Drinking Water Funding Program Details & Application

About

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.

Application Deadlines & Submittal Changes

The Application Deadline depends on the type of funding and method of delivery. This year, hard copies are optional. Applications may be submitted electronically this year. Please see the highlighted section below for more details. Unless otherwise stated, all applications must be submitted by the deadline below to be included in the next round of funding offers:

For applicants requesting only Bipartisan Infrastructure Law (BIL) funding:

  • The required Funding Application Discussion Meeting must be held by March 8, 2022
  • If electronically submitted, the application must be received by April 8, 2022
  • If hand delivered, the application must be received by 5:00 PM on April 8, 2022
  • If sent by mail, the application must be postmarked by April 8, 2022

For applicants who have no preference between BIL/DWSRF funding or who prefer the DWSRF or Lead Elimination Assistance Program (LEAP) funding:

  • The required Funding Application Discussion Meeting must be held by April 6, 2022
  • If electronically submitted, the application must be received by May 6, 2022
  • If hand delivered, the application must be received by 5:00 PM on May 6, 2022
  • If sent by mail, the application must be postmarked by May 6, 2022

Please note: Applications for the Planning & Design Fund are accepted year-round. Please click the link for more information.

This year, we expect a much higher volume of applications compared to previous years. Therefore, we highly recommend that an electronic copy of the entire application, including all attachments, be submitted either via USB flash drive or by email. If submitting electronically, hard copies are optional.

  • If submitting via USB flash drive, you may submit it alone or include it with the hard copy of your application (use mailing address in top left box of application)
  • If submitting via email, please send to either May.Fornari@vdh.virginia.gov or Howard.Eckstein@vdh.virginia.gov
    • If files are too large and exceed email file attachment limits, it is acceptable to send multiple emails with your application and attachments
    • Alternatively, you may send a Google Drive link (or similar platform) to share access to your application documents
      • Please note: Unfortunately, applications submitted via Dropbox can no longer be accepted. VDH has blocked Dropbox due to the fact that it does not meet the Agency's security standards.
    • Please include in the email subject line "Waterworks/Locality Name - FY23 Application 1 of #"

Please note, we will no longer accept the following items:

  • Electronic copies on CDs - we no longer have access to a disc drive to read these files
  • Applications in bound booklet format - please use 3-ring binders with tabs instead for ease of scanning
    • Where "bound booklet format" is defined as softcover/paperback or GBC/spiral binding

We have implemented these recommendations and restrictions in order to streamline our process. We thank you for your patience and understanding. Please contact us with any questions.

 

Important Changes - New for FY 2023

  1. The Construction Funds Application has been updated, and now the Lead Elimination Assistance Program (LEAP) Application is separate. Please make sure to download the appropriate application as well as the corresponding new instructions for filling out the application.
  2. The Construction Funds Application can also be used to apply for Bipartisan Infrastructure Law (BIL) funding—also known as the Infrastructure Investment and Jobs Act (IIJA). An applicant can apply for either or both of these funding opportunities with a single application. At this time, there is limited information available regarding the BIL funding. VDH will provide updates once more details from EPA are available. Thank you for your patience on this.
  3. The Bipartisan Infrastructure Law (BIL) funds are broken down into three different categories:
    1. Supplemental - has all the same eligibilities that the base DWSRF Program does
    2. Lead Service Lines (LSLs) - VDH anticipates a funding level of approximately $42 million under the BIL for larger infrastructure work
    3. Emerging Contaminants - focuses on PFAS, but also includes the contaminants listed in the Draft Fifth Contaminant Candidate List (CCL 5)
  4. The "Disadvantaged Community" status has been updated to include Environmental Justice Communities. See the Program Design Manual for more information on how the Environmental Justice Community designation is determined.
  5. It is our understanding that Build American Buy American (BABA) will be a requirement for all BIL funded projects and that BABA will replace AIS for DWSRF projects if the loans haven't closed six months after President Biden signed the BIL. Details regarding the BIL and BABA are still unknown. However, VDH will disseminate these details as soon as we receive them from EPA. Thank you for your patience on this.
  6. Public Health Priority points are now awarded to waterworks that are "Taking over, or providing water service to, customers of an abandoned waterworks."
  7. The UEI (Unique Entity Identifier) Number will be replacing the Federal DUNS Number, effective April 4, 2022. Please visit https://www.fsd.gov/gsafsd_sp and click on the green “Help on UEI Transition” button for more details. Additional UEI resources are available below under “Other Fact Sheets/Forms.”

 

Construction Funding Workshops

The in-person Drinking Water Construction Funding Workshops have been suspended for the duration of the COVID-19 pandemic. Until we receive word from the Commonwealth that it is safe to resume regular operations, we will not be able to hold the workshop in person.

In lieu of the in-person workshop, a pre-recorded PowerPoint Presentation with detailed information regarding the FY 2023 application cycle is posted below. To access the presentation, you may either click on the image or the link below to download the presentation. Viewing instructions may also be found below.

FY23 Funding Construction Workshop

 

To view the presentation, please download and open the file. Click on the Slide Show tab at the top of your screen and select the option From Beginning. The presentation should enter full screen mode and the first audio clip should begin playing automatically. To advance the slides, you may use the arrow keys on your keyboard to move forward and backward. Detailed instructions on viewing the presentation are also available.

If you have any further questions, please don't hesitate to contact the FCAP Staff.

 

Manuals

View the manuals below for the Drinking Water State Revolving Fund (DWSRF) Program and the Water Supply Assistance Grant (WSAG) Fund Program. The DWSRF Program Design Manual provides very detailed information on the background of the program, eligibility, and types of financial assistance. We strongly recommend viewing the DWSRF Program Design Manual first prior to filling out Applications.

DWSRF Program Design Manual

WSAG Program Guidelines

 

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.