Clean Water Fund Program

Each state has the flexibility to choose their own priorities and select projects. These priorities can be found in each state’s Intended Use Plan.

Short-Term Goals:

• Provide additional economic assistance in the form of principal forgiveness with the highest amounts allocated to those applicants with the greatest financial need.
• Provide additional assistance, in the form of principal forgiveness, to municipalities that qualify under the affordability criteria to help offset the cost of compliance with more protective phosphorus limits.
• Provide additional assistance, in the form of principal forgiveness, to help offset the costs of wastewater treatment plant (WWTP) regionalization projects.
• Provide matching funds in the form of principal forgiveness to municipalities that are working with Focus on Energy to upgrade the energy efficiency of their WWTPs.
• Allocate a minimum of 10% of capitalization grant funds to projects or portions of projects that incorporate water or energy efficiency, are considered green infrastructure, or are environmentally innovative.
• Work with internal and external parties to identify options for funding innovative projects that enhance water quality, including nonpoint-source pilot projects for meeting phosphorus requirements through water quality trading.
• Explore avenues to support pre-apprenticeship, registered apprenticeship, and youth training programs that open pathways to employment.
• Conduct public outreach and education regarding program policies, procedures, and participation.
• Evaluate the feasibility, benefit, and public opinion of incentivizing projects that target unsewered areas serving existing homes.

Long-Term Goals:

• Develop strategies and mechanisms to promote regionalization as a viable alternative for small, economically challenged communities with declining populations and aging WWTPs.
• Protect the public health and environmental quality of the state of Wisconsin.
• Manage the revolving loan fund in such a way as to protect its long-term integrity and enable it to revolve in perpetuity.
• Provide economic assistance to municipalities, including those that may not have substantial credit histories, for the purposes of constructing and maintaining water quality related infrastructure.
• Identify and implement innovative programs necessary to fill funding gaps in the state for meeting water quality standards and objectives.
• Implement policy changes that encourage municipalities to make their wastewater treatment systems and stormwater systems more resilient, sustainable, and adaptive to climate change impacts.
• Continue to refine strategies, programs, and mechanisms to ensure that municipalities are able to address the highest priority water quality problems.

Click on the next section to learn more about this funding opportunity’s eligibility requirements.

The threshold for eligibility includes:

• Facility plan approval letter required for all projects – no exceptions.
• Design Life Calculation Worksheet is now required for all projects (even 20-year loan terms) unless the project consists solely of installation or replacement of pipeline.
• If requesting funding for Planning & Design costs, be certain to include the associated contract or contracts for all requested costs.

Click on the next section to learn more about the matching requirements for this funding opportunity.

The required 20% state match for the Base and Supplemental capitalization grant is authorized under state law and will be generated from revenue bonds. All state matching funds will be disbursed to loan recipients before the state makes the first draw of federal funds from the capitalization grant. Thereafter, all draws against the grant will be made at a cash draw ratio of 100% federal funds. No state match is required for the Emerging Contaminants capitalization grant.

Click on the next section to learn more about the eligible costs for this funding opportunity.

Eligible costs include:

• Compliance Maintenance and New/Changed Limits Projects: These projects are necessary to maintain compliance with permit requirements or implement new or changed limits required by law.
• Water Meter Projects: These projects are eligible when the municipality requesting funding does not have a public drinking water system, and only where meters will be added or replaced throughout the entire system.
• Septage Receiving Facilities: 2005 Wisconsin Act 347 was enacted in April 2006. This Act pertained to septage receiving facilities and provides a 0% interest rate on projects or portions of projects funded by the CWFP that are for the receiving, treatment, and/or disposition of septage.
• Urban Stormwater and Urban Nonpoint Source Projects: These projects must be primarily water quality related. Portions of a project solely for flood control or future growth are funded at market rate. This includes Green Infrastructure projects on public or private property. Contact Environmental Loans with questions about project eligibility.
• Unsewered Projects: These projects are only eligible for market rate financing unless 2/3 or more of the initial wastewater flow will come from homes that were in existence for at least 20 years prior to the date of the application.
• Violator Projects and those Portions of Projects that Provide Industrial and Reserve Capacity: Eligible projects or portions of projects in these categories receive market rate funds.
• Pilot Projects: Non-traditional CWFP projects (such as water quality trading) as part of the CWFP Pilot Projects Program are eligible for loans with an interest rate as low as 0%.

Click on the next section to learn more about this funding opportunity’s project timeline.

The project timeline is up to 30 years or the useful life of project, whichever is less.

Click on the next section for this funding opportunity’s application deadline and forms.

The deadline to submit applications for CWFP SFY 2026 funding is September 30, 2025. Applicants must have an eligible project on the SFY25 Project Priority List. Applications must include a facility plan approval letter and approvable plans and specs,.

The deadline to submit an Intent to Apply (ITA) for SFY2026 is October 31, 2025.

All CWFP applications, other than those for the Pilot Projects Program, are required to be submitted through the online application system. Information on accessing and using the online application system is available on the DNR website.

Click on the next section to access the Contact Information for this funding opportunity.

For general questions, please contact:
Lisa Bushby, Clean Water Fund Program Coordinator
Phone: (608) 358-3330

For questions on environmental loans, please contact:
Matt Marcum, Environmental Loans Section Manager
Phone: (608) 575-8825

For questions on environmental loans, please contact:
Becky Scott, Environmental Loans Section Manager
Phone: (608) 513-9351

For questions related to stormwater, please contact:
Sarah Bolitho, CWFP Storm Water Specialist
Phone: (608) 960-2927