DNREC’s Financial Assistance Branch is accepting pre-applications through April 17 for projects to be funded under the Green Project Reserve, a new one-time addition to the Delaware Water Pollution Control Revolving Loan Fund, made possible by the 2009 federal stimulus program to states.


DNREC’s Financial Assistance Branch is accepting pre-applications through April 17 for projects to be funded under the Green Project Reserve, a new one-time addition to the Delaware Water Pollution Control Revolving Loan Fund, made possible by the 2009 federal stimulus program to states.

Green Project Reserve project funds must be used for green infrastructure projects, such as stormwater retrofits and wetland restorations; water and energy efficiency projects for wastewater systems; and environmentally innovative projects. Delaware’s available funding under the Reserve is expected to be up to $3.85 million for project loans, of which approximately $2 million is for loan principal forgiveness.

The pre-application form can be accessed on DNREC’s website, www.wr.dnrec.delaware.gov.  For more information, contact Terry Deputy, Financial Assistance Branch, at 302-739-9941.
Under the American Recovery and Reinvestment Act of 2009, Delaware expects to receive $19.2 million in federal stimulus funds this year – primarily to be used for water pollution control project loans for municipal wastewater systems and related projects through the Delaware Water Pollution Control Revolving Loan Fund.  Unique to the federal stimulus project assistance, at least 50 percent of the funds must be provided in the form of principal loan forgiveness, negative interest rates, and/or grants; and at least 20 percent must be used for a Green Project Reserve. 

On March 18, the Clean Water Advisory Council held a public hearing on the state’s plan for the federal stimulus funds and the annual list of projects submitted by municipal governments.  At the meeting, the Council recommended $14.6 million in loans to help finance five municipal wastewater projects. Included in the loan amount of $14.6 million, the Council recommended $7.7 million for principal loan forgiveness that will ultimately reduce annual sewer use charges for homeowners in the five sewer districts. The Council also recommended the Green Project Reserve ranking criteria that will be used to evaluate pre-applications.

At the public hearing, the Council also recommended $41.1 million in existing funding from the Delaware Water Pollution Control Revolving Loan Fund for 31 additional wastewater projects. Council proposed a one-time “Delaware stimulus” for municipalities that includes a reduced loan interest rate of 2 percent, rather than the current rate of 4.29 percent provided projects are under contract or in construction by December 2009. Funding for 11 of the 31 wastewater projects may be co-funded with grant and/or loan assistance from the U.S. Department of Agriculture.

The Water Pollution Control Revolving Loan Fund is a multi-million dollar program created by the Delaware General Assembly in 1990. Since its inception, 15 federal capitalization grants and state matching funds have been awarded. The program has provided 42 loans for municipal wastewater projects that totaled $183 million and 1,143 loans for non-point source pollution control project that totaled $11 million.