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Clean Water State Revolving Fund (CWSRF)
Clean Water State Revolving Fund (CWSRF)
The Clean Water State Revolving Fund (CWSRF) program was designed to provide low-interest-rate loans to municipalities to finance the design and construction of wastewater treatment works and to conduct various non-point source activities that protect or improve water quality. In the late 1980's, EPA began providing New York, New Jersey and Puerto Rico with periodic capitalization grants. The states add twenty percent in matching funds to produce the seed or base capital for the CWSRF. This powerful financial partnership between EPA and the states allows states to provide funding to address their highest priority water quality needs. [Note: as a territory, the U.S. Virgin Islands is excluded from the CWSRF program.]
New Jersey
The New Jersey Department of Environmental Protection (NJDEP) in conjunction with the New Jersey Environmental Infrastructure Trust (NJEIT) administers New Jersey's Clean Water State Revolving Fund. Zero percent loans are made by NJDEP to finance half of a wastewater treatment project's allowable costs. On the other side, NJEIT matches each of NJDEP loans to finance the other half of a project's eligible costs. NJEIT issues revenue bonds and then loan the proceeds at market rate. By matching the loans of NJDEP, NJEIT doubles the amount of loan money available for wastewater treatment improvements. Since the combined money is provided at half the typical market interest rate, the State Revolving Fund program reduces the costs that must be passed on to a project's users.
New York
New York's Clean Water State Revolving Fund program is comprised of two elements: the New York State Department of Conservation (NYSDEC) and the New York State Environmental Facilities Corporation (NYSEFC). The capitalization grants are awarded to NYSDEC and State Revolving Fund is administered by NYSEFC in conjunction with NYSDEC. NYS Environmental Facilities Corp offers a short-term financing program (loan terms of up to 3 years) which operates in conjunction with a long term financing program (loan terms of up to 20 years). These interest-free short-term and low interest rate long term loans to municipalities can be used to finance planning, design, and construction of publicly owned facilities that reduce and prevent water pollution.
Puerto Rico
In June 1988, the Puerto Rico Infrastructure and Financing Authority (PRIFA) was created for the purpose of providing financial, administrative, technical and other types of assistance to public corporations that develop and operate infrastructure facilities. In 1990, the Puerto Rico Environmental Quality Board (PREQB) was empowered to enter into capitalization grant agreements for the Clean Water Revolving Fund (CWRF) with EPA. Since 1990, EPA has provided capitalization grants to PREQB, which adds another twenty percent in matching funds to produce seed capital for the CWRF. As payments on loans are made, funds are recycled to fund additional water quality projects. PREQB, in conjunction with PRIFA, provides low interest rate loans for design and construction of wastewater treatment works. This provides substantial financial savings to municipalities island-wide.
For more information on this page, contact: Andrews.Walter@epa.gov
