A Funding Decentralized Wastewater Treatment Systems with the Clean Water State Revolving Fund lar*Msi (SSI fill lis I ISI ISI IssriSI ISSI ISI ISI 1551 1551 jlSSI 151 151 ISSf IK [551 111 ^IWi:WlP^ !ĞjfW J5SI liS A decentralized wastewater treatment system - a package plant - serving an apartment building in Suffolk County, New York The U.S. Environmental Protection Agency's (EPA) Clean Water State Revolving Fund (CWSRF) is a low interest source of funding for the installation, repair, and upgrad- ing of decentralized wastewater treatment systems. Pro- jects that may be eligible for CWSRF funding include: New system installation (single and cluster systems). Replacement, upgrade, or modification of inadequate or failing systems. Costs associated with the establishment of a central- ized management entity (e.g., permitting and legal fees). Capita! associated with management programs (e.g., trucks, storage buildings, spare parts) HOW THE CWSRF WORKS CWSRF programs in each state and Puerto Rico operate like banks. Federal and state contributions are used to capitalize the programs. These assets are used to make iow- or no-interest loans for important water quality pro- jects. Funds are then repaid to the CWSRFs over terms as iong as 30 years and are recycled to fund other water quality and public health projects. WHO MAY QUALIFY The CWSRF may provide assistance to any public, private or non-profit entity for decentralized projects. Eligible loan recipients include community groups, farmers, homeowners, small businesses, conservation districts, and nonprofit organizations. Since the program is man- aged by the states, project funding and eligibility require- ments vary according to the priorities, policies, and laws within each state. GETTING A PROJECT FUNDED The EPA encourages states to open their CWSRFs to the widest variety of eligible water quality and public health projects. Those interested in implementing or upgrading a decentralized treatment system should seek out their CWSRF program to determine whether their state CWSRF has the legal authority to make loans for decen- tralized projects, and participate in the annual process that determines which projects are funded. The list of CWSRF state programs can be found on our website at: https://www.epa.gov/cwsrf/forms/contact-us-about- clean-water-state-revolving-fund-cwsrf#state Here are some questions to ask the CWSRF in your state: Does the state have the legal authority to use its CWSRF for decentralized systems? Does the state CWSRF enabling legislation provide the legal authority to provide loans to an individual or private entity? Has the state committed to funding decentralized systems in its CWSRF Intended Use Plan (I UP)? If not, what can I do to help get these systems listed on theIUP? Can an individual or private entity receive a CWSRF loan for a decentralized system? If not, can I receive a CWSRF loan through a pass- through entity? The CWSRF in your state wiil be able to guide you ------- SOURCES OF LOAN REPAYMENT Potential borrowers must identify a repayment source before a loan is approved. Though finding a source of repayment may prove challenging, it does not have to be burdensome. Many recipients demonstrate a high level of creativity in developing sources of repayment. The source of repayment need not come from the project itself. Some potential repayment sources include: Property owner's ability to pay (determined during loan application) Fees paid by developers Recreational fees (fishing licenses, entrance fees) Dedicated portions of local, county, or state taxes or fees Donations or dues made to nonprofit groups Stormwater management fees Wastewater user charges CLEAN WATER SUCCESS STORIES RHODE ISLAND The Rhode Island Clean Water Finance Agency (CWFA) successfully developed innovative partnership programs and lending practices such as the Community Septic Sys- tem Loan Program (CSSLP). To expand its borrower base, the Rhode Island CWFA crafted CSSLP in cooperation with the Rhode Island Department of Environmental Manage- ment and Rhode Island Housing. The CSSLP puts low in- terest SRF funds within reach of all communities and al lows them to access the SRF to repair or replace septic systems when necessary. Thus far, the Rhode Island CWFA has made CSSLP loans totaling $2.95 million. Ap- proximately 400 septic systems have been repaired or replaced to date, resulting in significantly improved water quality in many of their small communities. A CWSRF-funded decentralized wastewater treatment sys- tem in Lincoln County, West Virginia, ALABAMA The Alabama Department of Environmental Manage- ment made $15 million in financial assistance availa- ble to the South Alabama Utilities using funds from the FY 2008 Clean Water State Revolving Fund (CWSRF) loan program. The proposed work is ex- pected to cost about $1.25 million and will consist of the construction of decentralized wastewater treat- ment systems in three subdivisions: Colleton, Labra- dor Run, and Johnson Road. Proper use of decentral- ized treatment and disposal is a cost-effective, envi- ronmentally sound option for meeting public demand for sewer service and avoiding potential health con- cerns related to the use of septic tanks. For more information about the CWSRF please contact us at; United States Environmental Protection Agency Clean Water State Revolving Fund Branch Office of Water, Office of Wastewater Management 1200 Pennsylvania Avenue, NW (Mailcode 4204M) Washington, DC 20460 EPA 832F16006 JUNE 2016 ------- |