State Municipal Wastewater Grant Program and
Clean Water State Revolving Loan Fund
Opportunity for Comment
Comment deadline: July 29, 2021
In compliance with the requirement in the Federal Water Pollution Control Act, Section 606(c) to provide for public review and comment, the Department posted the Intended Use Plan in draft form at http://www.maine.gov/dep/water/grants/srfparag.html, beginning on or around July 12, 2022, requesting all comments be submitted by 5:00 p.m., July 29, 2022 to Brandy Piers, (207) 287-6093 or Maine.CWSRF.Grants@maine.gov.
Stakeholders and interested parties are encouraged to submit written comments to regarding the 2022 Draft Intended Use Plan by 5:00 p.m. July 29, 2022.
State Municipal Wastewater Grant Program
State law gives the DEP flexibility, through the Wastewater Grant Program, to use bond issue funds with other sources of funding to provide affordable financing of municipal and quasi-municipal wastewater facilities. In 1985 the Board of Environmental Protection adopted a policy to use 2% of the Median Household Income (MHI) as a not to exceed goal for a single-family dwelling's annual sewer user charge. The Water Resources Reform and Development Act of 2014 (WRRDA) amended the Federal Water Pollution Control Act to require Clean Water State Revolving Fund (CWSRF) programs to develop affordability criteria that includes income and unemployment data, population trends, and other data determined relevant by the State. In accordance with WRRDA, the Department developed an affordability analysis that considers these three criteria as well as two others, poverty data and the sewer user charge as a percent of the MHI. For consistency between programs, the Department will use the affordability analysis developed under the CWSRF program to determine the financial need of applicant for state grant assistance. In the analysis, the five criteria establish a state average of five points. Each municipality’s affordability points are added up and compared to the State’s. A municipality with points below 5.0, would generally be in better position to afford a project, where as a municipality with points above 5.0 would likely be in more need of financial assistance. In determining the affordability of a project, the Department has established that a municipality’s affordability points must exceed the total of the State average points by 40% to be eligible for additional financial assistance. Therefore, the sum of a municipality’s affordability criteria must be a minimum of 7.0 (140% of 5.0) points to be eligible for possible principal forgiveness under the CWSRF program and/or grants through the Wastewater Grant Program. Whenever possible, the DEP works with local officials to combine grant funds, loan funds, and other sources of funding from U.S.D.A. Rural Development, U.S. Economic Development Administration, and H.U.D. Community Development Block Grants program in an effort to keep user charges below an affordability threshold.
Under this program, and within the availability of funding, the Commissioner is authorized to grant an amount not to exceed 25% of the costs for preliminary planning of a pollution abatement program and design of a wastewater infrastructure project; and an amount not to exceed 80% of the construction and construction engineering costs for a wastewater infrastructure project, i.e. treatment facilities, sewer systems and effluent outfalls.
How to apply
Wastewater Planning Grant
The Department has allocated $200,000 for Wastewater Planning Grants in state fiscal year 2020. Grants may be awarded in the amount of 15–25% of the eligible costs for preliminary planning of a pollution abatement plan, i.e. facilities plan, preliminary engineering report, etc., up to a maximum of $10,000 per applicant. To be eligible for a planning grant, applicants with a wastewater treatment system must have affordability points of 7.0, or higher. (see State Grant Affordability Calculator) Applicants without an existing wastewater system are exempt from this requirement. There is No Deadline for submission of an application and the Wastewater Planning Grant User Rate Calculator. Applications may be submitted throughout the year and will be processed and awarded to eligible applicants in order of receipt, until allocated funds are expended. Please see the State Wastewater Infrastructure Planning and Construction Grants Available (pdf) announcement for details.
- 2020 Application Form for Wastewater Planning State Grant (Word)
- Wastewater Planning Grant User Rate Calculator (Excel)
Wastewater Infrastructure Grant
In state fiscal year 2020 the Department allocated the remaining $13,450,000 for Wastewater Infrastructure Grants. Grants were awarded in the amount of 15-25% of the eligible costs for design and up to 80% of the eligible construction costs (bidding, construction administration and inspection, and construction). Currently the Department has exhausted its allotment for grant funding in this program. When that changes, we will once again solicit projects for grants.
Clean Water State Revolving Loan Fund (CWSRF)
Through a partnership between the Maine Municipal Bond Bank (MMBB) and the DEP, the CWSRF program provides low interest loans to municipalities and quasi-municipal corporations (i.e. village corporations, sanitary, sewer & utility districts, etc.) for the construction of wastewater infrastructure projects. The DEP Division of Water Quality Management (DWQM) administers the technical aspects of the CWSRF program and the projects funded by it. The long-term goal of the CWSRF is to establish a self-sustaining loan program that will maintain and improve Maine's inventory of municipal sewage facilities in perpetuity. By working toward a self-sustaining fund, Maine’s municipal sewage treatment facilities can be better maintained resulting in better water quality throughout the state.
The primary purpose of the fund is to acquire, plan, design, construct, enlarge, repair and/or improve publicly-owned sewage collection systems, interceptor sewers, pumping stations, and wastewater treatment plants. In addition, the program also funds public and private non-point source water quality protection and improvement projects, such as landfill closures, sand/salt storage facilities, septic system repair and replacement, storm water projects, agricultural best management practices, and specific silviculture equipment purchases.
The CWSRF program is funded by federal and state contributions which are loaned out and repaid with interest. The repayment and interest money is recycled back into the program to fund additional water quality protection or improvement projects. The revolving nature of the program is designed to provide ongoing funding for water quality projects. The MMBB combines federal, state, and repayment monies to create attractive interest rates. The program offers interim financing at 1%, or two-thirds of the one-year AAA municipal tax-exempt rate, whichever is higher, and long-term financing at, 2% below the market rate, with a minimum 1% interest rate. Loan terms up to 30 years or the useful life of the project, whichever is less, are available. If an entity has the financial capacity to borrow and that the program has sufficient funding, there is no minimum or maximum amount that an entity must or can borrow.
How to apply
Maine's CWSRF program is an open enrollment program with no application deadline unless the loan applicant is interested in qualifying for a loan with additional subsidy. To apply for a loan without additional subsidy, simply complete the CWSRF Notification of Intent to Borrow form and submit it to the Department as instructed and complete the SRF financial Application located on the MMBB website and submit to the MMBB. Loan applicants interested in qualifying for a loan with additional subsidy are required to submit a different application to the Department by a specific deadline. When available, those details are provided in the following section.
Federal Fiscal Year (FFY) 2022 Clean Water State Revolving Fund and Bipartisan Infrastructure Law (BIL)
The Department notified municipal discharges, non-point source control entities, and consulting engineers of the FFY 2022 funding available for wastewater infrastructure and water pollution abatement projects and requested that they submit a listing of any projects to be considered for funding. The FFY 2022 federal appropriation allows States, to use a portion of their capitalization grant as additional subsidy to borrowers. Based on the federal appropriation and Maine's capitalization grant of $8,957,000, Maine's CWSRF can offer up to a maximum of $3,582,800 in additional subsidy. The Department will be offering this subsidy in the form of loan principal forgiveness to borrowers.
On November 15th, 2021, President Biden signed the Bipartisan Infrastructure Law (BIL) which provides additional funding allocations to the CWSRF for the years FY 2022 through FY 2026. In FY 2022 the CWSRF will receive Supplemental funding of $13,777,000, of which 49%, or $6,750,730, is principal forgiveness. The process of awarding these funds will follow a similar process to the Base CWSRF program.
The BIL will also provide funding to be used in the treatment of any pollutant that is a perfluoroalkyl or polyfluoroalkyl substance (PFAS) or any pollutant identified by the Environmental Protection Agency Administrator as a contaminant of emerging concern. This funding has a five-year projection from FY 2022 through FY 2026, the FY 2022 allotment is $724,000 for the CWSRF program, of which 100% is principally forgiven. The process of awarding these funds is like the Base CWSRF program.
Congress and EPA encourage States to target this subsidy for public health and water quality protection projects to communities that could otherwise not afford an SRF loan. In addition, green infrastructure, water or energy efficiency improvements and sustainable infrastructure through implementation of fiscal sustainability plans are also a priority to EPA. This necessitates the ranking of the projects to determine which projects will receive a portion of the limited principal forgiveness. An explanation of how principal forgiveness will be allocated in 2022 is included in the priority system section of the Draft Intended Use Plan (IUP) for FFY 2022 below.
Using the FFY 2022 ranking criteria, the Department reviewed information submitted by applicants for their proposed projects and developed a Proposed Project List of projects anticipated to be under construction by July 1, 2023 and a Proposed List for Fiscal Sustainability Plans and Climate Adaptation Plans Without a Capital Project. Offers consisting of below market-rate interest loans and/or principal forgiveness were made to fund the proposed projects on these lists, pending available funding. Not all loan offers were accepted.
In compliance with the requirement in the Federal Water Pollution Control Act, Section 606(c), the Department posted the Intended Use Plan in draft form for public review and comment. No comments were received during the comment period.
Water Resources Reform and Development Act of 2014 (WRRDA)
The Water Resources Reform and Development Act of 2014 (WRRDA) became law on June 10, 2014. In addition to other things, the law made amendments to Title VI of the Federal Water Pollution Control Act, thereby affecting change in the CWSRF program. Although most of the amendments became effective on October 1, 2014, some of them are being phased in through October 1, 2015. EPA’s Interpretive Guidance provides a listing of the amendments and EPA’s guidance on the changes. The Department has notified municipal officials, wastewater districts, and environmental consultants, and potential loan applicants of the program changes, new requirements, and new program eligibilities. One of the new requirements of loan recipients is the development and implementation of a Fiscal Sustainability Plan (FSP) for a project that involves the repair, replacement, or expansion of a treatment works. In accordance with the Interpretive Guidance, the Department has developed State requirements and guidance for loan recipients to comply with the FSP requirement.
- Water Resources Reform and Development Act of 2014 (off site)
- Interpretive Guidance for Certain Amendments in the Water Resources Reform and Development Act to Titles I, II, V, and VI of the Federal Water Pollution Control Act (pdf)
- American Iron and Steel (AIS) Requirement (off site)
- CWSRF Notification of Program Changes (pdf)
Brandy Piers, P. Eng., P.E.
Engineering Services Manager
Division of Water Quality Management
17 State House Station
Augusta, ME 04333-0017
Tel: (207) 287-6093
Prior Year Documents
- Final Intended Use Plan (IUP) for FFY 2021 (pdf)
- Final Amended Intended Use Plan (IUP) for FFY 2020 (pdf)
- Final Intended Use Plan (IUP) for FFY 2019 (pdf)
- CWSRF Annual Report of State FY 2021 (pdf)
- CWSRF Annual Report of State FY 2020 (pdf)
- CWSRF Annual Report of State FY 2019 (pdf)
Chapter 595, State Revolving Fund, contains requirements pertaining to the SRF program.
38 MRSA §411, State Contribution To Pollution Abatement (off-site)
38 MRSA §412, Grants By State For Planning (off-site)
30-A MRSA §5953-A, Loans From Revolving Loan Fund (off-site)
30-A MRSA §6006-A, Revolving Loan Fund (off-site)
- State Grant Affordability Points Calculator 2020 (xlsx)
- Maine City-Town Census Data for 2010 & 2020(pdf)
- CWSRF Program Handbook (pdf), Reference to loan applicants on the CWSRF program
- Climate Adaptation Plan (CAP) Requirements and Guidelines (pdf)
- CWSRF Requirements and Guidance for a Fiscal Sustainability Plan (FSP) (pdf)
- CWSRF Cost and Effectiveness Requirements and Guidance (pdf)
- CWSRF Affordability Criteria (pdf)
- CWSRF Payment Request Form (xls)
- CWSRF Payment Request Summary Sheets (xls)
- CWSRF Notification of Intent to Borrow (docx)
- Maine Wastewater Infrastructure Needs (2020 Clean Watersheds Needs Survey) (pdf)
- Information on the SRF from the Maine Municipal Bond Bank (applications) (off-site)
American Iron and Steel Information and Forms
- AIS Law, PL 113-76, Use of American Iron and Steel
- AIS Certification by Contractor
- AIS Certification by Owner
- AIS Covered Products Q&A
- AIS De Minimis Tracking Form
- AIS Step Manufacturer Certification
Davis-Bacon Act Documents and Forms
- Davis-Bacon Employee Rights Poster WH 1321 [off site]
- Davis-Bacon Labor Standards Interview Form SF 1445 [off site]
- Davis-Bacon Payroll Form WH 347 [off site]
- Davis-Bacon Request for Additional Classification SF 1444 [off site]
- Owner's Davis-Bacon Compliance Report
- Davis Bacon Guidance for Self Employed, Foremen, and Executives
Disadvantaged Business Enterprise Forms
- DBE Subcontractor Participation Form DEP 6100-2
- DBE Subcontractor Performance Form DEP 6100-3
- DBE Subcontractor Utilization Form DEP 6100-4
- DBE Progress Report of DBE Subcontractor Utilization Form