The Texas Water Development Board (TWDB) has opened the next round of the Texas Water Development Fund (DFund) program, providing loans to support water, wastewater and flood control initiatives. Applications are due by Sept. 30.
Unlike similar funding programs, DFund has no limit to funding availability, opting instead to sell bonds as needed for loans. The fund also differs by covering multiple components under a single loan, enabling recipients to implement projects with water, wastewater, flood control, treatment and other components.
Eligible recipients include cities, counties, districts, river authorities and nonprofit water supply corporations. Projects that qualify for the program typically fall under three categories: water supply, wastewater and flood control.
Water supply projects that may be considered for loan funding include:
- Wells.
- Retail distribution and wholesale transmission lines.
- System acquisitions.
- Pumping facilities/
- Storage reservoirs and tanks.
- Water treatment plants.
- Purchase of water rights.
Wastewater projects eligible for financial assistance include:
- Sewer treatment plants.
- Collection systems.
- System acquisitions.
- Nonpoint source pollution abatement.
- Development of new municipal solid waste disposal facilities.
The board will also consider delivering loans to flood control projects including:
- Construction of stormwater retention basins.
- Enlargement of stream channels.
- Modification or reconstruction of bridges.
- Acquisition of floodplain land for use in public open space.
- Relocation of residents of buildings removed from a floodplain.
- Public beach re-nourishment.
- Flood warning systems.
- Control of coastal erosion.
- Development of flood management plans.
The loans come with 20-30-year repayment terms, offering long-term fixed interest rates based on the board’s cost of funds. The program includes a series of special requirements that recipients must achieve before receiving funding. Among these, applicants must submit current financial audits alongside their application and conduct a state-level environmental review.
Other requirements include ensuring that the water supply projects are consistent with the current state water plan. Those receiving more than $500,000 through the DFund program must also adopt water conservation and drought contingency plans.
All reservoir funding must be segmented or phased and permitting is needed prior to a construction commitment. Finally, the recipient must meet U.S. Iron and Steel requirements and conduct a review of legislative requirements regarding water loss threshold limits.
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