DEQ awards $3.2M loan for drinking water upgrades

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Published February 25th, 2026

Detected March 17th, 2026

Summary

The Idaho Department of Environmental Quality (DEQ) awarded a $3.2 million low-interest drinking water construction loan to the Bailey Creek Homeowners Association in Caribou County. The funding will support upgrades to the booster pump station and the purchase of new equipment.

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What changed

The Idaho Department of Environmental Quality (DEQ) has awarded a $3,200,000 low-interest drinking water construction loan to the Bailey Creek Homeowners Association in Caribou County. This funding, provided through DEQ's State Revolving Loan Fund, will be used to upgrade the booster pump station, purchase new water meters, a SCADA system, and a backup generator.

This award represents a financial assistance opportunity for public drinking water systems. While the loan has a 2% interest rate and a 30-year repayment term, it includes significant principal forgiveness ($2,814,323) and favorable terms due to the system qualifying as disadvantaged. Regulated entities involved in public water system infrastructure may find this information relevant for understanding available funding mechanisms and DEQ's support for such projects.

Source document (simplified)

DEQ awards $3,200,000 to the Bailey Creek Homeowners Association in Caribou County

February 25, 2026
Construction Grant, News Releases Contact: MaryAnna Peavey, Grants & Loans Bureau Chief, maryanna.peavey@deq.idaho.gov

BOISE – The Idaho Department of Environmental Quality (DEQ) awarded a $3,200,000 low-interest drinking water construction loan to the Bailey Creek Homeowners Association in Caribou County, Idaho.

The funding will be used to upgrade the booster pump station and purchase a new backup generator, water meters, and a supervisory control and data acquisition (SCADA) system.

DEQ is authorized by state law to make loans to help construct public drinking water systems. The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, carries a simple 2% interest rate, is payable over 30 years, and has $2,814,323 in principal forgiveness. Since the annual cost of drinking water service for residential customers exceeds 1.5% of the median household income, the Bailey Creek Homeowners Association qualifies as a disadvantaged system and receives more favorable repayment terms. The favorable loan terms represent a $5,613,869 savings to the community when compared to average costs for municipal general obligation debt issuances.

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February 25, 2026 at 11:17 am