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Maryland State Government Maryland Department of the Environment

Water Quality Financing Administration

The Maryland Water Quality Financing Administration thanks everyone who submitted an application in December 2015 thru January 2016 for FFY2016/State FY2018 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 2016 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 or (410) 537-3908 with any questions.


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 publicly-owned wastewater facilities with biological nutrient removal.

Bay Restoration Fund Wastewater Grant Program 

  • ENR upgrade at major or minor wastewater treatment plants.
  • Improvements to existing wastewater conveyance systems. (New)
  • Sewer extension to connect homes on septic systems to a BNR/ENR wastewater treatment plant. (New)
  • Nutrient-reducing BAT shared community septic systems. (New)
  • Stormwater (MS4) projects by local governments with a system of charges. (New)

Bay Restoration Fund - Septic System Grant Program

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

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.



For Septic Grants:

Associated Documents


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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