Traditional Construction Funding Program Information
The Traditional Construction Program funds all phases of a project – from studies/feasibility reports through construction, and in some cases also funds the first six (6) months of a new system startup.
For drinking water, wastewater, and stormwater projects, PENNVEST uses a Uniform Rate Analysis to determine the funding package under this category. In those cases where the resulting user rate would create a hardship based on affordability criteria, it is possible to qualify for a reduced interest rate loan, grant/principal forgiveness, a term extension, or a combination of hardship adjustments.
On certain non-point source projects, where the project benefactor is a landowner, farmer, or other non-conventional owner, PENNVEST may employ cash flow modeling to determine affordability.
Funding Availability
For projects under the Traditional Construction Funding Program, PENNVEST staff can utilize funds from the Clean Water State Revolving Fund (CWSRF), Drinking Water State Revolving Fund (DWSRF), Bipartisan Infrastructure Law (BIL) or other state funding sources.
Our staff will select the most appropriate funding source(s) according to individual funding application details to provide available funding for as many projects as possible.
Eligible Applicants
The Traditional Construction Funding Program funds are available to public or private entities implementing eligible water improvement projects.
An applicant for funding of a drinking water project must be the water supply permit holder.
Eligible Projects
Select the expand icon to the right of each category to view more detail.
The Commonwealth of Pennsylvania is committed to ensuring that all citizens have access to clean drinking water. PENNVEST financing is available to support drinking water infrastructure improvement projects falling under six (6) categories:
- Treatment facility projects
- Transmission and distribution pipe rehabilitation and replacement
- Source rehabilitation or development
- Consolidation of two ore more water systems
- Creation of new systems
Select the Apply for PENNVEST Funding button to apply for Drinking Water Infrastructure financing using the standard PENNVEST funding application.
Ineffective wastewater systems contribute to the pollution of the Commonwealth’s waterways. PENNVEST is committed to protecting and restoring our waterways by financing wastewater infrastructure improvements around:
- Construction of publicly owned treatment works
- Decentralized wastewater treatment systems
- Water conservation, efficiency, and reuse
- Energy efficiency within the treatment process
- Security measures at publicly owned treatment works
Select the Apply for PENNVEST Funding button to apply for Wastewater Infrastructure financing using the standard PENNVEST funding application.
Ineffective stormwater management contributes to the pollution of the Commonwealth’s waterways. PENNVEST is committed to protecting and restoring our waterways by financing stormwater infrastructure improvements around stormwater:
- Management
- Reduction
- Treatment
- Recapture
- Reuse or recycling
Select the Apply for PENNVEST Funding button to apply for Stormwater Infrastructure financing using the standard PENNVEST funding application.
Studies have shown that 50 percent – 75 percent of lead contamination in drinking water comes from lead service lines. PENNVEST provides financial assistance for the replacement of materials used in water distribution that contribute to lead contamination. Projects eligible for PENNVEST funding around lead mitigation include the replacement of:
- Lead and galvanized iron or steel service lines
- Lead gooseneck, pigtail, or connectors in the lines
Select the Apply for PENNVEST Funding button to apply for Lead Service Line Replacement financing using the standard PENNVEST funding application.
Emerging contaminants, including PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) and PFOA (Perfluorooctane Sulfonate) can be found in our air, soil, groundwater, and surface water and can be harmful to humans over time. These chemical substances are introduced into our environment from discarded or expelled medications, cosmetics, sunscreens, fragrances, cookware, carpeting, fabric, food packaging as well as from firefighting foams and many industrial processes.
PENNVEST commits funding towards projects that reduce the introduction of contaminants into our environment. Eligible water treatment technologies include:
- Activated carbon adsorption
- Ion exchange resins
- High-pressure membranes (reverse osmosis and nanofiltration)
Select the Apply for PENNVEST Funding button to apply for Emerging Contaminants Remediation financing using the standard PENNVEST funding application.
Agriculture introduces contaminants into the Commonwealth’s waterways through drainage of fertilizer, pesticides, organic matter, drug residues, and sediments into streams and ponds. This contamination can be minimized through the institution of Best Management Practices (BMPs). Conservation districts or landowners can utilize PENNVEST financing, and potentially receive grants, to fund BMP projects such as:
- Construction or upgrades to manure storage facilities
- Creation of lagoons and riparian buffers
- Installation of fencing as a barrier to animals along a stream or riparian area
- Heavy use area protection
- Prescribed grazing
- Construction of roof runoff structures
- Installation of stream crossing areas
- Implementation of vegetated treatment areas
- Creation of critical area planting
- Establishment of diversion of surface water from farmsteads, waste systems, etc.
- Inclusion of filter strips
- Installation of grassed waterways
Select the Apply for PENNVEST Funding button to apply for Agricultural Best Management Practices financing using the standard PENNVEST funding application.
In addition to stormwater infrastructure funding, PENNVEST supports the health of the Commonwealth’s waterways by financing green infrastructure projects, that help to reduce stormwater flows into the sewer or surface waters. Green infrastructure projects include:
- Downspout disconnection
- Rainwater harvesting
- Rain gardens
- Planter boxes
- Bioswales
- Permeable pavement
- Green streets and alleys
- Green parking
- Green roofs
- Urban tree canopies
- Land conservation (riparian areas, wetlands, steep hillsides)
Select the Apply for PENNVEST Funding button to apply for Green Infrastructure financing using the standard PENNVEST funding application.
Estuaries are large bodies of water that meet at the mouth of a river or stream. These estuaries are vital to the ecosystems that provide a home and habitat for fish and water life. Rapid human population growth over several decades has created an abundance of nutrients that have leached into the estuaries through ground and surface waters. The results are dissolved oxygen levels within the water and changes in water quality that essentially destroy productive fish areas and create displeasing waters that adversely affect the valuable tourist industry and property values. PENNVEST can provide funding to leverage existing funding partnerships that help with the removal and abatement of these nutrients from wastewater treatment and stormwater management programs including changes in water flow within the estuary to increase flushing to complement reduction and removal efforts.
Select the Apply for PENNVEST Funding button to apply for Estuary Revitalization financing using the standard PENNVEST funding application.
PENNVEST funding can be leveraged with existing funding partnerships to provide communities with the means to address acid mine drainage (AMD) problems impacting water supplies. AMD projects that demonstrate cost-effective environmental benefits for water supplies can use PENNVEST funding for:
- Monitoring of water quality changes resulting from an abatement project
- Engineering costs for a priority reclamation project
- Design costs for a priority reclamation project
- Construction costs for a priority reclamation project
Select the Apply for PENNVEST Funding button to apply for Acid Mine Remediation financing using the standard PENNVEST funding application.
A brownfield is a piece of land or property that has been previously used for industrial or commercial purposes and may threaten Commonwealth water quality due to contamination by toxic waste. A greyfield is an old, and abandoned commercial real estate, specifically shopping malls and retail centers. PENNVEST supports the sale and reuse of industrial and commercial properties in the Commonwealth by funding remediation projects to revitalize brownfield and greyfield properties.
The benefits provided by PENNVEST funding of brownfield and greyfield projects include:
- Make the properties more attractive for new buyers
- Improve the quality of local surface and groundwater
- Encourage reuse of property in urban areas rather than contributing to suburban sprawl into surrounding rural areas
- Help revitalize the economies of local communities
- Create employment opportunities in areas of low income and/or high unemployment
- Increase local tax bases
- Facilitate the use or reuse of existing infrastructure and facilities located in the proximity of the sites
- Facilitate the creation, preservation, or addition to parks, greenways, open spaces, and other recreational properties
PENNVEST funding can be leveraged with economic development authorities and investments groups for the remediation of drinking water and surface water as part of larger efforts for brownfield and greyfield development.
Select the Apply for PENNVEST Funding button to apply for Brownfield/Greyfield Redevelopment financing using the standard PENNVEST funding application.
Funding Caps
The maximum term of loans under this program will be interest only for the construction period, not to exceed three (3) years, followed by a twenty (20) year principal and interest repayment term. Interest rates on loans will be at the allowable county maximum rates, as defined in section 10(f) of Act 16 of 1988. If a project qualifies for consideration of either an extended term bond purchase, a grant award, or a principal forgiveness loan the applicant may qualify for an interest rate reduction or choose to withdraw the application from the Small Project Program and submit the application for consideration under the traditional PENNVEST program.
Single Municipality Cap - One (1)
$11 Million
Multiple Municipality Cap - Below Four (4)
$20 Million
Multiple Municipality Cap - Four (4) or More
$20+ Million with Board Approval
Loan Interest Rates, Terms, and Other Conditions
- Projects must be shovel ready with all DEP permits and environmental approvals in hand.
- Funds are awarded at County Cap Rates.
- The maximum loan term is thirty (30) years with a standard term of twenty (20) years, or for Best Management Practice (BMP) projects, through the life of the BMP.
Detailed terms and conditions for individual approved funding awards will be set forth in the official PENNVEST funding offer provided to the funding applicant.
Application Procedure
All applications will be received electronically through the PV Portal and processed through the traditional workflow.
Disbursement of Loan Funds
Loan funds will be disbursed to the borrower on a reimbursement basis. As the borrower incurs expenses and receives bills for eligible activities, the borrower will prepare and submit a payment request to PENNVEST through the PV Portal. Thereafter, the borrower will receive the funds electronically for costs incurred.