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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.

DWSRLF- Advantages

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 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.

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 SFY19 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. The DWSRLF BORROWER GUIDE will assist you with the application process.


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

SFY19 Annual Priority List
Fall List Update
Spring List Update
SFY20 Annual Priority List
Project Interest Forms submitted by: Feb 1, 2018 Aug 1, 2018 Nov 1, 2018 Feb 1, 2019
Required supplemental documents submitted by: Mar 2, 2018 Sept 4, 2018 Nov 30, 2018 Mar 4, 2019
Draft Priority List Posted for Public Comment on: May 30, 2018     May 30, 2019
Final Priority Lists Published on: July 2, 2018 Oct 1, 2018 Mar 1, 2019 July 2, 2019

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.

State Fiscal Year 19 Fall Comprehensive and Fundable Priority Lists

FY19 DWSRF Intended Use Plan

The State Fiscal Year 2019 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.

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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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