FOR FURTHER INFORMATION
For further information on the State Revolving
Fund program, other funding sources, and
appropriate technologies for small
communities, contact EPA's Small Community
Outreach Coordinators or the National Small
Flows Clearinghouse at 1-800-624-8301:
United States 430/09-91-018(8}
Environmental Protection October 1991
Agency
Office Of Water (WH-556)
BOSTON
(CT,MA,ME
NH.RI.VT)
NEW YORK
(NJ,NY,PR,VI)
PHILADELPHIA
(DE.MD.VA,
PA.WV)
ATLANTA
(AL,GA,FL,KY
MS,NC,SC,TN)
CHICAGO
(IL.IN.MI,
MN,OH,WI)
DALLAS
(AR,LA,NM,
OK,TX)
KANSAS CITY
(IA,KS,MO,NE)
DENVER
(CO.MT.ND,
SD.UT.WY)
SAN FRANCISCO
(CA,HI,AZ,NV)
SEATTLE
(AK,ID,OR,WA)
.Printed On Recycled Paper
Mark Malone
EPA Region I
617-565-3492
Muhammad Hatim
EPA Region II
212-264-8969
Bob Runowski
EPA Region III
215-597-6526
Roger DeShane
EPA Region IV .
404-347-3633
Al Krause
EPA Region V
312-886-0246
Gene Wossurn
EPA Region VI
214-225-7130
Kelly Beard Tittone
EPA Region VII
913-551-7217
Harold Thompson
EPA Region VIII
303-293-1560
Carla Moore
EPA Region IX
415-744-1935
Bryan Yim
EPA Region X
206-442-8575
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SELECTING THE RIGHT
TECHNOLOGY
There are a wide variety of low-tech, lower
cost wasiewater treatment alternatives
available for small communities. These
include:
© Small diameter gravity sewers, lagoons,
and land application
@ Cluster systems combinedjwith soil
absorption fields
9 Pressure sewers combined with lagoons
and land application
Such systems are usually eligible for SRF
loans. Using them will often result in lower
capital and operation and maintenance costs
for communities. They are easier to operate
and maintain, and may build on the systems
already in use.
Many small communities have already taken
creative approaches to wastewater
treatment. Both State and national
organizations are available to help. The last
page of this brochure lists telephone
numbers of EPA Regional contacts to call to
obtain more information.
HOW TO GET STARTED
To begin planning a wastewater system, the
best first step is to contact the State
environmental agency staff that work with small
communities. They can help by guiding you
through the planning and construction process,
identifying alternative financing sources, and
offering advice after facility start-up.
The basic steps to take include:
1. Developing a facility plan that shows that
present and future conditions have been
reviewed, alternative collection/treatment
approaches have been identified and
assessed, and the best affordable alternative
has been selected.
2. Exploring alternative financing sources. You
should identify how the SRF program and other
state, federal, and local sources can be
combined to provide the best financing
approach.
3. Building public support for the facilities.
Managers should communicate the need for
new facilities to residents, identify how the
selected approach is well suited for the
community, and implement a user fee system
to cover the facility costs.
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CONDITIONS
CONFRONTING SMALL
COMMUNITIES TODAY
THE SRF PROGRAM
WILL HELP SMALL
COMMUNITIES
ADDRESS FUNDING
NEEDS
Managers of small communities are confronted
with a variety of challenges when planning
wastewater projects. One major challenge is
securing funding for a wastewater project at a
time when demands from other environmental
programs (e.g., drinking water) and for other
community services, such as education, are
increasing.
In small communities, per capita income is
generally lower than that found in metropolitan
communities, costs are higher for traditional
wastewater facilities - unit costs ($/gallon
treated) decrease as a system size increases,
and many small communities have limited .
access to long-term credit.
Despite these conditions and challenges
confronting small communities, many are
addressing wastewater construction needs.
Such actions contribute to:
© Reduction of local water pollution and
protection of public health
® Compliance with state and Federal laws
® Encouragement of local growth and
economic development
With today's competing demands for local
resources, it is critical that communities do
what ever is possible to make their projects
more affordable. Community leaders should
consider the use of small scale appropriate
technologies for collection and treatment and
should explore all available alternative
financing sources.
The State Revolving Fund (SRF) program was
authorized by the 1987 Amendments to the
Federal Clean Water Act, Through it, EPA
makes grants to States to establish their SRF
programs. The SRF program replaces the
Federal Construction Grant program for
wajstewater treatment facilities.
SRFs may provide assistance for the
construction of publicly owned wastewater
treatment works, and the implementation of
nohpoint source and estuary management
activities included in approved State plans.
The SRF program gives States the flexibility to
offer loans and other types of financial
assistance for qualified wastewater projects
and other qualified water quality management
activities. Many States offer SRF loan rates
that are two to four percent below market
rates. Some States offer even lower rate (e.g.,
two- percent) loans for small economically
disadvantaged communities.
The subsidy provided by these low rates can
be substantial. For example, a 20 year zero
percent SRF loan is roughly equivalent to a 50
peVcent grant if the market rate available for a
community loan is 8 percent.
Other SRF program benefits include the
foHowing:
e Loans may fund appropriate technology
approaches (i.e., decentralized, low-tech
solutions)
e Loans may fund collection systems, reserve
capacity, and projects directed at economic
grpwth
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HOW CAN YOUR
COMMUNITY RECEIVE
AN SRF LOAN?
OTHER FUNDING
SOURCES
ARE IMPORTANT
To receive an SRF loan, communities need to
comply with some basic requirements:
© Projects must be eligible for funding under
the SRF program.
® Loans must be repaid at an interest rate
specified by your State.
• The maximum term for a loan is 20 years.
®. An environmental review must be conducted
for each project.
© Some communities will also have to comply
with project planning and construction
requirements. These requirements do not
pertain to selection of architectural/engineering
firms or to other procurement activities.
Each year States prepare a list of projects that
will receive SRF assistance. The list is subject
to public review. To participate in the SRF
program a community's project must be
included on this list.
State SRF program staff are available to help
communities understand the SRF program
requirements and application process. If
necessary, they will also help communities
complete an application for SRF assistance.
It's Important that small communities identify all
options that are available for funding
wastewater construction projects and other
water quality management activities. SRF
loans can be combined with other Federal and
State funding assistance. By combining
funding sources, particularly, grants, if
available, communities can help to make their
projects more affordable.
State staff will help communities devise the
best approach for their community. For
example, it may be possible for a community to
obtain a low interest SRF loan in combination
with a state grant, to further reduce the cost of
theproject.
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