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Drinking Water State Revolving Fund Program Guidelines: Table of Contents

United States
Environmental Protection
Office of Water
EPA 816-R-97-005
February 1997




    1. Items Necessary To Establish a Loan Fund That Complies with FederalRequirements

      1. Assurance that the State has the authority to establish a Fund and to operate the DWSRF program in accordance with the SDWA

      2. Assurance that the State will comply with State statutes and regulations

      3. Assurance that the State has the technical capability to operate the program

      4. Assurance that the State will accept capitalization grant funds in accordance with a payment schedule

      5. Assurance that the State will deposit all capitalization grant funds in the Fund or Set-Aside Account

      6. Assurance that the State will provide an amount at least equal to 20 percent of the capitalization grant (State match) in the Fund

      7. Assurance that the State will deposit net bond proceeds, interest earnings, and repayments into the Fund

      8. Assurance that the State will match capitalization grant funds the State uses for 1452(g)(2) set-asides

      9. Assurance that the State will use Generally Accepted Accounting Principles

      10. Assurance that the State will have the Fund and set-aside account audited annually in accordance with Generally Accepted Government Auditing Standards

      11. Assurance that the State will adopt policies and procedures to assure that borrowers have a dedicated source of revenue for repayments (or in the case of a privately owned system, demonstrate that there is adequate security)

      12. Assurance that the State will commit and expend funds as efficiently as possible, and in an expeditious and timely manner

      13. Assurance that funds will be used in accordance with the Intended Use Plan

      14. Assurance that the State will provide EPA with a Biennial Report

      15. Assurance that the State will comply with all Federal cross-cutting authorities

    2. Intended Use Plan

      1. Priority list of projects, including description and size of community

      2. Description of criteria and method used for distribution of funds

      3. Description of the financial status of the DWSRF Program

      4. Description of the short- and long-term goals of the DWSRF Program

      5. Description of amounts transferred between the DWSRF and the CWSRF

      6. Description of the set-aside activities, and percentage of funds, that will be funded from the DWSRF capitalization grant, including DWSRF administrative expenses allowance, PWSS program support, technical assistance, etc.

      7. Description of how a State disadvantaged community program will define a disadvantaged system and the amount of DWSRF funds that will be used for this type of loan assistance

    3. Capitalization Grant Agreement

    4. Operating Agreement


    1. Allotment/Reallotment/Withholding of Funds

      1. Allotment formula

      2. Period of availability and reallotment

      3. Withholding of funds

        1. The Administrator will withhold funds

        2. Reallotment of withheld funds

        3. Loss of primacy

    2. Set-asides From The National Appropriation And Ceilings on State Allotments

      1. National set-asides

        1. Indian Tribes/Alaska Native Villages

        2. Health effects studies

        3. Unregulated contaminant monitoring

        4. Small system Technical Assistance

        5. Operator training reimbursement

      2. Allotment for D.C. and other jurisdictions

      3. State set-aside activities

        1. DWSRF administrative expenses

        2. State program management

        3. Small systems technical assistance

        4. Local assistance and other State programs

        5. Movement of funds after capitalization grant award between the Fund and set-aside account

        6. Transfer of funds

    3. Types of Financial Assistance That the Fund May Provide

      1. Loans

        1. Repayment of loan

        2. Dedicated repayment source

        3. Financial security of privately-owned systems

        4. Financial, technical, and managerial capability analysis

        5. Disadvantaged communities

        6. Project funding for small systems

      2. Buy or refinance existing debt obligations

      3. Guarantee or purchase insurance for local debt obligations

      4. A source of revenue or security for payment of Fund debt obligations

      5. Earn interest on Fund accounts


    1. Eligible Systems

    2. Eligible Projects

      1. Compliance and public health

      2. Loan assistance to systems that meet the definition in section 1401(4)(B)31

      3. Land acquisition

      4. Planning and design of a drinking water project

      5. Restructuring of systems that are in noncompliance or that lack the technical, managerial and financial capability to maintain the system

    3. Projects not eligible for funding

      1. Lack of technical, managerial and financial capability

      2. Significant noncompliance

      3. Growth

    4. Compliance without DWSRF funding


    1. Cross-cutting Federal Authorities

    2. Environmental Reviews

      1. Equivalency projects

      2. Non-equivalency projects

      3. EPA approval and review process


    1. 20 Percent State Match

    2. State Match for the 1452(g)(2) Set-aside

    3. Federal Funding Process

      1. General

      2. Schedule of payments

      3. Binding commitments

      4. Cash draw

        1. Projects

        2. Set-asides


    1. State Responsibilities

      1. Biennial Report

      2. Annual audit

      3. Information management system

    2. EPA Responsibilities

      1. Annual review of DWSRF program

      2. Evaluation

      3. Compliance assurance

      4. Dispute resolution


    1. Federal Cross-cutters

    2. Criteria for Evaluating a State's Proposed NEPA-like Process

    3. Definitions

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