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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