CLEAN WATER
STATE REVOLVING
I FUND PROGRAMS
A stronger nation through cleaner water
a stronger economy through sustainable investments
&EPA
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CWSRF Program Highlights:
$74 BILLION IN CUMULATIVE ASSISTANCE PROVIDED1
1.4 TO 2 MILLION JOBS CREATED SINCE 19882
69 PERCENT OF ASSISTANCE GOES TO PROJECTS THAT PROTECT HUMAN HEALTH3
OVER 130 MILLION PEOPLE LIVING IN MORE THAN 2,500
COMMUNITIES HAVE BENEFITED FROM THE CWSRF3
AVERAGE SAVINGS OF 22 PERCENT OF TOTAL PROJECT COSTS FOR A 20-YEAR LOAN1
FUND UTILIZATION RATE OF 96 PERCENT1
2.53 TIMES CUMULATIVE RETURN ON FEDERAL INVESTMENT1
1EPA CWSRF National Information Management System
Calculated based on assistance provided to date. Source: Clean Water Council. June 2009. Sudden Impact: An
Assessment of Short-Term Economic Impacts of Water and Wastewater Construction Projects in the United States.
Available at: http://www.nuca.com/files/public/CWC_Sudden_lmpact_Report_FINAL.pdf
3CWSRF Benefits Reporting System
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TABLE OF CONTENTS
THE CLEAN WATER STATE REVOLVING FUND:
A STRONGER NATION THROUGH CLEANER WATER,
A STRONGER ECONOMY THROUGH SUSTAINABLE INVESTMENTS
IMPLEMENTING THE AMERICAN RECOVERY AND REINVESTMENT ACT
CASE STUDIES OF SUCCESSFUL STATE IMPLEMENTATION OF ARRA
CWSRF 2009 PERFORMANCE HIGHLIGHTS
13
STATE AGENCIES AND EPA REGIONAL OFFICES
THAT MANAGE CWSRF PROGRAMS
18
PISCES AWARDS:
RECOGNIZING EXCEPTIONAL STATE CWSRF ACCOMPLISHMENTS
21
2009 FINANCIAL PERFORMANCE OVERVIEW
24
CWSRF INITIATIVES FOR FY 2010
29
CWSRF AT-A-GLANCE
32
2009 ANNUAL REPORT
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The Clean Water State Revolving Fund: A
Stronger Nation Through Cleaner Water,
A Stronger Economy Through Sustainable
Investments
Our nation has a long history of providing fund-
ing to protect and restore our local waterways.
Since the mid-20th century, billions of dollars
have been invested through federal construc-
tion grants and other programs for the con-
struction of wastewater treatment facilities.
In the 1980s, Congress reaffirmed its commit-
ment to ensuring clean water for all Americans
by authorizing the Clean Water State Revolv-
ing Fund (CWSRF) through the Clean Water Act
Amendments of 1987. This groundbreaking
program provides communities with low-cost
funds for infrastructure construction and other
activities to restore and protect our waterways.
The unparalleled success of the CWSRF was
further demonstrated in Congress's decision
to appropriate $4 billion to the CWSRF in the
American Recovery and Reinvestment Act of
2009 (ARRA) in February. The ARRA funds, in
addition to the CWSRF's base program financ-
ing, are helping to create and sustain thou-
sands of jobs and further improve the condi-
tions of our waters for public health, recreation
and wildlife.
Since the first project received CWSRF financ-
ing in 1988, the program has provided over
$74 billion in assistance for eligible wastewa-
ter infrastructure, nonpoint source and estuary
projects. By the end of Fiscal Year (FY) 2009,4
states had entered into almost 24,700 assis-
tance agreements. Because the CWSRF pro-
vides financing at below market interest rates,
thousands of communities and other eligible
entities have been able to upgrade and replace
their wastewater treatment plants, correct
combined and sanitary sewer overflows, and
prevent contaminated runoff from entering
waterways at a much lower cost than they
would have incurred through conventional
financing.
1 The 2009 Fiscal Year covers the period from July 1, 2008 through June 30, 2009.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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FIGURE 1: HOW THE CWSRF PROGRAM WORKS
STATE GOVERNMENT
BOND
HOLDERS
State
Match
, CLEAN WATER
STATE REVOLVING
FUND
ASSISTANCE
RECIPIENTS
01
E
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FIGURE 2: CWSRFS RETURN 2.53 TIMES THE FEDERAL INVESTMENT AS OF FY 2009
CWSRF Disbursements
Federal Outlays
Federal Outlays are the amount of cash drawn from the U.S. Treasury into the CWSRF.
CWSRF Disbursements are the actual cash paid out from the CWSRF to assistance recipients
Twenty-seven states further increase their
financing ability by issuing bonds secured
by their CWSRF resources. This makes addi-
tional funds available to finance more projects.
These states have made an additional $24 bil-
lion in financing available for projects to date.
Responsible fiscal management and the revolv-
ing nature of the CWSRF program have resulted
in a remarkable return on federal investment.
As of FY 2009, for every federal dollar invested,
$2.53 in CWSRF assistance has been disbursed
to eligible wastewater and nonpoint source
projects across the country (Figure 2).
THE AMERICAN RECOVERY AND REINVESTMENT
ACT
The American Recovery and Reinvestment Act
of 2009 made a dramatic impact on CWSRF pro-
gram operations in FY 2009, and will continue
to do so through FY 2010. Signed by President
Obama on February 17, 2009, ARRA provided
$4 billion in capitalization to the CWSRF in addi-
tion to the $689 million that had already been
appropriated for 2009. The Recovery Act's goal
of preserving and creating jobs produced new
challenges and opened up many new opportu-
nities for the CWSRF.
In order to get the funds to communities as
quickly as possible, Congress mandated that
all of the money be under contract or con-
struction within one year of enactment, with a
goal of having at least half of the funds under
contract within 120 days. In addition, at least
50 percent of the funds had to be provided in
the form of additional subsidization. Congress
also promoted "green" practices by requir-
ing that 20 percent of the ARRA capitalization
go towards four categories of green projects.
Figure 3 outlines the primary requirements of
the ARRA funds.
In addition to highlighting the financial accom-
plishments from the last year, this report fea-
tures case studies that emphasize the states'
ARRA successes through June 30, 2009. It also
looks ahead towards FY 2010 and beyond, as
ARRA implementation continues and higher
capitalization grants and new Administration
initiatives present new challenges and oppor-
tunities for the CWSRF programs.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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FIGURE 3: ARRA REQUIREMENTS AT-A-GLANCE
February 17, 2010: All ARRA funds must be under contract or construction.
State Match: No state matching funds are required.
Additional Subsidization: At least 50 percent of ARRA funds must be used to pro-
vide additional subsidization, such as grants, principal forgiveness or negative
interest rate loans.
Green Project Reserve: At least 20 percent of ARRA funds must be used for four
types of prejects-
(1) Green infrastructure,
(2) Water efficiency improvements,
(3) Energy efficiency improvements, and
(4) Environmentally innovative activities
Buy American: All iron, steel and manufactured goods incorporated in projects
that receive any ARRA funds must be made in the United States unless a waiver is
received from EPA.
Davis-Bacon Wage Rates: All laborers and mechanics working on projects funded
in whole or in part by ARRA must be paid prevailing wages as determined by the
U.S. Department of Labor.
The ARRA funds, in
addition to the CWSRF's
base program financing,
are helping to create and
sustain thousands of jobs.
2009 ANNUAL REPORT
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Implementing the American Recovery and
Reinvestment Act
The American Recovery and Reinvestment Act
of 2009 (ARRA) presented a unique challenge
to federal and state governments. With over
20 years of successfully managing the CWSRF,
states were able to hit the ground running. In
fact, a number of states began reaching out to
communities to identify "shovel-ready" proj-
ects several months before the stimulus pack-
age passed.
As the House of Representatives and the
Senate passed their versions of the bills, EPA
held online webcasts, meetings, and confer-
ence calls with state and Regional EPA CWSRF
staff to discuss how potential provisions might
be implemented. EPA acted quickly when the
Recovery Act was passed and signed by the
President on February 17, 2009. EPA published
the final ARRA guidance less than two weeks
later, on March 2, allowing states to begin
implementing the provisions of ARRA with min-
imal delay.
Due to the significant amount of publicity in
advance of the passage of the Recovery Act,
states received many more - sometimes more
than ten times more - inquiries for funding
than they typically receive in a year. In addition,
state CWSRF staff reached out proactively to
communities to inquire about potential ARRA
projects. State employees worked through
thousands of initial applications to prioritize
the projects based on economic impact, finan-
cial need, environmental benefit and adher-
ence to ARRA goals and requirements.
ADDITIONAL SUBSIDIZATION
ARRA included a number of provisions that
were new to the CWSRF; the first being that
at least 50 percent of a state's ARRA allotment
was to be provided in the form of grants, princi-
pal forgiveness or negative interest rate loans.
These options all have the effect of reduc-
ing the repayment amount or eliminating the
project's CWSRF loan altogether. A number of
states, including Illinois and California, had to
pass emergency legislation to allow them to
provide this type of financing.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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States have taken different approaches to the
additional subsidization provision. For exam-
ple, Florida has limited additional subsidization
to disadvantaged communities and Colorado
has provided additional subsidization to all of
its ARRA borrowers. The flexibility in the ARRA
legislation and the states' long history of inno-
vation allowed them to devise subsidization
strategies that best met their communities'
needs.
GREEN PROJECT RESERVE
The ARRA Green Project Reserve called for
states to use 20 percent of their ARRA allot-
ment for green infrastructure, water or energy
efficiency improvements or other environmen-
tally innovative activities. These four categories
of projects are not new to CWSRF programs,
and represent a subset of projects already eli-
gible for fund ing under federal rules. EPA devel-
oped guidance for the Green Project Reserve in
order to ensure proper implementation of this
provision.
States are using the Green Project Reserve
as an opportunity to reach out to additional
borrowers and projects. Many states such
as Maryland, California and South Carolina
are making efforts to reach out to nonprofit
environmental organizations that had never
utilized CWSRF funds before. The Louisiana
CWSRF program met with stakeholders includ-
ing mayors, state representatives, the Louisi-
ana Municipal Association and the Louisiana
Police Jury Association to make them aware of
the opportunities provided by ARRA funding.
Iowa formed a variety of partnerships with
entities such as county boards of health, soil
and water conservation districts, conservation
organizations and farm groups to get the word
out about the availability of ARRA funds and
to better coordinate funding efforts between
local and state agencies.
DAVIS-BACON AND BUY AMERICAN
The Recovery Act also mandated the use of
Davis-Bacon federal prevailing wage rates and
American-made iron, steel and manufactured
goods for all projects funded wholly or partially
with ARRA funding.
These complex provisions pose a number of
challenges to state and federal CWSRF staff
in their efforts to ensure that they are imple-
mented according to the law while minimizing
the administrative burden on project sponsors.
To help inform applicants, EPA and the states
have begun conducting workshops where
implementation of these provisions is a primary
topic. Iowa held one of the first of such work-
shops in May 2009. States have been actively
working to develop procedures, checklists and
other guidance to help ensure that these provi-
sions are being implemented correctly by both
the assistance recipients and the state CWSRF
program.
ARRA REPORTING
EPA, in close collaboration with the states,
launched the CWSRF Benefits Reporting System
(CBR) in 2005. This tool, which captures the
projected water quality improvements asso-
ciated with each CWSRF project, was quickly
adopted by all state programs. CBR has also
become the primary tool for collecting data on
ARRA projects, including information on jobs
created or retained, contracts awarded, con-
2009 ANNUAL REPORT
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struction dates, Green Project Reserve compo-
nents and additional subsidization.
EPA created an expanded section of CBR with
all of the necessary ARRA reporting param-
eters, giving states a one-stop-shop for enter-
ing the environmental benefits data for their
ARRA and base program projects as well as
ARRA-specific data (Figure 4). The Office of
Management and Budget (OMB) published its
ARRA reporting guidance on June 22, and EPA
was able to release the CBR ARRA reporting
module approximately a week later. Using CBR,
the CWSRF programs can populate the OMB
reporting template as well as produce reports
required by Congress, eliminating the need for
states to enter this information in several dif-
ferent databases. EPA is also using this data-
base to monitor states' progress and provide
updates to Congress and the Administration.
EPA and the states continue to work every day
toward ensuring that the CWSRF achieves all
of the goals and requirements in the Recovery
Act. The states are coordinating with com-
munities and project engineers to verify that
they are meeting all of the ARRA requirements,
while at the same time continuing their efforts
to award their non-ARRA CWSRF funds to proj-
ects in a timely manner.
FIGURE 4: CWSRF BENEFITS REPORTING SYSTEM'S ARRA REPORTING PAGE
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oĞ- o
/a-*
CWSRF Benefits Reoorti
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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Case Studies of Successful State Implementation
of ARRA
Early Planning Helps Maine Hit the Ground Running
Maine's CWSRF program began planning for the possibility of stimulus funding well before ARRA
was passed. The CWSRF, which is jointly administered by the Maine Department of Environmen-
tal Protection (DEP) and the Maine Municipal Bond Bank, began reaching out to communities and
consulting engineers as early as December 2008.
Based on this initial outreach to municipal licensed dischargers and consulting engineers, the DEP
received more than 200 project proposals from 90 entities totaling over $317 million. Maine was
allotted approximately $29.1 million in ARRA funds. The state developed ARRA project ranking
criteria that first prioritized projects based on environmental benefits and then provided addi-
tional points for projects that could begin construction sooner. For example, a project that could
begin construction in June 2009 would receive 31 percent additional points compared to a project
beginning construction in March 2010. The state also offered interest-free loans to all ARRA bor-
rowers plus principal forgiveness between 24 and 100 percent, based on user rate affordability.
As a result of its efforts, Maine had already signed six assistance agreements totaling $14.9 mil-
lion by June 30, 2009.
Innovative Programs and Partnerships Advance New York's
Green Project Reserve
The New York State Environmental Facilities Corporation (EFC) established a new program, the
Green Innovation Grant Program (GIGP), to help provide ARRA funding to eligible Green Project
Reserve projects. The EFC created a new category on its Intended Use Plan (IUP) for GIGP proj-
ects. New York's CWSRF program allocated more than $35 million to the GIGP. GIGP funds were
directed to eligible Green Project Reserve projects that were not previously listed on the state's
2009 ANNUAL REPORT
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IUP, and these projects had to go through a
separate application process. Applications were
accepted through May 29, 2009.
Eligible GIGP applicants included municipalities,
state agencies, private and not-for-profit organi-
zations, school districts and water and conserva-
tion districts. To evaluate applications, the EFC
considered criteria such as readiness to proceed
to construction, reduction in energy and water
use, green energy production, water reuse, proj-
ect sustainability and innovation.
The EFC received 294 GIGP project applications, which were reviewed by an interagency panel
that included representatives from the EFC, the New York State Department of Environmental
Conservation, the New York State Department of Health and the New York State Energy Research
and Development Authority. Projects selected for GIGP funding will receive ARRA grants for up
to 90 percent of eligible costs, with the remaining ten percent being provided by local matching
funds. Governor David A. Paterson praised the program and the response rate by saying, "The
Green Innovation Grant Program represents a bold step in advancing the State's green economy.
I am pleased with the enthusiastic response to this important program, which will spur creative
innovations to help protect our magnificent rivers, lakes and streams, preserving clean water for
future generations."
To advance its goal of ensuring that all CWSRF projects be efficient in their use of energy, the
EFC also established an innovative partnership with the New York State Energy Research and
Development Authority (NYSERDA), which manages the New York State Regional Greenhouse Gas
Initiative. The partnership leveraged additional money for energy efficient improvements across
the state. NYSERDA is also performing energy audits on all projects at publicly owned treatment
works on New York's IUP to identify eligible green components of traditional wastewater infra-
structure projects that would not have been identified otherwise. These improvements will be
incorporated into the projects' financing packages.
Streamlining and Outreach Help West Virginia Meet its Goals
West Virginia's CWSRF program, administered by the West Virginia Department of Environmental
Protection (DEP), began reaching out to communities and consulting engineers in December 2008
in anticipation of ARRA. As a result, the state was able to hit the ground running once the legisla-
tion passed on February 17, 2009. Within ten days, the DEP released a draft Intended Use Plan,
which was then finalized on March 18, 2009. The state was awarded the majority of its $61.1
million ARRA allotment by EPA on April 3, 2009, becoming one of the first states to receive the
award.
West Virginia's CWSRF is also working closely with its partners to ensure that it can award the funds
quickly. The state's Public Service Commission (PSC) regulates utility rates and must approve all
water and wastewater infrastructure projects, including CWSRF projects, prior to signing financ-
ing agreements. The CWSRF and the PSC are working together to expedite the approval process.
In addition, the West Virginia Infrastructure and Jobs Development Council brings together fund-
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
ing sources and recommends projects for funding. This partnership will allow the CWSRF to co-
fund a large percentage of its ARRA projects with other funding sources.
To further assist disadvantaged communities in West Virginia, the CWSRF is forgiving repayment
of 50 to 100 percent of communities' ARRA financing agreements. In addition, using its authority
to provide extended term financing to communities, the repayment period on the project financ-
ing is extended to 40 years, further reducing annual payments made by the assistance recipients.
Using ARRA to Replace Home Wastewater Systems in Ohio
Upgrade and replacement of failing home treatment systems is an important priority in Ohio. The
CWSRF, managed by the Ohio Environmental Protection Agency and the Ohio Water Develop-
ment Authority, reserved $5 million of the state's $220.6 million ARRA allotment for this purpose.
They have named this reserve the "Home Sewage Treatment Reserve." Under this plan, CWSRF
funds will be awarded to counties or municipalities, who will then provide funding to homeown-
ers for upgrade and replacement of failing home systems. The local communities will be respon-
sible for oversight of projects in their area.
Each participating homeowner will receive funding for 75 percent of the project from CWSRF
ARRA funds and provide matching funds for 25 percent of the project. Repayment of the entire
ARRA portion of the assistance will be eliminated under the principal forgiveness provisions of
ARRA (as a result, homeowners essentially receive a 75 percent grant).
Ohio is using all ARRA funds for principal forgiveness assistance. Non-septic projects will receive
ARRA funds, combined with base CWSRF program loans, in a ratio based on local income levels.
Also, for many communities, the base CWSRF program funding is being offered at a zero percent
interest rate. The state is also aiming to spread the funds to as many communities as possible.
Targeting Innovative Green Projects in Kansas
The Recovery Act requires that CWSRF programs award at least 20 percent of their allotment
to green projects. The Kansas CWSRF program is taking this requirement one step further and
seeking to not only exceed the 20 percent requirement but also promote "innovative green" proj-
ects. Roderick L. Bremby, Secretary of the Kansas Department of Health and Environment, which
manages the state's CWSRF program, promoted the benefits and opportunities created by ARRA,
saying "Clean water is essential to Kansas communities and the funding provided through the
American Recovery Act will allow for projects to be built that might otherwise have taken years
to come to fruition."
The state has set aside one-fifth of its $35.4 million ARRA allotment and received over 60 applica-
tions for "innovative green" projects including wetland restoration, green roofs, rain gardens and
other "soft-path" stormwater management projects. These projects will receive loans with 75 to
100 percent of the principal forgiven.
Kansas also sought out traditional green projects, which include energy efficiency, water reuse,
and use of green energy technologies. The green components of these projects will receive 50
percent principal forgiveness. The remainder of the project funding, including the non-green
components, will be in the form of a loan at the state's standard CWSRF interest rate.
2009 ANNUAL REPORT
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To accomplish its goal, Kansas developed new project ranking systems for both traditional and
innovative green projects. "Traditional green" projects receive additional priority points for each
month sooner that they will be able to begin construction: projects beginning construction in
April 2009 received 100 additional points, while those beginning construction in January 2010
will receive 10 points. "Traditional green" projects also receive additional priority points based
on improved energy and water use efficiency. For example, a 50 percent reduction in total energy
use at a wastewater treatment plant or sewage pumping station will receive 25 priority points
and a 2 percent reduction in energy use will receive 1 priority point.
"Innovative green" projects are ranked separately based on the type of projects, anticipated
water quality benefits, construction start date and the population benefiting from the project.
Expanded Outreach Results in Historical Funding Levels in Alaska
Alaska's CWSRF ARRA program is notable for the high level of community outreach that was con-
ducted. First, the Alaska Department of Environmental Conservation developed a streamlined
CWSRF ARRA loan application, which communities could complete electronically. In fact, com-
munities could indicate their interest in ARRA financing through an online questionnaire as early
as December 2008. In addition, to advertise the availability of ARRA funding, the CWSRF program
reached out to all communities, including those that had never applied for CWSRF funds before.
It also reached out to potential borrowers outside the traditional base, such as landfill operators
and recycling facilities.
To further entice Green Project Reserve and nonpoint source projects to apply for ARRA financ-
ing, Alaska's CWSRF is offering 100 percent principal forgiveness (up to $2.5 million) for those
projects. ARRA point source projects will receive loans with 90 percent principal forgiveness and
10 percent financed at the program's standard loan terms, which is based on the length of the
loan and municipal bond rates. Loan forgiveness is maximized at $2 million for other projects that
do not qualify for the Green Project Reserve.
As a result of its significant outreach efforts, Alaska expects to achieve historical funding levels in
2009 and 2010, and also fund several types of projects for the first time.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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CWSRF 2009 Performance Highlights5
FIGURE 5: 96 PERCENT OF FUNDS COMMITTED TO PROJECTS AS OF FY 2009
^
Cumulative Funds Available
Cumulative Assistance Provided
SUCCESSFULLY DIRECTING FUNDS TO COMMUNITIES
As Figure 5 demonstrates, state CWSRF programs have been very successful in directing funds
toward projects that address pressing water quality problems. Through 2009, CWSRF programs
have committed 96 percent of the $77 billion in cumulative funds available. This strong rate of
fund utilization demonstrates a high demand for CWSRF financing and is a direct result of the
program's below market interest rates and flexible financing options, targeted marketing and
outreach initiatives, and effective program management.
5 The 2009 Fiscal Year covers the period from July 1, 2008 through June 30, 2009. Data includes ARRA figures
through June 30, 2009.
2009 ANNUAL REPORT
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FIGURE 6: CUMULATIVE ASSISTANCE REACHED $74 BILLION THROUGH FY 2009
80
§
1 70
| 60
Jl 50
| 40
a so
120
I 10
$74
$5.2
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Annual Assistance Cumulative Assistance
A CONTINUED SOURCE OF FINANCING
In FY 2009, the CWSRF funded over $5.2 billion in projects, increasing cumulative assistance
provided to $74 billion. Of the $5.2 billion in assistance provided, approximately $430 million
consisted of ARRA funds. Cumulative assistance will continue to grow as appropriations levels,
interest earnings and loan repayments increase. In addition, states with high demand for CWSRF
funds will continue to leverage by issuing revenue or general obligation bonds.
FIGURE 7: CWSRF LOANS SAVE COMMUNITIES 22 PERCENT
2.3%
1%
0%
^
A ofo fA fA
-- CWSRF Interest Rate Market Rate*
*Market Rate is measured as the Bond Buyer Index for 20 Year, AA-Rated GO Bonds
SAVING COMMUNITIES MONEY
According to a popular municipal borrowing index, the average municipal borrowing rate was 5
percent in 2009. By comparison, the average CWSRF loan had an interest rate of only 2.3 percent.
Communities that borrowed from the CWSRF in 2009 saved an average of 22 percent over the life
of a typical 20-year loan.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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FIGURE 8: CWSRFS PROVIDE $74 BILLION IN FINANCING THROUGH FY 2009
4%
Nonpoint Source and Estuary
POTW: Publicly Owned Treatment Works
Note: chart on the right represents various POTW
categories
1%
Secondary Treatment
Advanced Treatment
SSO: Sanitary Sewer Overflow
New Sewers
CSO: Combined Sewer Overflow
Stormwater/Recycled Water
FUNDING A BROAD RANGE OF PROJECT TYPES
The CWSRF programs were designed to allow states the flexibility to fund projects based on water qual-
ity priorities. As a result, CWSRF programs can and do fund a wide range of project types each year. The
CWSRF has cumulatively funded over $70 billion in various types of POTW projects, including $41 billion
for secondary and advanced treatment facilities and $29 billion for sewer construction. In addition, over
$3 billion in CWSRF funds has gone towards nonpoint source projects such as brownfield rehabilitation,
sanitary landfills, onsite septic systems, hydromodification, agricultural best management practices and
green stormwater infrastructure since the inception of the program.
In FY 2009, $3 billion went to secondary and advanced treatment facilities, $1.9 billion went to sewer
construction, and more than $167 million in funds were used for nonpoint source projects such as
brownfield rehabilitation, sanitary landfills, hydromodification, onsite septic systems, agricultural best
management practices and green stormwater infrastructure.
Similarly, $412 million in ARRA funds went towards projects at publicly owned treatment works. Of
this amount, $163 million went to secondary and advanced treatment facilities, and $248 million went
towards sewer construction. An additional $13.7 million in ARRA funds were used for nonpoint source
projects.
2009 ANNUAL REPORT
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FIGURE 9: COMMUNITIES SERVED BY CWSRFS IN FY 2009
Dollar Amount of Assistance
($5.2 Billion)
Number of Assistance
Agreements (1,966)
Less than 3,500
3,500 to 9,999
10,000 to 99,999
100,000 and Above
SERVING COMMUNITIES OF ALL SIZES
The CWSRF provides funding to water quality projects in small, medium and large communities
across the country. In FY 2009, 78 percent of all CWSRF assistance agreements, totaling approxi-
mately $1.2 billion, were made with communities of fewer than 10,000 people. Large commu-
nities received a large amount of funding; nearly $2.2 billion dollars went to communities with
populations of 100,000 or more.6
Communities with populations below 10,000 people received over 50 percent of ARRA funding as
of June 30, 2009. In fact, more than four in ten ARRA assistance agreements were in communities
smaller than 3,500 people.
; Population data was not reported for all of the financing agreements.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
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FIGURE 10: CWSRF PROGRAM RESULTS
6,082 Projects
Financed
...To 2,509
Communities
56.7 Billion Gallons
Per Day Treated
$16.6 Billion to Improve Water Quality
$11.7 Billion to Achieve Compliance
$16.6 Billion to Protect and Restore
Aquatic Life and Wildlife
$3.4 Billion to Protect and Restore
Drinking Water Sources
$16.8 Billion to Protect and Restore
Recreational Uses
Note: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting System as of
June 30,2009, accounting for approximately 31 percent of cumulative CWSRF financing.
IMPROVING THE ENVIRONMENT
Projected environmental benefits information is available for $23 billion in CWSRF funded proj-
ects. This information shows that these projects contribute significantly to the protection and
restoration of rivers, lakes, and streams throughout the country. For example, over $16 billion
went to projects that positively affect aquatic life and wildlife, and over $3 billion funded projects
to protect and restore public drinking water supply.
IMPACTING MILLIONS OF AMERICANS
The CWSRF Benefits Reporting System demonstrates that CWSRF funded projects have improved
water quality for millions of Americans. This includes improved access to water for recreational
purposes for over 107 million people, improvements to water that supports fish and shellfish for
consumption for 43 million people, and improved access to clean drinking water for more than
33 million people.
2009 ANNUAL REPORT
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State Agencies and EPA Regional Offices that
Manage CWSRF Programs
The state CWSRF staff and EPA Regional Coordinators are responsible for the enormous success of
the CWSRF program and ARRA. They work tirelessly every day to improve the program and main-
tain the high level of innovation that has characterized the CWSRF since the beginning. Without
their efforts, none of the results and initiatives discussed in this report would have been possible.
Below is a list of state agencies and EPA Regional Offices.
EPA REGION 1 - BOSTON, MASSACHUSETTS
Connecticut Department of Environmental
Protection
Connecticut Office of the Treasurer
Maine Municipal Bond Bank
Maine Department of Environmental
Protection
Massachusetts Water Pollution Abatement
Trust
Massachusetts Department of Environmental
Protection
New Hampshire Department of Environmental
Services
Rhode Island Clean Water Finance Agency
Rhode Island Department of Environmental
Management
Vermont Department of Environmental
Conservation
Vermont Municipal Bond Bank
EPA REGION 2 - NEW YORK, NEW YORK
New Jersey Department of Environmental
Protection
New Jersey Environmental Infrastructure Trust
New York State Environmental Facilities
Corporation
New York Department of Environmental
Conservation
Puerto Rico Environmental Quality Board
Puerto Rico Infrastructure Financing Authority
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
EPA REGION 3-PHILADELPHIA, PENNSYLVANIA
Delaware Department of Natural Resources
and Environmental Control
Maryland Department of the Environment
Pennsylvania Infrastructure Investment
Authority
Pennsylvania Department of Environmental
Protection
Virginia Department of Environmental Quality
Virginia Resources Authority
West Virginia Department of Environmental
Protection
West Virginia Water Development Authority
West Virginia Infrastructure and Jobs
Development Council
EPA REGION 4 - ATLANTA, GEORGIA
Alabama Department of Environmental
Management
Florida Department of Environmental
Protection
Georgia Environmental Facilities Authority
Kentucky Infrastructure Authority
Kentucky Division of Water
Mississippi Department of Environmental
Quality
North Carolina Department of Environment
and Natural Resources
South Carolina Department of Health and
Environmental Control
South Carolina Budget and Control Board
Tennessee Department of Environment and
Conservation
Tennessee Comptroller of the Treasury
EPA REGION 5 - CHICAGO, ILLINOIS
Illinois Environmental Protection Agency
Indiana Department of Environmental
Management
Indiana Bond Bank
Indiana Finance Authority
Michigan Department of Environmental
Quality
Michigan Municipal Bond Authority
Minnesota Public Facilities Authority
Minnesota Pollution Control Agency
Minnesota Department of Agriculture
Ohio Environmental Protection Agency
Ohio Water Development Authority
Wisconsin Department of Natural Resources
Wisconsin Department of Administration
EPA REGION 6 - DALLAS, TEXAS
Arkansas Natural Resources Commission
Arkansas Development Finance Authority
Louisiana Department of Environmental
Quality
New Mexico Environment Department
Oklahoma Water Resources Board
Texas Water Development Board
EPA REGION 7 - KANSAS CITY, MISSOURI
Iowa Department of Natural Resources
Iowa Finance Authority
Kansas Department of Health and
Environment
2009 ANNUAL REPORT
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Kansas Department of Administration
Kansas Development Finance Authority
Missouri Department of Natural Resources
Missouri Environmental Improvement and
Energy Resources Authority
Nebraska Department of Environmental
Quality
Nebraska Investment Finance Authority
EPA REGION 8 - DENVER, COLORADO
Colorado Water Resources and Power
Development Authority
Colorado Department of Public Health and
Environment
Colorado Department of Local Affairs
Montana Department of Environmental
Quality
Montana Department of Natural Resources
and Conservation
North Dakota Department of Health
North Dakota Public Finance Authority
South Dakota Department of Environment and
Natural Resources
Utah Department of Environmental Quality
Wyoming Department of Environmental
Quality
Wyoming Office of State Lands and
Investments
EPA REGION 9 - SAN FRANCISCO, CALIFORNIA
Arizona Water Infrastructure Finance
Authority
California State Water Resources Control
Board
Hawaii Department of Health
Nevada Department of Conservation and
Natural Resources
EPA REGION 10 - SEATTLE, WASHINGTON
Alaska Department of Environmental
Conservation
Idaho Department of Environmental Quality
Oregon Department of Environmental Quality
Washington Department of Ecology
The state CWSRF staff and
EPA Regional Coordinators
are responsible for the
enormous success of
the CWSRF program and
ARRA.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
PISCES AWARDS: Recognizing Exceptional State
CWSRF Accomplishments
The 2009 PISCES Awards (Performance and
Innovation in the SRF Creating Environmental
Success) recognized states that have shown
exceptional leadership and effectiveness in
protecting water quality and financial integrity
through the Clean Water State Revolving Fund
program.
In 2009, a CWSRF PISCES Award was pre-
sented to one state from each of the 10 U.S.
EPA Regions. These recipients of the fifth
annual PISCES awards are examples of out-
standing performance, creativity, and integrity
in the CWSRF program. Winners were recog-
nized and presented with their awards at the
national SRF workshop hosted by the Council
of Infrastructure Financing Authorities (CIFA) in
Seattle, Washington in November, 2009.
2009 ANNUAL REPORT
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REGION 10: ALASKA
The Alaska Department of Environment Conservation's
CWSRF program implemented a highly effective outreach
effort in anticipation of ARRA. In addition to its traditional
borrower base, the CWSRF targeted disadvantaged
communities, landfills, recycling facilities and non-
traditional potential assistance recipients. As a result,
Alaska will provide more CWSRF funding to communities
this year than in any single prior year.
REGION 9: HAWAII
Improved outreach to Hawaii's four counties, lower
interest rates and reduced fees have helped increase the
CWSRF program pace from 68 to 97 percent in four years.
In addition, the CWSRF, administered by the Hawaii
Department of Health, is using ARRA funds to replace old
existing pumps with energy-efficient pumps guaranteed
to result in a 20 percent savings in energy costs at Maui's
wastewater treatment system, and to install solar cells in
Kauai's Waimea treatment facility to reduce the plant's
energy costs.
REGIONS: WYOMING
Over the years Wyoming's CWSRF program has
developed an innovative partnership with the state to
address groundwater remediation issues through their
leaking underground storage tank removal program.
Approximately 45 percent of Wyoming's CWSRF assistance
has gone to removing leaking underground storage tanks
to protect groundwater. The Wyoming Department of
Environmental Quality and the Wyoming Office of State
Lands and Investment, which jointly manage the CWSRF,
also recognize that water efficiency has become more
critical for wastewater utilities, particularly those in the
West, and have identified and targeted numerous water
reuse projects for CWSRF funding.
REGION 7: IOWA
Over the past several years, Iowa's CWSRF, administered
by the Iowa Department of Natural Resources and the
Iowa Finance Authority, has greatly increased outreach to
potential borrowers, consulting engineers, financial advisors
and other stakeholders. These marketing activities have
significantly increased demand for funds; program pace is at
104 percent as of the end of FY 2009. The Iowa CWSRF also
recently leveraged for the first time in several years.
2009 Pisces A
REGION 6: NEW MEXICO
The New Mexico Environment Department employs a
Community Services Coordinator in its CWSRF program.
The Coordinator performs outreach to communities,
manages the state's centralized application for all
water and wastewater funding programs, and fosters
coordination with other state and federal funding agencies.
The CWSRF also participates in bi-weekly meetings with
other infrastructure financing agencies to coordinate
funding. These efforts have increased the marketability of
the program and resulted in improved pace and increased
transparency of the program's operations.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
REGION 1: MAINE
.ward Winners
Maine's CWSRF, administered by the Maine Department
of Environmental Protection and the Maine Municipal
Bond Bank, collaborates with federal and state financing
programs to create affordable funding packages for
communities. Such partnerships helped Maine be a
leader in utilizing ARRA funds quickly.
IPt
REGION 2: NEW YORK
New York's CWSRF, a partnership of the New York State
Department of Environmental Conservation and the
New York State Environmental Facilities Corporation,
directed a portion of its ARRA Green Project Reserve to
green upgrades to traditional wastewater projects. It also
worked with the New York State Energy Research and
Development Authority and the New York State Regional
Greenhouse Gas Initiative to leverage $14 million in
funding for energy efficiency improvements
REGION 3: WEST VIRGINIA
West Virginia more than doubled its cumulative amount
of nonpoint source funding in only one year by using
a watershed approach to funding point source and
nonpoint source projects. The CWSRF, which is managed
by the West Virginia Department of Environmental
Protection, also partnered with the West Virginia
Housing Development Fund to address failing on-site
septic systems.
REGION 5: INDIANA
The Indiana Finance Authority's CWSRF program
partners with other state and Federal funding agencies
to streamline the financing process and make more
funds available for important water quality projects.
It also partners with the Indiana Department of
Environmental Management to use local pollutant load
data to identify funding priorities and rank projects.
REGION 4: KENTUCKY
Kentucky's CWSRF, administered by the Kentucky
Infrastructure Authority, partners with other financing
agencies to reach more projects. It also uses a watershed
approach to funding. These practices have allowed the
state to fund innovative projects under the ARRA Green
Project Reserve, including a terraced reforestation
project and bio-energy management at a horse park.
2009 ANNUAL REPORT
-------
2009 Financial Performance Overview
The Clean Water Act requires an annual finan-
cial audit of the 51 state-level CWSRF programs.
Each state and Puerto Rico conducts these
audits according to the generally accepted
auditing standards established by the Govern-
mental Accounting Standards Board (GASB).
States often define their CWSRF programs as
ongoing enterprise funds under the GASB defi-
nitions of funds. The standardized financial
statements used for CWSRF programs include
the following:
STATEMENT OF FUND ACTIVITY
This statement provides an overview of major
indicators of fund activity, including the major
capitalization grant levels, project commit-
ments, and project disbursements. Both
annual and cumulative data are given.
STATEMENT OF REVENUES, EXPENSES, AND
EARNINGS
This statement describes the overall perfor-
mance of the CWSRF fund over the reporting
period.
STATEMENT OF NET ASSETS
This statement describes a fund's assets and
liabilities through the end of the fiscal year.
Assets include financial assets and capital
assets; liabilities include both current and long-
term liabilities. CWSRF fund assets include
grant funds that have been drawn from the fed-
eral treasury to date, but do not include total
grant awards.
STATEMENT OF CASH FLOWS
This statement provides a detailed accounting
of the actual flow of cash into and out of the
CWSRF fund.
Because the 51 constituent CWSRF programs
are independent state-level entities, no nation-
ally audited CWSRF program financial reports
are available. However, using EPA's National
Information Management System, national
aggregate financial statements have been
developed and are included in the following
pages. The statements are best viewed as non-
audited, cash flow-based financial reports.
Note: American Recovery and Reinvestment Act (ARRA) data as of June 30, 2009 are included in FY 2009 figures.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
FINANCIAL STATEMENT HIGHLIGHTS
Total assets increased by $3.0 billion, a 5.4 percent increase from 2008.
CWSRF program equity (net assets) totals $35.5 billion, a 5 percent increase
from 2008.
Total program revenues exceeded expenses by $1.7 billion, with interest earn-
ings from loans and investments totaling over $1.5 billion.
Loan principal repayments to the CWSRF were $2.6 billion.
Leveraged bond proceeds added $2.4 billion to program cash flow.
CWSRF National Performance Summary
(Millions of Dollars)
STATEMENT OF FUND ACTIVITY
Annual Fund Activity
Federal Capitalization Grants
State Matching Funds
New Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Project Disbursements
Cash Draws from Federal Capitalization Grants
Cumulative Fund Activity
Federal Capitalization Grants
State Matching Funds
Funds Available for Assistance
Project Commitments (Executed Loan Agreements)
Project Disbursements
Cash Draws from Federal Capitalization Grants
FY 2009
2,698
114.7
7,222.7
5,231.7
5,151.6
870.8
28,830.4
5,686.2
77,188.4
74,045.1
64,841.9
25,662.4
FY 2008
1,164.9
264.3
4,987.0
5,837.9
5,530.4
1,176.2
26,132.4
5,571.5
69,965.7
68,813.3
59,690.3
24,791.6
% Change
132%
-57%
45%
-10%
-7%
-26%
10%
2%
10%
8%
9%
4%
Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly
equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.
Source: EPA's CWSRF National Information Management System (June 30,2009).
2009 ANNUAL REPORT
-------
STATEMENT OF REVENUES, EXPENSES, AND EARNINGS
Operating Revenues
Interest on Investments
Interest on Loans
Total Operating Revenues
Operating Expenses
Bond Interest Expense
CWSRF Funds Used for Refunding
Amortized Bond Issuance Expense
Administrative Expenses
Total Expenses
Nonoperating Revenues and Expenses
Federal Contribution
State Contributions
Transfers from (to) DWSRF
Total Nonoperating Revenues (Expenses)
Increase (decrease) in Net Assets
Net Assets
Beginning of Year
End of Year
FY 2009
536.1
1,023.7
1,559.8
33,800.5
35,499.0
FY 2008
734.7
956.4
1,691.1
31,942.4
33,800.5
% Change
-27%
7%
-8%
745.5
0.0
14.7
41.8
802.0
1,009.7
135.5
14.4
43.7
1,203.4
-26%
-100%
2%
-4%
-33%
870.8
68.2
1.7
940.7
1,698.5
1,176.2
205.7
(11.4)
1,370.4
1,858.1
-26%
-67%
115%
-31%
-9%
6%
5%
Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly
equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.
Source: EPA's CWSRF National Information Management System (June 30,2009).
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
STATEMENT OF CASH FLOWS
Operating Activities
Cash Draws from Federal Capitalization Grants
Contributions from States
Loan Disbursements Made to Borrowers
Loan Principal Repayments
Interest Received on Loans
Administrative Expenses
Total Cash Flows from Operating Activities
Noncapital Financing Activities
Gross Leveraged Bond Proceeds
Bond Issuance Expense
State Match Bond Proceeds
Cash Received from Transfers with DWSRF
Interest Paid on Leveraged and State Match Bonds
CWSRF Funds Used for Refunding
Principal Repayment of Leveraged Bonds
Principal Repayment of State Match Bonds
Net Cash Provided by Noncapital Financing Activities
Cash Flows from Capital and Related Financing
Activities
Investing Activities
Interest Received on Investments
Deposits to Debt Service Reserve for Leveraged Bonds
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Beginning Balance - Cash and Cash Equivalents
Ending Balance - Cash and Cash Equivalents
FY 2009
870.8
68.2
(5,151.6)
2,597.6
1,023.7
(41.8)
(633.0)
2,398.1
(18.7)
46.5
1.7
(745.5)
0.0
(1,055.3)
(69.8)
557.1
0.0
536.1
(244.4)
291.7
215.7
8,932.0
9,147.8
FY 2008
1,176.2
205.7
(5,530.4)
2,301.2
956.4
(43.7)
(934.7)
1,966.5
(20.4)
58.6
(11.4)
(1,009.7)
(135.5)
(953.9)
(76.3)
(182.1)
0.0
734.7
(118.9)
615.8
(500.9)
9,433.0
8,932.0
% Change
-26%
-67%
7%
13%
7%
4%
32%
22%
8%
-21%
115%
26%
100%
-11%
9%
406%
-27%
-106%
-53%
143%
-5%
2%
Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly
equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.
Source: EPA's CWSRF National Information Management System (June 30,2009).
2009 ANNUAL REPORT
-------
i
ASSETS
Cash and Cash Equivalents
Debt Service Reserve - Leveraged Bonds
Loans Outstanding
Unamortized Bond Issuance Expenses*
Total Assets
LIABILITIES
Match Bonds Outstanding
Leveraged Bonds Outstanding
Total Liabilities
NET ASSETS
Federal Contributions
State Contributions
Transfers - Other SRF Funds
Other Net Assets
Total Net Assets
TOTAL LIABILITIES & NET ASSETS
FY 2009
9,147.8
7,458.6
42,357.0
298.4
59,261.7
545.4
23,217.3
23,762.7
25,662.4
4,299.5
(397.2)
5,934.3
35,499.0
59,261.7
FY 2008
8,932.0
7,214.2
39,803.0
294.4
56,243.7
568.6
21,874.5
22,443.2
24,791.6
4,231.3
(398.9)
5,176.5
33,800.5
56,243.7
% Change
2%
3%
6%
1%
5%
-4%
6%
6%
4%
2%
0%
15%
5%
5%
Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly
equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.
Source: EPA's CWSRF National Information Management System (June 30,2009).
*Unamortized Bond Issuance Expenses are costs that have been incurred but have not been fully recognized (amortized). These costs
will be recognized (amortized) over time over the remaining life of the bonds outstanding, similar to a pre-paid expense, and consistent
with GAAP
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
CWSRF Initiatives for FY 2010
In 2010, EPA will continue working with the
CWSRF programs to expand assistance to non-
traditional projects, such as stormwater man-
agement, clean energy, replacement of failing
septic systems and cleanup of contaminated
sites. In addition, EPA will also continue its
existing projects to maximize the benefits of
the CWSRF program and promote professional
development. The initiatives include:
PARTNERSHIP FOR SUSTAINABLE
COMMUNITIES
On June 16, 2009, EPA, the Department of
Transportation (DOT) and the Department
of Housing and Urban Development (HUD)
announced an exciting new partnership. The
HUD-DOT-EPA Interagency Partnership for
Sustainable Communities is an innovative col-
laboration between the three agencies with
the goal of coordinating federal investments in
housing, transportation, clean water and other
infrastructure elements to protect the environ-
ment, promote equitable development, dis-
courage sprawl and address climate change.
As EPA Administrator Lisa Jackson noted in her
June 16, 2009 address to Congress, "As part
of our partnership with DOT and HUD, we will
work with states and tribes to harmonize water
infrastructure investments with transportation
and housing investments to promote smarter
growth."
The Clean Water State Revolving Fund will play
a critical role in the Partnership for Sustainable
Communities. The partnership will build on the
significant flexibility of state CWSRF programs
to direct funds to important sustainable infra-
structure priorities. New Jersey's CWSRF pro-
gram, for example, has a history of providing
financial incentives for projects that promote
smart growth. Wastewater, stormwater and
nonpoint source projects in urban centers and
mixed-use developments in New Jersey can
obtain financing at lower interest rates than
the state's typical CWSRF rates. The Partner-
ship for Sustainable Communities will encour-
age states to incentivize projects that imple-
ment sustainable management practices.
EPA will be sponsoring a CWSRF Pilot Pro-
gram for Sustainable Communities. Under
this program, several states will receive
technical assistance from EPA to modify or
expand their CWSRF programs to encour-
age development under the principles of
2009 ANNUAL REPORT
-------
the Partnership for Sustainable Commu-
nities. The goal is to use the results and
lessons learned from the pilot program
to promote more widespread adoption of
practices that encourage states to reinvest
in their existing infrastructure systems.
At the conclusion of the pilot program,
EPA will publish a best practices guide for
CWSRF programs who wish to adopt the
principles of sustainable development.
The Green Project Reserve, introduced into
the CWSRF program by ARRA, has been
extended to the 2010 CWSRF appropria-
tion. As a result, 20 percent of the fund-
ing provided by the 2010 appropriation
will be directed to green infrastructure,
water or energy efficiency improvements
or other environmentally innovative activ-
ities. Many states used this opportunity
under ARRA to fund projects that promote
low-impact development and prevent
stormwater runoff- important aspects of
sustainable communities.
Inorderto help ensure that projects funded
with federal CWSRF funds are sustainable,
EPA will also be working with states and
utilities to develop guidance that describes
the elements of a system-wide planning
process and a series of best practices for
potential CWSRF funding recipients. These
practices will help potential recipients
inventory, assess and characterize their
critical infrastructure assets, ensure that
the necessary pricing structures are in
place to operate and maintain these assets,
and establish, where appropriate, collabo-
ration, partnership, or restructuring rela-
tionships with higher capability entities.
CHESAPEAKE BAY MEETING
EPA will host a meeting in 2010 with states
within the Chesapeake Bay watershed to dis-
cuss the role of the CWSRF in protecting and
restoring the Bay. State CWSRF managers and
staff will discuss the types of projects they are
already funding to achieve this goal, including
examples of ARRA-funded projects that can
be easily replicated in other states. The use of
CWSRF eligibilities that are not currently uti-
lized, as well as strategies for implementing
these eligibilities (such as inter-state lending
opportunities) will also be discussed.
CWSRF FINANCIAL MANAGEMENT AND
OVERSIGHT
With over $77 billion in funds available for
loans, states and EPA devote a significant
amount of energy to ensuring adequate over-
sight and management of CWSRF financial
resources. In 2010, EPA will assist these efforts
through activities such as the following:
In 2009, EPA held a successful workshop on
oversight and management of the CWSRF
programs for new federal employees. In
2010, EPA will follow up that successful
event with a new EPA employee workshop
on SRF financial management practices.
The workshop will cover transaction test-
ing, audits, leveraging and other topics.
EPA will continue development of the
CWSRF Financial Accreditation Program,
which aims to ensure that state and EPA
staff is knowledgeable of financial man-
agement requirements, processes and
statutes. The Accreditation Program
consists of a series of open book exams
on topics such as cash draws, audits and
municipal finance.
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
EXPANDED CWSRF MARKETING AND
OUTREACH
Marketing and outreach are essential elements
of the continued success and growth of the
CWSRF programs. EPA will continue to work
on enhancing outreach efforts in the next year
with various tools:
ARRA brought with it a focus on "green"
projects, due to a requirement to use 20
percent of the capitalization grant for
green infrastructure, water or energy
efficiency improvements or other envi-
ronmentally innovative activities. This
requirement is also included in the
CWSRF's FY 2010 appropriations. EPA will
continue working with states on meeting
this requirement, providing numerous
case studies of successful projects, and
working with stakeholders to encourage
effective use of the Green Project Reserve.
EPA's biannual newsletter, SRFs Up, has
been a successful tool to provide infor-
mation on new developments and inno-
vations in the CWSRF. It has been used
to highlight creative practices, showcase
innovative projects and discuss develop-
ments in Washington D.C.
CWSRF Activity Updates provide more
extensive case studies and analyses of
financial and programmatic innovations
implemented throughout the country. For
example, in 2009, EPA published an activ-
ity update on using geographic informa-
tion systems technology to achieve CWSRF
program goals. Activity updates will be
developed in 2010 to highlight other com-
pelling topics.
The Financing Alternatives Comparison
Tool (FACT) allows users to compare the
true costs of different financing options. It
has been used successfully in several states
to help communities determine their most
cost-effective financing options. EPA will
be releasing a simplified version of FACT,
referred to as FACT-Lite, to streamline the
data entry requirements and open up the
tool to a wider audience.
ENHANCING CWSRF PERFORMANCE AND
OVERSIGHT
EPA and states conduct a significant amount of
oversight of programs and projects. ARRA has
introduced new challenges to these processes. In
2010, EPA plans to conduct the following activities:
EPA has long performed annual reviews of
state procedures and transactions. In 2009,
due to the greater capitalization amount,
the CWSRF ARRA funds will undergo
reviews bi-annually. These reviews will
continue through 2010. In addition, EPA
will maintain its practice of evaluating EPA
Regional Offices in 2010.
The Benefits Re porting System has become
an invaluable tool to demonstrate the
positive water quality and public health
impacts of CWSRF projects. In 2010, EPA
will continue to refine and enhance this
reporting tool.
2009 ANNUAL REPORT
-------
CWSRFAT-A-G LANCE
FUNDS AVAILABLE FOR PROJECTS
(Billions of Dollars) 2009 1998-
2009
Total Funds 7.2 77.2
Federal Cap Grants 2.7 28.8
State Match 0.11 5.7
Net Leveraged Bonds 2.2 24.6
Net Loan Principal 1.5 13.2
Repaid
Net Interest Earnings 0.8 6.3
Net Transfers with 0.002 (0.3)
DWSRF
Less Administration (0.1) (1.1)
Number of Loans: 2009 = 1,971; Total =
24,688
Return on Federal Investment = 2.53
SRF Assistance As % of Funds Available =
96%
Interest Rate in 2009 = 2.3% (Market=5%)
27 States Leverage; 21 Issue Match Bonds
42 States Fund Nonpoint Source Projects
30 States Use Integrated Priority Systems
48 States Conduct Separate Audits
40 States Fund Separate Grant / Loan
Programs
ASSISTANCE PROVIDED TO PROJECTS
(Billions of Dollars)
Total Project Type
Wastewater Treat-
ment
Nonpoint Source
Not Classified
Total Population
Served
<3,500
3,500-9,999
10,000-99,9999
100,000-and Above
Wastewater
Treatment
Secondary Treat-
ment
Advanced Treat-
ment
SSO Correction
New Sewers
CSO Correction
Storm Sewers
Recycled Water
2009
5.2
5.0
0.2
0
5.2
0.6
0.6
1.8
2.2
5.0
1.8
1.3
0.5
0.7
0.5
0.1
0.1
1998-
2009
74.0
70.3
3.0
0.7
74.0
7.9
8.8
25.0
32.3
70.3
28.0
13.1
8.3
12.8
7.2
0.5
0.4
2009
ARRA
0.43
0.41
0.02
0
0.43
0.11
0.11
0.16
0.05
0.41
0.13
0.03
0.07
0.13
0.02
0.02
0.01
CLEAN WATER STATE REVOLVING FUND PROGRAMS
-------
For more information about the Clean Water
State Revolving Fund, please contact:
CLEAN WATER STATE REVOLVING FUND BRANCH
U.S. ENVIRONMENTAL PROTECTION AGENCY
1200 PENNSYLVANIA AVENUE, NW (MAIL CODE 4204M)
WASHINGTON, D.C. 20460
PHONE 202.564.0752
FAX 202.501.2403
WWW.EPA.GOV/OWM/CWFINANCE/CWSRF
-------
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OFFICE OF WATER JUNE 2010 EPA-832-R-10-001
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