Environmental Loans September 2024 Newsletter
The Wisconsin Department of Natural Resources (DNR)’s Environmental Loans programs provide affordable financial assistance to Wisconsin communities for water infrastructure projects that protect and improve public health and water quality for current and future generations.
New Market Rate Effective Oct. 1
The Wisconsin Department of Administration (DOA) will decrease the market rate for financial assistance agreements (loans) approved by a borrower’s governing body on or after Oct. 1, 2024. The new market rates will be as follows:
- Market rate for loans that have a final maturity of 20 years or less will decrease from 4.30% to 4%.
- Market rate for loans that have a final maturity of 21 to 30 years will decrease from 4.50% to 4.20%.
- The rates for BIL-funded lead service line (LSL) projects will remain at 0.25%.
The Clean Water Fund Program and the Safe Drinking Water Loan Program subsidy buys down the market rate on loans; the standard interest rate is 55% of market rate. Learn more about the market and interest rates for the Environmental Loans programs on the DNR’s Interest Rates webpage. Please direct any questions or concerns about rates to DOA staff at DOAEIF@wisconsin.gov.
Upcoming Deadlines And Events
The notices of intent to apply, applications and loan closing deadlines are set in the corresponding program's annual intended use plan (IUP). The IUPs are available on the DNR's Project Lists and Intended Use Plans webpage.
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Sept. 25: Final loan closing date for the state fiscal year 2024 Safe Drinking Water Loan Program projects.
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Sept. 30: Application deadline if competing for principal forgiveness for the state fiscal year 2025 Clean Water Fund Program funding cycle. The DNR recommends that all applicants (including those not competing for principal forgiveness) submit an application by the Sept. 30 deadline due to potential limitations on loan capacity. See the DNR's Loan Capacity webpage for more information. Note the following reminders:
- Submit the plans and specifications to the DNR Bureau of Water Quality with the Clean Water Fund Program application.
- Priority score reevaluation requests are due within 30 days of the Clean Water Fund Program application deadline date.
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Sept. 30: Last recommended date for submitting rate applications to the Public Service Commission of Wisconsin for the state fiscal year 2025 Safe Drinking Water Loan Program projects.
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September 2024: The DNR intends to publish the state fiscal year 2025 Safe Drinking Water Loan Program draft funding list.
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Oct. 18: Final date for submitting the Online Submittal Authorization Certificate (Form 8700-377) before the state fiscal year 2026 notice of intent to apply deadline.
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Oct. 31: Notice of intent to apply deadline for the state fiscal year 2026 Clean Water Fund Program and Safe Drinking Water Loan Program funding cycles.
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November 2024: The DNR intends to publish the state fiscal year 2025 Safe Drinking Water Loan Program final funding list.
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December 2024: The DNR intends to publish the state fiscal year 2025 Clean Water Fund Program funding list.
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Spring 2025: The DNR intends to publish the state fiscal year 2026 Clean Water Fund Program and Safe Drinking Water Loan Program project priority lists.
*If a deadline falls on a weekend or legal holiday, that deadline is extended to the next business day, per s. 990.001(4), Wis. Stats
New Transfer Option For Disbursements
The Wisconsin Department of Administration (DOA) now allows disbursements that occur after the loan closing to be sent via an automated clearing house (ACH) versus a wire transfer. The ACH and wire transfers differ in speed and cost. The loan closing disbursement must be a wire transfer to ensure the municipality receives the first disbursement on loan closing day so that the loan can successfully close.
Some municipalities have chosen to have subsequent disbursements be sent via an ACH instead of a wire transfer because their bank charges wire fees. These fees can range from as low as $10 up to $45 and can be doubled in the case where a municipality’s bank needs the services of an intermediary bank to receive the wire transfer first before sending it to the municipality’s bank. The downside of an ACH is that sometimes it can take up to three business days for the funds to appear in the municipality’s bank account. The municipality is required to reimburse itself or pay outstanding invoices within three days of receiving the funds. The three-day period does not start until the funds have been received in the municipality’s bank account.
As a reminder, disbursements from the Environmental Improvement Fund must be deposited into a non-interest-bearing account. Also, if multiple disbursement requests are made for a single disbursement date, a single wire transfer or ACH will be sent. If a municipality is requesting disbursements from multiple projects and the funds are set to go into the same bank account, one combined wire transfer or ACH will be sent.
If your bank account information has changed or if you would like to have disbursements sent via ACH after loan closing, please send an email to Rachel Liegel, DOA Capital Finance Officer, at Rachel.Liegel1@wisconsin.gov and DOAEIF@wisconsin.gov to request this change. If the bank account information has changed, Rachel will then send you a link to the State of Wisconsin’s secure portal (WIBox) where you can upload the new bank account information and a list of the information that is needed. Please do not directly email any bank account information to Rachel or the Environmental Improvement Funds’ email address. DOA prefers to use the portal so that the information is sent more securely.
Online System Access And Authorization Reminders
If you are a consultant, the municipality must authorize you to submit online materials on its behalf by completing an Online Submittal Authorization Certificate (Form 8700-377).
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Friday, Oct. 18, 2024, is the final date to submit this certificate before the state fiscal year 2026 notice of intent to apply (ITA) deadline.
We recommend the municipality or its designated representatives request access to the online systems at least two weeks prior to the ITA/application deadline. Requests received within 48 hours of the ITA/application deadline cannot be accommodated. Access instructions and links to the online systems are available on the DNR’s Online Systems webpage.
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