The goal of the CWSRF is to fund projects whose purpose is to preserve, protect, or improve water quality.  Under the Clean Water Act, traditional water quality projects whose primary purpose is water protection have been eligible for CWSRF for the entire cost of the project.  For example, wastewater treatment facilities are traditional water quality projects and are eligible in their entirety.  "Non-traditional" projects with a primary purpose other than water quality may be partially eligible for CWSRF financing for the portion of the projects that is clearly related to the preservation, improvement, or protection of water quality.  Below are some issues that may affect the eligibility of all or a portion of a project:

• Proposed point source facilities need to be municipally-owned to be eligible for CWSRF financing. Public ownership means the municipality holds a valid fee simple title to, or other estate or interest in, the project site(s) including all necessary easements and rights-of-way. For land acquisition projects, not-for-profit organizations qualified under Article 49 of the Environmental Conservation Law are eligible applicants.

• For projects with a mix of eligible and ineligible construction components, the eligible portion of the project costs will be prorated or computed by EFC staff.

• CWSRF assistance may only be provided for projects that are consistent with applicable area-wide water quality plans.

• The CWSRF can provide long-term financing for projects receiving third-party funding, for example, Rural Development or NYSDEC grants. CWSRF monies can be used for short-term financing of projects, if available.  Monies from long-term CWSRF funds cannot be used for projects that receive certain grants from USEPA (e.g., Section 319 grants).  Please contact EFC’s Co-funding Coordinator for more information.

• All costs of the project to be financed through the CWSRF need to be documented. In general, the allowable costs include the costs associated with the planning, design, and construction of the water quality components of an eligible project.

There are three general categories of projects eligible for CWSRF financing:

• Point Source
• Nonpoint Source
• National Estuary 

Eligible Applicants

In accordance with the laws, rules, and regulations governing the CWSRF, projects defined as point source projects under Section 212 of the Clean Water Act (CWA) need to be municipally-owned. Therefore, projects such as wastewater treatment plants, sewers and other point source projects need to be owned by a town, village, city, county, public authority, public benefit corporation, or agency of the State of New York. 

The acquisition of land for the purpose of protecting water quality may be a nonpoint source project under Section 319 or a national estuary protection project under Section 320 of the CWA.  Municipalities and not-for-profit organizations which are qualified under Article 49 of the New York State Environmental Conservation Law are eligible applicants for qualified land acquisition projects.

Non-municipal entities may apply for financing CWSRF-eligible nonpoint source projects under Section 319 of the CWA, except for land acquisition projects for water quality protection which only not-for-profit organizaitons may apply.  The eligible nonpoint source projects non-municipal applicants may apply for include, but are not limited to:  brownfield remediation; landfill leachate collection, storage and treatment; landfill gas collection; landfill capping; stormwater management; waterbody restoration; and failing decentralized septic systems.

Ineligible Projects

The following types of projects or project elements are not eligible for CWSRF financing:

• Water supply treatment and distribution system projects, except for the wastewater and waste solids components of these systems.  [Note: Water supply, treatment and distribution system projects are financed by the Drinking Water State Revolving Fund (DWSRF) which is administered by EFC and the New York State Department of Health (NYSDOH)]; 

• Municipal solid waste projects except for the water quality components of these projects;

• Lands and right-of-way easements are generally ineligible for point source projects except land integral to the waste treatment process or as noted for certain NPS and estuary projects;

• The legal, administrative and engineering expense of defending against a state or federal enforcement action (such as a consent order); and

• Routine operation and maintenance (O&M) costs of wastewater treatment facilities or general O&M costs such as staff salaries and fuel for equipment that are outside the scope of a capital project. This includes replacement and repair of minor equipment.

Allowable costs need to be properly documented prior to disbursement of CWSRF funds. For more information, click on Allowable Costs.