New Mexico
Environment Department

Contact Information:
(505) 827-2855 MAIN // 1-800-219-6157 (toll free)
Environmental Emergencies:
505-827-9329 (24 hrs)

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.

DWSRLF- Advantages

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

  • Public disadvantaged water system – 0%
  • Public non-disadvantaged water system – 1%
  • Private, non-profit water system – 3%
  • Private, for-profit water system – 4%

DWSRLF loans are for up to 30 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 subsidy may also be available to reduce the cost of your project. Subsidy amounts range from 25% for publicly-owned water systems and up to 75% of the project cost for qualifying severely disadvantaged systems, depending on project ranking and EPA terms and funding.

A DWSRLF award can be used to meet matching requirements for Water Trust Board and other state funding sources.      

We have dedicated assistance with applying and qualifying for funding through the Sustainable Water Infrastructure Group  Community Services Team. View the Community Services Map to find the coordinator that serves your area.      


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 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. For more information on eligible projects please see the EPA DWSRF Eligibility Handbook.

How to Apply


Submit a Project Interest Form online at


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.


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 SFY20 DWSRLF PROJECT 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 free assistance to meet the eligibility criteria and be included on a future list.


If your project is included on a Fundable Priority List, NMFA will invite you to submit a DWSRLF Application. Go to WWW.NMFA.NET for more information.


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. 


 Deadlines for DWSRLF Funding Cycles

SFY20 Annual Priority List
Fall List Update
Spring List Update
SFY21 Annual Priority List
Project Interest Forms submitted by: Feb 1, 2019 Aug 1, 2019 Nov 1, 2019 Feb 3, 2020
Required supplemental documents submitted by: Mar 4, 2019 Sept 2, 2019 Dec 2, 2019 Mar 4, 2020
Draft Priority List Posted for Public Comment on: May 15, 2019     May 29, 2020
Final Priority Lists Published on: July 2, 2019 Oct 1, 2019 Mar 2, 2020 July 1, 2020


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 time frame; and 3) financial ability to take on debt and repay the loan.

Fiscal Year 20 Fall Comprehensive and Fundable Priority Lists

FY20 DWSRF Intended Use Plan

The State Fiscal Year 2020 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 Community Services Team Member that serves your area.


DWSRF SFY20 IUP Public Involvement Plan (PIP)

The purpose of this PIP is to provide information about opportunities to participate in the public comment period for the Drinking Water State Revolving Fund State Fiscal Year 2020 Intended Use Plan (“DWSRF SFY20 IUP”). The PIP integrates information about the affected communities and identifies resources needed by the Bureau to incorporate community participation activities into the decision-making process for the public comment period for the DWSRF SFY20 IUP. The PIP identifies the Department staff and resources needed to accomplish these activities.

Click the following link to view or download the DWSRF SFY20 IUP Public Involvement Plan


DWSRF SFY20 IUP Limited English Proficiency (LEP) Evaluation

The purpose of the LEP Evaluation is to provide guidance and direction for the Bureau on providing meaningful access and opportunities for public participation during the public comment period for the DWSRF SFY20 IUP for persons and populations in New Mexico who are, or who may be identified as, Limited-English Proficient (“LEP”).

To determine the extent to which LEP services are necessary an individualized assessment is performed as described in the LEP evaluation.

 Click the following link to view or download the DWSRF SFY20 IUP LEP Evaluation.