Wisconsin Environmental Loans Programs is sponsored by State of Wisconsin Department of Natural Resources. Affordable financial assistance loans to Wisconsin communities for water and environmental projects, providing below-market financing for eligible initiatives.

Environmental Loans | Clean Water Fund Program and Safe Drinking Water Loan Program | Wisconsin DNR Aid_Content Page_Environmental Loans Clean Water Fund Program and Safe Drinking Water Loan Program Due to continued high demand for financial assistance, loan capacity limitations may impact State Fiscal Year 2026 CWFP and SDWLP applications. For more information, go to our Loan Capacity webpage .

Wisconsin provided over $8 billion in financial assistance to municipalities since State Fiscal Year 1991 through the Environmental Improvement Fund (EIF) programs. View the financial assistance summary and annual reports .

The Clean Water Fund Program (CWFP) and the Safe Drinking Water Loan Program (SDWLP) provide affordable financial assistance to communities within Wisconsin for eligible water infrastructure projects that protect and improve public health and water quality for current and future generations.

Eligible projects include those that are needed to achieve or maintain compliance with federal and state regulations relating to wastewater treatment and drinking water supply. Online application system. Fixed interest rate on 20-year loan term.

Program subsidy buys down market rate on program loan. Standard interest rate is 55% of market rate. Coordination with other funding sources.

Dedicated DNR loan project manager and construction management engineer. The Clean Water Fund Program and the Safe Drinking Water Loan Program can finance construction as it takes place, refinance interim debt used to design and construct a project and reimburse internal funds a municipality temporarily used to pay for project costs before receiving its subsidized (low interest) loan through the CWFP or the SDWLP.

In recent years, additional subsidization of program loans in the form of principal forgiveness (PF) has been available to economically disadvantaged municipalities. To learn how funds will be allocated to eligible projects of applicants (municipalities), read the program's intended use plan (IUP) for the corresponding state fiscal year funding cycle.

The DNR produces an annual funding policy for each the CWFP and the SDWLP in the form of an IUP that describe methods for making funding determinations and other program policies related to the fiscal year. The IUP is not all encompassing, it is meant to be used in conjunction with the governing laws. For each program, there is specific project eligibility criteria, a scoring and ranking system, and specific deadlines.

The program implementation details are established in the applicable governing statutes and administrative codes . The Clean Water Fund Program (CWFP) provides subsidized loans to municipalities for publicly owned wastewater treatment and collection system infrastructure projects. It includes projects for compliance with a municipality's Wisconsin Pollution Discharge Elimination System (WPDES) permit.

Clean Water Emerging Contaminants (CW-EC) Program provides funding to municipalities for water quality projects that will reduce or eliminate any detectable levels of any PFAS contaminant compound for which a surface water quality standard or recommended Wisconsin Department of Health Services groundwater standard exists. Funding for wastewater disinfection .

Pilot Projects Program provides a subsidy to municipalities seeking to fund water quality trading projects and other non-traditional projects (i.e. projects not related to a wastewater treatment plant upgrade). Priority Principal Forgiveness (Priority PF) points and criteria for regionalization, phosphorus reduction, and energy efficiency projects. Small Loans Program is currently suspended.

Storm water projects must lead to or provide treatment to control discharged water quality in order to be eligible for funding from the CWFP. Safe Drinking Water Loan Program The Safe Drinking Water Loan Program (SDWLP) provides subsidized loans to municipalities for public drinking water system and infrastructure projects.

Lead Service Line (LSL) Replacement Program provides funding to municipalities for both public and private side LSL replacements and related LSL inventory work. The general LSL replacements webpage includes other sources of funding and technical assistance. Priority Evaluation and Ranking Formula (PERF) points for asset management plans .

PERF points for public water supply/system partnerships .

Safe Drinking Water Emerging Contaminants (SDW-EC) Program provides funding to municipalities for municipal water system projects that will reduce or eliminate any detectable levels of any PFAS contaminant compound included in the U.S. Environmental Protection Agency's enforceable PFAS levels in the water system, and/or reduce or eliminate manganese when it exceeds or is anticipated to exceed ' do not drink ' levels in the water system.

The Wisconsin DNR Environmental Loans Section often partners with other funding agencies to ensure that municipalities get the best funding package to meet their needs. The DNR and other funding sources can collaborate to clarify the joint funding process and help with common paperwork challenges. View a list of water and wastewater funding and technical assistance sources .

Any city, town, village, county, county utility district, town sanitary district, public inland lake protection and rehabilitation district, metropolitan sewerage district, joint local water authority created under s. 66. 0823, Wis.

Stats. , or federally recognized American Indian tribe or band in Wisconsin is eligible to apply for financial assistance from the Clean Water Fund Program. Eligible SDWLP Applicants Any city, village, town, county, town sanitary district, public inland lake protection and rehabilitation district, joint local water authority created under s.

66. 0823, Wis. Stats.

, or municipal water district in Wisconsin is eligible to apply for financial assistance from the Safe Drinking Water Loan Program.

Note: Tribes can apply for funding directly from the U.S. Environmental Protection Agency (EPA): Clean Water Indian Set-Aside Grant Program (CWISA) Drinking Water Infrastructure Grants Tribal Set-Aside (DWIG-TSA) Program Eligible Projects and Costs The following are general guidelines helpful in determining whether a CWFP or a SDWLP loan would be appropriate for your project.

The municipal wastewater project is a necessity to stay in compliance with WPDES permits or to meet new permit requirements. Projects constructing a new sewer system to eliminate groundwater pollution and threats to public health. Projects correcting public water systems that violate health standards, have contamination, are not in compliance with drinking water standards or have inadequate transmission pipes and/or storage facilities.

Eligible projects include those that are needed to achieve or maintain compliance with federal and state regulations relating to wastewater treatment (i.e. Clean Water Act) and drinking water supply (i.e. Safe Drinking Water Act). The CWFP includes projects for compliance with a municipality's Wisconsin Pollution Discharge Elimination System (WPDES) permit.

The program funds are for reasonable and necessary costs directly related to the planning, design and construction of eligible projects. Funds may be used to construct, improve, modify, purchase, replace, restore and upgrade drinking water, wastewater and storm water systems and infrastructure (e.g. collection, conveyance, disposal, distribution, sourcing, storage, transmission and treatment).

For more information on eligible projects and costs, read: Clean Water Fund Program eligibility index Safe Drinking Water Loan Program eligibility index If construction has already begun, or is imminent, it's essential to contact the CWFP or SDWLP for guidance. Program staff will decide whether the project can still be considered for financial assistance and provide what steps need to be taken.

Read the Guidelines For When Construction Commences Before Applying For Financial Assistance From The Clean Water Fund Program Or The Safe Drinking Water Loan Program (PUB-CF-049) . Follow these steps in order to apply for funding: Identify and define the wastewater treatment or drinking water "problem" that needs to be corrected or prevented.

This process generally involves a joint effort of the municipality, a consulting engineer, and a regional DNR engineer. Pre-Application - A notice of Intent to Apply (ITA) and Priority Evaluation & Ranking Formula (PERF) must be submitted online for each project for which you will be seeking a CWFP or a SDWLP loan. When your project score is finalized by the DNR, you will receive an email notification.

Eligible projects will be placed on the corresponding program's Project Priority List in priority score order. ITAs/PERFs are only valid for one state fiscal year. If you do not go forward with submitting an application, be sure to re-submit an ITA/PERF for the following state fiscal year, if you are still pursuing funding from the CWFP or the SDWLP.

Application - Once your project is on the Project Priority List, you may apply for funding for that state fiscal year. A financial assistance application must be submitted online for each project for which you will be seeking a CWFP or SDWLP loan. Note: The Pilot Projects CWFP Financial Assistance Application (Form 8700-378) is currently not available to submit via the online system.

The "ITA Help" publication explains how to navigate the Online ITA/PERF System, and what information and supporting documentation are required for each question/section of the ITA/PERF. CWFP ITA Help Text for the Online System (PUB-CF-062) SDWLP ITA Help Text for the Online System (PUB-CF-063) The "Next Steps" publication is a timeline on when to procure the documents required for the application.

Next Steps for Wastewater Applicants After CWFP ITA (PUB-CF-042) Next Steps for Storm Water Applicants After CWFP ITA (PUB-CF-051) Next Steps for Applicants After SDWLP ITA (PUB-CF-043) Application Process and Contents The "Application Process and Contents" publication is a detailed checklist of required documentation, including the financial information that is required by the Department of Administration (DOA).

CWFP Application Process and Contents for Wastewater Projects (PUB-CF-044) CWFP Application Process and Contents for Storm Water Projects (PUB-CF-052) SDWLP Application Process and Contents (PUB-CF-045) The "Application Help" publication explains how to navigate the Online Application System and what information and supporting documentation are required for each question/section of the application.

CWFP Wastewater Application Help Text for the Online System (PUB-CF-059) CWFP Storm Water Application Help Text for the Online System (PUB-CF-053) SDWLP Application Help Text for the Online System (PUB-CF-058) The Loan Document Upload Screen and Instructions (PUB-CF-065) publication explains how to attach required "post-application" documents in the Online Application System.

The Loan Document Upload Categories and Types (PUB-CF-067) publication is a list of "post-application" documents the DNR loan project manager needs to prepare the Financial Assistance Agreement (loan). Additional guidance is available from the Reference Guide Index webpage . The applicable deadlines are set in the corresponding program's annual intended use plan for the upcoming fiscal years.

The state fiscal year (SFY) runs from July 1 of one calendar year through June 30 of the next and is designated by the calendar year in which it ends. Timeline for CWFP loans with principal forgiveness Timeline for SDWLP loans with principal forgiveness Oct. 31 – CWFP and SDWLP notice of Intent to Apply submittal deadline for the following SFY funding cycle (includes Priority Evaluation and Ranking Formula).

June 30 – SDWLP application submittal deadline if competing for principal forgiveness for the upcoming SFY funding cycle. Sept. 30 – CWFP application submittal deadline if competing for principal forgiveness for the current SFY funding cycle.

Applications may be submitted at any time during the state fiscal year; however, a complete application must be submitted by the deadline to be ranked on the corresponding program's Funding List in priority score order for the purpose of allocating loan funds and principal forgiveness.

Complete, eligible applications received after the submittal deadline will be eligible for loan funding, if available, and will not be eligible for general principal forgiveness (PF). The CWFP applications submitted after Sept. 30 may still receive a loan and be considered for Energy Efficiency Priority PF if funding is available.

Note: When a deadline falls on a weekend or legal holiday, that deadline is extended to the next business day, per s. 990. 001(4), Wis.

Stats. The assigned DNR loan project manager will work with the municipality to establish a loan closing date as well as a timeline for submitting the required documentation needed to prepare the Financial Assistance Agreement (FAA), also known as a loan. The loan closing date is normally scheduled for the second or fourth Wednesday of the month.

Sept. 30 – SDWLP loan closing deadline for prior year's allocations. Sign the FAA (loan) by the Sept.

30 of the year following the SDWLP application submittal deadline. For both principal forgiveness and non-PF CWFP projects, the loan must close within eight months following the date of the application acceptance notification. All PF CWFP applications are accepted by June 30 (the end of the state fiscal year).

Non-PF CWFP applications are accepted by the Dec. 31 of the following state fiscal year. The "Program Deadlines" publication is a visual aid that was created to emphasize the application process and loan closing timelines.

CWFP Deadlines for SFY 2026 Projects (PUB-CF-046b) SDWLP Deadlines for SFY 2026 Projects (PUB-CF-047b) The Environmental Loans Deadlines in 2025–2027 (PUB-CF-048b) publication is a visual aid of important dates for both the CWFP and the SDWLP that was created to help clarify: the start of state fiscal years in relation to calendar years, the overlapping SFY funding cycles and corresponding deadlines, and the separate deadlines and timelines amongst programs.

The Clean Water Fund Program (CWFP) and the Safe Drinking Water Loan Program (SDWLP) provide subsidy to municipalities to buy down the market rate on program loans to the reduced interest rates described in the table shown below. The market rate will decrease for financial assistance agreements approved by a municipality's governing body on or after April 1, 2026. For more information, read the Interest Rates webpage .

Download the Interest Rate Determination Table (PUB-CF-036) for both the Clean Water Fund Program and the Safe Drinking Water Loan Program. This table shows determination of the loan interest rate by project type, based on the current market rate. BOND TYPE SECURING LOAN: Tax-Exempt Taxable LOAN TERM: ≤ 20 Years 21-30 Years ≤ 20 Years 21-30 Years MARKET RATE (effective 01/01/2026): 4.

500% 4. 700% 5. 357% 5.

595% PROJECT TYPE % of MARKET RATE LOAN INTEREST RATE CWFP and SDWLP For eligible projects of municipalities not meeting the financial need criteria. 55% 2. 475% 2.

585% 2. 946% 3. 077% CWFP and SDWLP For eligible projects of disadvantaged municipalities meeting the following financial need criteria: ≤ 80% of Wisconsin's Median Household Income (MHI).

33% 1. 485% 1. 551% 1.

768% 1. 846% CWFP For eligible projects of extremely disadvantaged municipalities meeting the following financial need criteria: ≤ 65% of Wisconsin's MHI. For the portion of eligible projects for receiving and storing septage, and capacity for treating septage.

0% 0% 0% 0% 0% MARKET RATE (effective 01/01/2026) 100% 4. 500% 4. 700% 5.

357% 5.

595% Program Coordinators and Specialists Clean Water Fund Program (CWFP) coordinator: Lisa Bushby Safe Drinking Water Loan Program (SDWLP) coordinator: Noah Balgooyen CWFP Pilot Projects Program specialist: Dave Calhoon CWFP storm water projects specialist: Sarah Bolitho SDWLP Lead Service Line (LSL) Replacement Program specialist: Kate Leja-Brennan CWFP & SDWLP Emerging Contaminants (EC) Programs specialist: Ryan Atkinson For information on this topic, contact an Environmental Loans Section manager: Bipartisan Infrastructure Law Funding Project Lists and Intended Use Plans Requests for Disbursement Statutes and Administrative Codes For general information on loan programs, contact