Clean Water State Revolving Fund Program (CWSRF)

The Clean Water State Revolving Fund (CWSRF) program is a low interest loan program to assist communities with a wide range of water quality infrastructure projects.

Dave Bergsagel

Program Manager


Program Highlights

  • The North Dakota CWSRF Program is jointly managed by the North Dakota Department of Health (NDDoH) and the North Dakota Public Finance Authority (PFA).
  • The current effective interest rate for CWSRF loans is 2.0 percent for most projects. This includes a 1.5 percent interest rate plus a 0.5 percent administration fee.
  • Loan terms up to 30 years are available depending on the useful life of the project.
  • The SRF programs require borrowers to only pay interest on loan funds that have been drawn.
  • There is no penalty for early payment from excess revenues; prepayments are not allowed from bond proceeds.
  • Bond counsel fees are the only cost of issuance expense.
  • The SRF programs prepare the continuing disclosure filings.

Eligible Applicants

A political subdivision is eligible for financial assistance under the state revolving fund if the project is included in the current intended use plan. Examples of political subdivisions include the following:

  • Cities
  • Counties
  • Townships
  • Water Resource Districts
  • Recreation Service Districts
  • Commerce Authorities

Eligible Projects

The following types of projects and costs are eligible for SRF funding:

  • Wastewater treatment, both secondary and advanced
  • Infiltration/Inflow (I/I) correction
  • Sewer rehabilitation
  • Interceptor sewers
  • Collection Systems (Existing Communities Only)
  • Sludge Management
  • Combined sewer overflow (CSO) abatement
  • Stormwater control
  • Water conservation, efficiency, and reuse
  • Nonpoint source activities
  • Watershed management
  • Energy efficiency
  • Land acquisitions necessary to complete eligible projects

Ineligible Project Types and Costs

  • Operation and maintenance costs
  • Collection lines to serve new subdivisions
  • Projects primarily to serve future growth
  • Projects for systems that lack adequate technical, managerial, and financial capability

Federal Requirements

There are a number of federal laws, executive orders, and government-wide policies that apply to projects and activities receiving federal financial assistance, regardless of whether the federal laws authorizing the assistance make them applicable. These federal authorities are referred to as cross-cutting authorities or cross-cutters. The cross-cutters can be divided into three groups: environmental; social policy, and economic and miscellaneous authorities. Environmental cross-cutters include federal laws and executive orders that relate to preservation of historical and archaeological sites, endangered species, wetlands, agricultural land, and the like. Social policy cross-cutters include requirements such as minority and women's business enterprise participation goals, equal opportunity employment goals, and nondiscrimination laws (super cross-cutters). The super cross-cutters prohibit the discrimination on the basis of race, color, national origin, sex, handicap or age. Economic cross-cutters directly regulate the expenditure of federal funds. A list of the cross-cutters can be found here.

Additional Requirements:

Financial assistance through the SRF programs requires compliance with applicable rules, policies, and statutes including:

  • Application of Davis-Bacon wage rate requirements (29 CFR Part 5)
  • Compliance with EPA’s American Iron & Steel Provision
  • CWSRF Equivalency Projects must also comply with the following additional requirements
    • A/E Contract Procurement (40 USC Chapter 11)
    • Single Audit Act

Additional CWSRF Resources including Laws and Regulations and Policy and Guidance can be found on the EPA’s website here.

Federal Cross-Cutting Authorities

Environmental Authorities

  • Archeological and Historic Preservation Act, Public Law (PL) 93-291, as amended; 16 USC 469a-1
  • Clean Air Act, PL 95-95, as amended; 42 USC 7401
  • Clean Water Act, Titles III, IV and V, PL 92-500, as amended
  • Endangered Species Act, PL 93-205, as amended; 16 USC 1531
  • Environmental Justice, EO 12898
  • Farmland Protection Policy Act, PL 97-98; 7 USC 4201
  • Fish and Wildlife Coordination Act, PL 85-624, as amended; 16 USC 661
  • Floodplain Management, Executive Order 11988 (1977), as amended by EO 12148 (1979)
  • National Environmental Policy Act, PL 91-190; 42 USC 4321 et. seq
  • National Historic Preservation Act, PL 89-665, as amended; 16 USC 470
  • Protection and Enhancement of the Cultural Environment, Executive Order 11593
  • Protection of Wetlands, Executive Order 11990 (1977), as amended by EO 12608 (1997)
  • Safe Drinking Water Act, PL 93-523, as amended; 42 USC 300f
  • Wild and Scenic Rivers Act, PL 90-542; 16 USC 1271-1287


Social Policy Authorities

  • Age Discrimination Act of 1975, 42 USC 6101-6107 (super cross-cutter)
  • Civil Rights Act of 1964, Title VI, 42 USC 2000d (super cross-cutter)
  • Equal Employment Opportunity, EO 11246, as amended
  • Prohibition against sex discrimination under the Federal Water Pollution Control Act, Section 13 of PL 92-500 (super cross-cutter)
  • Rehabilitation Act of 1973, Section 504, PL 93-112, 29 USC 701 (super cross-cutter)
  • Utilization of Small, Minority and Women's Business Enterprises (DBE’s), EO 11625, 12138, and 12432, (40 CRF Part 33)


Economic and Miscellaneous Authorities

  • Debarment and Suspension, EO 12549
  • Demonstration Cities and Metropolitan Development Act of 1966, PL 89-754, as amended; 42 USC 3331
  • Drug Free Workplace Act, PL 100-690, 41 USC Ch. 81
  • Lobbying Regulation, Section 319 of PL 101-121, 31 USC 1352
  • Preservation of Open Competition and Government Neutrality Towards Government Contractors Labor Relations of Federal and Federally Funded construction Projects, EO 13202, as amended by EO 13208
  • Procurement Prohibitions, Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including EO 11738
  • Uniform Relocation and Real Property Acquisition Policies Act, PL 91-646 (1971), as amended 42 USC 460

Project Qualification and Loan Application Process

Before a political subdivision can receive loan money, their proposed project must be identified on the Project Priority List (found here) and the Intended Use Plan. These are documents required by federal regulation and prepared by the NDDoH annually. To be included on the list, a community should notify the NDDoH of their intent as soon as possible. The CWSRF Questionnaire for Potential Financial Assistance can be found here.

While an application can be processed and preliminary work completed without being on the list, no funds can be transferred to the community until their project appears on the Project Priority List.

Loan application packets can be obtained from the PFA’s website here. All items in the loan application must be completed. One copy of the signed application must be submitted to the NDDoH at the address listed on the instruction page of the application. The NDDoH will send a copy of the loan application to the PFA for its review.

Professional Services

A community will typically require the services of a consulting engineer (a North Dakota registered Professional Engineer) and bond counsel (an attorney or law firm). The consulting engineer is responsible for preparing all required technical documents. These include the facility plan, plans and specifications, bidding documents, operation and maintenance manuals, and others. In addition, the consulting engineer provides onsite inspection services during construction to ensure quality control and construction in accordance with the approved plans and specifications. The North Dakota Department of Health will work closely with the community’s consulting engineer to ensure compliance with federal and state requirements. The North Dakota Public Finance Authority will work with the community and its bond counsel to ensure that all legal and financial requirements are met. Bond Counsel can be found on the PFA website here.

Project Development

SRF Project Flowchart can be found here. And the SRF Project Manual can be found here.

The typical SRF project consists of three steps, the facility plan, plans and specifications, and construction. As the name implies, the facility plan is a planning document that establishes existing conditions, identifies the current problems, projects future conditions at the design year, and evaluates alternatives to solve the existing problems and meet future needs. The evaluation of alternatives includes both a cost effectiveness analysis and an environmental assessment. The intent of the facility plan is to arrive at the most cost effective, environmentally sound solution to the problem. The facility plan must be approved by the North Dakota Department of Health (NDDoH) before the project can proceed to the next step. The Outline for Facilities Planning can be found here and the Cost and Effectiveness Certification can be found here.

When the facility plan is approved, plans, specifications, and bidding documents are prepared based on the recommended alternative from the facility plan. These must comply with, among other things, MBE/WBE and EEO requirements. The Specification Package and Required Bid Language can be found here. Once the documents are approved by the NDDoH, the project can be advertised and bids opened. If the bids are acceptable, the construction contract must be awarded to the low, responsive, responsible bidder following NDDoH authorization. The Bid Document Submittal Checklist can be found here. Construction can now begin at the community's convenience.

At this time, the NDDoH will schedule a preconstruction meeting with the community, consulting engineer and contractor(s) to explain the construction related requirements that must be complied with and to answer any questions that arise. In addition to the preconstruction meeting, periodic interim inspections will be conducted by NDDoH engineers during the construction phase of the project. Since SRF loans are cost reimbursable, construction costs must be incurred before the community can receive payments. Once costs are incurred, the community should submit periodic payment requests to the NDDoH for processing. Payment Request Forms can be found here. Payment should be received by the community within two weeks of receipt of the request by the Department. When construction is completed, the Department of Health will conduct a final inspection to verify compliance with federal requirements, verify that the project was constructed in accordance with the approved plans and specifications, and establish final costs. The Final Document Checklist and Forms can be found here.

Repayment of principle must begin no more than one year after the project is declared operational. Prior to this, the North Dakota Public Finance Authority will work with the community to establish a repayment schedule.

Each loan recipient is required to certify that one year after the initiation of operation date, the project is still meeting design specifications and project performance standards. A sample of the One Year Certification letter can be found here.

Program Information

The Clean Water State Revolving Fund (CWSRF) program was authorized by the U.S. Congress through Title VI of the Clean Water Act (CWA) as amended in 1987. The Act authorizes the Environmental Protection Agency (EPA) to provide federal funds to states to capitalize their CWSRF Programs.

The North Dakota CWSRF Program is jointly managed by the NDDoH and the PFA. The NDDoH receives the Federal Capitalization Grant and is responsible for the technical and overall administrative functions of the program. The PFA, under agreement with the NDDoH, acts as the Department's financial agent and is responsible for the preparation and issuance of bonds, reviewing the financial capability of loan applicants, investing program proceeds, handling loan repayments, financial statement preparation and other necessary financial functions.

Each year, the NDDoH receives a capitalization grant from the EPA and the state of North Dakota is required to provide a 20 percent match; the PFA issues bonds to provide these match funds. Loan repayments are used to retire any outstanding bonds and provide additional loans for project funding. The revolving aspect of the program will assure that North Dakota has funds for needed projects far into the future.

Additional information about the CWSRF program can be found on the EPA’s website here.


Email and Phone Number List

Filter 
Last Name First Name E-Mail Address Program Phone
Abel Chuck cabel@nd.gov MF Drinking Water SRF 701.328.5207
Bartholomay Craig cbarthol@nd.gov MF Operator Training & Inspection 701.328.6626
Bergsagel Dave dbergsag@nd.gov MF Clean Water SRF 701.328.5212
Brown Barrett bjbrown@nd.gov MF Drinking Water 701.328.5209
Bruschwein David dbruschw@nd.gov Municipal Facilities Division 701.328.5259
Carman Patty pcarman@nd.gov Municipal Facilities Division 701.328.5211
Diede Colette cddiede@nd.gov MF Drinking Water SRF 701.328.5163
Feist Julie jffeist@nd.gov MF Operator Training & Inspection 701.328.6628
Fisher Shannon smfisher@nd.gov MF Drinking Water SRF 701.328.5220
Heinle Shawn swheinle@nd.gov MF Operator Training & Inspection 701.328.6627
Herreid Stacey sherreid@nd.gov MF Drinking Water 701.328.5287
Lamphear Tammy tmlamphear@nd.gov MF Drinking Water 701.328.5295
Lydon Rondal (Joe) rLydon@nd.gov MF Drinking Water 701.328.5221
Markhouse Robert rmarkhou@nd.gov MF Operator Training & Inspection 701.328.6623
Nafie Talha tNafie@nd.gov MF Clean Water SRF 701.328.5278
Schafer Jacob jrschafer@nd.gov MF Operator Training & Inspection 701.328.6375
Schmitt Bryan brschmitt@nd.gov MF Drinking Water SRF 701.328.5299
Seerup Josh jSeerup@nd.gov MF Drinking Water 701.328.5257
Stewart Gregg gstewart@nd.gov MF Operator Training & Inspection 701.328.6621
Stoppler Sharmaine sstopple@nd.gov MF Clean Water SRF 701.328.5238
Tillotson LeeAnn ltillots@nd.gov MF Drinking Water 701.328.5293
Tokach-Duran Elizabeth etokachduran@nd.gov MF Clean Water SRF 701.328.5256
Trythall Mike mtrythal@nd.gov MF Drinking Water 701.328.5269
Vo Hao hvo@ng.gov MF Clean Water SRF 701.328.5222
Walsh Jeni jwalsh@nd.gov MF Drinking Water 701.328.5231
Wavra Greg gwavra@nd.gov MF Drinking Water 701.328.5224
Wellman Aaron adwellman@nd.gov MF Drinking Water SRF 701.328.5284
Woldeyes Henok hWoldeyes@nd.gov MF Drinking Water SRF 701.328.5276