Maine State Revolving Loan Fund (SRF)

The SRF provides low interest loans to municipalities and quasi-municipal corporations such as sanitary districts for construction of wastewater facilities. The SRF is funded by a combination of federal capitalization grant and state bond issue funds equal to 20% of the federal grant. State bond issues are approved by the voters in the State of Maine. The Maine Municipal Bond Bank (MMBB) is the financial manager for the SRF program. The MMBB combines federal and state funds with MMBB bond funds to create attractive interest rates; 2% below the market rate.

The DEP Division of Engineering and Technical Assistance (DETA) administers the technical aspects of the program and the projects funded by it. The primary purpose of the fund is to acquire, plan, design, construct, enlarge, repair and/or improve publicly-owned sewage collection systems, intercepting sewers, pumping stations, and wastewater treatment plants. The long term goal of the SRF is to establish a self-sufficient loan program that will maintain and improve Maine's inventory of municipal sewage facilities in perpetuity. This will ensure preservation of the water quality gains that were realized by the initial construction of them.

State law also gives the DEP flexibility, through the related Construction Grant Program, to use bond issue funds with other sources of funding to provide affordable financing of municipal and quasi-municipal wastewater facilities. The Board of Environmental Protection has established a goal for residential users of 2% of the Median Household Income (MHI). The DEP attempts to reach this goal by combining grant funds, SRF loan funds, and other sources of funds such as Community Development Block Grants, Rural Development loans and grants, and grants or loans from the Economic Development Administration.

State participation is limited to 80% of the project costs for wastewater treatment facilities, interceptor systems and outfalls. The word "expense" does not include costs relating to land acquisition or debt service, unless allowed under federal statutes and regulations. The commissioner is also authorized to grant an amount not to exceed 25% for preliminary planning or design of a pollution abatement program.

Contact: Steve McLaughlin (207) 287-7768; Division of Engineering & Technical Assistance; 17 State House Station, Augusta, ME 04333-0017