About
FCAP accepts applications on a year round basis. However, FCAP will only conduct one round of evaluations submitted by the deadline. Projects addressing eligible acute, chronic health/SDWA compliance or public health problems will be given higher priority over other projects. Both construction and non-construction assistance are available.
Construction Assistance
Construction Loan |
Interest rates from 3% to ceiling rate (1% below municipal bond market rates). Maximum term 20 years. Lower rates and longer terms (up to 30 years) are considered for waterworks meeting disadvantaged criteria. |
Construction Grant |
Will be considered for waterworks meeting disadvantaged criteria. |
Force Account Construction |
Projects are completed with non-contractor related labor. |
Non-Construction Assistance
Planning and Design Funds |
Projects up to $45,000 to be awarded. Applications accepted year-round. Funds are especially for small, disadvantaged community waterworks. |
Application Deadlines
The Application Deadline depends on the type of funding and method of delivery. Electronic copies are preferred. Hard copies are optional. Please see the highlighted section below for more details. Unless otherwise stated, all applications must be submitted by the deadline below to be included in the next round of funding offers.
- The required Funding Application Discussion Meeting must be held by April 3, 2024
- If electronically submitted, the application must be received by May 3, 2024
- If hand delivered, the application must be received by 5:00 PM on May 3, 2024
- If sent by mail, the application must be postmarked by May 3, 2024
LSL Inventory Projects
- Funding Application Discussion Meetings are not required for inventory only projects.
- Applications may be submitted year-round until March 31, 2024.
LSL Replacement Projects
- The required Funding Application Discussion Meeting must be held by April 3, 2024
- If electronically submitted, the application must be received by May 3, 2024
- If hand delivered, the application must be received by 5:00 PM on May 3, 2024
- If sent by mail, the application must be postmarked by May 3, 2024
- Applications may be submitted year-round.
- More information available on the Planning & Design Fund webpage.
Submittal Options
Please see below for application submittal options. Electronic copies are preferred. We highly recommend that an electronic copy of the entire application, including all attachments, be submitted either via USB flash drive or by email. If submitting hard copies, only one printed copy of the application and attachments is required.
- For Construction Applications:
- Please send to DWSRF.applications@vdh.virginia.gov
- With the subject line FY25 Construction Application - City/County - Project Name
- For LEAP Applications:
- Please send to LEAP.applications@vdh.virginia.gov
- With the subject line FY25 LEAP Application - City/County - Project Name
- If files are too large and exceed email file attachment limits, it is acceptable to send multiple emails with your application and attachments
- Alternatively, you may send a Google Drive link (or similar platform) to share access to your application documents
- Please note: Unfortunately, applications submitted via Dropbox can no longer be accepted. VDH has blocked Dropbox due to the fact that it does not meet the Agency's security standards.
- Mail to our Central Office at the following address:
Virginia Department of Health
Office of Drinking Water
109 Governor Street, 6th Floor
Richmond, VA 23219
- Only one electronic copy is required.
- Dropbox - VDH has blocked Dropbox due to the fact that it does not meet the Agency's security standards
- Electronic copies on CDs - we no longer have access to a disc drive to read these files
- Applications in bound booklet format - please use 3-ring binders with tabs instead for ease of scanning
- Where "bound booklet format" is defined as softcover/paperback or GBC/spiral binding
We have implemented these recommendations and restrictions in order to streamline our process. We thank you for your patience and understanding. Please contact us with any questions.
Important Changes - New for FY2024
- The Construction Funds Application has been updated to streamline and clarify items. Most notably, TMF-related questions have been compiled in one section and hyperlinks to required forms/templates have been added. The corresponding Instructions and Scorecard have also been updated to reflect these changes.
- The Lead Elimination Assistance Program (LEAP) Application and corresponding Instructions have also been updated. Most notably, the application has been significantly streamlined for LSL Inventory projects and new questions related to the proposed project scope and readiness to proceed have been added. The corresponding Instructions and Scorecard have also been updated to reflect these changes.
- The requirements for Funding Application Discussion meetings and TMF reviews no longer apply to LSL Inventory projects.
- The evaluation of Environmental Justice criteria has been updated from using the EJSCREEN tool by EPA to the Climate and Economic Justice Screening Tool (CEJST) by the White House Council on Environmental Quality (CEQ). See the Program Design Manual and Application Instructions for more information on how the Environmental Justice Community designation is determined.
- The Build American Buy American (BABA) requirements will now be in effect for projects funded through the Bipartisan Infrastructure Law (BIL) funding. Depending on the project, waivers may be available and will be evaluated on a case-by-case basis.
- A new Interest Rate Methodology is now in place for Construction Projects. The Core Program is a 20-year loan with the interest rate set at the time of loan closing. The core program rate is set at 1% below the market interest rate for municipal 20-year AA revenue bonds. Historically the core program rate has been between 1.4% and 3.0%. For 30-year terms, the interest rate is set at ½ of 1% (50 basis points) below the market rate.
Guidance & Announcements
Please view the contents below for detailed guidance for additional information on our funding program and filling out applications.
View the manuals below for the Drinking Water State Revolving Fund (DWSRF) Program and the Water Supply Assistance Grant (WSAG) Fund Program. The DWSRF Program Design Manual provides very detailed information on the background of the program, eligibility, and types of financial assistance. We strongly recommend viewing the DWSRF Program Design Manual first prior to filling out Applications.
DWSRF Program Design Manual |
WSAG Program Guidelines |
A pre-recorded PowerPoint Presentation with detailed information regarding the FY 2023 application cycle is posted below. To access the presentation, you may either click on the image or the link below to download the presentation. Viewing instructions may also be found below.
FY23 Funding Construction Workshop
To view the presentation, please download and open the file. Click on the Slide Show tab at the top of your screen and select the option From Beginning. The presentation should enter full screen mode and the first audio clip should begin playing automatically. To advance the slides, you may use the arrow keys on your keyboard to move forward and backward. Detailed instructions on viewing the presentation are also available.
If you have any further questions, please don't hesitate to contact the FCAP Staff.
The Virginia Department of Health (VDH) is pleased to announce several opportunities for funding drinking water infrastructure. ALL applications may be submitted year round; however, VDH will conduct one round of evaluations submitted by the deadline. Applications postmarked/received after the due date will be considered for funding in the following round. Funding is made possible by our Drinking Water State Revolving Fund (DWSRF) Program, the Bipartisan Infrastructure Law (BIL) and the Water Supply Assistance Grant Fund (WSAG) Program (if funds are available). Our FY 2024 DWSRF Intended Use Plan will be developed using your input on these issues. The BIL funds are broken down in three different categories: DWSRF Supplemental, which has all the same eligibilities that the base DWSRF Program does; DWSRF Lead Service Line, which is explained in item #4; and DWSRF Emerging Contaminants, which is focused on PFAS, but also includes the contaminants listed in the Draft Fifth Contaminant Candidate List (CCL 5). Please view the link below for additional details:
FY24 Funding Announcement Letter
The VDH’s DWSRF Program Design Manual describes the features of the above opportunities for funding. After receiving the aforementioned public input, VDH will develop an Intended Use Plan (IUP) for public review and comment. When developed, the IUP will describe specific details for use of the funds. A public meeting is planned and written comments will be accepted before submittal of a final version to the USEPA for approval. Applications, set-aside suggestion forms, Program Design Manuals, and information materials are available on our website:
https://www.vdh.virginia.gov/drinking-water/fcap/drinking-water-funding-program/
Please direct any comments to:
Kelly Ward, DWSRF Director
(804) 629-7206
VDH - Office of Drinking Water
109 Governor St, 6th Floor,
Richmond, VA 23219
With the passage of the Bipartisan Infrastructure Law (BIL) and the renewed emphasis on Infrastructure, new score sheets were developed for FY2024. The Financial Construction Assistance Program (FCAP) last revised score sheets in April 2019. The 2019 Construction Scoresheet did not address many of the infrastructure issues that have come to the forefront with BIL. The revised project scoresheet includes additional points for the replacement of lead jointed cast iron pipe, the replacement of asbestos cement pipe, and the installation of emergency electric power generators, among other changes.
The Lead Elimination Assistance Program (LEAP) Scorecard was updated to expand eligibility criteria for vulnerable populations by adding the Poverty Indicator and Pre-K Enrollment Indicator from the VDH Youth Well-Being Index. The LEAP Scorecard expands eligibility criteria for young children who are most vulnerable to exposure from lead in drinking water; adding a “Readiness to Proceed” section to prioritize projects that are ready to move forward now; and adding bonus points for Lead Service Line (LSL) Replacement Projects to separate them from the LSL Inventory projects. Removal of LSLs reduces risks to public health.
The FY2024 scorecards were posted for a 30-day public comment period which ended on April 17, 2023.
| FY24 Construction Scorecard | FY24 LEAP Scorecard |
Application Forms & Instructions
Please view the Funding Announcement Letter for additional details on the application period for this fiscal year. Please also note that there is no separate application for WSAG funds. You may use the Application for Construction Funds form below to submit an application to either the DWSRF program or the WSAG program, and FCAP will determine the source of the funding. Click on the bars below to expand each section.
Applicants for Construction Funds should apply for all infrastructure projects they are considering over the next four or five year period. VDH is in a position to fund large capital improvement projects. Please note that very large projects may need to be phased. Construction loan funds are disbursed on a cost reimbursement basis. All requests for disbursement of loan funds must be substantiated by invoices reviewed and approved by the owner. VDH will review and approve such requests prior to the actual disbursement of funds. All submittals for disbursement are to be made in accordance with the latest version of VDH's Procedural Guidelines.
Construction Application Instructions |
Construction Application (PDF) |
Construction Application (Word) |
In an effort to accelerate the removal of lead in drinking water, the DWSRF Program has made funding available for the complete removal of the public and/or private portions of lead service lines (LSLs). From FY2022 through FY2026, the Lead Elimination Assistance Program (LEAP) will be supplemented by additional funding through the Bipartisan Infrastructure Law - Lead Service Line (BIL-LSL) funds. These sources of funding will cover pipe entry into the structure (up to the shut off valve) but excludes the premise plumbing. To learn more about the Lead Elimination Assistance Program (LEAP), please click on the link.
LEAP Application Instructions |
LEAP Application (PDF) |
Leap Application (Word) |
Note: If the scope of your potential project will include other construction work in addition to LSL work, you will be required to submit a separate Construction Funds Application in addition to the LEAP Application. Please see the Construction Funds Application & Information section above for more details.
The 1996 Amendments of the Safe Drinking Water Act (SDWA) encourages States to provide technical assistance to waterworks. To meet these requirements, the Virginia Department of Health (VDH) Office of Drinking Water (ODW) created the Planning & Design Fund Program to provide financial assistance for eligible projects at community and nonprofit, non-transient non-community (NTNC) waterworks.
VDH will consider up to three applications from a waterworks owner in each funding year. However, due to the demand for the Program and limited funds for projects, offers will be limited to a maximum of two grants, of not more than $45,000 each, per eligible waterworks owner per funding year. Multiple applications from one owner must be for different areas of a waterworks’ infrastructure (e.g. source, treatment, distribution, security, etc.) or for a completely different waterworks (i.e., a waterworks with a different PWSID #). VDH reserves the right to fund a project received at any time during the year, or to by-pass any project for lack of progress at any time. VDH also reserves the right to decide if funding is contingent upon adjusting water rates and/or requiring savings for financial reserves. Funding is not contingent on receiving a local match.
P&D Application Instructions |
P&D Application (PDF) |
P&D Application (Word) |
Please note that applications are accepted year-round. Refer to the application packet for submittal instructions
For more information please contact:
| Barry E. Matthews, CPG, Director Division of Training, Capacity Development, & Outreach (804) 477-5171 Barry.Matthews@vdh.virginia.gov |
Jarrett Talley Capacity Development Supervisor (804) 317-0140 Jarrett.Talley@vdh.virginia.gov |
If approved, the refinance will be for the same final maturity up to a 20 year loan at the core term interest which is set at closing but has historically been around 1.5 to 2.4%. VDH reserves the right to offer a 30 year if the waterworks meets certain disadvantaged criteria. The Safe Drinking Water Act allows the DWSRF to provide for extended term loans to disadvantaged communities provided that the loan terminates no later than the date that is 30 years after the date of the project completion and does not exceed the expected design life of the project. VDH reserves the right to provide special offer terms to consolidate failing waterworks to improve reliability.
Refinancing Loan or Purchasing Application (PDF) |
Refinancing Loan or Purchasing Application (Word) |
Source water protection, as defined by the EPA, involves managing potential sources of contaminants and preventing pollutants from reaching sources of drinking water, which is often more efficient and cost-effective than treating drinking water later. Loan funds are available to: (1) Community and non-profit noncommunity waterworks to acquire land/conservation easements, and (2) Community waterworks, only to establish local voluntary incentive-based protection measures. Learn more about VDH's Source Water Protection Program by clicking on the link.
1452K Source Water Protection Initiative Application (PDF) |
1452K Source Water Protection Initiative Application (Word) |
Set-Aside Application Form
Please use the form below to submit Public Comments and/or Set-Aside Suggestions. Please submit one form for each Set-Aside Suggestion by the closing date. Attach additional pages if necessary. For suggestions or projects not funded, VDH reserves the right to reconsider funding the above project if funds become available. For additional information, please contact Barry.Matthews@vdh.virginia.gov / (804) 477-5171 or Julie.Floyd@vdh.virginia.gov / (540) 460-9348.