water infrastructure financing

Intended Use Plans

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:

Planning Advance

The Vermont Planning Advance Program is a financial program available to Vermont municipalities:

On-site Loan Program

Program Information

The Vermont Wastewater and Potable Water Revolving Loan Fund, also known as the On-site Loan Program, is available to certain Vermont residents for the repair or replacement of failed on-site wastewater and water supply systems.  For more information, please view the Fact Sheet, below.

VT Only Drinking Water SRF

The Vermont-only Drinking Water Revolving Loan Fund was established to provide loans to a municipality for the design, land acquisition, if necessary, and construction of a potable water supply when a household in the municipality has been disconnected involuntarily from a public water supply system for reasons other than nonpayment of fee.  The loan is to the municipality, not individual home owners.  Standard loan term is 20 year/3%.  The rate and term may be adjusted in accordance with program guidance documents.  

VT Pollution Control Grants

Currently Vermont statute allows for Pollution Control Grants of 10%  - 35% for qualifying Water Pollution Abatement and Control Projects.  The percent grant depends on:

  1. Eligible Project Type and Costs;
  2. Technical Points and Affordability Points awarded under the Priority System;
  3. Availability of Funding from the Vermont Legislature;
  4. Project ranking in the fundable range for PC Grants.

Formerly Vermont Statutes allowed for several types of Pollution Control Grants:

VT Pollution Control SRF

Vermont statute allows for potential project funding through this funding source.   All dollars are Vermont based, therefore, there are no federal requirements associated with these projects.  Projects generally follow the CWSRF process, but several requirements can be omitted, such as:

  • NEPA Environmental Review
  • American Iron and Steel
  • Davis-Bacon Wage Rates
  • Disadvantaged Business Enterprise 

However, there are still several similar State of Vermont requirements, such as:

DWSRF Water Planning Loan

The DWSRF Planning loan program provides 0% interest loans to public water systems seeking to conduct preliminary and final design engineering. This preliminary engineering can run the gamut from source exploration to feasibility studies for water system acquisition to preliminary and final design of a construction project. One of the most attractive aspects of the planning loan program is the loans accrue no interest and require no payments on the loan until the project goes to construction; if construction does not occur, payment of the loan occurs over a five year period.

Environmental Review

All federally funded projects are required to comply with NEPA, the National Environmental Policy Act. Since both the CWSRF and DWSRF receive federal funds, all elements of these projects must comply with NEPA. The State of Vermont has established two State Environmental Review Procedures (SERPs) to complete the environmental reviews associated with the required NEPA review.

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