Drinking Water State Revolving Fund

May 30, 2024

Notice of Public Meeting

On June 27, 2024, the Tennessee Department of Environment and Conservation (TDEC) will hold a public meeting to present and receive comments on the federal fiscal year (FFY) 2024/state fiscal year (SFY) 2025 draft Intended Use Plans (IUPs) for the Clean Water and Drinking Water State Revolving Fund (CWSRF and DWSRF).

Please see the public notice document for details.



Drinking Water State Revolving Fund (DWSRF) loans are available for the planning, design, and construction phases of public water systems. DWSRF provides low-interest loans to cities, counties, utility districts, and water authorities for drinking water infrastructure.

DWSRF loan interest rates range from zero percent to market rate depending on the community's economic stability, census data, and financial status determined by the state’s Ability To Pay Index.

Interest rates are fixed for the life/term of the loan and the maximum loan term is 30 years or the design life of the drinking water infrastructure, whichever is shorter.

Small, economically disadvantaged communities are eligible for principal forgiveness, which can cover a portion of the SRF loan, and will significantly reduce the amount owed. Eligibility for principal forgiveness is restricted to communities with a population of 10,000 or less combined with an ATPI of 50 or less.

DWSRF highly encourages the use of green projects to promote drinking water system resilience, water and energy efficiency, and potentially improve water quality in our streams and creeks. Green projects may be eligible for subsidies, including further reduced interest rates. The state encourages public water systems to capitalize on opportunities to protect source water, use green infrastructure stormwater controls, and correct water loss issues. All of these practices have huge benefits to overall watershed health. For more information on how you can green your project, contact SRF.

Communities can be considered for funding if they request to be ranked on our project priority list. This Priority Ranking List (PRL) is developed from reviewing community proposals assistance. Once requests are received projects are ranked. This ranking system forms the basis for eligibility and the allocation of DWSRF loans.

The SRF program solicits requests for projects at the beginning of each calendar year. Applicants can submit a questionnaire to have a project reviewed for potential placement on the SRF Priority Ranking List. Projects must be on the PRL to be eligible to receive financial assistance for the planning, design, and construction of drinking water projects.

The most current PRL for fiscal year 2021 can be found in the DW SRF Intended Use Plan and through the link at the bottom of this page.

More information on the State Revolving Fund program and the application process can be accessed through Navigating the State Revolving Fund (SRF) Loan Program.

Projects Eligible for Funding

Projects that address water quality issues Leakage Problems
Source water or capacity challenges Pressure Issues
Water Storage Water Supply Line Replacement and Rehabilitation

This Page Last Updated: June 10, 2024 at 11:09 AM