Each year the CWSRF and DWSRF publish an Intended Use Plan (IUP), which is a planning report that explains how the SRF funding "cap grant" provided by the Federal government will be used to support the programs. Each IUP involves a public hearing and comment period, a priority list, and an explanation about how money will be used to meet funding requirements. Each IUP can be amended by request in January.
Each IUP makes program decisions to meet requirements set by Congress in each year's cap grant. Those program decisions are discussed briefly below:
Each cap grant sets a minimum and maximum subsidy. States decide in the IUP how to apply the subsidy, largely in part due to participation in the annual public hearing.
CWSRF subsidy is currently required at 0-30% of the cap grant. This is about $0-$2M. Conditions for use of the subsidy are detailed in the IUP. Subsidy is applied as principal forgiveness on the loan at closing. Subsidy is administered on a first come, first serve basis. For CWSRF projects, subsidy applied to Consulting Services will need to comply with Federal requirements for the procurement of those services.
DWSRF subsidy is currently set at a minimum of 20% with up to an additional 30% of the cap grant. Conditions for use of the subsidy are detailed in the IUP. Subsidy is most frequently applied in the form of principal forgiveness to disadvantaged systems. Subsidy is administered on a first come, first serve basis.
For both programs, not all applicants may be eligible for subsidy regardless of whether or not the ceiling is met. Please see the respective annual IUPs for eligibility requirements. Call your project development specialist when you have questions.
Green Project Reserve
The CWSRF program requires that a portion of the projects funded with the cap grant qualify as green projects. Currently these projects include water and energy efficiency projects and green stormwater infrastructure. Some examples include anaerobic digester refurbishment projects in Brattleboro and South Burlington.
Current business cases:
Bellows Falls, RF1-180, Sewer Improvements- Hadley, Chase and Oak Sts
The DWSRF program encourages green projects, but there is no reserve requirement. Examples are: replacement of leaking pipes, new or replacement of individual water meters, and purchase of WaterSense labeled plumbing fixtures.
The DWSRF program is able to "set aside" money from the cap grant in the IUP in order to incentivize certain types of mini-projects. Current set asides include: archeological services, asset management, leak detection, technical service contracts, training contracts, and the Water Planning Loan Program.
The CWSRF program does not and cannot do set asides.