Clean Water State Revolving Fund CWSRF 2022 ANNUAL REPORT JUNE 2021 -JUNE 2022 ApKil www.epa.gov ------- A MESSAGE FROM THE OFFICE DIRECTOR Dear colleagues, I am pleased to present the 2022 Annual Report for the Environmental Protection Agency (EPA) Clean Water State Revolving Fund (CWSRF), highlighting our remarkable progress and achievements in the past year. It gives me great pride to share the positive impact we have made in ensuring clean and safe water for communities. It was another exceptionally productive year for CWSRF programs. The states funded over 1,600 new infrastructure projects totaling more than $9.6 billion in communities of all sizes. Our collaborative efforts with local governments and water utilities have enabled us to finance and implement critical infrastructure projects that improve water quality nationwide. Since the program's inception in 1988, the 51 CWSRFs have provided $163.2 billion through 46,224 assistance agreements. These funds have provided communities significant savings for projects across a wide range of eligibilities, demonstrated by the projects highlighted in this report. These are impressive figures, yet to fully recognize the success of the CWSRF programs, we must look beyond the numbers. Behind the financial, environmental, and public health benefits is a story that encompasses a diverse range of communities, projects, and a multitude of federal and state funding partners. In 2022, we continued to implement the Infrastructure Investment and Jobs Act (IDA), also known as the Bipartisan Infrastructure Law. This landmark legislation brought forth much- needed investment in water infrastructure across the country, enabling communities to build needed water quality infrastructure that otherwise would not have been built due to the lack of financial capacity. This is a transformational moment for the State Revolving Fund programs. I extend my heartfelt appreciation to our dedicated team, partner organizations, and the communities we serve. Together, we will continue to make significant strides in protecting the country's invaluable water resources. Thank you for your continued support in our endeavors. Sincerely, Andrew Sawyers, Ph.D. Director, Office of Wastewater Management Office of Water, United States Environmental Protection Agency CWSRF ANNUAL REPORT T ------- 2022 HIGHLIGHTS ASSISTANCE PROVIDED: $9.6 Billion DISBURSEMENTS: $7.2 Billion ASSISTANCE AGREEMENTS: 1,637 * 22% of assistance agreements went to state- defined disadvantaged communities * Of the approximate $373.6 million CWSRF provided in additional subsidies ^ ^ 67% went to disadvantaged communities * The average CWSRF interest rate in 2022 was 1.25% providing significant cost savings to borrowers im Range of Loan Sizes: EH3 $2,300 to $660M KEY TAKEAWAY: In fiscal year 2022, the CWSRF provided 1,637 low-interest loans to help communities cost-effectively implement clean water projects. CWSRF ANNUAL REPORT ------- SINCE 1988 PROGRAM HIGHLIGHTS ASSISTANCE PROVIDED DISBURSEMENTS (with $49.6B in federal investments) ASSISTANCE AGREEMENTS: 46,224 I 11% of assistance agreements went to state-defined disadvantaged communities KEY TAKEAWAY: Since the program's inception, the CWSRF has provided $6.3 billion in additional subsidies to communities. These grant-like dollars help keep water rates affordable. CWSRF ANNUAL REPORT 3 ------- LOOKING AHEAD: CWSRF AND THE BIPARTISAN INFRASTRUCTURE LAW $12.7 Billion Total appropriated for CWSRF over the next five years $11.7B 0 for any CWSRF-eligible project or activity $1B<^ to address emerging contaminants + 49% to be provided as grant-like dollars, which represents a substantial increase over past authority si! Bog ess ESS] ss 100% of Bipartisan Infrastructure Law funds for emerging contaminants will be grant-like ------- CWSRF CASE STUDIES McDowell County Public Service District, WV: Coalwood Sewer Project - Phase 1 Challenges, such as a mountainous terrain and declining population that is also low income, made traditional sewer extensions infeasible in the community of Coalwood in McDowell County, West Virginia. Residential sewage had been either treated by individual septic tanks or discharged directly to the Clear Fork, a tributary of the Guyandotte River. Previous projects that proposed a single system to serve the Coalwood area were turned down due to high operation costs for multiple pump stations. The McDowell County Public Service District (PSD) pursued a creative solution to split the residents into different collection systems and wastewater treatment plants, removing the need for multiple lift stations and deep interceptor sewers. Additional phases will expand wastewater treatment to 209 residences, eliminating direct sewage discharges and failing septic tanks in Coalwood. The PSD leveraged a $1.2 million CWSRF loan with 100% principal forgiveness in conjunction with a U.S. Department of Housing and Urban Development Community Development Block Grant and a West Virginia Infrastructure and Jobs Development Council Grant. Photo Credit: McDowell County Public Service District The Coalwood Sewer Project will provide public health and environmental benefits by reducing sewage discharges and lowering fecal coliform inputs to the impaired Clear Fork. Town of Kearny, NJ: Kearny Town Redevelopment of Recreational Complex This project provides recreational opportunities through it's multi-sport facility including fields for baseball, softball, soccer, football, and a skate park. The Town of Kearny used a creative approach to address contamination and redevelop the Gunnel Oval Recreational Complex into a modern artificial turf sports complex to provide recreational opportunities to the community The site was contaminated with fill materials beneath its natural grass cover, creating polluted runoff that would flow into the nearby tidal Kearny Marsh. This area also experienced frequent flooding and surplus backflow within the Kearny Marsh ecosystem. The New Jersey Water Bank provided Kearny with a $12.4 million CWSRF loan for the project, creating a savings of $3.2 million. The town also received over $3.6 million in state grants. The project involved installing an engineered cap over the fill to minimize exposure to the contamination and reduce polluted runoff. Environmental benefits also include improved stormwater management to minimize the frequent flooding in residential and industrial neighborhoods. An estimated 200,000 gallons of stormwater can be stored under the playing fields. Photo Credit: Town of Kearny CWSRF ANNUAL REPORT 5 ------- ••J!"' i CWSRF CASE STUDIES Luzerne County, PA: Wyoming Valley Sanitary Authority 2021 ProFi MS4 Stormwater Projects This programmatic financing arrangement allowed the Authority to implement several projects, which are broken down into three phases, with just one CWSRF application and loan. Photo credit: Wyoming Valley Sanitary Authority The Wyoming Valley Sanitary Authority received $12.9 million in CWRSF financing to implement green infrastructure and hydromodification projects. On behalf of the partnering municipalities, the Authority has restored over 16,000 linear feet of creek, constructed two rain gardens, and restored three existing stormwater basins totaling over 18 acres. These projects will result in a load reduction of 1,036,759 lbs of sediment, 145,619 lbs of nitrogen, and 228,944 lbs of phosphorus annually. In Luzerne County, Pennsylvania, 31 municipalities partnered with the Wyoming Valley Sanitary Authority to address pollutant reduction goals for sediments and nutrients (nitrogen and phosphorus) in the Authority's MS4 Regional Chesapeake Bay Pollutant Reduction Plan. In lieu of each municipality developing and implementing their own individual plan to address pollution in the Chesapeake Bay, they regionalized and developed a comprehensive plan, then partnered with an existing sewer and water authority to implement it. Villages of Dupont and Cloverdale, OH: STEP Collection System Dupont-Cloverdale Wastewater Plant By working together, the communities were able to develop a financing package that qualified them for the Ohio SRF's Water Pollution Control Loan Fund (WPCLF) principal forgiveness and grant funding. Dupont received $4 million in CWSRF principal forgiveness. Cloverdale received a $902,000 CWSRF loan at a 0% "small community rate". Both CWSRF loans were cofinanced with other state and federal sources. Photo credit: Hunt tngineering, LLC. This project provides improved sanitary service and eliminates a public health risk for the 460 residents of the partnering communities. The neighboring northwest Ohio communities of Dupont and Cloverdale suffered from failing home sewage treatment systems and required significant financial assistance to make the necessary upgrades affordable for residents. This project eliminated 186 failing or compromised home sewage treatment systems by constructing a regional wastewater treatment plant between Dupont and Cloverdale and individual septic tank effluent pump collection systems in each community. CWSRF ANNUAL REPORT 6 ------- CWSRF CASE STUDIES Lost Bridge Village Water, AR: Lost Bridge Village Water and Sewer Improvement Dist. No 1 & 2 Lost Bridge Village is one of the few entities in the State of Arkansas that discharges into Beaver Lake, a drinking water source for about 480,000 Arkansans. In response to a Consent Administrative Order from the Arkansas Department of Environmental Quality, Lost Bridge Village installed a new wastewater treatment plant in the existing footprint of the original plant. The new wastewater treatment system utilizes modern wastewater treatment technology such as equalization and extended aeration package plants with dual-media filtration and chlorination. The Village received $3.1 million of CWSRF assistance including $2.8 million of principal forgiveness, creating a significant economic savings for the community. Photo credit: Lost Bridge Water & Sewer District This new treatment plant is providing a cleaner discharge into Beaver Lake, an important drinking water source for Arkansans. ------- Clean Water State Revolving Fund www.epa.gov/cwsrf oEPA www.epa.gov EPA Publication 832R22003 Cover Photo Credit: 2021 Tennesse PISCES Project, Humboldt Utilities ------- |