Drinking Water State Revolving Fund (DWSRF)

The New Mexico Environment Department co-administers the Drinking Water State Revolving Fund (DWSRF) loan program with the New Mexico Finance Authority (NMFA). This fund provides low-cost financial assistance to public water systems to finance the cost of repair and replacement of drinking water infrastructure; to ensure compliance with drinking water regulations; and to protect drinking water quality and public health. NMED accepts Drinking Water State Revolving Fund preliminary applications year-round. Projects are reviewed and ranked for placement on the Priority List quarterly. Eligibility New and replacement water sources Treatment Transmission and distribution lines Storage Supervisory Control and Data Acquisition (SCADA) systems Infrastructure to interconnect or regionalize water systems Energy efficiency and water conservation projects In addition to funding costs needed for project construction the DWSRF can also finance planning, design and associated pre-project costs and land acquisition needed for locating project components. Low Interest Loans The NMFA will provide loans with interest rates ranging from 0% to 4%, depending on a PWS’s ownership and Median Household Income. If a PWS is publicly owned, then it is eligible to receive a DWSRF loan at 0% or 1% (lowered from 2% in 2019). The NMFA uses available subsidy from the Capitalization Grant to assist entities that are Disadvantaged or Severely Disadvantaged that could not otherwise afford DWSRF loans. Project Priority Ranking and Intended Use Plan Project pre-applications are evaluated and ranked quarterly based on a a variety of factors that determine greatest need, impact of project on water quality improvement, and other factors. For more information see the current IUP and Priority List on the DWB Infrastructure Projects & Funding page Contact us with questions at: [email protected]  or 505-231-2120.

Eligibility New and replacement water sources