Category: State Incentives, Grants & Loans
AGENCY: Construction Programs Bureau, New Mexico Environment Department
DESCRIPTION: The Bureau has money to lend as part of its mission to protect human health and the environment via its administration of drinking water and wastewater projects.
ELIGIBILITY: Eligible public entities include municipalities, counties, special districts, Indian Tribes, and mutual domestic associations (Incorporated under the Sanitary Projects Act).
• Eligible projects for the Special Appropriations Program include facility plans and environmental ?reviews, engineering design, construction, modification, and rehabilitation of wastewater collection and treatment facilities, redevelopment of contaminated sites (Brownfields) to protect groundwater, storm water management facilities to protect water quality, non-point source pollution abatement, and landfill closures and other modifications that protect groundwater.
• Eligible projects for the Revolving Loan Funds include, but are not limited to, the construction of wells, storage tanks, distribution systems, water treatment facilities, wastewater treatment facilities, and related equipment. Eligible Expenses include engineering services, preliminary engineering and feasibility reports, acquisition of easements, rights-of-way, water rights, construction costs, purchase of equipment, and related legal costs.
• The Bureau finances low interest loans and grants, works with other agencies to obtain full funding for projects, assists communities with preparation of financial forms, monitors and administers obligated State and federal funds.
• The Bureau reviews engineering reports for feasibility, reviews construction plans and specifications, assists communities with the preparation of requests for proposal and construction bids, monitors construction, and approves reimbursements.
• The Bureau administers:
Special Appropriations Program - New Mexico Legislature provides grants through special appropriations for water and wastewater projects; approved by the Governor; typically funded by General Fund appropriations or by proceeds generated by the sale of Severance Tax Bonds (STB). Clean Water State Revolving Fund Program
• Loan program funded by U.S. Environmental Protection Agency (80%) and State match (20%); appropriated through Legislature; maximum loan term of 20 years, base interest rate is 3%, (0% to 3% available to eligible communities below median household income criteria); loan is not executed until environmental review is complete; first loan payment is due one year after completion of project; payments due in annual installments.
Rural Infrastructure Revolving Loan Program - Maximum term of 20 years; 3% fixed interest rate; maximum loan amount of $500,000; funding typically available within four-six weeks after completed application; first payment due one year after completion of project; payments are due in annual installments. EPA State and Tribal (STAG) Grants also available.
• STB grantees are required to certify need for issuance of bonds.
• Formal agreement is required between the community and the NMED (currently limited to four years).
• Administrative requirements include engineering reports, plan specifications, bid tabulations, and reimbursements.
• STB projects are restricted to two disbursement periods per month.
• Visit the homepage at www.edd.state.nm.us or http://www.nmenv.state.nm.us/cpb/cpbtop.html.