Drinking Water State Revolving Fund
The Drinking Water State Revolving Fund (DWSRF) provides funds for training, technical assistance, and the issuance of low-interest loans to local governmental entities to finance drinking water facilities and implementation of the Safe Drinking Water Act. State enabling legislation was passed in 1995 and amended in 1997, after the U.S. Congress passed federal enabling legislation in August 1996. DNRC and DEQ co-administer the Drinking Water Program. The two agencies first applied for federal funds in January 1998.
The state has issued $20.5 million in general obligation bonds, EPA has obligated $118.4 million, and $24.8 million in "recycled" (repaid) loans have been used to fund loans for a program level of $163.7 million. Seventy loans totaling over $35.1 million were closed in the 2010 construction season and program staff expect to make loans of $14 million in FY 2011.
Of the 70 loans closed, one was to the town of Troy and was a federal American Recovery and Reinvestment Act (ARRA) project loan for $500,000 at .75% interest. These funds were used for the rehabilitation of the city's drinking water storage tank and some water distribution lines.
These projects continue to improve the communities that participate in the loan programs. The loan interest rate helps to make the projects affordable. In the past, no loans were made over the 4 percent interest rate. As with the WPCSRF Program, interest rates before FY 2003 were 4 percent; in FY 2004, the interest rate decreased to 3.75.% and stays there currently. With the ARRA funding some loan interest rates were reduced.
For Additional Information Contact:
Anna Miller firstname.lastname@example.org
Montana Department of Natural Resources and Conservation
Resource Development Bureau
1625 Eleventh Avenue
Helena, Montana 59620-1601