CalConserve Water Use Efficiency Loan Program

Portal ID:
Closed (2 total applications submitted)
Opportunity Type:
  • Loan
Last Updated:



The CalConserve Water Use Efficiency Revolving Fund is intended to be a sustainable funding source for water use efficiency projects by establishing a loan program to local agencies for specific types of water conservation and water use efficiency projects and programs to achieve urban water use targets, specifically water use efficiency upgrades and fixing expensive and difficult to repair customer leaks. 


The CalConserve program is intended to be a sustainable funding source for water use efficiency projects through loans to customers. The goal of the program is to have efficiency upgrades generate sufficient savings to customers allowing easy loan payback. As result, only projects providing loans to customers are eligible. Projects proposing grants or rebates to customers are not eligible for funding under this program. Local Agencies are eligible to apply.

There are two types of urban water use efficiency projects and programs eligible for funding under this PSP:

  • Project to provide loans to local agencies for water efficiency upgrades to eligible customers at no upfront costs. Eligible customers include residential, commercial, institutional, and industrial water users.
  • For local agencies to provide low-interest loans to customers to finance the installation of onsite improvements to repair or replace leaking water pipes.

Eligible for funding are water conservation and water use efficiency projects including, but not limited to:

  • Provide customers efficient dishwasher or clothes washer upgrades
  • Install water-saving fixtures including toilets, showerheads, faucets, and other upgrades Install hot-water recirculating pumps
  • Provide leak detection, repair and/or replacement Install landscape irrigation system upgrades
  • Provide for water conservation landscape conversion
  • Commercial, institutional, and industrial water use efficiency improvements
  • Recycled water projects

A local cost share of not less than 50% of the total project cost is required by Proposition 1. However, projects directly benefiting Disadvantaged Communities are eligible for reduced cost-share.

The financing term is up to 20 years or the useful life of the project, whichever is less. Loans serving DACs can be financed for up to 25 years.

The loan repayment to the State shall begin within 1 year of loan funding, depending on the repayment schedule established with DWR accounting.

The interest rate is equal to 0%.

The borrower is required to establish an acceptable dedicated source of revenue for repayment of the loan. Borrowers may be required to secure the services of a fiscal agent to assist in administering repayment of the loan.

DWR may waive up to 10% of the repayment amount for costs that could not be recovered by a local agency.

Maximum loan of $3,000,000 per local agency.

State funds shall not be used for local agency administrative costs.

Not less than 10 percent of the funds ($1 million) will be awarded to projects that directly benefit DACs or EDAs.

Funding is contingent upon successful sale of State General Obligation Bonds.

Eligibility Requirements

Eligible Applicants:

  • Public Agency

A project proposed by a public utility that is regulated by the Public Utilities Commission or a mutual water company shall have a clear and definite public purpose and shall benefit the customers of the water system and not the investors. For a proposed project that directly affects groundwater levels or quality, the applicant must also demonstrate groundwater planning requirements prior to applying for Proposition 1 funds.

Eligible Geographies:

Projects throughout California are eligible for funding.

Matching Funding Requirement:

Other State funds can be included in the total project cost budget but cannot be used as local cost share. The cost-sharing requirement may be waived for projects that entirely benefit a disadvantaged community (DAC) or an economically distressed area (EDA). A proportionate credit will be applied to projects or programs that commit to providing a percentage of the funds to DACs or EDAs within their service area.

Important Dates

The date (and time, where applicable) by which all applications must be submitted to the grantmaker. Time listed as “00:00” equates to midnight.
The date on which the grantor expects to announce the recipient(s) of the grant.
The length of time during which the grant money must be utilized.

Funding Details

The total projected dollar amount of the grant.
A single grant opportunity may represent one or many awards. Some grantors may know in advance the exact number of awards to be given. Others may indicate a range. Some may wish to and wait until the application period closes before determining how many awards to offer; in this case, a value of “Dependent” will display.
Grant opportunities representing multiple awards may offer awards in the same amount or in varied amounts. Some may wish to wait until the application period closes before determining per-award amounts; in this case, a value of “Dependent” will display.
Certain grants require that the recipient(s) provide a letter of intent.
Certain grants require that the recipient(s) be able to fully or partially match the grant award amount with another funding source.
The funding source allocated to fund the grant. It may be either State or Federal (or a combination of both), and be tied to a specific piece of legislation, a proposition, or a bond number.
  • State

Funding Source Notes:

The CalConserve Water Use Efficiency Revolving Fund is intended to be a sustainable funding source for water use efficiency projects as defined in Assembly Bill 2636 (AB 2636), commencing with Section 81000 of the California Water Code. AB 92 (Statutes of 2015) authorized the transfer of $10 million from Proposition 1 (Water Code Section 79746).

The manner in which the grant funding will be delivered to the awardee. Funding methods include reimbursements (where the recipient spends out-of-pocket and is reimbursed by the grantor) and advances (where the recipient spends received grant funds directly).
  • Advance(s)

Funding Method Notes:

Once the loan documents have been accepted and approved, a lump sum installment disbursement will be established. The borrower will receive the initial installment and will be required to provide semi-annual reports describing the work performed.

How to Apply

State agencies/departments recommend you read the full grant guidelines before applying.


For questions about this grant, contact: