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A Message from the Office Director
I am pleased to present the Drinking Water State Revolving Fund's 2016
Annual Report. The DWSRF is a $34 billion federal-state partnership
dedicated to protecting America's public health. The program finances the
construction and rehabilitation of critical drinking water infrastructure, along
with public health-focused programs and activities across our nation.
Investments in drinking water systems and programs provide assurances of
continued delivery of safe drinking water to homes, schools, and businesses,
and are key to strong local economies across the United States.
In 2016, we made tremendous progress towards maximizing the use of each federal dollar while
concurrently demonstrating exceptional financial integrity across the state DWSRF programs. Each
additional investment in drinking water infrastructure projects and activities through the DWSRF
translates into additional jobs and improved public health for our fellow citizens.
Ensuring that our nation's drinking water infrastructure delivers clean and safe water is a major
challenge. The DWSRF offers tools and flexibilities to states to help meet this challenge.
Moving forward, we have a tremendous opportunity to continually maximize the use of DWSRF funds
and leverage all available resources in order to meet the great drinking water-related public health
needs across the U.S. Many states have successfully built financial modeling tools that accurately
predict the revolving fund's cash availability over time. These cash flow analysis tools help state
managers evaluate the "supply side" of drinking water infrastructure funding sources: the amount of
money that is potentially available to lend for drinking water infrastructure construction. The most
successful DWSRF programs pair these financial projections with dynamic outreach to community water
systems throughout their state, supporting the "demand side" of the program.
As a reminder, the DWSRF administrative set-asides are a funding source for multiple tools to
strengthen public health protection through the DWSRF program, including development of a cash flow
model. This set-aside may also be used for outreach to drinking water systems and to help those
systems become ready to proceed for drinking water infrastructure financing and construction. The
EPA's national DWSRF team stands ready to assist our state partners in achieving the fullest utilization
of all sources of DWSRF funds to maximize the protection of public health in America.
I welcome this opportunity to share our accomplishments with you.
Sincerely,
Peter C. Grevatt, Ph.D., Director
Office of Ground Water and Drinking Water
2
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Table of Contents
I. About the Drinking Water State Revolving Fund 4
II. Highlights From 201 6 5
ML How States Used DWSRF Infrastructure Funds 7
IV. Innovative and Effective State Management 8
V. Maintaining the Fund's Growth and Revolving Nature 9
VI. 2016 Financial Overview 10
VII. 201 6 Financial Activity for DWSRF Set-Asides 1 5
3
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I. About the Drinking Water State Revolving Fund
The 1 996 Amendments to the Safe Drinking Water
Act created the Drinking Water State Revolving Fund
(DWSRF) to help communities finance infrastructure
improvements needed to protect public health and
ensure compliance with drinking water standards.
Each of the 50 states and Puerto Rico operate their
own DWSRF programs and receive annual grants
from the EPA, which in turn provide low-interest loans
and other types of assistance to public water systems.
The DWSRF programs are managed or co-managed
by state agencies that oversee drinking water
systems and can therefore effectively prioritize
infrastructure needs for funding.
The Safe Drinking Water Act (SDWA) directs states
to give priority for the use of DWSRF project funds
to:
• address the most serious risks to human health,
• ensure compliance with the requirements of the
SDWA, and
• assist systems most in need on a per household
basis according to state affordability criteria.
Not all drinking water compliance problems,
however, can be solved through capital financing of
infrastructure improvements. With that in mind,
Congress gave states the option to take a portion of
their federal capitalization grant for "set-asides." Set
-asides can be used to administer state programs,
provide technical assistance and training for water
utilities, and fund other activities that support
achieving the public health protection objectives of
the SDWA. The programs and activities supported by
set-asides include DWSRF administration, water
system capacity development, operator certification,
source water protection, small systems technical
assistance and support for the state Public Water
System Supervision (PWSS) program. Each state
determines the appropriate balance between water
infrastructure projects and set-asides for their unique
circumstances.
Through June 30, 2016, nearly $32.5 billion has
been signed into nearly 13,000 DWSRF loans* by
the state programs to water systems to fund critical
infrastructure needs. Furthermore, nearly $2.9 billion
has been provided to states and utilities to support
the non-infrastructure set-asides programs.
The DWSRF is an exceptionally versatile tool. In
2016, the DWSRF loan program improved the lives
of nearly 50 million Americans, returning systems to
compliance and maintaining systems with aging
infrastructure, while also focusing on small systems
that are most at risk. Systems serving fewer than
1 0,000 people accounted for 73 percent of the loans
signed by state programs.
*Throughout this report, "loans" and "assistance
agreements" are used interchangeably.
4
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II. Highlights From 2016
A. Lending and Disbursements Approach Record High
DWSRF funds are In high demand. The program
answered this demand by increasing infrastructure
lending by 18 percent in 2016, with $370 million
more lent to local drinking water systems over the
previous year. States provided nearly $2.5 billion in
new infrastructure loans, the most assistance ever
provided outside of the American Recovery and
Reinvestment Act (ARRA) of 2009. Implementation of
The Unliquidated Obligations Strategy was an
important contributor to the large annual increase in
spending in 201 6.
The DWSRF operates as a reimbursement program.
Funds are released from the state to localities once
eligible costs are incurred. This year, the program
experienced a significant jump in construction activity.
Disbursements to reimburse incurred construction costs
increased 24 percent over the previous year, with
$466 million more going to pay invoices over the
previous year. With this jump, the program disbursed
nearly $2.4 billion to local drinking water systems,
the highest-ever amount of disbursements outside of
one year during ARRA.
B. Unliquidated Obligations Reach Record Low
Each Congressionally-appropriated DWSRF dollar
used by local utilities and states for drinking water
quality activities translates into better public health
protection for the American people. With that in
mind, EPA partnered with state DWSRF managers,
the Council of Infrastructure Financing Authorities and
the Association of State Drinking Water
Administrators to develop and implement the 2014
Unliquidated Obligation Strategy. The Strategy
provided specific drawdown targets for the federal
funds and best practices to improve the flow of funds
to high-priority public health needs.
In the span of just 3 years, the effort yielded
outstanding results: the national program collectively
reduced federal ULOs by over one billion dollars,
from $2.3 billion in October 2013 to $1.2 billion in
October 2016, nearly a 50 percent decrease.
Furthermore, in August 201 6, we hit the lowest ULO in
program history at about $650 million. That's about
two-thirds of an average year's Congressional
appropriation. The increase from August to October
was driven by the annual awarding of that year's
DWSRF grants to states.
To reach this major achievement, many states
dramatically transformed their programs to more
efficiently use all available funds and to improve
outreach to communities.
Exhibit 1: DWSRF National Annual Disbursements
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Exhibit 2: DWSRF ULOs
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II. How States Used DWSRF Infrastructure Funds
In State Fiscal Year (SFY) 2016, the DWSRF
provided nearly $2.5 billion in assistance and
entered into 708 assistance agreements. The majority
of funding was used to assist with transmission/
distribution and treatment projects, and communities
with populations of 10,000 or less accounted for 28
percent of all assistance provided. Since 1997, the
DWSRF has provided over $32 billion In assistance,
and 35 percent of this assistance has been directed
to communities with populations of 10,000 or fewer.
In SFY 2016, the DWSRF facilitated assistance
agreements with a broad diversity of communities,
emphasizing a strong focus on communities serving
10,000 individuals or fewer. In terms of dollars, 28
percent of the SFY 2016 funds provided were
provided to these smaller systems. Principal
forgiveness was a key tool utilized in these
agreements; 70 percent of systems serving
populations of 500 or less received principal
forgiveness, with 42 percent of those systems
receiving full principal forgiveness. As the charts
show, the percentage of SFY 201 6 funds directed at
small systems decreased compared to the cumulative
data, while number of assistance agreements
directed at small systems is slightly greater than the
cumulative percentages.
Exhibit 3: Assistance by Project Type (Millions of Dollars)
SFY 1997-2016
SFY 2016
¦ SToraee
¦ Sovtc
¦ Transmission &
Dinrltwtiorv
¦ Treatment
¦ Otter
Exhibit 4: Assistance by Community Size
Millions of Dollars
Number of Loans
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$8,681
$877
$12,293
$897
$4,998
$317
$5,000
$277
5103
$1,491
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2885
2381
4134
2530
SFY 1997-2016
SFY 2016
SFY 1997-2016
SFY 2016
¦ > 100,000
10,001 to 100,000
¦ 3,301 to 10,000
¦ 501 to 3,300
¦ <501
7
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IV. Innovative and Effective State Management
In 2016, state DWSRF programs continued to take
advantage of the extraordinary flexibility for eligible
projects under the DWSRF to effectively manage their
funds and aid their communities. Examples include
funding to support local strategies to maximize
community benefits associated with infrastructure
investments. This includes such innovations as:
• Incentivizing the incorporation of water and energy
efficiency into project planning and construction.
• Providing technical assistance to communities for
training and development of asset management
plans.
• Utilizing the Interagency Preliminary Engineering
Report template (developed by the U.S.
Environmental Protection Agency, U.S. Department
of Agriculture, U.S. Department of Housing and
Urban Development, and Indian Health Service) to
ensure projects have evaluated technically-feasible
alternatives and life-cycle costs, incorporate
sustainability aspects into projects being funded,
and facilitate co-funding of projects across federal
programs.
8
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V. Maintaining the Fund's Growth and Revolving Nature
To ensure the DWSRF meets both current and future
needs, the fund's financial growth is carefully
balanced with the need to provide subsidy and
address the most critical public health needs. State
DWSRF programs balance all of these objectives
while maintaining the growth of the fund to ensure it
remains available for a growing nation that relies on
strong infrastructure as a fundamental pillar of a
strong economy.
Exhibit 5: DWSRF Cumulative Assistance Provided
Exhibit 6: DWSRF Annual Net Repayments
1000
_ 600
U1
I 500
5 400
*The sharp jump in repayments in 201 1 and 2012 was due to a large number of borrowers refinandng older loans, driven
by the low interest rate environment.
9
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VI. 2016 Financial Overview
A. Financial Success
The fundamental purpose of the DWSRF is to provide
low-cost capital to finance sustainable/ long-term
public health protection. The fund's ability to assist
projects that protect public health is dependent on
three pillars:
• continued federal capitalization,
• innovative, intelligent, and effective state
management, and
• maintaining the fund's growth and revolving
nature.
Since the DWSRF's inception, Congress has
appropriated about $18 billion into the fund. These
funds have gone both to the revolving loan fund and
the state set-asides. Together, the 51 state DWSRF
programs have effectively leveraged these funds to
provide nearly $32.5 billion in loans to the nation's
water utilities and nearly $2.9 billion to both states
and utilities for set-aside programs to support
capacity development, source water protection, and
operator training and certification. For the loan
program, this translates into $1.80 in disbursements
for every $1 drawn from the Treasury.
From the 2010 appropriation onward, Congress
mandated that a certain portion of the federal
capitalization grant be provided to borrowers as
additional subsidy. This change allowed states to aid
communities most in need and incentivize particular
types of projects. Because this subsidy comes from the
federal dollars, continued federal support is needed
to maintain this benefit and continue growing the
fund.
B. Financial Reports
The Single Audit Act designates the threshold for
auditing federal programs. Most DWSRF programs
receive a program-specific audit in addition to
auditing required under the Single Audit Act. Because
the 51 DWSRF programs are independent state-level
entities, no nationally-audited DWSRF program
financial reports are available. Using the EPA's
National Information Management System, national
aggregate financial statements, best viewed as non-
audited cash flow-based reports, are shown on the
following pages.
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1. Statement of Fund Activity
As shown in Exhibit 7 below, in SFY 201 6, DWSRF programs
executed approximately $2.5 billion worth of assistance
agreements, a significant increase from 2015. Overall for
SFY 2016/ assistance provided as a percent of funds
available ("pace of funds provided") was 95%, indicating
that states have successfully directed federal funding to
drinking water infrastructure projects. This robust percentage
of funds utilization also demonstrates a high demand for
DWSRF funding. A portion of the disbursed funds are used to
provide principal forgiveness to disadvantaged communities
or to help finance specific water systems meeting the criteria
for state priority funding; in SFY 2016, more than $208
million was provided in the form of principal forgiveness.
While the amount of federal capitalization grant decreased
in 2016, the total amount of new funds available for
assistance increased. The amount of new funds includes new
investments, net leveraged bonds, and loan principal and
interest repayments. The dollar amount of project
commitments also increased, reflecting the overall increase in
new funds available.
Exhibit 7: Statement of Fund Activity (Millions of Dollars)
Annual Fund Activity FY2015 FY20T6
Federal Capitalization Grants 933.2 834.9
State Matching Funds 165.5 155.9
New DWSRF Funds Available for Assistance 1,867.8 2,107.1
Project Commitments (Executed Loan Agreements) 2,102.2 2,470.8
New Set-Aside Funds Available for Assistance 166.3 166.2
Project Disbursements from the Fund 1,906.4 2,372.5
Cash Draws from Federal Capitalization Grants (Fund)- 951.7 1,039.0
Cash Draws from Set-Asides' 187.1 192.9
Cumulative Fund Activity
Federal Capitalization Grants 17,517.5 18,352.4
State Matching Funds 3,293.8 3,449.7
DWSRF Funds Available for Assistance 32,073.5 34,180.6
Project Commitments (Executed Loan Agreements) 30,01 1.1 32,481.8
Set-Aside Funds Available for Assistance 2,706.4 2,872.5
Project Disbursements from the Fund 25,673.1 28,045.6
Cash Draws for Fund 14,004.9 15,043.9
Cash Draws for Set-Asides 2,383.5 2,576.4
Loan Principal Forgiven 193.2 208.6
1 This includes funds drawn from previous grants.
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2. Statement of Revenues, Expenses, and Earnings
This statement Is a useful tool to view the sources of
funds and the expenses of the DWSRF program
nationally, and how those impact net assets. For
2016, interest earnings exceeded expenses, adding
to the growth of the program. From 2015 to 2016,
operating expenses increased by $29.4 million, with
an increase in DWSRF funds used for refunding
(Exhibit 8). DWSRF net assets increased by $1.1
billion, reflecting the steady increase in assets since
the program's inception.
3. Statement of Cash Flow
This statement is a useful tool to view the impact of
DWSRF activities on cash on hand. DWSRF programs
require a reserve to maintain their programs. With
the program reaching its first milestone under the
ULO strategy of spending down built up federal
funds, it is expected that states will need to draw
heavily from state cash reserves in the near future to
pay invoices from the high level of lending at which
they are operating. As indicated in Exhibit 9, DWSRF
loan disbursements to be repaid increased by
$450.7 million from 2015 to 2016, reflecting the
overall increase in project disbursements. Loan
principal repayments and state contributions
increased, while loan interest remained nearly
constant since the previous state fiscal year. Given
the increase in loan disbursements to be repaid, it is
expected that principal repayments will increase
during upcoming years.
While state match bond proceeds decreased by
$41.3 million, leveraged bond proceeds added
$260.3 million to program cash flows. This reflects an
increase in bond issuance in 2016. In SFY 2016,
states paid $602.1 million in principal and interest on
leveraged bonds and state match bonds,
demonstrating a decrease of $26.8 million from the
previous year. Bond issuance is one method by which
states may balance their loan demand with the need
to maintain the long-term sustainability of their
revolving funds.
Exhibit 8: Statement of Revenues, Expenses, and Earnings (Millions of Dollars)
Operating Revenues FY2015 FY2016
Interest on Fund Investments 67.3 60.1
Interest on DWSRF Loans 294.0 293.8
Total Operating Revenues 361.3 353.9
Operating Expenses
Bond Interest Expense 150.2 141.2
DWSRF Funds Used for Refunding2 38.4 61.2
Amortized Bond Issuance Expense 6.9 7.0
Total Operating Expenses 200.1 209.4
Non-Operating Revenues and Expenses
Cash Draws from Federal Capitalization Grants1 951.7 1,039.0
Loan Principal Forgiven 193.2 208.6
State Contributions3 86.8 1 18.5
Transfers from (to) CWSRF (7.6) 7.9
Total Non-Operating Revenues (Expenses) 1,224.1 1,374.0
Increase (Decrease) in Net Assets 1,003.6 1,101.2
Net Assets
Beginning of Year 14,928.7 15,932.3
End of Year 15,932.3 17,033.5
1 This includes funds drawn from previous grants.
2 Refunding occurs when outstanding bonds are retired with newly-issued bonds.
12
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Exhibit 9: Statement of Cash Flow (Millions of Dollars)
Operating Activities
Cash Draws from Federal Capitalization Grants1
State Contributions3
Loan Disbursements to be Repaid
Loan Principal Forgiven
Loan Principal Repayments
Interest Received on Loans
Total Cash Flows from Operating Activities
Non-Capital Financing Activities
Gross Leveraged Bond Proceeds
Bond Issuance Expense
State Match Bond Proceeds
Cash Received from Transfers with CWSRF
Interest Paid on Leveraged and State Match Bonds
DWSRF Funds Used for Refunding2
Principal Repayment of Leveraged Bonds
Principal Repayment of State Match Bonds
Total Cash Flows from Non-Capital Financing Activities
Investing Activities
Cash Flows from Capital and Related Financing Activities
Interest Received on Fund Investments
Deposits to Debt Service Reserve for Leveraged Bonds
Total Cash Flows from Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents
Beginning of Year
End of Year
1 This includes funds drawn from previous grants.
2 Refunding occurs when outstanding bonds are retired with newly-issued bonds.
3 This includes state match but excludes state match bonds.
FY2015
951.7
86.8
(1713.2)
(193.2)
1,009.2
294.0
435.3
65.3
(2.2)
78.7
(7.6)
(150.2)
(38.4)
(394.0)
(84.7)
(533.0)
0
67.3
(59.8)
7.4
(90.3)
4,976.7
4,886.4
FY2016
1,039.0
1 18.5
(2,163.9)
(208.6)
1,186.9
293.8
265.6
325.6
(3.8)
37.4
7.9
(141.2)
(61.2)
(415.6)
(45.3)
(296.2)
0
60.1
51.7
1 1 1.8
81.2
4,886.4
4,967.6
13
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4. Statement of Net Assets
Total assets increased by $1 billion, while total
liabilities decreased by $97.9 million; therefore, net
assets increased by $1.1 billion, or 6.9 percent of
total 201 5 net assets. This reflects the overall health
of the DWSRF program, which has shown a net asset
growth of at least 6 percent per year over the past
1 0 years (Exhibit 1 0).
Exhibit 10: Statement of Net Assets (Millions of Dollars)
Assets FY20T5 FY2016
Cash and Cash Equivalents 4,886.4 4,967.6
Debt Service Reserve - Leveraged Bonds 803.6 751.9
Loans Outstanding 14,820.2 15,797.3
Unamortized Bond Issuance Expenses4 72.4 69.3
Total Assets 20,582.7 21,586.0
Liabilities
Match Bonds Outstanding 243.0 235.1
Leveraged Bonds Outstanding 4,407.4 4,317.5
Total Liabilities 4,650.4 4,552.5
Net Assets
Federal Contributions 14,004.9 15,043.9
State Contributions 2,468.7 2,587.2
Transfers - Other SRF Funds (7.6) 7.9
Other Net Assets (533.8) (605.6)
Total Net Assets 15,932.3 17,033.5
Total Liabilities & Net Assets 20,582.7 21,586.0
4 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.
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VII. 201 6 Financial Activity for DWSRF Set-Asides
States may reserve a portion of their annual
capitalization grants to fund non-infrastructure
programs supporting safe drinking water. Set-asides
expand the impact of DWSRF by helping to ensure
that systems have the necessary technical,
managerial and financial capacity to get the
greatest public health protection from their drinking
water infrastructure investments. Each of the four
DWSRF set-aside categories has a different
connection to public health. Upon receiving
capitalization grants, states may reserve funds under
each of the four categories at their discretion and up
to the maximum allowable limit. The following
sections of this report provide details about the
overall financial management of set-asides as well
as well as a more specific breakdown of
expenditures in particular categories
Administrative and Technical Assistance (4% Set-Aside)
States may set aside up to 4 percent of their annual
capitalization grants to administer their DWSRF
programs and to provide technical assistance to
systems of any size. For example, states may use
these funds to hire staff or to assist systems with
project plans or loan applications.
Small Systems Technical Assistance (2% Set-Aside)
States may reserve up to 2 percent of their annual
capitalization grant to fund programs providing
assistance to drinking water systems serving 1 0,000
people or fewer. Small systems often face greater
challenges than larger systems, and they frequently
have difficulty obtaining funding. This set-aside helps
them to build their capacity and to better align their
operations with current population needs.
State Program Management (10% Set-Aside)
This set-aside may be used to fund Public Water
System Supervision (PWSS) programs overseeing all
drinking water programs in individual states.
Funding from this set-aside can be used for source
water protection work, capacity development,
operator certification programs and other activities.
Local Assistance and Other State Programs (15% Set-
Aside)
States can use up to 15 percent of their
capitalization grant (but no more than 10 percent for
any single activity) to provide loans for the purchase
of land, to support source water protection, to
implement voluntary water quality protection
activities or to assist PWSSs with their capacity
development.
15
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Exhibit 1 1: Statement of Set-Aside Revenues, Expenses, and Earnings (Millions of Dollars)
1. Statement of Set-Aside Revenues, Expenses, and
Earnings
As expected, Exhibit 11 shows that 2016 operating
expenses greatly exceeded operating revenues because
of the nature of set-aside funding. Between 2015 and
201 6, set-aside net assets increased by $4.5 million, due in
large part to grants made under the 10% set-aside.
Operating Revenues FY2015 FY2016
Interest on 1452(k) Loan Account Investments 2.77 3.79
Interest on 1452 (k) Loans 0.03 0.03
Total Operating Revenues 2.80 3.81
Operating Expenses
Operating Expenses Under the 4% Set-Aside 36.3 34.1
Expenses: 2% Set-Aside, Small Systems Technical Assistance 1 4.4 1 5.2
Expenses: 10% Set-Aside, State Program Management 72.2 81.7
Grants Made Under the 1452(k) Set-Aside 62.5 61.3
Total Operating Expenses 185.4 192.3
Non-operating Revenues and Expenses
Federal Contribution 187.1 192.9
Total Non-operating Revenues (Expenses) 187.1 192.9
Increase (Decrease) in Net Assets 4.5 4.5
Net Assets
Beginning of Year 40.6 45.1
End of Year 45.1 49.6
16
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2. Statement of Set-Aside Cash Flow
This statement indicates a strong continuous
demand for set-aside funding. States took
$192.9 million for set-asides in 2016 (Exhibit
12), similar to previous years. Total national set-
aside awards have fluctuated from 14% to 16%
over the past 1 0 years.
Exhibit 12: Set-Aside Statement of Cash Flow (Millions of Dollars)
Operating Activities
Federal Contribution
1452(k) Loan Disbursements Made to Borrowers
1452(k) Loan Principal Repayments
Interest Received on 1452(k) Loans
Administrative Expenses Under the 4% Set-Aside
Expenses: 2% Set-Aside, Small Systems Technical Assistance
Expenses: 10% Set-Aside, State Program Management
Grants Made Under the 1 452(k) Set-Aside
Total Cash Flows from Operating Activities
Non-capital Financing Activities
Net Cash Provided by Non-capital Financing Activities
Cash Flows from Capital and Related Financing Activities
Investing Activities
Interest Earnings on 1452(k) Loan Account Investments
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Beginning of Year
End of Year
17
FY2015
FY2016
187.1
192.9
(1.7)
(0.7)
0.9
1.1
0
0
(36.3)
(34.1)
(14.4)
(15.2)
(72.2)
(81.7)
(62.5)
(61.3)
0.9
1.1
0
0
0
0
2.8
3.8
2.8
3.8
3.7
4.9
35.9
39.6
39.6
44.5
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3. Statement of Set-Aside Net Assets
As shown in Exhibit 13, the overall federal
contribution to set-asides totaled more than $2.6
billion as of 2016, demonstrating the value of
set-asides as an integral part of state DWSRF
programs.
4. Set-Asides Taken as Percentage of Capitalization
Grants
For 2016, states took more of the State Program
Management (10%) set-aside and Local Assistance
(15%) set-aside than they have historically (Exhibit
14). This indicates a greater reliance on the DWSRF
to fund these activities.
Exhibit 1 3: Statement of Set-Aside Net Assets (Millions of Dollars)
Assets FY2015 FY2016
Cash and Cash Equivalents 39.6 44.5
Loans Outstanding 5.5 5.1
Total Assets 45.1 49.6
Liabilities
Total Liabilities 0 0
Net Assets
Federal Contributions 2,383.5 2,576.4
Other Net Assets (2,338.3) (2,526.8)
Total Net Assets 45.1 49.6
Total Liabilities & Net Assets 45.1 49.6
8.0%
Exhibit 14: Set-Asides Taken as a Percentage of Capitalization Grants
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Admin & Technical Small Systems State Program Local Assistance
Assistance Technical Assistance Management
¦ SFY 1997 - 2016 ¦ SFY 2016
5.8%
1 6.
,8%
¦=
3.4% 3
.4%
*+. zJ /o I
1.5% 1.6%
II ¦¦
18
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Exhibit 15: Set-Aside Expenditures (Millions of Dollars)
Set-Aside Category
Sub-Category
SFY2016
Cumulative (1997-2016)
Administrative
Administrative Assistance
$ 34.03
$ 583.20
Technical Assistance
$ 0.03
$ 3.23
Small Systems
Technical Assistance
$ 15.24
$ 248.71
State Program
Management
PWSS Administration
$ 69.14
$ 683.47
SWP Technical Assistance
$ 4.53
$ 93.42
Capacity Development
$ 5.94
$ 154.99
Operator Certification Programs
$ 2.04
$ 39.20
Local Assistance
Loans for SWP Land Acquisition
$ 0.00
$ 8.89
Loans for Incentive-Based SWP Measures
$ 0.00
$ 7.75
SWP Area Delineation/Assessment
$ 2.58
$ 1 1 8.83
Wellhead Protection
$ 19.72
$ 274.91
Technical or Financial Assistance
$ 39.68
$ 361.12
TOTAL
$ 192.94
$ 2,577.70
19
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State Agencies Managing the DWSRF
EPA Region 1
Connecticut Department of Public Health
Connecticut Office of the Treasurer
Maine Department of Human Services
Maine Municipal Bond Bank
Massachusetts Clean Water Trust
Massachusetts Water Management Administration
Massachusetts Executive Office of Administration and Finance
New Hampshire Department of Environmental Services
Rhode Island Infrastructure Bank
Rhode Island Department of Health
Vermont Facilities Engineering Division
EPA Region 2
New Jersey Department of Environmental Protection
New Jersey Environmental Infrastructure Trust
New York State Department of Health
New York State Environmental Facilities Corporation
Puerto Rico Department of Health
Puerto Rico Infrastructure Financing Authority
EPA Region 3
Delaware Department of Health and Social Services
Maryland Water Quality Financing Administration
Maryland Water Management Administration
Maryland Department of the Environment
Pennsylvania Infrastructure Investment Authority
Pennsylvania Department of Environmental Protection
Virginia Department of Health, Office of Drinking Water
Virginia Resources Authority
West Virginia Department of Health and Human Resources
West Virginia Water Development Authority
EPA Region 4
Alabama Department of Environmental Management
Florida Department of Environmental Protection
Georgia Environmental Finance Authority
Georgia Environmental Protection Division
Kentucky Infrastructure Authority
Kentucky Division of Water, Drinking Water Branch, EEC
Mississippi State Department of Health
North Carolina Department of Environmental Quality
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
Illinois Environmental Protection Agency
Indiana State Revolving Fund Program
Indiana Finance Authority
Michigan Department of Environmental Quality
Michigan Municipal Finance Authority
Minnesota Public Facilities Authority
Minnesota Department of Health
Ohio Environmental Protection Agency
Ohio Water Development Authority
Wisconsin Department of Natural Resources
Wisconsin Department of Administration
20
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EPA Region 6
Arkansas Natural Resources Commission
Arkansas Department of Health
Arkansas Development Finance Authority
Louisiana Department of Health
New Mexico Finance Authority
New Mexico Environment Department
Oklahoma Department of Environmental Quality
Oklahoma Water Resources Board
Texas Water Development Board
Texas Commission on Environmental Quality
EPA Region 7
Iowa Department of Natural Resources
Iowa Finance Authority
Kansas Department of Health and Environment
Kansas Department of Administration
Kansas Development Finance Authority
Missouri Department of Natural Resources
Missouri Environmental Improvement and Energy
Resources Authority
Nebraska Department of Environmental Quality
EPA Region 8
Colorado Water Resources and Power Development Authority
Colorado Water Quality Control Division
Colorado Department of Local Affairs, Division of Local
Government
Montana Department of Environmental Quality
Montana Department of Natural Resources and Conservation
North Dakota Department of Health
North Dakota Public Finance Authority
South Dakota Department of Environment and Natural Resources
Utah Department of Environmental Quality, Division of Drinking
Water
Wyoming Office of State Lands and Investments
Wyoming Department of Environmental Quality
Wyoming Water Development Office
EPA Region 9
Arizona Water Infrastructure Finance Authority
California State Water Resources Control Board
Hawaii Department of Health
Hawaii Safe Drinking Water Branch
Nevada Division of Environmental Protection
Nevada Office of Financial Assistance
EPA Region 10
Alaska Department of Environmental Conservation, Division of
Environmental Health
Idaho Department of Environmental Quality
Oregon Health Authority, Public Health Division
Oregon Infrastructure Finance Authority, Business Oregon
Oregon Department of Environmental Quality
Washington State Department of Health
Washington Department of Commerce
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DWSRF At-a-Glance
Assistance Provided for Projects (Millions
of Dollars)
2016
1997-2016
Total, by Project Type
2,470.8
32,481.8
Planning and Design Only
28.3
339.2
Construction
T reatment
1,064.3
12,687.1
Transmission & Distribution
947.6
12,671.4
Source
129.3
1,873.0
Storage
168.0
3,391.0
Purchase of Systems
32.3
290.5
Restructuring
0.9
98.7
Land Acquisitions
16.9
79.1
Other
83.2
1,051.8
Total, by Population Served
Less than 501
102.8
1,491.3
501 to 3,300
276.5
4,999.7
3,301 to 10,000
317.2
4,997.9
10,001 to 100,000
897.0
12,293.2
100,001 and Above
877.3
8,681.0
# of Loans, by Population Served
Less than 501
168
2530
501 to 3,300
206
4134
3,301 to 10,000
143
2381
10,001 to 100,000
141
2885
100,001 and Above
50
897
Other Key Statistics
• In 2016, every $1 federal appropriation to
DWSRF programs resulted irKMSffldisbursed.
• The DWSRF average interest rate in 201 6 was
^ compared to 3.5% market-value interest
is lower interest rate results in over
n savings to local community ratepayers
over the life of these
• States also awarded
forgiveness to communities in 201 6. These grant-
like funds help keep water rates affordable for
communities.
• ^^Sstates sell bonds in order to further leverage
their DWSRF programs.
raie. in
i
as principal
Funds Available for Projects (Millions of Dollars)
2016
1997-2016
Total Funds
2,107.1
34,1 80.6
Federal Capitalization Grants
834.9
18,352.4
State Match
155.9
3,449.7
Net Leveraged Bonds
335.9
7,059.2
Net Loan Principal Repayments
771.3
5,964.0
Net Interest Earnings
167.3
1,867.4
Net Transfers with CWSRF
7.9
360.4
Less Set-Asides
For more information about the Drinking Water
State Revolving Fund, please contact us at:
Drinking Water State Revolving Fund Program
U.S. Environmental Protection Agency
1201 Constitution Avenue, NW (Mailcode 4606M)
Washington, DC 20460
Internet: www.epa.gov/drinkingwatersrf
Office of Ground Water and Drinking Water
September 2017
EPA 816-K-l 7001
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