New Mexico
Environment Department

Contact Information:
(505) 827-2855 MAIN // 1-800-219-6157 (toll free)
Environmental Emergencies:
505-827-9329 (24 hrs)

Construction Programs Bureau

Clean Water State Revolving Fund (CWSRF)

SFY22 Interest Rates Set

The New Mexico Environment Department sent a memorandum to the Water Quality Control Commission setting interest rates for state fiscal year 2022. In accordance with NMAC, NMED sets the SFY 2022 interest rates and interest rate conditions for local authorities as follows:

  • 1% when the per capita income of the local authority is greater than or equal to the per capita income of the State;
  • .50% when the local authority’s per capita income is less than the per capita income of the State; and
  • 0% when the local authority’s per capita income is less than the per capita income of the State and the user rate is greater than 1.82% of the local authority’s per capita income.
  • These rates and conditions are the same as the rates for SFY 2021.

SFY22 Intended Use Plan Public Comment Period

The New Mexico Environment Department (NMED) Construction Programs Bureau (CPB) produces an annual Clean Water State Revolving Fund (CWSRF) Program Project Priority List (PPL) and Intended Use Plan (IUP).  The IUP identifies the proposed intended uses of the funding amounts available to the CWSRF Program and the PPL identifies eligible projects for CWSRF funding in State Fiscal Year (SFY) 2022.

The New Mexico Environment Department’s Construction Programs Bureau (CPB) will accept public comment on the Clean Water State Revolving Fund (CWSRF) State Fiscal Year 2022 (FY22) Intended Use Plan (IUP) and projects on the FY22 CWSRF Project Priority List (PPL) from June 6th through June 18th 2021.

During this period, a copy of the SFY 2022 IUP with PPL may be obtained by opening the previous links, by calling the CPB team at (505) 469-3459, or by e-mailing

Comments or questions regarding the IUP and PPL may be directed to the CPB team. The Public Involvement Plan and the Limited English Proficiency Analysis for this public comment period are provided in the preceding links.

Please contact us with questions: or 505.469.3459

To apply for CWSRF Funding, go to the

CWSRF Application.  

Applications are accepted year-round.


CWSRF Funding Flow Chart


The Clean Water State Revolving Fund program provides low-interest loans to eligible entities for a wide range of wastewater and storm water projects that protect surface water and groundwater resources. Funds may also be used for projects that control non-point source water pollution. 

Funding is available for Planning Loans, Design Loans and Construction Loans.  Loan subsidy may be available to disadvantaged borrowers or to borrowers that incorporate sustainability features into projects.  Loan terms may be up to 30 years with repayment beginning one year after project completion.

Eligible Borrowers

  • Municipalities
  • Counties
  • Water and Sanitation Districts
  • Mutual Domestic Water Associations
  • Pueblos and Tribes

Private entities are eligible for limited types of projects.

Program Eligibilities (Included, but not limited to)

  • Publicly owned centralized wastewater treatment works construction, repair or replacement;
  • Implementation of a non-point source management plan;
  • Decentralized systems treating municipal or domestic sewage;
  • Measures reducing, treating, or managing stormwater;
  • Measures reducing demand to publicly owned treatment works through conservation;
  • Watershed projects;
  • Reducing energy consumption at publicly owned treatment works;
  • Projects for reusing or recycling wastewater or stormwater;
  • Increasing security at publicly owned treatment works;

Overview of CWSRF Eligibilities.

CWSRF Water Reuse and Industrial-Agricultural  Water Protection Use

Type of Funds

CWSRF funds are available for up to 100% of eligible costs. 

Loan Interest and Terms

CWSRF loans are offered at low interest rates of 0% to 1% for public entities and 2.375% for private entities. Loan repayment terms may be up to 30 years.

CWSRF Priority Rating System

The purpose of the CWSRF Projects Priority Rating System is to evaluate and rank projects based on water quality protection.

CWSRF 2020-09-08 Priority System Guidance.

CWSRF Affordability Criteria System

Affordability Criteria are used to evaluated applicants’ need for additional subsidization.

Affordability Criteria System.

CWSRF Green Project Reserve (GPR)

Green Project Reserve promotes and identifies projects with water efficiency, energy efficiency, green infrastructure and/or environmental innovation.

Green Project Reserve Project Categorical Eligible and Non-Eligible Examples;

CWSRF Green Project Reserve Eligibility Guidance.

CWSRF Public Involvement Plan (PIP)

The purpose of this PIP is to provide public participation opportunities and information that may be needed to participate in the public comment period. This PIP integrates information about the affected communities and identifies resources needed by the Bureau to successfully incorporate community participation activities into the decision making process for the public comment period for the Intended Use Plan (IUP). The PIP identifies the Department staff and resources needed to accomplish these activities.

Public Involvement Plan

CWSRF Projects Priority List (PPL)

Apply for funding and placement on the CWSRF Project Priority List (PPL) is the first step in obtaining a low interest loan for an eligible Clean Water project.

Project Priority List July 1, 2021

CWSRF Intended Use Plan (IUP) 

The NMED Construction Programs Bureau (CPB) produces an annual IUP to identify the intended uses for the CWSRF.

Intended Use Plan


CWSRF Project Requirements

Click the following link to view or download:  Engineering Contract Template for All Funding Programs

Asset Management Plan

CWSRF projects must have an asset management plan. The asset management plan must be in place prior to the project’s completion, and can be funded through the CWSRF as part of the project. The State approved outline for an asset management plan should be used by wastewater utilities to create an asset management plan. If you have any questions, please contact your assigned Project Manager. 

An Introduction to Asset Management Plan;

Asset Management Plan Outline Template

State Environmental Review Process (SERP)

This procedure was developed by the New Mexico Environment Department Construction Programs Bureau to comply with the National Environmental Policy Act (NEPA) requirements for Clean Water State Revolving Fund projects.

Click the following link to view or download: NEPA SERP July 2018 Final.

American Iron and Steel Requirement

The American Iron and Steel (AIS) provision requires Clean Water State Revolving Fund (CWSRF) assistance recipients to use iron and steel products that are produced in the United States. This requirement applies to projects for the construction, alteration, or repair of a public  treatment works. If you have any questions in regards to this requirement please contact your assigned Project Manager. 

Click the following link for more information about this requirement: American Iron and Steel (AIS) Requirement.

Permastore Tanks Non Compliance with American Iron and Steel from EPA (2017)

Environmental Protection Agency (EPA) determined that Permastore’s glass-fused steel lined tanks are not in compliance with the EPA AIS requirement for CWSRF projects.

Click the following link to view or download: CWSRF Permastore Non Compliance with AIS.

Davis-Bacon Requirement

Davis-Bacon requires contractors and subcontractors on certain projects receiving CWSRF funding to pay all laborers and mechanics at prevailing wage rates for similar job types in the same county. Sub-recipients are required to monitor Davis-Bacon compliance by reviewing payroll records and conducting employee interviews. If you have any questions please contact your assigned Project Manager. 

Click the following link to view or download: Davis Bacon Handbook.

New Mexico Administrative Code (NMAC) regulations that govern the CWSRF

NMAC 20.7.5 Wastewater Facility Construction Loans

NMAC 20.7.6 Wastewater Facility Construction Loan Policies and Guidelines

NMAC 20.7.7 Review Procedures for Wastewater Construction Loans


CWSRF Annual Report

The most current CWSRF Annual Report is available for review. CWSRF Annual Report (SFY 2020).



If you have any questions regarding the CWSRF,

please contact us:

or (505) 469-3365.