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Green Project Reserve

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Complying with Green Project Reserve Requirements

Each State's CWSRF program is required to direct a portion of its capitalization grant toward projects that address green infrastructure, water and/or energy conservation and efficiency, or other environmentally innovative activities. (This is optional for the DWSRF programs.) Assistance recipients who receive Green Project Reserve funds have several additional requirements to demonstrate that their project qualifies as green.

Categorical Green Project Reserve Eligibility

EPA considers several projects types as categorically qualified for Green Project Reserve funding. Categorically qualified projects must demonstrate at least a 20% savings in energy, an increase in water efficiency, or utilize green stormwater practices that demonstrate new or innovative approaches to sustainable water management. Categorically qualified Green Project Reserve projects can be sorted into four distinct categories:

  • Water Efficiency Projects
  • Energy Efficiency Projects
  • Green Infrastructure Projects
  • Environmentally Innovative Projects
Other Green Reserve Eligibility

Other projects or portions of projects may qualify for the Green Project Reserve if a business case is submitted describing the green benefits of the project. Many SRF projects provide some water or energy efficiency benefits, but only projects where these green benefits are the project driver and primary motivator provide significant green benefit qualify for Green Project Reserve funding. Projects or project components that qualify will have the following characteristics:

  • They provide substantial water or energy benefits/savings compared to the existing equipment or practice, and
  • Water and energy efficiency savings are a substantial part of the justification for the project, and are not simply incidental benefits

Generally, projects that incorporate new centralized wastewater treatment processes, pipe repair and/or replacements to address water losses, supervisory control and data acquisition systems (SCADA), or lift station removal projects will all require a business case. While these projects are considered traditional, in certain cases a particularly significant reduction in energy usage or water savings would qualify the project for the Green Project Reserve.


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