MN: Public Facilities Authority Awards Nearly $191 million in 2022 to Clean up Minnesota Waterways 

The Minnesota Public Facilities Authority (PFA) recently announced $191 million in grants and loans for water and infrastructure projects in 29 Minnesota communities.

“PFA grants are an important tool that help maintain and build our waterways for future business and economic growth,” said PFA chair and Commissioner of the Department of Employment and Economic Development Steve Grove. “Congratulations to these cities and counties on their awards, which will lead to economic growth across the state.” 

The majority of the funding came directly from the PFA’s Clean Water and Drinking Water revolving loan funds, and grants from the Water Infrastructure Fund (WIF) and Point Source Implementation (PSI) Grants programs. 

Clean Water Revolving Fund (also known as the Clean Water State Revolving Fund or CWSRF): 

The CWSRF is supported by federal capitalization grants from the U.S. Environmental Protection Agency and state matching funds. These funds, together with PFA revenue bond proceeds, are used to make low interest loans to communities throughout the state for wastewater and stormwater infrastructure projects. Loan repayments revolve back to make new loans, providing a permanent source of low-interest capital to help cities finance clean water infrastructure projects. Since its start in 1990, Minnesota's CWSRF has awarded more than 565 loans for over $3.1 billion, providing over $691 million in interest savings to local governments and their taxpayers.  

Drinking Water Revolving Fund (also known as the Drinking Water State Revolving Fund or DWSRF)  

The DWSRF is supported by federal capitalization grants from the U.S. Environmental Protection Agency and state matching funds. These funds, together with PFA revenue bond proceeds, are used to make low interest loans to cities throughout the state for drinking water infrastructure projects. Loan repayments revolve back to make new loans, providing a permanent source of low-interest capital to help cities finance drinking water infrastructure projects. Since its start in 1999, Minnesota's DWSRF has awarded more than 433 loans for over $982 million, providing over $188 million in interest savings to local governments and their taxpayers. A portion of federal DWSRF funds is provided as principal forgiveness grants based on established affordability criteria.  

Water Infrastructure Fund (WIF):  

The WIF program provides supplemental assistance grants for based on affordability criteria for high-cost projects. WIF grants are packaged with PFA loans or USDA Rural Development loan and grant funds.  

Point Source Implementation (PSI) Grants:  

The PSIG program provides grants to help cities upgrade water treatment facilities to reduce their discharge of specific pollutants to meet water quality restoration and protection goals.