Water Quality Financing Administration

Apply by 1/31/21 for Capital Project Funding from 
MDE’s Office of Budget and Infrastructure Program  

Due to ongoing concerns from the COVID-19 virus, applications will only be accepted electronically.  
See each application for detailed instructions. 

Federal FY21 Loan and State FY23 Grant from Water Quality Financing Administration (WQFA)
For more information, please contact Elaine Dietz at elaine.dietz@maryland.gov

Water Quality State Revolving Loan Fund – Low interest rate loan and loan principal forgiveness (if eligible) for publicly-owned treatment works projects and publicly or privately-owned non-treatment works projects. 

​Drinking Water State Revolving Fund – Low interest rate loan and loan principal forgiveness (if eligible) for public or privately-owned drinking water projects.

Bay Restoration Fund Wastewater Program - Grant funds for
ENR upgrade at major or minor wastewater treatment plants 
Improvements to existing wastewater conveyance systems 
Sewer extension to connect homes on septic systems to a BNR/ENR wastewater treatment plant 
Nitrogen reducing BAT upgrade at shared community septic systems  
Stormwater (MS4) projects by local governments with a system of charges 
Climate resiliency and flood control (see also the Comprehensive Flood Management Grant opportunity below)
​Water Supply Financial Assistance - Grant funds not to exceed $1.5 million for drinking projects at publicly-owned facilities, based on system size, compliance, and affordability.

If your project will be ready-to-proceed to construction by December 2022, please complete a separate application for each capital project* for which you are seeking financial assistance.  Projects in construction prior to MDE’s verification of competitive procurement and compliance with all programmatic requirements will not be funded.  Do not submit applications for projects that are, or will be, in construction prior to these reviews being completed by MDE.

* Applicants with stormwater projects to meet MS4 permits are encouraged to submit multiple BMP projects that will start construction within 12 – 18 months of notification of funding in a single application as a “program” of projects. 

If you previously applied for financial assistance and your project was only partially or not funded, a new/updated application is required.  

Applicants are strongly encouraged to review the template grant and loan agreements posted here to be aware of funding commitments, as well as the project priority systems under the "Associated Documents" heading lower on this page.  Private applicants will be asked to provide organizational documents if funding is allocated.

Official notification of Federal FY21 loan funding will be made in September/October 2021.  Official​ notification of State FY23 grant funding will be made in April/May 2022. 

Application for Water Quality Capital Projects (i.e. wastewater and nonpoint source)  

State FY23 Comprehensive Flood Management Grant (FMG)
For more information, please contact Cheryl Reilly at cheryl.reilly@maryland.gov 
For technical information, please contact Walid Saffouri at walid.saffouri@maryland.gov

During the 2019 Session of the Maryland General Assembly HB 428/SB 269 became law. This bill specifically requires at least $3 million in both fiscal year 2021 and fiscal year 2022, and for fiscal year 2023 at least $2 million must be appropriated.

Funding may only be awarded to Counties and Municipalities. This program provides grants to Maryland counties and municipalities to implement flood control projects, and for acquisition of flood-damaged owner-occupied dwellings. Elevations and relocations of homes are also eligible for funding.  Acquired land is converted to open space in perpetuity. The state FMG grant will provide up to 75% of a project, or if federal funds are participating in the project cost, the FMG grant can provide 50% of the match requirement. Additional information including the application and ranking criteria can be found here​ on the Comprehensive Flood Management Grant Program webpage.

​​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.



FFY 2020/State FY 2022 Funding Documents

Please note:  Notification emails were sent 9/16/20 - 9/17/20 for projects selected to receive FFY2020 Revolving Loan Fund.  Official notifications regarding State FY 2022 grant funding will be made in late Spring 2021, following the close of the 2021 legislative session.   

FFY 2019/State FY 2021 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.


FFY 2018/State FY 2020 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.