Ensuring continued funding for critical wastewater projects 

Unanticipated changes to the Clean Water State Revolving Fund’s financing of local wastewater projects have prompted urgent action from local officials. 

The Draft 2025 Clean Water State Revolving Fund (CWSRF) Intended Use Plan (IUP) includes two new provisions that were introduced without prior notice: a $50 million cap per applicant and the elimination of cost carryover for subsequent years, meaning projects requiring additional financing must reapply annually. 

In response, the Cape Cod and Islands Water Protection Fund Executive Committee met in late February and sent a letter to Massachusetts Department of Environmental Protection Commissioner Bonnie Heiple, urging the recission of these changes. 

The letter argues that the new rules undermine years of collaborative efforts at the local, regional, and state levels to create a stable financing approach for towns managing costly, multiyear wastewater projects. Towns planning projects for the 2025 funding cycle did so under the assumption that financing terms would remain consistent with prior years. 

“This draft IUP, without notice, disrupts a hard-earned consensus that has taken years to achieve on how towns can finance and advance wastewater management on Cape Cod,” said CCIWPF Management Board Chair Kevin Galligan.  

Cape Cod municipalities are advancing wastewater projects rapidly in accordance with state regulations. Amendments to Title 5 and the designation of Nitrogen Sensitive Areas necessitate these projects, making SRF funding essential for their successful implementation. However, few, if any, towns can obtain voter approval for the full project debt when future SRF funding remains uncertain. 

This policy change has an amplified impact on Cape Cod because access to the 25% subsidy from the Cape Cod and Islands Water Protection Fund depends on securing SRF financing. 

The Massachusetts Department of Environmental Protection is accepting written comments on the draft 2025 IUP until 12:00 PM on March 3, 2025. MassDEP will conduct a virtual public hearing to accept oral testimony on the Draft Intended Use Plans on March 3, 2025 at 1:00 PM.  

Details on the draft IUP, comment period, and public meeting can be found by visiting: https://www.mass.gov/lists/2025-draft-srf-intended-use-plans