Drinking Water State Revolving Fund (SRF) Loan Program

What's Happening?

We are considering permanent changes to Chapter 246-296 WAC to implement RCW 70A.125.160, the Federal Safe Drinking Water Act, and to conform to the federal Bipartisan Infrastructure Law (BIL). These changes would:

  • Amend definition of “disadvantaged community,"
  • Amend loan terms to allow for partial or full loan forgiveness,
  • Amend or remove project requirements and priority rating and ranking criteria.

To date we have:

  • Filed a CR-101: Proposal Statement of Inquiry on May 3, 2023, to consider permanent rule changes to chapter 246-296 WAC;
  • Published an environmental justice notice;
  • Held three public listening sessions on the rulemaking;
  • Held one listening session with tribal leaders and partners about the rulemaking;
  • Held workshops during water industry conferences;
  • Have plans to file a completed environment justice assessment; and
  • Have plans to hold future community engagement.

Why?

The rulemaking is necessary to allow additional disadvantaged and non-disadvantaged communities to qualify for principal forgiveness of an SRF loan in conformance with the requirements under BIL. The intent of the rulemaking is to protect public health by broadening the types of infrastructure improvements that would qualify for SRF loans, in addition to traditional funding uses such as replacing aging infrastructure, installing treatment to remove regulated contaminants, restructuring failing water systems, and responding to public health emergency events.

Rulemaking Files

To ensure that the department remains in conformance with the requirements of BIL while the permanent rule is being considered, emergency rules will need to be adopted for the 2022 and 2023 SRF loan cycles. Emergency rules remain in effect until the awarded construction loans are funded by the department.

Documents What's This Date Filed

CR-101-Preproposal Statement of Inquiry (PDF)

Announces intent of permanent rulemaking.

May 3, 2023

CR-103E-Emergency Rulemaking Order (PDF)

2022 Construction Loan Guidelines (replaced with 2023 guidelines): Adopts temporary rule amendments to SRF loan terms. February 13, 2023
CR-103E-Emergency Rulemaking Order (PDF) 2023 Lead Service Line Loan: Adopts temporary rule amendments to SRF definitions, loan eligibility and application requirements, and Project priority rating and ranking criteria. February 28, 2023
CR-103E-Emergency Rulemaking Order (PDF) 2023 Construction Loan Guidelines: Adopts temporary rule amendments to SRF loan terms, definitions, loan eligibility and application requirements, and Project priority rating and ranking criteria. August 30, 2023
CR-103E-Emergency Rulemaking Order Extension of August 30, 2023, Emergency Rule: Adopts temporary rule amendments to SRF loan terms, definitions, loan eligibility and application requirements, and Project priority rating and ranking criteria. December 29, 2023

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