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Funding Resilient Infrastructure with the
Clean Water State Revolving Fund
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The U.S Environmental Protection Agency's (EPA) Clean
Water State Revolving Fund (CWSRF) program is the
largest public source of water quality financing in the
country. The funding flexibility inherent to CWSRF
programs allows states to address their unique water
quality priorities.
The increased incidence of extreme weather due to
climate change can threaten the integrity of critical
wastewater infrastructure. EPA and its state partners
recognize that today's infrastructure challenges include
not only repair, upgrades, and replacement, but ensuring
that infrastructure assets are resilient to climate change.
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
low interest loans for important water quality projects.
Funds are then repaid to the CWSRFs and are recycled to
fund other water quality and public health projects.
TYPES OF CWSRF ASSISTANCE
CWSRFs can offer a variety of types of financial
assistance. The programs primarily offer low-interest
loans or purchase local debt over terms as long as 30
years or the useful life of the project, whichever is less.
CWSRF programs can also refinance previously issued
debt, provide credit enhancements in the form of
guarantees or insurance, and guarantee sub-state
revolving loan fund debt. A small amount of additional
subsidization may be available each year in the form of
principal forgiveness, negative interest rate loans, or
grants. Additional subsidization can be provided to
projects that address affordability concerns, stormwater,
water and energy conservation, or sustainable project
planning, design, and construction.
GETTING A PROJECT FUNDED
Those interested in iearning more about CWSRF funding
opportunities should seek out the CWSRF program in
their state 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:
www.epa.gov/cwsrf.
ASSISTANCE FOR RESILIENCY PROJECTS
The CWSRF can fund a wide range of activities that can
help communities become more resilient to extreme
weather and permanent climactic changes. These
activities include energy and water efficiency upgrades,
stormwater management, and projects that strengthen
and protect wastewater infrastructure. Infrastructure
resiliency projects:
•	prevent interruption of collection system operation in
the event of a flood or natural disaster;
•	prevent floodwaters from entering a treatment
works;
•	maintain the operation of a treatment works and the
integrity of the treatment train in the event of a flood
or natural disaster; or
•	preserve and protect treatment works equipment in
the event of a flood or natural disaster.
States can also provide assistance to assess treatment
works' vulnerability to extreme weather or analyze the
best approach to integrate system and community
resiliency priorities, as long as the work is reasonably
expected to result in a capital project. Examples include
water/energy audits, drought management plans, and
asset management plans. These efforts help analyze
infrastructure needs and can result in a pipeline of
sustainable projects that are eligible for CWSRF funding.

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ENCOURAGING RESILIENT INFRASTRUCTURE
Priority setting systems are an effective tool that states
use to encourage resilient wastewater infrastructure.
Each CWSRF program has a priority system that evaluates
and ranks projects. Ranking criteria primarily focus on
public health and water quality, but can also address
other concerns including infrastructure resiliency. States
may encourage projects promoting system resiliency
through targeted rating criteria, such as offering priority
points, and funding incentives, such as reduced interest
rates and waiver of fees.
Additional subsidies in the form of principle forgiveness,
negative interest rate loans, and grants, can also be used
to encourage resiliency projects. In 2016, 17 CWSRF
programs offered financial incentives.
CWSRF programs can also use their administrative
resources to provide technical assistance and training in
the development of resiliency projects. Additionally,
many States use various marketing techniques to get the
word out to prospective recipients.
CLEAN WATER SUCCESS STORIES
Indiana
In 2008, severe flooding at a wastewater treatment plant
in Columbus, Indiana, demonstrated how extreme
weather and the prospect of climate change can threaten
infrastructure assets that are critical to the protection of
public health and water quality. Flooding was so serious
that staff at the plant were forced to cease operations
and evacuate due to rising waters. With the help of a
$51.8 million low-interest loan from the Indiana Finance
Authority's State Revolving Fund, a new state-of-the-art
wastewater treatment plant was built in a less flood-
prone location. In addition to primary and secondary
wastewater treatment technologies, the plant includes
auxiliary power sources that can be used in the event of
future emergencies. The plant was also designed to
accommodate future expansion and incorporation of
nutrient removal technologies.
New wastewater treatment plant in Columbus, Indiana
New York
Thanks to assistance from the New York
Environmental Facilities Corporation (NYEFC), the
Bergen Point Wastewater Treatment Plant in Suffolk
County is effectively managing the repair and
replacement of infrastructure assets, as well as
fortifying infrastructure against another severe
weather event like Superstorm Sandy. The project
included the planning, design, and construction
associated with the replacement of effluent outfalls.
This $75.4 million project is funded by a $16.8 million
Storm Mitigation Loan Program grant and a $58.6
million interest free loan executed in 2015. The
project will be completed in 2017 and meets NYEFC
requirements to provide storm resiliency measures,
which include minimum elevation requirements
relative to tidal change and sea-level rise.
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 832F16016
SEPTEMBER 2016
https://www.epa.gov/cwsrf

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