RECOGNIZING
PERFORMANCE,
DEMONSTR AT i N G
RESULTS
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Dear Colleagues,
The Clean Water State Revolving Fund (CWSRF) was created in 1987 by Congress with the intent of providing
states with a continuous source of funding to address water quality projects. Since its inception, this unique col-
laboration between EPA and the states has grown to become the largest federal funding program for water infra-
structure projects across the country. This 2005 Annual Report on the Clean Water State Revolving Fund provides
an overview of the activities, accomplishments, and future plans for this highly successful program.
Over the past 18 years, state CWSRF programs have loaned $52.7 billion for projects to maintain and improve
publicly owned treatment works, mitigate non-point source pollution, and promote estuary management. The
CWSRF continues to serve as a cost-effective water infrastructure financing mechanism. The low interest rates
offered by state CWSRF programs make more projects possible, and the revolving nature of the fund provides
high return on federal investment. These attributes ensure that the CWSRF will remain a key source of financing
water infrastructure into the future.
I am particularly pleased that the 2005 Report brings to light progress made in linking CWSRF financing to envi-
ronmental benefits. In 2005, all 51 CWSRF programs agreed to use a suite of environmental indicators to show
how their CWSRF projects impact water quality and public health. States and EPA can now link assistance to
Clean Water Act goals: swimming areas protected and fisheries restored.
Much of the success of the CWSRF program can be attributed to the high level of professionalism among pro-
gram managers. Recognizing that innovations lead to greater performance, EPA created the PISCES Awards
(Performance and Innovation in the SRF Creating Environmental Success) in 2005. The PISCES Awards allow
EPA to acknowledge and promote program innovations that advance EPA goals of performance and water quality
protection.
I am pleased to share with you the 2005 activities and successes of the Clean Water State Revolving Fund.
Sincerely,
Benjamin H. Grumbles
Assistant Administrator
Office of Water
Clean Water
State Revolving Fuml
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CWSRF Programs: Recognizing Performance and Demonstrating Results 2
Funding for Water Quality: Reporting Environmental Results 4
Highlights from EPA's CWSRF Business Plan
CWSRF PISCES Awards: Performance and Innovation in the SRF 11
CWSRF 2005 Performance Highlights 14
2005 Financial Performance Overview 18
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Clean Water State Revolving Fund National Performance Summary Statement j^^^J
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.
2005
1,355.6
203.9
3,807.5
4,856.5
4,165.7
1,310.2
23,251.5
4,806.0
55,266.2
52,703.7
44,864.6
21,135.7
2004
1,092.8
255.3
5,317.6
4,602.2
4,297.5
1,415.3
21,895.9
4,602.1
51,458.7
47,847.2
40,698.9
19,825.5
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In 2005, all 51 CWSRF programs
agreed to use a suite of environ-
mental indicators to show how their
CWSRF projects impact water quali-
ty and public health. Reporting is
underway in over 40 states. States
and EPA can now link assistance to
Clean Water Act goals such as
swimming areas protected and fish-
eries restored. Such outcomes show
the environmental value of the
CWSRF's excellent financial record.
RESULTS FOR
STATES AND EPA
Recognizing that key program
stakeholders value results-oriented
information, states and EPA jointly
developed the environmental
reporting system. A 2001 taskforce
report, performance measurement
efforts in Georgia, Washington, and
Oklahoma, and a working session
with California, Nevada, and Hawaii
CWSRF managers helped identify
opportunities for documenting envi-
ronmental gains.
A workgroup of state representa-
tives and EPA met in the fall of 2004
and designed a set of core measures
that gather benefits data while mini-
mizing the burden on CWSRF pro-
grams. Key indicators fall into four
areas: savings to borrowers, utility
improvements, addressing water
quality problems, and protection
and restoration of public health and
biological communities. Following
an initial comment period, over 20
states piloted these measures,
recording benefits derived from over
$3 billion of assistance. Data review
and user feedback led to the release
of a web-based reporting form in
August 2005.
The CWSRF benefits reporting web-
site facilitates use of project water
quality information at the state and
federal levels. New fields allow
users to enter nonpoint source proj-
ects and to pinpoint affected water-
bodies. Customized state listings of
designated surface waterbody uses
make the information more relevant
to state-level stakeholders.
For immediate use of this valuable
information, state managers can
now automatically generate reports
detailing how their CWSRF pro-
grams fund projects that address
water quality problems and that
affect public uses of their states'
waterbodies. Access to reports
opens the door for EPA Regions to
help states demonstrate perform-
ance and outcomes.
States and EPA will continue to
work together to improve the data
entry and reporting portions of the
environmental benefits system. As
program managers download and
work with their states' data, EPA will
incorporate their ideas for new
reports. A state-led steering com-
mittee has begun discussions on
data quality issues and new oppor-
tunities for reporting.
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NATIONAL
ENVIRONMENTAL
R E s u LT s
The $5.4 billion in CWSRF loans
reported in the environmental bene-
fits effort have financed almost 800
projects that serve nearly 65 million
people. Over 600 borrowers have
saved $1.6 billion in interest costs as
they cleaned up rivers, lakes, and
streams for fishing and swimming.
The following graphs not only illus-
trate overall support for Clean Water
Act goals, but show how the
CWSRFs focus on water quality
problems. All graphs represent the
cumulative data submitted by states
to date.
FUNDING FOR CLEAN
WATER ACT GOALS
The measures show that the CWSRF
directly supports the goals of the
Clean Water Act by linking each
project to a river, lake, or stream and
to beneficial uses of that waterbody
such as fishing and swimming. $3.3
billion, over 60% of the total funding
reported, goes to projects that aim
first and foremost to preserve fish
habitat, provide for water recreation,
and protect drinking water. The
proportion of CWSRF assistance to
protect or restore these priority
uses--$3 billion for freshwater fish-
eries, $2.5 billion for recreational
uses, and $0.4 billion for drinking
water sourcesmirrors the distribu-
tion of these uses in the nation's
waterbodies. The corresponding
interest rate savings to municipali-
ties, and ultimately to utility cus-
tomers, also illustrate the CWSRF's
ability to provide access to financing
to achieve Clean Water Act goals.
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TARGETING ASSISTANCE
TO PROTECT AND
RESTORE WATERBODIES
Maintaining high quality waters and
returning polluted waters to a point
where they are swimable and fish-
able are equally important reasons
for funding. CWSRF programs
reported more funding and an even
higher percentage of projects to pro-
tect waterbody uses, but demon-
strate a strong commitment to indi-
vidual projects that help to restore
water quality.
Protecting and Restoring Waterbody Uses
PROTECTING
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ADDRESSING WATER
QUALITY PRIORITIES
CWSRF programs rank all project
applications for funding according
to public health and compliance cri-
teria. The benefits data evidences
this approach, showing that more
than twice as much funding goes to
projects that achieve compliance
versus those that simply maintain
compliance. Projects that affect
impaired or threatened waterbodies
received $3.4 billion, far more than
the $0.8 billion spent on projects
where the waterbody is meeting
standards. These differences are
more pronounced in the distribution
of subsidy* and in the average loan
amount per project.
ECONOMIC BENEFITS
Environmental performance adds to
the significant, documented econom-
ic benefits of the CWSRFs invest-
ment in water quality. Clean rivers,
lakes, and beaches sustain tourism
revenues, commercial and recre-
ational fisheries, irrigated agriculture,
public water utilities, and industry.
As sustainable infrastructure needs
are projected to increase substantially
over the next 20 years, the CWSRF
will provide important economic
benefits as a key source of financing
for wastewater treatment.
A recent EPA-commissioned study
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. These gains, plus an
initial increase of 16,000 to 22,000
jobs, would come mostly in local
infrastructure projects and in equip-
ment manufacturing.
' Subsidy indicates the interest rate savings for the full loan term when using the SRF interest rate instead of the market rate.
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Part of EPA's ongoing efforts to sup-
port the CWSRF program is an
annual business plan for continuing
and developing new CWSRF pro-
gram initiatives. The initiatives
planned or underway demonstrate
the Agency's commitment to maxi-
mizing the performance of the
CWSRF program. Two key compo-
nents of the business plan, the effort
to develop a system to report on
environmental results (described in
the previous section of this report)
and the CWSRF awards program
(described in the next section of this
report) began successfully in 2005.
Additional major business plan
activities are described below.
ENHANCING STATE
OUTREACH TECHNIQUES
As the CWSRF program has
matured, a significant number of
state programs have become inter-
ested in evaluating their approaches
to conducting outreach to potential
CWSRF borrowers. States'interest
in this topic illustrates their desire to
continue to improve the program
and to ensure that CWSRF funding
will be used to address critical water
quality projects.
In 2005, EPA began working with
the states of Michigan, Indiana,
Oklahoma, and Hawaii on this proj-
ect. It is expected that additional
states will join the effort in 2006.
This project will proceed in two
phases:
Phase I: Conduct research to deter-
mine local borrowers' perceptions of
their states'CWSRF programs.
States are considering the use of
surveys, focus groups, and inter-
views to gather this information.
Phase II: Develop and test useful
outreach techniques, such as annual
borrowers meetings and communi-
cations plans, that states may adopt
to market the CWSRF program to
prospective borrowers for high pri-
ority water quality projects. It will
be helpful for EPA to learn more
from the state and from prospective
borrowers about real and perceived
barriers and concerns inhibiting use
of CWSRF financial assistance.
After initial trials, states will settle
on a suite of outreach techniques to
use in the future.
EPA will work alongside states to
support their efforts. In addition,
the Agency will document the mar-
keting tools and techniques while
developing a resource guide and
other supporting materials (e.g,
helpful tips; Q's and A's) that will be
available to all states.
TRAINING
From the very beginning of the
CWSRF program, EPA has provided
annual training events to bolster the
capabilities of state and EPA person-
nel. Training workshops focus on
the technical and financial aspects
of SRF program management. The
workshops are tailored to meet the
needs of the intended audience,
reflecting their experience/skill level
and program interests. EPA con-
ducts a rotating series of workshops
in regions every other year for all
CWSRF program personnel. EPA
also supports the annual Council of
Infrastructure Financing Authorities
training workshop - a multi-day
event that draws together all 51
state programs to discuss salient
management issues.
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To reach even more CWSRF pro-
gram managers and staff, the
Agency is also developing a com-
plete set of training videos. Basic
and more advanced video training
will become available over the inter-
net and on DVD within the next
several years.
ACCREDITATION
EPA Headquarters is developing a
voluntary financial accreditation pro-
gram for EPA Regional CWSRF per-
sonnel. Proper financial manage-
ment oversight of the CWSRF pro-
grams within their respective regions
is a major responsibility of the EPA
Regional offices. The CWSRF finan-
cial accreditation program's goal is to
provide a set of educational and
diagnostic resources that will
enhance the Regions' ability to main-
tain and improve SRF financial man-
agement capacity. It is hoped that
EPA's Regional offices will use the
accreditation process as a training
tool to strengthen their ability to
evaluate the financial-related capabil-
ities of the SRF programs. Also, the
accreditation process will serve as a
useful guidepost for planning future
training activities.
For EPA's Regional staff, the accredi-
tation program will provide an
opportunity to be recognized as spe-
cialized experts in SRF financial
management. As experts, they will
be sought out during efforts to
address difficult or unique SRF-
related issues. As new staff join
EPA's Regional offices, the accredita-
tion program will help guide them
as they develop their SRF manage-
ment capabilities.
During the next year, an initial exam
will be developed that incorporates
the most important financial ele-
ments of the CWSRF program.
Topics will range from financial
assistance options allowed under the
CWSRF program regulations to the
requirements for proper financial
management oversight of state pro-
grams. A study fact sheet will
describe the topics to be covered by
the exam. A comprehensive refer-
ence guide will provide the resources
needed for self-paced study and will
include a list of printed materials,
related available certification pro-
grams, continuing educational cours-
es, and other resources that would
be helpful to individuals seeking to
increase their financial knowledge
and their ability to analyze and sup-
port CWSRF programs.
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STATE AGENCIES THAT MANAGE CWSRF PROGRAMS
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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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The high level of professionalism
among program managers has
resulted in many innovations that
have made the CWSRF a model
government subsidy program. The
2005 PISCES Awards (Performance
and Innovation in the SRF Creating
Environmental Success) acknowl-
edge the important work conducted
by state program managers and the
advancement of EPA goals of per-
formance and water quality protec-
tion through the use of the Clean
Water State Revolving Fund.
Besides recognition, the PISCES
Awards serve to highlight program
innovations to allow other programs
the opportunity to replicate program
designs or build upon a preexisting
idea to further enhance perform-
ance. In 2005, state programs were
recognized for their accomplish-
ments. In 2006, borrowers with
superb planning, implementation,
and management strategies will be
recognized. Individual projects will
be showcased from each EPA region.
This past year, ten states, one from
each region, received awards for
their outstanding achievements.
Each Regional office nominated a
candidate state program based on
multiple criteria. First, each nomi-
nee needed a fund utilization rate
(pace) greater than 80% and audits
that revealed no serious program-
matic or financial problems with the
program. Each nominee also had to
demonstrate outstanding perform-
ance for at least two out of nine
additional criteria: better manage-
ment practices, full-cost pricing, effi-
cient water use, watershed
approach, promotion of creative use
of technologies, leveraging practices,
innovative partnerships, innovative
lending practices, and replicability.
The winners of the 2005 CWSRF
PISCES Awards are:
Region 1 - Maine
Region 2 - New York
Region 3 - Delaware
Region 4 - Florida
Region 5 - Ohio
Region 6 - Oklahoma
Region 7 - Kansas
Region 8 - Montana
Region 9 - California
Region 10 - Oregon
These ten states serve as excellent
examples of high quality perform-
ance, integrity, and creativity in the
CWSRF program. Winners were
recognized at the national meeting
of the Council of Infrastructure
Financing Authorities (CIFA) in
Chicago, IE in October of 2005.
Short descriptions of each state's
exemplary practices follow.
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2005 PISCES Award Winners:
Performance and Innovation in
REGION
OREGON
The Oregon Department of Environmental
Quality (ODEQ) makes efficient water use a
priority by promoting the use of wastewater
effluent for irrigation and appropriate urban
uses and by making loans to irrigation dis-
tricts that support water efficiency. One
loan was used to move an irrigation dis-
trict's water supply out of a stream into a
pipeline, reducing erosion and turbidity in a
stream that is habitat for an endangered
species. "'
The Montana CWSRF program has used almost 25 percent of its
funding over the past five years, $23 million, for implementation
of the state's Section 319 non-point source management plan.
The Departments of Environmental Quality and Natural
Resources and Conservation also developed the Uniform
Application Supplement for Montana Public Facilities Projects, which
helped to increase pace from 65 to 100 percent.
REGION
KANSAS
After making sustainability of water and
environmental resources a core value for its
CWSRF program, the California State Water
Resources Control Board (SWRCB) worked
with staff to incorporate sustainability into
the CWSRF's policy and future funding
decisions.
The Kansas Department of Health and
Environment uses its CWSRF program to
encourage development and use of new treat-
ment processes and plant designs including the
use of state-of-the-art technologies, such as UV
disinfection technology, BNR activated sludge
designs, long detention lagoons, and non-over-
flowing lagoons.
REGION e: OKLAHOMA
With its Integrated Priority Ranking System, the
Oklahoma Water Resources Board adopted a watershed
approach that ranks projects for funding based on the
goals of the Clean Water Act and the state's Unified
Watershed Assessment to eliminate human health
threats, restore impaired surface waters, and protect
high quality waters and their uses.
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the CWSRF
REGION 5: OHIO
REGION i: MAINE
Demonstrating innovative lending practices, the Maine
Municipal Bond Bank and Maine Department of
Environmental Protection have set aside $2 million for private
septic repair and replacement loans and give farmers access to
2% loans for the construction of manure storage facilities.
Using creative financial approaches, Maine refinanced $36
million in loans and leveraged the money that was freed up,
resulting in over $20 million of additional available funding.
With $3 billion in loans, the Ohio EPA and
Water Development Authority are leaders in
financing non-traditional projects. Ohio's
latest innovation, the Water Resource
Restoration Sponsor Program (WRRSPj, has
made over $67 million worth of loans for
projects that have acquired wetlands, ripari-
an lands, and conservation easements,
restored habitat, and modified dams.
REGION 3: DELAWARE
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New York's CWSRF program leads the country in fund-
ing nonpoint source projects, with over $739 million in
loans made through 2005. The New York State
Environmental Facilities Corporation also implemented
a new leveraging technique that allowed it to sell
subordinated SRF bonds without a reserve fund
pledge, resulting in a loan interest rate of 1.94%.
S
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Through innovative partnerships, the Delaware Department of
Natural Resources and Environmental Control streamlined proj-
ect review and management processes, enhanced marketing and
implementation of agricultural best management practices, and
promoted the use of CWSRF loans to implement nonpoint
source projects.
REGION 4: FLORIDA
To promote efficient water use, the Florida
Department of Environmental Protection funded 83
projects totaling over $260 million for water reuse
projects. The CWSRF-financed HollowayTree Farm
irrigation system has conserved over 100 million gal-
lons of water without compromising plant growth.
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CWSRFs Fund $52.7 Billion in Clean Water Needs through 2005
:D TREATMENT WORKS
D: COMBINED SEWER OVERFLOW
D: SANITARY SEWER OVERFLOW
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CWSRF LOANS
SAVE COMMUNITIES
21% ON AVERAGE
According to a popular municipal
borrowing index, the typical munici-
pal borrowing rate was 4.9 percent
in 2005. The average CWSRF inter-
est rate offered on loans was 2.2
percent. The average cost savings
realized by CWSRF borrowers repre-
sented a 21 percent savings on
financing costs.
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AVAILABLE CWSRF
FUNDS ARE QUICKLY
USED FOR NEW
PROJECT ASSISTANCE
Due to low interest rates and broad
financing eligibilities, CWSRF fund-
ing continues to be in high demand.
In 2005, 95 percent of all available
funds were committed to new proj-
ects. This efficient rate of fund uti-
lization is one reason that the return
on federal investment will continue
to grow impressively over time.
95% of CWSRF Funds Committed to Projects in 2005
m u> m en u> en m m m ma1-1
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STANCE PRDVID
JDS AVAILABLE
CONTINUED GROWTH
OF LOAN ASSISTANCE
Cumulative CWSRF loan assistance
has demonstrated strong growth
over the first 18 years of the pro-
gram. National modeling projects
that loan volume will expand rapid-
ly, topping $110 billion in 2025.
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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 gener-
ally accepted auditing standards
established by the Governmental
Accounting Standards Board
(GASB). GASB offers guidelines to
the governmental accounting pro-
fession 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:
STAT E M E N T 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 treas-
ury 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.
STAT E M E N T 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.
STAT E M E N T 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 on
the following pages. The statements
are best viewed as non-audited,
cash flow-based financial reports.
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2005 Financial Statement Highlights
Statement of Net Assets
Total assets increased by $2.6 billion (5.9% increase from 2004).
CWSRF program equity (also called net assets) totals $28.4 billion (6.9% increase from 2004).
Program liabilities increased by $0.8 billion, reflecting the net growth in CWSRF bonds
outstanding for state matching funds and leveraged program financing (4.3% increase from 2004).
Statement of Revenues, Expenses, and Earnings
Total program revenues exceeded expenses by $1.9 billion.
Interest earnings from loans and investments totaled nearly $1.5 billion (17.1% increase from 2004).
Administrative expenses were 2.9 percent of operating revenues (down from 3.5% in 2004).
Statement of Cash Flows
Loan principal repayments to CWSRF programs were nearly $1.8 billion.
Leveraged bond proceeds added more than $1.5 billion to program cash flow.
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Clean Water State Revolving Fund National Performance Summary Statement
Statement of Net Assets - Estimated ($ Millions)
2005
2004
20
Assets
Cash and Cash Equivalents
Debt Service Reserve - Leveraged Bonds
Loans Outstanding
Unamortized Bond Issuance Expenses
Total Assets
Liabilities
Match Bonds Outstanding
Leveraged Bonds Outstanding
Total Liabilities
Net Assets
Federal Contributions
State Contributions
Transfers of Non-Federal Funds from (to) DWSRF
Other Net Assets
Total Net Assets
8,573.4
6,516.2
31,676.7
271.4
47,037.6
669.5
17,989.0
18,658.5
21,135.7
3,634.0
(354.8)
3,964.2
28,379.1
8,965.3
5,868.1
29,308.1
260.7
44,402.2
679.8
17,202.3
17,882.0
19,825.5
3,494.6
(310.1)
3,510.2
26,520.2
Total Liabilities and Net Assets
47,037.6
44,402.2
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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.
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Assets are Grooving Faster then Liabilities
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BILLIONS OF DOLLARS
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Clean Water State Revolving Fund National Performance Summary Statement
Statement of Revenues, Expenses, and Earnings - Estimated ($ Millions)
2005
2004
Operating Revenues
Interest on Investments
Interest on Loans
Total Operating Revenues
Operating Expenses
Bond Interest Expenses
CWSRF Funds Used for Refunding
Amortized Bond Issuance Expenses
Administrative Expenses
Total Expenses
583.3
882.8
1,466.2
953.3
2.5
13.0
43.2
1,012.1
421.4
830.8
1,252.2
799.3
31.4
12.0
43.5
886.3
22
Nonoperating Revenues and Expenses
Federal Contribution
State Contributions
Transfers from (to) DWSRF
Total Nonoperating Revenues (Expenses)
Increase (Decrease) in Net Assets
1,310.2
139.4
(44.7)
1,404.9
1,859.0
1,415.3
189.1
8.3
1,612.7
1,978.6
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Net Assets
Beginning of Year
End ofYear
26,520.2
28,379.2
Note: Statement presents a compilation of reporting from 51 state programs and is not audited.
Source: EPA's CWSRF National Information Management System.
24,541.6
26,520.2
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Interest Comprises over Half of CWSRF Revenues
_LIONS DF
JDNDPERATING RENEVUEE
INTEREST ON INVESTMENTS
Revenues Significantly Exceed Expenses
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Clean Water State Revolving Fund National Performance Summary Statement
Statement of Cash Flows - Estimated ($ Millions)
Cash Flows from 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
Net Cash Provided by Operating Activities
Cash Flows from 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 Repayments of Leveraged Bonds
Principal Repayments of State Match Bonds
Net Cash Provided by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities
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
Beginning Balance - Cash and Cash Equivalents
Ending Balance - Cash and Cash Equivalents
2005
1,310.2
139.4
(4,165.7)
1,797.1
882.8
(43.2)
(79.4)
1,614.1
(23.7)
64.5
(44.7)
(953.3)
(2.5)
(827.3)
(74.8)
(247.8)
0.0
583.3
(648.1)
(64.7)
(391.9)
8,965.3
8,573.4
2004
1,415.3
189.1
(4,297.5)
2,064.0
830.8
(43.5)
158.1
2,927.0
(32.7)
66.2
8.3
(799.3)
(31.4)
(731.7)
(55.0)
1,351.4
0.0
421.4
(753.0)
(331.6)
1,177.8
7,787.5
8,965.3
Note: Statement presents a compilation of reporting from 51 state programs and is not audited.
Source: EPA's CWSRF National Information Management System.
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CWSRF-at-a-Glance
Funds Available for Projects (Billions of Dollars)
2005 1988-2005
Total Funds $3.8 $55.3
Federal Capitalization Grants 1.36 23.3
State Match 0.20 4.8
Net Leveraged Bonds 0.94 16.9
Net Loan Principal Repayments 0.97 7.3
Net Earnings 0.44 4.3
Net Transfers with DWSRF (.04) (.4)
(Less Administration) (.05) (.9)
Return of 2.12 Times the Federal Investment
95% of Funds Committed to Projects
2.2% Average CWSRF Interest Rate in 2005,4.9% Market Rate
21% Average Savings over Market Rate Loans
27 States Leverage; 20 Issue Match Bonds
37 States Fund Nonpoint Source Projects
29 States Use Integrated Priority Systems
43 States Conduct Separate Audits
40 States Fund Separate Grant or Loan Programs
Assistance Provided to Projects (Billions of Dollars)
2005 1988-2005
Total, by Project Type $4.9 $52.7
Wastewater Treatment 4.77 50.0
Nonpoint Source 0.23 2.1
Estuaries 0 0
Unallocated 0 0.6
Total, by Population Served $4.9 $52.7
< 3,500 0.56 5.5
3,500 - 9,999 0.53 6.6
10,000 - 99,999 1.39 17.7
100,000 and Above 2.38 22.9
# of Loans, by Population Served 1,448 16,752
< 3,500 770 7,964
3,500 - 9,999 213 2,631
10,000 - 99,999 298 4,295
100,000 and Above 167 1,862
Source: EPA's CWSRF National Information Management System
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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Office of Water March 2006 EPA-832-R-06-001
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