Water Pollution Control State Revolving Fund Loans

The Water Pollution Control State Revolving Fund (WPCSRF) was created by the 1989 Legislature. It is designed to combine federal grant money with state matching money to create a low-interest loan program that funds community wastewater treatment projects. DNRC and DEQ co-administer the SRF program. The U.S. Environmental Protection Agency (EPA) makes a grant of federal funds to the state. The state must match at least 20% of that grant. The state's share is derived from the sale of state general obligation bonds. From 1991 to 2003 the interest rate was 4% for up to 20 years. In FY 2004, the interest rate dropped to 3.75%; this rate continued in 2010-2011.

Since the program started, the State of Montana has issued $30.7 million in general obligation bonds, and EPA has contributed $169.4 million in grants, which accounts for the $308.3 million program level. Eighty-one loans totalling $52.7 were closed in the 2010 construction season. The program expects to make loans of $25 million in FY 2011.

In FY 2010, the city of Conrad borrowed $585,000 to rehabilitate its wastewater treatment plant. The 20-year loan has an interest rate of 3.75%. The city's total cost to put the treatment plant in place was $5.5 million. Conrad also received federal American Recovery and Reinvestment Act (ARRA) funds with an interest rate of .75%.

Also in FY 2010, the town of Plains borrowed $502,000 to improve its wastewater system. The community demonstrated hardship and the loan was combined with other grants to complete the project. Because federal ARRA funds were used, the interest rate was .75% over 20 years.

The 1997 legislature authorized the WPCSRF to start financing landfills for small communities. The first landfill loan was make to the Northern Montana Refuse District in FY 2003. The Gallatin County Logan Landfill loan was completed in FY 2008 and more are expected to close in FY 2011.

Wastewater Revolving Loans List (PDF)

For Additional Information Contact:

Anna Miller annam@mt.gov 
Montana Department of Natural Resources and Conservation
Resource Development Bureau
1625 Eleventh Avenue
Helena, Montana  59620-1601
Phone: 406-444-6668
FAX: 406-444-6721
Website: http://dnrc.mt.gov