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Maryland State Government Maryland Department of the Environment

Water Quality Financing Administration   


Purpose and Mission

The mission of the Maryland Water Quality Financing Administration (WQFA) is to provide financial assistance in the form of low interest rate loans and/or grant funding for clean water and drinking water capital projects across the State. 

Eligible types of projects include:

  • Water quality point source projects
  • Drinking water projects
  • Non-point source pollution control projects
  • Septic system upgrade projects  


The WQFA administers the loan and grant programs described below: 

Financial Program


Water Quality Revolving Loan Program (WQRLF) 

Provides low-interest loans to local governments to finance wastewater treatment plant upgrades, nonpoint source projects, and other water quality and public health improvement projects.

Drinking Water Revolving Loan Program (DWRLF)

Provides low-interest loans to local governments to finance water supply improvements and upgrades.

Water Supply Assistance Grant Program

Helping communities meet their water supply needs.

Biological Nutrient Removal Cost -Share Grant Program

Upgrade of wastewater facilities with biological nutrient removal 

Bay Restoration Fund - Enhanced Nutrient Removal Grant Program

Innovative, state-of-the-art technology at wastewater treatment plants for nitrogen and phosphorus reduction to the Bay

Bay Restoration Fund - Septic System Grant Program

Upgrades of existing septic systems to best available technology for nitrogen reduction to the Bay.

Supplemental Assistance Grant Program

Construction of needed wastewater facilities. Correction of water quality problems.

Linked Deposit Program

Water quality capital improvements

Both loan programs receive federal funding from the United States Environmental Protection Agency (EPA) and offer below market interest rate loans to eligible borrowers, while ensuring the perpetuity of the revolving funds.

The WQFA is authorized to issue revenue bonds subject to approval of the State Board of Public Works and Secretary of the Maryland Department of the Environment.  Bonds issued by the WQFA do not constitute a debt or the full faith and credit pledge of the State or any political subdivision.  The bonds are paid solely from WQFA revenues as pledged under the bond indenture for each of the above Funds.

The WQFA works very closely with MDE’s Engineering and Capital Projects Program (ECPP, formerly the Water Quality Infrastructure Program).  The ECPP is responsible for the development and implementation of capital projects to correct public health and water quality problems and provides restoration measures that lead to water quality and habitat benefits.  The ECPP provides technical assistance to local government and eligible private entities.


Water Quality Financing Administration

The Maryland Water Quality Financing Administration thanks everyone who submitted an application during the solicitation for FFY2014/State FY2016 funding and/or participated in the public comment period. The following final documents and responsiveness summary have been submitted to the U.S. Environmental Protection Agency to request the FFY 2014 Clean Water and Drinking Water Capital Grants under the Federal Clean Water Act and Safe Drinking Water Act, respectively:

Clean Water (Point Source and Nonpoint Source) Documents

Drinking Water Documents

Please contact Elaine Dietz at elaine.dietz@maryland.govor (410) 537-3908 with any questions.



  • Maryland Water Quality Financial Statements and Supplemental Schedules Together With Report of Independent Public Accountants for the Years Ended June 30, 2014 and 2013 
  • Maryland Water Quality A-133 Supplemental Financial Report Together With Report of Independent Public Accountants
  •  For Septic Grants:

  • Program Implementation Guidance FY 2015 (Appendix B) 
  • Associated Documents


    Funding Requirements for Preliminary Engineering Reports (Effective October 1, 2015)   Funding Requirements for Preliminary Engineering Reports (Effective October 1, 2015



    For additional information regarding the SRF Loan Programs, please contact Jag Khuman, Director, Water Quality Financing Administration by: Phone: (410) 537-3119 or E-Mail:

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