I
Clean Water
State Revolving Fund
FACT
SHEET
National Environmental Performance Track
and the Clean Water State Revolving Fund
The Opportunity
EPA encourages states to target Clean Water State
Revolving Fund (CWSRF) assistance to projects that
achieve sustained water quality improvements and address
priority water quality problems. States could increase the
environmental benefits of their CWSRF funding by making
proj ects from facilities that are enrolled in EPA's Performance
Track Program more competitive in the funding eligibility
process. Performance Track member facilities have
committed to continuous environmental improvement
through performance enhancement.
APerformance Track facility could be eligible for a CWSRF
loan if it works to:
• expand or upgrade a municipal wastewater treatment
plant;
reduce unregulated runoff;
reduce regulated runoff by public agencies;
expand acres of wildlife habitat;
donate or acquire conservation easements;
remediate a brownfield site; or
help suppliers to reduce water quality impacts
(e.g., food processors working with farmers that supply
their raw materials to also reduce farm runoff).
The Performance Track Program
EPA s Performance Track Program recognizes and supports
facilities that are top environmental performers. As a
voluntary, performance-based program, it has worked since
June 2000 to coordinate with EPA's Regional offices and
the states. Performance Track member facilities must:
• operate beyond regulatory requirements;
• demonstrate commitment to continuous improvement;
• successfully develop and implement an environmental
management system (EMS) that has been through one
complete cycle (typically one year); and
• be actively involved with their communities.
Qualifying EMSs include these elements:
• policy;
• planning;
• implementation and operation;
• checking and corrective action; and
• management review.
The Performance Track Program currently has over 300
facilities and is growing. Facilities commit to four
environmental improvements, chosen from categories in
regulated and non-regulated areas: e.g., material
procurement; suppliers' environmental performance;
material use; water use; energy use; land use; air emissions;
discharges to water; waste; and products. Small facilities
(less than 50 employees) commit to two improvements.
Performance Track application reviews include compliance
checks. Membership is for three years, provided facilities
submit annual reports summarizing and measuring progress
on commitments and continue to comply with environmental
regulations.
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; Clean Water
State Revolving Fund
FACT
SHEET
To support environmental improvements at member
facilities and to encourage others to j oin, EPA continues to
develop benefits including:
• public recognition;
• networking opportunities;
• low priority for routine inspections; and
• admini strative and regulatory incentives
(e.g., reducing reporting requirements).
Performance Track has been developing incentives in the
air, water, and waste programs. These incentives will benefit
facilities by recognizing environmental accomplishments,
encouraging performance beyond regulatory requirements,
and improving their bottom lines. In addition, some socially
responsible investment firms use Performance Track
membership as a criterion when developing investment
ratings.
EPA has partnered with many states (and in several cases
has developed memoranda of agreement to reinforce these
commitments), trade associations, and non-governmental
organizations to help promote the value of Performance
Track, recruit facilities, and deliver incentives to members.
Performance Track has attracted facilities of various sizes
from a wide range of sectors across the U. S. While 80%
of member facilities are manufacturers, EPA is working
hard to increase program benefits for the public sector.
Performance Track facilities commit to reduce their
environmental impacts by improving performance in a range
of categories. The most common choice is waste
generation, followed by materials use, air emissions, energy
use, water use, discharges to water, and habitat
preservation/restoration.
Why EMSs?
The most challenging aspect of the Performance Track
program is the environmental management system (EMS)
requirement for member facilities. An EMS is a
management framework based on specific policies,
procedures, and practices for reducing environmental
impacts. EMSs are not limited to regulated activities. A
number of publicly owned treatment works (POTWs) have
developed EMSs for their operations and are achieving
significant benefits, including better performance, reduced
costs, improved regulatory compliance, and increased
credibility with their communities. Some financial interests
are beginning to consider POTW use of EMSs when they
set bond ratings.
CWSRF funds can support EMS development that is part
of construction, modification, or expansion of a POTW.
EPA is encouraging POTWs to consider applying to
Performance Track and is leading several efforts to assist
POTWs and other public agencies adopt EMSs. EPA
has developed a number of tools to help public agencies,
including POTWs, develop EMSs. EPA also plans to
complete an EMS Implementation Guide geared specifically
to the needs of POTWs in 2004. This guide will be made
available through the websites listed below.
The Clean Water State Revolving Fund
CWSRFs are operated by States and provide loans at
below-market interest rates to finance projects that
address water quality problems. Loans support a wide
range of proj ects, including those dealing with municipal
wastewater treatment plants, nonpoint source (NPS)
pollution (e.g., agriculture, wetlands, underground storage
tanks, mines, brownfields, and wildlife habitat), and
estuaries. Recipients have included municipalities, utilities,
businesses, community groups, and private individuals.
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FACT
SHEET
; Clean Water
State Revolving Fund
Every state and Puerto Rico has a CWSRF program with
more than 10 years of operation. Each CWSRF works
like a bank. Federal and state contributions provide
additional capital to the CWSRFs to make low-interest
loans for key water quality improvement proj ects. (In 2003,
the average interest rate was 2.2 percent.) Repayment over
a loan term of up to 20 years flow back into the fund where
they finance additional water quality improvement proj ects.
CWSRFs provide between $3-4 billion each year in
assistance. Nationwide, the CWSRF program has
provided over $43 billion in more than 14,000 loans since
1987.
States have great flexibility in managing their CWSRFs to
best meet water quality needs. Subj ect to Title VI of the
Clean Water Act, states determine their own project
eligibility requirements and set interest rates. 32 states have
funded NFS proj ects, often with innovative partnership
models. Over 600 NFS proj ects receive funding each year,
totaling nearly $2 billion.
Linking CWSRF to Performance Track
By targeting eligible Performance Track facilities for
CWSRF loans states would gain additional benefits from
their support for water quality improvements. The CWSRF
subsidy would help Performance Track members achieve
environmental commitments that may well be important to
local and state environmental priorities (e.g., air pollutant
transfers to waterbodies). This support would also
encourage facilities to increase community involvement,
perhaps linking facilities with watershed groups.
Working with Performance Track facilities also allows
states to support activities beyond regulatory requirements,
and thus could expand funding opportunities to help make
full use of available SRF funds. Supporting Performance
Track members can reduce the need for inspections by
establishing greater trust between states and facility
operators. This could help states focus inspections on
noncompliant facilities or support other environmental
projects.
Performance Tracked on EMS Success:
Eugene, Oregon's Wastewater Division
The Wastewater Division of Eugene, Oregon's second largest
city, implemented an EMS for its 49 million gallon-per-day
regional secondary wastewater treatment plant, biosolids
processing facility, vegetable cannery wastewater land
application site, and 49 local sewage pumping stations. The
EMS framework has knitted together existing efficiency and
training efforts by cultivating environmental decision making
throughout the organization. Employees now view the
Wastewater Division's mission of protecting public health and
the environment as part of their daily responsibilities.
With permit renewal approaching and a newly listed endangered
species in the receiving river, the EMS strengthened integration
of the regional wastewater program's functional components
to optimize environmental benefits. The focus moved beyond
compliance with specific targets for more efficient use of natural
resources and improved effluent quality. Anew documentation
system improved staff productivity and allowed tracking of 65
discrete activities that have significant environmental impacts.
Significant staff time and $50,000 in development costs were
needed to prioritize environmental impacts, create, and
implement the EMS. Savings on electricity and paper use and
waste disposal nearly recouped the costs within two years.
On track
over the
Willamette
River near
Eugene
Oregon.
In early 2004, EPA awarded Eugene's efforts by selecting the
Waterwater Division for the Performance TrackProgram. The
reduced regulatory, administrative, and reporting burden
conferred by the program's status will allow additional
improvements and assistance to other wastewater facilities. For
more information contact Wastewater Division Director Peter
Ruffier at (541) 682-8606 or peterj .ruffier@ci.eugene.or.us,
or visit www. ci.eugene.or.us/pw/ww/pdf/ems.pdf
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Performance Track facilities interested in reducing water
pollution and applying for CWSRF funds should:
• seek out their state CWSRF program and contact;
• learn how the state program works;
• learn about their state's water quality priorities;
• determine if they are eligible;
• request inclusion on the proj ect priority lists and
intended use plans; and
• submit applications for CWSRF funding.
For more information about Performance Track, please visit
EPAonthewebatwww.epa.gov/performancetrack
For more information about EMSs including POTWs that
have adopted EMSs, please visit www.epa.gov/ems or
www.peercenter.net, or contact Jim Home at 202-564-0571
or at horne.j ames@epa.gov.
§m U.S. Emir
National
Environmental
PerformanceTrack
U.S. Environmental Protection Agency
Clean Water
State Revolving Fund
For more information about the Clean Water Revolving Fund, or for a program representative in your State,
please contact:
U.S. Environmental Protection Agency
1201 Constitution Avenue, NW (Mailcode 4204M)
Washington, DC 20004
Phone: (202) 564-0752 Fax: (202) 501-2403
Internet: www.epa.gov/owm/cwfinance/index.htm
Office of Water
August 2004
EPA832-F-04-001
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