Environmental Loans May 2026 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.
Webinar For The State Fiscal Year 2027 Lead Service Line Replacement Program
You are invited to join our webinar on May 28 at 10 a.m. to discuss the Bipartisan Infrastructure Law-funded Lead Service Line Replacement Program details and tips that were not covered in the webinar for the Safe Drinking Water Loan Program State Fiscal Year 2027 Draft Intended Use Plan, and to take questions.
For details on webinar participation, visit the DNR’s Project Lists and Intended Use Plans webpage. The webinar will be recorded and posted to the same webpage for those unable to attend on May 28.
Disadvantaged Business Enterprise Office Hours
As described in the Environmental Loans February 2026 Newsletter, the Wisconsin Department of Transportation (WisDOT)’s unified certification programs (UCP) directory of disadvantaged business enterprises (DBE) is not available due to a change in federal guidance. Rules relating to DBE solicitation for the Clean Water Fund Program and the Safe Drinking Water Loan Program remain in effect and are not directly impacted by the change at WisDOT.
Projects that are seeking funding from either the Clean Water Fund Program or the Safe Drinking Water Loan Program must continue to make good faith efforts to solicit DBEs.
The rules require good faith efforts when the municipality is hiring prime contractors and when the prime contractor is hiring subcontractors. To do so, municipalities and prime contractors have a choice of how to solicit DBEs: (1) publishing a bid advertisement that encourages DBEs to submit a proposal, and/or (2) contacting DBEs listed on an accepted directory to solicit bids.
To answer questions about DBE solicitation requirements, we will be hosting two office hour sessions over the next two weeks. There will be no presentation or agenda and will instead focus on answering attendees’ questions.
DBE Office Hours:
- May 26 from 11 a.m. to noon
- May 29 from 11 a.m. to noon
Microsoft Teams Meeting:
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Join online on Microsoft Teams.
- Meeting ID: 291 366 509 024 441
- Passcode: gM7iD3jj
The Future Of Funding After BIL/IIJA
The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA), will taper off after state fiscal year 2027. This legislation provided over $900 million in additional funding in federal fiscal years 2022-2026 through the Wisconsin Department of Natural Resources' Environmental Loans programs!
Principal Forgiveness
The most immediate and noticeable impact will be the amount of principal forgiveness in both programs. Starting in state fiscal year 2028, principal forgiveness levels will be significantly lower due to the end of the BIL Supplemental funding. Applicants should expect changes to the Clean Water Fund Program and Safe Drinking Water Loan Program principal forgiveness policies. While we don’t yet know exactly what this looks like, it will likely lead to lower principal forgiveness caps and more restrictive disadvantaged criteria with fewer tiers of eligibility. This could also include the elimination of, or phasing out of, one or more priority principal forgiveness programs in the Clean Water Fund Program. Keep an eye out for future program messaging this summer as we work through these changes and solicit feedback on the proposed changes.
Loan Capacity
Loan capacity is projected to remain steady, even as BIL funding begins to wind down.
Lead Service Line Replacement and Emerging Contaminants Programs
The Emerging Contaminants (EC) and Lead Service Line (LSL) Replacement programs will likely continue for several state fiscal years after BIL as these programs will receive reallocated funds from states that did not use the entirety of their BIL capitalization grants. However, reallocation amounts will be much smaller than the BIL capitalization grant amounts that have funded the programs during federal fiscal years 2022 through 2026. Additionally, unused EC principal forgiveness will roll forward from previous years, as well as EC or LSL principal forgiveness that is released through project closeouts, also potentially extending EC and LSL funding longer.
Application Deadlines
As a reminder, applications for state fiscal year 2027 funding (the last year of BIL/IIJA funding) are due June 30, 2026, for the Safe Drinking Water Loan Program and Sept. 30, 2026, for the Clean Water Fund Program.
EIF Tips To Prevent Financial Fraud
The Environmental Improvement Fund (EIF) has been made aware of municipalities facing cybersecurity threats that can disrupt essential public services, compromise sensitive data including financial and bank account information, and erode community trust. Implementing robust cybersecurity practices helps ensure public safety, data privacy, and the reliable delivery of vital community services.
As a reminder, the EIF program will only request banking information at the time of loan closing for the purpose of setting up the initial loan closing wire and any future disbursements. For the May 1 and Nov. 1 debt service repayments, municipalities are responsible for initiating and scheduling their own debt service payments from the options listed in the original Invoice.
Please note that the EIF program’s designated banking institution is U.S. Bank. In the event of any changes to this information, municipalities will be formally notified on the official invoice.
Additionally, EIF invoices are emailed approximately 45 days prior to the payment due date from doaeif@wisconsin.gov. Payment due dates are fixed and occur on May 1 and Nov. 1 of each year.
The EIF team will never request changes to banking information after invoices have been issued.
Report All Suspicious Communication
If you believe your municipality may have been the target of fraudulent or suspicious communication, please contact one of the following:
- Wisconsin Statewide Intelligence Center:
- Wisconsin Cyber Response Team
- Phone: 800-943-0003 Option 2
- Division of Criminal Investigation Cyber & Financial Crimes Unit
Wisconsin Statewide Intelligence Center
The Wisconsin Statewide Intelligence Center is operated by the Wisconsin Department of Justice-Division of Criminal Investigation. This center serves as the primary focal point for threat information sharing among federal, state, local and tribal law enforcement, emergency management, fire service, public health, corrections, military and private sector partners for the state. The center works to help prevent and respond to terrorism, cyberattacks, organized crime, and other public safety threats. They also provide training, outreach, and continuing education for government and private sector partners.
Wisconsin Cyber Response Team
The Wisconsin Cyber Response Team is a volunteer emergency response group administered by the Wisconsin Emergency Management through the Department of Military Affairs. This team is made up of cyber security and information technology professionals that provide monthly, quarterly, and yearly training, along with cybersecurity preparedness planning, to help prevent future cyber-attacks. They also provide incident response support, including remote digital forensics analysis and on-site incident response. These training and support services are available to county/tribal governments, municipalities, public/private K-12 schools and libraries, public utilities, and healthcare facilities.
Additional Resources
Security Measures for Wastewater Systems
Dave Calhoon’s Retirement
Dave Calhoon, long-time loan project manager, retired from the Wisconsin Department of Natural Resources (DNR) Environmental Loans Section. His last day in the office was April 17, 2026. Dave’s existing active projects have been reassigned to DNR loan project managers, who will be in contact with their newly assigned communities.
Dave came to the DNR from the Department of Commerce. Dave previously served as a half-time program assistant in the DNR Bureau of Community Financial Assistance. During the summer of 2000, he was hired as a half-time loan project manager.
In the spring of 2013, Dave took a position in the Bureau’s Grants Section. He gained experience as a grants manager working on nonpoint source grant projects. In September 2015, Dave returned to the Bureau’s Environmental Loans Section. We were pleased to have his expertise and knowledge once again.
During his time in our section under the official title of Financial Assistant Specialist-Senior, Dave filled various roles, serving as a loan project manager, Pilot Projects Program specialist and Compliance Maintenance Annual Report specialist. Over the last several months, he mentored Sarah Bolitho in the ways of the Pilot Projects Program and trained Bryan Patek on equipment replacement funds, user charge systems and sewer use ordinances.
In his former life Dave was a professional musician. He played French horn, taught music and still enjoys music as an amateur. An avid cross-country skier, Dave served as President of the Madison Nordic Ski Club and has completed numerous Birkies. He also enjoys several other outdoor activities such as camping, canoeing, cycling and hiking. Dave has a daughter and a granddaughter.
We already miss Dave’s patience, thoroughness and sense of humor. Congratulations on your retirement, Dave!
Katherine Miller’s Retirement
Katherine Miller, Deputy Capital Finance Director within the Wisconsin Department of Administration (DOA) Division of Executive Budget and Finance, will be retiring after 30 years of state service. Her last day in the office will be May 29, 2026.
Katherine has worked for the State since 1996, serving many years as a budget analyst within the Department of Transportation. Since joining the Capital Finance Office in November 2015, Katherine has worked on numerous state level bond issues and the authorization, sale, issuance and post-issuance compliance activities of State debt, including the Environmental Improvement Fund Revenue borrowing program.
Since 2019, she has been instrumental in the day-to-day operations of the State’s Clean Water and Drinking Water State Revolving Funds by underwriting many loans to communities within Wisconsin for wastewater and drinking water infrastructure projects. In 2022, Katherine was appointed as Wisconsin’s Deputy Director of the Capital Finance Office and began leading the financial management of the State’s Environmental Improvement Fund. She has spent seven years as board member for the Wisconsin chapter of Women in Public Finance.
Please join us in thanking Katherine for her excellent work and congratulating her on her upcoming retirement. Contact her at 608-266-2305 or KatherineC.Miller@wisconsin.gov.
Upcoming Deadlines And Events
The deadlines for the notice of intent to apply submittal, financial assistance application submittal and loan closing are set in the corresponding program's annual intended use plan that is available on the DNR’s Project Lists and Intended Use Plans webpage.
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May 28: At 10 a.m., the DNR will host a webinar to discuss the Bipartisan Infrastructure Law-funded Lead Service Line Replacement Program details and tips that were not covered in the webinar for the state fiscal year 2027 Safe Drinking Water Loan Program draft intended use plan and to take questions.
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May 31: It is strongly recommended that executed construction contracts be submitted to the DNR loan project manager for the state fiscal year 2026 Safe Drinking Water Loan Program projects by this date (earlier submittal is encouraged).
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June 2026: The DNR intends to publish the state fiscal year 2027 Clean Water Fund Program draft intended use plan for public comment. The DNR intends to host a webinar during the public comment period to discuss changes in the draft intended use plan and respond to questions from attendees.
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June 8: The last date to submit written comments on the state fiscal year 2027 Safe Drinking Water Loan Program draft intended use plan to Suzan.Hasheider@wisconsin.gov.
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June 15: Public Service Commission-approved water rate case orders due to the DNR loan project manager for the state fiscal year 2026 Safe Drinking Water Loan Program projects.
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June 30: Application deadline if competing for principal forgiveness for the state fiscal year 2027 Safe Drinking Water Loan Program funding cycle. The DNR recommends that all applicants (even those not competing for principal forgiveness) submit an application by the June 30 deadline due to potential limitations on loan capacity. Information on this application process is available on the DNR’s Online Systems webpage.
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June 30: Readiness-to-proceed deadline for the state fiscal year 2026 Clean Water Fund Program principal forgiveness projects. All required bid documentation, including executed construction contracts, is due for wastewater and storm water projects. Failure to meet this deadline will result in forfeiture of principal forgiveness funds.
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Aug. 27: Requests for disbursements are due to the DNR at noon on Thursday, Aug. 27 to be paid on the disbursement date of Wednesday, Sept. 9 (schedule adjusted for Labor Day).
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Sept. 23: Final loan closing date for the state fiscal year 2026 Safe Drinking Water Loan Program projects.
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Sept. 30: Application deadline if competing for principal forgiveness for the state fiscal year 2027 Clean Water Fund Program funding cycle. The DNR recommends that all applicants (even those not competing for principal forgiveness) submit an application by the Sept. 30 deadline due to potential limitations on loan capacity. Information on this application process is available on the DNR’s Online Systems webpage.
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Sept. 30: Last recommended date for submitting Application to Increase Water Rates to the Public Service Commission of Wisconsin for the state fiscal year 2027 Safe Drinking Water Loan Program projects.
Newsletter Subscription
For timely delivery of future newsletters and bulletins, please send an email request with your contact information to Kay Christensen, DNR Environmental Loans Section outreach coordinator, at Kay.Christensen@wisconsin.gov. She will add you to the email list. If you want, she can also remove you from this list.
The DNR Environmental Loans Section tries to publish a newsletter every 1-2 months. Previous newsletters and bulletins are available on our News webpage.
Note: You can also sign up to receive updates from the Wisconsin DNR on diverse topics.
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