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New Mexico
Environment Department
Drinking Water Bureau

Water Infrastructure Funding

Drinking Water State Revolving Loan Fund

Public water systems (PWS) can apply for funding to help them with new public water system construction or improvements to an existing public water system. The New Mexico Environment Department’s Drinking Water Bureau co-administers the Drinking Water State Revolving Loan Fund (DWSRLF) with the New Mexico Finance Authority.

This fund provides low-cost financial assistance to public water systems: to finance the cost of repair and replacement of drinking water infrastructure; to ensure compliance with drinking water regulations; and to protect drinking water quality and public health.

Terms

The DWSRLF offers low-interest, fixed-rate loans. Current interest rates are:

  • Public disadvantaged water system – 0%
  • Public non-disadvantaged water system – 2%
  • Private, non-profit water system – 3%
  • Private, for-profit water system – 4%

DWSRLF loans are typically for a term of 20 years following a two-year construction period.  Applicants can negotiate a shorter term or, alternately, NMFA may be able to extend the term up to 30 years for disadvantaged communities. Principal forgiveness may also be available, depending on determinations made by NMFA on a quarterly basis.  

 

Eligibility

Community water systems and non-profit non-community water systems are eligible to apply for DWSRLF funding.  Projects that protect drinking water quality and public health are eligible for the DWSRLF, including:

  • New and replacement water sources
  • Treatment
  • Transmission and distribution lines
  • Storage
  • Supervisory Control and Data Acquisition (SCADA) systems
  • Infrastructure to interconnect or regionalize water systems
  • Energy efficiency and water conservation projects

In addition to funding costs needed for project construction, the DWSRLF can also finance planning, design and associated pre-project costs, and land acquisition needed for locating project components.

 

How to apply

STEP ONE

Submit a Project Interest Form online at swim.water.web.env.nm.gov.

STEP TWO

Within 5 business days, DWB staff will contact you to request supplemental documentation. Instructions for submitting this documentation are outlined in our Project Interest Form Supplemental Document Checklist.

A Project Interest Form Supplemental Document Glossary is also available that describes each of the documents we are requesting and how we evaluate them.

All water systems that submit a Project Interest Form and supplemental documents will be placed on a Comprehensive Priority List.

STEP THREE

DWB and NMFA will review your Project Interest Form and supplemental documents to determine if you meet the following criteria:

  1. Capacity to maintain compliance with federal and state drinking water regulations 
  2. Completion of required project planning and environmental review by projected loan closing date
  3. Financial ability to repay a DWSRLF loan

If you meet these criteria, you will be placed on a Fundable Priority List. Projects on Comprehensive and Fundable Priority Lists are ranked according to DWSRLF PRIORITY (2018) RANKING CRITERIA. DWSRLF funding is allocated in the order projects are ranked.

If your system is not eligible for the Fundable Priority List, DWB will offer you assistance to meet the eligibility criteria and be included on a future list.

STEP FOUR

If your project is included on a Fundable Priority List, NMFA will invite you to submit a DWSRLF Application. The DWSRLF BORROWER GUIDE will assist you with the application process.

Deadlines

DWSRLF Project Interest Forms are accepted year-round. However, DWSRLF Priority Lists are generated on a tri-annual basis. Table 2 outlines the deadlines for each quarterly funding cycle. 

 

TABLE 2: Deadlines for DWSRLF Funding Cycles

Deadline
SFY18 Annual Priority List
Fall List Update
Spring List Update
SFY19 Annual Priority List
Project Interest Forms submitted by: Jan 16, 2017 Aug 1, 2017 Nov 1, 2017 Feb 1, 2018
Required supplemental documents submitted by: Feb 15, 2017 Sept 1, 2017 Nov 30, 2017 Mar 2, 2018
Draft Priority List Posted for Public Comment on: May 30, 2017 N/A N/A May 29, 2018
Final Priority Lists Published on: July 3, 2017 Nov 1, 2017 Mar 1, 2018 July 2, 2018

Current Comprehensive and Fundable Priority List

DWSRLF Comprehensive and Fundable Priority Lists identify projects that are expected to receive DWSRLF funding in the future.

All water systems that submit a Project Interest Form and supplemental documents are included on the Comprehensive Priority List. Projects that meet the following three criteria are included on the Fundable Priority List and are eligible to submit a DWSRLF application: 1) capacity to maintain compliance with federal and state drinking water regulations; 2) readiness to proceed with the project in a reasonable timeframe; and 3) financial ability to take on debt and repay the loan.

State Fiscal Year 18 Fall Comprehensive and Fundable Priority Lists

DWSRF Intended Use Plan

The State Fiscal Year 2018 DWSRF Intended Use Plan describes how New Mexico intends to use federal funds to support the overall goals of the Safe Drinking Water Act.

For more information about the Drinking Water State Revolving Loan Fund (terms, eligibility, application and award processes), contact the Drinking Water Bureau staff member that serves your area.

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Runnels Building
1190 St Francis Drive
Suite S-2050
Santa Fe, New Mexico 87505

Phone: (505) 476-8620
Or -----(877) 654-8720

P O Box 5469
Santa Fe, NM 87502

Harold L. Runnels Building // 1190 St. Francis Drive, Suite N4050 // Santa Fe, New Mexico 87505 // tel (800) 219-6157, (505) 827-2855

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