Clean Water Revolving Fund

The Clean Water Revolving Fund (also called the Clean Water State Revolving Fund) helps communities build or upgrade wastewater treatment plants to comply with discharge standards in the federal Clean Water Act.

Administered jointly by the Minnesota Public Facilities Authority (PFA) and the Minnesota Pollution Control Agency, the fund provides below-market-rate loans to finance the wastewater treatment projects.



Cities, counties, townships, sanitary districts or other governmental subdivisions responsible for wastewater treatment are eligible.

Project Requirements
Projects must be included on the Minnesota Pollution Control Agency s Project Priority List and the PFA s Intended Use Plan. Projects must be certified by the MPCA before the PFA may approve a loan.

Applicants must demonstrate the financial capacity to repay the loan and that complete financing of the project is in place. Borrowers must issue a general obligation bond to the PFA as security for the loan.

Allowable Costs
Allowable costs include site preparation, construction, engineering, equipment and machinery, bond issuance, and certain fees and contingency costs. Land costs are not allowable.

Interest Rates
Rates are determined by a market rate index (market scale) or the PFA s bond market rate (Authority scale), which ever is higher, less a 1.50 percent discount approved by the PFA. Borrowers with a service area population under 2,500 may be entitled to additional discounts. The type of security pledged to the PFA, the loan term and principal schedule, and the presence of a significant user will affect the interest rate of the loan.

Loans are amortized up to a maximum of 20 years, or up to 30 years if the average annual residential cost would exceed 1.4 percent of median household income. Also see Wastewater Infrastructure Fund for possible eligibility for grant assistance.

Applications are accepted within six months after the intended use plan is approved using the PFA's loan application forms. The IUP is compiled once a year but may be amended.

Loan Disbursement
Funds are disbursed on a monthly basis as costs are incurred

Intended Use Plan

The Intended Use Plan (IUP) identifies projects and activities that the PFA intends to fund from the Clean Water Revolving Fund (CWRF) during the state fiscal year, which runs July 1 to June 30.

Clean Water Revolving Fund Documents

Contract Packet

The Contract Packet lists required contract conditions that apply to all Clean Water and Drinking Water Revolving Fund projects. It contains forms that must be used in the procurement process. This packet must be included in all bidding and contract documents.

Links to Contract Packet Documents