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Proposition 4 – Water Recycling is sponsored by State Water Resources Control Board. The purpose of the funding is to provide technical and financial assistance to local agencies for the construction of water recycling projects that promote the beneficial use of treated municipal wastewater in order to augment fresh water supplies in California.
Eligible Applicants: Local public agencies, 501(c)(3) nonprofit organizations qualified to do business in California, Public Utilities, Federally and non-federally recognized Native American tribes on the Native American Heritage Commission’s list, and Mutual water companies.
Eligible Uses: Eligible projects include recycled water treatment; recycled water storage, distribution, and pumping; groundwater recharge; indirect potable reuse; surface water augmentation; and large scale recycled water projects. Ineligible Uses: Operation and maintenance costs.
Eligible Costs: Construction Grant Funding - Construction costs only Construction Grant Funding - Large Scale Recycled Water Projects - Planning, Design, and Construction. Eligible Communities: All community types are eligible for funding. This includes small and large communities, non-disadvantaged, disadvantaged, and severely disadvantaged communities.
For more information, please review the Water Recycling Funding Program (WRFP) Guidelines: https://www. waterboards. ca.
gov/water_issues/programs/grants_loans/docs/wrfp_guidelines. pdf
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# CLEAN WATER STATE REVOLVING FUND # DRAFT INTENDED USE PLAN # STATE FISCAL YEAR 2026-27 # (FEDERAL FISCAL YEAR 2026 BASE PROGRAM CAPITALIZATION GRANT AND GENERAL SUPPLEMENTAL CAPITALIZATION GRANT) # WITH SUPPLEMENTAL INTENDED USE PLAN # (FEDERAL FISCAL YEAR 2026 EMERGING CONTAMINANTS CAPITALIZATION GRANT) # The Water Quality, Supply, and Infrastructure Improvement Act of 2014 # The California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 (Proposition 68) # California Budget Act of 2024 and Budget Act of 2025 Appropriations # Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4) > STATE WATER RESOURCES CONTROL BOARD | DIVISION OF FINANCIAL ASSISTANCE > 1001 I Street | Sacramento, CA 95814 | www.
waterboards. ca. gov EXECUTIVE SUMMARY ................................................................................................
1 A. Notable Changes .................................................................................................. 1 B.
Recent Financing Activities .................................................................................. 2 C. Funding Program Outlook ....................................................................................
2 I. INTRODUCTION .................................................................................................. 5 A.
Authority ............................................................................................................... 6 B. Past Achievements ...............................................................................................
7 C. Connections to Other Plans, Goals, and Programs .............................................. 7 D.
Federal and State Water Board Guidance .......................................................... 10 E. Supplementary Definitions ..................................................................................
11 F. Water Quality Financing Needs .......................................................................... 12 II.
CWSRF Funding Sources & Federal Appropriations .................................... 13 A. CWSRF Base Program and General Supplemental ...........................................
13 B. CWSRF Emerging Contaminants ....................................................................... 13 C.
CWSRF Principal Forgiveness (PF) ................................................................... 14 III. General Funding Process ................................................................................
16 IV. CWSRF Loan Program ..................................................................................... 23 A.
Eligibility ............................................................................................................. 23 B. Recent Financing Activity ...................................................................................
23 C. Financial Outlook ................................................................................................ 23 D.
Project Scoring and Evaluation of Potential Cut-Off Scores ............................... 25 E. Future Financing Trends ....................................................................................
29 F. Revenue Bonds Sales & Disbursement Priorities ............................................... 30 G.
CWSRF Loan Provisions .................................................................................... 31 V. Small Community Wastewater (SCWW) Funding ..........................................
34 A. SCWW Projections, Eligibility Criteria, and Procedures ..................................... 34 B.
Recent Financing Activities ................................................................................ 45 C. SCWW Technical Assistance .............................................................................
45 D. Regionalization Incentives .................................................................................. 46 VI.
Water Recycling Funding Program (WRFP) ................................................... 49 A. Eligibility and Grant Maximum ............................................................................
49 B. Recent Financing Activities ................................................................................ 51 June 26, 2025 C.
Funding Sources & Financial Outlook ................................................................ 51 VII. Stormwater, estuary, and public health projects ...........................................
53 A. Eligibility and Funding Maximum Amounts ......................................................... 53 B.
Funding Sources & Financial Outlook ................................................................ 54 VIII. Groundwater Grant Program (GWGP) ............................................................
57 A. Eligibility ............................................................................................................. 57 B.
Funding Source & Financial Outlook .................................................................. 57 IX. CWSRF Resources and Workload ..................................................................
58 A. Organization, Program Resources, and Skills .................................................... 58 X.
Risks & Oversight............................................................................................. 62 XI. Fund allowances for administration ...............................................................
65 A. Administration Allowance ................................................................................... 65 B.
Technical Assistance Allowance......................................................................... 66 XII. Financing and Programmatic Requirements .................................................
67 A. State Cross-Cutters ............................................................................................ 68 B.
Federal Cross-Cutters ........................................................................................ 68 C. Capitalization Grant Conditions and Other Federal Requirements .....................
71 D. Payment and Draw Schedules ........................................................................... 71 E.
State Match and Cash Draw Ratio ..................................................................... 71 F. Other State Requirements ..................................................................................
72 G. Timely and Expeditious Expenditure .................................................................. 72 H.
Cross-Collateralization ....................................................................................... 72 XIII. OUTCOMES, GOALS, ACTIVITIES, AND MEASURES ...................................
73 A. Sound Finances.................................................................................................. 73 B.
Fund the Most Beneficial Projects ...................................................................... 74 C. Efficient Service, Up-to-Date Policies and Procedures, and Recognizable Products .............................................................................................................
75 D. CWSRF Performance Metrics ............................................................................ 76 XIV.
SCHEDULE ........................................................................................................ 78 XV. ACRONYMS.......................................................................................................
79 APPENDIX A: CWSRF Project Financing Forecast for SFY 2026-27 – Fundable List: ........................................................................................................................... 80 APPENDIX B: CWSRF Project Financing Forecast for SFY 2026-27 – Comprehensive List ............................................................................................
81 APPENDIX C: Current Sources and Uses of the CWSRF .......................................... 82 June 26, 2025 APPENDIX D: Administration Fund Balance .............................................................. 83 APPENDIX E: CWSRF Capitalization Grant Payments and Draw Payments .............
84 APPENDIX F: Supplemental IUP for Emerging Contaminants and PFAS Funding .... 86 APPENDIX G: Congressionally Directed Spending for CWSRF ................................ .
87 APPENDIX H: Environmental Review ........................................................................ 93 E-1 June 26, 2025 California’s Clean Water State Revolving Fund (CWSRF) program has been financing projects that help protect and improve water quality since 1989.
Division of Financial Assistance (DFA) staff prepared this Intended Use Plan (IUP) which describes the State Water Resources Control Board’s (State Water Board) plan for implementing the CWSRF and its complementary financing programs for State Fiscal Year (SFY) 2026-27. This Executive Summary provides a condensed overview of highlights and notable changes for SFY 2026-27.
The SFY 2026-27 CWSRF IUP is substantially similar to last year’s CWSRF IUP. This IUP contains 2026 federal allotments. State Water Board staff continue to evaluate a range of funding scenarios and monitor cashflow to ensure program operation, as well as coordinate with the United States Environmental Protection Agency (U.S. EPA) on related program and project requirements.
• Applied new scoring criteria per the Policy Amendment adopted in May 2025 to CWSRF loan applications. • Revised water recycling grant funding limits, such that large-scale projects may receive funding for up to 2 phases, or up to 2 projects per large-scale program, this fiscal year.
• New Small Community Wastewater funding limits: o Reduced the maximum grant/PF for Priority Projects from $50 million to $30 million; o Reduced the maximum grant for Secondary Priority Projects from $25 million to $7. 5 million; o Added a maximum grant/PF amount for planning Priority Projects ($2. 5 million); o Made Secondary Priority projects now eligible for planning grants up to $500,000.
• Reduced financial review requirements for Septic-to-Sewer and Regionalization projects receiving 100% grant/principal forgiveness. • Proposition 4 allocated funding to wastewater and drinking water projects collectively – consistent with last year, half of the allotment will be used towards small community wastewater projects, and the other half towards small community drinking water projects.
Drinking water funding limits will be described in the Drinking Water State Revolving Fund IUP. E-2 June 26, 2025 # B.
Recent Financing Activities Recent financing from CWSRF and Complementary Financing Sources (CWSRF loan, water recycling, small community wastewater, and stormwater funding and estuary agreements) are shown below: Table 1: Recent CWSRF & Complementary Funding SFY 21-22 22-23 23-24 24-25 25-26 Number of Agreements 66 73 50 49 29* $, millions $2,258 $784 $189 $1,036 $496* > * Numbers are as of June 15, 2026.
Many additional projects have funding decisions in progress and are routing for execution. Additionally, DFA has provided approximately $103 million in funding increases to existing projects in SFY 25-26. # C.
Funding Program Outlook Table 2: SFY 2026-27 Funding Overview Requested ($ in millions) Estimated Funding Amount ($ in millions) (on Fundable List) 32 $358 CWSRF loan + water recycling + stormwater projects (on Fundable List) 17 $857 Totals - 194 $3,423 $1,275 > Note: Projects expected to be executed by June 30, 2026, including projects with funding decisions in progress, are not included in this table.
Twenty-three (23) project applications were received and requested more than $1 billion in funding. But only thirteen projects were scored and considered for placement on the DFA staff anticipate committing the full amount of available SCWW grant/PF ($268 million) to projects. This total also includes an estimated $97 million for loan funding for the complete SCWW applications in house.
E-3 June 26, 2025 Fundable List. For SFY 2026-27, the Fundable List Cut-off Score is 13 for CWSRF loan applications.
The Deputy Director will remove any rollover project that has been on the Fundable List since SFY 2024-25 or earlier under either of the following circumstances: (1) the rollover project applicant has not consented to the State Water Board’s CWSRF loan provisions 2 through legal consultation by November 30, 2026; or (2) the applicant has not provided by November 30, 2026, all documents or information requested by the Division of Financial Assistance for the purposes of executing a CWSRF loan.
Small Community Wastewater Program (SCWW) There is approximately $268. 1 million in grant and principal forgiveness (PF) available during SFY 2026-27. Due to limited grant/PF availability, the State Water Board will continue to further prioritize grant/PF within SCWW projects.
Projects that address violations of waste discharge requirements or National Pollutant Discharge Elimination System (NPDES) permits and projects that connect previously unsewered areas or join communities to regionalize wastewater treatment works are considered ”P riority Projects” for grant/PF funding.
The “Secondary Priority ” SCWW projects are generally marked as incomplete as DFA staff need to review applications to confirm that applicants are still interested and determine if additional documents are needed to secure a loan component. SFY 2026-27 funding for SCWW includes SCG Funds, Proposition 4, Proposition 1, and CWSRF PF.
If Budget Act of 2024 Greenhouse Gas Reduction Funds and/or Proposition 1 and 68 funds are disencumbered from funded projects, those funds may also be made available to SCWW projects. Please see Section V.
for additional details Water Recycling Funding Program (WRFP) In November 2024, the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4 or the Climate Bond) was approved by voters and allocated approximately $386 million in grants for projects related to water reuse and recycling.
The SFY 2025-26 appropriation bill (Senate Bill 105) appropriated $150 million of the $386 million in Proposition 4 funds for eligible water recycling projects. All of which is already committed to existing applications that have completed eligibility reviews. On Applicants for loan/repayable financing should review the “Sample CWSRF Financing Agreement” and “Legal Opinion” templates posted at https://www.
waterboards. ca. gov/water_issues/programs/grants_loans/srf/srf_forms.
html in advance with their attorneys to expedite legal consultations. DFA updates the templates periodically. E-4 June 26, 2025 January 9, 2026, the SFY 2026-27 Proposed Governor’s Budget propose dapproximately $78 million to eligible water recycling projects for SFY 2026-27 projects.
In 2026-27, the State Water Board is expected to have approximately $102 million in total grant funds available for WRFP construction projects. The State Water Board also has the authority to commit approximately $18. 6 million in planning grants.
Eligible water recycling construction projects and planning projects are eligible to receive up to $15 million and $300,000 in grant funding, respectively. The State Water Board has also added eligibilities for Large-Scale Construction projects. Large-Scale Construction projects are defined as projects that will deliver at least 10,000 acre-feet per year (AFY) of recycled water at the completion of all phases of construction.
Eligible Large-Scale Construction projects are not required to provide user agreements or contracts for water delivery, may apply for up to two phases of one project or two projects per large-scale water recycling program, and are eligible for up to the $15 million in grant funds per phase/project. Please see Section VI for additional details and limitations.
Stormwater, Estuary, and Public Health Projects SFY 2026-27 funding for Stormwater projects includes Sewer Overflow and Stormwater Reuse Municipal Grants Program, CWSRF PF, and any unused Proposition 1 Funding. The Proposition 4 Stormwater Funding will have a separate set of guidelines and solicitation. The amount of PF available for stormwater projects is limited to $10 million for rollover projects from the SFY 2025/26 CWSRF IUP.
Estuary projects are eligible to receive CWSRF PF, limited to $1 million per estuary.
The Deputy Director will remove stormwater PF for projects on the Fundable List this fiscal year under either of the following circumstances: (1) the project applicant does not consent to the State Water Board’s stormwater PF provisions, potentially through legal consultation, by November 30, 2026; or (2) the applicant has not provided by November 30, 2026, all documents or information requested by the Division of Financial Assistance for the purposes of executing a funding agreement.
Any PF made available due to stormwater project delays will be made available to the Small Community Wastewater program. Please see Section VII for additional details and limitations. Page 5 June 26, 2026 Water is one of the most essential natural resources in California.
The State Water Resources Control Board (State Water Board) and the nine Regional Water Quality Control Boards (Regional Water Boards), collectively the Water Boards, protect and improve water quality in California through several regulatory and financial assistance programs. The federal Clean Water Act (CWA) established the Clean Water State Revolving Fund (CWSRF) program to finance the protection and improvement of water quality.
The CWSRF program has protected and promoted the health, safety, and welfare of Californians since 1989. Many of the projects funded by the CWSRF program address wastewater discharge violations or enforcement orders issued by the Regional Water Boards. Every project is directly related to protecting or improving public health, water quality, or both.
The State of California also periodically allocates funding to the State Water Board for financing programs that help protect and improve water quality. Many of these programs can be used in conjunction with the CWSRF program.
This Intended Use Plan (IUP) and the supplemental IUP describe the State Water Board’s plan for implementing the CWSRF and its complementary and supplementary financing programs for State Fiscal Year (SFY) 2026-27.
The SFY 2026-27 CWSRF IUP also serves as guidelines for the State Water Board’s administration of Proposition (Prop) 1 and Prop 68 wastewater and water recycling funds, the Implementation Plan for any state Budget Act Infrastructure Appropriations remaining and the Sewer Overflow and Stormwater Reuse Municipal Grant (OSG). The SFY 2026-27 CWSRF IUP will serve as guidelines for Prop 4, so long as state law permits.
This IUP assumes full authorization and appropriation of Prop 4 funds. If less than the expected amounts are available, the Division will administer the amounts available in accordance with this IUP.
Furthermore, this IUP will discuss the State Water Board’s approach to administer various funding sources with the available financial and programmatic resources, forecast the CWSRF cash flows and other funds available to the State Water Board for the next several years, identify projects the State Water Board anticipates financing, and establish performance measures to track the effectiveness of the CWSRF program.
The State Water Board will submit these IUPs as part of its applications for the federal fiscal year (FFY) 2026 Capitalization Grants for the base CWSRF program, CWSRF General Supplemental Funding, and CWSRF Emerging Contaminants Funding. The terms and requirements of these IUPs will remain in effect until the State Water Board amends or updates the IUPs or adopts the IUP(s) for the next SFY.
Page 6 June 26, 2026 In 1987, the United States Congress amended the CWA to replace the long-standing, federal Construction Grants Program (Title II) with the more flexible CWSRF program (Title VI). In 2014, Congress approved the Water Resources Reform and Development Act of 2014 (WRRDA) changing the requirements and eligibilities in Title VI of the CWA.
California’s CWSRF program is authorized under California Water Code Sections 13475-13485 and operates pursuant to an Operating Agreement between the State Water Board and the United States Environmental Protection Agency (U.S. EPA) Region 9. The CWSRF functions as an environmental infrastructure bank capitalized by federal and state funds – providing a sustainable source of funds for water quality protection and improvement.
The CWSRF’s capital and its earnings are used to provide financial assistance to a wide variety of water quality projects. States can target specific water quality problems, offer a variety of financing options, and customize terms to meet their water quality needs. Financing options include loans, refinancing debt, purchasing, or guaranteeing local debt, and purchasing bond insurance 3.
Interest rates on CWSRF loans are established by statute. The repayment period is generally the lesser of 30 years or the expected useful life of the financed asset. Since 2009, federal CWSRF appropriations and California law have also authorized grants, negative interest rates, and principal forgiveness (PF) on a limited basis.
The Infrastructure Investment and Jobs Act (IIJA), previously referred to as the Bipartisan Infrastructure Law or BIL, amended CWSRF requirements in the federal Clean Water Act (CWA), to allow states to use an additional two percent (2%) of the annual capitalization grant to provide technical assistance to rural, small, and tribal Publicly Owned Treatment Works (POTW), and appropriated $12.
7 billion over five years to CWSRF programs nationwide. The IIJA introduced additional requirements and provisions that may apply to the entire CWSRF program (not just limited to the supplemental IIJA appropriations).
The State Water Board may amend this IUP and the Supplemental IUP only after the public and interested parties are given an opportunity to comment on the proposed amendments, except for non-substantive corrections, which may be made by the Deputy Director. Throughout this document, the Deputy Director has been authorized to perform actions. The Deputy Director also has authority to re-delegate any of those actions to a designee.
Throughout this document, the word “loan” is used expansively and may include bonds, installment sale agreements, and other types of repayable financing. Page 7 June 26, 2026 All 50 states and Puerto Rico are currently operating successful CWSRF programs. The total CWSRF financing nationwide exceeds $181 billion.
California’s CWSRF has grown since financing its first project in 1989 and has executed more than $15. 1 billion in financial assistance agreements with nearly 400 unique recipients. The program has funded a broad range of projects.
The majority of funds have been used for publicly owned wastewater infrastructure. Some funds have also been used for nonpoint source or estuary projects. # C.
Connections to Other Plans, Goals, and Programs The CWSRF program supports numerous water quality and public health goals from the State Water Board’s most recent Strategic Work Plan . The CWSRF program supports the four goals of the Water Resilience Portfolio (July 2020): maintain and diversify water supplies; protect and enhance natural ecosystems; build connections and be prepared.
The State Water Board is tasked as the responsible agency for 17 actions of which 8 actions require direct involvement from DFA. The CWSRF program also supports California’s Water Supply Strategy as it focuses on: Developing new water supplies; Expanding water storage capacity above and below ground; reducing demand; and improving forecasting, data, and management.
The State Water Board last amended the Water Recycling Funding Program Guidelines on October 16, 2019. The WRFP Guidelines contain grant and loan eligibility criteria and priorities for water recycling projects. Water recycling is one of the key elements supporting the Governor’s Water Supply Strategy.
The State and Regional Water Boards also have primary responsibility to protect water quality by preventing and reducing water pollution in our rivers, streams, lakes, beaches, bays, and in our groundwater.
The purpose of the Non-Point Source (NPS) Program Plan is to improve California’s ability to effectively manage NPS pollution and conform to the requirements of the Federal Clean Water Act and the Federal Coastal Page 8 June 26, 2026 Zone Act Reauthorization Amendments of 1990. The 2020-2025 Nonpoint Source Implementation Plan is California’s approved implementation plan.
It identifies a set of targeted performance measures and describes NPS Program activities from July 2020 through June 2025. The draft 2025-2030 Nonpoint Source Implementation Plan has been released for public comments. Once adopted, projects implementing the 2025-2030 Nonpoint Source Implementation Plan would be eligible for CWSRF funding.
Projects that implement the 2020-2025 NPS Implementation Plan continue to be eligible for CWSRF funding in the interim. The National Estuary Program (NEP) is an EPA program to protect and restore the water quality and ecological integrity of estuaries of national significance. Currently, three estuaries in California are designated as nationally significant estuaries – Morro Bay, Santa Monica Bay, and San Francisco Bay.
For each area a Comprehensive Conservation and Management Plan (CCMP) has been developed to identify and implement long-term actions to address water quality and resource challenges and priorities in the estuary. Projects and actions in the CCMPs are eligible for CWSRF funding.
The State Water Board administers several programs authorized by the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Prop 1) , the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 (Prop 68) , the Safe Drinking Water Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Prop 4) , and the Budget Act of 2024 (SB-108) and may have funding available from other bond measures and funding sources.
Projects eligible for state sources of funds may also be eligible for CWSRF funds. The State Water Board manages its funding programs to maximize its ability to fund projects that support the State Water Boards’ water quality goals and by coordinating CWSRF financing with the State Water Board’s other funding sources.
In establishing the terms of this CWSRF IUP, the State Water Board considered Resolution No. 2016-0010, Adopting the Human Right to Water as a Core Value and Directing its Implementation in Water Board Programs and Activities and statewide policy set forth in section 106. 3 of the Water Code.
Specifically, Subdivision (a) declares it is the established policy of the State that “every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.
” Subdivision (b) requires the State Water Board to consider this state policy when “revising, adopting, or establishing policies, regulations, and grant criteria when those policies, regulations, and criteria are pertinent to the uses of water. ” On May 16, 2017, the State Water Board adopted an emergency regulation to implement provisions of the Sustainable Groundwater Management Act (SGMA).
SGMA created a framework for sustainable, local groundwater management for the first time in California history and requires the formation of local groundwater sustainability agencies (GSAs) in California’s high - or medium-priority groundwater basins or the submittal of an alternative that demonstrates a basin is already sustainable.
The CWSRF can potentially fund projects that would assist GSA’s with achieving groundwater sustainability. Page 9 June 26, 2026 On April 18, 2023, the Water Quality Control Policy for Siting, Design, Operation, and Maintenance of Onsite Wastewater Treatment Systems (OWTS Policy) was amended. The vast majority of the estimated 1.
2 million onsite systems in California are properly sited, designed, operated, and maintained, and are functioning in a satisfactory manner. The purpose of the OWTS Policy is to allow the continued use of OWTS, while protecting water quality and public health, and recognizes that responsible local agencies manage OWTS on a routine basis.
The OWTS Policy establishes a statewide, risk-based, tiered approach for the regulation and management of OWTS installations and replacements and sets the level of performance and protection expected from OWTS. The OWTS Policy also discusses the procedures for local agencies to apply for CWSRF funds to establish local, low interest loan programs to assist OWTS owners with meeting the requirements of the OWTS Policy.
The CWSRF can fund a wide range of water infrastructure projects and may offer a variety of financial assistance types. The following are CWSRF priorities highlighted by the State Water Board: 1. Small Disadvantaged Communities (DACs) On July 1, 2008, the State Water Board adopted Resolution No. 2008-0048 to assist small communities and/or DACs with their wastewater needs.
Resolution No. 2008-0048 referred to a Small Community Wastewater Strategy, which was subsequently updated and expanded in the Spring of 2016 to incorporate public water systems and was renamed the Clean Water and Drinking Water Capacity Development Strategy (Capacity Development Strategy). The strategy provides an overview of the challenges facing these communities.
Regarding wastewater, these include both failing septic systems and failing outdated and undersized wastewater treatment plants. Small communities and/or DACs generally have higher per capita costs.
Disadvantaged (median household income [MHI] of less than 80 percent [80%] of the statewide MHI) and severely disadvantaged (MHI of less than 60 percent [60%] of the statewide MHI) small communities typically face the additional burden of lower household incomes. The result is higher, sometimes prohibitive, sewer and water rates.
In 2017, the Drinking Water Capacity Development program, required by the Safe Drinking Water Act, was moved from DFA to the Division of Drinking Water (DDW), but both divisions play a role in supporting the Board’s capacity development goals. The Office of Sustainable Water Solutions (Office) was statutorily established on March 27, 2015, and is part of DFA.
The Office was created to promote permanent and sustainable drinking water and wastewater treatment solutions to ensure effective and efficient provision of safe, clean, affordable, and reliable drinking water and wastewater treatment services, focusing on addressing financial and technical assistance needs, particularly for small DACs. The Office provides low interest loans and grants utilizing state and federal funding sources.
Funding for small DACs is coordinated through the SCWW funding described throughout this IUP. Page 10 June 26, 2026 2. San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay-Delta) Staff from the State Water Board and the Central Valley and San Francisco Bay Regional Water Boards coordinate the Water Boards’ activities in the San Francisco Bay and Sacramento-San Joaquin River Delta (Bay-Delta).
The Bay-Delta Team is charged with deve loping the Water Boards’ short and long -term efforts for addressing impacts to the beneficial uses of water in the Bay-Delta. In December 2018, the State Water Board adopted the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary lower San Joaquin River and Southern Delta .
The State Water Board is in the process of developing and implementing updates to the Bay-Delta Water Quality Control Plan for the Sacramento River and tributaries, and continue with efforts to protect beneficial uses in the Bay-Delta watershed.
The CWSRF program can help with these efforts by funding point source, nonpoint source, and estuary projects such as: • Measures identified in Total Maximum Daily Loads; • Stormwater and dry weather runoff reduction from Municipal Separate Storm Sewer Systems; • Conservation measures to reduce sediment and non-point discharges; • Ammonia discharge reduction from POTWs; • Urban and agricultural water use efficiency to reduce demands on the Delta and reduce runoff of pesticides to the Delta; • Implementation of non-point source projects under the state’s Section 319 • Implementation of watershed projects; • Implementation of measures under the San Francisco Estuary Blueprint; and • Measures to promote water conservation, efficiency, or reuse that can decrease demands on the Delta.
# D. Federal and State Water Board Guidance The State Water Board will continue to implement the CWSRF and complementary and supplementary financing programs consistent with applicable state and federal statutes, regulations, policies, and guidelines.
These include, but are not limited to: • The Policy for Implementing the Clean Water State Revolving Fund (CWSRF Policy) and funding guidelines related to any complementary and supplementary financing sources; • The Operating Agreement between the State Water Board and U.S. EPA; • The Clean Water and Drinking Water State Revolving Funds Debt Management Policy (SRF Debt Management Policy) and agreements related to outstanding revenue bonds; Page 11 June 26, 2026 • The State Water Board’s Clean Water and Drinking Water Capacity Development • U.S. EPA Interpretive Guidance regarding the WRRDA amendments; • U.S. EPA guidance regarding Implementation of the CW and DWSRF Provisions of the Infrastructure Investment and Jobs Act; • Any additional federal requirements in the 2026 budget appropriation, the 2026 Capitalization Grant agreements, and/or guidance from U.S. EPA.
• CWSRF repayable funding will be consistent with the requirements of the program’s Master Trust Indenture and associated bond documents to ensure compliance with Securities and Exchange Commission, Internal Revenue Service, and Municipal Securities Rule Making Board (MSRB) rules and regulations and ensure that all CWSRF revenue bonds are secure and repaid in full and on time. # E.
Supplementary Definitions Unless otherwise defined below, the definitions in the CWSRF Policy shall apply to funding under this IUP.
If a single facility with a large residential population that does not pay sewer rates and is reasonably isolated and divisible from the larger community, such as a prison, contributes significantly to the population of the community, the Deputy Director has discretion to determine it is appropriate to exclude that facility’s population in determining population for the purposes of funding eligibility. 1.
“Disadvantaged Community ” means a community with a MHI of less than eighty percent (80% of the statewide MHI); 2. “Median Household Income” or “MHI” means the household income that represents the median value for the applicant’s service area. 3.
“Receiving System ” means the POTW that provides wastewater treatment and disposal service to a Subsumed System through a Regionalization or septic-to-sewer project.. 4.
“Regionalization” means, for the purposes of funding eligibility under this CWSRF IUP, joining two or more POTWs to regionalize the provision of wastewater treatment, where a Subsumed Wastewater System (or Satellite Sewer System) discontinues independent treatment and disposal but may continue to operate and maintain its own collection system. 5.
“Septic-to-sewer ” projects means, for the purposes of funding eligibility under this CWSRF IUP, projects to connect communities relying on onsite sewage treatment systems to public sewer systems. Page 12 June 26, 2026 6. "Small Community” means a community with a population of less than 20,000.
7. “Small Disadvantaged Community” or “Small DAC” means a community with a population of less than 20,000 and either or both of the following conditions: • An MHI of less than eighty percent (80%) of the statewide MHI. • A sewer rate of more than four percent (4%) of the community’s MHI.
8. “Small Severely Disadvantaged Community” or “Small SDAC” means a community with both a population of less than 20,000 persons and an MHI of less than sixty percent (60%) of the statewide MHI. 9.
“Subsumed System” means the POT W or, for septic-to-sewer projects, onsite sewage treatment system, consolidated into or receiving service from the Receiving System. # F. Water Quality Financing Needs California needs significant funding to achieve its clean water goals.
U.S.EPA, in partnership with states, territories and the District of Columbia, typically conducts the Clean Watersheds Needs Survey every four years. The most recent 2022 Clean Watersheds Needs Survey identified $65 billion in needs for California over the next 20 years – $40 billion in wastewater facilities (including water reuse), $16 billion in stormwater management, and $9 billion in nonpoint source control.
The survey encapsulates over 700 wastewater facilities, over 100 stormwater facilities, nonpoint source needs, and decentralized wastewater treatment systems where data is available. The $65 billion in need is also expected to increase with inflation over the 20-year period. If the current level of federal and state appropriations remains, CWSRF loan financing is projected to total $12 billion over the same period ($600 million per year
According to the current listing, eligibility includes: Nonprofit; Public Agency; Tribal Government. Local public agencies, 501(c)(3) nonprofit organizations qualified to do business in California, Public Utilities, Federally and non-federally recognized Native American tribes on the Native American Heritage Commission’s list, and Mutual water companies. Confirm the full requirements in the official notice before applying.
The current listing shows between $1 and $15,000,000. Verify award ceilings, matching requirements, and allowable costs in the official notice.
Applications for Proposition 4 – Water Recycling are due June 30, 2030. Build your timeline backwards from this date to cover registrations, approvals, and final submission checks.
Proposition 4 – Water Recycling is funded by State Water Resources Control Board. Verify program details on the funder's official page before applying.
This opportunity targets applicants in California. If your organization operates elsewhere, check the official notice for location requirements.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
2027 Nonpoint Source (NPS) Grant Program – Clean Water Act section 319(h) is sponsored by State Water Resources Control Board. The NPS Grant Program seeks proposals for projects that reduce runoff of pollution to waters of the state, such as agricultural projects that reduce pesticide and nutrient runoff, improvement or decommissioning of dirt roads to reduce erosion and sediment runoff, streambank stabilization to reduce erosion and infrastructure improvements for ranching and livestock operations to reduce erosion and runoff of nutrients and pathogens. The 2027 Nonpoint Source Grant Program Guidelines (Guidelines), posted on the NPS Grant Program website (https://www.waterboards.ca.gov/water_issues/programs/nps/319grants.html), describe program preferences, eligibility requirements, application process and instructions, project selection criteria, and the grant award process. Please note one of the minimum eligibility requirements is to consult with the NPS Grant Coordinator in the corresponding Regional Water Board listed in Appendix 7 of the Guidelines.
Replacing, Removing, or Upgrading Underground Storage Tanks Loan is sponsored by State Water Resources Control Board. RUST loans may be used to finance up to 100 percent of the costs necessary to upgrade, remove or replace project tanks, including corrective actions, to meet applicable local state, or federal standards, including, but not limited to, any design, construction, monitoring, operation, or maintenance requirements adopted pursuant to Health and Safety Code sections 25284.1, 25292.05, 25292.4, or 41954. Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) loans are available to assist small business underground storage tank (UST) owners and operators in financing up to 100 percent of the costs necessary to upgrade, remove, or replace project tanks, including corrective actions, to meet applicable local, state, or federal standards, including, but not limited to, any design, construction, monitoring, operation, or maintenance requirements adopted pursuant to Health and Safety Code section 25284.1, 25292.05, 25292.4, or 41954. Loan Terms Low-interest loans are available for between $10,000 and $750,000, for a term of 10 or 20 years. • Ten-year loans are secured by the Uniform Commercial Code Financing Statement on business assets. • Twenty-year loans are secured by a deed of trust on real estate with adequate equity. • A loan fee of 2 percent must be paid at final loan closing. • Please contact the State Water Board or your local Financial Development Corporation for the current interest rate. Eligibility Requirements Loan applicants must be a UST owner and/or operator and meet all of the following requirements: • The loan applicant is a small business that employs fewer than 500 full-time and part-time employees, is independently owned and operated, and is not dominant in its field of operation; • The loan applicant’s principal office and its officers must be domiciled in California; • All of the tanks owned and operated by the loan applicant are subject to compliance with Health and Safety Code chapter 6.7 and the regulation adopted pursuant to that chapter; • The loan applicant must provide financial and legal documents necessary to demonstrate the ability to repay the loan and availability of adequate collateral to secure the loan; and Revised 8/2020 • The loan applicant must have complied, or will comply, with the financial responsibility requirements specified in Health and Safety Code section 25299.31 and the regulations adopted pursuant to this section. This is not a reimbursement program. Work cannot begin until you have an agreement executed by the State Water Board.
Emergency Drinking Water / Cleanup & Abatement Account Programs is sponsored by State Water Resources Control Board. The Cleanup and Abatement Account (CAA) funds may be utilized to fund: (1) projects that clean up and/or abate the effects of a waste on waters of the State, or (2) projects that address urgent drinking water needs. The Cleanup and Abatement Account (CAA) was created by Water Code Sections 13440-13443 to provide grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. Water code section 13442 authorizes the State Water Board to utilize CAA funds to address an urgent drinking water need. This includes needs due to drought, contamination, or other eligible emergencies. The CAA is funded by various monies including those: appropriated by the Legislature; collected as part of criminal penalties or civil proceedings brought pursuant to Division 7 of the Water Code; collected or recovered by the State Water Board or a Regional Water Quality Control Board (Regional Water Board) under Chapter 6.7 of Division 20 of the Health and Safety Code; and repaid by loan recipients, including principal, interest, and fees. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project [SEP]). Those funds are typically set aside in the CAA for that identified purpose, consistent with statutes governing uses of the CAA. After accounting for these needs and other prior encumbrances, remaining CAA funds may be utilized to fund: (1) projects that clean up and/or abate the effects of a waste on waters of the State, or (2) projects that address urgent drinking water needs.
EPA's Innovative Water Infrastructure Workforce Development competition closes October 5, 2026. The agency says up to 15 awards across four project areas, but Project Area 1 alone carries a $7.8 million ceiling against a $10.8 million pot. That tension is the single most important strategic fact in the NOFO — here is how to read it, which lane is least competed, and what a three-week runway means for your submission.
Read articleUSDA's Rural Decentralized Water Systems Grant funds nonprofits to capitalize a revolving loan fund for household wells and septic systems: 1 percent fixed, 20-year terms, $15,000 maximum per household. The application window closes September 30, 2026. The program is chronically under-subscribed for one structural reason — the 10 percent priority-point contribution cannot be in-kind. Here is the full instrument analysis and what it takes to win.
Read articleThe FY2026 Innovative Water Infrastructure Workforce Development Grant (EPA-OW-OWM-26-03) closes October 5, 2026 with $10.8 million, up to 15 cooperative agreements, and a Project Area 1 ceiling of $7.8 million. One maximum award would consume 72 percent of the pool. Here is how the four project areas actually partition the money, why the grants.gov award floor field is wrong, and why September 14 is the date that matters more than October 5.
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