The Nebraska Department of Environment and Energy (NDEE) distributes funds from two major revolving loan fund programs to help support the development of critical drinking water and wastewater infrastructure in communities across Nebraska.

These two programs — the Clean Water State Revolving Loan Fund (for wastewater treatment facilities) and the Drinking Water State Revolving Loan Fund — are commonly referred to as the SRF programs, and they provide below market interest loans, grants, and loan forgiveness to Nebraska communities for pursuit of qualifying projects.

The Clean Water SRF became active in 1988, while the Drinking Water SRF began in 1997. NDEE administers both programs. Earlier this year, NDEE distributed it’s one-billionth dollar through the program since its inception.

The programs are funded through a series of annual U.S. Environmental Protection Agency (EPA) Capitalization Grants, which require a 20 percent state match. As revolving funds, principal and interest repayments from existing projects are returned to the fund to help facilitate new projects. Administrative fees that are collected through the program are used to help offset the state’s annual 20 percent match.

In order to help identify eligible projects, NDEE sends a Clean Water SRF Needs Survey and a Drinking Water SRF Needs Survey biannually to every community in Nebraska. These surveys are sent out in the fall of every other year and are due back by December 31 of the same year. NDEE uses this information to develop an Intended Use Plan, which is a detailed prioritization of projects.

Filling out the needs surveys does not commit a community to undertake a project or apply for an SRF loan. Communities that are interested in pursuing an eligible project through the SRF programs, however, are encouraged to contact NDEE about submitting a joint water/wastewater pre-application. Nebraska communities may submit a pre-application at any time after a project is listed on the Intended Use Plan.

After a pre-application is submitted, NDEE will also work with communities to help identify possible alternative financing sources that may work in conjunction with the SRF programs.

Communities wishing to proceed with eligible projects must comply with planning requirements, submit an engineer’s report prepared by a professional engineer, and sign a loan contract and pledge a revenue source for repayment. Loans are then repaid at the rate that a community qualifies for under the interest rate system in the Intended Use Plan.

More information on State Revolving Loan Fund programs can be accessed on NDEE’s website at https://dee.nebraska.gov/aid/water-loans-grants-rebates.