Clean Water Infrastructure Loans
Financing for water and wastewater utilities upgrading infrastructure to reduce energy use and greenhouse gas emissions.
- Construction and permanent financing available
- One-time close options may be available for certain projects.
- Indicated pricing generally ranges from 4.50% to 6.50% per annum for qualified borrowers; actual rates are determined based on underwriting, project characteristics, and market conditions.
- Construction loan terms are generally up to 24 months. Permanent financing, if applicable, may be available upon project completion, subject to underwriting, with terms generally up to 60 months and amortization schedules up to 20 years (which may result in a balloon payment at maturity).
- Available to qualified water and wastewater utilities across Texas
- Priority focus on rural, small, and underserved water systems
Water and wastewater treatment accounts for roughly 3% of total U.S. energy consumption. For individual utilities, electricity costs can represent 25-30% of annual operations and maintenance budgets.
CEFTX provides construction and permanent financing for clean water infrastructure upgrades that reduce those costs and cut greenhouse gas emissions.
The Energy Cost Challenge for Water Utilities
Water utilities face a structural energy cost problem. Moving and treating water requires electricity at every stage, from pumping source water, to filtration and treatment, to pressurizing distribution systems and managing wastewater discharge. These costs are largely fixed and tend to increase over time.
Per the EPA, water and wastewater treatment represents approximately 3% of total U.S. energy consumption. Utilities typically spend 25-30% of annual operations and maintenance budgets on electricity. For small and rural systems operating on tight margins, this is often the single largest controllable expense.
Infrastructure upgrades that improve energy efficiency or add on-site generation can meaningfully reduce these costs and reduce the greenhouse gas emissions associated with utility operations. CEFTX’s clean water infrastructure loan is designed to make those upgrades financially accessible.
What This Loan Finances
This loan is available for clean water infrastructure upgrades that reduce emissions through either increased energy efficiency or new energy generation. Eligible projects may include:
Energy Efficiency Improvements
- High-efficiency pump and motor replacements
- HVAC and facility efficiency upgrades at treatment plants
- Advanced metering infrastructure and smart monitoring systems
- Pipeline rehabilitation and leak detection to reduce pumping demand
- Variable frequency drives and process optimization controls
New Energy Generation
- Solar panel installation at water or wastewater treatment facilities
- Battery storage systems to reduce peak demand charges
- Biogas capture and energy recovery at wastewater treatment plants
If your project has predevelopment costs not listed above, contact CEFTX to discuss whether they may be eligible.
Who Can Apply
This loan is available to qualified water and wastewater utilities in Texas pursuing energy efficiency or clean energy generation upgrades. Eligible applicants include:
- Municipal water and wastewater systems
- Rural water supply corporations and cooperatives
- Special utility districts and water control districts
- Nonprofit water providers
- Privately operated utilities serving Texas communities
CEFTX prioritizes investment in low-income, rural, and historically underserved communities as part of its Water Initiatives mission. Small and rural utilities are encouraged to contact us to discuss whether their project is a fit.
The information provided is for general informational purposes only and is not a commitment to lend or an offer of credit. All loan terms, including rates, fees, structure, and collateral requirements, are subject to change and will be determined based on underwriting and market conditions. Not all applicants will qualify.
This is not a commitment to lend or an offer of credit. All financing is subject to underwriting, credit approval, and final documentation.
Prequalification is preliminary and does not constitute credit approval or a commitment to lend.
Part of the Texas Clean Water Access Initiative
This loan product sits within CEFTX’s broader Water Initiatives program and the Texas Clean Water Access Initiative; a collaborative effort to modernize water infrastructure across the state. CEFTX is working with utilities, nonprofit partners, and regional organizations to build a portfolio of projects focused on:
- Small utility modernization
- Renewable-powered water and wastewater facilities
- Rural and tribal clean water access
- Water loss reduction and system resilience
In 2025, CEFTX and the South Texas Water Authority were awarded a $250,000 grant to launch a clean energy investment pipeline for water infrastructure in South Texas; one example of the collaborative, equity-focused work that drives this initiative.
Learn more about CEFTX’s Water Initiatives and how this loan fits into a broader strategy for Texas water infrastructure.