&EPA
United States
Environmental Protection
Agency
Off ice of Water
(4204)
Washington, DC 20460
EPA 832-F-00-074
August 2000
Funding Class V Injection Well Closures with
the Clean Water State Revolving Fund
New EPA regulations require closure of all large-
capacity cesspools and many motor vehicle waste
disposal wells by 2007. As many as 8,000 of these Class
V injection wells, often owned or operated by small
businesses or small communities, must be closed or
upgraded. The Clean Water State Revolving Fund
(CWSRF) can help finance closure or upgrade of Class
V wells.
Class V Injection Wells
Class V wells are typically shallow disposal systems for
placing liquid waste underground. Large-capacity
cesspools, a type of Class V well, receive sanitary waste
from 20 or more people per day. They are typically
associated with rural churches and schools, strip malls,
office parks, and housing developments receiving waste
from multiple buildings. Motor vehicle waste disposal
wells, another type of Class V well, collect fluids from
vehicular repairs or maintenance activities. Class V
wells exist in every state, especially in unsewered areas
where residents are likely to depend on groundwater for
their drinking water. The Safe Drinking Water Act
requires regulation of all types of injection wells.
Problems Associated with Class V Wells
Class V wells can be a significant source of groundwater
contamination. These "low-tech" systems perform little
or no waste treatment, and the wastes placed in them
may be highly toxic. With 89% of America's public
water systems using groundwater as a drinking water
source, Class V injection wells can pose a significant
health risk.
Class V Wells Rule Requirements
New large-capacity cesspools and new motor
vehicle waste disposal wells are banned nationwide
as of April 5, 2000.
Existing large-capacity cesspools will be phased out
nationwide by April 5, 2005. They must be replaced
with an alternative type of treatment.
Existing motor vehicle waste disposal wells in
regulated areas will be phased out as dictated by
states. To determine the regulated areas, states must
assess and delineate groundwater protection areas,
according to the Safe Drinking Water Act source
water assessment plan guidelines, and must delineate
any other sensitive groundwater areas they deem
Septic tank
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Septic tank
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Cesspool
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necessary. Assessments for groundwater protection
areas must be completed by January 1, 2004, and
existing motor vehicle waste disposal wells will be
regulated in these areas one year later. Delineations
for other sensitive groundwater areas must be
completed by January 1, 2004. Owners/operators
have until January 1, 2007, to meet the rule
requirements. Exceptions to these requirements:
• States may apply for a one-year extension for
completing both the assessments and the
delineations, which, if approved, would extend
the compliance deadline for owners/operators.
• If a state fails to meet the deadline or the
extended deadline for completing the
groundwater protection area assessments, the
rule applies statewide, and owners/operators
have one year to comply.
• If a state fails to meet the deadline or the
extended deadline for completing the other
sensitive groundwater area delineations, the rule
applies statewide, and owners/operators must
comply by January 1, 2007 (or January 1, 2008,
if the state received an extension).
• Owners of motor vehicle waste disposal wells
can apply for a waiver from the ban and obtain
a permit. Permits require use of best
management practices, monitoring of the
injectate and sludge, and that fluids meet
maximum contaminant levels at the point of
injection.
• Owners/operators of motor vehicle waste
disposal wells may receive up to a one-year
extension if the most efficient compliance
option is connection to a sanitary sewer or
installation of treatment technologies.
The Clean Water State Revolving Fund
The CWSRF can ease the financial burden of complying
with the Class V rule. Each of the 50 states and Puerto
Rico have CWSRF programs which operate like banks.
Federal and state contributions are used to make low- or
no-interest loans for important water quality projects.
Funds are repaid over terms as long as 20 years. Repaid
funds are then recycled to fund other water quality
projects. Nationally, the CWSRF has in excess of $30
billion in assets and funds approximately $3 billion of
water quality projects annually. Over 8,000 loans have
been provided since 1988.
Getting a Project Funded
Class V wells can be a source of nonpoint pollution, and
projects to address these sources are eligible for CWSRF
funding under both the nonpoint source section (§319)
and the estuary section (§320) of the Clean Water Act.
To obtain CWSRF funding, a project must be identified
in a state's Nonpoint Source Management Plan or in an
estuary's Comprehensive Conservation and
Management Plan.
Viable replacements for large-capacity cesspools include
large-capacity septic systems with leach fields, sewer
connections, and small-scale onsite treatment plants,
many of which have been funded by the CWSRF.
Alternatives for motor vehicle waste disposal wells
include holding tanks, pretreatment systems to meet
permit requirements, and filtering/pretreatment with
connection to sewers. In addition, the CWSRF has
provided loans for underground storage tank
remediation, which is similar to replacing or upgrading
motor vehicle waste disposal wells.
Who May Qualify
A variety of entities could be eligible for a CWSRF loan
for nonpoint source and estuary projects. Recipients
have included community groups, individuals,
businesses, municipalities, conservation districts, and
nonprofit organizations. CWSRF programs have used a
variety of funding mechanisms, including direct loans
from the CWSRF, loans to municipalities who then lend
to individuals, and linked-deposit programs that lend
through banks. Since the CWSRF is managed by the
states, project funding and eligibilities vary according to
the priorities, policies, and laws of each state. Contact
your state's CWSRF program for details.
Sources of Repayment
Each state must approve a source of loan repayment as
part of the application process. Though finding a source
of repayment may prove challenging, CWSRF users
have identified many creative repayment sources, which
need not come from the project itself. Some possibilities
include:
• Recreational fees (fishing licenses, park entrance
fees)
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Fees paid by developers on other lands
Donations made or dues paid to nonprofit groups
and associations
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Success Stories
The following descriptions illustrate just some of the
examples of similar projects ongoing in states.
In August 1997, the Ohio EPA created a linked-deposit
program to make low-interest loans available through
participating counties to individual homeowners needing
to upgrade or replace their home sewage disposal
systems. To receive a CWSRF loan:
• The homeowner obtains a county permit which
specifies the proper installation, operation, and
maintenance of the onsite system.
• The homeowner takes a certificate to any bank that
participates in the Linked-Deposit Program.
• Using its own criteria, the lending institution decides
whether to offer the applicant a loan and at what
interest rate and term.
• The lending institution notifies the Ohio EPA of
approved loans, and the Agency deposits the loan
amount in the institution at a reduced interest rate.
• Savings from the reduced interest rate are passed on
to the loan recipient.
Thus far, 18 loans in two counties have been made
totaling $111,500. Several more counties in the state are
planning their own programs.
In 1995, Delaware began making CWSRF loans directly
to low- and moderate-income homeowners for septic
system repairs. The loans of up to $10,000 carry a 3%
interest rate and have a repayment period of up to 20
years. The state performs a financial capability analysis
on the applicant including a personal credit report. A
lien is placed on the property to secure the loan. Once
the repairs are made, a Department of Natural Resources
representative inspects the system. So far the program
has loaned $1.2 million to 158 homeowners.
The state of Wyoming makes CWSRF loans to the
Leaking Aboveground & Underground Storage Tank
(LAUST) Remediation Program. The program uses the
money to fund all stages of LAUST site cleanup from
initial testing through operation and maintenance. The
state's Mineral Royalty Trust Account provides a 20%
match for these loans. Since 1990, six loans have been
issued from the CWSRF totaling over $57 million.
Minnesota's Department of Agriculture operates a
Best Management Practices loan program which has
funded a variety of water quality projects including
feedlot upgrades, manure storage and handling
improvements, soil erosion prevention, conservation
tilling equipment, sewage treatment system repair, and
abandoned well closures. The state issues interest-free
CWSRF loans to counties and soil and water
conservation districts. The county or district, through
banks acting as agents, lends the money to farmers,
businesses, or landowners at up to 3% interest for a 2- to
10-year term. Local governments determine
environmental priorities, and the banks determine the
financial feasibility of the targeted projects. The
counties and districts pay the principal back to the state
within 20 years. Since the program's inception in 1995,
Minnesota has issued $41 million in loans and funded
over 2000 projects.
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Ch alien ges Ahead
EPA encourages states to use their CWSRF resources to
finance high-priority water quality projects. Those
interested in obtaining funding for closing and
upgrading affected Class V wells are encouraged to seek
out their CWSRF programs and apply for funding to
address these water quality projects.
For more information on the CWSRF, or for a
program representative in your state, please contact:
The Clean Water State Revolving Fund Branch
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW (Mailcode 4204)
Washington, D.C. 20460
Phone: (202) 260-7360 Fax: (202) 260-1827
Internet: http://www.epa.gov/OWM/Fman.htm
For more information on Class V injection wells
please contact:
Underground Injection Control Program
Office of Ground Water and Drinking Water
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue (Mailcode 4606)
Washington, D.C. 20460
Phone: (202) 260-1993
http://www.epa.gov/safewater/uic/classv.html
Clean Water
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