United States
Environmental Protection
Agency
Drinking Water State Revolving Fund
2009 Annual Report
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2009 Drinking Water State Revolving Fund Annual Report
Office of Water (4606M)
http:// www.water.epa.gov/drink
EPA 816-R-10-021
November 2010
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Drinking Water State Revolving Fund Annual Report 2009
Table of Contents
INTRODUCTION 4
AMERICA'S DRINKING WATER INFRASTRUCTURE: OVERVIEW OF
NEED 5
DWSRF STRUCTURE AND PROCESS 6
PROGRAM ACCOMPLISHMENTS OVERVIEW.., .. 7
ADDITIONAL 2009 DWSRF PROGRAM DETAILS 16
Supporting Communities 14
Projects Supported 17
Set-Asides 18
Financial Indicators 23
Financial Statements 29
STATE AGENCIES 34
DWSRF AT A GLANCE 36
ANNUAL FUND ACTIVITY 37
AMERICAN RECOVERY AND REINVESTMENT ACT 38
ARRA Background Summary 38
ARRA Implementation 39
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2009 Drinking Water State Revolving Fund Annual Report
INTRODUCTION
In 1996, Congress amended the Safe
Drinking Water Act (SOWA) to
establish the Drinking Water State
Revolving Fund (DWSRF). The goal of the
DWSRF program is to provide States with a
financing mechanism for ensuring safe
drinking water to the public. States can use
federal capitalization grant money to set up
an infrastructure funding account from
which financial assistance, mainly as loans,
is made available to public water systems.
Loans made under the DWSRF program
normally have interest rates between zero
percent and market rate and repayment
terms of up to 20 years. Loan repayments to
a state revolving fund are a continuing
source of funding for future projects. The
program places an emphasis on small and
disadvantaged communities and on
programs that emphasize prevention (e.g.,
capacity development, operator certification,
source water protection) as a tool for
ensuring safe drinking water.
2009 was a year of challenge and
accomplishment for the DWSRF. The
American Recovery and Reinvestment Act
of 2009 (ARRA) directed a special
supplemental appropriation of $2 billion to
the DWSRF to create and save jobs while
addressing urgently-needed drinking water
infrastructure investment needs. ARRA
recognized the exceptional record of the
DWSRF program as a vehicle for
accomplishing effective drinking water
infrastructure investment and called upon
the program to meet new and urgent
challenges.
ARRA created a number of important
special conditions for these $2 billion in
funds. States were required to provide at
least 50 percent of the funds as subsidy in
the form of principal forgiveness, negative
interest loans or grants. Furthermore, at
least 20 percent of each State's ARRA
allotment was to be directed to "green
projects," including green infrastructure,
energy or water efficiency, and
environmentally innovative activities. Most
significantly, the statute required that all
ARRA funds be secured within projects that
would be under construction or under
contract for construction by February 17,
2010, one year after ARRA's enactment.
Unlike the base program, States were not
required to provide the standard 20 percent
match.
In addition to the conditions listed above,
ARRA also contained requirements
concerning project materials and wage rates.
The statute mandated that all iron, steel and
manufactured goods used in projects funded
by ARRA be made in the United States (or
that they qualify for a waiver of this
requirement). It also required that ARRA
projects comply with Davis-Bacon
prevailing wage rate regulations.
Collectively, this suite of conditions
presented an exceptional challenge to EPA
and its State partners: to successfully
develop and implement guidance and
procedures to implement the special
requirements while ensuring that the funding
reached priority "shovel ready" projects by
February 17, 2010.
This report incorporates data from both the
DWSRF base and the ARRA programs.
Additional information specific to ARRA
can be found starting on page 39.
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Drinking Water State Revolving Fund Annual Report 2009
AMERICA'S DRINKING WATER INFRASTRUCTURE:
OVERVIEW OF NEED
The need for investment, upgrade and
improvement in the nation's drinking
water infrastructure has been well
documented and the existence of a large
backlog of "shovel ready" projects made
drinking water infrastructure a logical focus
ofARRA. The 2007 Drinking Water
Infrastructure Needs Survey and Assessment
(DWINSA) estimated the national drinking
water infrastructure need for the twenty year
period 2007-2026 at $334.8 billion ($16.74
billion annually), a nearly 70 percent
increase over the 1999 estimate of $198.2
billion (in 2007 dollars). About 60 percent
of this infrastructure need is associated with
pipe replacement, 22 percent with treatment
and the remaining with storage, source and
other needs. The 2002 Clean Water and
Drinking Water Infrastructure Gap Analysis
estimated the combined national need for
pipe replacement alone at $12 billion
annually by the year 2040.
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2009 Drinking Water State Revolving Fund Annual Report
DWSRF STRUCTURE AND PROCESS
The base DWSRF program provides
project financing assistance to
community water systems (CWSs)
and not-for-profit non-community water
systems. Assistance generally takes the
form of below market rate loans, although
States have the option of providing some
principal forgiveness or negative interest
loans to communities they consider to be
disadvantaged. The DWSRF is a partnership
between EPA and States and consists of
independent revolving loan funds in all 50
States and Puerto Rico. These State
DWSRFs are funded primarily through
annual federal grants, state matching funds,
loan repayments and interest earnings. The
power of the SRF concept lies in the
constant recycling of funds from an initial
EXHIBIT 1: Structure of the DWSRF
loan back into the program where they can
be loaned out for future projects. A unique
feature of the DWSRF program allows
States to reserve up to 31 percent of their
annual federal DWSRF grant under "set-
asides." These set-asides can be used to
fund a variety of State activities designed to
achieve the public health protection
objectives of SDWA. Each State uses set-
asides to complement its loan program by
funding proactive efforts, such as technical
assistance, training and other support related
to capacity development, operator
certification, source water protection and
related programs. For more detail on the
DWSRF structure and eligible projects, see
Exhibits 1 and 2 below.
EXHIBIT 2: Assistance hv Project Cateeorv in 2009
500 -
400 -
300 -
200 -
100 -
0 .-
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Drinking Water State Revolving Fund Annual Report 2009
PROGRAM ACCOMPLISHMENTS OVERVIEW
Program Highlights
Since the program's inception in 1997, the
States' DWSRFs have provided $16.2
billion in low-interest loans to public water
systems (see Exhibit 3) and have entered
into over 6,000 assistance agreements. In
2009, the DWSRF financed over 700
drinking water infrastructure projects,
providing $1.6 billion in funds. The
majority of these funds were allocated to
treatment, transmission and distribution
projects (see Exhibit 2).
Compliance assistance is a high priority for
the DWSRF program. In 2009 more than $1
billion of the $1.6 billion provided went to
projects to help systems remain in
compliance with SDWA regulations, while
over $0.5 billion and $134 million went to
help systems achieve compliance with
existing regulations and comply with new
regulations, respectively (see Exhibit 4).
EXHIBIT 3: Cumulative Assistance Available & Assistance Provided
B97
2QDO
2001
2)132
arcs
ax*
20B
2006
2007
2008
2009
New Funds Available -"-Assistance Provided
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2009 Drinking Water State Revolving Fund Annual Report
EXHIBIT 4: Assistance for Compliance with SDWA by Category, 2006-09
nFor Compliant Systems to Meet Future Requirements (Calculated)
For Compliant Systems to Maintain Compliance (Calculated)
DFor Non-Compliant Systems to Achieve Compliance (Calculated)
The program also maintained its
commitment to providing funding to
systems with the greatest demonstrated
need. Thirty-eight percent of all DWSRF
assistance funded in 2009 went to systems
serving 10,000 or fewer people. Over 250
assistance agreements in 2009 totaling over
$400 million were made to state-designated
disadvantaged communities. These systems
typically have fewer options for financing
infrastructure improvements, and DWSRF
funding enables them to make necessary
investments in the health of their
communities. (For further discussion on
assistance to disadvantaged communities,
please seepage 17.)
In addition to direct loans for infrastructure
projects, the four DWSRF set-asides provide
funding for state programs that help water
systems achieve optimum public health
protection. States use the set-asides to fund
State Public Water System Supervision
(PWSS), source water protection, capacity
development, technical assistance and other
important programs. In 2009, States
expended over $150 million in set-aside
funds, representing the highest single-year
total in the lifetime of the DWSRF (see
Exhibit 5). (For additional information on the
DWSRF set-asides, see page 21).
EXHIBITS: Cumulative Set-Aside Svendins Rate. 2003-2009
80.00%
75.00%
70.00%
65.00%
60.00%
55.00%
50.00%
2003
2004
2005
2006
2007
2008
2009
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Drinking Water State Revolving Fund Annual Report 2009
12 Years of Growth
Cumulative funds available through the
DWSRF exceeded $18 billion in 2009. In
2009 alone, over $2.5 billion in new funds
were available for projects, up from $1.8
billion in 2008 (see Exhibit 6). From 2006-
2008, annual funding has exceeded new
funds available (composed of annual
capitalization grants and State contributions),
compensating for the program's early years
when new funds were not immediately used.
DWSRF gross revenues, which are derived
from fees, investments, and repayments, have
also steadily increased over the past few
years. In 2009, total cumulative revenues
surpassed $5.6 billion (see Exhibit 7).
EXHIBIT 6: Total Annual Assistance vs. New Funds Available
$3,000,000,000
$2,500,000,000
$2,000,000,000
$1,500,000,000
$1,000,000,000
$500,000,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
-Total Annual Assistance
- New Funds Available for Assistance
EXHIBIT 7: Cumulative DWSRF Revenues from Operations and Repayments
1997
1998 1999 2000 2001
2002 2003 2004 2005 2006 2007 2008 2009
Cumulative Income from Fees
Cumulative Interest Earnings on Investments in DWSRF Fund
I Cumulative Interest Payments
Cumulative Principal Repayments
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2008 DWSRF Award Winners
The DWSRF Awards for Public Health Protection recognize projects that exemplify exceptional
creativity, effectiveness, and dedication to public health protection.
ME
VT
NH
MA
CT Rl
PR
US VI
REGION 1
> Orford Village District, NH: Developed plans to replace a
vulnerable ground water supply with bedrock wells and
provide increased storage capacity and reliable water
pressure.
> Mattapoisett River Valley Water District, MA: Developed
plans for a regional ultra-filtration water treatment facility
to address iron and magnesium contamination.
Towns of 'Newtown andLedyard, CT: Connected schools
with water supplies at risk of contamination to centralized
water systems.
Jamestown Water Division, Jamestown, RI: Met SDWA
microbial standards through construction of new membrane
filtration plant built nearby and using components of the old
plant.
REGION 2
> City of Cape May, NJ: Addressed threat of saltwater
intrusion and met SDWA standards through installation of
reverse osmosis water treatment technology, plant
upgrades, and construction of a new well.
REGION 3
> City of Wilmington, DE: Constructed an underground
storage tank, decreasing the contamination risk and amount
of chlorine needed for treatment.
Martingham Utilities Cooperative, Talbot County, MD:
Installed an adsorption filtering system to reduce treatment
costs and meet arsenic standards.
> Sandy Run Water Association/Freeland Borough
Municipal Authority, PA: Consolidated faulty mining
company drinking water systems with a regional drinking
water provider.
> Town ofCeredo, WV: Installed new water lines to improve
water efficiency, storage tanks, and a booster station to
replace a defective backup water supplier and meet SDWA
standards.
10
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Drinking Water State Revolving Fund Annual Report 2009
REGION 4
Harvest-Monrovia Water and Sewer Authority, Madison
County, AL: Constructed new storage tanks and water
treatment plant to counter deteriorating raw water quality.
> Collier County, FL: Replaced sources threatened by poor
surface water quality and saltwater intrusion with new
wells to be treated by reverse osmosis.
> City ofPascagoula, MS'. Constructed three reverse
osmosis/ozone treatment plants to treat water from existing
wells prone to saltwater intrusion.
> Neuse Regional Water and Sewer Authority, NC:
Constructed regional treatment plant and 77 miles of
transmission lines to help all Authority members maintain
compliance.
Lexington County Public Works, Lexington County, SC:
Consolidated small, struggling drinking water system with
that of a nearby town.
REGION 5
> Town of Marshall, IN: Planned and completed a project to
connect a small drinking water system with chronic
violations to a neighboring water system.
> Mount Carroll, IL: To meet radium standards, constructed
elevated storage tank and new wells, and upgraded existing
wells.
> Guernsey County Water System, OH: Created regional
water supply by connecting communities with high sulfur,
iron, and manganese to the county system.
REGION 6
> Greers Ferry Community Water System, AR: Installed an
ultrafiltration system that provides higher quality water at
same cost as conventional filtration while using less
chemicals and energy.
> Louisiana Water Company, Inc., New Iberia, LA: Drilled
new wells to address elevated arsenic levels and updated
treatment facility's clarifier, filter, and computer system.
> City of Santa Fe, NM: Addressed drought concerns by
engineering diversion of water from the Rio Grande and
building transmission lines and treatment facility.
> City of Eagle Pass, Maverick County, TX: Constructed
ultra-filtration treatment plant, upgraded distribution
systems, and purchased under performing water systems
which increased water efficiency.
11
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2009 Drinking Water State Revolving Fund Annual Report
REGION 7
> City ofClarinda, IA: Replaced treatment facility and
formed a partnership with Rural Water District.
> City of Hutchinson, KS: Constructed reverse osmosis
treatment plant to eliminate raw water volatile organic
compounds while reducing chloride levels in plant
residuals.
REGION 8
> City of Craig, CO: Replaced outdated and undersized
treatment facilities with an ultraviolet/sodium hypochlorite
on-site generation system.
> Upper/Lower River Road Water and Sewer District, Great
Falls, MT: Extended municipal water systems to small
community with poor raw water quality.
> City of Devils Lake, ND: Constructed new wells,
transmission mains for water efficiency, and treatment
plant following flood damage.
> Minnehaha Community Water Corporation, SD: Provided
regional solution to contaminated raw water by
constructing a new well field and treatment plant.
> Central Iron County Water Conservancy District, UT:
Planned, designed, and completed consolidation of four
troubled drinking water systems.
REGION 9
> City of Williams, AZ: Renovated treatment facility,
increasing capacity by 50 percent and improving water
quality.
Bear Valley, CA: Constructed a membrane filtration
facility, meeting turbidity standards and cutting costs.
Pahala andHonomu, County of Hawaii, HI: Conducted
exploratory well siting and water testing and constructed
two new wells and a reservoir.
> City of Winnemucca, NV: Efficiently rehabbed a deficient
water system taken over from private ownership using
sound financial management and full-cost pricing.
12
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Drinking Water State Revolving Fund Annual Report 2009
REGION 10
> City of Castleford, ID: Constructed a new well, water lines,
and treatment facility to address elevated contaminant
levels.
> Pasadena Park, WA: Replaced water main losing up to one
million gallons per day and posing a severe cross
contamination threat.
Carson City, NV
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2009 Drinking Water State Revolving Fund Annual Report
ADDITIONAL 2009 DWSRF PROGRAM DETAILS
Supporting Communities
Population Served
In 2009, 92 percent of DWSRF
assistance agreements were awarded to
712 community water systems (CWSs)
which served a combined 46 million
Americans, equating to 16 percent of the
total population served by CWSs (see
Exhibit 8).
EXHIBIT 8: Annual Percent of Population Served by CWSs That Received DWSRF
Assistance
W
C
o
is
3
Q.
8.
199?
1998 1999 2000 2001 2002 2003 2001 2005
2006 200? 2008 2009
14
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Drinking Water State Revolving Fund Annual Report 2009
Needs, Assistance by System size
The 2007 DWINSA indicated that
systems serving 10,000 or fewer persons
account for 31 percent of the 20-year
drinking water infrastructure need in the
United States (see Exhibit 9).
Cumulatively, the percentage of
DWSRF funds that go to these small
systems is over 38 percent. This level of
support demonstrates the program's
dedication to assisting small systems
which have fewer internal capabilities
than their larger counterparts to access
other sources of funding.
EXHIBIT 9: Comparison of Total Needs and Cumulative DWSRF Assistance Provided
by System Size
Infrastructure Needs by System Size
I Population < 10,000
I Population > 10,000
DWSRF Assistance by System Size
I Population < 10,000
I Population > 10,000
15
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2009 Drinking Water State Revolving Fund Annual Report
Assistance to Disadvantaged Communities
States electing to provide disadvantaged
assistance under the DWSRF establish
their own economic criteria to identify
eligible communities. States generally
rank projects for these communities
higher on their project priority lists and
offer them relief options such as longer
repayment terms, lower interest rates
and/or principal forgiveness.
In 2009, the DWSRF provided over
$412 million in infrastructure loans and
financing to 263 disadvantaged
communities serving a population of
over 3 million, the largest annual amount
of disadvantaged assistance since the
DWSRFs inception (see Exhibit 10).
Cumulatively, the DWSRF has provided
over $3 billion in assistance to these
disadvantaged communities.
EXHIBIT 10: Annual Assistance to Disadvantaged Communities
<&
] Annual Assistance to Disadvantaged Communities
-Annual Assistance Agreements with Disadvantaged Communities
16
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Drinking Water State Revolving Fund Annual Report 2009
Projects Supported
Type of Need vs. Projects Funded
Treatment projects account for 22
percent of the total national drinking
water infrastructure need. Forty-three
percent of the DWSRF assistance was
allocated to such projects in 2009 (see
Exhibit 11). This reflects the program's
emphasis on public health protection.
Distribution and transmission projects
account for 60 percent of the total
national need and received about 40
percent of the DWSRF assistance in
2009. Water systems are more likely to
fund distribution system projects on a
pay-as-you-go basis or with cash
reserves, funding a fixed amount of
rehabilitation and replacement annually.
Treatment projects, for the most part, are
more complicated and expensive, and
have a greater impact on public health
protection.
EXHIBIT 11: Type of Need vs. Projects Funded by Project Category in 2009
Percentage of Need
(from 2007 DWINSA)
Percentage of Assistance
(in 2009)
11 %
6%
22%
4%
13%
9%
60%
37%
37%
nTransmission &
Distribution Treatment n Source n Storage Other
17
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2009 Drinking Water State Revolving Fund Annual Report
Set-Asides
Overview
States can reserve up to 31 percent of
their federal capitalization grant for
programs other than infrastructure
project loans. Each of the four set-asides
Small Systems Technical Assistance,
Administrative and Technical
Assistance, State Program Management,
and Loan Assistance and Other State
Programs - assist the States to support
critical drinking water programs. Since
2004, States have consistently increased
the number of set-aside dollars being
expended or committed. In 2009, States
spent a record $154 million from their
set-asides (see Exhibit 12).
EXHIBIT 12: Cumulative Set-Asides Reserved and Expended
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
I Cumulative Set-Aside Funds Reserved
I Cumulative Set-Aside Funds Expended
18
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Drinking Water State Revolving Fund Annual Report 2009
Small Systems Technical Assistance Set-Aside
For small drinking water systems
serving 10,000 persons or less, States
can reserve up to 2 percent of their
federal capitalization grant to fund
programs supporting such systems.
Over $163 million has been awarded to
fund programs under this set-aside and
these programs have provided 215,000
instances of support (e.g., site visits,
technical assistance, training, etc.) to
small systems. Since 2006, States have
spent over $14 million per year on this
set-aside (see Exhibit 13).
EXHIBIT 13: Small Systems Technical Assistance Set-Aside: Annual Amount Awarded
and Expended
$18
= $15
$12
$9
$6
$3
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Awarded
Expended
19
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2009 Drinking Water State Revolving Fund Annual Report
Administrative and Technical Assistance Set-Aside
States can reserve up to 4 percent of
their capitalization grant for
administrative costs including assisting
water systems in applying for DWSRF
loans. From 2006 to 2008, States
expended more from the Administrative
and Technical Assistance set-aside than
the amount they set aside each year (see
Exhibit 14). In 2009, States expended
over $30 million from this set-aside.
EXHIBIT 14: Administrative and Technical Assistance Set-Aside: Annual Amount
Awarded and Expended
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Awarded Expended
20
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Drinking Water State Revolving Fund Annual Report 2009
State Program Management Set-Aside
States can reserve up to 10 percent of
their federal capitalization grant for their
Public Water System Supervision
(PWSS) programs, such as source water
protection, capacity development and
operator certification. Since its
inception, the total amount expended
under this set-aside is over $448 million.
Since 2006, States, on average, spent
over $49 million annually for State
PWSS program management activities
(see Exhibit 15). In 2009, States spent
nearly $65 million of their Program
Management set-aside funds.
EXHIBIT 15: State Program Management Set-Aside: Annual Amount Awarded and
Expended
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Awarded
Expended
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2009 Drinking Water State Revolving Fund Annual Report
Local Assistance and Other State Programs Set-Asides
States can reserve up to 15% of their
federal capitalization grant (although no
more than 10% for any one activity) to
provide loans for land acquisition or
conservation easements for protection of
source waters, provide loans for the
implementation of voluntary, incentive-
based source water quality protection
measures, assist PWSs as part of a
Capacity Development Strategy, and
assist PWSs with wellhead
protection.
Since 1997, States have spent almost
$370 million under this set-aside,
including over $43 million in 2009 (see
Exhibit 16).
EXHIBIT 16: Local Assistance and Other State Programs Set-Aside: Annual Amount
Awarded and Expended
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Awarded
Expended
22
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Drinking Water State Revolving Fund Annual Report 2009
Financial Indicators
The DWSRF program tracks many
financial indicators. Key indicators in
this report include: contributions, other
sources of contributions, federal and
state return on investment, and
assistance versus contribution.
Contributions
After adjusting for transfers with the
Clean Water State Revolving Fund
(CWSRF) program and set asides, the
Federal Government has contributed
nearly $9.5 billion to the DWSRF since
the program's inception. States have met
their 20 percent match requirements,
cumulatively contributing over $2.1
billion to their revolving funds (see
Exhibit 17). In 2009, over $1.7 billion
was added to the DWSRF from both
sources.
EXHIBIT 17: Cumulative Federal and State Contributions to the DWSRF
$5
1997
1QQQ onnn onm onn? onrrc onnd OIYK onnK onn? onns on
i yyy zuuu zuui zuuz zuuo zuui zuuo zuuu zuui zuuo zu
I Cumulative Net Federal Contributions I Cumulative State Contributions
23
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2009 Drinking Water State Revolving Fund Annual Report
Other Sources of Contributions
In addition to Federal and State
contributions, funds also come from
principal and interest payments, as well
as fees on DWSRF loans. These
repayments are a major component of
maintaining the funds in perpetuity.
Since 2006, over 30 percent of the
contributions came from revolving (i.e.,
"recycled") funds, demonstrating the
long-term financial capability of the
DWSRF (see Exhibit 18). The decrease
in 2009 is driven by the size of the
ARRA funds.
EXHIBIT 18: Percentage of Annual Assistance from Recycled Funds
$2,500
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
^^B Total Annual Assistance
^^H Recycled Funds (Annual Principal and Interest Payments and Income from Fees)
+ Percentage of Assistance Provided from Recycled Funds
24
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Drinking Water State Revolving Fund Annual Report 2009
Federal Return on Investment
Return on investment (ROI) is a
comparison between funds drawn from
the federal treasury and total project
disbursements. The cumulative federal
ROI from the DWSRF reached 182
percent in 2009, meaning $1.82 has been
spent on infrastructure for every $1
invested by Congress (see Exhibit 19).
Nearly $14 billion in actual
infrastructure improvements have been
funded at a federal cost of only $8.2
billion since 2002.
EXHIBIT 19: Cumulative Disbursements vs. Cumulative Federal Outlays and Federal
ROI
$16
200%
190%
180%
170%
2002
2003
Cumulative Disbursements ^H Cumulative Outlays Cumulative Federal Return on Investment
25
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2009 Drinking Water State Revolving Fund Annual Report
State Return on Investment
Since State contributions to the DWSRF
are much less than the Federal
Government, States have a higher ROI.
In 2009, the States' ROI on DWSRF
investments was nearly $5.50 per State
dollar invested (see Exhibit 20). 2009
did see a slight decrease in
disbursements compared to previous
years.
EXHIBIT 20: Cumulative Disbursements vs. Cumulative State Investments and State
ROT
550%
450%
150%
2002
2003
2004
2005
2006
2007
2008
2009
Cumulative Disbursements ^B Cumulative State Investments Cumulative State Return on Investment
26
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Drinking Water State Revolving Fund Annual Report 2009
Assistance vs. Contributions
Comparing loan assistance to federal
capitalization grants offers a different
perspective in analyzing return on
investment. As of 2009, nearly $9.5
billion of cumulative Federal
contribution to the loan fund has yielded
more than $16 billion in completed,
ongoing and planned infrastructure
improvements, representing more than a
180 percent return on the federal
investment (see Exhibit 21). 2009 saw a
notable jump in federal contributions
due to ARRA.
EXHIBIT 21: Cumulative Assistance vs. Annual Net Federal Contributions
2008 2009
Cumulative Assistance ^Cumulative NetFederal Contributions Assistance Provided as a % of Capitalization Grant
27
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2009 Drinking Water State Revolving Fund Annual Report
Assistance vs. Disbursements
The DWSRF loan is comparable to a
line of credit that a system can draw on
as it progresses on the project timeline
after a loan agreement is made with the
system. Systems are reimbursed for
eligible project expenses. In the SRF
program, these reimbursements are
referred to as "project disbursements."
"Assistance" means that money is
committed when agreements are signed,
and "disbursement" refers to the
expenditure of money. Disbursements
naturally lag behind assistance
agreements as projects move from
planning to groundbreaking to
construction. More than $1.6 billion in
committed funds were disbursed in
2009. Since 1997, States have disbursed
over $13 billion of the $16 plus billion
committed (see Exhibit 22).
EXffTRTT 22: Cumulative DWSRF Assistance Provided vs. Disbursements
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Assistance Disbursements
28
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Drinking Water State Revolving Fund Annual Report 2009
Financial Statements
The financial statements below are best
considered as informal financial reports
(see Exhibit 25).
"Funds Available" shows the Federal
contribution and State matching
activities. It also shows the cash drawn
from the fund and set-asides.
"Income Statement," which includes
revenues, expenses, and earnings,
describes the operating and non-
operating revenues and expenses of the
funds at the end of the fiscal year.
Operating revenues and expenses
include interest from fund investments
and DWSRF loans, as well as expenses
from bond interest and amortized bond
issuance. Non-operating revenues and
expenses include state and federal
contributions and transfers into and out
of the DWSRF.
"Net Assets" describes the DWSRF's
assets and liabilities at the end of the
fiscal year. It shows both financial and
capital assets, including grant funds that
have been drawn from the federal
treasury but not including total grant
awards. Liabilities are either current or
long-term liabilities, such as leveraged
bonds and match bonds. The set-aside
funds have no liabilities.
"Cash Flow" provides a detailed
accounting of the flow of cash into and
out of the DWSRF programs over the
fiscal year. Cash flows into the fund
include loan principal repayments,
interest received on loans, and
contributions from states. Flows out of
the fund include loan disbursements to
be repaid, bond issuance expense, and
loan principal forgiven.
29
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2009 Drinking Water State Revolving Fund Annual Report
EXHIBIT 25: Financial Statements for D WSRF and its Set-asides fS millions}
Financial Information for DWSRF Fund (FY2009)
(Millions
of Dollars)
2006
2007
2008
2009
Funds Available
Income
Annual Fund Activity
Federal Capitalization Grants
State Matching Funds
New DWSRF Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
New Set-Aside Funds Available for Assistance
Project Disbursements from the Fund
Cash Draws from Federal Capitalization Grants (Fund)
Cash Draws from Set-Asides
Cumulative Fund Activity
Federal Capitalization Grants
State Matching Funds
DWSRF Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Set-Aside Funds Available for Assistance
Project Disbursements from the Fund
Cash Draws for Fund
Cash Draws for Set-Asides
Statement
Operating Revenues
Interest on Fund Investments
Interest on DWSRF Loans
Total Operating Revenues
Operating Expenses
Bond Interest Expense
DWSRF Funds Used for Refunding
Amortized Bond Issuance Expense
Total Operating Expenses
Nonoperating Revenues and Expenses
Federal Contribution
State Contributions
777.3
167.6
1,632.7
1,663.7
134.6
1,472.5
744.8
123.4
7,343.1
1,754.7
12,762.5
10,993.6
1,199.4
8,482.1
4,682.2
822.0
129.5
206.0
335.5
169.6
11.5
2.4
183.5
744.8
118.2
792.4
114.4
1,610.4
1,653.7
124.5
1,667.4
809.2
129.6
8,135.5
1,869.1
14,372.9
12,647.3
1,313.9
10,149.5
5,491.4
951.6
160.5
241.0
401.5
181.8
0.0
2.6
184.5
809.2
95.0
836.1
146.8
1,773.7
1,965.6
150.9
1,625.1
781.6
142.9
8,971.6
2,019.9
16,146.6
14,612.9
1,457.8
11,774.6
6,273.0
1,094.5
151.8
260.3
412.1
193.4
12.0
2.7
208.2
781.6
119.0
1,705.6
169.4
2,543.8
1,590.7
148.9
1,611.6
759.1
154.3
10,677.1
2,189.1
18,690.8
16,203.6
1,605.8
13,386.2
7,032.1
1,248.8
105.8
302.8
408.6
211.1
0.0
3.0
214.1
759.1
128.4
30
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Drinking Water State Revolving Fund Annual Report 2009
Cash Flows
Loan Forgiveness Expenses
Transfers from (to) CWSRF
Total Nonoperating Revenues and Expenses
Increase (decrease) in Net Assets
Net Assets
Beginning of Year
End of Year
Operating Activities
Loan Disbursements to be Repaid
Loan Principal Forgiven
Loan Principal Repayments
Interest Received on Loans
Contributions from States
Cash Draws from Federal Capitalization Grants
Total Cash Flows from Operations
Noncapital Financing Activities
Bond Issuance Expense
Interest Paid on Leveraged and State Match Bonds
DWSRF Funds Used for Refunding
Principal Repayment of Leveraged Bonds
Cash Flows
Principal Repayment of State Match Bonds
State Match Bond Proceeds
Cash Received from Transfers with CWSRF
Gross Leveraged Bond Proceeds
Total Cash Flows from Non-Capital Financing Activities
from Capital and Related Financing Activities
Investing Activities
Interest Received on Fund Investments
Deposits to Debt Service Reserve for Leveraged Bonds
Total Cash Flows from Investing Activities
Net Increase (Decrease) in Cash and Cash
Equivalents
Beginning Balance - Cash and Cash Equivalents
Ending Balance - Cash and Cash Equivalents
(42.9)
20.0
840.2
992.2
5,680.8
6,673.0
(1 ,429.6)
(42.9)
354.9
206.0
118.2
744.8
(48.5)
(7.4)
(169.6)
(11.5)
(116.9)
(19.2)
49.3
20.0
563.8
308.6
0
129.5
(139.3)
(9.8)
250.2
2,475.6
2,725.8
(30.4)
12.7
886.4
1,103.5
6,673.0
7,776.5
(1,637.1)
(30.4)
454.4
241.0
95.0
809.2
(67.8)
(4.5)
(181.8)
0.0
(145.0)
(24.3)
19.4
12.7
403.3
79.6
0
160.5
(105.3)
55.2
67.1
2,725.8
2,792.8
(40.6)
11.4
871.4
1,075.3
7,776.5
8,851.8
(1,584.5)
(40.6)
529.0
260.3
119.0
781.6
64.7
(7.3)
(193.4)
(12.0)
(164.9)
(29.1)
27.8
11.4
533.0
165.5
0
151.8
(76.2)
75.6
305.8
2,792.8
3,098.6
(100.7)
(6.7)
780.0
974.6
8,851.8
9,826.3
(1,510.9)
(100.7)
608.0
302.8
128.4
759.1
186.6
(5.8)
(211.1)
0.0
(190.9)
(56.3)
41.1
(6.7)
342.4
(87.3)
0
105.8
(77.2)
28.6
127.9
3,098.6
3,226.6
Balance Sheet
Assets
Cash and Cash Equivalents
Debt Service Reserve - Leveraged Bonds
Loans Outstanding
Unamortized Bond Issuance Expenses
Total Assets
2,725.8
1,227.1
6,935.8
53.0
10,941.6
2,792.8
1,332.3
8,118.5
54.8
12,298.5
3,098.6
1,408.5
9,174.0
59.4
13,740.6
31
3,226.6
1,485.7
10,077.0
62.2
14,851.5
-------
2009 Drinking Water State Revolving Fund Annual Report
Liabilities
Net
Assets
Match Bonds Outstanding
Leveraged Bonds Outstanding
Total Liabilities
Federal Contributions
State Contributions
Transfers - Other SRF Funds
Other Net Assets
306.7
3,962.0
4,268.7
4,682.2
1,387.6
374.8
228.3
301.8
4,220.2
4,522.0
5,491.4
1,482.6
387.5
415.0
300.6
4,588.3
4,888.8
6,273.0
1,601.5
398.9
578.3
285.4
4,739.8
5,025.2
7,032.1
1,729.9
392.2
672.2
Total Net Assets
Total Liabilities and Net Assets
6,673.0 7,776.5 8,851.8 9,826.3
10,941.6 12,298.5 13,740.6 14,851.5
Financial Information for the DWSRF Set-Asides (FY2009)
(Millions of Dollars) 2006 2007
Income Statement
Operating Revenues
2008
2009
Interest on 1452(k) Loan Account Investments
Interest on 1452(k) Loans
Total Operating Revenues
Operating Expenses
Administrative Expenses Under the 4% Set-Aside
Expenses Under the 2% Set-Aside, Small Systems
Technical Assistance
Expenses Under the 10% Set-Aside, State Program
Management
Grants made under the 1452(k) Set-Aside
Total Expenses
Nonoperating Revenues and Expenses
Federal Contribution
Total Nonoperating Revenues (Expenses)
Increase (decrease) in Net Assets
Net Assets
Beginning of Year
End of Year
Cash Flows
Operating Activities
Federal Contribution
1452(k) Loan Disbursements Made to Borrowers
1452(k) Loan Principal Repayments
Interest Received on 1452(k) Loans
Administrative Expenses Under the 4% Set-Aside
0.06
0.19
0.25
29.9
14.1
49.2
29.9
123.1
123.4
123.4
0.5
6.4
7.0
123.4
(0.3)
0.7
0.2
(29.9)
0.11
0.15
0.26
31.7
15.2
50.0
31.8
128.7
129.6
129.6
1.1
7.0
8.1
129.6
(0.9)
0.7
0.1
(31.7)
0.11
0.24
0.35
29.5
15.2
61.4
35.8
141.8
142.9
142.9
1.4
8.1
9.5
142.9
(1.1)
0.8
0.2
(29.5)
2.41
0.25
2.66
30.4
15.6
64.9
41.7
152.7
154.3
154.3
4.3
9.5
13.8
154.3
(1.6)
1.1
0.2
(30.4)
32
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Drinking Water State Revolving Fund Annual Report 2009
Expenses Under the 2% Set-Aside, Small Systems
Technical Assistance
Expenses Under the 10% Set-Aside, State Program
Management
Grants made under the 1452(k) Set-Aside
Total Cash Flows from Operating Activities
Noncapital Financing Activities
Net Cash Provided by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities
Investing Activities
Interest Earnings on 1452(k) Loan Account Investments
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
Balance Sheet
Assets
Cash and Cash Equivalents
Loans Outstanding
Total Assets
Liabilities
Total Liabilities
Net Assets
Federal Contributions
Other Net Assets
Total Net Assets
Total Liabilities & Net Assets
(14.1)
(49.2)
(29.9)
0.9
0
0
0.06
0.1
1.0
1.5
2.5
2.5
4.4
7.0
0
822.0
(815.1)
7.0
7.0
(15.2)
(50.0)
(31.8)
0.8
0
0
0.11
0.1
0.9
2.5
3.4
3.4
4.7
8.1
0
951.6
(943.5)
8.1
8.1
(15.2)
(61.4)
(35.8)
1.1
0
0
0.11
0.1
1.2
3.4
4.6
4.6
4.9
9.5
0
1,094.5
(1,085.0)
9.5
9.5
(15.6)
(64.9)
(41.7)
1.4
0
0
2.41
2.4
3.8
4.6
8.4
8.4
5.4
13.8
0
1,248.8
(1,235.0)
13.8
13.8
33
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2009 Drinking Water State Revolving Fund Annual Report
STATE AGENCIES
The State Agencies shown below are responsible for implementing the DWSRF program and
ARRA, with the lead agency of a State listed first.
REGION 1 >
Connect!cut Department of Public
Health
Connecticut Department of
Environmental Protection
Connecticut Office of the Treasurer
Maine Department of Human Services
Maine Municipal Bond Bank
Massachusetts Water Pollution
Abatement Trust
Massachusetts Division of Municipal
Services
Massachusetts Division of Watershed
Management/Drinking Water Program
New Hampshire Department of
Environmental Services
Rhode Island Clean Water Finance
Agency
Rhode Island Department of Health
Vermont Water Supply Division
Vermont Facilities Engineering Division
>
REGION 2
New Jersey Department of
Environmental Protection
New Jersey Environmental
Infrastructure Trust
New York Department of Health
New York Environmental Facilities
Corporation
Puerto Rico Department of Health
Government Development Bank for
Puerto Rico/Puerto Rico Infrastructure
Financing Authority
REGION 3
Delaware Health and Social Services
Delaware Department of Natural
Resources and Environmental Control
Maryland Water Quality Financing
Administration
Maryland Water Management
Administration
Pennsylvania Infrastructure Investment
Authority
Pennsylvania Department of
Environmental Protection
Virginia Department of Health, Office of
Drinking Water
Virginia Resources Authority
West Virginia Department of Health and
Human Resources
West Virginia Water Development
Authority
REGION 4
Alabama Department of Environmental
Management
Florida Department of Environmental
Protection
Georgia Environmental Facilities
Authority
Georgia Environmental Protection
Division
Kentucky Infrastructure Authority
Kentucky Division of Water, Water
Infrastructure Branch, Energy and
Environment Cabinet
Mississippi State Department of Health
Mississippi State Tax Commission
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
34
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Drinking Water State Revolving Fund Annual Report 2009
REGION 5
> Illinois Environmental Protection
Agency
> Indiana Finance Authority
Indiana State Revolving Fund Loan
Program
Michigan Department of Environmental
Quality
> Michigan Municipal Bond Authority
> Minnesota Public Facilities Authority
> Minnesota Department of Health
Ohio Environmental Protection Agency
> Ohio Water Development Authority
> Wisconsin Department of Natural
Resources
> Wisconsin Department of
Administration
REGION 6
Arkansas Natural Resources
Commission
> Arkansas Department of Health
Louisiana Department of Health and
Hospitals
New Mexico Finance Authority
> New Mexico Environment Department
> Oklahoma Department of Environmental
Quality
> Oklahoma Water Resources Board
Texas Water Development Board
> Texas Commission on Environmental
Quality
REGION 7
> 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
REGION 8
> Colorado Water Resources and Power
Development Authority
Colorado Water Quality Control
Division
Colorado Department of Local Affairs -
Division of Local Government
> Montana Department of Environmental
Quality
Montana Department of Natural
Resources and Conservation
North Dakota Department of Health
North Dakota Public Finance Authority
> South Dakota Department of
Environment and Natural Resources
> Utah Department of Environmental
Quality, Division of Drinking Water
Wyoming Office of State Lands and
Investments
Wyoming Department of Environmental
Quality
> Wyoming Water Development Office
REGION 9
> Arizona Water Infrastructure Finance
Authority
California Department of Public Health
> Hawaii Department of Health
Hawaii Safe Drinking Water Branch
> Hawaii Wastewater Branch
> Nevada Division of Environmental
Protection
> Nevada Office of Financial Assistance
REGION 10
> Alaska Department of Environmental
Conservation/Division of Environmental
Health
Idaho Department of Environmental
Quality
Oregon Health Services, Department of
Human Services
> Oregon Economic and Community
Development Department
> Oregon Department of Environmental
Quality
Washington State Department of Health
35
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DWSRFATAGLANCE
Drinking Water SRF Facts - 2009
Funds Available for Projects
(Billions of Dollars) 2009 1997-2009
Total Funds 2.5 18.7
Federal Cap Grants 1,7 10.7
State Match 0.2 2.2
Net Leveraged Bonds 0.3 4.0
Net Loan Principal Repaid 0.4 1.9
Net Interest Earnings 0.1 1.1
Net Transfers with CWSRF (0.007) 0.4
Less Set-Asides (0.2) (1.6)
Number of Loans: 2009 = 712; Total = 6,665
Return on Federal Investment = 1 .83
SRF Assistance as a % of Funds Available = 87%
Interest Rate in 2009 = 2.3% (Market = 5%)
20 States Leverage Over the Life of the Program
25 States Issue Match Bonds
46 States Conduct Separate Audits
38 States Fund Separate Grant / Loan Programs
36 States Have Disadvantaged Assistance Programs
Assistance Provided to Projects
(Billions of Dollars) 2009 2009 1997-
ARRA 2009
Total Population Served 0.1 1.6 16.2
<10.001 0.05 0.6 6.2
10,001-100,000 0.05 0.6 6.3
>100,Q01 0,03 0.4 3.7
Project Assistance 1.6 16.2
Planning and Design 0.009 0,1
Treatment 0.6 6.9
Transmission and Distribution 0.6 5.6
Source 0,1 0.9
Storage 0.2 1.7
Purchase of Systems 0.006 0.2
Restructuring 0.009 0.06
Land Acquisition 0.006 0.05
Other 0.04 0.6
(Billions of Dollars)
Cumulative Program Indicators
Disadvantaged Assistance Loans
Loans with Principal Forgiveness
Loans to Communities with < 10,000 People
Funds Disbursed as a % of Assistance Provided
Set-Aside Spending Rate
Outlays as a % of Federal Grant
Set-Asides
All Set-Asides
Administrative
Small Systems
State Program Management
Local Assistance & Other State Programs
$ Billions #ofloans
3.1 1,848
0.9 781
6.2 4,789
83%
78%
78%
%of$ % of Loans
19%
6%
38%
28%
12%
72%
1997-
2009
1.6
0.4
0.2
0.5
O.S
%of
Grants
15%
3.5%
1.5%
5%
5%
36
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Drinking Water State Revolving Fund Annual Report 2009
ANNUAL FUND ACTIVITY
DWSRF National Performance Summary
Statement
Fund Activity - Estimated ($ Millions)
Annual Fund Activity
Federal Capitalization Grants
State Matching Funds
New DWSRF Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Number of Loans/Projects Financed
New Set-Aside Funds Available for Assistance
Project Disbursements from the Fund
Cash Draws from Federal Capitalization Grants
(Fund)
Cash Draws from Set-Asides
Cumulative Fund Activity
Federal Capitalization Grants
State Matching Funds
New DWSRF Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Number of Loans/Projects Financed
New Set-Aside Funds Available for Assistance
Project Disbursements from the Fund
Cash Draws from Federal Capitalization Grants
(Fund)
Cash Draws from Set-Asides
2009
$1,705.60
$169.40
$2543.79
1,473.30
712/742
$148.90
$1,611.60
$913.30
$154.20
$10,677.10
$2,189.10
$18,690.40
16,203.60
6665/6905
$1,671.40
$13,386.16
$8,280.80
$1,256.20
2008
$836.05
$146.01
$1773.65
1,781.96
609/629
$150.90
$1,625.01
$786.20
$138.27
$8,971.57
$2,017.75
$16,146.16
14,612.88
5,955/6,181
$1,504.02
$11,776.63
$6,273.30
$138.27
2007
$792.39
$114.39
$1,609.35
1,518.82
579/601
$124.59
$1,667.42
$808.70
$130.27
$8,135.51
$1,871.74
$14,372.97
12,647.25
5,344/5,552
$1,371.81
$10,149.49
$5,487.10
$963.40
37
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2009 Drinking Water State Revolving Fund Annual Report
AMERICAN RECOVERY AND REINVESTMENT ACT
ARRA Background Summary
History of ARRA
On February 13, 2009, Congress
passed the American Recovery
and Reinvestment Act of 2009
and the President signed it into law on
February 17,2009.
ARRA provided an
additional $2 billion
appropriation for the
DWSRF Program.
The law emphasized
funding high
priority projects that
were ready to
expeditiously
proceed to
construction. In
essence ARRA
created a special
DWSRF program
within the larger
existing base
DWSRF program.
The special ARRA program had unique
features that clearly set it apart from the
base DWSRF program. Capitalization
grants made to the States with ARRA
dollars reflected these unique features as
grant conditions. States had only one
year from February 17, 2009 to commit
all the ARRA dollars they received to
projects that were under construction or
under contract for construction. No
State match was required for ARRA
capitalization grants. States were
required to use at least 50% of their
ARRA dollars to provide additional
subsidies to projects in the form of
principal forgiveness, negative interest
rates, or grants. Additionally, States
were required to direct at least 20% of
their ARRA dollars to projects offering
water or energy efficiency improvements
or other "green" benefits.
38
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Drinking Water State Revolving Fund Annual Report 2009
Brief Summary of ARRA Requirements
All projects receiving ARRA funds were
required to meet the following
requirements:
> All ARRA funds in projects under
construction, or under contract for
construction by February 17, 2010 in
all States and Puerto Rico.
At least 50 percent of ARRA funds
used to provide additional
subsidization such as grants,
principal forgiveness or negative
interest rate loans.
At least 20 percent of ARRA funds
used for four types of "green"
projects:
1) Green infrastructure
2) Water efficiency improvements
3) Energy efficiency
improvements
4) Environmentally innovative
activities
All iron, steel and manufactured
goods incorporated into projects
receiving any ARRA funds must be
produced in the United States unless a
waiver is received from EPA.
All laborers and mechanics working
on projects funded by ARRA must be
paid in accordance with the Davis-
Bacon prevailing wage rates.
All projects receiving ARRA Funds
report their progress through EPA.
39
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2009 Drinking Water State Revolving Fund Annual Report
ARRA Implementation
PROJECT: City of Palmer - Gulkana Area Water & Street Improvements
ENGINEER: Hattenburg Dilley & Linnell, LLC _-
CONTRACTOR: North Star Paving & Construction, Inc.
Total Project Cost: $3,500,000
Financed by:
Alaska Department of Environmental Conservation,
under the American Recovery and Reinvestment Act of 2009
SRF Programs: Alaska Drinking Water Fund
institution is an equal opportunity provider.
i .A
Additional Subsidy
In order to receive ARRA funding, each
State was required to use at least 50
percent of its capitalization grant to
provide additional funding for eligible
projects in the form of grants, principal
forgiveness, negative interest loans or
any combination of these. This subsidy
could be provided to any water system.
The remainder of the capitalization grant
could be used as the standard revolving
loan. The DWSRF averaged 70 percent
nationally for additional subsidy.
The base DWSRF program provides
States the option of using up to 30
percent of a capitalization grant to
provide additional subsidy (principal
forgiveness or negative interest) to State
defined disadvantaged communities.
ARRA required States to provide at least
50% of their ARRA assistance as
additional subsidy, included grants as a
form of additional subsidy, and did not
tie additional subsidy to status as a
disadvantaged community.
40
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Drinking Water State Revolving Fund Annual Report 2009
Green Project Reserve (GPR)
EPA developed special guidance for the
GPR to ensure proper implementation of
this new provision. The Reserve's 20
percent "floor" required States to solicit
for these special projects and/or identify
"green" elements in other projects. The
DWSRF averaged 29 percent nationally
for the GPR.
Examples of GPR projects include: the
installation of high-efficiency pumps,
replacement or rehabilitation of leaky
pipes and installation of alternative
energy sources on site. The number of
GPR projects totaled 519 with a value of
over $540 million (see Exhibit 26).
EXHIBIT 26 - GPR Funding and Project Types by EPA Region
Water Efficiency
Energy Efficiency
Environmentally
Innovative
Green Infrastructure
& Other
g£ . ««« »«»
III III
41
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2009 Drinking Water State Revolving Fund Annual Report
Davis-Bacon
ARRA required the use of
Davis-Bacon Federal
prevailing wage rates for all
projects funded wholly or
partially with ARRA funds.
To help inform applicants
and ensure correct
implementation, EPA and the
States conducted workshops
and developed procedures,
checklists and other
guidance.
Buy American
Unless a waiver is granted by the EPA
Administrator, ARRA required all
projects funded wholly or partially with
ARRA money to use iron, steel and
manufactured goods made in the United
States. Thus far, EPA has granted four
national waivers and 26 project specific
waivers for drinking water. EPA
conducted numerous webinars and
training courses to inform states and
borrowers on ways to comply with Buy
American requirements.
42
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Drinking Water State Revolving Fund Annual Report 2009
ARRA Reporting
EPA guidance required States to report on the use of the ARRA funds on a weekly basis
through February 17, 2010. EPA and States are using the DWSRF Project and Benefits
Reporting System (PER) to collect ARRA-funded projects' data such as project
characteristics and milestone elements to fulfill the ARRA reporting requirement. States
began entering data into PER in early 2009. OMB guidance requires States to submit
quarterly reports to OMB no later than 10 days after the end of the calendar quarter. Exhibit
27 presents a summary of ARRA project statistics. Most ARRA projects received both
ARRA and base program funds from the DWSRF, allowing the State to provide even greater
assistance to borrowers.
Number of Systems
Number of Loans
Number of Loans with Subsidy
Number of Loans with GPR
Total DWSRF Assistance
Total Base DWSRF Assistance
Total ARRA Assistance
Total ARRA Subsidy
Total GPR
Avg ARRA Assistance per Loan
Avg ARRA Subsidy per Loan
Avg ARRA Subsidy per Loan Receiving a Subsidy
1,230
1,342
1,207
511
$3,016,438,000
$1,219,732,000
$1,796,706,000
$1,215,110,000
$538,121,000
$1,339,000
$905,000
$1,007,000
43
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2009 Drinking Water State Revolving Fund Annual Report
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For more information about the Drinking
Water State Revolving Fund, please contact:
Drinking Water State Revolving Fund Program
U.S. Environmental Protection Agency
1201 Constitution Avenue, NW (Mail code 4606M)
Washington, DC 20460
Phone: (202} 564-2051
Fax: (202} 564-3754
Internet: http://water.epa.gov/grants_funding/dwsrf/
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