.
     . .  B]
  A  NEWSLETTER  FOR  THE  CLEAN  WATER  AND  DRINKING  WATER  SRF  PROGRAMS
                                              ON  THE   NATIONAL  SCENE
                                              From the Hill
                                              In recent months, Capitol Hill has shown particular interest in the Clean Water and Drinking
                                              Water State Revolving Funds. Last summer, Congress requested a public forum to discuss
                                              the effectiveness of federal water quality funding programs. This summer, Congress may
                                              enact a new law reauthorizing the CWSRF and DWSRF programs.
                                                  In House Report 107-159  (July 2001), the Committee on Appropriations requested
                                              that EPA host a forum to consider how the federal government should strike a balance
                                              between program flexibility and environmental return on federal investments.  In response
                                              to this request, EPA hosted a two-day workshop on March 14-15 entitled "Paying for Water
                                              Quality: Managing Funding Programs to Achieve the Greatest Environmental Benefit."
                                              Nearly 120 people attended this workshop, including representatives of federal agencies,
                                              state agencies, municipalities, nonprofit organizations, associations, private sector companies,
                                              and congressional committees.  The workshop addressed the questions posed by Congress
                                              through a combination of expert speaker panels, question and answer sessions, and open
                                              discussion periods.  This fall, EPA will submit a Report to Congress that considers these
                                              issues and provides an overview of the discussion at the workshop.
                                                  In 2002, Congress has introduced legislation that would reauthorize the Clean Water State
                                              Revolving Fund, authorize increased levels of funding for both the Clean Water State Revolving
                                              Fund and the Drinking Water State Revolving Fund, and amend many of the programs'
                                              requirements. The following are some of the most significant changes proposed  in either the
                                              Water Investment Act (S. 1961) or the Water Quality Financing Act of 2002 (H.R. 3930):
                                              • $20 billion authorized for the CWSRF program
                                              • $15 billion authorized for the DWSRF program
                                              • $5 billion authorized for grant program to help small communities meet new arsenic limit
                                              • Wet weather (CSO/SSO) grant program reauthorized (program authorized last year but
                                                never funded)
                                              • Federal Davis-Bacon prevailing wage law applied to DWSRF  program, reapplied to CWSRF
                                                program
                                                                                                            CONTINUED ON PAGE 2

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                                               SRF's  1


ON THE NATIONAL SCENE from page 1

• CWSRF allotment formula changed to better reflect Clean
  Water Needs Survey estimates
• State CWSRF programs permitted to offer extended
  repayment periods, forgiveness of loan principal, and
  negative interest rate loans
• State CWSRF programs required to integrate their priority
  ranking systems
• The Senate Bill would also require CWSRF and DWSRF
  recipients of assistance to meet several conditions as a
  requirement of funding, including the development of asset
  management plans and adequate rate structures.
    As this issue of SRF's Up  goes to press, both House and
Senate bills have moved through committee.  To learn about
their status, visit http://thomas.loc.gov and enter bill number
S.196lorH.R.3930.

Addressing the  Challenge of the Arsenic Rule
In January 2001, EPA released a revised public health
protection standard for arsenic  in drinking water lowering the
Maximum Contaminant Level  (MCL) of arsenic in drinking
water from 50 parts  per billion  to 10 parts per billion. The
new 10 ppb arsenic MCL becomes enforceable on January 23,
2006 for community water systems (CWSs) and nontransient
noncommunity water systems (NTNCWSs). EPA projects that
3,000 CWSs and 1,100 NTNCWSs will need to take  measures
to lower arsenic in their drinking water. More than 95% of
those  systems serve 10,000 people or fewer.  Implementing
the new standard will present a challenge for both  state staff
and utilities, particularly since the treatment needed for
compliance may be the first treatment that a utility has had to
install. Federal agencies, state drinking water programs, and
state DWSRF programs will have to work together to help
utilities meet the compliance deadline for the arsenic standard
and other rules that will come out over the next several years.
    EPA has developed a strategy for assisting small systems in
implementation of new standards that is  based on simplifying
implementation of new rules, focusing technical assistance
and training, enhancing system sustainability and targeting
financial assistance. With respect to implementation of the
arsenic standard, EPA is encouraging states to make appropriate
use of exemption authority under the Safe Drinking Water Act
(which can extend the time period over which a system must
come into compliance) and point-of-use (POU)  treatment for
very small systems where POU is an acceptable option. The
agency is also working to focus technical assistance and
training on the new standard.  In 2002, EPA will conduct
more than six implementation workshops around the country
for state staff, utilities, and other technical assistance
providers.  The agency is also  developing compliance guides
and design manuals for state staff, consultants, and utility staff
to assist them in making decisions about what technology best
fits the needs of a given utility.   Because enhancing sustainability
of systems is one of EPA's overarching goals for its drinking
water program, EPA is encouraging states to integrate their
existing capacity development  strategies with the effort to
move systems towards compliance. Sustainable  systems will

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                                                  SRF'
better meet the challenges presented by the arsenic standard
and other upcoming regulations. In some cases, systems may
identify opportunities for consolidation of management functions
or physical assets as they work to determine how they will
comply with the new rule.  Finally, EPA is working with other
federal agencies and state DWSRF programs to target financial
assistance to those systems needing financial assistance to
achieve compliance.
     On the financial assistance front, EPA has entered into a
Memorandum of Agreement (MOA) with the U.S. Department
of Agriculture's Rural Utilities Service  (RUS). In the MOA,
RUS  agrees to give a high priority for infrastructure projects
needed for compliance with the arsenic standard and will give
high consideration to the funding of such projects from its
national reserve.  The agreement also directs state  Rural
Development staff to coordinate on funding decisions with
state DWSRF staff in an effort to make the most efficient use of
resources and reduce the burden on small systems seeking
capital improvement funds.  EPA is likewise encouraging state
DWSRF staff to make an effort to meet with state Rural
Development staff. At the national level, the two agencies
agree to continue to work together to coordinate programs
and policies and to establish, as a priority use of technical
assistance resources, efforts to help systems comply with  the
new  arsenic standard.
     One state that will be particularly impacted by the new
standard is already moving forward proactively to develop its
own  strategy for getting small systems into compliance.  The
State of Arizona is using a stakeholder process to develop an
Arsenic Master Plan (AMP) which integrates the state's
regulatory compliance, capacity development, and infrastructure
funding programs in an effort to ensure that all systems meet
the 2006 compliance deadline.  One of the goals of the AMP
is to  develop an easy to understand guidance document that
will help systems understand what they will need to do in
order to comply with the rule.  The guidance will include a
plain language summary of the rule and a decision tree to
help  a system determine the best path to compliance  using
non-treatment or treatment options. The guide will also
include a pre-design manual for various treatment options that
a system can adapt to conform to their system characteristics
so that they will not have to hire an engineer to do so.
Because many systems will require financial assistance to
make needed changes, the guidance will discuss the various
options available to a system.  The Water Infrastructure
Finance Authority (WIFA), which manages the DWSRF program,
will prioritize arsenic-related projects for financial and
technical assistance through the DWSRF and will offer its
expertise in helping systems obtain other sources of financing.
WIFA is also working with the state public service commission
to streamline rate-setting practices to help systems that may
need to increase their rates to address capital and operational
needs. Finally, because the state recognizes that partnerships
will help  it meet the implementation challenge, it is working
to identify technical assistance providers to help systems and
is also asking systems with good compliance records to serve
as a mentor for one or more smaller public water systems.
Drinking water program and WIFA staff will train the mentors
on the AMP and the goals of the program and participants will
get an award that they will be able to promote in their consumer
confidence reports.
    EPA believes that the efforts being made to help small
systems comply with the new standard  will have far-reaching
benefits in helping these systems improve their technical,
financial, and managerial capacity and comply with other
regulations.  The DWSRF program will prove to be a
significant tool in allowing states to help systems make
infrastructure improvements  and in providing technical
assistance to systems using the set-asides.  A new fact sheet
on how the DWSRF program  can be used to help comply with
the new arsenic rule can be found  on the EPA DWSRF website.

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                                                SRF's  Up
STATE  ACTIVITIES  AND  TRENDS

Coordination of Environmental
Reviews in Pennsylvania
Several state and federal agencies have worked out a mechanism
to promote efficiency in the environmental review process for
water and wastewater infrastructure projects seeking financial
assistance in Pennsylvania.  The agencies involved are the PA
Department of Environmental Protection, the PA Department
of Community and Economic Development, the USDA Rural
Utilities Service, and the Environmental Protection Agency,
Region III.
    The Uniform Environmental Review (UER) process
standardizes the requirements for documenting the
environmental impacts of proposed drinking water and
wastewater infrastructure projects requesting financial
assistance from various federal funding sources in
Pennsylvania. Basically, a funding applicant can complete one
environmental assessment (or request for a categorical
exclusion) that serves the purpose of each funding program.
This allows for a streamlining and coordination of the
environmental review of proposed projects and avoids major
inconsistencies or duplication of effort, particularly where
multiple sources of funding are involved.
    The UER process also recognizes that most aspects of the
environmental assessment are also considered as part of the
PA DEP's environmental planning and permitting processes.
This helps project sponsors to construct a stand-alone UER
document for funding consideration, either by "cutting and
pasting" from, or by cross-referencing, applicable elements of
state planning or permitting documents.
    The specific financial assistance programs that can utilize
the  UER are:
1. The Clean Water State Revolving Loan Fund
2. The Drinking Water State Revolving Loan Fund
3. The RUS Water and Waste Disposal Grant and Loan Program
4. The Community Development Block Grant Program
5. Congressional Earmark Funding
    The UER process has been in place since mid-2001.
Favorable results are being reported by the RUS offices, and
EPA Region III staff have found it particularly helpful in
evaluating Congressional earmark projects. The UER
Guidance document is available on PA DEP's website at
http://www.dep.state.pa.us/dep/subject/All_Final_Technical_g
uidance/bwsch/381-5511-111 .pdf.
    Questions about the UER process may be directed to
Peter Slack, PA DEP, Bureau of Water Supply and Wastewater
Management, 717-787-3481 or bye-mail at pslack@state.pa.us.

Ohio's Water Resource
Restoration Sponsor Program
Overview
The Water Resource Restoration Sponsor Program, or WRRSP,
was created by Ohio EPA in 2000 as a component of its Clean
Water Act State Revolving Fund program (CWA SRF), called
the Ohio Water Pollution Control Loan Fund (WPCLF).
    The purpose of this new program component is to
finance projects that either fully restore or protect water
resources through habitat restoration or protection.

Why the WRRSP?
Ohio water resource inventories since the early 1990s have
documented a significant shift in the causes and sources of
water quality impairment.  Prior to this time, municipal and
industrial wastewater discharges were the predominant
sources of impairment to the state's waters.  However, with the
major accomplishments realized during the 1970s and 1980s
in improving wastewater treatment, the major sources of
water resource impairment and threats to water resources
already in attainment have changed to nonpoint sources of
pollution, in particular habitat degradation, the loss of riparian
stream corridor and buffer zones, sedimentation, and stream
channel modifications.  This information made Ohio CWA SRF
program managers realize that if the WPCLF was to be an
effective tool in helping to bring about improved water quality
in Ohio, it had to address the current major sources of

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                                                 SRF'
impairment in addition to providing loans for improving
municipal wastewater treatment systems.
    Unlike point sources of pollution, nonpoint sources,
particularly those that are related to habitat degradation, are
not readily addressed through loans.  This is because the
projects, which include purchasing and managing land or
restoring aquatic habitat, do not generate revenues which could
be used to repay a loan. As an example, the WPCLF, before the
inception of the WRRSP, only made three direct loans for
addressing habitat restoration needs.  All three of these loans
were to the Ohio chapter of the Nature Conservancy for
restoration and protection work it is doing on Ohio Brush
Creek in Adams County. The experience with using low interest
rate direct loans to encourage these types of improvements
convinced Ohio EPA that another way had to be found to bring
about financing of these types of projects-one that would link a
revenue source with the necessary improvements.

Creation of the  WRRSP
The major revenue generating sources which use WPCLF
financing are municipal wastewater treatment systems.  It
occurred to Ohio EPA that if it could induce these loan
                    Ohio's  Water Resource
              Restoration  Sponsor  Program
              o
        Community and
      implementing partner
      enter into sponsorship
           agreement
            ©
      CWSRF provides
 funding to community for
 wastewater treatment and
    restoration projects
                                  CWSRF

               Community
                 Sponsor
    Community provides CWSRF
      funding for sponsored
        restoration project
                                    -O-
I Restoration Project
mplementing Partner
                 O
             Community
          repays low-interest
           loan to CWSRF
recipients, as a part of obtaining financing for improvements
to their wastewater systems, to increase the size of their loans
to fund habitat restoration and protection, then it could
harness the revenue generated by a municipal wastewater
utility to improve not only municipal wastewater treatment
facilities, but to also address some of the key sources of
impairment and threats to water quality in Ohio.
    The  key to establishing the WRRSP was to structure the
combination loans such that the municipal wastewater
treatment system would  see no increase in cost from the
sponsorship. Using its authority to set interest rates from a
market rate of interest down to interest free loans, Ohio EPA
was able  to restructure the original wastewater treatment
improvement loan so that the loan recipient, through sponsoring
a project that addresses water resource habitat issues, actually
saves money over what it would  have cost to repay the original
loan for the wastewater facilities alone.

How the WRRSP Works
Recipients of direct loans for wastewater treatment or other
improvements, such as brownflelds remediation, that are
interested can participate in the WRRSP program by undertaking
                 restoration or protection projects themselves
                 or by sponsoring another group, such as a
                 land trust, park district, or other entity with
                 the ability to protect and manage such
                 resources. The sponsor then provides
                 funds to complete an approved restoration
                 project. The cost of the WRRSP project is
                 added to the sponsor's requested WPCLF
                 loan amount and the loan interest rate is
                 reduced to a percentage which produces in
                 the same total cost of borrowing (principal
                 plus interest) as the original loan without
                 the WRRSP project.  The interest rate is
                 then reduced by an additional 0.1 percent.
                 The loan interest rate can go down to a
                 minimum of 0.2 percent.
                                   CONTINUED ON  PAGE 6

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                               SRF
OHIO'S WATER RESOURCE RESTORATION SPONSOR PROGRAM PROJECTS
Project Name
Purpose
Implementer
Sponsor
Amount $

Vermilion River
East Fork East Branch
Black River
Edison Woods
Preserve
Upper Cuyahoga River,
bog preservation
Honey Creek Wetlands
& Great Miami River
Stillwater River
Protection
Blanchard River
Protection
Sulphur Springs
Stream Preservation
Kent Dam Remova
Middle Cuyahoga
River Restoration
Singer Lake Bog
Preservation
Mahoning River
Restoration
Brewster Bog
Preservation
Steiner Woods
Wetland Preservation
Sawmill Creek
Preservation
riparian land acquisition
for protection
restoration of stream banks,
stream channel, and riparian
habitat through land acquisition
preservation and restoration
of wooded wetlands and
headwater creeks
land acquisition and
wetlands restoration
wetland acquisition, and
riparian land acquisition
and enhancement
riparian land acquisition
riparian land acquisition
riparian land acquisition
and stream channel restoration
dam removal study
bog acquisition
restoration plan
bog acquisition
wetland acquisition
headwater stream and
wetland land acquisition
Lorain County
Metro Park District
Medina County
Park District
Erie County
Metroparks
Village of Mantua
Honey Creek
Watershed Association
Three Rivers
Metroparks
Hancock County
Park District
City of Solon
City of Kent
Cleveland Museum of
Natural History
City of Vermilion
Village of Lodi
City of
Marion
Village of Mantua
Tri-Cities Regional
Water and Sewer
District
Montgomery County
City of Findlay
City of Solon
City of Massillon
City of Massillon
Eastgate Regional City of Massillon
Council of Governments
The Wilderness Center
University of Akron
Mill Creek Metroparks
City of Massillon
City of Massillon
City of Massillon
672,000
1,730,000
6,000,000
1,500,000
1,906,000
1,147,000
650,000
1,153,000
1,240,000
300,000
1,500,000
1,000,000
725,000
2,000,000


-------
                                                 SRF'
STATE ACTIVITIES AND TRENDS frontpage 5

The following hypothetical examples show how the discount works.

        WPCLF  Loan Without A WRRSP Project
         Borrow $1 million for a Wastewater
           Treatment Plant (WWTP) project
       At a WPCLF interest rate of 3.80 percent,
       total payments would equal $1,436,707

                          OR
            WPCLF Loan With A $393,442
      WRRSP Project Amount Added To The Loan
     Borrow $1  million for the WWTP Project AND
           $393,442 for the WRRSP Project
• Total loan amount equals  $1,393,442.
• Interest rate reduced so  repayments equal to
  repayments that would have been made on the
  original $1,000,000 loan—results in an interest
  rate of 0.3 percent
• An additional incentive reduction of 0.1 percent
  made in interest rate
• Final interest rate is 0.2 percent
• Total payments equal $1,422,193
• Applicant saves $14,514  in loan repayments over
  original $1,000,000 loan at 3.80 percent

WRRSP Project Requirements
If the WRRSP project is carried out by a third  party, both the
sponsor and the implementer  enter into a sponsorship
agreement that establishes the obligations on the part of the
implementer to properly implement the project, and on the
part of the sponsor to fund the implementation of the project.
The sponsorship agreement becomes an attachment to the
loan agreement.  The implementer also prepares a restoration
and protection plan which Ohio EPA reviews and approves as
part of its approval process for the loan.  This plan identifies
the need, shows how the project will meet the need, provides
a plan for implementing and monitoring the improvements, as
well as a schedule and budget.
    Any properties purchased as a part of the restoration or
protection project have to either have deed restrictions or
permanent conservation easements placed on the properties.
The following are the restrictions that apply to such properties.
1. The property shall be maintained in perpetuity as a
  natural area.
2. There shall be no industrial, commercial, or agricultural
  activity on the property.
3. The property may not be divided, partitioned, subdivided,
  or conveyed except in its current configuration; i.e., all
  parcels must be conveyed to one entity or person in their
  entirety.
4. There shall be no mining, drilling, or exploring for or
  removal of minerals, oil, or gas from the property.
5. Except as may be necessary for reasonable preservation,
  management, and restoration purposes, there shall be no
  ditching, draining, diking, filling, excavating, or removing
  topsoil, sand, gravel, rock, or other materials.
6. There shall be no manipulation or alteration of creeks,
  streams, surface or subsurface springs, or other bodies of
  water, or any activities on, or uses of, the property
  detrimental to water purity or quality. Restoration activities
  involving surface water manipulation must be approved in
  advance by the Ohio Environmental Protection Agency.
7. There shall be no dumping of trash, garbage, or hazardous
  or toxic substances.
8. Except as may be necessary for reasonable preservation,
  management, or restoration purposes,  there shall be no
  building of new roads or other rights of way.  Existing roads
  may be maintained but shall not be widened or improved.
  This restriction does not prohibit the development of
  recreational trails for hiking, cross country skiing, nature
  observation, or other similar purposes.
9. There shall be no recreational operation of snowmobiles,
  dune buggies, motorcycles, all-terrain vehicles, or other
  motorized recreational vehicles.
10. There shall be no domestic livestock, no non-native
   animals, and no feedlots permitted on the property. There
   shall be no hunting or trapping except as necessary to
                                   CONTINUED ON PAGE 8

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                                                 SRF


STATE ACTIVITIES AND TRENDS frontpage 7
    keep animal populations within numbers consistent with
    the ecological balance of the property or as necessary to
    protect human health and safety.
11. Except as may be necessary for reasonable preservation,
    management, or restoration purposes, there shall be no
    removal, destruction, cutting, trimming, or mowing of any
    trees or other vegetation except as required to maintain a
    diversity of naturally occurring habitat types and control
    of exotics. No non-native species shall be introduced to
    the property.
12. There shall be no use of insecticides, fungicides, or
    rodenticides, unless necessary to protect human health
    and safety. Herbicides may be used for the control of
    state designated noxious weeds and for the control of
    other invasive exotic plant species.

WKRSP Experience in Ohio
As of the end  of 2001, more than $21.5 million had been
obligated to fund 14 projects around Ohio.  Another $15
million is expected to be obligated in 2002.  Sponsors have
either supported projects in their own locality or, as is the
case with the  city of Marion and the city of Massillon,
supported projects in other parts of the state. A list and
description of the projects funded to date appears on page
6 of this newsletter.
     Any questions  regarding the WRRSP program in Ohio can
be directed to: Robert Monsarrat, Jr., Manager, Environmental
Planning Section, Division of Environmental and Financial
Assistance,  Ohio EPA, P.O. Box 1049, Columbus, OH 43216-
1049, (614) 644-3655

State Activities and Trends Briefs
Washington's InfrastructureDAIABASE
Washington's  Infrastructure Assistance Coordination Council
(IACC) has  developed an internet-accessible database that
locates funding or technical assistance for water quality
projects. The  pull-down menus on the site offer potential
borrowers one easy-to-use location to check multiple funding
sources available in Washington state.
     The database sorts assistance programs based on the type
of assistance (such as grant or loan), type of project (such as
wastewater treatment or wetland restoration), type of borrower
(such as local government or private landowner), and match
requirements.  Once all search requirements are added, the
potential borrower pushes the 'Get Results' button and all
funding sources that meet the search criteria are listed for the
user. Potential borrowers can then link to the funding programs
found on the search results page.
     IACC developed this web site to enhance the services the
organization already provides. IACC is an organization in
Washington that promotes partnerships with all levels of
government and works to enhance efficiency and coordination
of financial and technical assistance for borrowers. They act as
a forum for interested parties within the state to discuss issues
that hinder local governments from meeting their infrastructure
needs. The organization created the database and web site to
help borrowers simplify their funding source search and make
finding government funding in Washington easier.
The database can be found at www.infrafunding.wa.gov.

Michigan Completes Project with
Simultaneous DWSRF and CWSRF Loans
Adapted from the "Mt. Clemens Completes Improvements with
Simultaneous DWSRF and SRF Loans" article in the Spring/
Summer 2002  issue of The Loan Arranger, Michigan Department
of Environmental Quality (http://umw.michigan.gov/deq).

In January 2002, the city of Mount Clemens, Michigan  finished
a $36.5 million dollar project that combined drinking  water
and clean water state revolving loans—one of the first pro-
jects in the nation to combine the funding sources. The pro-
ject consisted of constructing an ozone disinfection facility for
additional purification of the town's drinking water, correcting
problems associated with an undersized and unreliable water
main, and eliminating combined sanitary sewer overflows. Mt.
Clemens becomes the first  Metro Detroit Community Water
Supplier to provide ozone treatment for its drinking water.

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                                                  SRF's  Up
    From an administrative standpoint, the simultaneous
construction of a disinfection facility, water mains, and
sanitary sewers was a new cost accounting challenge for the
Michigan Department of Environmental Quality, the Financial
Department for the city of Mt. Clemens, and the city's engineering
firm. Four loans (two approved in 1998 and two approved in
1999) encompassed the simultaneous construction of sanitary
sewer and water main improvements. The DWSRF and CWSRF
loans financed $30 million of the roughly $36.5 million
expended to construct the entire series of eight projects.
    The successful completion of the system improvements
for the city of Mt. Clemens is a good example of how cooperation
between a municipality, a private engineering firm, and state
government can work together in a complex situation to
improve the quality of drinking water and help protect state
surface waters.

Illinois Starts Leveraging their SRF Program
The Illinois Environmental Protection Agency's Financial
Assistance Program in the Bureau of Water started leveraging
both the clean water and drinking water SRF programs in June
2002. The initial leveraging bonds totaled $150 million. $100
million is expected to go toward clean water projects and the
remaining $50 million will go toward drinking water projects.
The loan rate to program participants is one-half the Bond
Buyer 20-year General Obligation Bond Index, with a minimum
of 2.5 percent. Moody's gave the SRF revenue bonds a 'Aaa'
rating and Fitch gave them a 'AAA' rating based on past loan
activity, the reserve requirements, and expected revenue from
loan repayments. The leveraging structure for Illinois is a hybrid
cash flow/reserve model. The bond indenture requires a
reserve fund equal to 50 percent of bond principal outstanding.
In addition, the program's pledged cash flows are expected to
provide  180 percent debt service coverage.
    Since 1988, Illinois EPA has made 364 CWSRF loans
totaling  $1.3 billion and 97 DWSRF loans for $163 million.
The state decided to leverage in response to strong demand
for loans that exceeded funding available through a  direct
loan program.
IN  THE  WORKS
EPA Releases New Clean Water
Financing Website
The New Clean Water Financing Website
http://www.epa.gov/own/cwfinance
In an effort to improve user accessibility, EPA launched an
overall plan to revise the visual design and organization of all
EPA web pages by July 2002.  As part of this agency-wide
revision effort, the Clean Water State Revolving Fund Branch
released a new, enhanced version of its Clean Water Financing
website.  This new website contains expanded information on
available funding resources, while incorporating all previous
information found on the original website.
     In addition,  users can now locate information specifically
geared for the CWSRF program by linking to the new Clean
Water State Revolving Fund website (http:www.epa.gov/owm/
cwfinance/cwsrf/). Information such as federal funding levels,
the National Information Management System reports, and
other important documentation is now available on this site.
Users will also find links to all 51 state financial and CWSRF
assistance websites, as well as newly designed sections for fact
sheets and local success stories organized by key topic area.
Examples include topic areas related to "Contamination
Cleanup and Remediation," "Nonpoint Source, Watershed
Protection, and Estuary," "Planning and Fund Management,"
and "Water Conservation and Reuse."

New SRF State Activity Updates
EPA has recently published three new  activity updates that
highlight innovative management of CWSRF programs. One
document, entitled Innovative Use of Clean Water State
Revolving Funds for Nonpoint Source Pollution, describes
some of the lending mechanisms that states have established for
nonpoint source lending programs. Case studies describe
Ohio's use of a linked deposit program, Massachusetts' devel-
opment of a pass-through loan program with local govern-
ments, and Missouri's use of a pass-through loan program
                                  CONTINUED ON PAGE 10

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                                               SRF
          IKS from}
with the Missouri Agriculture and Small Business
Development Authority.
* This document will be available on the new CWSRF website.
    A second document, entitled One-Stop Shopping in the
CWSRF Program, describes some of the ways that states have
coordinated water quality funding programs and offered one
point of contact for potential assistance recipients. Case
studies in this document highlight efforts in Arizona, Montana,
and Washington.
* This document will be available on the new CWSRF website.
    A third document, entitled Ohio's Restoration Sponsor
Program Integrates Point Source & Nonpoint Source
Projects, highlights the Water Resource Restoration Sponsor
Program, which is also described by Bob Monsarrat of Ohio
EPA under the State Activities and Trends section of this
newsletter.
* This document is currently available on the new CWSRF
website (http://www. epa.gov/owm/cwfinance/cwsrf/
innovations.htm).
                                   FAXBACK    FORM
                                           Please fax to EPA Headquarters:
           CWSRF PROGRAM (Attn: S. Platt) • 202-501-2403 or DWSRF PROGRAM (Attn: V. Blette) • 202-564-3757

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email:

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                                             SRF':
EVENTS
1. Association of State Drinking Water
  Administrators Seventeenth Annual Conference
  Location: Salt Lake City, UT
  Date: September 30-October 3, 2002
  Information: www.asdwa.org

2. National Association of Water Companies
  105th Annual Conference
  Location: Scottsdale, AZ
  Date: October 6-9, 2002
  Information: www.nawc.org

3. Association of Metropolitan Water Agencies
  Annual Meeting
  Location: San Juan, PR
  Date: October 27-30, 2002
  Information: www.amwa.net/features/meetings

4. Association of State and Interstate Water
  Pollution  Control Administrators with America's
  Clean Water Foundation World Watershed Summit
  Location: Washington, DC
  Date: October 30-November 1, 2002
  Information: www.asiwpca.org/events/yocw.html

5. American Society of Civil Engineers Civil
  Engineering Conference and Exposition
  Location: Washington, DC
  Date: November 3-7, 2002
  Information: www.asce.org/conferences/annual02

6. Association of Metropolitan Sewerage Agencies
  2002 Developments in Clean Water Law Seminar
  Location: Denver, CO
  Date: November 6-8, 2002
  Information: www.amsa-cleanwater.org/meetings

7. Council of Infrastructure Financing Authorities
  2002 SRF  Workshop
  Location: Phoenix, AZ
  Date: November 17-19, 2002
  Information: www.cifanet.org/conferences/conferences.html
                                                          SRF  LINKS
1.CWSRF/DWSRF@EPA
  Both SRFs maintain pages on the EPA website with
  information on the programs. Both sites contain guidance,
  policy documents, and contact lists for state and regional
  staff. The URLs are as follows:
  • CWSRF: www.epa.gov/owm/cwflnance
  • DWSRF: www.epa.gov/safewater/dwsrf.html
  The DWSRF site includes a link to a Local Drinking Water
  Information page, which has state by state information on
  drinking water systems and programs.  Where available,
  this page includes a link to state DWSRF programs.

2. National Associations
  • American Water Works Association: www.awwa.org
  • Association of Metropolitan Sewerage Agencies:
    www.amsa-cleanwater.org
  • Association of Metropolitan Water Agencies:
    www.amwa.net
  • Association of State Drinking Water
    Administrators: www.asdwa.org
  • Association of State and Interstate Water Pollution
    Control Administrators: www.asiwpca.org
  • Council of Infrastructure Financing Authorities:
    www.cifanet.org
  • National Association of Water Companies:
    www.nawc.org

3. State Programs
  Many SRF programs have websites that provide program
  information and application materials.  This newsletter
  places a spotlight on Michigan.
  • Michigan Department of Environmental Quality:
    www.michigan.gov/deq/l,l607,7-135-3307_
    3515—,00.html

For a complete list of links to all 51 state  financial and CWSRF
assistance websites, visit www.epa.gov/owm/cwfinance/cwsrf/
contacts.htm.


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                                                        SRF'

United States
Environmental Protection
Agency
Washington, DC 20460

Official Business
Penalty for Private Use
$300



           IN THIS  ISSUE,
           On the National Scene

           • From the Hill

           • Addressing the Challenge of the Arsenic Rule



           State Activities and Trends

           • Coordination of Environmental Reviews in Pennsylvania

           • Ohio's Water Resource Restoration Sponsor Program

           • Washington's InfmstructureVfSABASE

           • Michigan Completes Project with Simultaneous

             DWSRF and CWSRF Loans

           • Illinois Starts Leveraging their SRF Program
                             United States
                             Environmental Protection
                             Agency

                             Office of Water
                             (4101)

                             EPA-816-N-02-002
                             Summer 2002
In the Works - Report on Ongoing SRF Activities

• EPA Releases New Clean Water Financing Website

• New SRF State Activity Updates!



SRF Fax Back •  Events • SRF Links
                                    VV.iii-i

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