Water Infrastructure Fund (WIF)
1. What can the program do for you?
The Water Infrastructure Fund (WIF) provides financial assistance for the planning, design and construction of State Water Plan and Regional Water Plan projects. The 2012 State Water Plan estimated that $53 billion will need to be spent by regional and local water supply entities between 2010 and 2060 to meet the additional water supply needs of the state. Of that amount, regional water planning groups have estimated that more than $26 billion in financing will need to come from the state.
2. Who can borrow?
To apply for financial assistance, the applicant must be a political subdivision of the state. Political subdivisions include municipalities, counties, river authorities, special law districts, water improvement districts, water control and improvement districts, irrigation districts, water supply corporations, and groundwater districts. Eligible applicants also include non-profit Water Supply Corporations.
3. What types of projects can I use the loan funding for?
Projects must be recommended water management strategies in the most recent TWDB-approved regional water plan and approved State Water Plan. Funds may not be used to maintain a system or to develop a retail distribution system.
4. Are loans and grants offered?
Due to statue limitations, only loans are offered through the WIF. All loans through this fund are offered at a subsidized interest rate that currently is 100 basis points below the TWDB’s cost of funds during FY12 and FY13. Repayment periods are a maximum of 20 years.
In order to advance projects which have significant development lead times, a portion of the WIF is available specifically for planning, design, permitting, and other costs associated with state or federal regulatory activities. Utilizing this WIF-Deferred option, an applicant may defer all interest and principal payments for up to 10 years, or until the end of construction of the project, whichever is sooner. Interest is not accrued during the deferral period and the loan is amortized over the final 10 years.
Current interest rates are available.
5. What project components can I receive funding to complete?
The pre-design funding option is available for most water supply, treatment, and quality enhancement projects and allows an eligible applicant to receive a loan commitment on the basis of preliminary engineering, environmental, economic, and social information. Funds for completing detailed planning, including environmental studies, are provided at closing, whereas funds for design, preparation of final plans and specifications, and construction are placed in escrow until needed.
If the pre-design funding option is not used, ap¬plicants seeking only construction phase funding must develop plans and specifications and have them approved, obtain all necessary permits, and open bids prior to closing the loan.
6. How much funding is available?
Currently, the WIF has no available funds until appropriations are received from the Legislature. For up to date funding availability, please contact Darrell Nichols at (512) 463-8491.
7. When can I apply?
The applicant is encouraged to meet with TWDB staff for assistance in preparing the application and to discuss the terms of the funding and project eligibility.
Abridged or complete applications are due August 1 and February 1 of each year. An abridged application contains sufficient information for the TWDB to prioritize projects based on the available funds. Applications are prioritized, and the prioritization is approved by the Board in September and March of each year. If a project is prioritized above the funding line, applicants must submit a complete application within 30 days of the Board-approved prioritization.
8. What are the Conditions of Financial Assistance?
For detailed information of the Conditions of Financial Assistance
9. Where can I find more information regarding the financial assistance application?
Interested applicants will need to complete a financial assistance application for agency review and Board approval. For more information, contact Darrell Nichols at (512) 463-8491.
- Projects must be recommended strategies in the adopted 2012 State Water Plan or Regional Water Plans.
- A water conservation and drought contingency plan is required for financial assistance greater than $500,000 as mandated by the Texas Administrative Code Title 31 §363, Subchapter A.