The Water Quality Improvement Loan Program provides loans to cities and towns to fund water quality improvement projects to compliment municipal wastewater treatment projects.

The program funds projects designed to improve water quality, such as green street initiatives, removal of stormwater from wastewater systems, urban forestry programs and other water quality improvement efforts, by local governments receiving wastewater treatment funding through the Water Pollution Control Revolving Fund (WPCRF).

Municipalities that have wastewater projects on the fundable portion of the Fund’s Project Priority List can enter into contractual agreements with the Division of Watershed Stewardship for water quality improvement projects.

Funded water quality improvement projects must have demonstrated water quality improvement benefits and be managed for the life of the improvement.

Eligible Projects

Eligible projects are those that can show demonstrated water quality benefit.

Eligible Applicants

Eligible applicants are limited to municipalities with wastewater projects on the fundable portion of the WPCRF project priority list.

Funding Process

DNREC’s Environmental Finance Office will determine the demand for WPCRF Water Quality Improvement loans each year based on municipal wastewater projects on the fundable portion of the WPCRF Project Priority List. Environmental Finance will contact municipalities about the opportunity to participate in this program. Interested municipalities will then confer with DNREC Water Quality Improvement Loan program staff to discuss opportunities, review land parcels, and determine the optimal water quality improvement.

Depending on the land parcel selected, DNREC Water Quality Improvement Loan program staff will provide the necessary program application, explain program criteria, and enter into contractual agreements with municipalities. Necessary land appraisals and negotiations with landowners will be arranged or conducted by DNREC Water Quality Improvement Loan program staff. Loan settlement will be facilitated by Environmental Finance in consultation with attorneys representing the municipality, the landowner, and the WPCRF program. Municipalities shall begin loan repayment 30 days after loan settlement based on semi-annual loan debt service payments. Click here for loan program guidelines and click here for the loan application.

Related Topics:  finance, grants, infrastructure, loan-financing, loans, water quality financing