Using The Clean Water State Revolving Fund

NACD's mission is to serve conservation districts by providing national leadership and a unified voice for natural resource conservation.

The Clean Water State Revolving Fund (CWSRF) was created in the Clean Water Act Amendments of 1987 to replace the Construction Grants Program for funding wastewater treatment projects. EPA provides grants to the 50 states and Puerto Rico to capitalize individual low-interest loans to towns, counties, conservation districts and other public agencies (and farmers for certain activities) to fund projects for nonpoint pollution control, estuary improvement, storm water management, etc. The CWSRF is also a flexible source of financing that can also provide loan guarantees, bond insurance and refinancing existing debt. Many consider it to be one of the most successful federal public works programs in history.

The CWSRF program is managed by the states and loans for water quality projects support the state’s programs and priorities. As loans are repaid, the funds are "revolved" i.e. loaned to others for future projects. The loans are made at interest rates at or below market rates with a repayment period as long as 20 years.

The original Construction Grants Program was focused exclusively on point sources of pollution such as municipal wastewater and industrial discharges. By 1987, it was apparent to Congress that the CWSRF should include a broader array of uses; consequently, the new program was designed to allow financing of nonpoint source pollution control projects and the development and implementation of Comprehensive Conservation and Management Plans as required in the National Estuary Program.

As of 1997, EPA provided $12.8 billion to the states in CWSRF capitalization grants and the states have provided $2.6 billion in matching funds. Some states have leveraged their pool of loan funds by borrowing an additional $5.6 billion from other sources. Nearly 6,000 loans totaling $17.1 billion have been made -- the vast majority ($16.6 billion) on wastewater treatment facility construction and upgrades and $531 million on nonpoint and other point source control projects.

Examples of CWSRF-funded nonpoint projects:

California -- purchase of sprinkler or gated pipe irrigation equipment to be leased to farmers for conversion from furrow or siphon tube irrigation to reduce subsurface drainage and improve water use efficiency and water quality.
Delaware -- chicken manure storage facilities and dead bird composters on each farm to reduce nutrient loading.
Maine -- replacing failed homeowner septic systems to protect groundwater and public health.
Minnesota -- construction of sediment basins and stream bank stabilization projects to prevent erosion.
Missouri -- loans to farmers to install animal waste management facilities or waste-handling equipment to prevent surface and ground water contamination.
Nevada -- purchase of water rights ($12 million) in the Truckee basin to augment river flows in order to protect endangered species and improve water quality in Truckee River and Pyramid Lake.
New York -- storm water management facilities, street sweepers, catch basin vacuum vehicles, sediment traps and basins, constructed wetlands and biofilters.
North Dakota -- close one landfill, expand another and construct a new landfill with modern protection measures and procedures.
Washington -- provide native plant materials to conservation districts to rehabilitate disturbed riparian corridors and reduce pollutant runoff to streams.

To Learn More:

Visit EPA website http://www.epa.gov/owm/cwfinance/index.htm for information on funding clean water programs.