Maine Municipal Construction Grant Program and
Clean Water State Revolving Loan Fund
State Municipal Construction Grant Program
State law gives the DEP flexibility, through the Construction Grant Program, to use bond issue funds with other sources of funding to provide affordable financing of municipal and quasi-municipal wastewater facilities. In 1985 the Board of Environmental Protection adopted a policy to use 2% of the Median Household Income (MHI) as a not to exceed goal for a single family dwelling's annual sewer user charge. When possible, the DEP combines grant funds, CWSRF loan funds, and other sources of funds such as loans and grants from Rural Development loans and the Economic Development Administration, and Community Development Block Grants to keep user charges below this threshold.
State grant participation is limited to 80% of the project costs for wastewater treatment facilities, interceptor systems and outfalls. The word expense does not include costs relating to land acquisition or debt service, unless allowed under federal statutes and regulations. The commissioner is also authorized to grant an amount not to exceed 25% of the costs for preliminary planning or design of a pollution abatement program.
Clean Water State Revolving Loan Fund (CWSRF or SRF)
The CWSRF provides low interest loans to municipalities and quasi-municipal corporations, i.e. sanitary districts, for construction of wastewater facilities. The CWSRF is funded by a combination of federal capitalization grants, state matching funds equal to 20% of the federal grant, and loan repayment funds. The Maine Municipal Bond Bank (MMBB) is the financial manager of the CWSRF program. The MMBB combines federal, state, and repayment funds to create attractive interest rates, 2% below the market rate, for terms up to 20 years.
The DEP Division of Water Quality Management (DWQM) administers the technical aspects of the program and the projects funded by it. The primary purpose of the fund is to acquire, plan, design, construct, enlarge, repair and/or improve publicly-owned sewage collection systems, intercepting sewers, pumping stations, and wastewater treatment plants. The long term goal of the CWSRF is to establish a self-sufficient loan program that will maintain and improve Maine 's inventory of municipal sewage facilities in perpetuity. This will ensure preservation of the water quality gains that were realized by the initial construction of them. Where allowed by Federal law and State statues, the CWSRF also funds certain nonpoint source (NPS) controls.
Federal Fiscal Year (FFY) 2012 Clean Water State Revolving Fund
In late February 2012 the Department notified municipal discharges, non-point source controls and consulting engineers of the FFY 2012 funding available for wastewater infrastructure and abatement projects and requested that they submit a listing of any projects to be considered for funding. FFY 2012 is the third year that federal law requires that additional subsidizes be offered in the regular CWSRF program. The law requires Maine’s CWSRF program to provide borrowers with a minimum of $608,006 and maximum of $912,008. Maine’s CWSRF will offer the maximum amount to borrowers in the form of loan principal forgiveness. Congress and EPA encourage States to target this subsidy for public health and water quality protection projects to communities that could otherwise not afford an SRF loan. In addition, green infrastructure, water or energy efficiency improvements and sustainable infrastructure through implementation of asset management plans are also a priority to EPA. This necessitates the ranking of the projects to determine which ones will receive a portion of the limited principal forgiveness. An explanation of how principal forgiveness was allocated in 2012 is included in the priority system section of the Final Intended Use Plan (IUP) for FFY 2012.
Using the FFY 2012 ranking criteria the Department reviewed information submitted on the proposed projects and developed a draft list of projects for proposed funding through the CWSRF. Loan offers were made to fund the proposed projects on the draft list. Not all loan offers were accepted and any remaining principal forgiveness was redistributed to remaining applicants in accordance with the procedures outlined in the Final IUP. In partnership with the Maine Municipal Bond Bank, the Department is proposing to distribute this money to eligible projects in funding packages consisting of loan principal forgiveness and low interest loans.
In compliance with the requirement in the CWA sec. 606(c) to provide for public review and comment, on May 1, 2012 the Department posted the Intended Use Plan in draft form. No comments were received and the Final Intended Use Plan was posted on May 24, 2012. Posted below is an Amended Intended Use Plan for public comment. The Department also provided notice of the availability of this Amended IUP to all organizations and individuals in its distribution list by email and/or letter on August 16, 2012.
FFY 2012 Documents
- Amended Intended Use Plan (IUP) for Federal Fiscal Year 2012 August 2012
- Final Intended Use Plan (IUP) for Federal Fiscal Year 2012 May 2012
- Draft Intended Use Plan (IUP) for Federal Fiscal Year 2012 April 2012
- Minimum Requirements for an Asset Management Program and Reserve Account in Order to Qualify for CWSRF Principal Forgiveness
- Model Energy Audit Request For Proposals
John True Engineering Services Manager (207) 287-7808
Division of Water Quality Management
17 State House Station
Augusta , ME 04333-0017
Prior Year Documents
- Intended Use Plan (IUP) for FFY 2011
- Intended Use Plan (IUP) for FFY 2010
- CWSRF Annual Report for State FY 2012
- CWSRF Annual Report for State FY 2011
- CWSRF Annual Report for State FY 2010
Chapter 595, State Revolving Fund, Contains requirements pertaining to the SRF program.
38 MRSA §411, State Contribution To Pollution Abatement (off-site)
38 MRSA §412, Grants By State For Planning (off-site)
30-A MRSA §5953-A, Loans From Revolving Loan Fund (off-site)
30-A MRSA §6006-A, Revolving Loan Fund (off-site)
- CWSRF Program Handbook, Reference to loan applicants on the CWSRF program.
- CWSRF Payment Request Form
- CWSRF Payment Request Summary Sheets
- Information on the SRF from the Maine Municipal Bond Bank (applications) (off-site)