assistance to support pilot communities with their legal, tax, and accounting questions as they navigate using capital dollars to fund these localized infrastructure projects.
Visit our website for more information and to fill out our TiR Pilot Community interest form.
Interested in learning more?
View a recording of the webinar and download the presentation slides. Check out our Tap into Resilience resources for recordings of past webinars and additional funding and financing resources. Finally, keep an eye out for upcoming Water Webinar Wednesdays in 2025!