Drinking Water State Revolving Fund (DWSRF)

The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, provides $15 billion nationwide funding through the DWSRF for lead service line (LSL) identification and replacement for over the next five (5) years. California received $250 million in FY 2022, and future allotments are expected in future years. Funding is available to community water systems and nonprofit noncommunity systems to complete LSL inventory and replacement. The IUP and the LSL Replacement Funding Supplemental IUP provide guidelines and funding criteria and will be updated annually. Read more about the Bipartisan Infrastructure Law and LSL Replacement Funding Program.

Is your project eligible for DWSRF?

DWSRF can finance publicly owned community water systems (e.g., counties, cities, districts), privately-owned community water systems (e.g., for-profit water utilities, non-profit mutual water companies), non-profit or publicly-owned non-community water systems (e.g., public school districts), and community water systems created by the project. Eligible project types include treatment systems, distribution systems, interconnections, consolidations, pipeline extensions, water sources, water meters, and water storage. The interest rate is half of the most recent General Obligation Bond rate, and the most common construction financing term is 30 years. Read more about DWSRF eligibility and financing terms.

Does DWSRF offer grants?

Grants or principal forgiveness may be available for projects benefitting a small disadvantaged community (DAC), small severely disadvantaged community (SDAC), expanded small DAC/SDAC, or small non-disadvantaged communities with median household incomes (MHIs) less than 150% of the statewide MHI. More details on grant eligibility can be found in the annual IUP. Visit the Office of Sustainable Water Solutions for more information on the different grant programs, including but not limited to, interim/emergency solutions, technical assistance, administrators, domestic wells/state smalls, etc.

What’s the interest rate on DWSRF loans?

Our interest rate is half of the most recent General Obligation Bond rate. For recent interest rates, see DWSRF interest rate history.

What’s the Median Household Income (MHI)?

State Water Board Drinking Water and Wastewater Programs utilize the American Community Survey 5-Year Estimates to determine Median Household Income data.

Are there other funding options for water projects?

The State Water Board offers funding for a variety of water projects, including the Clean Water State Revolving Fund to help finance wastewater and sewer projects. Want to see all the funding program we offer? Check out the Division of Financial Assistance webpage for all our funding programs.

Outside of the State Water Board, U.S. EPA offers a Financing Alternatives Comparison Tool for wastewater or drinking water projects and the California Financing Coordinating Committee has additional information on available state and federal funding.