United States
                       Environmental Protection
                           Office of Water
                           Washington, DC 20460
EPA 832-F-98-003
March 1998
The Clean  Water State Revolving  Fund
and the Clean Water Action Plan
       THE 25th anniversary of the Clean Water
       Act in October  of 1997  sparked the
   development of the Clean Water Action Plan
   (CWAP).  It was developed to renew the
   commitments of federal, state, tribal, and local
   governments and citizens to the goals of the
   original Clean Water Act, to provide "fishable
   and swimmable" waters to all Americans.

   Although great progress has been made in the
   last 25 years to eliminate pollution from our
   nation's waters, water quality problems still
   exist.  States report that about 40 percent of
   their  assessed waters  do not meet water
   quality goals and  1,000 major watersheds still
   contain moderate to  serious water  quality
   problems.    A cooperative effort between
   several  federal   agencies, including  the
   Environmental Protection Agency  (EPA),
   produced  the  CWAP  to address  these

   In our ongoing efforts to encourage expanded
   use of the EPA's Clean Water State Revolving
   Fund (SRF) to reduce polluted runoff we have
   set a goal to increase total funding of polluted
   runoff projects to at least 10 percent annually
   by 2001.  The Clean Water State Revolving
   Fund provides a powerful funding resource for
   implementing the Clean Water Action Plan.
   The SRF is  providing close to  $3 billion in
   annual funding  for water  quality  projects
   nationwide.  By the end of FY 97, the SRF
   had funded a total of more than $650 million in
   nonpoint source and estuary projects around
   the country.  We are working to expand this
   total  through intensified  marketing  and
   outreach as well as involvement in initiatives
   like the CWAP.

   Three Levels of Involvement...
                              THERE are three levels of SRF involvement
                              within the  CWAP:  the first includes
                           specific SRF commitments listed under CWAP
                           Key Actions; the second includes SRF funded
                           activities that support a Key Action; and the
                           third level contains  opportunities for future
                           SRF involvement in planning, program design,
                           funding, or otherwise. These three categories
                           establish an important connection between the
                           SRF and CWAP implementation.
                                  Specific SRF Commitments
                           The SRF is specifically mentioned in two Key
                           Actions.  In support of the Action Plan, we
                           have committed to increase the number and
                           dollar amount of SRF  loans used to prevent
                           polluted  runoff.    In  addition,  we have
                           committed to increase substantially the number
                           of states  using  integrated priority  setting
                           systems to make funding decisions.  Integrated
                           priority setting systems will enable states to
                           direct SRF assistance to a variety of point and
                           nonpoint   source  projects  based  on
                           environmental priorities.   Under the  Action
                           Plan, we are also  committed to guiding states
                           on the use of loan  funds  in support  of
                           decentralized sewage management systems.

                               SRF Activities Supporting CWAP
                           With  a wide array of project eligibilities,
                           innovative uses of the SRF should provide
                           broad based financial support for many Key
                           Actions listed in  the Plan.  Nonpoint source
                           (NFS) and estuarine activities that have been
                           or can be  funded by   the  SRF  include
                           agricultural BMPs, storm water abatement,
                           wetlands restoration and preservation, erosion
                           controls,  source  water protection, wildlife
                           habitat  restoration,   and   purchases   of

conservation  easements.    Through   SRF
assistance, these and other activities funded by
the SRF may be used to support the Plan's
Key Actions to: address beach and shellfish
area  closings,  implement  coastal  NFS
programs, establish conservation buffers on
agricultural lands, reduce polluted runoff from
animal feeding operations (AFOs), increase the
acreage of wetlands, address noncompliance
with   existing  Phase  I   storm  water
requirements, and  implement  source water
protection programs.

    Opportunities for SRF Involvement
Finally, the SRF will seek involvement in the
planning and implementation of various water
quality initiatives proposed in  the  CWAP.
Where possible, the  SRF may be used as a
funding source.  The expertise within the SRF
program could be  utilized to:  support  the
activities of groups involved in the cleanup of
watersheds,   assist  in   reviewing  the
effectiveness of wetlands mitigation banking,
help  states  define  watershed  restoration
priorities, help orient federal programs on a
watershed  basis  and   make   them  more
collaborative, and coordinate GPRA goals as
related to watershed management to identify
opportunities  for  pooling  resources,
combining  budgets,   and   reporting
Proposed Activities...

   IN support of our commitment to promote
   and increase the use of integrated priority
setting systems, we are conducting regional
Funding Framework workshops throughout
the year.  These workshops will train states in
the development and use of integrated priority
setting  systems  to  make  SRF  funding
decisions.   The  workshops will also bring
together representatives from the SRF, NFS,
estuaries, wetlands and watershed community,
making the  SRF  an  important  tool  in
supporting the watershed approach.
resources and encourage the use of loans to
support Key  Actions of the CWAP, we will
reach out to key stakeholders  and provide
guidance and assistance on revolving fund uses
specifically related to the Plan.  Anticipated
subject areas for fact sheets include: continued
use  of  the  SRF for wetlands restoration,
funding conservation easements, supporting
decentralized  sewage  management,  and
funding BMPs to reduce polluted runoff from
AFOs.  The  SRF staff will also seek to  be
involved in CWAP implementation  activities.
Suggestions and feedback from the CWAP
community on ways to  do so are welcome.
We will work with the Regions and States and
disseminate   information  to  key  CWAP
stakeholders. Q
For more information  about  the Clean
Water  State  Revolving  Fund's  role  in
supporting the Clean Water Action Plan,
please contact:

 The Clean Water State Revolving Fund Branch
    U.S. Environmental Protection Agency
      401 M Street, SW (Mailcode 4204)
          Washington, D.C. 20460

  Phone: (202) 260-7359 Fax: (202) 260-1827
       e-mail: srfmfo@epamail.epa.gov
      Internet: http://www.epa.gov/OWM
To raise awareness  of  the  SRF's  vast