Water Resources Center
OSTP

The Water Resources Center is affiliated with the College of Food, Agricultural and Natural Resource Sciences and University of Minnesota Extension.

Financial Options

Financing wastewater treatment systems is a challenge. The days of “free-money” for these projects is long gone. The reality is that communities are now using low interest government loans and self financing options to pay construction costs. This page contains resources to help communities prepare funding requests, and gives contacts for agencies that are available to help communities with the process and those that are the source of these funds.

Financing Wastewater Systems (.pdf)
A basic outline of the principles involved in financing wastewater projects. It discusses private and public grants and loans from local, state and national funding sources.

Funding Methods

Minnesota Pollution Control Agency>>
An introduction to what the Project Priority List (PPL) and how to request placement on the PPL, to Facility Planning requirements and submittal, to becoming eligible to request that the Public Facilities Authority (PFA) place a project on the Intended Use Plan (IUP). The site also provides information about the types of loans that can be requested (planning, design, construction), and briefly discusses the MPCA's role in approving projects submitted for funding by the Public Facilities Authority.

Department of Employment and Economic Development, State of Minnesota >>
The Minnesota Department of Employment and Economic Development (DEED) invites community leaders to tap into financial and technical resources available to spur business growth while addressing important revitalization issues. Qualifying communities can be assisted with many redevelopment projects and activities including housing and commercial rehabilitation, construction and upgrading of wastewater treatment facilities and drinking water systems, and cleanup of contaminated sites.

Public Facilities Authority (PFA) >>
Provides below-market financing to local governments to upgrade and construct wastewater treatment and collection facilities. The program is administered in conjunction with the Minnesota Pollution Control Agency (MPCA). The Fund also provides monies to the MPCA, the Department of Agriculture, and the Department of Employment and Economic Development for loan programs to address non-point source pollution. Visit the web site for details, forms, more information.

Rural Utilities Service (RUS), US Dept. of Agriculture Rural Development >>
RUS Water and Environmental Programs (WEP) provides loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less. Public bodies, nonprofit organizations and recognized Indian tribes may qualify for assistance. WEP also makes grants to nonprofit organizations to provide technical assistance and training to assist rural communities with their water, wastewater and solid waste problems.

Rural Utilities Service (RUS) - Minnesota offices 
Address: 
USDA-Rural Development, Minnesota
Water and Environmental Programs Staff
410 Agri Bank Bldg., 
375 Jackson Street,
St. Paul, MN 55101

Additional State Agency Funding Information>>
Information and links to the PFA Web site for present and past IUP and PPL information as well as information about their recent rule revisions, and both the new and old PPL process worksheets. MPCA is currently working to clean up this section of the Web site, as the Minn. R. 7077 amendments are now effective.

Municipal Wastewater Infrastructure Financing Options and Processes (.pdf)

Municipal Wastewater Treatment Facility Bonds Memorandum (.pdf)

Additional Resources

Small Community Wastewater Solutions Resource Book

League of Minnesota Cities
The League of Minnesota Cities is committed to "serving Minnesota's cities through effective advocacy, expert analysis, trusted guidance, and collective action."