Overview
This program is designed to provide low-cost financing to assist communities to comply with the water-quality standards of the Clean Water Act.
The program’s goal is to support projects with meaningful water quality and public health benefits while addressing the needs of the communities and watersheds across the Commonwealth.
The program supports:
- Watershed management priorities
- Stormwater management
- Green infrastructure
- Treatment works and infrastructure
Eligible Projects
Communities can access financial assistance for the planning, engineering, and construction of wastewater infrastructure projects, such as construction of new wastewater treatment facilities, that protect public health and improve compliance with federal and state regulations. Clean Water SRF Eligible Project Costs
Eligible projects include:
- Combined Sewer Overflow (CSO) mitigation
- New wastewater treatment facilities and upgrades of existing facilities
- Infiltration/inflow correction
- Wastewater collection systems
- Nonpoint source pollution abatement projects, such as:
- Landfill capping
- Community programs for replacing failed septic systems (Title 5)
- Brownfield remediation
- Pollution prevention
- Stormwater management
In addition, non-structural projects are eligible for SRF funding, such as:
- Green infrastructure planning projects to address nonpoint source pollution consistent with MassDEP’s Nonpoint Source Management Plan and that identify pollution sources and evaluate potential remediation strategies.
- An enhanced loan subsidy is also available for certain wastewater nutrient reduction projects: Instructions for zero percent nutrient reduction projects.
- Planning projects to evaluate the cost and effectiveness of a construction project are also eligible for SRF funding. MassDEP expects that applicants will have evaluated the cost of their project, as well as the effectiveness of the solution, in the MassDEP-approved required planning element such as a Comprehensive Wastewater Management Plan or a Project Evaluation Report. These reports typically evaluate alternatives and compare their various life cycle costs. (A Cost and Effectiveness Certification form is required to be submitted with each construction Loan Application package.)
Program Details
To be considered for SRF financing for construction projects, communities must complete a Project Evaluation Form (PEF), during the annual project solicitation period (typically May through July). The PEF requires applicants to provide the project's significant benefits to public health or water quality, and 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. CWSRF PEF Construction Ranking System
These criteria include the extent to which the project:
- Has demonstrable water quality benefits
- Eliminates or mitigates a risk to public health or the environment
- Achieves or maintains compliance with water quality standards, applicable discharge permits, or water pollution control requirements
- Implements, or is consistent with, watershed management plans (or addresses a watershed priority), and local and regional growth or infrastructure plan
Subsidy
The standard subsidy provided is a 2% interest rate loan. PFAS Remediation Projects and Nutrient Pollution Reduction Projects that meet certain statutory requirements, may be eligible for 0% interest rate loans. 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%.
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).