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Loans to community and nonprofit non-community water systems

Drinking Water State Revolving Fund

The Drinking Water State Revolving Fund (DWSRF) provides low-cost loans to community and nonprofit non-community water systems for planning, design and construction of drinking water infrastructure improvements per Section 1452 of the Safe Drinking Water Act (SDWA) Amendments of 1996. In Oregon, the DWSRF loan program is funded through the Safe Drinking Water Revolving Loan Fund (SDWRLF) which is administered by Business Oregon. 

Funds may also be available for drinking water source protection efforts. 

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Funding Opportunities

Water System Infrastructure Projects
The Safe Drinking Water Revolving Loan Fund provides funding for planning, design, and construction of drinking water infrastructure improvements, including repair or replacement of existing infrastructure.

Sustainable Infrastructure Planning Projects (SIPP)
The sustainable infrastructure planning program funds water system planning and related activities that promote sustainable water infrastructure.

Small System Equipment Assistance (SSEA)
The Small System Equipment Assistance program funds small scale additions or replacement of equipment and instrumentation needed by small water systems serving ≤ 300 connections to ensure continued operation and protection of public health.

Drinking Water Source Protection Projects (DWSPF) 
The drinking water source protection fund provides loan and grant funds for eligible drinking water source protection projects.

Water Infrastructure Finance and Innovation Act (WIFIA)
In addition to the SRF funding available from Oregon's partnership with EPA, EPA also has a water infrastructure financing program called WIFIA. WIFIA loans can fund similar project eligibilities as the DWSRF programs, but can reach a broader spectrum of borrowers, as well as fund significantly larger projects. In some cases, loans from the SDWRLF can be used as required match fudning for WIFIA funding. 

Eligible Water Systems

The following types of drinking water systems are eligible to apply for funding:

  • Publicly and privately owned community systems (e.g., cities, towns, mobile home parks, ports)
    • 25+ users or 15+ service connections by year-round residents.
  • Publicly and privately owned non-profit non-community systems (e.g., schools, parks, campgrounds, churches)
    • 25+ users served to non-residents throughout a year. The non-profit entity can be government owned or is recognized under Oregon law as a non-profit organization.
  • Community water systems created by the project.

For more information regarding eligibility and program details, see the Safe Drinking Water Program Guidelines and Handbook.


Each federal fiscal year, the U. S. Environmental Protection Agency (EPA) uses a federal grant application process to make funds available to states for the DWSRF. Oregon's grant request process begins by identifying and collecting information about current Oregon drinking water system project improvement needs statewide.

The 2015 Drinking Water Infrastructure Needs Survey and Assessment (DWNS) illustrates these detailed needs from national and individual state perspectives. You can find the DWNS report here

To apply for funding, drinking water systems submit information about their proposed drinking water projects in a SDWRLF Letter of Interest (LOI). The LOI is used to gather detailed information about a proposed drinking water project including information about the water supply, water quality problem(s), water system's finances, readiness-to-proceed, proposed solution,  and estimated cost.

The state reviews and prioritizes the funding requests, creating a Project Priority List (PPL). The PPL is included in the State's Intended Use Plan (IUP), which is provided each year to EPA for approval. The IUP demonstrates how Oregon intends to use its appropriated grant award. Once EPA has reviewed and approved the IUP, the federal funds may then begin to be released.

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