LRP - Licenses

LRP - Regulations

LRP - Permits

Recreation - Statewide

Recreation - Trapping

Recreation - Fishing

Recreation - Hunting

Env. Protection - Management

Env. Protection - Emergency

Env. Protection - Resources

To sign up for updates or to access your subscriber preferences, please enter your contact information below.

Search reference guide
a-z index
Go to online system
submit ITA/App & upload docs
Find forms & pubs
Read E-Bulletin
for latest news
Contact information
For CWFP & SDWLP information, contact:
Environmental Loans staff

Interest rates

Program implementation details are outlined in the governing administrative codes and statutes: §§ 281.58 and 281.59 and 281.61, Wis. Stat., and chs. NR 162 and 166, Wis. Adm. Code.

Effective immediately, the Wisconsin Department of Administration (DOA) has increased the market rate to 3.200% for loans with municipal bond meetings on or after March 25, 2020. This is an increase from the current Environmental Improvement Fund (EIF) market rate of 3.000% and supplants the previously announced 2.800% market rate for the April through June quarter.

The increase is due to the unprecedented and unforeseen impacts the coronavirus pandemic is having on global financial markets, and specifically the municipal bond market. The index used to determine the market rate has increased from 1.75% to 3.39% over the last three weeks. While we are optimistic that the index will decrease somewhat with a stabilizing market, we do not expect it to return to pre-March 2020 levels for quite some time.

Please be aware that this market rate change reflects the opinion that the municipal market rate will stabilize; if not, it is likely that another EIF market rate increase will be needed. As the financial markets stabilize, the risk of off-schedule changes to the EIF market rate will diminish. However, if the volatility and sell-off in the markets continue, another review and recommended change of the EIF market rate could occur before early June.

Clean Water Fund Program (CWFP) and Safe Drinking Water Loan Program (SDWLP) subsidy buys down the market rate on loans (reduced-interest rate loans).

Interest rate determination

This table shows determination of the loan interest rate by project type, based on the current market rate.
Clean Water Fund Program (CWFP)
For the portion of eligible projects for receiving and storing septage, and capacity for treating septage; as well as for mercury remediation at wastewater treatment facilities.
0% 0%
For eligible projects of extremely disadvantaged municipalities meeting the following financial need criteria:
  • < 1,000 population; and
  • ≤ 65% of Wisconsin Median Household Income (MHI).
0% 0%
CWFP and Safe Drinking Water Loan Program (SDWLP)
For eligible projects of disadvantaged municipalities meeting the following financial need criteria:
  • < 10,000 population; and
  • ≤ 80% of Wisconsin Median Household Income (MHI).
33% 1.056%
For eligible projects of municipalities not meeting the financial need criteria.
55% 1.760%
MARKET RATE 100% 3.200%

Competitive market rate

On a quarterly basis, the DOA assesses the market rate on which the program subsidies are based. The rate applied to the loan is the market rate in effect at the time of the municipal bond meeting (at which resolutions approving municipal obligations and Financial Assistance Agreements (FAAs) are signed/executed).


The CWFP and SDWLP provide subsidy to bring interest rates on loans down from the market rate established by DOA to the reduced interest rates described in the table shown above. Municipalities may receive loans at or below the market rate for publicly-owned drinking water, wastewater, and storm water infrastructure projects.

Some municipalities may also be eligible for additional subsidy in the form of principal forgiveness (PF). PF is comparable to a grant because it reduces the size of the loan, thus reducing annual principal and interest payments. The PF allocation methodology is structured to allocate PF funds to the highest priority projects of municipalities with the greatest financial need. Principal forgiveness policies are described in the annual Intended Use Plans (IUPs).


The term for a regular CWFP or SDWLP loan is twenty (20) years from the execution date of the FAA. Thirty-year financing is available for the sewer pipe portion of eligible CWFP projects.

Fixed interest rates on long-term loans

The market rate is 3.200% for loans with municipal bond meetings on or after April 25, 2020 through June 30, 2020, and with a final maturity of twenty years or less. During that quarter, the loan interest rate will be determined based on the market rate of 3.200%:

  • Municipalities with eligible CWFP pilot projects may receive loans with an interest rate as low as 0%.
  • The portion of eligible CWFP projects for receiving and storing septage, and capacity for treating septage will receive loans with an interest rate of 0%.
  • CWFP loans provided to extremely disadvantaged municipalities eligible for zero percent of the market rate will receive an interest rate of 0%.
  • CWFP and SDWLP loans provided to disadvantaged municipalities eligible for thirty-three percent of the market rate will receive an interest rate of 1.056%.
  • CWFP and SDWLP loans provided to municipalities eligible for fifty-five percent of the market rate will receive an interest rate of 1.760%.

Authority and laws

Most eligible project costs are funded at a percentage of the market interest rate, in accordance with ss. 281.58(12) and 281.61(11), Wis. Stats., and ss. NR 162.11 and 166.13, Wis. Adm. Code.

The interest rate for the portion of a project that provides facilities for receiving and storing septage and capacity for treating septage is zero percent, in accordance with s. 281.58(12)(a)5., Wis. Stats.

If the DNR determines that a portion of a scored project is ineligible, it shall specifically identify the ineligible portions and the associated costs; or prorate the amount of financial assistance to reflect the appropriate proportion of eligible to ineligible project costs; or both.

Contact information
For information on this topic, contact:
Jim Ritchie or DOA Capital Finance Office staff

Back to Top

Disclaimer of guidance: This document is intended solely as guidance and does not contain any mandatory requirements except where requirements found in statute or administrative rule are referenced. Any regulatory decisions made by the Department of Natural Resources in any matter addressed by this guidance will be made by applying the governing statutes and administrative rules to the relevant facts.

Last revised: Wednesday March 25 2020