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| A loan and grant program |
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A loan and grant program to provide for the design and construction of public infrastructure needed to ensure compliance with the Safe Drinking Water Act or the Clean Water Act.
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| Eligible applicants |
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The public entities or "municipalities" that are eligible to apply for the program are:
- Cities
- Counties
- County Service districts (organized under ORS Chapter 451)
- Tribal Councils of Indian tribes
- Ports
- Special Districts as defined in ORS 198.010
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| Eligible projects |
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The proposed project must be owned by a public entity that is an Eligible Applicant. Eligible activities include reasonable costs for construction improvement or expansion of drinking water, wastewater or storm water systems.
To be eligible a system must have received, or is likely to soon receive, a Notice of Non-Compliance by the appropriate regulatory agency, associated with the Safe Drinking Water Act or the Clean Water Act. Projects also must meet other state or federal water quality statutes and standards.
Eligible activities
- Water source, treatment, storage and distribution
- Wastewater collection and capacity
- Stormwater system
- Purchase of rights of way and easements necessary for construction
- Design and construction engineering
Ineligible activities
- Privately owned facilities and infrastructure
- Purchase of property not related to infrastructure construction
- Costs incurred prior to award, except costs for engineering and other support activities necessary to construction (department approval required)
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| Criteria and limitations |
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Projects are necessary to ensure that municipal water and wastewater systems comply with the Safe Drinking Water Act or the Clean Water Act.
In addition, other limitations apply:
- The project must be consistent with the acknowledged local comprehensive plan.
- The municipality will require the installation of meters on all new service connections to any distribution lines that may be included in the project.
- Recipient shall certify that a registered professional engineer will be responsible for the design and construction of the project.
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| Funding |
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The fund provides both loans and grants, but it is primarily a loan program. The loan/grant amounts are determined by a financial analysis of the applicant's ability to afford a loan (debt capacity, repayment sources and other factors).
Loans
The Water/Wastewater Financing Program's guidelines, project administration, loan terms and interest rates are similar to the Special Public Works Fund program. The maximum loan term is 25 years or the useful life of the infrastructure financed, whichever is less. The maximum loan amount is $15,000,000 per project through a combination of direct and/or bond funded loans.
Loans are generally repaid with utility revenues or voter approved bond issues. A limited tax general obligation pledge also may be required. "Credit worthy" borrowers may be funded through sale of state revenue bonds.
Grants
Grant awards are limited to a maximum of $10,000 per hookup. The maximum grant is $750,000 per project.
An applicant is not eligible for grant funds if the applicant's annual median household income is equal or greater than 100 percent of the state average median household income for the same year.
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| Additional assistance for municipalities |
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The department offers "Technical Assistance" financing for municipalities faced with the costs of studying and/or planning for an eligible project. The technical assistance funds can be used to finance preliminary planning, engineering studies and economic investigations. Municipalities with populations of less than 15,000 are eligible for awards from this program.
Technical Assistance projects must be in preparation for a construction project that is eligible and meets the criteria established by rule. The applicant must be ready to proceed with the project upon execution of a contract with the department.
- Grants up to $20,000 may be awarded per project.
- Loans up to $20,000 may be awarded per project. Interest shall be at 75 percent of the rate for other direct loans.
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