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Demonstrating
Results
Recognizing
Performance
America's Largest
Public Source of
Water Quality
Financing
Clean Water
State Revolving Fund
-------
Dear Colleagues,
It is my distinct honor to send forward the Clean Water State Revolving Fund (CWSRF) Annual Report for
Fiscal Year 2016.
EPA releases this annual report for several important reasons. First, it is intended to inform the CWSRF
stakeholders of national accomplishments and new initiatives. Next, and more specifically, the report dis-
plays key information on the program's impressive financial and environmental performance. Lastly, we
hope to share the unique and profound contributions CWSRF programs make to the protection of water
quality and public health across this great nation.
CWSRF programs had an exceptionally productive year, providing over $7.6 billion in financial assistance
through 1,362 assistance agreements. This represents a 31 percent increase in dollars of assistance
provided from fiscal year 2015. The national pace of the program, defined as assistance provided as a
percentage of assistance available, continues at a high level of 98 percent. Also, the national average in-
terest rate of CWSRF loans was 1.6 percent versus a market rate of 3.5 percent, generating a significant
subsidy for CWSRF borrowers.
These are impressive figures, yet the success of the CWSRF programs is reflected by much more than
numbers. Behind the financial and environmental benefits data for fiscal year 2016 is a story that encom-
passes a diverse range of communities, projects, and a multitude of federal and state funding partners.
EPA appreciates the dedication of all who work within the CWSRF program, with special recognition to the
EPA regions and states that have made these programs a success. Thank you for a job well done!
Sincerely,
Andrew Sawyers, Ph.D., Director
Office of Wastewater Management
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-------
Contents
Built for Success
2
2016 Performance Highlights
6
2016 Financial Overview
10
PISCES Recognition
16
CWSRF Success Stories
18
State Agencies That Manage CWSRF Programs
20
2016 Annual Report | 1
-------
Built for Success
The United States relies on a vast system of wastewater treatment infrastructure to protect public health
and water quality. Although these assets are largely out of the public eye, maintaining them is critically
important. This requires a proactive approach to the repair and replacement of aging infrastructure—but
doing so comes at a cost. As the American population has grown to over 300 million, wastewater
infrastructure needs are in the hundreds of billions of dollars. Meeting these needs requires affordable
financing options that support cost-effective solutions to water quality and public health problems.
The Environmental Protection Agency (EPA) has a long standing history of providing financial support in
the interests of public health and water quality. Beginning in the 1970s, the construction grants program
oversaw considerable investment in our nation's wastewater infrastructure. Despite this infusion of
federal dollars, later decades brought increased capital needs for the repair, replacement, expansion and
upgrade of publicly owned treatment works (POTWs). In the mid-1980s, EPA began to consider alternative
strategies to provide states with a permanent source of funding that would not be fully dependent on
federal contributions.
With this goal in mind, Congress introduced a new model for providing financial assistance. The CWSRF
programs were established by the 1987 amendments to the Clean Water Act providing states with a
continuous source of funding for water quality projects, including municipal wastewater treatment,
nonpoint source, watershed protection and restoration, estuary management, and more.
The CWSRF programs are state administered revolving ioan funds that are located in each of the 50
states and Puerto Rico. States fund projects according to each state's unique environmental and
economic priorities. This inherent flexibility not only allows states to provide low-cost financing for critical
water infrastructure projects, but direct resources where they are needed most.
These programs are capitalized annually by federal and state contributions. For every dollar contributed
by the federal government, states must contribute 20 cents. Since capitalization began in 1988, federal
contributions have reached $41 billion, with corresponding state contributions of $7.6 billion.
Capitalization is paying off. Over the past 29 years, the 51 CWSRF programs have multiplied these federal
and state contributions, resulting in over $120 billion in available funding for eligible projects during this
time period.
2016 Annual Report | 2
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Figure 1: CWSRF Programs are Water Infrastructure Banks
/ "Treatment
Works (POTWs)
Nonpoint Source
Projects
Estuary Protection
c Decentralized
Treatment
Nation
Fundifl^
° Stormwater
Management
Clean Water
State Revolving
Fund
Water Conservation
Watershed Projects
Energy Efficiency for
POTWs
° Water Reuse
POTW Physical
Security
° Technical
Assistance to
/
Small and
Medium /
POTWs
Holders
2016 Annual Report I 3
-------
Congress established the program with three eligibilities: the construction of publicly owned treatment
works, the implementation of a state nonpoint source management program, and the development and
implementation of a National Estuary Program Comprehensive Conservation and Management Plan.
However, state innovations and statutory changes have resulted in an evolution of project eligibilities
since the program was authorized in 1987.
Most recently, the Water Resources Reform and Development Act of 2014 amended the CWSRF
programs, expanding the program's eligibilities from three to eleven. The new eligibilities are broadly
defined, providing the opportunity to fund an even larger array of projects and reach a larger pool of
borrowers.
Today's CWSRF programs can fund a wide variety of water quality protection efforts. The program's
flexibility and range of project eligibilities enable states to target CWSRF funds to their specific water
quality priorities.
Construction of publicly owned treatment works
Nonpoint source projects
National estuary program projects
Decentralized wastewater treatment
Stormwater management
Projects that reduce demand for POTW capacity through water conservation, efficiency, or reuse
Watershed projects defined in Section 122 of the Clean Water Act
Projects that reduce the energy consumption needs of POTWs
Water reuse
Security measures at publicly owned treatment works
Technical assistance to small and medium publicly owned treatment works
Although the spectrum of CWSRF eligibilities is broad, the majority of CWSRF dollars still go towards
traditional wastewater treatment projects, as indicated in Figure 2. There will always be a need for
these types of projects, but with the augmented suite of CWSRF eligibilities, an important question that
federal and state partners face is how best to support innovation and ensure that CWSRF programs are
equipped to meet all of today's infrastructure needs.
Community infrastructure needs are diverse and challenging, but CWSRF programs have the tools to
provide effective infrastructure solutions to a wide range of borrowers, including communities of all
sizes, communities in need, and in some cases, private entities and households. With expanded
eligibilities, it is reasonable to expect that the portfolio of funded projects will also evolve. EPA is
committed to actively engaging with state partners to tap the untapped potential of these eligibilities
and achieve new environmental and economic benefits.
2016 Annual Report | 4
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Figure 2: CWSRF Programs Fund a Wide Range of Projects
Publicly-Owned
Treatment Works
Cooperative Federalism
The CWSRF model exemplifies
successful federal and state
cooperation on behalf of the
nation's environmental and
economic interests. State
programs fund water
infrastructure projects of many
types in communities of all
sizes.
2016 Annual Report I 5
Nonpoint &
Estuary 4%
Cumulative Assistance Provided
Total: $118.7 Billion
Nonpoint Source and Estuary: $4.8 Billion
Publicly Owned Treatment Works (POTW): $114.0 Billion
POTW Categories
H Secondary Treatment ($42.2 Billion)
j Advanced Treatment ($23.1 Billion)
J New Collector Sewers and Interceptors ($17.8 Billion)
J Infiltration/Inflow and Sewer Rehabilitation ($16.4 Billion)
Combined Sewer Overflow (CSO) Correction ($12.4 Billion)
~ Stormwater ($1.1 Billion)
I Recycled Water ($0.9 Billion)
Note: Total may not equal sum of the parts due to individual rounding.
-------
2016 Performance Highlights
The continued growth and success of the 51 CWSRF programs is a vital component of addressing our
nation's infrastructure challenges. The flexible financing terms and beneficial subsidies offered by the
state programs allow thousands of communities and other entities to upgrade and replace their
wastewater treatment and sewer infrastructure, protect waterbodies from point and nonpoint sources of
pollution, and achieve a wide variety of other environmental benefits - all at a reduced cost for the
public.
$120
Figure 3: CWSRF Cumulative and Annual Assistance
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In 2016, the CWSRF programs had a great year by extending 1,362 loans, providing more than $7.6
billion in assistance to a wide variety of eligible borrowers. This is almost $2 billion more assistance
provided than in 2015 and marks the second highest annual funding level in the history of the programs.
Cumulatively, the CWSRF programs have provided $118.7 billion dollars in assistance and 38,457
assistance agreements.
2016 Annual Report | 6
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Figure 4: CWSRF and Market Interest Rates
6%
5%
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A.
CWSRF low interest rates equal
significant savings.
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Subsidies are inherent to the CWSRF programs thanks to low interest rates. In fact, the average interest
rate charged by CWSRF programs has been consistently lower than the average market interest rate,
saving the American public billions of dollars. Even in today's competitive market CWSRF programs can
provide significant cost savings to borrowers. For example, when the market rate is 6 percent, a 3 percent
CWSRF loan of $100,000 over 20 years is equal in savings to a $23,000 grant, and a $77,000 loan at
the market rate. The CWSRF program's ability to offer below market interest rates is one of the most
powerful tools that states use to ensure that financing terms align with the borrower's ability to repay the
loan. States are aware of the infrastructure financing challenges faced across the country and continually
seek to provide the most cost effective solutions.
CWSRF programs have other tools at their disposal that give them the ability to provide further cost
savings above and beyond the savings provided by low interest rates. Referred to as additional
subsidization, these tools include principal forgiveness, grants, and negative interest loans. Since 2009,
over $4.2 billion in additional subsidization has been provided in the form of principal forgiveness and
direct grants. This additional financial assistance is critical to the CWSRF programs' ability to reach
economically stressed communities and incentivize high priority projects.
2016 Annual Report | 7
-------
Figure 5: Cumulative CWSRF Assistance Provided and Disbursements as a Percentage of
Funds Available
CWSRF Programs Manage Money
Effectively: In 2016, 98.4% of
available funds were committed in
assistance agreements.
¦ Assistance Provided
¦ Funds Disbursed
CWSRF programs have a proven track record of addressing the nation's critical wastewater infrastructure
and water quality needs by ensuring that this funding is distributed in a timely and expeditious matter.
States excel at putting CWSRF monies into executed assistance agreements where it can work on behalf
of American citizens. Trends reveal that the rate at which loans are made, and the rate at which funds are
disbursed has steadily increased over time. In 2016, 98.4% of available funds were committed, and
85.6% of total funds were distributed. It is important to note that CWSRF disbursements always trail loan
commitments slightly as funds are not disbursed to recipients until project costs are incurred.
EPA continues to work with states to build off this success. Ongoing efforts includes developing resources
such as the "Overview of Clean Water State Revolving Fund Eligibilities" paper published in 2016. This
paper informs states and potential borrowers of the many different types of projects that may be eligible
for CWSRF assistance. EPA's ongoing marketing and outreach campaign complements these resources
by working directly with states to identify and eliminate the barriers that prevent borrowers from
accessing CWSRF funding. EPA continues to highlight excellent state practices with respect to committing
and disbursing funds as part of its ongoing training, oversight, and outreach activities. Fostering this type
of communication between CWSRF programs will ensure that efficient commitment and disbursement of
funds continues.
2016 Annual Report | 8
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The previous figures paint a comprehensive picture of the success and efficiency of the CWSRF programs.
These are programs that not only provide significant funding for critical projects, but offer significant cost
savings. States have proven time and again that they are able to build off the federal investment provided
by annual capitalization through state matching contributions, strategic financing options, leveraging, and
other innovative practices.
The increasing ability to multiply the federal investment is further demonstrated by the relationship
between cumulative assistance and cumulative federal funding over time. The revolving nature of the
CWSRF programs means that each federal dollar can be reinvested to provide additional resources for
infrastructure spending. Figure 6 demonstrates how this powerful capability has grown overtime. To date,
each dollar of federal funds invested in the CWSRF programs has funded $2.90 worth of wastewater
treatment infrastructure. This positive impact of federal contributions is a testament to the power and
continued potential of the revolving loan fund model. For 29 years, CWSRF programs have revitalized
crumbling infrastructure, created jobs, and protected the health of the nation's waterbodies. As the funds
continue to grow, so too will the environmental, economic, and public health benefits they generate.
Figure 6: CWSRF Programs Multiply the Effect of Federal Investment
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$2.90 worth of water infrastructure.
2016 Annual Report | 9
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2016 Financial Overview
The Clean Water Act requires an annual financial audit of the 51 state-level CWSRF programs. Each state
and Puerto Rico conducts these audits according to the generally accepted accounting standards (GAAP)
established by the Governmental Accounting Standards Board (GASB). States often define their CWRSF
programs as ongoing enterprise funds under the GASB definitions of funds.
The standardized financial statements used for CWSRF programs include a statements of fund activity,
revenues, expenses, earnings, and assets. Because the 51 constituent CWSRF programs are
independent state-level entities, no nationally audited CWSRF program financial reports are available.
However, national aggregate financial statements have been developed using data entered in EPA's
National Information Management System between July 1, 2015 and June 30, 2016. The statements are
best viewed as non-audited, cash flow-based financial reports. We begin by providing the 2016 Financial
Highlights.
Statement of Fund Activity
This statement provides an overview of major indicators of fund activity, including capitalization grant
levels, project commitments, project disbursements, and subsidies provided. Both annual and cumulative
data are given.
Statement of Revenues, Expenses, and Earnings
This statement describes the overall performance of the CWSRF fund over the reporting period that is
reflected in the increase or decrease in net assets.
Statement of Cash Flows
This statement provides a detailed accounting of the actual flow of cash into and out of the CWSRF fund.
Statement of Net Assets
This statement describes CWSRF 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 assets
include grant funds that have been drawn from the federal treasury to date, but do not include total grant
awards. CWSRF assets also include state matching contributions that have been deposited in the fund.
2016 Annual Report | 10
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2016 Financial Highlights
. in FY 2016, the CWSRF programs provided over $7.6 billion in funding.
. CWSRF program equity (net assets) totals $48.2 billion, a $1.8 billion or 3.9 percent
increase from 2015.
• Project disbursements increased by $883 million in FY 2016 compared to the
previous year. In FY 2016, $5.1 billion in principal and interest repayments were
received, an increase of 4 percent over FY 2015.
• Interest earnings from loans and investments totaled more than $1.2 billion, allowing
operating revenues to exceed operating expenses by $128 million.
• Leveraged bond proceeds added $1.9 billion to program cash flows in FY 2016, and
along with co-financings allowed the CWSRF programs to fund additional projects.
This was a threefold increase compared to FY 2015
. In FY 2016, states paid more than $2.4 billion in principal and interest on leveraged
and state match bonds, within 1.5 percent of the 9-year average.
2016 Annual Report | 11
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Statement of Fund Activity (Millions of Dollars)
Annual Fund Activity
FY 2015
FY 2016
Federal Capitalization Grants
1,870.6
1,517.9
State Matching Funds
268.3
274.7
New Funds Available for Assistance
5,515.5
6,789.3
Executed Assistance Agreements
5,757.7
7,628.2
Project Disbursements
5,111.0
5,994.3
Cash Draws from Federal Capitalization Grants
1,715.7
1,505.7
Total Annual Subsidy
130.5
175.0
Grants
26.5
41.6
Negative Interest
0.0
0.0
Principal Forgiveness
103.9
133.4
Cumulative Fund Activity
Federal Capitalization Grants
39,464.3
40,982.2
State Matching Funds
7,373.2
7,647.9
Funds Available for Assistance
113,772.8
120,562.1
Executed Assistance Agreements
111,102.7
118,730.9
Project Disbursements
97,351.6
103,345.9
Cash Draws from Federal Capitalization Grants
37,743.5
39,249.2
Total Cumulative Subsidy
4,100.4
4,275.4
Grants
485.7
527.3
Negative Interest
0.0
0.0
Principal Forgiveness
3,614.7
3,748.0
Cumulative Executed Assistance Agreements as a percent of Funds Available for Assistance ("pace") was
98 percent in FY 2016, which shows that states have remained very successful in directing funds toward
projects that address important water quality problems. This strong rate of fund utilization 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.
2016 Annual Report | 12
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Statement of Revenues, Expenses and Earnings (Millions of Dollars)
Operating Revenues
FY 2015
FY 2016
Interest on Investments
296.3
250.3
Interest on Loans
997.1
1,004.9
Total Operating Revenues
1,293.3
1,255.1
Operating Expenses
Bond Interest Expense
915.8
874.5
Amortized Bond Issuance Expense
21.8
19.9
Administrative Expenses
55.0
58.4
Additional Subsidy Provided
130.5
175.0
Total Expenses
1,123.1
1,127.8
Nonoperating Revenues and Expenses
Federal Contribution (Cash Draws)
1,715.7
1,505.7
State Contributions
150.0
162.2
Transfers from (to) DWSRF
7.6
(7.9)
Total Nonoperating Revenues (Expenses)
1,873.2
1,660.0
Increase (Decrease) in Net Assets
2,043.5
1,787.3
Net Assets
Beginning of Year
44,378.0
46,421.5
End of Year
46,421.5
48,208.8
Operating revenues exceeded operating expenses by $128 million. While the current low interest
environment continued to depress CWSRF interest earnings, states have reduced their expenditures on
bonds by refinancing their debt at lower interest rates. The impact of reduced interest expenses on bonds
could be expected to benefit growth in net assets for the foreseeable future, particularly as rising market
rates increase earnings on investments.
Operating revenues are also affected by the additional subsidies in the form of grants or principal
forgiveness that have been required since the American Recovery and Reinvestment Act of 2009. The
subsidies reduce the principal and interest repayments to the program, which benefit borrowers but at
the same time reduce program revenues. The subsidy also increases the operating expenses.
CWSRF program equity (net assets) increased by $1.8 billion in FY 2016. This increase reflects the states'
efforts to minimize expenses while maximizing funds awarded for projects.
2016 Annual Report | 13
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Statement of Cash Flows (Millions of Dollars)
Operating Activities
FY 2015
FY 2016
Cash Draws from Federal Capitalization Grants
1,715.7
1,505.7
Contributions from States
150.0
162.2
Project Disbursements (Including Additional Subsidy)
(5,111.0)
(5,994.3)
Loan Principal Repayments
3,915.6
4,093.0
Interest Received on Loans
997.1
1,004.9
Administrative Expenses
(55.0)
(58.4)
Total Cash Flows from Operating Activities
1,612.3
713.1
Noncapital Financing Activities
Gross Leveraged Bond Proceeds
612.4
1,902.3
Bond Issuance Expense
(7.7)
(14.1)
State Match Bond Proceeds
118.3
112.5
Cash Received from Transfers with DWSRF
7.6
(7.9)
Interest Paid on Leveraged and State Match Bonds
(915.8)
(874.5)
CWSRF Funds Used for Refunding
(161.6)
(327.4)
Principal Repayment of Leveraged Bonds
(1,515.7)
(1,465.8)
Principal Repayment of State Match Bonds
(155.1)
(106.8)
Net Cash Provided by Noncapital Financing Activities
(2,017.4)
(781.9)
Cash Flows from Capital and Related Financing Activities
0.0
0.0
Investing Activities
Interest Received on Investments
296.3
250.3
Release (Deposit) of Leveraged Bond Debt Service Reserve
247.1
354.3
Net Cash Provided by Investing Activities
543.4
604.5
Net Increase (Decrease) in Cash and Cash Equivalents
138.3
535.8
Cash and Cash Equivalents
Beginning of Year
12,286.3
12,424.6
End of Year
12,424.6
12,960.4
2016 Annual Report | 14
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Statement of Net Assets (Millions of Dollars)
Assets
FY 2015
FY 2016
Cash and Cash Equivalents
12,424.6
12,960.4
Debt Service Reserve - Leveraged Bonds
4,389.9
4,035.6
Loans Outstanding
48,596.2
50,322.5
Unamortized Bond Issuance Expenses*
254.3
248.6
Total Assets
65,665.0
67,567.0
Liabilities
Match Bonds Outstanding
598.8
604.5
Leveraged Bonds Outstanding
18,644.8
18,753.8
Total Liabilities
19,243.6
19,358.3
Net Assets
Federal Contributions (Cash Draws)
37,743.5
39,249.2
State Contributions
5,329.4
5,491.6
Transfers - Other SRF Funds
(511.9)
(519.8)
Other Net Assets
3,860.5
3,987.8
Total Net Assets
46,421.5
48,208.8
Total Liabilities and Net Assets
65,665.0
67,567.0
* 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.
Total assets and total liabilities both saw an increase in FY 2016, by $1.9 billion and $115 million respec-
tively. As a result, net assets increased by $1.8 billion. This was a 3.9 percent increase from the previous
year and reflects the strong overall growth of the CWSRF programs.
Total assets have grown at a slower rate from FY 2012 through FY 2016 than in many of the previous
years. This is believed to be due to lower overall levels of leveraging activity, additional subsidization, and
lower investment earnings. At the same time, Loans Outstanding continue to grow at a steady rate, in-
creasing 28 percent in the last ten years.
2016 Annual Report | 15
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PISCES: Performance and Innovation in the
SRF Creating Environmental Success
The 29 year history of the CWSRF programs is a story of tremendous financial and environmental
success, but it is also a story marked by change. State programs don't have the luxury of remaining static
in their approach to infrastructure finance because the environmental and economic challenges
communities face are continually evolving. CWSRF programs and the communities they serve are
collaborating to meet infrastructure challenges head on, and their efforts are producing tangible results.
The funding partnership between borrower and funding agency is a wellspring of creativity that produces
infrastructure solutions and safeguards public health and water quality.
EPA's Performance and innovation in the SRF Creating Environmental Success (PISCES) Program
proposes to bring these efforts to light and recognize individuals at the community level for their hard
work and dedication. In 2017, PISCES will recognize eligible recipients that make innovative contributions
to the advancement of water quality through the CWSRF programs. Projects will be recognized based on
their merits under the following evaluation criteria:
Water Quality, Public
Health, or Economic
Benefits
Sustainability
Environmental
innovation
Participation in PISCES is voluntary, but EPA welcomes participation from all CWSRF programs. In the
spring of each calendar year, a national call will go out inviting states to nominate one project for
recognition. States that elect to participate will fill out a nomination template that describes the project
and how it satisfies one or more of the evaluation criteria. Nomination templates must be submitted to
EPA by July 1 of each year. Once approved, a certificate of recognition will be prepared for the recipient
community for each project. Approved projects and their associated funding agencies will also be
published in an annual project compendium produced by EPA.
2016 Annual Report | 16
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After projects are reviewed arid approved, a panel comprised of staff from EPA will select five projects
from those submitted. These projects will be judged by the EPA panel to be exceptionally distinguished,
deserving special recognition with respect to the PISCES evaluation criteria. Each of the five selected
projects will be featured on posters that will be displayed at the Council of Infrastructure Financing
Authority's National Workshop held each fall. The five selected project communities will receive a piaque
and will have their project recognition announced by the Director of EPA's Office of Wastewater
Management.
To be nominated for PISCES, a project must have an executed assistance agreement in place. The
project's size or cost should not be a determining factor in the selection process. Projects may be
nominated during any phase of their development, from planning and design through completion.
Planning and design are eligible so long as the plan has a reasonable prospect of producing one or more
eligible capital projects.
The hard work and commitment of state programs and the communities they support built and
maintained the largest source of public water quality financing in the country, yet there is work left to do.
Communities continue to face serious technical, financial, and managerial challenges when it comes to
financing water infrastructure. CWSRF programs must continue to lead the way, providing environmental
and financial benefits where they are needed most. PISCES will tell that story.
To learn more about PISCES or obtain a copy of the nomination template and evaluation criteria, please
visit the national CWSRF website at www.epa.gov/cwsrf.
Questions about PISCES can be directed to Michael Goralczyk at goralczyk.michael@epa.gov or the
CWSRF website.
Innovative Stewards
State programs and their
community funding partners are
to be commended for their joint
dedication to the protection of
public health and water quality.
They are the innovators and
stewards that build, operate,
and maintain our nation's
critical wastewater infrastructure
assets.
2016 Annual Report | 17
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Region 7
Nebraska Department of
Environmental Quality: over 75% of
communities in the state of Nebraska have
populations of less than 800. Nebraska's CWSRF
understands the challenges small communities
face in financing critical infrastructure and is
providing relief through its Small Town Grant
Program. To date, the program has provided over
$8 million to eligible CWSRF projects.
CWSRF Success Stories
Region 10
Coeur D'Alene, ID: Beginning in 2010, a
series of three phased loans totaling $40.7
million have allowed the city of Coeur D'Alene to
construct additional primary and secondary
wastewater treatment infrastructure, upgrade
tertiary filtration capabilities, and adopt a new
chemical treatment system. These phased loans
have a weighted average interest rate of 1.75%
which will save Coeur D'Alene over $11.4 million
in interest costs over time.
Region 8
Whitefish, MT: The CWSRF program
provided an $8.4 million for the purchase of
"developmental rights" to 3,020 acres of
forested land, to prevent future residential
development in an area that has 2 active surface
water intakes for the City of Whitefish's drinking
water system. The easement will also protect
exceptional wildlife habitat for grizzlies, Canada
lynx, wolverine and numerous other species. The
total cost of this project was $16.7 million, with
the remainder of the funding mostly coming from
the US Forest Service, U.S. Fish and Wildlife
Service, and a generous donation from the land
owner ($3.9 million).
Region 9
Sacramento, CA: With nearly $1.6 billion in
CWSRF funding the EchoWater Project is one of
the largest public works projects in Sacramento's
history. When completed, infrastructure upgrades
will reduce ammonia discharged to local waters
by 95%. Favorable loan terms will also save rate
payers over half a billion dollars in interest
payments.
The Clean Water State Revolving Fund programs have
made a unique, lasting contributio
restoration of our nation's wate
2016 Annual Report | 18
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Region 5
Ohio Environmental Protection Agency:
Since 2015, the Ohio CWSRF has awarded over $145
million at a 0% interest rate for projects at publicly-
owned wastewater treatment plants aimed at
reducing the levels of phosphorus and other nutrient
pollutants that give rise to alga! blooms. The
discounted rates are made available for the portion of
the project that is directly attributable to the nutrient
reduction. Funds can be used for planning, design,
and construction. Priority is given to projects that are
in the Lake Erie watershed or other nutrient excessive
areas.
Region 2
Hudson, NYl A grant from the New York
CWSRF program allowed the City of Hudson to
construct, a network of green infrastructure
practices that will manage stormwater runoff and
reduce combined sewer overflows to the Hudson
River, the drinking water source for other
communities. The green infrastructure practices
are part of a storm sewer separation project that
eliminates a portion of the City's stormwater from
entering the collection system.
Region 1
Great Barrington, MA: This $4 million
project included the replacement of aging
equipment, achieving higher levels of
phosphorous removal, and repairs to the
treatment plant's collection system to address
infiltration and inflow. Upgrades will improve
system reliability and substantially reduce
phosphorous loads discharged to the Housatonic
River.
Region 3
Delaware Department of Natural
Resources and Environmental
Control: The state's CWSRF program provides
loans directly to farmers to ensure that nonpoint
source pollution from the farms is addressed in a
manner that is environmentally sound and cost
effective. The farmers sell their products to the
producers who in turn repay the farmers' CWSRF
loans directly to DNREC under the partnership
agreement. The producers remit the balance
owed to the farmers. Below-market interest rates
and flexible repayment terms help farmers
implement nutrient management techniques,
composting systems, and other agricultural best
practices that protect the integrity of Delaware's
waters.
Region 4
Grand Strand, SC: When three separate
wastewater treatment facilities were approaching
the limit of their treatment capacity, the Grand
Strand Water and Sewer Authority found an
infrastructure solution through the South Carolina
CWSRF program. The construction of a new
treatment facility modernized aging infrastructure
and increased treatment capacity by consolidating
and interconnecting with the existing facilities, all
with the favorable loan terms that are the
hallmark of the CWSRF.
2016 Annual Report | 19
Region 6
North Fort Bend Water Authority, TX: The
Texas CWSRF is providing over $11 million to The
North Fort Bend Water Authority for the construction
of the Grand Lakes Reclaimed Water System. The
reuse system will treat effluent which will help to
maintain amenity lake levels and irrigate green
spaces. This system is anticipated to supply over half
a million gallons of reuse water each day through
approx. 52,000 feet of purple pipe. By reusing
treated wastewater, the district will be reducing the
amount groundwater pumped and will assist in
meeting the Fort Bend Subsidence District
regulations on alternative water usage.
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State Agencies That Manage CWSRF Programs
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
EPA Region 4 — Atlanta Georgia
Alabama Department of Environmental Management
Florida Department of Environmental Protection
Georgia Environmental Facilities Authority
Georgia Environmental Protection Division
Kentucky Infrastructure Authority
Massachusetts Department of Environmental Protection Kentucky Division of Water
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
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 Development Authority
West Virginia Department of Environmental
Protection
West Virginia Infrastructure and Jobs Development
Council
Mississippi Department of Environmental Quality
North Carolina Department of Environmental 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 Finance Authority
Indiana State Budget Agency
Michigan Department of Environmental Quality
Michigan Municipal Bond Authority
Minnesota Pollution Control Agency
Minnesota Public Facilities Authority
Minnesota Department of Agriculture
Ohio Environmental Protection Agency
Ohio Water Development Authority
Wisconsin Department of Natural Resources
Wisconsin Department of Administration
2016 Annual Report | 20
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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
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
To access state program web sites please visit:
www.epa.gov/cwsrf
The public health and environmental protection benefits provided by
the CWSRF wouldn't be possible without the dedicated
implementation efforts of EPA's state partners. Their work is the
foundation of the program's success.
2016 Annual Report | 21
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For more information about the Clean Water State Revolving Fund, please contact us at:
United States Environmental Protection Agency
Office of Wastewater Management
Clean Water State Revolving Fund Branch
1200 Pennsylvania Avenue NW (4204M)
Washington, DC 20460
www. e pa .gov/c ws rf
Office of Water • March 2017 • EPA Publication 832R17007
Clean Water
State Revolving Fund
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