&EPA
United States
Environmental Protection
Agency
Office Of Water
(4204)
EPA 832-F-99-052
August 1999
Using The Clean Water
State Revolving Fund For
Watersheds Impaired By Mining
TheProblem
In contrast to historical mining activities, modern mining operations
are generally well designed, operated and regulated. But problems
caused by past mining activities remain. Mining can affect nearby
bodies of water-both directly, by disturbing surface and ground
water, and indirectly through runoff. The result can be serious
pollution and public health problems. Some mining-related water
problems are increased sedimentation, released toxins and solutions
leached from impoundments which generate acids from waste rock
and pit walls. Mine dust and tailings are troubling as well. There are
believed to be between 200,000 and 500,000 inactive and abandoned
hardrock mines nationwide. In 1995, Region 3 of the Environmental
Protection Agency (EPA) found that 5,100 miles of streams in the
Appalachian region were adversely affected by acid mine drainage.
Much of this can be attributed to abandoned coal mines. Many
stakeholders are concerned: federal agencies, states, tribes, local
governments, industry and environmental groups. A watershed
approach to solving these problems fosters communication and
cooperation among all stakeholders.
What is the Clean Water State Revolving Fund (CWSRF)
The 51 CWSRF programs work like banks (each state and Puerto
Rico has one). Federal and state contributions are used to capitalize
or set-up the programs. These assets (in excess of $27 billion) are
used to make low-interest loans for important water quality projects.
The CWSRF programs currently issue approximately $3 billion in
loans annually. Funds are repaid to the CWSRF's over terms as
long as twenty years. Repaid funds are recycled to fund other water
quality projects. The CWSRF can also provide loan guarantees,
bond insurance, and refinancing of existing debt.
What's in it for You?
In considering the impacts of mining on the environment, EPA expects
the CWSRF to become a significant source of funding for nonpoint
source projects, such as mining. Certain mining sites that contribute to
water quality impairment could benefit from this huge financial
resource. Loans are issued at below market rates (0% to less than
market), offering borrowers significant savings overthe life of the loan.
Sources of Loan Repayment
Though finding a source of repayment may prove challenging, it does
not have to be unnecessarily burdensome. Many users of the CWSRF
have demonstrated 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 on other lands
recreational fees (fishing licenses, park entrance fees)
stormwater management fees
wastewater user charges
donations or dues made to nonprofit groups and associations
resource extraction fees
The CWSRF will invest 10% of its funds
on polluted runoff projects by 2001.
-Clean Water Action Plan
Restrictions
Inactive or abandoned hardrock mines permitted under the National
Pollutant Discharge and Elimination System (NPDES) or coal mines
permitted under the Surface Mining Control and Reclamation Act
(SMCRA) may be eligible for CWSRF funding if publicly owned.
Active hardrock mines that are permitted under NPDES are not eligible
for funding unless publicly owned. Active SMCRA permitted coal
mines must also be publicly owned to become fundable under the
CWSRF. Non-permitted inactive or abandoned mines may be fundable
as Section 319 nonpoint source projects if they are part of a state's
Nonpoint Source Management Plan. Mining activities are singled out
as a priority for funding under Section 319.
Eligible Projects
Potential projects include the removal of tailings from stream beds and
flood plains, also the remediation of aquatic or secondary impacts by
means of:
• discharge diversion
• runoff dispersion
sediment control and collection
grading and capping of contaminated sources
• backfilling of mine openings
• replanting and soil stabilization
The following are examples of mining projects, that while funded under
the Clean Water Act as Section 319 nonpoint source grants, would be
eligible for loans from the CWSRF.
The Colorado Division of Minerals and Geology and an operating
mining company are cooperating to reduce the drainage ofheavy metals
into a tributary of Clear Creek. The processing of mine wastes for a
heap leaching operation provides an opportunity for the mining
company to do site reclamation and drainage stabilization. The $52,000
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Nonpoint Source grant will be used for grading and capping mine
tailings, the placement of check dams and other stabilization techniques.
The Westmoreland County Conservation District, in cooperation with
the Western Pennsylvania Coalition for Abandoned Mine Reclamation,
used a NFS grant to complete acid mine drainage remediation work to
reduce contamination from an abandoned coal mining site.
The Colorado Division of Minerals and Geology, in association with
the Animas Watershed initiative, (which includes local citizens,
agencies, mining interests, and state and federal land managers), is
conducting a project to improve water quality by removing mine wastes
from drainage areas and neutralizing acid mine water using limestone
backfill of the mine entrance. The mine waste area will then be
regraded and revegetated.
A $89,000 grant with the Colorado San Juan Resource Conservation
and Development organization will demonstrate the use of hydrologic
controls and revegetation to reduce heavy metal contamination of the
Animas River watershed.
A $47,000 NFS grant to an earihmoving company is being used to
remove mill tailings and mine waste from the Kerber Creek, Colorado
stream channel and dispose of them in a nearby waste repository. After
the mine waste and tailings have been removed from the creek, the
banks will be stabilized and revegetated.
I'm Interested-WhatNext?
Since the CWSRF is managed largely by the states, project funding may
vary according to priorities within each state. Projects become eligible
for funding by being included in the state Nonpoint Source Management
Plan, the state Priority List, or part of a National Estuary Program
Comprehensive Conservation and Management Plan. Those interested
in cleaning up polluted runoff resulting from mining activities should
seek out their CWSRF programs, learn 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, please contact:
The Clean Water State Revolving Fund Branch
U.S. Environmental Protection Agency
401M Street, SW (Mail Code 4204)
Washington, DC 20460
Phone: (202) 260-7359 Fax: (202) 260-1827
internet: www.epa.gov/OWM
Since 1989 the CWSRF program has fancied 1,100 projects, investing
more than $830 million to clean up polluted runoff.
Clean Water
State Revolving Fund
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