Overview
This program is designed to provide low-cost financing to assist community public water suppliers comply with the Safe Drinking Water Act requirements.
The program's goals are to protect public health and strengthen compliance with drinking water requirements while addressing the Commonwealth's drinking water needs through affordability and proper watershed management priorities.
Eligible Projects
Community public water suppliers can access financial assistance for the planning, engineering, and construction of drinking water infrastructure projects, such as construction of new water treatment facilities, that protect public health and improve compliance with federal and state regulations. Drinking Water SRF Eligible Project Costs
Eligible projects include:
- new or upgraded drinking water treatment facilities, or storage facilities;
- projects to replace contaminated sources;
- consolidation or restructuring of water systems;
- projects and system activities that provide treatment, or effective alternatives to treatment, for compliance with regulated health standards, such as the Surface Water Treatment Rule;
- installation or replacement of transmission or distribution systems; and,
- planning projects such as a Project Evaluation Report, Integrated Water Resource Management Plan, or other MassDEP sanctioned planning document that serves to fulfill the MassDEP-approved required planning element.
Ineligible projects include:
- dams and reservoirs (except for the costs of dam and reservoir rehabilitation, owned by the public water system intended to provide a safe drinking water supply and improve public health consistent with the Safe Drinking Water Act);
- purchase of water rights;
- lab fees;
- fire protection projects; and
- other non-capital expenses.
Program Details
To be considered for SRF financing for a construction project, community public water suppliers (PWS) must complete a project evaluation form (PEF) during the annual project solicitation period (typically May through July). The PEF requires the applicant to provide the project's significant benefits to public health or drinking water quality, along with assurances that the project is ready to proceed. MassDEP will evaluate and rank the projects using an established rating system which assigns points based on various criteria. DWSRF PEF Construction Ranking System
These criteria include the extent to which the project:
- Eliminates or mitigates a risk to public health
- Achieves or maintains compliance with applicable drinking water quality requirements
- Provides affordable solutions to users in the service area
- Consolidates or restructures a public water system
Implements, or is consistent with, watershed management plans (or addresses a watershed priority) and is consistent with local and regional growth or infrastructure plans
Subsidy
The standard subsidy provided is a 2% interest rate loan. Communities that have achieved the “Housing Choice” designation under the Housing Choice Initiative will be eligible for an interest rate reduction up to .50% from the standard subsidy rate of 2%. PFAS Remediation or LSL Replacement Projects may be eligible for a 0% interest rate loan, subject to the availability of funds.
Cybersecurity
The SRF program encourages cybersecurity assessments through its Asset Management Planning Grant activities, as well as offers financing for cybersecurity related equipment and software. Public water suppliers and wastewater utilities are encouraged to participate in the SRF program by submitting a proposal during the annual project solicitation.
Cybersecurity is vital for public water systems and wastewater facilities. Cyber-attacks have been increasing and continue to place public health and the environment in jeopardy. EPA provides many resources for Drinking Water and Wastewater Utilities to evaluate, assess, and plan for improvements to their cybersecurity infrastructure. EPA Cybersecurity for the Water Sector | US EPA
MassDEP’s Drinking Water Program has developed a Cybersecurity Resource Hub for MA Public Water Systems (PWS) that provides information from assessments and funding opportunities to emergency response guidance.
Additional resources, including best practices, are available at the Cybersecurity and Infrastructure Security Agency (CISA).