Environmental Loans September 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.
Market Rate Increase Effective Oct. 1
The market rates for Clean Water Fund Program and Safe Drinking Water Loan Program loans with municipal meetings (at which the municipal governing body signs the resolutions approving the municipal obligations and the financial assistance agreements) on or after Oct. 1, 2026, will increase for tax-exempt and taxable financings.
The market rates will be as follows:
- The market rate for tax-exempt loans with loan terms of 20 years or less will increase from 4.300% to 4.700%, and loans with terms of 21-30 years will increase from 4.500% to 4.900%.
- The market rate for taxable loans with loan terms of 20 years or less will increase from 4.778% to 5.222%, and loans with terms of 21-30 years will increase from 5.000% to 5.444%.
The Lead Service Line Replacement Program interest rate is not tied to the current market rate and is instead set at 0.25%. Learn about market rates and program-subsidized interest rates on the DNR’s Interest Rates webpage.
As always, the Environmental Improvement Fund encourages applicants to diligently move forward toward closing loans as quickly as possible.
The Wisconsin Department of Administration will continue to monitor the municipal bond market and make recommendations in early December for the municipal meetings occurring on or after Jan. 1, 2027.
Please direct any market or interest rate questions or concerns to the DOA Capital Finance Office at DOAEIF@wisconsin.gov.
Potholing Investigation Program And Service Line Inventories
The Wisconsin Department of Natural Resources has secured funding to assist community water systems with investigating and identifying the material of lead status unknown service lines by conducting potholing investigations (the Potholing Investigation Program). The DNR is making these services available to support compliance with the federal Lead and Copper Rule Revisions and Lead and Copper Rule Improvements requirements for service line inventories and replacements. Potholing investigations are anticipated to begin in late 2026 and continue through 2028, possibly longer depending on availability of funds.
Community water systems interested in being considered for the Potholing Investigation Program must fill out, sign and submit an Expression of Interest form no later than Oct. 15, 2026. The completed form can be returned via email to Wisconsin.LSLI@Jacobs.com or to the water systems’ DNR lead and copper field specialist. The CWS may also call 1-414-465-8649 for more information.
Note: Submission of the EOI form does not guarantee participation in the Potholing Investigation Program. Responses will be used by the DNR to assess interest and prioritize available resources.
Prevent And Prepare For Cyberattacks On Public Drinking Water And Wastewater Systems
Recent cyberattacks disrupted internet-connected operational technology devices across several U.S. critical infrastructure sectors through malicious project file interactions and manipulation of data on human machine interface and supervisory control and data acquisition displays. In a few cases, this malicious activity caused operational trouble and financial loss.
In light of recent cybersecurity threats to drinking water and wastewater systems, the DNR encourages you to closely review the following resources and share them with any systems that might not be as aware of the services.
Grant Opportunity
The State and Local Cybersecurity Grant Program is a federal grant administered by Wisconsin Emergency Management and the Wisconsin Department of Administration’s Division of Enterprise Technology that provides support for units of government that meet certain criteria. The full list of eligible activities can be found in the Notice of Funding Opportunity.
Federal Emergency Management Agency, WEM and DET guidance for the grant opportunity, including application requirements, are available online:
Questions and feedback about the grant and application process should be submitted to SLCGP@wisconsin.gov.
Advisory
The U.S. Cybersecurity and Infrastructure Security Agency’s updated “Iranian-Affiliated Cyber Actors Exploit Programmable Logic Controllers Across US Critical Infrastructure” advisory includes a summary; description of the last update; affected products; key actions; background information; technical details; indicators of compromise; cyber-threat actor tactics, techniques and procedures; mitigations; device manufacturers; validation of security controls; resources and contact information.
Cybersecurity For SRF-Funded Projects
The U.S. Environmental Protection Agency’s “Strengthening And Integrating Cybersecurity Measures Into State Revolving Fund Funded Projects” document includes tools and resources available to utilities that receive Clean Water or Drinking Water SRF assistance and includes the EPA’s free Cybersecurity Evaluation Program and the CISA’s free vulnerability scanning (covered on pages 2–3).
Additional Resources
Read the DOA's Cybersecurity For Municipalities bulletin published Oct. 22, 2025.
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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Sept. 17, 2026: At 2:30 p.m., the DNR will host a webinar to discuss the Environmental Loans Program Process Improvements Proposal.
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Sept. 23, 2026: Final loan closing date for the state fiscal year 2026 Safe Drinking Water Loan Program projects.
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Sept. 30, 2026: 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, 2026: 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.
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October 2026: The DNR intends to publish the state fiscal year 2027 Safe Drinking Water Loan Program draft funding list.
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Oct. 7, 2026: The last date to submit written comments on the Environmental Loans Program Process Improvements Proposal to MatthewR.Marcum@wisconsin.gov.
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Oct. 29, 2026: Requests for disbursements are due to the DNR at noon on Thursday, Oct. 29 to be paid on the disbursement date of Tuesday, Nov. 10 (schedule adjusted for Veterans Day).
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Attention — Oct. 31, 2026: The notice of intent to apply (ITA) submittal requirements are expected to change and the Oct. 31 deadline is planned to be moved back — date to be determined — for the state fiscal year 2028 Clean Water Fund Program and Safe Drinking Water Loan Program funding cycles.
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Sign up for the newsletter to get updates about changes to the ITA requirements and deadline as additional information becomes available.
- Information on this pre-application process will be updated and made available on the DNR’s Intent to Apply webpage.
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November 2026: The DNR intends to publish the state fiscal year 2027 Safe Drinking Water Loan Program final funding list.
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December 2026: The DNR intends to publish the state fiscal year 2027 Clean Water Fund Program funding list.
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Dec. 11, 2026: Requests for disbursements are due to the DNR at noon on Friday, Dec. 11 to be paid on the disbursement date of Wednesday, Dec. 23. Note: No loan closings will occur on Dec. 23.
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Dec. 23, 2026: Disbursements will occur for those who submitted complete requests for disbursement by noon on Friday, Dec. 11. Note: No loan closings will occur on Dec. 23.
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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