Drinking Water Funding Program Details & Application


FCAP accepts applications on a year round basis. However, FCAP will only conduct one round of evaluations submitted by the deadline. Projects addressing eligible acute, chronic health/SDWA compliance or public health problems will be given higher priority over other projects. Both construction and non-construction assistance are available.

Construction Assistance

Construction Loan

Interest rates from 3% to ceiling rate (1% below municipal bond market rates). Maximum term 20 years. Lower rates and longer terms (up to 30 years) are considered for waterworks meeting disadvantaged criteria.

Construction Grant

Will be considered for waterworks meeting disadvantaged criteria.

Force Account Construction

Projects are completed with non-contractor related labor.

Non-Construction Assistance

Planning and Design Funds

Projects up to $35,000 to be awarded. Applications accepted year-round. Funds are especially for small, disadvantaged community waterworks.

For more detailed information on the construction application procedure, please view the Drinking Water Construction Funding Workshop recording and accompanying Frequently Asked Questions (FAQs). This webcast will guide you through program criteria, program applications, and the project scheduling steps needed for smooth project implementation.

View the Webcast Download the Handouts


Application Deadline

Unless otherwise stated, all applications must be submitted (or postmarked) by 4PM on April 1, 2021 for evaluation during the next round of funding offers.


Important Changes - New for FY 2021

  • There will be a new scoring system for Lead Service Line Replacement (LSLR) Projects. It is designed so that LSLR projects will be evaluated against other LSLR projects rather than having to compete against all the other construction projects for funding. The new LSLR Scorecard can be viewed by clicking on the link.


Application Forms & Instructions

Please view the Funding Announcement Letter for additional details on the application period for this fiscal year. Please also note that there is no separate application for WSAG funds. You may use the Application for Construction Funds form below to submit an application to either the DWSRF program or the WSAG program, and FCAP will determine the source of the funding. Click on the bars below to expand each section.

Applicants for Construction Funds should apply for all infrastructure projects they are considering over the next four or five year period. VDH is in a position to fund large capital improvement projects. Please note that very large projects may need to be phased. Construction loan funds are disbursed on a cost reimbursement basis. All requests for disbursement of loan funds must be substantiated by invoices reviewed and approved by the owner. VDH will review and approve such requests prior to the actual disbursement of funds. All submittals for disbursement are to be made in accordance with the latest version of VDH's Procedural Guidelines.

Please click the link to view the Instructions for filling out the application.

The Construction Funds Application is available to download as a PDF or a Word document.

The 1996 Amendments of the Safe Drinking Water Act (SDWA) encourages States to provide technical assistance to waterworks. To meet these requirements, the Virginia Department of Health (VDH) Office of Drinking Water (ODW) created the Planning & Design Fund Program to provide financial assistance for eligible projects at community and nonprofit, non-transient non-community (NTNC) waterworks.

VDH will consider up to three applications from a waterworks owner in each funding year. However, due to the demand for the Program and limited funds for projects, offers will be limited to a maximum of two grants, of not more than $35,000 each, per eligible waterworks owner per funding year. Multiple applications from one owner must be for different areas of a waterworks’ infrastructure (e.g. source, treatment, distribution, security, etc.) or for a completely different waterworks (i.e., a waterworks with a different PWSID #). VDH reserves the right to fund a project received at any time during the year, or to by-pass any project for lack of progress at any time. VDH also reserves the right to decide if funding is contingent upon adjusting water rates and/or requiring savings for financial reserves. Funding is not contingent on receiving a local match.

Please click the link to view the Instructions for filling out the application.

The Planning & Design Fund Application is available to download as a PDF or a Word document.

VDH is encouraging publicly-owned systems to consider refinancing local debt obligations related to drinking water infrastructure where construction was started and debt was incurred after July 1, 1993. Typically, refinance loans will be 20 year loans at the core term interest rate. VDH reserves the right to offer a 30 year loan if the waterworks meets disadvantaged criteria. Disadvantaged criteria is explained in greater detail in the DWSRF Program Design Manual.

The Refinance Loan Application is available to download as a PDF or a Word document

Source water protection, as defined by the EPA, involves managing potential sources of contaminants and preventing pollutants from reaching sources of drinking water, which is often more efficient and cost-effective than treating drinking water later. Loan funds are available to: (1) Community and non-profit noncommunity waterworks to acquire land/conservation easements, and (2) Community waterworks, only to establish local voluntary incentive-based protection measures. Learn more about VDH's Source Water Protection Program by clicking on the link.

The 1452K Source Water Protection Initiative Application is available to download as a PDF or a Word document.

In an effort to accelerate the removal of lead in drinking water, the DWSRF Program has made funding available for the complete removal of the public and/or private portions of lead service lines (LSLs). In conjunction with other available funds, this program intends to provide up to $5,000 as grant funds (of which up to $500 may be eligible as an admin fee) for each service line replaced on the homeowner's side of the meter. The LSL includes pipe entry into the structure (up to shut off valve) but excludes the premise plumbing. To learn more about the Lead Elimination Assistance Program (LEAP), please click on the link.

The Lead Elimination Assistance Program (LEAP) Application is currently under construction, but will soon be available to download as a PDF and Word document.