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Office of Water • April 2005 • EPA-832-R-05-001
PROVEN
I NTEGRITY
AN D
PERFORMANCE
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DEDICATION
Robert GiK (1946 - 2004)
We would like to dedicate this report
to the memory of Robert Gill, EPA
Region 2. Bob had many accom-
plishments working first with Ohio's
water program and then with EPA.
From the very beginning of the
CWSRF program, Bob's dedication to
public service and his personal
integrity helped ensure that the pro-
gram would achieve the highest level
of performance. He provided leader-
ship and highly valuable guidance
that is truly missed by all of his state
and EPA colleagues.
Clean Water
Slate? devolving Kund
CWSRF Programs -A Tradition of Integrity and Performance 2
CWSRF Programs - Getting the Job Done 4
The Annual CWSRF Funding Process - Structured for Effectiveness and Integrity ....6
2004 Focus - Measuring Environmental Results .
Innovative Financing for Water Quality Projects 11
Achievements in National Clean Water Financing 12
CWSRF 2004 Performance Highlights 14
CWSRF Program 2004 Financial Performance Overview 18
EPA's Business Plan to Support the CWSRF Program 23
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Congress created the Environmental
Protection Agency's Clean Water
State Revolving Fund (CWSRF)
program in 1987 to serve as a long-
term funding source for projects
that clean and protect the nation's
waters. Seventeen years of integrity
and performance have proven the
CWSRF's reputation as an efficient,
innovative federal-state program.
Operating in all 50 states and in
Puerto Rico, the CWSRF has made
nearly 15,300 loans for projects
through 2004, and now has over $50
billion in funds available for assis-
tance. Due to continuing federal
support and impressive state-level
management, annual funding has
increased at a compound rate of 15
percent per year. The CWSRF has
averaged $4.4 billion in annual assis-
tance since 2000. The program has
accomplished this feat without expe-
riencing any loan losses. Given
these strong financial conditions,
state CWSRF programs have
achieved high regard in the banking
industry. The next page summarizes
the CWSRF's funding levels for
investment in water quality.
The CWSRF program's integrity
stems from its unwavering commit-
ment to address the nation's most
pressing clean water needs and to
achieve strong financial perform-
ance. From an environmental per-
spective, the CWSRF program has
been a sound investment for states
and the federal government. EPA-
approved, state-level priority systems
direct funds to high priority projects.
When creating the priority list, each
state considers applicant communi-
ties' current regulatory compliance
status, imminent public health and
environmental threats, and the rela-
tive importance of the affected
waterbodies. CWSRF assistance has
helped thousands of communities
implement important projects by tar-
geting funding to where it is most
needed. Since 1996, over 60 percent
of all CWSRF loan agreements have
been made to communities of fewer
than 10,000 people.
This 2004 Annual Report provides an
overview of this year's CWSRF pro-
gram accomplishments and status
and forecasts its plans for continued
success. The report also highlights
the effort now underway to imple-
ment a new reporting system to bet-
ter communicate the environmental
results of CWSRF program assis-
tance. Twenty-eight states are now
testing this system.
Clean Water
State Revolving runt!
The CWSRF program's integrity stems from its unwavering
commitment to address the nation's most pressing clean
water needs and to achieve strong financial performance.
Clean Water State Revolving Fund
National Performance Summary Statement
Fund Activity - Estimated ($ Millions)
Annual Fund Activity
Federal Capitalization Grants
State Matching Funds
New Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Project 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
Source: EPA's CWSRF National Information Management System.
2004
1,092.8
241.7
5,227.4
4,605.9
4,308.8
1,415.3
21,896.4
4,614.6
52,052.4
47,905.4
40,705.5
19,825.5
2003
1,251.3
260.0
4,548.6
4,738.3
3,835.4
1,329.6
20,803.6
4,372.9
46,825.0
43,299.4
36,396.6
18,410.2
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o
Lasting success rises from a strong
foundation. The CWSRF program's
achievements build on the breadth of
experience and ingenuity in the 51
state CWSRF programs.
The Clean Water Act of 1987 gave
states significant flexibility to design
financing programs that best meet
their water quality infrastructure
needs. The CWSRF is primarily a
low-interest loan program, though
states can and do offer a wide range
of other assistance options. These
are outlined in Exhibit 1. Many
states also "leverage," using their
federal capitalization grants and
other fund assets as security for tax-
exempt bonds. Since the start of the
CWSRF program, 27 states have
raised $16 billion by issuing debt,
significantly expanding their ability
to make low-interest loans. State
programs have not only provided key
funding for wastewater treatment,
but have also funded important
water quality projects on farms,
stream cleanups at abandoned
mines, and land purchases to protect
drinking water sources.
STATES ORGANIZE TO
MEET THE CHALLENGE
Each state has effectively organized
its CWSRF program to address its
financial and environmental program
management objectives. In addition,
state associations including the
Council of Infrastructure Financing
Authorities and the Association of
State and Interstate Water Pollution
Control Administrators serve a vital
role through capacity building pro-
Exhibit 1:
CWSRF Assistance Options
STATE AGENCIES THAT MANAGE CWSRF PROGRAMS
1
Loans
Refinancing
Bond insurance
• Guarantees
• Leveraging
(Bond issuance)
• Sub-state funds
grams that train members and sup-
port their efforts to overcome state
program management challenges.
As the CWSRF expands, state pro-
grams complete more work each
year. Annually, states as a whole
process thousands of CWSRF finan-
cial transactions for active loans, pro-
vide assistance to hundreds of loan
applicants and loan recipients, devel-
op detailed annual program plans
and reports, work with state legisla-
tors and governors on program
design and operation, and coordi-
nate efforts with multiple state-level
financing programs. It is through
the hard work of dedicated employ-
ees that the CWSRF has reached its
current status as a notable environ-
mental finance program. The next
page arrays the many organizations
that dedicate resources to the mis-
sion of the CWSRF program.
EPA Region 1 - Boston, Massachusetts
Connecticut Department of Environmental Protection
Connecticut Office of the Treasurer
Maine Municipal Bond Bank
Maine Department of Environmental Protection
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 Infrastructure Investment Authority
Pennsylvania Department of Environmental Protection
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 Infrastructure Authority
Kentucky Division of Water
Mississippi Department of Environmental Quality
North Carolina Department of Environment and Natural Resources
South Carolina Department of Health and Environmental Control
South Carolina Budget and Control Board
Tennessee Department of Environment and Conservation
Tennessee Comptroller of the Treasury
EPA Region 5 - Chicago, Illinois
Illinois Environmental Protection Agency
Indiana Department of Environmental Management
Indiana State Budget Agency
Michigan Department of Environmental Quality
Michigan Municipal Bond Authority
Minnesota Public Facilities Authority
Minnesota Pollution Control Agency
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 Soil and Water Conservation Commission
Arkansas Development Finance Authority
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 Health and Environment
Kansas Department of Administration
Kansas Development 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 Water Resources and Power Development Authority
Colorado Department of Public Health and Environment
Colorado Department of Local Affairs
Montana Department of Environmental Quality
Montana Department of Natural Resources and Conservation
North Dakota Department of Health
North Dakota Municipal Bond Bank
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
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ECONOMIC BENEFITS
The CWSRF's investment in water
quality has substantial economic
impacts. Tourism requires rivers and
lakes to be clean and beaches to be
healthy. Our nation's waterways
sustain commercial and recreational
fisheries that attract over 25 percent
of the population. And irrigated
agriculture, public water utilities, and
industry depend on clean water.
But water use is growing to the point
where, according to a 2003 report by
the General Accounting Office, 36
states will experience freshwater
shortages by 2013 in non-drought
conditions. Maintaining and
improving water quality is an impor-
tant part of managing this valuable
resource and attracting economic
development. For example, micro-
bial contamination closes hundreds
of beaches and contributes to at least
a half-million cases of illness a year
from impure drinking water. As a
financial engine for wastewater treat-
ment—and dramatic increases in
infrastructure needs are projected for
the next 20 years—the CWSRF will
provide important economic benefits.
A recent independent study of the
economic impact—specifically the
impact on jobs—of water infrastruc-
Clean Water: An Annual Economic Snapshot
5 billion instances of water-based recreation
1 billion coastal visits generate over $50 billion
$12.5 million in sheUfish landings (2003)
ture funding validated CWSRF pro-
gram benefits. The authors, tasked
by EPA's water policy staff in the
Office of Water to answer a
Congressional request, used three
models to gauge short-term adjust-
ments and longer-term employment
and GDP trends. The economists
concluded that a sustained one bil-
lion dollar increase in debt-financed
water infrastructure, such as CWSRF
funding, would permanently add
approximately 5,000 jobs over the
next ten years. An initial increase
would range from 16,000 to 22,000
jobs depending on economic condi-
tions. Forecasts show that the
majority of employment gains occur
in local infrastructure projects and in
water infrastructure equipment man-
ufacturing. Overall, the study's esti-
mates of economic benefits are con-
servative because the authors stop
short of projecting the employment,
production, and productivity impacts
of valuable water quality and public
health gains.
State CWSRF program financing
innovations have opened the doors
to thousands of projects with
important water quality benefits.
States have taken hold of the
CWSRF's flexibility to maximize the
environmental impact of its funding.
They continue to finance wastewater
utility upgrades and rehabilitation;
at over 90 percent of loan volume,
municipal utility borrowers are well
served. CWSRF program managers
have also reached out to smaller
borrowers to curtail water pollution
from farms, septic systems, and
urban sources. Nonpoint source
loans totaled $176 million in 2004.
While this only accounts for 4 per-
cent of total funding, it represents
26 percent of assistance agreements.
CWSRF programs have a track
record of designing new financing
approaches for nonpoint source
projects. To rehabilitate or replace
leaking septic tanks, states often set
up linked-deposit programs with
local banks. The banks then make
affordable loans to residents, limit-
ing costs and risks to the CWSRF.
Agricultural loan programs regularly
involve partnerships with conserva-
tion districts to identify effective
projects. Reducing sediment, nutri-
ent, and pesticide runoff to water-
bodies usually means increasing
resource efficiency on the farm.
Some states also reward utilities that
invest in nonpoint source projects in
conjunction with infrastructure proj-
ects by further reducing the interest
rate on the CWSRF loan.
States also use CWSRF financing to
purchase land to protect in-stream
habitats and drinking water aquifers.
They fund wetland mitigation
banks, acid mine drainage cleanup,
stream bank restoration projects,
and an array of storm water manage-
ment practices and treatment tech-
niques. This final category, a mix of
combined and sanitary sewer over-
flows and nonpoint source impacts
that large and small communities
are struggling to contain, shows
how the CWSRF responds to the
nation's clean water agenda. The
following two pages show examples
of the range of CWSRF projects and
financing approaches.
12 billion gallons of we
58 billion of soft drinks (2001)
"The CWSRF has put more conservation on the ground
than any grant program." Rich Baden, Executive
Director, Spokane County Conservation District (WA)
03
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Achievements in National Clean Water Financing
PORTLAND, OREGON
MONTANA
$12.4 million in CWSRF loans extend-
ed sewer lines to replace septic tanks,
converted a treatment plant from chlo-
rine gas to sodium hypochlorite to
address security concerns, and funded
50 watershed revegetation projects. An
innovative program of reduced interest
rates encouraged the utility to support
habitat restoration.
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To reduce nutrient-laden agricultural
runoff, the CWSRF program has
made 175 loans to farmers and
ranchers, most for center-pivot
irrigation equipment, which cuts
water use by half. With $15 million
loaned since 2000, demand is
increasing thanks to partnerships
with local conservation districts.
IOWA
BISBEE, ARIZONA
To tackle severe inflow and infiltration
problems and to restore compliance at
the wastewater treatment plant, the
city, state, USDA Rural Development,
and North American Development
Bank agreed to finance $30 million in
improvements, over one third from the
CWSRF program.
The CWSRF established a
special program to make
loans for residential septic
tank repair and replace-
ment. Working through
approximately 150 local
banks, the effort has made
195 loans for over a million
dollars in just two years.
STILLWATER, OKLAHOMA
A sewage treatment plant upgrade and
expansion protected stream habitat and
drinking water intakes. At $14.2 million,
all from the CWSRF, the project was
under budget and won the American
Public Works Association (Oklahoma
Chapter) Environmental Project of the
Year award in 2003.
WILLARD, NEW MEXICO
A $63,000 CWSRF loan leveraged over
$400,000 in federal and state funds to
install decentralized treatment clusters
and new septic tanks. To stem nitrate
leaching to the sole drinking water
source, the village of 240 people estab-
lished a wastewater management utili-
ty to maintain these systems.
FALL RIVER, MA
KENT, DHIO
).5 million in CWSRF funding has
helped build a 3-mile long, 20-foot
diameter tunnel to control combined
sewer overflows. Once operational, the
tunnel will improve water quality in
Mount Hope Bay.
Dam modifications have gone a long
way toward restoring fish habitat and
migration routes in the Cuyahoga
River. $3.9 million in incentives from
an innovative CWSRF program
allowed several local wastewater utili-
ties to "sponsor" the work in conjunc-
tion with infrastructure projects.
MONMOUTH COUNTY, NEW JERSEY
A comprehensive upgrade to a wastewater
plant serving 80,000 people and treating
nearly 12 million gallons per day received
a $52 million CWSRF loan. New pumps,
screens, aeration basins, pumping stations,
sludge thickeners, biofilters, and more
were operational in 2003.
DWENSBORO, KENTUCKY
GREENE COUNTY, PENNSYLVANIA
$26 million in CWSRF funds
installed new technology at a sput-
tering treatment plant and extended
the collection system to eliminate
18 smaller facilities and many fail-
ing septic tanks. Regionalization
minimized combined sewer over-
flows to protect the Ohio River.
Billions of gallons of highly acidic, toxic mine water
threatened a major tributary of the Monongahela River. A
$4.3 million CWSRF loan financed treatment and proper
effluent discharge to protect drinking water supplies and
recreational uses and preserved 100 local jobs.
CLAYTON COUNTY, GEORGIA
Constructed wetlands are the final
step at the sewage treatment facility,
cleaning the effluent so it can be
reused. A $9 million CWSRF loan
supported this efficient use of natural
biological processes.
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CWSRF Loans Save Communities 20% (2004 Average)
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The Clean Water Act requires the
51 state-level CWSRF programs to
undergo an annual financial audit.
Each state and Puerto Rico, or EPA's
Office of Inspector General, conducts
these audits according to the gener-
ally accepted auditing standards
established by the Governmental
Accounting Standards Board
(GASB). GASB offers guidelines to
the governmental accounting profes-
sion to determine the best fund
structures for state programs such as
the CWSRFs. States often define
their CWSRF programs as ongoing
enterprise funds under the GASB
definitions of funds. The standard-
ized financial statements used in
enterprise fund reporting for CWSRF
programs include the following:
Statement of Net Assets
This statement describes a fund's
assets and liabilities as of the end of
the fund's fiscal year. Assets include
both 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. Several years ago,
a new GASB rule created the state-
ment of net assets as a replacement
for the balance sheet statement. The
"net asset" section of the statement of
net assets replaced the "equity" section
of the balance sheet.
Statement of Revenues,
Expenses, and Earnings
This statement describes the per-
formance of the CWSRF fund over
the reporting period. The statement
of revenues, expenses, and earnings,
reports on the overall performance
of the fund during 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.
Because the 51 constituent CWSRF
programs are independent state-
level entities, no nationally audited
CWSRF program financial reports
are available. However, using EPA's
CWSRF National Information
Management System, national
aggregate financial statements have
been developed and are included
below. The statements are best
viewed as non-audited, cash flow-
based financial reports.
2004 Financial Statement Highlights
Statement of Net Assets
• Total assets increased by $4.3 billion.
• CWSRF program equity (also called net assets) totals $26.5 billion.
• Program liabilities increased by $2.2 billion, reflecting the net growth in CWSRF bonds
outstanding for state matching funds and leveraged program financing.
Statement of Revenues, Expenses, and Earnings
• Total program revenues exceeded expenses by $2.0 billion, an 11 percent increase from 200c
• Interest earnings from loans and investments totaled more than $1.2 billion.
Administrc
Statement of Cash Flows
?RF programs were greater than $2.0 billion.
Leveraged bond proceeds added $3.0 billion to
asn now.
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Clean Water State Revolving Fund
National Performance Summary Statement
Statement of Net Assets - Estimated ($ Millions)
2004
2003
Assets
Cash and Cash Equivalents
Debt Service Reserve - Leveraged Bonds
Loans Outstanding
Unamortized Bond Issuance Expenses
Total Assets
Total Assets
Liabilities
Match Bonds Outstanding
Leveraged Bonds Outstanding
9,485.4
5,868.1
29,334.3
282.3
44,970.1
44,970.1
642.4
17,863.9
8,274.4
5,049.7
27,069.8
262.0
40,628.9
40,628.9
636.2
15,667.6
Total Liabilities
Net Assets
Federal Contributions
State Contributions
Transfers of Non-Federal Funds from (to) DWSRF
Other Net Assets
Total Net Assets
Total Liabilities and Net Assets
18,506.3
19,825.5
3,545.6
(286.6)
3,379.3
26,463.8
44,970.1
16,303.8
18,410.2
3,362.4
(294.9)
2,847.4
24,325.1
40,628.9
Note: Under the new GASB 34 rules, "equity" is termed "net assets," and is defined as the difference between assets and liabilities.
Statement presents a compilation of reporting from 51 state programs and is not audited.
Source: EPA's CWSRF National Information Management System.
Clean Water State Revolving Fund
National Performance Summary Statement
Statement of Revenues, Expenses, and Earnings - Estimated ($ Millions)
Operating Revenues
Interest on Investments
Interest on Loans
2004
423.8
830.8
Total Operating Revenues
Operating Expenses
Bond Interest Expenses
Amortized Bond Issuance Expenses
Administrative Expenses
1,254.6
798.5
12.4
43.8
Total Expenses
854.7
Note: Statement presents a compilation of reporting from 51 state programs and is not audited.
Source: EPA's CWSRF National Information Management System.
2003
428.3
785.5
1,213.8
786.0
10.4
46.6
843.0
Nonoperating Revenues and Expenses
Federal Contribution
State Contributions
Transfers from (to) DWSRF
Total Nonoperating Revenues (Expenses)
Total Operating and Nonoperating Revenues
Increase (Decrease) in Net Assets
Net Assets
Beginning of Year
End ofYear
1,415.3
183.2
8.3
1,606.8
2,006.7
2,006.7
24,862.6
26,869.3
1,329.6
194.2
(86.8)
1,437.0
1,807.8
1,807.8
23,054.8
24,862.6
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Clean Water State Revolving Fund
National Performance Summary Statement
Statement of Cash Flows - Estimated ($ Millions)
Cash Flows from Capital and Related Financing Activities
Beginning Balance - Cash and Cash Equivalents
Ending Balance - Cash and Cash Equivalents
2004
0.0
8,247.4
9,485.4
Note: Statement presents a compilation of reporting from 51 state programs and is not audited.
Source: EPA's CWSRF National Information Management System.
2003
Cash Flows from Operating Activities
Cash Draws from Federal Capitalization Grants
Contributions from States
Loan Disbursements Made to Borrowers
Loan Principal Repayments
Administrative Expenses
Interest Received on Loans
Net Cash Provided by Operating Activities
1,415.3
183.2
(4,308.8)
2,044.3
(43.8)
830.8
121.0
1,329.6
194.2
(3,835.4)
1,666.9
(46.6)
785.5
94.3
Cash Flows from Noncapital Financing Activities
Net Leveraged Bond Proceeds
State Match Bond Proceeds
Cash Received from Transfers with DWSRF
Interest Paid on Leveraged and State Match Bonds
CWSRF Funds Used for Refunding
Principal Repayments of Leveraged Bonds
Principal Repayments of State Match Bonds
Net Cash Provided by Noncapital Financing Activities
3,061.1
58.5
8.3
(798.5)
(31.4)
(734.2)
(52.3)
1,511.6
2,039.4
65.8
(86.8)
(786.0)
(248.7)
(554.8)
(58.5)
370.4
0.0
Cash Flows from 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
423.8
(818.4)
(394.6)
1,238.0
428.3
(97.8)
330.5
795.2
7,452.2
8,247.4
To help sustain the success of the
CWSRF program, EPA has adopted
a comprehensive business plan that
integrates and enhances key com-
ponents of the proven federal-state
partnership.
TRANSPARENCY
IN OVERSIGHT
Strong relationships between state
program administrators and EPA
managers have safeguarded the
CWSRF programs and allowed for
innovation. Program oversight has
been efficient and effective. As pro-
grams become more complex and
staff turnover increases, however, it
becomes difficult to devote time and
attention to all management areas.
To improve accountability and trans-
parency, EPA issued guidance for the
annual program review process in
2004. An accompanying checklist
ensures consistency nationwide and
encourages better preparation for the
annual review process. Starting in
2005, a series of standard internal
EPA operating procedures will set
baseline procedures for key program
management tasks, complementing
the annual review guidance and
training regimen. The first will
address cash transactions from the
federal treasury.
TRAINING
Regional training workshops are an
essential part of the CWSRF pro-
gram. These sessions educate new
and veteran employees, clarify leg-
islative and policy changes, dissemi-
nate information on innovative
funding practices and solutions to
common problems, and provide a
forum for discussion of new initia-
tives. A mature CWSRF now
demands a more sophisticated train-
ing approach. EPA is planning a
rotating series of introductory, pro-
grammatic, and financial training
sessions that will include all program
administrators every other year. The
annual Council of Infrastructure
Financing Authorities training work-
shop will remain an important part
of the program. To reach even more
managers and to allow the content
of these workshops to address the
most current issues, the Agency is
also developing training videos.
Basic and more advanced sessions
will become available over the
Internet in the next year or two.
RECOGNITION
The high level of professionalism
among program managers has
resulted in many innovations that
have made the CWSRF a model gov-
ernment subsidy program. For
example, they can take credit for the
CWSRF's invaluable national data
system. To acknowledge their
important work and its results, EPA
will initiate awards and accredita-
tion-like programs over the next few
years. The awards program will first
focus on borrowers, showcasing
projects nationwide. It will expand
to recognize key achievements of
state programs and perhaps individ-
uals. An accreditation-like program
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CWSRF-at-a-Glance
for EPA regional program managers
will recognize the expertise involved
in managing CWSRF programs.
REDEFINING
PERFORMANCE
Beyond strengthening its foundation,
the CWSRF program aims to provide
leadership for the future of water
infrastructure finance. A focus on
financial performance has made the
CWSRF programs engines for water
quality improvement. Until now,
there has been no comprehensive
effort to document these results. The
state-EPA initiative to assess envi-
ronmental impacts, discussed earlier,
comes at a time when wastewater
infrastructure needs are mounting
and more detailed study of water-
bodies is making increasingly effi-
cient pollution control possible. This
environmental benefits effort, inte-
grated priority systems, and recent
state innovations position the
CWSRFs to make better decisions
about how to finance clean water
projects in the future. With increased
pressure to justify funding, an envi-
ronmental accounting system will
become a key aspect of a state pro-
gram's communications strategy.
In 2008, the CWSRF program's
twentieth anniversary, EPA will host
a water infrastructure finance confer-
ence to explore these and other criti-
cal issues. The conference will bring
together the financial, technical,
planning, and management stake-
holders who work with the CWSRF
program and other water quality
financing programs. Participants will
focus on how to improve the per-
formance of financing for sustainable
water quality.
Through these current and upcom-
ing projects and key partnerships
with other Office of Water programs,
federal agencies, and, most impor-
tantly, the state programs, EPA's
CWSRF program will continue to
finance America's investment in
clean water.
Funds Available for Projects (Billions of Dollars)
2004 1988-2004
Total Funds
Federal Capitalization Grants
State Match
Net Leveraged Bonds
Net Loan Principal Repayments
Net Earnings
Net Transfers with DWSRF
(Less Administration)
$5.2
1.09
0.24
2.24
1.31
0.37
(.01)
(.04)
$52.1
21.9
4.6
16.0
6.9
3.8
(.3)
(-9)
Return of 2.05 Times the Federal Investment
92% of Funds Committed to Projects
2.3% Average CWSRF Interest Rate in 2004,4.8% Market Rate
20% Average Savings over Market Rate Loans
27 States Leverage; 20 Issue Match Bonds
36 States Fund Nonpoint Source Projects
27 States Use Integrated Priority Systems
43 States Conduct Separate Audits
40 States Fund Separate Grant or Loan Programs
Assistance Provided to Projects (Billions)
2004 1988-2004
Total, by Project Type $4.6 $47.9
Wastewater Treatment 4.37 45.2
Nonpoint Source 0.18 1.8
Estuaries 0 0
Unallocated 0.06 0.8
Total, by Population Served
< 3,500
3,500 - 9,999
10,000 - 99,999
100,000 and Above
# of Loans, by Population Served 1,290 15,286
< 3,500 622 7,157
3,500 - 9,999 184 2,417
10,000 - 99,999 298 4,005
100,000 and Above 186 1,707
Source: EPA's CWSRF National Information Management System
$4.6
0.45
0.51
1.12
2.52
$47.9
5.0
6.0
16.3
20.6
For more information about the Clean Water State Revolving Fund, please contact:
Clean Water State Revolving Fund Branch
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/cwsrf
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