Yesterday, Today & Tomorrow
20 YEARS OF PROGRESS
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'Celebrating its 20th anniversary, the Clean Water State Revolving Fund
Program continues to be an essential source of affordable funding for
projects that help improve and maintain the quality of our nation's waters.
The Clean Water State Revolving Funds in 50 States and Puerto Rico
demonstrate the power of partnerships to leverage, innovate, and excel
in meeting sustainable water infrastructure, watershed protection, and
community health needs."
Benjamin H. Grumbles
Assistant Administrator, Office ofWater
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Contents
8
20
22
24
29
32
Yesterday—-The History and Background of
the CWSRF Programs
Today—-The CWSRF Programs After Twenty Years
State Agencies that Manage CWSRF Programs
Trie 2007 PISCES Awards: Recognizing
State Leadership
Tomorrow—-The Next Five Years: Taking the
CWSRF Programs to New Heights
2007 Financial Performance Overview
CWSRF At-A-Glance
Yesterday, Today & Tomorrow
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Timeline of CWSRF History and Accomplishments
1972
Federal Water Pollution Control Act
imposes stricter standards on wastewater
treatment, and appropriates grant funds for
the construction of wastewater infrastructure.
1977
The Clean Water Act passes Congress,
further strengthening the grant program
to help comply with new rules governing
pollution discharges into surface waters.
1984
Completion of the paper, "Study of
the Future Federal Role in Municipal
Wastewater Treatment," recommending
the creation of State Revolving Funds.
1987
Amendments to the Clean Water Act
pass Congress, creating the Clean Water
State Revolving Fund and phasing out
the Construction Grants program.
EPA has provided over $50 billion in grants for
wastewater infrastructure since the early 1970s.
1988
March 30,1988: The first CWSRF capitalization
grants are awarded to Tennessee and Texas.
By the end of the reporting year (June 30,1988),
states have awarded 28 CWSRF loans for
$37.7 million.
1989
Iowa and New Jersey are the first
states to leverage, yielding a total
of $79.2 million.
EPA's Environmental Financial
Advisory Board is created, devoting
a significant amount of attention to
the CWSRF.
1990
CWSRF programs are established
in all SO states and Puerto Rico.
Annual assistance provided surpasses
$1 billion: 243 projects totaling $1.1 billion.
Maryland and Washington fund the
first nonpoint source projects for a total
of $321,510.
1991
Rapid growth continues: 405 projects
are funded totaling $2.5 billion.
Cumulative assistance provided
exceeds 50% of cumulative available
funds (53%).
Cumulative leveraged bonds issued
by the CWSRF exceed $1 billion
($1.1 billion).
1992
Cumulative state match contributions
surpass $1 billion ($1.2 billion).
Cumulative assistance agreements top 1,000.
1993
Cumulative assistance provided reaches
75% of cumulative available funds.
1994
Cumulative assistance provided exceeds
$10 billion, reaching $11.4 billion.
Linked-deposit loan program is
developed by Ohio.
For the first time, annual leveraged
bonds issued reach $1 billion.
1995
The CWSRF funds over 100 nonpoint
source projects in one year—129
projects totaling $160.6 million.
1996
The Drinking Water State Revolving
Fund, modeled after the success
of the CWSRF, is created by the
Safe Drinking Water Act.
NIMS (National Information Management
System) for CWSRF is created, providing
a central source for programmatic
and financial data.
2 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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1997 I 10 Years of the CWSRF
The average CWSRF interest rate is 2.9%
compared to the market rate of 5.7%, saving
communities an average of 21% on their loans.
Since the beginning of the CWSRF,
5,641 projects have been funded with
$19.8 billion; of this, $5.8 billion
originated due to leveraging.
1998
Cumulative assistance provided tops
$20 billion dollars, reaching $22.9 billion.
New York and New Jersey are the first
states to take advantage of cross-investment
and cross-collateralization of the CWSRF
and DWSRF programs, allowing them
to use the stronger bond ratings of the
more mature CWSRFs to leverage their
DWSRFs at more favorable rates.
1999
Over 500 nonpoint source projects receive
CWSRF loans in one year—529 projects
for $143.2 million.
2000
Annual assistance provided surpasses
$4 billion for the first time: 1,373 projects
for $4.2 billion.
2001
Increased demand for funding and efficient
fund use allow cumulative assistance provided
to reach 90% of cumulative available funds.
Cumulative assistance agreements top 10,000.
Cumulative leveraged bonds issued
exceed $10 billion ($10.1 billion).
2002
69% of annual assistance agreements serve
communities of fewer than 10,000 people,
continuing a trend of reaching more
small communities.
2003
Cumulative federal capitalization grants
exceed $20 billion, demonstrating strong
federal support.
2004
Cumulative assistance agreements top 15,000.
2005
Growth continues: cumulative assistance
provided exceeds $50 billion, reaching
$52.6 billion.
EPA and the Association of State and
Interstate Water Pollution Control
Administrators (ASIWPCA) develop
an Environmental Benefits Reporting System
to document the environmental and public
health benefits of CWSRF financed projects.
The Performance and Innovation in the SRF
Creating Environmental Success (PISCES)
awards program recognizing the most
creative and effective states and borrowers in
protecting and restoring water quality begins.
2006
Annual assistance provided reaches $5 billion
for the first time, funding 1,859 projects.
Over 1,000 nonpoint source projects
are funded for the first time in one year—
1,183 projects for $370.3 million.
2007 | 20 Years of the CWSRF
March 21-23: Paying for Sustainable
Water Infrastructure conference is held
in Atlanta, GA.
Cumulative assistance provided surpasses
$60 billion, reaching $63 billion.
EPA drafts "The Clean Water State
Revolving Fund: Tapping its Untapped
Potential" to reaffirm the wide range of
projects eligible for CWSRF assistance.
97% of cumulative available funds are
committed to projects, the highest rate ever.
Cumulative leveraged bonds issued reach
$20 billion ($20.6 billion).
Yesterday, Today & Tomorrow 20 Years Of Progress I 3
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The History and Background of the CWSRF Programs
In 1987, Congress established the Clean Water State
Revolving Fund (CWSRF), a groundbreaking infrastructure
financing program designed to help protect and restore water
quality in our nation's rivers, lakes, and estuaries. While the
federal government, through EPA, already had a strong
tradition of supporting water quality infrastructure through
the Construction Grants program, the Clean Water Act
Amendments of 1987 (the Act) ushered in a new era of clean
water financing. The Act created the Clean Water State
Revolving Fund, an innovative, self-sustaining funding source
for wastewater infrastructure, nonpoint source, and estuary projects.
4 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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Implemented through a collaborative effort between
EPA and states, the CWSRF program consists of
independent revolving loan funds in each of the
50 states and Puerto Rico. The program empowers
states to fund projects according to state water quality
priorities and helps communities by providing
low-cost financing for critically important projects.
The 51 funds are capitalized by federal and state
contributions, reflecting the cooperative nature
of the CWSRF. For every dollar contributed by
the federal government, states contribute 20 cents.
Since the first federal capitalization grants in 1988,
the total federal appropriation to the 51 CWSRF
programs has reached over $25 billion, with
corresponding state contributions of $5.3 billion.
The 51 CWSRF programs operate essentially as
environmental infrastructure banks. The programs
provide low-interest loans to a wide variety of
eligible water quality projects, and loan repayments
are recycled back into individual CWSRF programs.
Principal repayments plus interest earnings become
available to fund new water quality projects,
allowing the funds to "revolve" over time. States
can also increase their CWSRF financing capacity
by issuing CWSRF-backed revenue or general
obligation bonds. To date, 27 states have leveraged
their programs in this way, raising an additional
$20.6 billion for important water quality projects.
Figure 1 shows how the CWSRF program works.
Under the provisions of the statute, CWSRF loan
interest rates can range from zero percent to the
prevailing market rate. This gives states the flexibility
to set specific loan terms based on their own water
quality funding priorities, and to offer affordable loan
terms to all types of communities. Historically, states
have provided very attractive terms for CWSRF loans.
Interest rates on loans have averaged approximately
two percentage points below prevailing municipal
market rates, with some states even providing
interest-free loans for economically disadvantaged
communities. As a result of the interest rate subsidy,
communities taking CWSRF loans in 2007 will
save more than 18 percent over the life of a typical
20-year loan compared to conventional financing.
In addition to loans, the Act provides a variety
of assistance options including purchasing or
refinancing local debt, providing guarantees or
purchasing insurance for local debt, and providing
guarantees for loans made by substate revolving
funds. As water quality problems and solutions have
evolved, CWSRF programs have used the significant
flexibility offered by the Act to create a wide variety
of financial structures. These options have allowed
the programs to achieve higher levels of funding
while continuing to provide a valuable subsidy to
borrowers. More importantly, this broad flexibility
has assisted borrowers who in many cases would not
be able to access and afford other financing options.
;The CWSRF is an example of a successful
federal/state cooperation on a significant
program providing for projects from the
smallest to the largest."
Robert Lenna
Executive Director, Maine Municipal Bond Bank
Yesterday, Today & Tomorrow
15
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Figure 1 | How the CWSRF Program Works
6 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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States also have significant latitude in the types
of projects that CWSRF programs can fund.
The Act allows states to not only fund traditional
wastewater treatment infrastructure, but also
opens up financing to nonpoint source and estuary
projects that protect or improve water quality. The
programs have financed water quality projects on
farms, the purchase of land to protect drinking
water sources, and the remediation of brownfield
sites to address their impact on local water quality.
The innovative structure and significant flexibility
provided to the CWSRF programs have resulted
in impressive financial and environmental
accomplishments. The combination of federal
capitalization, state match contributions, leveraging,
reflows from loan repayments, and interest earnings on
loans and investments has allowed the funds to grow
beyond what was imagined in 1987. States have been
able to turn $25 billion in federal capitalization and
$5.3 billion in state matching funds into $65 billion
in total funds available. The revolving nature of the
program will ensure that CWSRF monies are available
to fund water quality projects for generations to come.
Today, as the CWSRF programs celebrate 20 years
of financing America's water quality, their mandate
remains as important as it was two decades ago.
The following sections of this Annual Report
highlight current and future initiatives that have
the overall goal of expanding the programs'vital
contributions to the environment and public health.
Yesterday, Today & Tomorrow
17
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The CWSRF Programs After Twenty Years
The spirit of innovation that was present with the
introduction of the CWSRF in 1987 remains a driving
force in the operation and management of the program.
A dynamic exchange of new ideas at the state and federal
levels has helped the CWSRF programs grow and succeed
year after year. At the same time, 20 years of experience
have produced well-managed state programs that integrate
planning, measurement, and outreach to achieve important
water quality benefits.
8 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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2007 CWSRF Program Highlights
Since the inaugural CWSRF project was funded
in 1988, the 51 CWSRF programs together have
provided $63 billion in assistance for water quality
projects through 20,711 loans. In 2007, the programs
reached a new high for single-year financing, providing
nearly $5.3 billion in assistance to communities
of all sizes as well as farmers, homeowners, small
businesses, and nonprofit organizations.
While wastewater treatment projects have
comprised 96 percent of all CWSRF funding
to date, over $2.6 billion has gone to nonpoint
source and estuary projects (as shown in Figure 2).
This considerable amount of funding for nonpoint
source projects illustrates an awareness that water
quality problems can be caused by a variety of activities
and will often have a range of project solutions.
The low cost and flexibility of CWSRF financing has
helped the programs serve communities of all sizes.
In 2007, two-thirds of all loans went to communities
with populations below 3,500. In addition, over
$1.1 billion in assistance went to communities with
fewer than 10,000 people (as shown in Figure 3).
Figure 2 | CWSRFs Fund $63 Billion
in Clean Water Projects through 2007
'and Estuary
4%
Stormwater/
Recycled Water
1%
POTW: Publicly Owned Treatment Works; SSO: Sanitary
Sewer Overflow; CSO: Combined Sewer Overflow
Note: Lower chart represents various POTW categories
Dollar Amount of
Assistance
($5.3 Billion)
mber of Assistance
Agreements (2,055)
Population
Less than 3,500
3,500 to 9,999
10,000 to 99,999
100,000 and above
Yesterday, Today & Tomorrow 20 Years Of Progress I 9
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Figure 4 | CWSRF Cumulative Assistance Reaches $63 Billion in 2007
Figure 5 | CWSRFs Return 2.31 Times the Federal Investment as of 2007
Federal Outlays are the amount of cash drawn from the U.S. Treasury into the CWSRF.
CWSRF Disbursements are the actual cash paid out from the CWSRF to assistance recipients.
Sound financial management, continued federal
support, and the unique revolving structure of
CWSRF programs have enabled them to address the
increasing demand for water infrastructure financing.
As a result, they have provided nearly $63 billion in
financial assistance over the past 20 years (as shown in
Figure 4). The programs are projected to continue to
grow over time, as interest earnings and repayments
of loans increase. Nationally, the CWSRF program
provides a remarkable return on federal investment:
over the last 20 years, the program has financed $2.31
in projects for every dollar the federal government
has invested (as shown in Figure 5). This success
has led the program to serve as a model for other
revolving loan funds around the U. S. and the world.
The high demand for CWSRF funds nationwide
can be attributed to high needs, low interest
rates, flexible financing options, and the efforts
of state and federal CWSRF staff. The rate of
fund utilization has increased steadily since 1988,
signaling increasing demand for funds as well as
10 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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efficient state operations. As of 2007, 97 percent of
all available funds were committed to projects, an
impressive increase from the 53 percent committed
in 1990. To meet high levels of demand, 27 states
have chosen to implement leveraging approaches by
issuing revenue and general obligation bonds that
are secured by CWSRF assets. Through leveraging,
states have increased their capacity to finance
important water quality projects by $20.6 billion.
Maximizing Results with
Environmental Benefits
The recently implemented CWSRF Benefits
Reporting System has produced a quantifiable
record of the positive environmental and public
health impact of CWSRF investments. Figures 6, 7,
and 8 present data reported in the Benefits Reporting
System to date. The Benefits Reporting System was
launched in 2005 and was quickly adopted by all
Figure 6 | CWSRF Projects Support Surface Waterbody Designated Uses
i
1,200
800
400
Protect
Restore
Aquatic Life
and Wildlife
Recreation
Fish and Shellfish
Consumption
Drinking Water
Agricultural
Water Supply
Other
Note: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting System to date, accounting
for approximately 25% of total cumulative CWSRF financing. Individual projects may support multiple designated uses.
Figure 1 \ Impaired Waterbody Protection and Restoration: Population Served
Drinking Water
Other
Secondary Contact Recreation
Fish and Shellfish Consumption
Primary Contact Recreation
Aquatic Life and Wildlife
10
20 30 40
Millions of People
50
•4ote: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting System to date, accounting
for approximately 25% of total cumulative CWSRF financing. Double-counting may occur due to populations served by projects
with multiple designated use protection objectives.
Yesterday, Today & Tomorrow 20 Years Of Progress I 11
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CWSRF programs as a useful tool for capturing
the environmental results associated with CWSRF
projects. This system, developed through a collaborative
effort between EPA and the states, allows users to
record the anticipated water quality improvements
from every CWSRF loan used toprotect and restore
waterbodies. All 51 programs have used the Benefits
Reporting System to track the environmental impact
of 4,878 projects. The data link $15.8 billion in
CWSRF loans to projects that protect and restore
drinking water sources, recreational areas, and aquatic
wildlife throughout the country. In 2007 alone,
CWSRF programs funded more than 964 projects
designed to protect and restore waterbodies, including
597 projects that benefit human health. The data
show that in assisting borrowers through billions of
dollars in interest savings, the CWSRF programs are
directly benefiting millions of Americans who rely
on clean water for health, recreation, and irrigation.
Discovering New Uses for Benefits Information
Use of the Benefits Reporting System is becoming
more sophisticated as states and EPA consider new
ways to harness the data for state-level CWSRF
management activities, such as planning, reporting,
and marketing. For instance, benefits information
can be used to target CWSRF funding to projects
that will have the greatest positive impact on water
quality, and to demonstrate program achievements
to state decision makers. EPA is encouraging more
states to integrate this information into their program
management activities and is currently developing
new ways that the Benefits Reporting System can
be used as a strategic tool by CWSRF programs.
Coordination with EPA "WATERS" Data
EPA is tapping existing data sources to enhance
the Benefits Reporting System's contributions and
capabilities. In 2007, the EPA Office of Water began
uploading benefits data into Watershed Assessment,
Tracking & Environmental ResultS (WATERS),
an EPA platform for storing national information
on nutrient criteria, water quality standards, and
impaired waters. Using the WATERS platform,
CWSRF managers will have access to additional
queries, data, tables, and reports that will help
them analyze and showcase Benefits Reporting
information in new ways. EPA is also exploring ways
that the Benefits Reporting System can be used in
conjunction with state and local environmental data
systems to help states identify facilities, communities,
and waterbodies that need CWSRF assistance.
Mapping CWSRF Benefits
EPA is evaluating ways that EnviroMapper, a
Geographic Information System (GIS) based
WATERS application, can be used to create
customized maps showing where CWSRF
environmental benefits have occurred. In 2007,
EPA began working with several states to learn
how their current GIS capabilities can be used to
map data on CWSRF projects. Over the next few
:'As immediate needs began to be fulfilled,
many CWSRFs and communities jumped at
the chance to design unique nonpoint source
and land protection programs."
Victoria Kennedy
Environmental finance Consultant
12 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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Figure 8 | Linking CWSRF Financing to the Protection and Restoration of our Nation's Waters
$15.8 Billion in
CWSRF Loans
4,878 Projects
financed
$5.2 Billion of
Cost Savings...
...to 1,828 Communities
94.9 Million
People Served
"For the first time, U.S. EPA
and State Water Programs
are documenting the significant
cost savings and environmental
contributions of the CWSRF.
Such accountability is vital
at the national and state levels."
Linda Eichmiller
Executive Director, ASIWPCA
19.4 Billion gallons
per day treated
Funding for Clean Water Act Goals
$11.3 Billion to improve water quality
$8.1 Billion to achieve compliance
f 10.6 Billion to protect and restore aquatic
life and wildlife
$2.5 Billion to protect and restore
drinking water sources
$11.7 Billion to protect and restore
recreational uses
Note: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting
System to date, accounting for approximately 25% of total cumulative CWSRF financing.
Yesterday, Today & Tomorrow 20 Years Of Progress I 13
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years, EPA plans to continue exploring how GIS
technology can be a dynamic tool for demonstrating
CWSRF contributions to waterbody health.
Reaching Priority Projects through
Innovations in Financing
Every state has specific goals for its CWSRF program.
In addition to funding critical infrastructure, goals
may include helping small communities protect
groundwater sources, providing disadvantaged
communities with affordable project financing,
and helping rural landowners preserve scenic
waters. Program managers have the flexibility to
design customized solutions for funding a wide
spectrum of water quality projects. Over time,
many programs have developed innovative funding
arrangements to make CWSRF assistance more
accessible and versatile. For example, several states
use conduit lending arrangements to provide small,
low-interest loans to help private landowners
replace leaking septic systems, or to help farmers
implement agricultural best management practices.
Other states offer sponsorship programs to fund
nonpoint source projects or refinancing assistance to
make local debt more affordable for communities.
EPA is highlighting these innovative activities at
conferences, meetings, and events across the country,
and is encouraging more states to make full use of
the program's innovative financing capabilities.
States and EPA are taking an enterprising approach
to the types of projects funded by CWSRF programs.
While there remains a great need to finance vital
infrastructure projects, CWSRF program managers
increasingly recognize that nonpoint source projects
can play a cost-effective role in addressing water
quality problems, particularly when implemented
as part of a watershed-based plan. As a result,
CWSRF funding to address nonpoint sources of
pollution, such as stormwater, agricultural runoff
and brownfields, has increased 142 percent over the
past 10 years. Furthermore, EPA and the states are
focusing more attention on green infrastructure,
energy efficiency, and emissions reduction projects
in a multi-pronged approach to confront the
many sources of water pollution. The recent draft
white paper entitled "The Clean Water State
Revolving Fund: Tapping its Untapped Potential"
is intended to increase the awareness of the
CWSRF community regarding these eligibilities.
Expanding Program
Marketing and Outreach
All 51 CWSRF programs conduct outreach to
inform existing and potential assistance recipients of
the significant environmental and economic benefits
resulting from CWSRF financial assistance. In recent
years, EPA has consulted experienced communications
professionals and developed new tools to help states
undertake more robust communications efforts.
14 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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From March 21 to 23,2007, EPA
and 14 co-sponsors held an
unprecedented conference to discuss
creative methods to pay for sustainable
water infrastructure. The objective
of the conference was to promote
integration of approaches to increase
investment in cost-effective systems
with strategies for reducing capital,
operation, and maintenance costs.
Over 600 participants attended
from 45 states, the District of
Columbia, Puerto Rico, and six
countries. Representatives hailed
from the public sector, the financial
and engineering industries, and
non-governmental organizations.
This diverse group of individuals
exchanged their expertise in innovative
practices across the U.S. and abroad.
In 2007, several states used EPA assistance to develop
marketing strategies to attract valued borrowers,
increase fund utilization, enhance customer
satisfaction, and promote new types of projects.
Assisting Programs with Marketing
Planning and Practices
The CWSRF has always thrived on close
communication between communities and state
CWSRF managers. In 2007, EPA helped CWSRF
programs organize two focus groups and four
surveys to better understand borrowers'perceptions
and evaluate ways to move forward as partners
in environmental stewardship. Armed with this
information, states have developed comprehensive
marketing plans for directing the most relevant and
important information to CWSRF borrowers and
stakeholders. Many states use these techniques to
communicate attractive features of their programs,
such as telling large cities about the CWSRF
program's below-market rates, or disadvantaged
communities about the program's flexible loan
terms, or small communities about the program's
planning and design assistance. As the programs
consider non-traditional projects and creative
financing mechanisms, enhanced marketing will
remain an important way to share CWSRF benefits
with a wide variety of prospective borrowers.
Yesterday, Today & Tomorrow 20 Years Of Progress I 15
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FACT-Based Marketing
Several states have incorporated the Financing
Alternatives Comparison Tool (FACT) into their
marketing and outreach activities since its release
in early 2007. FACT is an electronic calculator,
created by EPA, which quickly and easily compares
the costs associated with various financing options
for water infrastructure projects. This tool can
be a valuable addition to any outreach effort,
particularly for small communities. In late 2007,
EPA began developing a simplified version of the
tool, "FACT Lite," which will make it even easier
for states and communities to demonstrate the
financial advantages of the CWSRF program.
Continuing to Grow and Improve
Many promising new CWSRF program initiatives
are springing up across the country as a result of
the communication networks that EPA and states
maintain for the program. In 2007, EPA provided
several opportunities for program professionals
to sharpen their knowledge of the program, learn
about the latest program developments, discuss
challenges, and be inspired by noteworthy activities
in other states. One notable event was the Paying
for Sustainable Water Infrastructure conference, held
in Atlanta, Georgia in March 2007 (see text box
on page 15). In addition, during the past year, EPA
offered a variety of knowledge-building resources
such as regional workshops and the CWSRF
Financial Accreditation Program to ensure that
the CWSRF community is continually learning,
exchanging ideas, and improving performance.
Sponsoring Workshops for Regional and State
Officials on the Latest Program Developments
EPA sponsors CWSRF regional workshops to help
new staff build knowledge of the program and to
update veteran staff on the latest CWSRF news
from Washington, DC and around the country. The
workshops are held on a rotating basis to serve several
of the 10 EPA regions each year. These workshops
give program staff an opportunity to share successful
practices in their own states and to discuss the current
16 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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challenges and changes occurring in the program.
EPA frequently invites guest speakers, such as bond
counsel, auditors, and federal and state environmental
program professionals to share their relevant expertise
on the program, bringing a new perspective to common
program practices. In 2007, EPA sponsored six
successful workshops, bringing together approximately
250 state and regional CWSRF staff for informative
training sessions and constructive discussions.
Improving Communications in the CWSRF
Community—The Discussion Forum
The CWSRF Discussion Forum came online in
2006, and has continued to draw new participants
throughout the past year. The Discussion Forum allows
CWSRF staff to share their thoughts and questions
on topics such as marketing, financial innovations,
environmental benefits, the latest CWSRF news and
more. The Discussion Forum also provides a central
location for EPA to share important resources, such
as policy memorandums and workshop materials,
with the entire CWSRF community. Figure 9
shows how the Discussion Forum helps participants
tap into the vast institutional knowledge of fellow
CWSRF staff around the country. Readers are
encouraged to log on to http://cwsrf.invisionzone.
com to register and participate in the conversation.
Creating a Powerful Educational Tool
for Program Financial Analysts
In 2007, EPA released the CWSRF Financial
Accreditation Program, a self-paced curriculum
designed to enhance staff proficiency on the financial
aspects of the CWSRF. The program consists of a
comprehensive exam with topics ranging from basic
CWSRF financial management to more advanced
financial subjects. The Accreditation Program is an
essential undertaking for individuals seeking to increase
their knowledge of CWSRF financial management.
Interested individuals should visit the CWSRF
Discussion Forum to get more information and
download a copy of the materials needed to participate
in the CWSRF Financial Accreditation Program
Promoting Strategic Planning
and Management
After 20 years of operating highly successful,
financially vigorous, environmentally beneficial
programs, there is a growing realization within
the CWSRF community that a strategic perspective
is vital to successful fund management. This is
particularly important with the decline in annual
federal funding in both real and nominal dollars,
coupled with persistent inflationary pressures and
growing infrastructure needs. Responding to this
"The federal capitalization [of the
CWSRF] is an investment that will
be used over and over for the
benefit of the environment."
Trish Comp
Loan Programs Manager, South Carolina
State Budget and Control Board
Yesterday, Today & Tomorrow 20 Years Of Progress I 17
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Figure 9 | Clean Water State Revolving Fund Discussion Forum
(http://cwsrf.invisionzone.com)
eoe
.irk-Deposit - CWSRF Discussion Forum
T http://cwsrf.invisionzone.com/
0.
Clean Water
mJ
CWSHF Discussion Forum
Help Search Members Calendar
O Jun 20 2006, 04:44 PM
Options •
Post £1| |
Group: Members
Posts: 1
Js.i-CC: 20-Jur* 06
Memucr NO-: 42
Affiliation: GEFA
Warn: (p» QDODaOH
CWSRFers,
Georgia is looking to initiate a link-deposit program for funding private septic tank repairs within the state.
Are there any states out there that have a link deposit program, and if so, could you contact me
to discuss.
iowasrf
Nnttta
Group: Members
Fosts: ^
Joined: 12-June 06
Memuer No. : Z2
Affii atic-n: :o»s SRf
DJgn272006, 10:26 AM
Po«»3lg
Iowa uses linked deposits for on-site septic system replacement, agricultural sediment and nutrient
control practices, manure management projects, and other non-point source programs. Program
information is at www.iowasrf.com. The Iowa Finance Authority has a web-based application for lenders,
which you can view at www.lfaprograms.com. Please feel free to call me for more information.
warn:
) DDDnaOB
18 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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challenge, program managers are developing new
ways to provide project assistance by targeting
CWSRF funding and communications based
on strategic planning and forecasting.
As CWSRF programs have matured, many states
are conducting strategic analyses of their operations.
In the last year, EPA has worked with several states
to perform an intensive evaluation of program
procedures to develop customized strategies for
the states'programs. Several programs are developing
new practices for evaluating immediate and long-term
water infrastructure conditions, targeting assistance to
priority projects and high-need borrowers, and using
integrated planning processes to tie it all together.
States are also pursuing new ways of using the
CWSRF Benefits Reporting System for strategic
management of CWSRF programs. States are already
using the Benefits Reporting System to demonstrate
how each loan contributes to compliance with local
water quality standards, addresses high priority needs,
and provides critical cost savings to communities as
they implement needed projects. Over time, the use
of the data from the Benefits Reporting System will
grow as states devise new ways to communicate about
how CWSRF assistance is expended. For example,
states may look at the Benefits Reporting data to
explore the effectiveness of the CWSRF's priority
setting and project selection process. States may also
use the Benefits Reporting System to generate maps
and performance reports that can aid water quality
planners as they assess and revise state-wide program
objectives. Today, EPA is working with states to
explore how the CWSRF Benefits Reporting System
data can provide information for better and more
strategic management of the CWSRF program.
In the 20 years since their authorization, the
CWSRF programs have helped thousands of
communities achieve cleaner and healthier water.
These 2007 program highlights show how the
states are continually seeking new ways to extend
the benefits of the programs. Ongoing efforts
such as benefits reporting, strategic planning,
marketing, and expanded communications
and educational opportunities will help the
CWSRFs to continue generating high water
quality dividends in the upcoming years.
Yesterday, Today & Tomorrow 20 Years Of Progress I 19
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State Agencies that Manage CWSRF Programs
EPA Region 1—Boston, Massachusetts
Connecticut Department of Environmental Protection
Connecticut Office of the Treasurer
Maine Department of Environmental Protection
Maine Municipal Bond Bank
Massachusetts Water Pollution Abatement Trust
Massachusetts Department of Environmental Protection
New Hampshire Department of Environmental Services
Rhode Island Clean Water Finance Agency
Rhode Island Department of Environmental Management
Vermont Department of Environmental Conservation
Vermont Municipal Bond Bank
EPA Region 2—New York, New York
New Jersey Department of Environmental Protection
New Jersey Environmental Infrastructure Trust
New York State Environmental Facilities Corporation
New York Department of Environmental Conservation
Puerto Rico Environmental Quality Board
Puerto Rico Infrastructure Financing Authority
EPA Region 3—Philadelphia, Pennsylvania
Delaware Department of Natural Resources
and Environmental Control
Maryland Department of the Environment
Pennsylvania Department of Environmental Protection
Pennsylvania Infrastructure Investment Authority
Virginia Department of Environmental Quality
Virginia Resources Authority
West Virginia Department of Environmental Protection
West Virginia Water Development Authority
EPA Region 4—Atlanta, Georgia
Alabama Department of Environmental Management
Florida Department of Environmental Protection
Georgia Environmental Facilities Authority
Kentucky Division of Water
Kentucky Infrastructure Authority
Mississippi Department of Environmental Quality
North Carolina Department of Environment
and Natural Resources
South Carolina Budget and Control Board
South Carolina Department of Health and Environmental Control
Tennessee Comptroller of the Treasury
Tennessee Department of Environment and Conservation
EPA Region 5—Chicago, Illinois
Illinois Environmental Protection Agency
Indiana Department of Environmental Management
Indiana Finance Authority
Indiana State Budget Agency
Michigan Department of Environmental Quality
Michigan Municipal Bond Authority
Minnesota Pollution Control Agency
Minnesota Public Facilities Authority
Minnesota Department of Agriculture
Ohio Environmental Protection Agency
Ohio Water Development Authority
Wisconsin Department of Natural Resources
Wisconsin Department of Administration
EPA Region 6—Dallas, Texas
Arkansas Development Finance Authority
Arkansas Soil and Water Conservation Commission
Louisiana Department of Environmental Quality
New Mexico Environment Department
Oklahoma Water Resources Board
Texas Water Development Board
EPA Region 7—Kansas City, Missouri
Iowa Department of Natural Resources
Iowa Finance Authority
Kansas Department of Administration
Kansas Department of Health and Environment
Kansas Development Finance Authority
Kansas Rural Water Finance Authority
Missouri Department of Natural Resources
Missouri Environmental Improvement
and Energy Resources Authority
Nebraska Department of Environmental Quality
Nebraska Investment Finance Authority
EPA Region 8—Denver, Colorado
Colorado Department of Local Affairs
Colorado Department of Public Health and Environment
Colorado Water Resources and Power Development Authority
Montana Department of Environmental Quality
Montana Department of Natural Resources and Conservation
North Dakota Department of Health
North Dakota Public Finance Authority
South Dakota Department of Environment and Natural Resources
Utah Department of Environmental Quality
Wyoming Department of Environmental Quality
Wyoming Office of State Lands and Investments
EPA Region 9—San Francisco, California
Arizona Water Infrastructure Finance Authority
California State Water Resources Control Board
Hawaii Department of Health
Nevada Department of Conservation and Natural Resources
EPA Region 10—Seattle, Washington
Alaska Department of Environmental Conservation
Idaho Department of Environmental Quality
Oregon Department of Environmental Quality
Washington Department of Ecology
20 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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The 2007 PISCES Awards: Recognizing State Leadership
The 2007 PISCES Awards (Performance and Innovation in
the SRF Creating Environmental Success) recognized states
that have been the most innovative and effective at advancing
EPA's goals of high performance and water quality protection
through the Clean Water State Revolving Fund program.
In 2007, a CWSRF PISCES Award was presented to one
state from each of the 10 U.S. EPA regions. These 10 states
serve as excellent examples of outstanding performance, financial
integrity, and creativity in the CWSRF program. Winners
were recognized at the national SRF workshop hosted by the
Council of Infrastructure Financing Authorities (CIFA) in
Denver, Colorado in November 2007.
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2007 CWSRF PISCES Award Winners
Region 10: Washington
The Washington Water Quality
Financial Assistance Advisory
Council meets quarterly and
advises the state on its water
quality financial assistance
policies and practices. As a result,
Washington's SRF program
is well-known and has strong
demand to fund Publicly Owned
Treatment Works, nonpoint
source, and estuary projects.
Region 9: Nevada
In order to determine the best
use of SRF funds, the Nevada
Department of Conservation and
Natural Resources joined forces
with Infrastructure for Nevada
Communities, thereby improving
the cost effectiveness of its
loans while reducing workload
expenditures and increasing
local participation.
Region 8: Colorado
By leveraging CWSRF funds, the Colorado Water
Resources and Power Development Authority
and the Colorado Department of Public Health
and Environment have provided additional
financial assistance totaling over $440 million,
directly contributing to hundreds of systems
achieving and/or maintaining compliance.
22 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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Region 5: Minnesota
Since its inception in 1995,
the Minnesota Department of
Agriculture's Best Management
Practices Loan Program has become
one of the leading environmental
loan programs in the country,
allowing for the efficient management
of 10 million tons of manure,
21,000 tons of phosphorus, and
2.1 million acres farmed using
conservation tillage equipment.
Region 7: Missouri
Missouri's Department
of Natural Resources has
partnered with the Missouri
Agricultural and Small Business
Development Authority to lend
CWSRF funds to farmers to
purchase animal waste collection
equipment and to construct
animal waste storage and
distribution facilities, reducing
runoff into Missouri waterways.
Region 1: Rhode Island
As a result of its Community Septic
System Loan Program, the Rhode Island
Clean Water Finance Agency has helped
repair or replace 400 failing or substandard
septic systems to date, significantly
improving water quality in many of
Rhode Island's small communities.
Region 2: New Jersey
The New Jersey CWSRF Program,
a partnership between the New Jersey
Environmental Infrastructure Trust
and the New Jersey Department of
Environmental Protection, has provided
over $240 million in low-interest loans
to private entities to remediate and
develop more than 800 acres of land
that, prior to treatment, let thousands
of gallons of leachate seep into
surrounding waters daily.
Region 3: Virginia
The Virginia Department of
Environmental Quality created a
new approach to funding nonpoint
source projects by initiating innovative
partnerships with Farm Credit
Associations throughout the state,
thereby providing CWSRF financing for
a substantial number of agricultural Best
Management Practices and reducing
agricultural runoff into Virginia waters.
Region 6: Texas
The Texas Water Development Board is
remarkable for its support of water efficiency
through water reuse and conservation,
including a wastewater reclamation initiative
to deliver reclaimed water from the City of
Austin's Walnut Creek Wastewater Treatment
Plant to two city-owned properties.
Region 4: Florida
Noteworthy among the Florida Department of
Environmental Protection's water conservation
and efficiency projects is its assistance for the
installation of horizontal well technology
in Port Orange to withdraw and filter
approximately 114 millions of gallons per year
of surface water and groundwater for reuse.
Yesterday, Today & Tomorrow 20 Years Of Progress I 23
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The Next Five Years: Taking the CWSRF Programs
to New Heights
An important question facing the CWSRF programs is how
to best support and accelerate innovation. Environmental
challenges have evolved significantly since the programs were
first established. As a nation, we are concerned about how to
pay for clean water, water efficiency and conservation, and
green and sustainable infrastructure. Their broad mandate
and inherent flexibility position the CWSRF programs to
play an important role in addressing these environmental
and public health issues.
24 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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To help meet these challenges, EPA recently took a
fresh look at the types of projects eligible for CWSRF
assistance and considered innovative ways CWSRF
programs can fund these projects. The following
examples of non-traditional eligibilities and flexible
financial options are drawn from the draft white
paper entitled, "The Clean Water State Revolving
Fund Program: Tapping its Untapped Potential."
Exploring Non-Traditional Eligibilities
Nationally, 96 percent of all CWSRF assistance to date
has gone to traditional wastewater treatment projects.
States are increasingly seeking seeking funding
options for new and creative water quality projects
that go beyond traditional wastewater treatment. To
assist in this process, the white paper identified two
dozen project types that would provide measurable
benefits to water quality. Several examples follow:
• Municipalstormwater projects beyond traditional pipe,
storage, and treatment systems. Green infrastructure
projects such as green roofs, infiltration basins, and
wetland restoration can be financed by CWSRF
programs. Rockville, Maryland used a $1.4 million
CWSRF loan for planning, design, and restoration
of the main stem of Watts Branch. The project
included enhancing the existing wetlands, stabilizing
the eroding stream bank, and restoring a stream
buffer. In Cohasset, Massachusetts, a CWSRF loan
helped fund the creation of over 40 rain gardens
to reduce the contaminants in stormwater runoff.
' Capital costs to power a publicly-owned treatment
facility. This includes clean energy projects, such
as wind and solar energy infrastructure. For
example, Atlantic County, New Jersey received a
$2.1 million CWSRF loan to install solar panels
at its wastewater treatment facility, resulting in
energy cost savings projected at $115,000 per year.
' Upgrade or replace failing septic systems. CWSRF
programs can also fund privately-owned treatment
works that collect and treat effluent or septage from
properties with malfunctioning septic systems. In
1998, Westmoreland County, Pennsylvania saw
the need to centrally treat and dispose of septage
pumped from local residents. Because this project
would help reduce and prevent nonpoint source
pollution, the CWSRF program was able to provide
a loan to a private company that pumps septic
systems and treats and disposes of the septage.
• Water conservation. CWSRF programs can fund
public projects that reduce water use, such as the
installation of water meters, gray water recycling
in public buildings, and the development of public
education programs on water conservation. Cheyenne,
Wyoming received over $40 million in CWSRF
money to upgrade its water reclamation facilities.
to lending, $860 million in Clean
Water SRF loans have helped eliminate
human health
for Oklahoma's future generations,"
Yesterday, Today & Tomorrow
I 25
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•
"The CWSRF is the most beneficial
program for us rate-wise. We will
certainly continue to use it because
it benefits the ratepayers."
Maria Mento
Executive Vice President and Chief financial Officer,
Atlantic County Utilities Authority, New Jersey
The reclaimed water is used to irrigate the city's green
spaces, saving millions of gallons of fresh water.
• Contaminated sites. The capital costs of cleanup
projects that affect water quality in brownfields
and Superfund sites can be financed by CWSRF
programs. In addition, program funds can be used
to pay premiums for environmental insurance for
the portions of the project related to water quality.
• Source water protection. CWSRF programs are able to
finance projects that protect drinking water sources
and supplies, including rivers, streams, lakes, and
groundwater. For example, the planting of trees
and shrubs is eligible, as is the purchase of land for
reservoirs. Several states, including New York, have
purchased tracts of land through their CWSRF
programs to help protect drinking water sources.
Employing and Leveraging Types of
Assistance and Funding Mechanisms
Several types of assistance maybe offered by CWSRF
programs, including low-interest loans, loan guarantees,
insurance, refinancing and more. To date, most of the
assistance provided—89 percent—has been in the
form of traditional loans. However, as environmental
challenges change and demand for funds continues
to increase, EPA and states will continue to look
for financial innovations that are possible under
the statute. These innovations will help states and
borrowers achieve even greater benefits from the
CWSRF, directing the program's subsidies to a wider
range of projects, while maintaining the high level
of financial assistance for traditional wastewater
infrastructure. The following paragraphs outline just
a few of the financial innovations highlighted in the
draft document, "The Clean Water State Revolving
Fund Program: Tapping its Untapped Potential."
• Extended term financing. CWSRF legislation
authorizes the program to purchase local debt.
This provision allows states to offer CWSRF
financing beyond the 20-year terms allowed for
traditional CWSRF loans. This extended term
financing enables states to offer financing that
26 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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stretches to the useful life of the project, which
may be 30 or even 40 years. As a result, states
can reduce the annual cost of principal and
interest of the financing by offering longer term
assistance, particularly benefiting disadvantaged
communities. Extended term financing is also
available for non-disadvantaged communities,
with concurrence from EPA's Headquarters
Office. Eleven states have integrated this option
into their CWSRF programs, with several
states expected to follow in the near future.
• Watershed-based approach. As awareness of the causes
and impacts of water quality challenges grows, there
is increasing recognition of the need to consider
watersheds as a whole, rather than specific sources
of pollution. As a result, a growing number of
CWSRF programs are taking a big picture approach
to their funding decisions by considering watershed
factors in addition to traditional treatment options.
In many situations, source water protection efforts
can help reduce treatment costs downstream.
Because watersheds usually extend beyond
municipal—and even state—boundaries, funding
projects on a watershed basis can result in new
financing opportunities. For example, intermunicipal
watershed funds can receive CWSRF financial
assistance and provide loans to the municipalities
within that watershed for CWSRF-eligible projects.
Similarly, interstate lending is an option for water
quality problems that extend beyond state lines.
' Guarantees and insurance. States can take advantage
of provisions that allow CWSRF programs to
purchase insurance or provide guarantees for local
debt, especially where demand outpaces the supply
of CWSRF funds. Insurance and guarantees provide
additional security for local debt, significantly
lowering the interest rate charged to the community.
At the same time, this mechanism requires a
minimal outlay of CWSRF money, allowing the
state to stretch its CWSRF dollars even further.
EPA is committed to encouraging states to
look beyond traditional projects and financing
tools, and explore other innovative ways that the
programs can address water quality priorities.
Expanding and Improving
Ongoing Initiatives
There are several initiatives underway to help
EPA and the states achieve the overall goal of
maximizing the beneficial impact of the CWSRF
program on the environment and public health.
EPA's efforts to support program progress are
outlined in the CWSRF's 2008-2012 Strategic Plan.
The Plan aims to maintain the financial integrity
of the program while ensuring environmental
results. The following list highlights the main
activities included in the CWSRF Strategic Plan:
• Strategic Planning. EPA will continue to assist
states in improving their CWSRF programs to
meet strategic objectives. As the programs grow
in size and sophistication, the states are taking a
more strategic approach to program management.
To support their efforts, EPA is encouraging the
use of project pipeline management, a practice
by which managers modify financial structuring
and program objectives to meet strategic targets.
The Agency is developing practices to help the
states manage their project pipelines on an
immediate, medium-term, and long-term basis.
Yesterday, Today & Tomorrow
I 27
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In addition, preliminary planning has begun for
a national conference on the CWSRF program,
tentatively scheduled for July 2009 in Chicago,
IL. The major themes will focus on issues and
opportunities for strategic management of the
program in support of national environmental
and public health priorities. The conference will
complement the annual SRF training workshops.
1 Best Practices. EPA will promote adoption of best
practices through training and communication.
Training for state and regional EPA staff will remain
an integral part of EPA's activities. The Agency will
continue its current practice of holding two- to
three-day training workshop in five EPA regions
each year. These workshops will be open to all state
and EPA SRF staff and will be tailored to the
experience levels and needs of the participants.
The Agency also intends to release several training
videos by 2009 to help expand program knowledge
during the rest of the year. The recently released
Accreditation Program for financial analysts will
be expanded with an intermediate test. Finally,
there are plans to issue Standard Operating
Procedures on a wide range of program processes.
In addition to training, EPA will continue to
improve communications within and outside the
CWSRF community, notably through expansion
of the online Discussion Forum; fact sheets,
publications and videos; conferences, training
sessions, and workshops; and the Benefits Reporting
System. EPA will also help states employ valuable
marketing tools, such as activity guides and
templates, the PISCES award program, and the
Financing Alternatives Comparison Tool (FACT).
' Program Evaluation. EPA will continue to conduct
annual financial and programmatic evaluations of
each of the 51 CWSRF programs. Working with
the states, the Agency will continue to look for
opportunities to update and enhance the Benefits
Reporting System to ensure that it effectively tells
the story of CWSRF success. Additionally, EPA
will maintain its current practice of evaluating the
performance of five EPA regional offices each year.
The CWSRF Strategic Plan anticipates expanding
ongoing efforts to assess and improve program
accessibility for high priority water quality projects.
Focus groups and surveys of communities in several
more states will form the basis of state specific
strategies and may lead to new national tools.
' Enhancing Performance. EPA will pursue
continuous improvement in program operations
and effectiveness by improving integration of the
CWSRF program with water quality programs
and priorities, expanding on the tools and best
practices, and addressing emerging concerns
to ensure results, efficiency, and integrity.
28 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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2007 Financial Performance Overview
The Clean Water Act requires an annual financial audit
of the 51 state-level CWSRF programs. Each state
and Puerto Rico conducts these audits according to
the generally accepted auditing standards established
by the Governmental Accounting Standards Board
(GASB). States often define their CWSRF programs as
ongoing enterprise funds under the GASB definitions
of funds. The standardized financial statements used
for CWSRF programs include the following:
Statement of Fund Activity
This statement provides an overview of
major indicators of fund activity, including
the capitalization grant levels, project
commitments, and project disbursements.
Both annual and cumulative data are given.
Statement of Revenues, Expenses, and Earnings
This statement describes the overall performance
of the CWSRF fund over the reporting period.
Statement of Cash Flows
This statement provides a detailed accounting of the
actual flow of cash into and out of the CWSRF fund.
Statement of Net Assets
This statement describes a fund's assets and
liabilities through the end of the fiscal year.
Assets include financial assets and capital assets;
liabilities include both current and long-term
liabilities. CWSRF fund assets include grant funds
that have been drawn from the federal treasury
to date, but do not include total grant awards.
Because the 51 constituent CWSRF programs
are independent state-level entities, no nationally
audited CWSRF program financial reports are
available. However, using EPA's National Information
Management System, national aggregate financial
statements have been developed and are included on
the following pages. The statements are best viewed
as non-audited, cash flow-based financial reports.
Financial Statement Highlights
• Total assets increased by $2.8 billion,
a 5.4 percent increase from 2006.
• CWSRF program equity (net assets) totals
$32.1 billion, a 6.8 percent increase from 2006.
• Total program revenues exceeded expenses by
$2.0 billion, with interest earnings from loans
and investments totaling almost $1.7 billion.
• Loan principal repayments to the CWSRF
were $2.4 billion.
• Leveraged bond proceeds added more
than $1.9 billion to program cash flow.
Yesterday, Today & Tomorrow 20 Years Of Progress I 29
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Figure 10 | CWSRF National Performance Summary (Millions of Dollars)
Fund Activity
Annual Fund Activity
Federal Capitalization Grants
State Matching Funds
New Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Projects Disbursements
Cash Draws from Federal Capitalization Grants
Cumulative Fund Activity
Federal Capitalization Grants
State Matching Funds
Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Project Disbursements
Cash Draws from Federal Capitalization Grants
Revenue, Expenses, and Earnings
Operating Revenues
Interest on Investments
Interest on Loans
Total Operating Revenues
Operating Expenses
Bond Interest Expense
CWSRF Funds Used for Refunding
Amortized Bond Issuance Expense
Administrative Expenses
Total Expenses
Nonoperating Revenues and Expenses
Federal Contributions
State Contributions
Transfers from (to) DWSRF
Total Nonoperating Revenues (Expenses)
Increase (Decrease) in Net Assets
Net Assets
Beginning of Year
End of Year
2007
786.5
159.4
4,191.0
5,286.5
5,107.7
1,421.2
24,976.6
5,306.9
65,097.6
62,948.9
54,632.0
23,615.4
2007
769.0
914.2
1,683.2
990.8
117.1
16.2
44.5
1,168.6
1,421.2
118.8
(12.7)
1,527.3
2,041.9
30,012.9
32,054.8
2006
928.5
233.7
4,539.4
5,021.1
4,368.0
1,064.1
24,190.1
5,147.6
60,906.6
57,662.4
49,524.4
22,194.3
2006
672.2
864.0
1,536.2
934.8
54.1
13.9
41.3
1,044.1
1,064.1
166.9
(20.0)
1,211.0
1,703.2
28,309.8
30,012.9
Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly equal the total due to rounding error.
2006 data were revised from the 2006 Annual Report to incorporate updated state information. Source: EPA's CWSRF National Information Management System (June 30,2007).
30 | Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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Cash Flows
Operating Activities
Cash Draws from Federal Capitalization Grants
Contributions from States
Loan Disbursements Made to Borrowers
Loan Principal Repayments
Interest Received on Loans
Administrative Expenses
Total Cash Flows from Operating Activities
Noncapital Financing Activities
Gross Leveraged Bond Proceeds
Bond Issuance Expense
State Match Bond Proceeds
Cash Received from Transfers with DWSRF
Interest Paid on Leveraged and State Match Bonds
CWSRF Funds Used for Refunding
Principal Repayment of Leveraged Bonds
Principal Repayment of State Match Bonds
Net Cash Provided by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities
Investing Activities
Interest Received on Investments
Deposits to Debt Service Reserve for Leveraged Bonds
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Beginning Balance — Cash and Cash Equivalents
Ending Balance — Cash and Cash Equivalents
Net Assets
Assets
Cash and Cash Equivalents
Debt Service Reserve — Leveraged Bonds
Loans Outstanding
Unamortized Bond Issuance Expenses*
TotalAssets
Liabilities
Match Bonds Outstanding
Leveraged Bonds Outstanding
Total Liabilities
Net Assets
Federal Contributions
State Contributions
Transfers — Other SRF Funds
Other Net Assets
Total Net Assets
Total Liabilities and Net Assets
2007
1,421.2
118.8
(5,107.7)
2,364.1
914.2
(44.5)
(333.8)
1,931.7
(18.3)
40.6
(12.7)
(990.8)
(117.1)
(1,180.4)
(81.9)
(429.0)
0.0
769.0
(348.4)
420.5
(342.3)
9,422.6
9,080.3
2007
9,080.3
7,095.4
37,046.0
288.5
53,510.2
582.7
20,872.7
21,455.3
23,615.4
4,029.1
(387.5)
4,797.8
32,054.8
53,510.2
2006
1,064.1
166.9
(4,368.0)
1,992.7
864.0
(41.3)
(321.6)
2,233.6
(22.5)
66.8
(20.0)
(934.8)
(54.1)
(812.5)
(111.0)
345.4
0.0
672.2
(555.7)
116.5
140.4
9,282.2
9,422.6
2006
9,422.6
6,747.0
34,302.4
286.4
50,758.3
624.0
20,121.4
20,745.4
22,194.3
3,910.3
(374.8)
4,283.2
30,012.9
50,758.3
Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly equal the total due to rounding error.
2006 data were revised from the 2006 Annual Report to incorporate updated state information. Source: EPA's CWSRF National Information Management System (June 30,2007).
*Unamortized bond issuance expenses are bond issuance costs that have been incurred but have not been fully recognized (amortized).
These costs will be recognized (amortized) over time over the remaining life of bonds outstanding, similar to a pre-paid expense, and consistent with GAAP.
Yesterday, Today & Tomorrow 20 Years Of Progress I 31
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CWSRF At-A-Glance
r Figure 1 1 | Funds Available for Projects
(Billions of Dollars)
2007 1988-2007
Total Funds $4.2 $65.1
Federal Cap Grants 0.79 25.0
State Match 0.16 5.3
Net Leveraged Bonds 1.60 20.6
Net Loan Principal Repaid 1.18 10.4
Net Interest Earnings 0.50 5.2
Net Transfers with DWSRF (0.01) (0.4)
Less Administration (0.03) (1.0)
Number of Loans in 2007=2,050; Total=20,700
Interest Rate in 2007=2.1% (Market=4.3%)
As of 2007
Return on Federal Investment=2.31 Times
SRF Assistance as % of Funds Available=97%
27 States Leverage; 21 Issue Match Bonds
40 States Fund Nonpoint Source Projects
30 States Use Integrated Priority Setting Systems
48 States Conduct Separate Audits
40 States Fund Separate Grant/Loan Programs
r?igure 12 | Assistance Provided to Projects
(Billions of Dollars)
Total, Project Type
Waste water Treatment
Nonpoint Source
Not Classified
Total, Population Served
<3,500
3,500 - 9,999
10,000 - 99,999
100,000 and Above
Wastewater Treatment
Secondary Treatment
Advanced Treatment
SSO Correction
New Sewers
CSO Correction
Storm Sewers
Recycled Water
2007
$5.3
5.12
0.24
0
$5.3
0.66
0.49
1.81
2.33
$5.12
1.97
0.89
0.89
0.66
0.6
0.03
0.08
1988-2007
$62.9
59.7
2.6
0.6
$62.9
6.6
7.6
21.1
27.7
$59.7
24.5
10.9
6.8
11.1
5.9
0.4
0.2
JM •- - Mj - -.'• •;-
• •'•...'•:• , i •• /::-7
32 I Clean Water State Revolving Fund Programs 2007 ANNUAL REPORT
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For more information about the Clean Water State Revolving Fund, please contact:
Clean Water State Revolving Fund Branch
U. S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW (Mail Code 4204M)
Washington, DC 20460
Phone 202/564-0752
Fax 202/501-2403
www.epa.gov/owm/cwrlnance/cwsrf
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Office ofWater | June 2008 | EPA-832-R-08-001
Clean Water
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