The Division of Water (DOW) and the Kentucky Infrastructure Authority, jointly through an interagency agreement, provide communities with funds from the Drinking Water State Revolving Fund (DWSRF) to help them comply with the requirements of the Safe Drinking Water Act.
The DWSRF, also referred to as Fund F, is a 20-year loan program for planning, design and construction of drinking water infrastructure projects. Fund F1, a five-year loan for planning and design, was established to help small communities finance costs prior to construction. If the community applies for a loan for the construction portion under Fund F, the Fund F1 can be rolled over to the Fund F.
The Safe Drinking Water Act Amendments of 1996 created the new DWSRF program. In 1997, KRS Chapter 224A.10-110 was enacted and KAR 17:070 was promulgated to begin a new funding program for construction of drinking water projects. The U.S. Environmental Protection Agency (EPA) has been funding the DWSRF in the form of an annual capitalization grant to the state. The state must provide a 20-percent match to the federal share.
To be considered eligible to receive a DWSRF loan, a project(s) must be identified on the Project Priority List/Intended Use Plan (PPL/IUP) approved by the Energy and Environment Cabinet.
The Water Infrastructure Branch in DOW administers the DWSRF program. It reviews and approves the environmental review, prepares the PPL/IUP and coordinates the EPA's Drinking Water Infrastructure Needs Survey. The Engineering Section of the branch reviews the project design and construction contract documents and monitors the construction progress.
The State Revolving Fund (SRF) and Special Appropriations (SPAP) Section is responsible for the administrative duties associated with the DWSRF. Each community and/or water district seeking funding must submit to the section the application, user charge system/ordinance, engineering procurement/contract, MBE/WBE and pay requests.
Visit EPA's DWSRF site for case studies, fact sheets, handbooks, newsletter, program guidance, reports and programs related to the state revolving fund.