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Financial Assistance for Water Infrastructure
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National Information
WaterSense Welcomes New Partners - With the fundamental goal of protecting our nation’s water supply for future use, EPA is promoting and enhancing the market for water efficient products and programs through the WaterSense program. On March 2009, the Blacksburg Christiansburg VPI Water Authority, VA; the City of Suffolk, VA, Department of Public Utilities; and the North Wales Water Authority, PA have taken the first step to join forces with EPA’s WaterSense program, by signing the partnership agreement they have taken a big step forward as an environmental stewards by pledging to foster a more water-efficiency culture. Using water resources more efficiently helps preserve water for future generations and reduces water and wastewater infrastructure cost by reducing unnecessary water consumption. Partnering with a program such as WaterSense provides water systems with a nationally recognized brand platform upon which it can build solid water-efficiency programs as well as a solid reputation. Besides saving water, water-efficiency brings many other benefits to communities. WaterSense is a voluntary public-private partnership program launched as part of the Agency’s sustainable infrastructure efforts.
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Currently, EPA gives funding through the State Revolving Fund to the states. (There are two programs: the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund.) The states then make below market loans to communities. When accepting Federal SRF grants, states must provide 20% matching funds. As payments are made on loans, funds are recycled to fund other projects.
EPA has a long tradition of providing grants to municipalities for expanding and upgrading centralized publicly-owned wastewater treatment facilities.
During the 1970s and 1980s - The Construction Grants Program was a major source of Federal funds, providing more than $60 billion nation-wide for the construction of publicly-owned wastewater treatment projects. These projects included sewage treatment plants, pumping stations, and collection and interceptor sewers; rehabilitation of sewer systems; and control of combined sewer overflows.
Clean Water State Revolving Fund (SFR) - With the 1987 amendments to the CWA Congress set 1990 as the last year that grant funds would be appropriated. By phasing out the Construction Grants Program, EPA shifted the method of municipal financial assistance from grants to loans provided by State Revolving Funds. The District of Columbia received an exemption from establishing an SRF and receives its share of available funding as grants for facility construction. The new State Revolving Fund also provided additional flexibility for the funding of other water quality projects related to abatement of nonpoint source pollution and implementation of estuary plans.
Drinking Water State Revolving Fund (DWSRF) - After demonstrating success through the implementation of the Clean Water SRF program, Congress authorized a similar program for drinking water facilities as part of the 1996 SDWA Amendments. Prior to establishment of the Drinking Water SRF program, EPA had not provided financial assistance for the construction of drinking water infrastructure.
Special Appropriation Act Projects (SAAP) - Recognizing the special needs of certain communities, Congress may include directed funding as part of EPA's annual appropriation. If your community has been identified for such grant assistance, additional information on submitting your financial assistance application is available at Grants & Funding in the Mid-Atlantic States.
Innovative Management Approaches - Utility managers recognize that they may be able to reduce the need for capital expenditures and lower operating and maintenance costs through changes in facility management structure and procedures. (Success Stories)
- environmental management systems and Voluntary Environmental Management Systems/ISO 14001
- asset management
- system consolidating
- public-private partnerships
- full-cost pricing
- efficient water use
- green infrastructure
- smart growth
Environmental Finance Program - In addition to direct financial assistance, EPA recognizes that some communities may need other assistance in considering and implementing financing arrangements for their environmental infrastructure facilities. Such assistance could include things such as information, training, or technical assistance. To meet such needs, EPA has established an Environmental Finance Program. This program provides comprehensive access to publications on environmental finance, technical assistance and training through major universities around the country (including the University of Maryland), and advice to EPA on environmental finance policies and program implementation through an advisory board.
Needs Surveys - Every four years, EPA in cooperation with the states develops estimates ("needs surveys") both for Clean Watersheds and Drinking Water. These estimate the costs to construct improvements to water quality and drinking water facilities needed to meet water quality and drinking water standards.
Other Federal Assistance - In addition to funding through the CWSRF and DWSRF programs, other Federal agencies also provide assistance to local communities for wastewater and drinking water facilities. Communities seeking financial assistance (both loans and grants), may wish to contact the Rural Utility Service of the U.S. Department of Agriculture and the Community Development Block Grant program of the US Department of Housing and Urban Development. Some states have established additional loan and grant programs to assist with the capital costs of water quality and drinking water facilities.
