Water & Energy Efficiency in Water and Wastewater Facilities

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Funding Sources on this page:

Federal Sources
EPA Funding Fact Sheets
State Funding Sources
Power Utilities
Funding Databases
Small Communities
Water for America Initiative
Non-profit/Foundation/NGO

American Reinvestment and Recovery Act 2009

Applying for the Clean Water (CWSRF) & Drinking Water State Revolving Fund (DWSRF)

Funding

You would like to improve your wastewater treatment facility's energy efficiency but it's expensive. Is there help out there? Yes, there is. There is help from federal, state, and private sources. The federal government provides grants, loans, and rebates (PDF) (53 pp, 890K About PDF). Your state government may provide these services as well. State agencies may provide grants, loans, renewable credits, rebates, stand-by and other special rates for energy conservation practices. There are also private sources of funding from local utility districts and financial mechanisms such as private third party leasing arrangements and pooled bond financing.

Federal sources of funding for medium and large utilities include the U.S. Department of Energy's Financial Opportunities by Audience which offers grants, low interest loans, and rebates as incentives for installing cogeneration systems. EPA offers state grant financing through the Clean Water State Revolving Fund (CWSRF). In turn, the states loan funds at below market rates for financing plant upgrades and improvements including energy efficient capital investments. Some states provide funding opportunities beyond their clean water state revolving fund.

Upgrading and retrofitting for energy conservation can be expensive for any size facility and may seem out of reach for small communities. There are programs designed to help small facilities upgrade and improve their wastewater treatment systems and these upgrades can include energy efficient equipment. The federal government provides grants to small community wastewater facilities through the U.S. Department of Agriculture's Rural Utilities Service, Department of Commerce Public Works and Economic Development Grants, U.S. Department of Housing and Urban Development (HUD) State Community Development Block Grants (CDBG) Program for Non-entitlement Areas. (HUD administers these grants for the state of Hawaii because the state has permanently elected not to participate in the state CDBG program.) There are also Federal grant programs for small communities; USDA's Rural Utilities Service grant and loan information can be found by contacting the state personnel. Also, there is potential funding available through a nonprofit that works in the western U.S. called the Rural Community Assistance Corporation .

There are a number of creative financing solutions when internal funding is not available. Some of those solutions are outlined in the California Energy Commission's 2000 publication, "How to Finance Public Sector Energy Efficiency Projects" (PDF) (60 pp, 500K) . One successful strategy involves establishing partnerships between energy service companies (ESCOs) and municipalities/facilities for the purpose of financing and implementing cost-saving energy efficiency improvements. The ESCO pays the up front cost of purchasing and installing new equipment, and the municipalities/facilities repay the ESCO over with the cost savings achieved through the project. This strategy is an attractive approach to upgrading as it reduces the up front capital and limits potential liability and risk.

Starting in 2009, the US Bureau of Reclamation will partner with the U.S. Geological Survey (USGS) to implement the Water for America Initiative. Water for America is focused on securing water resources for future generations and coping with 21st Century water challenges, including decreasing water supplies caused by potential climate change and population growth. Water for America grant opportunities will fund: 1) System Optimization Reviews and 2) Water Marketing and Efficiency programs.