Clean Water State Revolving Fund in Region 10
The Clean Water State Revolving Fund Program was established under amendments enacted to the Clean Water Act in 1987. Under the program, each of the states, including all of the states in Region 10, have established state water pollution control revolving funds. These funds have been and are being capitalized by grants from the Environmental Protection Agency and matching contributions from the states. Approximately 83% of the contributed capital is accounted for by the grants from the EPA.
These state water pollution control revolving funds offer financial assistance to water quality projects including:
- Publicly owned treatment works (wastewater treatment plants)
- Projects that implement nonpoint source water quality plans (management programs developed under ยง319 of the Clean Water Act). This includes plans developed by both states and Indian Tribes.
- Projects required to develop or implement Comprehensive Conservation and Management Plans (CCMP) for National Estuaries that have been designated by the EPA. There are three National Estuaries in Region 10 and all of the have completed CCMPs:
- Puget Sound
- Tillamook Bay
- Lower Columbia River Estuary
The four state revolving funds make loans at interest rates that are considerably lower than those available in the commercial lending markets. These loans can be for periods of up to 20 years. This interest rate reduction represents a direct savings to the project sponsors, and in the case of publicly owned wastewater utilities, to their wastewater collection and treatment customers. The amount of money available for this financial assistance is considerable. The table below summarizes the information as of the end of the State Fiscal Year 2006 (June 30, 2006).
Clean Water State Revolving Fund Resources in Region 10
 | Alaska | Idaho | Oregon | Washington |
| Federal Capitalization Grants | $144,080,162 | $114,241,515 | $272,473,412 | $406,888,043 |
| State Match | $29,123,260 | $22,848,302 | $54,613,955 | $81,377,609 |
| Less state match bonds repaid from the revolving fund | ($9,315,960) | $0 | ($22,724,717) | $0 |
| Loan Repayments (principal & interest) plus Investment Earnings | $103,677,795 | $116,827,053 | $233,970,807 | $319,806,712 |
| Less reserves for administration costs | ($5,763,206) | ($4,569,661) | ($10,898,936) | ($16,275,522) |
| Net Funds for Loans | $261,802,051 | $249,347,209 | $527,434,521 | $791,796,842 |
| Project Loans to Date | $223,188,718 | $237,012,965 | $595,165,372 | $856,851,564 |
| Percent of Available Funds Committed to Projects* | 85.25% | 95.05% | 112.84% | 108.22% |
*Percent committed can exceed 100% when states plan to fund future loan commitments with anticipated repayments form existing loans. In the table above, Oregon and Washington have committed greater than 100% of available funds, anticipating that repayments from existing loans will provide the additional money for funding new loan commitments.
The states' Intended Use Plans for State Fiscal Year (SFY) 2007 available elsewhere on these pages, contain plans to award loans for new water quality projects that will commit most of the funds available in SFY 2007. The table below summarizes the states' plans for SFY 2007 and demonstrates that most of the planned new loans will be financed with repayments and interest. If the states are fully successful in executing these loans they will provide in excess of $220 million in new assistance in SFY 2007.
Planned SRF Assistance in SFY 2007 in Region 10
| Alaska | Idaho | Oregon | Washington |
| Capitalization Grant | $5,193,900 | $4,242,300 | $8,000,000 | $26,346,877 |
| State Match | $1,038,780 | $848,460 | $1,600,000 | $5,269,375 |
| Loan Repayments plus Investment Earnings* | $29,278,385 | $47,220,779 | $46,365,570 | $46,469,808 |
| Total Loans Planned | $35,511,065 | $52,311,539 | $55,965,570 | $78,086,060 |
* Loan repayment and investment earnings figures are net of administrative set-asides, match bond repayments, transfers to Drinking Water SRF and existing loan commitments.
The national needs for water infrastructure such as wastewater collection, treatment and disposal facilities are still substantial in spite of this heavy investment. The General Accounting Office of the U.S. Congress published a report in November 2001 on water infrastructure funding (pdf file, 1329 Kb, 46 pgs) that summarizes both Federal and state capital investments in water infrastructure and reviews some available estimates of needs.
The EPA completed an extensive study of the "gap" between the nation's water and drinking water infrastructure financing needs and the currently available supply of capital to meet those needs: Clean Water and Drinking Water Infrastructure Gap Analysis (2002) and Clean Water and Drinking Water Infrastructure Gap Analysis Summary Fact Sheet (pdf file, 85 Kb, 2 pgs).
EPA Clean Water Financing Web Site provides nationally issued guidance documents and fact sheets concerning the Clean Water State Revolving Fund and innovative ways that the states are using it to finance water quality improvement projects.
Region 10 State Revolving Funds provides more about the individual state water pollution control revolving fund programs in the Region 10 states.
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