Drinking Water State Revolving Fund (DWSRF) is sponsored by U.S. Environmental Protection Agency (EPA) / Virginia Department of Health. The DWSRF provides revolving loans to local governments and other entities for drinking water projects. This funding aims to improve drinking water quality for community residents and businesses.

Highland County could access this for upgrades to its drinking water infrastructure.

Drinking Water Funding Program Details & Application - Drinking Water On Saturday 8/16/2025, our dashboard provider will be performing system maintenance from 12:00PM – 10:00PM ET. Most of the VDH dashboards will be unavailable during these hours. We apologize for any inconvenience this may cause.

FCAP accepts applications on a year round basis. However, FCAP will only conduct one round of evaluations submitted by the deadline. Projects addressing eligible acute, chronic health/SDWA compliance or public health problems will be given higher priority over other projects.

Both construction and non-construction assistance are available. Interest rates from 3% to ceiling rate (1% below municipal bond market rates). Maximum term 20 years.

Lower rates and longer terms (up to 30 years) are considered for waterworks meeting disadvantaged criteria. Will be considered for waterworks meeting disadvantaged criteria. Non-Construction Assistance Planning and Design Funds Projects up to $45,000 to be awarded.

Applications accepted year-round. Funds are especially for small, disadvantaged community waterworks. The Application Deadline depends on the type of funding and method of delivery.

Electronic copies are preferred. Hard copies are optional . Please see the highlighted section below for more details.

Unless otherwise stated, all applications must be submitted by the deadline below to be included in the next round of funding offers.

The required Preliminary Engineering Conference must be held by July 7, 2026 (unless waived by the field office) If electronically submitted , the application must be received by August 7, 2026 If hand delivered , the application must be received by 5:00 PM on August 7, 2026 If sent by mail , the application must be postmarked by August 7, 2026 A Preliminary Engineering Conference is not a pre-requirement for the LEAP/BIL LSL application If electronically submitted , the application must be received by August 7, 2026 If hand delivered , the application must be received by 5:00 PM on August 7, 2026 If sent by mail , the application must be postmarked by August 7, 2026 Applications may be submitted year-round .

More information available on the Planning & Design Fund webpage. Please see below for application submittal options. Electronic copies are preferred.

We highly recommend that an electronic copy of the entire application, including all attachments, be submitted either via USB flash drive or by email. If submitting hard copies, only one printed copy of the application and attachments is required. Formats No Longer Accepted For Construction Applications: Please send to DWSRF.

applications@vdh. virginia. gov With the subject line FY27 Construction Application - City/County - Project Name Please send to LEAP.

applications@vdh. virginia.

gov With the subject line FY27 LEAP Application - City/County - Project Name If files are too large and exceed email file attachment limits, it is acceptable to send multiple emails with your application and attachments Alternatively, you may send a Google Drive link (or similar platform) to share access to your application documents Please note: Unfortunately, applications submitted via Dropbox can no longer be accepted.

VDH has blocked Dropbox due to the fact that it does not meet the Agency's security standards. Mail to our Central Office at the following address: Virginia Department of Health 109 Governor Street, 6th Floor Only one electronic copy is required.

Dropbox - VDH has blocked Dropbox due to the fact that it does not meet the Agency's security standards Electronic copies on CDs - we no longer have access to a disc drive to read these files Applications in bound booklet format - please use 3-ring binders with tabs instead for ease of scanning Where "bound booklet format" is defined as softcover/paperback or GBC/spiral binding We have implemented these recommendations and restrictions in order to streamline our process.

We thank you for your patience and understanding. Please contact us with any questions. Important Changes - New for FY2027 Approved Preliminary Engineering Report (PER) - The requirement to have an approved, or waived, Preliminary Engineering Report (PER) prior to submitting an application has returned to our program.

As such, please submit a copy of the PER and the letter from ODW approving it with the construction application. If the ODW Field Office does not require a PER, then the letter waiving this requirement should be submitted with application. Please work with your ODW Field Office on this.

The PER is not a pre-requirement for BIL-LSL/LEAP applications. However, a PER may be required or may be waived for LSL projects that receive a funding offer. Please check with your local ODW Field Office to confirm.

Preliminary Engineering Conference (PEC) – Since an approved, or waived, PER is required prior to submitting an application, please contact the ODW Field Office to see if a PEC is required for this project. Documentation of this PEC should be submitted with the construction application – whether this is documentation that a PEC isn’t required or PEC meeting minutes.

Please note that the PEC, if required, should be completed at least 30 days prior to the application deadline. There is no longer a requirement to have a Field Office Scope Review Meeting since the PEC, if required, will take its place. A PEC is not a pre-requirement for the LEAP/BIL LSL application.

Pre-Requirement for Applicants that have an Existing FCAP Managed Project - a Pre-Requirement was added to the “Application for Construction Funds” and the “Application for the Lead Elimination Assistance Program (LEAP)” in which the DWSRF Program may not fund new applications if the applicant is behind in achieving significant milestones on an existing FCAP funded project .

These milestones include having the loan closed within 2 years of receiving the original Award Letter from VDH and having the project 100 percent complete/closed out within 4 years of receiving the original Award Letter from VDH. We request that applicants focus efforts on completing open DWSRF projects that have already been awarded.

Additional information on this can be found on both the “Application for Construction Funds” and the “Application for the Lead Elimination Assistance Program (LEAP). ” Up-to-Date Annual Audits - a note was added to the “Application for Construction Funds” and the “Application for the Lead Elimination Assistance Program (LEAP)” in sections that pertain to the annual audits.

This note states that an applicant should have a completed financial audit with no significant findings for at least one of the last three years prior to the application deadline . It also states that if an applicant does not have this, then the applicant may not be eligible to apply for funding . If this is the case, then please contact VDH’s Capacity Development Team for additional information on this.

Please see the link for their contact information: Capacity Development - Drinking Water . For water systems that do have documented up-to-date financial audits, they will be awarded 4 points on the Project Selection Scorecard under the Readiness to Proceed Section. See the Program Design Manual for a copy of the Project Selection Scorecard.

Lead Service Line Replacement (LSLR) Projects – VDH does have BIL Lead funding from previous years available (in addition to reallocated funds from other states) for LSLR projects. There is no dollar limit that can be applied for pertaining to LSLR projects; however, the amount applied for needs to be supported with a budget.

If the project has documented lead service lines that need to be replaced , then the LSLR project is eligible, and if additional work and associated expenses are needed to finalize the LSL inventory then these costs are also eligible.

If an applicant has a current awarded project from VDH for an LSLR project, then a budget must be provided to document that additional funds to replace LSLs, in addition to the current award amount , are still needed. Please note that LSL inventory only projects are still NOT eligible.

Design Build or Oher Alternative Delivery Methods - due to current staff workload, the DWSRF Program cannot accommodate Design Build or alternative project delivery methods this funding cycle . The DWSRF Program will only be funding traditional Design-Bid-Build construction projects this funding cycle.

Disadvantaged Criteria – t he DWSRF Program added back the following Disadvantaged Criteria: Have a customer demographic where the median household income (MHI) is 80% or less than the state MHI (using US Census Data). VDH is using the US Census Data (in 2024 dollars), and the MHI for Virginia is $93,170. 80% of this MHI is $74,536.

As such, if the MHI in the project area that benefits from the proposed project is equal to or less than $74,536, then the project will be considered Disadvantaged. Note that VDH will continue to use the US Census Data in the previous bullet point, even if the data is updated prior to the August 7, 2026, deadline.

As such, this funding cycle, a project application may be considered Disadvantaged based on MHI (see bullet points above) or water rates. To be considered Disadvantaged based on water rates the average monthly residential water user rate must equal to or exceed the target water rate. The target water rate is equal to 1 percent (1%) times the MHI.

Then, this figure is divided by 12 to make it a monthly target water rate. See the Program Design Manual for more information on Disadvantaged Criteria. Reminders From Previous Years Build America, Buy America (BABA) – BABA requirements are still in effect for BIL projects and DWSRF equivalent projects.

Depending on the project, waivers may be available and will be evaluated on a case-by-case basis. For more information on BABA, please see the EPA’s webpages - https://www. epa.

gov/baba . Please view the contents below for detailed guidance for additional information on our funding program and filling out applications. Funding Announcement Letter View the manuals below for the Drinking Water State Revolving Fund (DWSRF) Program and the Water Supply Assistance Grant (WSAG) Fund Program.

The DWSRF Program Design Manual provides very detailed information on the background of the program, eligibility, and types of financial assistance. We strongly recommend viewing the DWSRF Program Design Manual first prior to filling out Applications. DWSRF Program Design Manual A virtual presentation with detailed information for the FY2027 application cycle is planned to be held in May 2026.

Details will be updated when available. The Virginia Department of Health (VDH) is pleased to announce several opportunities for funding drinking water infrastructure. ALL applications may be submitted year-round; however, VDH will conduct one round of evaluations submitted by the deadlines described below.

Applications postmarked/received after the due date will be considered for funding in the following round.

Funding is possible through the Drinking Water State Revolving Fund (DWSRF) Program, the Bipartisan Infrastructure Law (BIL) – Lead Service Line funding only, Emerging Contaminants for Small or Disadvantaged Communities (EC-SDC) Grant Program, Water Supply Assistance Grant Fund (WSAG) Program ( if funds are available ), and Virginia General Assembly funding for Grants for Drinking Water Projects as outlined in the Virginia State Budget ( if applicable ).

Please note that projects that address emerging contaminants in drinking water will be evaluated under both the Drinking Water State Revolving Fund (DWSRF) Program, and the Emerging Contaminants in Small or Disadvantaged Communities (EC-SDC) Grant Program unless you specify one or the other only on the Application for Construction Funds.

Information on the EC-SDC program is available at: The Emerging Contaminants in Small or Disadvantaged Communities (EC-SDC) grant program - Drinking Water . FY27 Funding Announcement Letter The VDH’s DWSRF Program Design Manual describes the features of the above opportunities for funding. After receiving the aforementioned public input, VDH will develop an Intended Use Plan (IUP) for public review and comment.

When developed, the IUP will describe specific details for use of the funds. A public meeting is planned and written comments will be accepted before submittal of a final version to the USEPA for approval. Applications, set-aside suggestion forms, Program Design Manuals, and information materials are available on our website: https://www.

vdh. virginia. gov/drinking-water/fcap/drinking-water-funding-program/ Please direct any comments to: Anthony Hess, DWSRF Director Anthony.

Hess@vdh. virginia. gov VDH - Office of Drinking Water 109 Governor St, 6th Floor, With the passage of the Bipartisan Infrastructure Law (BIL) and the renewed emphasis on Infrastructure, new Scorecards were developed for FY2024.

Prior to this, the Financial and Construction Assistance Program (FCAP) last revised Scorecards in April 2019. The 2019 Construction Scorecard did not address many of the infrastructure issues that have come to the forefront with BIL.

The FY2024 revised project Scorecard included additional points for the replacement of lead jointed cast iron pipe, the replacement of asbestos cement pipe, and the installation of emergency electric power generators, among other changes. For FY2027, the Scorecard was revised in the section titled “Readiness to Proceed.

” In this section, the line item titled “PER, letter report, or design memo has been submitted, approved, or waived” was removed since this is now a pre-requirement. A line item titled “Up-to-Date Financial Audits” was added to this section. And, to place more emphasis on Readiness to Proceed, additional points were added to other categories, so the overall possible points in this category increased from 7 points to 14 points.

The FY2027 Scorecard and other supporting documentation have also been updated for compliance with the Americans with Disabilities Act. The Lead Elimination Assistance Program (LEAP) Scorecard was updated in FY2023 to expand eligibility criteria for vulnerable populations by adding the Poverty Indicator and Pre-K Enrollment Indicator from the VDH Youth Well-Being Index .

The LEAP Scorecard expands eligibility criteria for young children who are most vulnerable to exposure from lead in drinking water; adding a “Readiness to Proceed” section to prioritize projects that are ready to move forward now; and adding bonus points for Lead Service Line (LSL) Replacement Projects to separate them from the LSL Inventory projects. Removal of LSLs reduces risks to public health.

The FY2027 Scorecard and other supporting documentation have been updated for compliance with the Americans with Disabilities Act. The FY2027 scorecards will be posted for a 30-day public comment period. FY27 Construction Scorecard Application Forms & Instructions Please view the Funding Announcement Letter for additional details on the application period for this fiscal year.

Please also note that there is no separate application for WSAG funds. You may use the Application for Construction Funds form below to submit an application to either the DWSRF program or the WSAG program, and FCAP will determine the source of the funding. Click on the bars below to expand each section.

Construction Funds Application & Information Applicants for Construction Funds should apply for all infrastructure projects they are considering over the next four or five year period. Emerging Contaminants for Small and Disadvantaged Communities (EC-SDC) projects will use this Construction Application. VDH is in a position to fund large capital improvement projects.

Please note that very large projects may need to be phased. Construction loan funds are disbursed on a cost reimbursement basis. All requests for disbursement of loan funds must be substantiated by invoices reviewed and approved by the owner.

VDH will review and approve such requests prior to the actual disbursement of funds. All submittals for disbursement are to be made in accordance with the latest version of VDH's Procedural Guidelines .

Construction Application Instructions Construction Application (PDF) Construction Application (Word) Lead Elimination Assistance Program (LEAP) Application & Information In an effort to accelerate the removal of lead in drinking water, the DWSRF Program has made funding available for the complete removal of the public and/or private portions of lead service lines (LSLs).

From FY2022 through FY2026, the Lead Elimination Assistance Program (LEAP) will be supplemented by additional funding through the Bipartisan Infrastructure Law - Lead Service Line (BIL-LSL) funds. These sources of funding will cover pipe entry into the structure (up to the shut off valve) but excludes the premise plumbing. To learn more about the Lead Elimination Assistance Program (LEAP) , please click on the link.

LEAP Application Instructions Note : If the scope of your potential project will include other construction work in addition to LSL work, you will be required to submit a separate Construction Funds Application in addition to the LEAP Application. Please see the Construction Funds Application & Information section above for more details.

Planning & Design Fund Application & Information The 1996 Amendments of the Safe Drinking Water Act (SDWA) encourages States to provide technical assistance to waterworks.

To meet these requirements, the Virginia Department of Health (VDH) Office of Drinking Water (ODW) created the Planning & Design Fund Program to provide financial assistance for eligible projects at community and nonprofit, non-transient non-community (NTNC) waterworks. VDH will consider up to three applications from a waterworks owner in each funding year.

However, due to the demand for the Program and limited funds for projects, offers will be limited to a maximum of two grants, of not more than $45,000 each, per eligible waterworks owner per funding year.

Multiple applications from one owner must be for different areas of a waterworks’ infrastructure (e.g. source, treatment, distribution, security, etc.) or for a completely different waterworks (i.e., a waterworks with a different PWSID #). VDH reserves the right to fund a project received at any time during the year, or to by-pass any project for lack of progress at any time.

VDH also reserves the right to decide if funding is contingent upon adjusting water rates and/or requiring savings for financial reserves. Funding is not contingent on receiving a local match. P&D Application Instructions Please note that applications are accepted year-round.

Refer to the application packet for submittal instructions For more information please contact: Director - Training, Capacity Development and Outreach Jarrett. Talley@vdh. virginia.

gov Refinancing Loan or Purchasing Application & Information If approved, the refinance will be for the same final maturity up to a 20 year loan at the core term interest which is set at closing but has historically been around 1. 5 to 2. 4%.

VDH reserves the right to offer a 30 year if the waterworks meets certain disadvantaged criteria. The Safe Drinking Water Act allows the DWSRF to provide for extended term loans to disadvantaged communities provided that the loan terminates no later than the date that is 30 years after the date of the project completion and does not exceed the expected design life of the project.

VDH reserves the right to provide special offer terms to consolidate failing waterworks to improve reliability.

Refinancing Loan or Purchasing Application (PDF) Refinancing Loan or Purchasing Application (Word) 1452K Source Water Protection Initiative Application & Information Source water protection, as defined by the EPA , involves managing potential sources of contaminants and preventing pollutants from reaching sources of drinking water, which is often more efficient and cost-effective than treating drinking water later.

Loan funds are available to: (1) Community and non-profit noncommunity waterworks to acquire land/conservation easements, and (2) Community waterworks, only to establish local voluntary incentive-based protection measures. Learn more about VDH's Source Water Protection Program by clicking on the link.

1452K Source Water Protection Initiative Application (PDF) 1452K Source Water Protection Initiative Application (Word) Set-Aside Application Form Please use the form below to submit Public Comments and/or Set-Aside Suggestions . Please submit one form for each Set-Aside Suggestion by the closing date. Attach additional pages if necessary.

For suggestions or projects not funded, VDH reserves the right to reconsider funding the above project if funds become available. For additional information, please contact Jarrett. Talley@vdh.

virginia. gov / (804) 317-0140 or Julie. Floyd@vdh.

virginia. gov / (540) 460-9348. Construction Project Schedule Fact Sheet MBE/WBE Requirements Certification Regarding Lobbying Building Financial Sustainability Unique Entity ID (UEI) Resources