Financing Sustainable Water Projects Through the Colorado State Revolving Fund
The State Revolving Funds (SRF) can fund a wide range of water infrastructure projects, including eleven project categories for the Clean Water SRF and six project categories for the Drinking Water SRF. From green infrastructure, to reuse, to outdoor conservation, the Colorado SRF can help water providers invest in a wide variety of environmentally sustainable water infrastructure projects that fall within these eligible project categories.
Check out the sections below to explore the types of sustainable water projects that can be financed with Colorado State Revolving Fund loans, including green stormwater infrastructure, water conservation, water reuse, source watershed protection, and lead service line replacement. These sections provide potential SRF applicants initial ideas about eligible project types. Final eligibilities are determined during the application process. That’s why WaterNow recommends consulting with the SRF administrators, Colorado Department of Public Health, Department of Local Affairs, and Environment or the Colorado Water Resources and Power Development Authority, early and often.
Green Stormwater Infrastructure
Green stormwater infrastructure (GSI) employs natural elements to manage and treat stormwater, enhance water quality, and provide environmental and community benefits. By integrating vegetation, soils, and natural systems, GSI reduces runoff, filters pollutants, and mitigates flooding. Common GSI practices include rain gardens, permeable pavements, green roofs, bioswales, urban forests and trees, low impact development, and stream and wetland restoration. These approaches not only manage stormwater effectively but also improve air quality, reduce urban heat islands, and create green spaces for community recreation.
In Colorado, the SRF program can support the implementation of GSI projects. The Water Pollution Control Revolving Fund (WPCRF) offers financial assistance for projects that enhance water quality, including GSI initiatives. Additionally, the Green Project Reserve program within the WPCRF provides opportunities for reduced interest rates and additional points in the project scoring process for qualifying green infrastructure projects.
Implementing GSI contributes to sustainable water management by reducing the impacts on traditional wastewater and stormwater systems and enhancing water quality. Communities adopting GSI can expect long-term economic, environmental, and social benefits, aligning with broader goals of resilience and sustainability. Scroll down to explore specific examples of GSI, such as rain gardens, bioswales, green roofs, and permeable pavers.

2012 GPR Report
This report comes from the GPR establishing a minimum 20% of ARRA capitalization funding going to the four categories under GPR discussed.

Annual Report: CWSRF Programs
This year (2015) the CWSRF provided $5.8 billion to eligible projects and will continue to grow, while prioritizing those with the biggest public health impact.

Innovation in Action: 21st Century Water Infrastructure Solutions
Executive summary to WaterNow paper examining 13 programs in 12 cities and 9 states and finds noteworthy gains in each test case from investments in smart, efficient distributed water infrastructure.
Rain Gardens
Rain gardens are shallow, landscaped depressions designed to capture and retain stormwater runoff from rooftops, driveways, and other impervious surfaces. By using deep-rooted native plants and well-draining soils, they improve water quality by filtering out contaminants like oils, metals, and nutrients. In addition, they can reduce the risk of localized flooding by allowing water to infiltrate the ground, and provide essential habitat for pollinators and other wildlife—all while minimizing the need for supplemental irrigation.
Bioswales
Bioswales are linear, vegetated channels that manage and treat stormwater runoff by slowing its flow, allowing it to infiltrate the soil, and enhancing groundwater recharge. Often incorporating native plants, mulch, and engineered soils, they effectively capture and filter pollutants while also adding aesthetic and ecological value to urban spaces, making them ideal for managing stormwater along roadways, parking lots, and other paved areas.
Permeable Pavers
Permeable pavers are a type of pavement that allows water to pass through voids between the paving materials, reducing surface runoff and filtering pollutants before they reach waterways. By contributing to stormwater management, mitigating the urban heat island effect, and supporting sustainable and resilient urban development, permeable pavers help reduce flooding while promoting environmental sustainability.
Green Roofs
Green roofs, also known as vegetated roofs, are roofing systems covered with layers of vegetation, soil, and waterproof membranes that manage stormwater by capturing and absorbing rainfall, reducing both the volume and rate of runoff. In addition to mitigating the urban heat island effect, they improve building energy efficiency by providing insulation, create habitat for pollinators and other wildlife, and extend the lifespan of roofing materials by protecting them from UV exposure and temperature fluctuations. Green roofs can be extensive (lightweight with shallow soil and low-maintenance plants) or intensive (deeper soil that supports a wider variety of plants, including trees and shrubs), both of which contribute to stormwater management and urban greening efforts.
Water Conservation
Water conservation projects focus on reducing water use and improving system efficiency, ensuring the sustainable management of water resources. Both the Water Pollution Control Revolving Fund (WPCRF) and the Drinking Water Revolving Fund (DWRF) can provide financing for projects that enhance water conservation efforts, benefiting communities, the environment, and future generations. Scroll down to explore examples of indoor and outdoor water conservation practices.
Indoor Water Efficiency
Indoor water efficiency projects help reduce water consumption in homes, businesses, and public buildings by upgrading plumbing fixtures, appliances, and infrastructure to more efficient models. These projects support long-term water conservation efforts, lower energy costs, and improve the overall sustainability of water resources. Types of projects include:
- High-Efficiency Fixtures & Appliances: Retrofitting buildings with low-flow faucets, showerheads, toilets, and urinals, as well as installing high-efficiency dishwashers and washing machines in residential and commercial settings.
- Industrial & Commercial Efficiency Upgrades: Replacing outdated cooling towers, heating and air conditioning systems, and other water-intensive equipment to improve efficiency.
- Leak Detection & Repair: Identifying and addressing leaks in municipal water systems to reduce water loss and enhance overall system performance.
These improvements can lower water and energy costs, reduce strain on water infrastructure, and help ensure a sustainable water supply for future generations.
Outdoor Water Efficiency
Outdoor water efficiency projects help reduce water use in landscaping and irrigation, a critical challenge in Colorado’s semi-arid climate. Type of projects include:
- Smart Irrigation Technology: Installing weather-based controllers and soil moisture sensors to optimize watering schedules.
- Turf Replacement: Converting high-water-use, non-functional turf into native or drought-tolerant landscapes to reduce irrigation demand.
- Irrigation System Upgrades: Enhancing water efficiency with drip irrigation systems, high-efficiency sprinkler heads, and leak detection improvements.
These improvements can help reduce supplemental irrigation needs, lower water bills, minimize runoff and water waste, and significantly decrease outdoor water demand while supporting resilient, climate-appropriate landscapes.
Water Reuse
Water reuse involves the process of treating wastewater or stormwater and repurposing it for beneficial uses, thereby conserving potable water resources and improving environmental outcomes. These types of projects help address water scarcity, reduce the strain on municipal water supplies, and provide cost-effective solutions for sustainable water management. By incorporating water reuse practices, communities can improve their resilience to drought, protect local water resources, and reduce the environmental impact of wastewater disposal. The SRF program can support a wide range of water reuse initiatives such as rainwater harvesting, graywater reuse, and onsite reuse. Scroll down to explore these example project types.
Rainwater Harvesting
Rainwater harvesting entails the collection and storage of rainwater from rooftops or other impervious surfaces for future use. This practice reduces demand on municipal water supplies and mitigates stormwater runoff. Projects may involve the installation of collection systems, storage tanks, and distribution mechanisms to utilize harvested rainwater for non-potable applications such as landscape irrigation, industrial processes, or toilet flushing. By decreasing reliance on traditional water supplies, rainwater harvesting helps alleviate stress on municipal systems while promoting water conservation and sustainability.
Graywater Reuse
Graywater refers to wastewater from sources such as sinks, showers, and laundry facilities (whereas blackwater, which comes from toilets, dishwaters, and urinals). Reusing graywater involves treating and redirecting it for non-potable purposes, thereby reducing the demand for potable water and decreasing the volume of wastewater requiring treatment. Eligible graywater reuse projects may include the development of collection and treatment systems that allow for the safe application of graywater in landscape irrigation, toilet flushing, or other appropriate uses.
Onsite Reuse Systems
Onsite reuse systems involve the collection, treatment, and reuse of water directly at the location where it is generated, such as in individual buildings or facilities. These systems can manage various water sources, including graywater and stormwater, treating them for non-potable applications like toilet flushing, cooling systems, or landscape irrigation. Implementing onsite reuse systems reduces the demand on centralized water infrastructure, conserves potable water resources, and enhances overall water resilience. Projects may include the installation of advanced treatment technologies, storage facilities, and distribution networks tailored to specific site needs. By decentralizing water management, onsite reuse systems offer flexible and sustainable solutions that can be customized to local conditions.
Source Watershed Protection
Source watershed protection involves a range of actions and activities that safeguard, maintain, and improve the quantity and quality of lakes, rivers, streams, and groundwater that supply drinking water. These interventions help prevent contamination at the source and reduce the costs associated with drinking water treatment. They also help water providers protect their forested watersheds and build resilience to wildfires.
Both Colorado State Revolving Fund programs can finance source watershed protection activities, but the Water Pollution Control Revolving Fund offers more flexibility than the Drinking Water Revolving Fund as projects that provide water quality benefits qualify. Additionally, Source Watershed Protection activities can also be eligible for reduced interest rates and additional points in the project scoring process through the Water Pollution Control Revolving Fund’s Green Project Reserve program. Scroll down to explore example project types.
Stream Restoration
Stream restoration involves enhancing the ecological health of rivers or streams to support biodiversity, recreation, flood control, and landscape development. It encompasses a variety of techniques and approaches aimed at stabilizing stream channels, reducing erosion, improving water quality, and restoring natural habitats.
There are two primary approaches to stream restoration:
- Form-based restoration: This approach relies on physical interventions such as cross vanes, weirs, and engineered log jams to stabilize stream channels and enhance ecological function. These structures help control water flow, reduce erosion, and improve habitat for aquatic species.
- Process-based restoration: This approach focuses on restoring natural hydrological and geomorphological processes, such as sediment transport and channel-floodplain connectivity, to ensure long-term resilience and ecological health of the stream. This method aims to mimic natural processes to create a self-sustaining ecosystem.
Stream restoration projects are tailored to the specific needs and conditions of each site and may involve activities like grading and planting, installing woody debris, and creating step pools. The ultimate goal is to restore the stream’s natural function and value, which in turn supports aquatic life and improves overall watershed health.
The sections below feature types of stream restoration approaches: riparian buffer strips, streambank stabilization, and instream habitat enhancement.
Check out additional resources on our Wildfire Resiliency Financing Dashboard.
Riparian Buffer Strips
Riparian buffer strips are vegetated areas adjacent to water bodies, such as streams and rivers, designed to protect and enhance water quality and provide environmental benefits. These buffers intercept sediment, nutrients, pesticides, and other pollutants from surface runoff before they reach the water, thereby reducing water pollution and improving water quality. Additionally, riparian buffers help stabilize stream banks, reduce erosion, and provide critical habitat and corridors for wildlife. They also offer shade, which is essential for maintaining cooler water temperatures beneficial to aquatic life.
Riparian buffer zones can consist of various vegetation types, including trees, shrubs, and grasses, arranged in multiple zones to maximize their effectiveness. These zones vary in width depending on the specific environmental goals and land characteristics, typically ranging from 35 to 100 feet wide for water quality purposes and up to 600 feet for wildlife habitat.
Streambank Stabilization
Streambank stabilization is a process used to protect and reinforce the banks of streams, rivers, or constructed channels to prevent erosion, maintain water flow capacity, and enhance the surrounding environment. This practice helps reduce the downstream effects of sedimentation caused by bank erosion, and improve the habitat for fish and wildlife, as well as the aesthetics and recreational value of the stream corridor.
Various techniques can be employed in streambank stabilization, including:
- Riprap: Large stones or concrete pieces placed along the bank to absorb and deflect the energy of flowing water.
- Gabions: Wirework containers filled with rock or other material, used to form flexible, permeable, and durable bank protection.
- Revegetation and Bioengineering: Utilizing live plants and their roots to anchor the soil and build stabilizing structures. Techniques include planting grasses, shrubs, or trees, and using live stakes or branches that sprout and grow, further stabilizing the soil as they develop
Streambank stabilization not only protects against erosion but revegetation and bioengineering approaches can also support ecological health by maintaining natural stream functions, providing habitat, and enhancing water quality.
Instream Habitat Enhancement
Instream habitat enhancement is the process of implementing specific interventions in streams to improve their ecological function and water quality. Unlike restoration efforts that aim to return a stream to a pre-disturbance state, instream habitat enhancement focuses on improving habitat conditions within the existing stream structure. Techniques include the placement of materials such as large woody debris, boulders, and gravel to create or enhance habitat features like pools, riffles, and cover structures. These interventions support biodiversity by providing better habitat for fish and other aquatic organisms, improving conditions for spawning, feeding, and shelter.
This practice can involve both physical modifications to the stream channel and the strategic placement of materials to influence water flow and sediment deposition. Structures used in these enhancements include boulder and log weirs, deflectors, root wads, and spawning gravel. These efforts aim to increase habitat complexity, support fish populations, and improve overall stream health, contributing to ecological resilience and biodiversity.
Wetland and Meadow Restoration
Wetland meadow restoration involves rehabilitating degraded wetland ecosystems to restore their natural functions and biodiversity. This process includes manipulating the physical, chemical, or biological characteristics of a wetland to reestablish or rehabilitate its functions. Restoration practices are generally categorized into two main types:
- Reestablishment: The rebuilding of a former wetland or meadow to return it to its original condition.
- Rehabilitation: Repairing the functions of a degraded wetland or meadow to enhance its ecological health and services.
Specific activities in wetland and meadow restoration may include re-establishing native vegetation, removing invasive species, regrading land to restore natural hydrology, and implementing erosion control measures. These efforts help improve water filtration, flood attenuation, groundwater recharge, and provide essential habitat for wildlife. Restoring these ecosystems not only supports biodiversity but also enhances climate resilience and improves water quality.
Check out additional resources on our Wildfire Resiliency Financing Dashboard.
Sediment Control
Sediment control refers to practices aimed at preventing eroded soil and other materials from entering nearby water bodies, thereby reducing pollution and maintaining water quality. These methods are essential in construction and land-disturbance activities to manage sediment runoff and protect aquatic ecosystems. Sediment control methods, which are not permanent, include the use of sediment basins, silt fences, erosion control mats and blankets, terracing, and temporary seeding.
Sediment basins are designed to capture and detain runoff, allowing sediments to settle before water is discharged. Silt fences and fiber logs filter sediment from runoff by creating physical barriers. Erosion control mats and blankets prevent soil erosion by stabilizing exposed soils and slopes. Effective sediment control requires proper planning, installation, and maintenance to ensure that these practices function correctly throughout the project duration.
The sections below feature types of sediment control approaches: erosion control mats or blankets, sediment basins, and terracing.
Check out additional resources on our Wildfire Resiliency Financing Dashboard.
Erosion Control Mats or Blankets
Erosion control mats or blankets are useful tools for preventing soil erosion and enhancing soil stability. These mats are typically made from biodegradable materials like straw, coconut fiber, wood excelsior, or synthetic materials such as polypropylene. The materials are woven together with structural netting or mesh to form a thick, porous mat that allows for airflow, moisture retention, and plant growth.
Erosion control blankets function by stabilizing soil particles and sediments, holding them in place to prevent erosion caused by water, wind, or other natural forces. This stabilization can also create an environment conducive for seeds to germinate and establish roots, as the mats protect the seeds while allowing the necessary air and water to reach them.
Sediment Basins
Sediment basins are temporary ponds equipped with control structures that capture eroded soil and other debris washed off during rainstorms or runoff events. These basins are designed to protect the water quality of nearby streams, rivers, lakes, and wetlands, as well as neighboring properties, by preventing sediment from entering these water bodies. Sediment basins achieve this by collecting and detaining runoff, allowing suspended solids to settle before the runoff leaves the site. This process helps to reduce sediment pollution and manage erosion effectively, thereby contributing to environmental protection and site stability. Given the sediment capture benefits, this approach can be applied for post-fire recovery efforts.
Terracing
Terracing involves constructing defined swales at regular intervals along a slope to reduce erosion by capturing surface runoff and directing it to a stable outlet. Terraces, which may consist of earth embankments, channels, or a combination of both, are often created by building earth ridges or berms. This practice is commonly used in conjunction with contour farming, grassed waterways, subsurface drains, and underground outlets.
Forest Management
Forest management focuses on managing vegetation, restoring ecosystems, reducing hazards, and maintaining forest health. By enhancing forest resilience to fire, insects, and diseases, forest management helps shape future forests, provides essential wood products, and diversifies local economies.
The sections below feature types of forest management approaches: forest thinning, revegetation, and reforestation.
Check out additional resources on our Wildfire Resiliency Financing Dashboard.
Forest thinning
Forest thinning is a mechanical method of removing trees to reduce the density of a forest and restore a more natural forest structure. It is a multifaceted process and often involves piling brush, pruning branches, and creating fuel breaks and can be accomplished with everything from hand tools, chainsaws, and rakes – to heavy equipment such as cranes, bulldozers, and wood-chippers.
Revegetation
Revegetation is the process of restoring or rehabilitating native ecosystems by planting native plants in areas where vegetation has been removed, damaged, or disrupted. The purpose of revegetation can vary depending on the area being rehabilitated, but may include rehabilitating or protecting degraded land, restoring flora and fauna, and enhancing biodiversity.
Reforestation
Reforestation is the process of growing and nurturing trees to maintain healthy, resilient forests that deliver essential benefits such as clean air and water, carbon sequestration, and shade. It accelerates the development of forest ecosystems following disturbances like wildfires, wind events, insect infestations, disease outbreaks, or planned timber harvests. By promoting natural regeneration or tree planting, reforestation supports wildlife habitat, water quality, wood production, recreation, and soil stabilization. Additionally, it helps mitigate the impacts of climate change by conserving tree genetic diversity and sequestering carbon to offset greenhouse gas emissions.
Process Based Restoration
Process-based restoration attempts to return a stream to its natural, undisturbed state by mimicking a healthy stream corridor’s natural processes and functions.
Techniques such as building beaver dam analogs and other simple structures help reconnect streams to their floodplains, slow water flow, reduce erosion, and improve habitat for wildlife. The goal is to enhance ecosystem resilience to stressors like drought, wildfire, and flooding, ultimately supporting healthy, functioning landscapes.
The sections below feature types of process-based restoration approaches: beaver dam analogs, large woody debris, and post-assisted log structures.
Check out additional resources on our Wildfire Resiliency Financing Dashboard.
Beaver Dam Analogs
A beaver dam analog is a man-made structure designed to mimic the natural dams built by beavers. These simple, low-tech structures are constructed using materials like wood and rocks to slow water flow in streams and rivers. Beaver dam analogs help restore natural hydrological and ecological processes, reduce erosion, improve water quality, and create wetland habitats beneficial for various species. By replicating beaver activity, beaver dam analogs support increased water retention, promote groundwater recharge, and enhance ecosystem resilience to environmental stressors such as drought and wildfire.
Large Woody Debris
Large woody debris refers to fallen trees, logs, branches, and other wood materials that are introduced into stream and river systems as part of ecological restoration efforts. These materials play a crucial role in shaping the physical habitat, stabilizing stream banks, and providing essential shelter and feeding grounds for aquatic organisms. The presence of large woody debris enhances habitat complexity by forming pools and riffles, which are beneficial for fish and other wildlife. Large woody debris can be naturally deposited through processes like tree falls, erosion, and landslides, or it can be actively placed in streams to accelerate habitat restoration. This approach not only aids in restoring the ecological balance of aquatic systems but also improves water quality and increases the resilience of watersheds to environmental changes.
Post-Assisted Log Structures
Post-assisted log structures are a key component of low-tech process-based restoration. They are simple, hand-built structures designed to mimic the functions of natural large wood in streams. These structures consist of posts driven into the streambed to secure logs and other woody materials, creating a more stable and complex habitat. Post-Assisted log structures help slow down water flow, promote sediment deposition, and enhance habitat complexity for aquatic and riparian species. They are typically used in conjunction with other restoration techniques such as beaver dam analogues to support ecological recovery and improve stream function.
Land Acquisition
In the context of a water utility operating on Forest Service land, land acquisition refers to the process by which the utility secures legal rights or ownership of land or easements from the Forest Service. This facilitates the construction, maintenance, or expansion of water infrastructure on federal property. This process is governed by Forest Service regulations and policies, balancing utility needs with environmental protection and public land management objectives. Water utilities may also acquire private land to facilitate the construction, maintenance, or expansion of their water infrastructure; these acquisitions are governed by rules regulating the sale of private property.
Land acquisitions help protect water quality and supply by preserving critical watershed areas, preventing development that could lead to pollution, and maintaining natural landscapes that support water filtration and storage. By securing land in this manner, water utilities help maintain the ecological health of forested watersheds, ensuring the sustainability of their operations and supporting broader conservation efforts.
Check out additional resources on our Wildfire Resiliency Financing Dashboard.
Lead Service Line Replacement
Lead service line replacement involves removing and replacing lead-containing pipes that connect water mains to individual buildings, ensuring safer drinking water for communities. Lead pipes pose significant health risks, particularly to children and pregnant women, as lead exposure can lead to developmental delays, neurological damage, and other serious health issues. By addressing these risks, lead service line replacement projects improve public health outcomes, safeguard drinking water quality, and enhance community trust in local water systems.
Eligible lead service line replacement projects under the Colorado SRF program may include:
- Full lead service line replacement: Removal and replacement of the entire lead pipe, including both the public and private portions of the service line.
- Partial lead service line replacement: Replacement of only the public portion of the service line while ensuring coordination with property owners to address private portions.
- Lead pipe identification and inventory: Locating and documenting the presence of lead service lines within a water system.
Lead service line replacement projects provide several benefits, including reducing exposure to harmful contaminants, enhancing compliance with regulatory standards, and protecting public health. Additionally, these projects help communities address aging infrastructure while ensuring equitable access to clean and safe drinking water. The Colorado SRF program offers financial assistance to support these critical initiatives, helping communities achieve long-term water quality and health objectives.