EPA's Region 6 Office
Serving: Arkansas, Louisiana, New Mexico, Oklahoma, Texas, and 66 Tribal Nations
Clean Water State Revolving Fund Program
The Clean Water State Revolving Fund (CWSRF) loan program was
authorized by Title VI of the Clean Water Act as amended in 1987. The
program is an innovative method of financing a wide range of environmental
projects consistent with its primary mission which is to promote water
quality nationwide. Under the program, EPA provides "seed money" through
capitalization grants requiring a 20 percent match to authorized State
water protection agencies to capitalize a CWSRF loan fund. The States
make low interest rate loans to selected communities/entities for high
priority water quality activities in their area. As the original loan
and subsequent interest money is paid back into the revolving fund, additional
funding resources become available to fund new projects. Since an SRF
project typically costs much less than if it was funded through the bond
market, the substantial financial savings is a major benefit for loan
recipients. Most projects funded under the CWSRF program involve the construction
of waste water treatment facilities. These projects are subject to environmental
review and assessment to insure compliance with the requirements of the
National Environmental Policy Act.
The Drinking Water State Revolving Fund (DWSRF) loan program was authorized
by the Safe Drinking Water Act Amendments in 1996. The program is an innovative
method of financing a wide range of environmental projects consistent
with its primary mission which is to protect and promote drinking water
quality nationwide. Under this program, EPA will be providing "seed money"
through capitalization grants requiring a 20 percent match to authorized
State drinking water protection agencies to capitalize a DWSRF loan program.
During fiscal year 1997, the States will be in the process of finalizing
legislation to enact their DWSRF. The States will make low interest rate
loans to selected communities/entities for high priority drinking water
quality activities in their area. As the original loan and subsequent
interest money is paid back into the revolving fund, additional funding
resources become available to fund new projects. Since an SRF project
typically costs much less than if it was funded through the bond market,
the substantial financial savings is a major benefit for loan recipients.
Most projects funded under the Drinking Water SRF will involve the construction
of infrastructure needed to insure that the Nation's drinking water supplies
remain safe and affordable, and to protect public health. These projects
will be subject to environmental review and assessment to insure compliance
with the requirements of the National Environmental Policy Act.