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Maryland State Government Maryland Department of the Environment

Water Quality Financing Administration

Announcing the Federal FY2017/State FY2019 Financial Assistance Solicitation


Maryland Water Quality Financing Administration invites you to apply by January 31, 2017 for capital project funding from the following grant and loan programs:

  • Water Quality State Revolving Loan Fund (WQSRF) – Low interest rate loan and loan principal forgiveness (if eligible) for publicly-owned treatment works projects and publicly or privately-owned non-treatment works projects.
  • Drinking Water State Revolving Fund (DWSRF) – Low interest rate loan and loan principal forgiveness (if eligible) for public or privately-owned drinking water projects.
  • Biological Nutrient Removal (BNR) Program – Grant funds up to 75% of the eligible cost of the BNR upgrade portion of an ENR upgrade at a wastewater treatment plant.
  • Bay Restoration Fund (BRF) Wastewater Program - Grant funds for
    • BNR to ENR upgrade at major or minor wastewater treatment plants (up to 100% of ENR eligible project cost).
    • Improvements to existing wastewater conveyance systems (up to 87.5% of project cost).
    • Sewer extension to connect homes on septic systems to a BNR/ENR wastewater treatment plant (up to $20,000 per home connected).
    • Nitrogen reducing BAT upgrade at shared community septic systems (up to $10,000 per home connected).
    • Stormwater (MS4) projects by local governments with a system of charges (up to 50% of project cost).
  • Water Supply Financial Assistance - Grant funds not to exceed $1.5 million for drinking projects at publicly-owned facilities, based on system size, compliance, and affordability.

Please see the Subsidy Funding Eligibility Charts for more information.  Threshold and funding requirements are discussed in the application forms

If your project will be ready-to-proceed to construction by December 2018, please complete a separate application for each capital project for which you are seeking financial assistance* and submit to MDE per instructions on the last page of the application.  If you previously applied for financial assistance and your project was only partially or not funded, a new/updated application is required.

* Applicants with non-treatment works projects (e.g., MS4 Stormwater BMPs) are strongly encouraged to submit a single funding application as a “program” consisting of multiple BMP projects that will start construction within 12 – 18 months, as opposed to submitting individual project applications.  

All applications must be received by MDE no later than January 31, 2017.

Application Forms

For a Microsoft Word version of an application, please contact Elaine Dietz at 410-537-3908 or


The Maryland Water Quality Financing Administration thanks everyone who submitted an application during the solicitation 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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