United States
                       Environmental Protection
                       Agency
                          Office of Water
                          (4204)
                          Washington, DC 20460
EPA 832-F-96-003
December 1996
&EPA
The Clean  Water State Revolving
Fund Program
    An Innovative Partnership...

        THE Clean  Water State Revolving Fund
        program is an innovative method of financing
    a range of environmental projects.  Under the
    program, EPA provides grants or "seed money" to
    all 50 states plus Puerto Rico to capitalize state
    loan funds. The states, in turn, make loans to
    communities,  individuals, and others for high-
    priority water-quality activities. As money is paid
    back into the revolving fund, new loans are made
    to other recipients that need help in maintaining
    the quality of their water. Currently, the program
    has over $20 biliionm assets.    /-,..''   ,
                               ,*'',-  -"_'
    The State Revolving Fund program ira powerful
    partnership between EM and tie states. It allows
    states the feadbli^to pro^e fon^S for projects
    that will  *d&*$s their highest-priority water
    quality needs^ WMI% traditionally used to- build or
    improve wastewat«r%treatteit plants, loans are
    also used mfcreadngiylbr'
    • agricultural, rural, and urban runoff control
    • estuary improvement projects
    • wet weather flow control, including stormwater
       and sewer overflows
    • alternative treatment technologies.

    The program allows federal, state, and local
    agencies to leverage limited dollars. Because of
    the funds' revolving nature, the federal investment
    can result in the construction of up to four times
    as many projects over a 20-year period as a one-
    time grant.
    A major.benefit for municipalities and other loan
    recipients is the substantial financial savings they
    can realize. Whea- funded with a loan from this
    program, a project typically costs much less than
                          it would if funded through the bond market. Many
                          states offer low-interest rate loans to small and
                          disadvantaged  communities,   providing   an
                             Besides Randal savings, loan
                            recipients can realize significant
                                environmental benefits....
                          additional boost  to  get  projects  started. For
                          example, a state can make a zero-percent loan to
                          a community for 20 years, saving the community
                          50 percent of the total project costs over a similar
                          loan at 7.5 percent.

                          The Clean Water State Revolving Fund program's
                          primary mission  is to promote water  quality.
                          Besides   financial savings, loan recipients can
                          realize  significant   environmental  benefits,
                          jnctading. protection '~pf public  health  and
                          'conserv%tiort of loeal watersheds.- Loans for such
                          infrastructure projects also tend to stimulate local
                          economies   by    encouraging    commercial
                          development and  construction.
                          Eligible Projects: What's in it for You?

                              SINCE the program is managed largely by the
                              states, project eligibility varies according to
                          each state's program and priorities. Eligible loan
                          recipients may include communities, individuals,
                          citizens' groups,  non-profits,  and others.  Loan
                          funds may be used  to better the  quality of
                          watersheds through a wide range of water-quality
                          related projects; loans may also be used for the
                          protection of groundwater resources.

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Together with its partners, EPA continually seeks
ways to improve the program so that its resources
will  effectively  address the nation's  highest-
priority water  quality  issues.  Recently,  state
programs  have begun to  devote an increasing
volume of loans to  nonpoint  source, estuary
management, and other water-quality projects.
Eligible nonpoint source projects include virtually
any  Activity  that a  state has  identified  in  its
nonpoint source management plan. Such activities
include projects to control runoff from agricultural
land;  conservation tillage and other projects to
address soil erosion; development of streambank
buffer zones;  and  wetlands  protection and
 Supporting Cleaner and Safer
 Water: America's Clean Water Act

     The Clean Water Act is the primary federal
     legislation for protecting surface waters,
 such as rivers, lakes, and coastal areas. Over
 the past quarter century, implementation of
 the Act has substantially improved the quality
 of the nation's waters. The Act's main purpose
 is to maintain and restore the physical,
 chemical, and biological integrity of our .
 water. '
    esAct provides a framework of tools,
 including financial and technical assistance as
 well as regulatory requirements, that address
 various sources of water pollution. For
 example, EPA's Construction Grants program
 and its successor, the Clean Water State
 Revolving Fund, have provided over $60
 billion in financial assistance to help
 communities improve local water quality,
 primarily by building or upgrading municipal
 sewage treatment plants.
 The State Revolving Fund program is a
 powerful tool to help states, communities,
 and individuals meet the goal of the Clean
 Water Act: cleaner and safer water for all. Q
restoration. Estuary management  projects may
include any of the activities above, as well as
restocking' fish, restoration of wildlife habitat,
provision of marine sewage pump-out facilities,
and others.
Recipients may use loans for the planning, design,
and construction of publicly owned wastewater
treatment facilities or to build or rehabilitate sewer
collection systems. Urban wet  weather  flow
control  activities,   including  stormwater  and
sanitary and combined sewer control measures,
are also eligible for funding.
EPA  encourages  its  state  partners  to  use
watershed planning and improved priority setting
systems  to  choose projects  that address the
greatest  remaining environmental  challenges.
Because  of  its flexibility and   its  focus  on
environmental results, the State Revolving Fund
program  is  a common-sense  partnership  to
improve America's water resources. Q
For more information about the Clean  Water
State  Revolving Fund,   or for  a  program
representative in your state, please contact:

   Clean Water State Revolving Fund Branch
     U.S. Environmental Protection Agency
      401 M Street, SW (Mailcode 4204)
           Washington, DC 20460
 Phone: (202) 260-7359   Fax: (202) 260-1827
         Internet: http://www.epa.gov

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