Clean Water State Revolving Fund CWSRF 2023 ANNUAL REPORT www.epa.gov ------- A MESSAGE FROM THE OFFICE DIRECTOR I am pleased to present the 2023 Annual Report for the U.S. Environmental Protection Agency (EPA) Clean Water State Revolving Fund (CWSRF) program. Over the past year, we have seen remarkable progress in our mission to support communities in their efforts to maintain and enhance water infrastructure and protect our environment. In 2023, the CWSRF provided over $8.8 billion in financing for a diverse array of water quality projects, ranging from the construction of advanced treatment facilities to implementation of agricultural best management practices. These investments are crucial in addressing challenges like climate change and ensuring that communities can rely on safe, clean water now and in the future. CWSRF programs have always recognized the needs of disadvantaged communities and provided subsidies to help make water services more affordable. The Bipartisan Infrastructure Law added significant additional levels of investment for critical water quality needs, much of it in the form of subsidies that will help states to reach even more communities in need. Our achievements are made possible through strong partnerships with state and local governments, tribes and other stakeholders. Together, we have worked to increase access to funding and promote innovative solutions to water quality issues. The success stories highlighted in this report are a testament to the dedication and collaboration of all involved in the CWSRF program. I welcome this opportunity to share our accomplishments with you and thank you for your continued support in our endeavors. Andrew Sawyers, Ph.D. Director, Office of Wastewater Management Office of Water, United States Environmental Protection Agency CWSRF ANNUAL REPORT T ------- 2023 HIGHLIGHTS ASSISTANCE PROVIDED: $8.8 Billion DISBURSEMENTS: $7 Billion ASSISTANCE AGREEMENTS: 1,682 4 31% of assistance agreements went to state- defined disadvantaged communities 4 Of the approximately $665.6 million CWSRF provided in additional subsidies 83% Sm went to disadvantaged communities $ The average CWSRF interest rate in 2023 was 1.5% providing significant cost savings to borrowers M] Range of Loan Sizes: tra] $12.6K to $288M 0 KEY TAKEAWAY: In fiscal year 2023, the CWSRF provided 1,682 low-interest loans to help communities cost-effectively implement clean water projects. CWSRF ANNUAL REPORT ------- SINCE 1988 PROGRAM HIGHLIGHTS ASSISTANCE PROVIDED: $172 Billion (with $52.4B in federal investments) DISBURSEMENTS: $151.3 Billion ASSISTANCE AGREEMENTS: 48,915 I Since 1988, 12% of assistance agreements went to state-defined disadvantaged communities -1 rLBi rua na f\a.rm rm " KEY TAKEAWAY: Since the program's inception, the CWSRF has provided $6.97 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 FY 2022 - 2026 1 o $1B for any CWSRF-eligible to address project or activity emerging contaminants 49% to be provided as grant-like dollars, which represents a substantial increase over past authority 100% of Bipartisan Infrastructure Law funds for emerging contaminants will be grant-like ------- CWSRF CASE STUDIES Spokane Conservation District, WA: Farmed Smart Certification & Direct Seed Loan Implementation Program The Spokane Conservation District partners with agricultural producers in Eastern Washington to reduce nonpoint source water pollution from soil runoff due to excess tillage under conventional agriculture. Using conduit lending, the CWSRF program awarded $3 million to the District, which in turn offers low-interest loans to farmers to purchase direct-seed equipment. The District also received nearly $475,000 in state grants to implement the Farmed Smart Certification program, which recognizes farmers who adopt conservation practices. This year, the District made 32 loans for direct-seed equipment, implementing conservation practices on over 107,000 acres. Six producers received Farmed Smart Certification. Two producers received direct seed cost-share, preventing an estimated 7,000 tons of sediment runoff. Since 2000, the District has received more than $23.3 million in CWSRF funds to support sustainable agricultural practices. Photo Credit: Spokane Conservation District The Spokane Conservation District reduces nonpoint source pollution by working with farmers to im- plement direct-seeding and other conservation practices. Capitol Region Water, Harrisburg, PA: Capital Region Water - Green Stormwater Infrastructure Programmatic Financing % -v "5%^ ' ^ -C ' m "" ' 'v '--v-'X 'rc 1 " fk i ¦' V'i-'a . - ' - / %p'r - Capital Region Water (CRW) is working to reduce excessive inflow to a combined sewer system and to increase system capacity in order to reduce combined sewer overflows (CSOs) to local waterways during extreme weather events. CRW developed a capital improvement plan to manage stormwater flows by constructing a series of green infrastructure source control practices throughout the City of Harrisburg. These projects will capture stormwater runoff before entering CRW's sewer. The Pennsylvania Infrastructure Investment Authority (PENNVEST) awarded CRW a $13 million programmatic loan covering projects on a capital improvement plan, providing a stable source of multi-year financing. These improvements to CSO control capture 20 to 40 million gallons per year. Photo Credit: Capital Region Water Capital Region Water in Harrisburg, funded is reducing combined sewer overflows by implementing green infrastructure by a $13 million PENNVEST loan, capturing 20-40 million gallons annually. CWSRF ANNUAL REPORT ------- The Cedar Park Bayou Utility District's Wastewater Treatment Plant (WWTP) was located within a floodplain and discharged to Cedar Bayou, an impaired water body. To address water quality concerns and protect public health, Cedar Park Bayou Utility District received a $1.34 million CVVSPF loan to replace the existing WWTP and lift station with one lift station and consolidate wastewater treatment with the City of Baytown for combined treatment at Baytown's WWTP. It also removed an outfall into Cedar Bayou, lessening the chance of raw sewage discharges during flood events. In addition to replacing the original WWTP, the project elevated the new lift station to protect against future flooding, and raised critical infrastructure above 500-year flood elevations. Photo Credit: Cedar Park Bayou Utility District The Cedar Park Bayou Utility District built a new lift station and consolidated with the neighboring City of Baytown for treatment at its WWTP. Maryland Department of the Environment: Leveraging CWSRF for ENR(Enhanced Nutrient Removal) Upgrades of Maryland's 67 Major Wastewater Treatment Plants Maryland used CWSRF and the Bay Restoration Fund to upgrade wastewater plants, reducing Chesapeake Bay pollution by millions of pounds of nitrogen and phosphorus annually. Maryland paired CWSRF dollars with the State's Bay Restoration Fund (BRF) to accelerate water quality restoration in the Chesapeake Bay. To remedy wastewater discharges of nutrients, bacteria, and pathogens to the Bay, the state's major wastewater treatment plants (WWTPs) required upgrades to incorporate enhanced nutrient removal. Since 2004, the BRF has expended nearly $1.3 billion on WWTP improvements, and the CWSRF has contributed $1.4 billion to upgrade 65 operational plants to date. This long-term infusion of capital funds has reduced statewide nutrient pollution in the Bay by a total of 8.2 million pounds of nitrogen and 945,971 pounds of phosphorus annually. The initiative demonstrates how CWSRF investments have been leveraged with state capital dollars through the BRF. Photo Credit: Maryland Department of the Environment CWSRF ANNUAL REPORT 6 ------- Clean Water State Revolving Fund www.epa.g ov/cws rf &EPA www.epa.gov EPA Publication 832R24007 Cover Photo Credit: Perryville Wastewater, Missouri 2023 PISCES Recognized Project ------- |