Water Quality Financing Administration

Purpose and Mission  

The mission of the Maryland Water Quality Financing Administration (WQFA) is to provide financial assistance in the form of low interest rate loans and/or grant funding for clean water and drinking water capital projects across the State. 

Eligible types of projects include:
  • Water quality point source projects
  • Drinking water projects
  • Non-point source pollution control projects
  • Septic system upgrade projects   

The WQFA administers the loan and grant programs described below:  


Financial Program


Water Quality Revolving Loan Program (WQRLF)

Provides low-interest loans to local governments to finance wastewater treatment plant upgrades, nonpoint source projects, and other water quality and public health improvement projects.

Drinking Water Revolving Loan Program (DWRLF)

Provides low-interest loans to local governments to finance water supply improvements and upgrades.

Water Supply Assistance Grant Program

Helping communities meet their water supply needs.

Bay Restoration Fund Wastewater Grant Program 

  • ENR upgrade at major or minor wastewater treatment plants.
  • Improvements to existing wastewater conveyance systems.
  • Sewer extensions to connect homes on septic systems to a BNR/ENR wastewater treatment plant.
  • Nutrient-reducing BAT shared community septic systems. 
  • Stormwater (MS4) projects by local governments
  • Climate resilency and flood control

Bay Restoration Fund - Septic System Grant Program

Upgrades of existing septic systems to best available technology for nitrogen reduction to the Bay.

Linked Deposit Program

Water quality capital improvements

Both loan programs receive federal funding from  the United States Environmental Protection Agency (EPA) and offer below market interest rate loans to eligible borrowers, while ensuring the perpetuity of the revolving funds.

The WQFA is authorized to issue revenue bonds subject to approval of the State Board of Public Works and Secretary of the Maryland Department of the Environment.  Bonds issued by the WQFA do not constitute a debt or the full faith and credit pledge of the State or any political subdivision.  The bonds are paid solely from WQFA revenues as pledged under the bond indenture for each of the above Funds.

The WQFA works very closely with MDE’s Engineering and Capital Projects Program (ECPP, formerly the Water Quality Infrastructure Program).  The ECPP is responsible for the development and implementation of capital projects to correct public health and water quality problems and provides restoration measures that lead to water quality and habitat benefits.  The ECPP provides technical assistance to local government and eligible private entities.



Federal FY2021/State FY2023 Funding Documents

MDE thanks everyone who submitted an application during the December 2020 - January 2021 solicitation.  Applications were reviewed, rated, and ranked in Spring 2021 and draft documents were available for a 30-day public comment period from 6/30/21 thru 7/30/21.  Final documents and a responsiveness summary will be posted here following U.S. EPA's approval.  Official notifications of FFY2021 State Revolving Fund will be made in September/October 2021.  Official notifications of State FY 2023 grant funding will be made in late Spring 2022.  

Federal FY2020/State FY2022 Funding Documents
Federal FY2019/State FY2021 Funding Documents
Please note:  Notification letters were sent in early October 2019 for projects selected to receive Federal FY 2019 Revolving Loan Fund.  Notification letters were sent in April 2020 for projects selected to receive State FY 2021 grant funding.


Federal FY2018/State FY2020 Funding Documents 

Final FFY2018/State FY2020 Clean Water Project Priority List
Final FFY2018 Water Quality Revolving Loan Fund Intended Use Plan Table 1
Final FFY2018 Water Quality Revolving Loan Fund Intended Use Plan Document

Final FFY2018/State FY2020 Drinking Water Project Priority List
Final FFY2018 Drinking Water Revolving Loan Fund Intended Use Plan Table 1
Final FFY2018 Drinking Water Revolving Loan Fund Intended Use Plan Document

Public Hearing Responsiveness Summary for the FFY2018/State FY2020 IUPs and PPLs

Please note:  Official notifications regarding projects selected to receive Federal FY 2018 Revolving Loan Fund financing and State FY 2020 grant funding have been made.    

For Septic Grants:
Associated Documents:
For additional information, please call (410) 537-3119.​

NEW! Maryland Forest Financing Implementation Tool (MD FITT)
Maryland Forest Financing Implementation Tool (MD FFIT), is a calculator designed to assist MD local governments, counties, and their partners seeking loans to fund forestry efforts and earn restoration credits for permits. The video shows how MD FFIT can be used to review different implementation scenarios, evaluate how much a forestry project would cost, estimate how many MS4 credits and environmental co-benefits can be achieved.  The slides in the video and a user guide are also below.
For additional infomation, please contact Michael Roberts at michael.roberts@maryland.gov.