MDEQ Awards 140 Million In Water Project Loans

Lansing, MI - The Michigan Department of Environmental Quality (MDEQ) is providing nearly $140 million in loans to fund three municipal water and sewer projects to address infrastructure needs and ensure long‑term water quality.

The loans include nearly $80 million in principal loan forgiveness to provide affordability assistance, implement green practices, and continue to support efforts in Flint.

The 21st Century Infrastructure Commission has reported that there is an $800 million annual gap in funding water-related infrastructure needs. The Clean Water State Revolving Fund (SRF) provides an opportunity to help narrow that gap through low-interest loan financing for wastewater and stormwater improvements.

The SRF was established in 1988 and has since provided low-interest loans totaling $4.85 billion for 591 projects in Michigan. A portion of the SRF is provided by the United States Environmental Protection Agency through capitalization grants.

In addition, the federal Water Infrastructure Improvements for the Nation Act (WIIN) authorizes funding to states in which the President has declared an emergency related to public health threats associated with the presence of lead or other contaminants in drinking water.

Two communities will receive assistance through the SRF program, including:

  • City of East Lansing – A $51.7 million loan that includes $2.1 million in principal forgiveness funds for collection system improvements, a new pump station, and upgrades to the Water Resource Recovery Facility. The estimated completion date for the project is January 1, 2021.
  • Monroe County (on behalf of Bedford Township) – A $10.2 million loan for upgrades and repairs at the Bedford Township Wastewater Treatment Plant. The funds will support three pump stations, as well as the rehabilitation of 24,300 lineal feet of sewer pipes and 83 manholes. This is the second of two loans for this two-segment project. The estimated completion date for the project is October 2, 2021.

WIIN loan assistance will be provided to:

  • City of Flint – $77.7 million in loan assistance at a zero percent interest rate with 100-percent principal loan forgiveness. The loan will fund the completion of a secondary water source pipeline, Dort Street and Cedar Street Reservoir and Pump Station improvements, construction of a chemical feed building, replacement of the Northwest transmission main, water main and water meter replacement, water quality monitoring panels, and contingency service line replacement funding. These projects will enhance the water distribution system by ensuring long-term compliance and protection of public health.

The MDEQ is committed to partnering with local communities and various stakeholders to support ongoing efforts to close the gap on water infrastructure funding, which is necessary to ensure long-term water quality. 

For more information on the SRF loan program visit, www.michigan.gov/cleanwaterrevolvingfund

For more information on Michigan WIIN funding in Fiscal Year 2019, visit

www.michigan.gov/documents/deq/deq-dwmad-mfs-DWRF-DWsupiup2019_630073_7.pdf.