Department of Environmental Quality

DEQ has several revolving loan funds for public infrastructure that are funded with federal and state resources for drinking water projects and water pollution control. Additional information is available from the DEQ web page for the revolving loan programs.

The Montana Legislature established the Water Pollution Control State Revolving Fund (WPCSRF) Loan Program for water pollution control projects. The program provides at or below market interest rate loans to eligible Montana entities. DEQ is the administering agency and assures that the technical, financial, and programmatic requirements of the program are met. The Department of Natural Resources and Conservation (DNRC) issues the State's general obligation bonds and makes loans to the project borrowers. Cooperatively, DEQ and DNRC administer the Water Pollution Control State Revolving Fund Loan Program.

Examples of Eligible Water Quality Projects

Wastewater Projects

  • Wastewater treatment plant improvements
  • Interceptors & Collectors
  • Lagoon rehabilitation
  • Engineering & project inspection
  • Land used for disposal purposes

Non-Point Source Projects

  • Agricultural BMPs
  • Manure storage facilities
  • Mitigation banks
  • Estuary protection
  • Urban storm water runoff
  • Ground water protection
  • Landfills
  • Concentrated animal feed operations (CAFOs)
  • No-till farm equipment
  • Wetlands restoration & preservation
  • Stream bank restoration
  • Submerged aquatic vegetation
  • Construction runoff
  • Underground storage tanks
  • Septic system removal or upgrade

Types of Financial Assistance

  • Direct loans and purchase
  • Refinancing of existing debt

Financial Requirements

  • Financial capability to properly operate the system and to repay the loan
  • Loan secured by a Bond or Note
  • Security on Bond is required (debt service reserve and coverage 125%)
  • Maintain financial records

Terms

The current interest rate is 4% with payment schedules not to exceed 20 years.Terms: The current interest rate is 4% with payment schedules not to exceed 20 years.

Application

Applications are available from the Montana Department of Environmental Quality. All entities must request that their project(s) be added to the Priority List and Intended Use Plan. This annual process begins in July to identify projects which may need WPCSRF funding for their project in the upcoming year. Early notification by the applicant is essential to get on the priority list, and a project remains on the list until it has been completed regardless of the funding source(s) used to finance the project. Loans will be offered on a first-come basis until demand exceeds available funds. Ultimately, ranking will be based on water quality and/or public health impacts and financial need.Application: Applications are available from the Montana Department of Environmental Quality. All entities must request that their project(s) be added to the Priority List and Intended Use Plan. This annual process begins in July to identify projects which may need WPCSRF funding for their project in the upcoming year. Early notification by the applicant is essential to get on the priority list, and a project remains on the list until it has been completed regardless of the funding source(s) used to finance the project. Loans will be offered on a first-come basis until demand exceeds available funds. Ultimately, ranking will be based on water quality and/or public health impacts and financial need.

Funds Available

The WPCSRF loan program is designed to provide a perpetual source of financial assistance to Montana communities. Of the combined first round and recycled funds, approximately 25 million dollars are currently available for new projects.Funds Available: The WPCSRF loan program is designed to provide a perpetual source of financial assistance to Montana communities. Of the combined first round and recycled funds, approximately 25 million dollars are currently available for new projects.