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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.

For more information please submit all inquires to Don Walker at walker.donald@epa.gov

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