a ||—OA	Funding Energy Efficiency and Conservation Projects with
the Clean Water State Revolving Fund

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.
While the CWSRF has a long history of funding water
infrastructure projects, the CWSRF can also finance
energy efficiency and conservation projects that reduce
energy consumption. These include projects that reduce
the amount of thermoelectric energy used at publicly
owned treatment works (POTW).
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
The CWSRFs offer many types of financial assistance. The
programs primarily offer low-interest loans over terms as
long as 30 years or the useful life of the project,
whichever is less. The CWSRFs can also purchase local
debt obligations, 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 principle
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.
ENCOURAGING ENERGY EFFICIENCY & CONSERVATION
Priority setting systems are an effective tool that states use
to encourage energy efficiency and conservation. 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
priorities including energy efficiency and conservation.
States may encourage projects through targeted rating
criteria, such as offering priority points, and funding
incentives, including reduced interest rates and waiver of
fees. For example, some states, like Virginia, Montana, and
Rhode Island, not only give priority to projects with energy
efficiency and conservation components, but also offer
them financial incentives such as lower interest rates.
ELIGIBLE PROJECTS
The CWSRF can fund a wide range of energy efficiency and
conservation activities, including:
•	Installation of energy efficient equipment and
components, such as lighting, HVAC, process
equipment and electronic systems at a POTW
•	Co-digestion, combined heat and power systems, and
other renewable energy facilities at a POTW
•	Capital costs of off-site renewable energy facilities that
provide power to a POTW
•	Energy efficiency upgrades and renewable energy
generation projects that reduce atmospheric
deposition
CWSRFs can also provide assistance to many types of
planning activities. In general, planning is eligible if there is
a reasonable prospect that it will result in an eligible capital
project. Some examples relative to energy conservation
include risk/vulnerability assessments, optimization
studies, energy audits, and conservation plans.

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GETTING A PROJECT FUNDED
Since the CWSRF program is managed by the states,
project funding varies according to the priorities, policies,
and laws within each state. Those interested in learning
more about CWSRF funding opportunities should seek
out the CWSRF program in their state and participate in
the 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
CLEAN WATER SUCCESS STORIES
Alabama
The Municipal Utilities Board of Albertville (MUB) received
a $5.6 million loan, along with a $715,000 grant, from the
Alabama CWSRF to enhance their wastewater treatment
performance and biosolids disposal at the Albertville
Eastside Wastewater Treatment Plant. New and energy
efficient equipment was installed that has enabled MUB to
produce renewable class A biosolids while utilizing biogas
as a fuel to help operate their system. Overall, these
improvements offer a sustainable solution by converting
costly waste into a beneficial byproduct while utilizing a
renewable, green energy source. This has allowed
Albertville to improve its wastewater treatment
capabilities and energy efficiency which will save money
and conserve natural resources.
Maryland
The Washington Suburban Sanitary Commission (WSSC)
received an $8.2 million energy efficiency loan from the
Maryland CWSRF as part of a cost-sharing agreement with
DC Water to design and build a new Combined Heat and
Power System (CHP) at DC Water's Blue Plains Advanced
Wastewater Treatment Plant. The new CHP system has an
innovative thermal hydrolysis sludge process that uses
high pressure and high temperature to breakdown the
cellular structure of the sludge, making it more conducive
to digestion along with four new sludge digesters, gas
scrubbing equipment, and three micro-turbines. This
facility is now able to generate enough energy to supply
about 1/3 of the plant's energy needs from the resultant
digester biogas, saving the utility about $10 million in
annual electric costs. The reliable, cost-effective project
was completed in 2015 and is a prime example of how
localities can invest in infrastructure while conserving
energy and cleaning the environment at the world's
largest advanced treatment plant.
Completed biogas dryer in Albertville, Alabama
ENERGY EFFICIENT BONDS AND THE NYEFC
The partnership between the New York Environmental
Facilities Corporation (NYEFC), lead state agency for
the NY CWSRF, and the NY State Energy Research and
Development Authority (NYSERDA) is a prime example
of how energy efficiency can be improved through the
use of CWSRF guarantees. NYSERDA sought to issue
bonds to finance and refinance loans under the Green
Jobs-Green New York program, a statewide initiative
that supports energy efficiency improvements for
residential, small business, and nonprofit buildings.
Since New York's Section 319 nonpoint source
program identified atmospheric deposition as a
significant source of water quality impairment, energy
efficiency projects to reduce atmospheric deposition
are eligible for CWSRF funding. As a result, the
NYSERDA sold $24.3 million of revenue bonds
guaranteed by the NYEFC to finance loans for energy
efficiency advances as part of their Green Jobs-Green
New York Program. They can also use the proceeds
from these bonds to finance consumer loans that
support the installation of residential energy efficiency
improvements and Energy Star compliant products.
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 832F17008
AUGUST 2017
https://www.epa.gov/cwsrf
Clean Water
State Revolving Fund

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