Nonpoint Source Incentives

Nonpoint Source (NPS) water pollution results when rainfall, snowmelt or irrigation moves over land or through the ground, picks up pollutants, and deposits them into surface waters or introduces them into groundwater. NPS water pollution may cause adverse changes to vegetation, hydrology or aquatic communities. It can contaminate private and public water wells. Land and/or water activities such as altering stream channels, habitat degradation, agriculture, forestry, grazing, septic systems, recreational boating, construction and urban runoff are the widespread sources of NPS water pollution.

Great strides have been made by communities in addressing water quality problems from point sources, and State Revolving Fund (SRF) Loan Programs have provided more than $2 billion for wastewater and drinking water infrastructure improvements. SRF recognizes, however, that NPS runoff and watershed disturbances are impeding future water quality improvements and threatening past successes. In response to this situation, the SRF Loan Programs are expanding financing opportunities to projects that abate or prevent NPS pollution of Indiana's waters. Integrating a NPS project with a wastewater or drinking water project has the added benefit of lowering the interest rate for your loan by up to 0.5 percent.

Who is eligible?

Political subdivisions including incorporated cities, towns, counties and regional water, sewer, waste, sanitary and conservancy districts are eligible to apply. A NPS project must accompany a wastewater or drinking water SRF application.

What types of projects are eligible for funding?

Eligible NPS projects must provide water quality benefits to their respective communities and may include one or more of the following endeavors:

  • Wetland restoration/protection;
  • Erosion control measures - vegetative and structural or non-structural;
  • Groundwater remediation;
  • Failing septic system - repair, replacement and connection to sewer;
  • Storm Water Phase II (Rule 13) best management practices (BMPs);
  • Source water and wellhead protection measures;
  • Conservation easements; and
  • Agricultural and waste management BMPs.

How does a community receive NPS incentives with a SRF Program Loan?

Questions are included in the SRF Loan Program application to determine whether a loan is eligible for a Nonpoint Source-related interest rate break.


The IFA Environmental Programs Partner to Provide Nonpoint Source Assistance

The Indiana Finance Authority (IFA) Environmental Programs, which consist of the State Revolving Fund (SRF) Loan Programs and the Indiana Brownfields Program, work in partnership with the U.S. Environmental Protection Agency (U.S. EPA) to offer financial assistance to eligible borrowers for activities that protect both public health and the environment and can facilitate economic redevelopment. In some cases, SRF funding is available to fund brownfield cleanup activities that abate or prevent nonpoint source pollution of Indiana’s waters as a nonpoint source water pollution control project under the Section 319 of the Clean Water Act. If available, this funding can be a valuable financial resource for a community when conventional brownfield funding alone cannot completely fund site cleanup.


For more information, contact:
Shelley Love
WWSRF and DWSRF Administrator
100 N. Senate Ave., Rm. 1275
Indianapolis, IN 46204
(317) 232-4396