&EPA
United States
Environmental Protection
Agency
Office of Water
(4204)
Washington, DC 20460
EPA 832-F-99-050
June 1999
Funding Water Conservation and Reuse
with the Clean Water State Revolving Fund
The Problem
Total demand on the nation's public water supply systems
has nearly tripled since 1950. As water use has
escalated, so has the need to collect and treat an increasing
volume of wastewater. The 1996 Clean Water Needs Survey
documented a national wastewater investment need of $ 140
billion over the next 20 years. Because facilities that collect
and treat wastewater are sized to meet flow projections,
when flows are inflated by wasteful water use, it costs more
than necessary in capital and operating costs to assure safe
and efficient services. Water conservation and reuse
programs can be developed to help systems avoid,
downsize, or postpone wastewater projects. There are
also benefits from increased treatment plant efficiency and
reduced energy costs. In addition to lowering costs and
improving the reliability of wastewater systems, water
conservation and reuse are important for meeting the
environmental goals of many states and communities.
Water Conservation and Reuse/Clean Water State
Revolving Fund Collaboration
The Clean Water State Revolving Fund (CWSRF)
programs in every state and Puerto Rico work like
banks. Federal and state contributions are used to capitalize
or set up the programs. These assets, in turn, are used to
make low or no-interest loans for important water quality
projects. Funds are repaid to the CWSRFs over terms as long
as twenty years. Repaid funds are then recycled to fund
other water quality projects. These CWSRF resources can
help augment the financial resources currently available to
fund the following types of water conservation and reuse
projects:
Structural Measures (eligible when the equipment or
facility is publicly-owned)
/ Installation of meters
/ Plumbing fixture retrofits or replacements (e.g., in
government buildings, public housing)
/ Use of efficient landscape irrigation equipment (e.g.,
in public parks, golf courses, etc.)
/ Recycling gray water (in municipal buildings)
/ Reuse of wastewater (public purposes)
Nonstructural Measures
/ Use of incentive-based wastewater service charges
/ Use of ordinances or regulations to conserve water
use
/ Public education programs
Capacity of the CWSRF
Nationally, the CWSRF has in excess of $27 billion in
assets (includes loans already made and current funds
available to make loans). Currently, the CWSRF is funding
approximately $3 billion in water quality projects each year.
Getting a Project Funded
The Clean Water Act (CWA) of 1987 authorized the
CWSRF to fund point source (§212), nonpoint source
(§319), and estuary (§320) projects. Water conservation and
reuse activities/projects may be considered point source if
they are developed as a component of a wastewater treatment
works (§212) project. As stipulated in §603 (c) of the CWA,
§212 projects must be publicly owned to receive CWSRF
funds. Some water conservation and reuse projects, however,
may be classified under the nonpoint source (NFS) category
if they are part of a larger polluted runoff abatement activity.
Included in a long list of eligible CWSRF loan recipients for
NPS and estuary projects are community groups, individuals,
agricultural associations and nonprofit organizations. Since
the CWSRF program is managed by the states, project
funding varies according to the priorities, policies, and laws
within each state. Eligible applicants also vary by state.
The necessary first step in obtaining CWSRF funding is to
get the activity/project in a state's Intended Use Plan.
Contact your state's CWSRF program for details.
Sources of Loan 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, it does not have to be
burdensome. Many users of the CWSRF have demonstrated
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a high degree of creativity in identifying sources of loan
repayment. The source of repayment need not come from
the project itself.
Some possibilities include
• Fees paid by developers
• recreational fees (fishing licenses, park entrance
fees)
• Stormwater management fees
• Wastewater user charges
• Donations or dues made to nonprofit groups and
associations
Learning by Example
Maui, Hawaii used CWSRF funding to upgrade the
filtration, disinfection and ancillary facilities at the Kihei
wastewater treatment plant to produce a consistently high
quality effluent. The reclaimed water will be used to help
meet the needs of golf courses, resort areas, county parks,
community centers and schools affecting 1,200 acres. The
loan repayment will be from the city's general fund.
Royal City, Washington is using a CWSRF loan to build a
new wastewater treatment facility in which the reclaimed
water will be used to augment irrigation water in the
summer, and enhance local wetlands and lakes in the winter.
Repayment will be from user charges.
The East Alamosa Water and Sanitation District in
Colorado is using a CWSRF loan for the purchase and
installation of publicly owned water meters in the
distribution system. Metering provides essential data for
charging fees based on actual customer use. This has been
found to contribute directly to water conservation. The
water meters will reduce water usage by an estimated
3,050,000 gallons per year. Loan repayment will be made
from wastewater user charges.
In 1991, California initiated an agricultural water
conservation program using their CWSRF. State districts
use CWSRF loans to purchase irrigation equipment that is
then leased to farmers so that they can convert from
furrows/siphon tube irrigation to sprinkler/gated pipe
irrigation. By changing irrigation methods, farmers can use
less water and reduce subsurface drainage. To date,
approximately $45 million has been loaned to 7 districts to
operate this program. The districts pay back the loan with
money collected from leasing the equipment.
San Diego, California initiated a Public Facilities Retrofit
program in 1992. While not funded from the CWSRF, this
project would be eligible for a CWSRF loan. Seventy city-
owned structures were retrofitted with low-flush toilets
(toilets that require 1.6 gallons or less per flush). The water
savings resulting from this project are estimated as almost
8.5 million gallons per year. Since then, the City has
retrofitted 290 additional public buildings.
Houston, Texas has implemented a water conservation
education program as one part of a comprehensive plan to
reduce water use that has resulted in an overall savings of
$3.70 for every $1.00 invested in water conservation. The
education program promotes retrofitting of older structures
with efficient fixtures, and works through city schools, a T-
shirt design contest, a display used at festivals and meetings,
and a public speaking program. Although not funded from
the CWSRF, these types of activities would be eligible for
funding.
Challenges Ahead
EPA encourages states to use their CWSRF resources to
finance the widest variety of water quality projects while
addressing high priority projects in targeted watersheds.
Those interested in advancing water conservation and reuse
should seek out their CWSRF programs, gain an
understanding of how their state program works, and
participate in the annual process that determines which
projects are funded.
For more information on the CWSRF, or for a
program representative in your state, 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
Internet: http://www.epa.gov/OWM
For More information on Water Conservation
and Reuse, contact:
The Municipal Support Division
U.S. Environmental Protection Agency
401 M Street, SW (Mail Code 4204)
Washington, DC 20460
Phone: (202) ^y^ 260-7288 Fax:
(202)260-0116 ^Ifcfc
internet: ^? J www.epa.gov/
OWM
Clean Water
1 RcvoEving I'und
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