2009

Annual Repo

r

t

Clean Water

State Revolving 

Fund Progra ms

A stronger nation through cleaner water 

a stronger economy through sustainable investments
Clean Water State Revolving Fund Programs 

CWSRF Program Highlights: 

•	 $74 billion in cumulative assistance provided1

•	 1.4 to 2 million jobs created since 19882

•	 69 perc ent of assistance goes to projects that protect human health3

•	 Over 130 million people living in more than 2,500 

communities have benefited from the CWSRF3

•	 Average savings of 22 percent of total project costs for a 20-year loan1

•	 Fund utilization rate of 96 perc ent1

•	 2.53 times cumulative return on federal investment1

1

EPA CWSRF National Information Management System

2

Calculated based on assistance provided to date. Source: Clean Water Council.  June 2009.  Sudden Impact: An

Assessment of Short-Term Economic Impacts of Water and Wastewater Construction Projects in the United States.

Available at: http://www.nuca.com/files/public/CWC_Sudden_Impact_Report_FINAL.pdf

3

CWSRF Benefits Reporting System
2009 Annual Report 1

TABLE OF CONTENT S

The Clean Water State Revolving Fund:

A Stronger Nation Through Cleaner Water, 

A Stronger Economy Through Sustainable Investments	 	 	 	 2

Implementing the American Recovery and Reinvestment Act	 	 	 6

Case Studies of successful state Implementation of ARRA 9

CWSRF 2009 Performance Highlights 13

State Agencies and EPA Regional Offices

that Manage CWSRF Programs 18

PISCES Awards: 	 	 	 	 	 	 	 	 	

Recognizing Exceptional State CWSRF Accomplishments 21

2009 Financial Performance Overview 24

CWSRF Initiatives for fy 2010	 	 	 	 	 	 	 	 29

CWSRF At-A-Glance	 	 	 	 	 	 	 	 	 	 32
2 Cleaan Waaterr Staate Revol te Revolving Fund ving Fund PrPrograramss 

The Clean Water State Revolving Fund: A 

Stronger Nation Through Cleaner Water, 

A Stronger Economy Through Sustainable 

Investments

Our nation has a long history of providing funding to protect and restore our local waterways.

Since the mid-20th century, billions of dollars

have been invested through federal construction grants and other programs for the construction of wastewater treatment facilities.

In the 1980s, Congress reaffirmed its commitment to ensuring clean water for all Americans

by authorizing the Clean Water State Revolving Fund (CWSRF) through the Clean Water Act

Amendments of 1987. This groundbreaking

program provides communities with low-cost

funds for infrastructure construction and other

activitiesto restore and protect our waterways.

The unparalleled success of the CWSRF was

further demonstrated in Congress’s decision

to appropriate $4 billion to the CWSRF in the

American Recovery and Reinvestment Act of

2009 (ARRA) in February. The ARRA funds, in

addition to the CWSRF’s base program financing, are helping to create and sustain thousands of jobs and further improve the conditions of our waters for public health, recreation

and wildlife. 

Since the first project received CWSRF financing in 1988, the program has provided over

$74 billion in assistance for eligible wastewater infrastructure, nonpoint source and estuary

projects. By the end of Fiscal Year (FY) 2009,4

states had entered into almost 24,700 assistance agreements. Because the CWSRF provides financing at below market interest rates,

thousands of communities and other eligible

entities have been able to upgrade and replace

their wastewater treatment plants, correct

combined and sanitary sewer overflows, and

prevent contaminated runoff from entering

waterways at a much lower cost than they

would have incurred through conventional

financing. 

 4 The 2009 Fiscal Year covers the period from July 1, 2008 through June 30, 2009.
2009 Annual Report 3

In FY 2009, the CWSRF had another stellar year

of performance. Over $5.2 billion in assistance

was delivered through 1,971 assistance agreements. Two-thirds of the agreements were

with communities with populations below

3,500. In addition, more than 10 percent of

the funds went to hardship communities. Over

1,300 nonpoint source loans were funded with

$167.5 million.

The CWSRF Program Process

Each year since 1988, the federal government

has appropriated funds to EPA for the CWSRF 

program. These funds are distributed to states

based on a formula set in the enabling legislation. Today, all 50 states and Puerto Rico have

active CWSRF programs. For every dollar provided by the federal government, these 51 programs contribute 20 cents. Together, federal

and state governments have capitalized the

CWSRF with $32.4 billion, not including the

$4 billion appropriated by Congress through

the American Recovery and Reinvestment Act

of 2009. Figure 1 illustrates how the CWSRF 

works. 

Statesprioritizetheirfundsbasedontheirunique

water quality needs. hey provide financing to

communities, homeowners, farmers and other

eligible entities for wastewater treatment infrastructure, nonpointsource and estuary projects.

CWSRF assistance has primarily been used to

provide discounted loans and to purchase or

refinance municipal debt obligations. nterest

rates average approximately half of what these

entities would obtain through banks or the

municipal bond market. ver the past 22 years,

the 51 CWSRF programs have been able to turn

the $32.4 billion of federal and state capitalization into $73.6 billion in assistance for communities (not including ARRA).

Figure 1: How the CWSRF Program Works

CLEAN WATER 

STATE RE VOLVING 

FUND

EPA

BOND 

HOLDERS

ASSISTANCE

RECIPIENTS

CONTR AC TORS

AND

VENDORS

STATE GOVERNMENT

State 

M atch

Capitalization 

Grant

Bond 

Proceeds

Loan 

Repayment Low-I nterest 

Loans

Payments

for S er vices

Bond 

Repayments
4 Clean Water State Revolving Fund Programs 

Twenty-seven states further increase their

financing ability by issuing bonds secured

by their CWSRF resources. This makes additional funds available to finance more projects.

These states have made an additional $24 billion in financing available for projects to date. 

Responsible fiscal management and the revolving nature of the CWSRF program have resulted

in a remarkable return on federal investment.

As of FY 2009, for every federal dollar invested,

$2.53 in CWSRF assistance has been disbursed

to eligible wastewater and nonpoint source

projects across the country (Figure 2).

TheAmerican Recovery and Reinvestment

Act 

The American Recovery and Reinvestment Act

of 2009 made a dramatic impact on CWSRF program operations in FY 2009, and will continue

to do so through FY 2010. Signed by President

Obama on February 17, 2009, ARRA provided

$4 billion in capitalization to the CWSRF in addition to the $689 million that had already been

appropriated for 2009. The Recovery Act’s goal

of preserving and creating jobs produced new

challenges and opened up many new opportunities for the CWSRF. 

In order to get the funds to communities as

quickly as possible, Congress mandated that

all of the money be under contract or construction within one year of enactment, with a

goal of having at least half of the funds under

contract within 120 days. In addition, at least

50 percent of the funds had to be provided in

the form of additional subsidization. Congress

also promoted “green” practices by requiring that 20 percent of the ARRA capitalization

go towards four categories of green projects.

Figure 3 outlines the primary requirements of

the ARRA funds.

In addition to highlighting the financial accomplishments from the last year, this report features case studies that emphasize the states’

ARRA successes through June 30, 2009. It also

looks ahead towards FY 2010 and beyond, as

ARRA implementation continues and higher

capitalization grants and new Administration

initiatives present new challenges and opportunities for the CWSRF programs.

0

10

20

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19881989199019911992199319941995

1996

199719981999200020012002

2003

2004

2005

20062007

20082009

Billions of Dollars (cumulative)

Federal Outlays are the amount of cash drawn from the U.S. Treasury into the CWSRF.

CWSRF Disbursements are the actual cash paid out from the CWSRF to assistance recipients 

$64.8

$25.7

CWSRF Disbursements Federal Outlays

Figure 2: CWSRFs Return 2.53 Times the Federal Investment as of FY 2009
2009 Annu 2009 Annuaal Reporrt 5

•	 February 17, 2010: All ARRA funds must be under contract or construction.

•	 State Match: No state matching funds are required.

•	 Additional Subsidization: At least 50 percent of ARRA funds must be used to provide additional subsidization, such as grants, principal forgiveness or negative

interest rate loans.

•	 Green Project Reserve: At least 20 percent of ARRA funds must be used for four

types of projects –

(1)	 Green infrastructure,

(2)	 Water efficiency improvements,

(3)	 Energy efficiency improvements, and

(4)	 Environmentally innovative activities

•	 Buy American: All iron, steel and manufactured goods incorporated in projects

that receive any ARRA funds must be made in the United States unless a waiver is

received from EPA.

•	 Davis-Bacon Wage Rates: All laborers and mechanics working on projects funded

in whole or in part by ARRA must be paid prevailing wages as determined by the

U.S. Department of Labor.

FIGURE 3: ARRA REQUIREMENTS AT-A-GLANCE

The ARRA funds, in

addition to the CWSRF’s

base program financing,

are helping to create and

sustain thousands of jobs.
6 Clean Water State Revolving Fund Programs 

Implementing the American Recovery and 

Reinvestment Act

The American Recovery and Reinvestment Act

of 2009 (ARRA) presented a unique challenge

to federal and state governments. With over

20 years of successfully managing the CWSRF,

states were able to hit the ground running. In

fact, a number of states began reaching out to

communities to identify “shovel-ready” projects several months before the stimulus package passed. 

As the House of Representatives and the

Senate passed their versions of the bills, EPA

held online webcasts, meetings, and conference calls with state and Regional EPA CWSRF 

staff to discuss how potential provisions might

be implemented. EPA acted quickly when the

Recovery Act was passed and signed by the

President on February 17, 2009. EPA published

the final ARRA guidance less than two weeks

later, on March 2, allowing states to begin

implementing the provisions of ARRA with minimal delay. 

Due to the significant amount of publicity in

advance of the passage of the Recovery Act,

states received many more – sometimes more

than ten times more – inquiries for funding

than they typically receive in a year. In addition,

state CWSRF staff reached out proactively to

communities to inquire about potential ARRA

projects. State employees worked through

thousands of initial applications to prioritize

the projects based on economic impact, financial need, environmental benefit and adherence to ARRA goals and requirements. 

Additional Subsidization

ARRA included a number of provisions that

were new to the CWSRF; the first being that

at least 50 percent of a state’s ARRA allotment

wasto be provided in the form of grants, principal forgiveness or negative interest rate loans.

These options all have the effect of reducing the repayment amount or eliminating the

project’s CWSRF loan altogether. A number of

states, including Illinois and California, had to

pass emergency legislation to allow them to

provide this type of financing. 
2009 Annual Report 7

States have taken different approaches to the

additional subsidization provision. For example, Florida has limited additional subsidization

to disadvantaged communities and Colorado

has provided additional subsidization to all of

its ARRA borrowers. The flexibility in the ARRA

legislation and the states’ long history of innovation allowed them to devise subsidization

strategies that best met their communities’

needs. 

Green Project Reserve

The ARRA Green Project Reserve called for

states to use 20 percent of their ARRA allotment for green infrastructure, water or energy

efficiency improvements or other environmentally innovative activities. These four categories

of projects are not new to CWSRF programs,

and represent a subset of projects already eligible for funding under federal rules. EPA developed guidance for the Green Project Reserve in

order to ensure proper implementation of this

provision. 

States are using the Green Project Reserve

as an opportunity to reach out to additional

borrowers and projects. Many states such

as Maryland, California and South Carolina

are making efforts to reach out to nonprofit

environmental organizations that had never

utilized CWSRF funds before. he Louisiana

CWSRF program met with stakeholders including mayors, state representatives, the Louisiana Municipal Association and the Louisiana

Police Jury Association to make them aware of

the opportunities provided by ARRA funding.

Iowa formed a variety of partnerships with

entities such as county boards of health, soil

and water conservation districts, conservation

organizations and farm groups to get the word

out about the availability of ARRA funds and

to better coordinate funding efforts between

local and state agencies. 

Davis-Bacon and Buy American

The Recovery Act also mandated the use of

Davis-Bacon federal prevailing wage rates and

American-made iron, steel and manufactured

goods for all projects funded wholly or partially

with ARRA funding. 

These complex provisions pose a number of

challenges to state and federal CWSRF staff

in their efforts to ensure that they are implemented according to the law while minimizing

the administrative burden on project sponsors.

To help inform applicants, EPA and the states

have begun conducting workshops where

implementation of these provisionsis a primary

topic. Iowa held one of the first of such workshops in May 2009. States have been actively

working to develop procedures, checklists and

other guidance to help ensure that these provisions are being implemented correctly by both

the assistance recipients and the state CWSRF 

program.

ARRA Reporting 

EPA, in close collaboration with the states,

launched the CWSRF Benefits Reporting System

(CBR) in 2005. This tool, which captures the

projected water quality improvements associated with each CWSRF project, was quickly

adopted by all state programs. CBR has also

become the primary tool for collecting data on

ARRA projects, including information on jobs

created or retained, contracts awarded, con-
8 Clean Water State Revolving Fund Programs 

struction dates, Green Project Reserve components and additional subsidization. 

EPA created an expanded section of CBR with

all of the necessary ARRA reporting parameters, giving states a one-stop-shop for entering the environmental benefits data for their

ARRA and base program projects as well as

ARRA-specific data (Figure 4). The Office of

Management and Budget (OMB) published its

ARRA reporting guidance on June 22, and EPA

was able to release the CBR ARRA reporting

module approximately a week later. Using CBR,

the CWSRF programs can populate the OMB

reporting template as well as produce reports

required by Congress, eliminating the need for

states to enter this information in several different databases. EPA is also using this database to monitor states’ progress and provide

updates to Congress and the Administration. 

EPA and the states continue to work every day

toward ensuring that the CWSRF achieves all

of the goals and requirements in the Recovery

Act. The states are coordinating with communities and project engineers to verify that

they are meeting all of the ARRA requirements,

while at the same time continuing their efforts

to award their non-ARRA CWSRF funds to projects in a timely manner.

Figure 6: CWSRF Benefits Reporting System’s ARRA Reporting Pa ge

Figure 4: CWSRF Benefits Reporting System’s ARRA Reporting Pa ge
2009 Annual Report 9

Case Studies of Successful State Implementation 

of ARRA

Early Planning Helps Maine Hit the Ground Running

Maine’s CWSRF program began planning for the possibility of stimulus funding well before ARRA

was passed. The CWSRF, which is jointly administered by the Maine Department of Environmental Protection (DEP) and the Maine Municipal Bond Bank, began reaching out to communities and

consulting engineers as early as December 2008.

Based on thisinitial outreach to municipal licensed dischargers and consulting engineers, the DEP 

received more than 200 project proposals from 90 entities totaling over $317 million. Maine was

allotted approximately $29.1 million in ARRA funds. The state developed ARRA project ranking

criteria that first prioritized projects based on environmental benefits and then provided additional points for projects that could begin construction sooner. For example, a project that could

begin construction in June 2009 would receive 31 percent additional points compared to a project

beginning construction in March 2010. The state also offered interest-free loans to all ARRA borrowers plus principal forgiveness between 24 and 100 percent, based on user rate affordability.

As a result of its efforts, Maine had already signed six assistance agreements totaling $14.9 million by June 30, 2009. 

Innovative Programs and Partnerships Advance New York’s 

Green Project Reserve

The New York State Environmental Facilities Corporation (EFC ) established a new program, the

Green Innovation Grant Program (GIGP), to help provide ARRA funding to eligible Green Project

Reserve projects. The EFC created a new category on its Intended Use Plan (IUP) for GIGP projects. New York’s CWSRF program allocated more than $35 million to the GIGP. GIGP funds were

directed to eligible Green Project Reserve projects that were not previously listed on the state’s
10 Clean Water State Revolving Fund Programs 

IUP, and these projects had to go through a

separate application process. Applications were

accepted through May 29, 2009. 

Eligible GIGP applicants included municipalities,

state agencies, private and not-for-profit organizations,school districts and water and conservation districts. To evaluate applications, the EFC 

considered criteria such as readiness to proceed

to construction, reduction in energy and water

use, green energy production, water reuse, project sustainability and innovation. 

The EFC received 294 GIGP project applications, which were reviewed by an interagency panel

that included representatives from the EFC, the New York State Department of Environmental

Conservation, the New York State Department of Health and the New York State Energy Research

and Development Authority. Projects selected for GIGP funding will receive ARRA grants for up

to 90 percent of eligible costs, with the remaining ten percent being provided by local matching

funds. Governor David A. Paterson praised the program and the response rate by saying, “The

Green Innovation Grant Program represents a bold step in advancing the State’s green economy.

I am pleased with the enthusiastic response to this important program, which will spur creative

innovations to help protect our magnificent rivers, lakes and streams, preserving clean water for

future generations.”

To advance its goal of ensuring that all CWSRF projects be efficient in their use of energy, the

EFC also established an innovative partnership with the New York State Energy Research and

Development Authority (NYSERD A), which managesthe New York State Regional Greenhouse Gas

Initiative. The partnership leveraged additional money for energy efficient improvements across

the state. NYSERDA is also performing energy audits on all projects at publicly owned treatment

works on New York’s IUP to identify eligible green components of traditional wastewater infrastructure projects that would not have been identified otherwise. These improvements will be

incorporated into the projects’ financing packages. 

Streamlining and Outreach Help West Virginia Meet its Goals

West Virginia’s CWSRF program, administered by the West Virginia Department of Environmental

Protection (DEP), began reaching out to communities and consulting engineersin December 2008

in anticipation of ARRA. As a result, the state was able to hit the ground running once the legislation passed on February 17, 2009. Within ten days, the DEP released a draft Intended Use Plan,

which was then finalized on March 18, 2009. The state was awarded the majority of its $61.1

million ARRA allotment by EPA on April 3, 2009, becoming one of the first states to receive the

award.

West Virginia’s CWSRF is also working closely with its partnersto ensure thatit can award the funds

quickly. The state’s Public Service Commission (PSC) regulates utility rates and must approve all

water and wastewater infrastructure projects, including CWSRF projects, prior to signing financing agreements. The CWSRF and the PSC are working together to expedite the approval process.

In addition, the West Virginia Infrastructure and Jobs Development Council brings together fund-
2009 Annual Report 11

ing sources and recommends projects for funding. This partnership will allow the CWSRF to cofund a large percentage of its ARRA projects with other funding sources. 

To further assist disadvantaged communities in West Virginia, the CWSRF is forgiving repayment

of 50 to 100 percent of communities’ ARRA financing agreements. In addition, using its authority

to provide extended term financing to communities, the repayment period on the project financing is extended to 40 years, further reducing annual payments made by the assistance recipients.

Using ARRA to Replace Home Wastewater Systems in Ohio

Upgrade and replacement of failing home treatmentsystemsis an important priority in Ohio. The

CWSRF, managed by the Ohio Environmental Protection Agency and the Ohio Water Development Authority, reserved $5 million of the state’s $220.6 million ARRA allotment for this purpose.

They have named this reserve the “Home Sewage Treatment Reserve.” Under this plan, CWSRF 

funds will be awarded to counties or municipalities, who will then provide funding to homeowners for upgrade and replacement of failing home systems. The local communities will be responsible for oversight of projects in their area. 

Each participating homeowner will receive funding for 75 percent of the project from CWSRF 

ARRA funds and provide matching funds for 25 percent of the project. Repayment of the entire

ARRA portion of the assistance will be eliminated under the principal forgiveness provisions of

ARRA (as a result, homeowners essentially receive a 75 percent grant). 

Ohio is using all ARRA funds for principal forgiveness assistance. Non-septic projects will receive

ARRA funds, combined with base CWSRF program loans, in a ratio based on local income levels.

Also, for many communities, the base CWSRF program funding is being offered at a zero percent

interest rate. The state is also aiming to spread the funds to as many communities as possible. 

Targeting Innovative Green Projects in Kansas

The Recovery Act requires that CWSRF programs award at least 20 percent of their allotment

to green projects. The Kansas CWSRF program is taking this requirement one step further and

seeking to not only exceed the 20 percent requirement but also promote “innovative green” projects. Roderick L. Bremby, Secretary of the Kansas Department of Health and Environment, which

manages the state’s CWSRF program, promoted the benefits and opportunities created by ARRA,

saying “Clean water is essential to Kansas communities and the funding provided through the

American Recovery Act will allow for projects to be built that might otherwise have taken years

to come to fruition.” 

The state has set aside one-fifth of its $35.4 million ARRA allotment and received over 60 applications for “innovative green” projects including wetland restoration, green roofs, rain gardens and

other “soft-path” stormwater management projects. These projects will receive loans with 75 to

100 percent of the principal forgiven. 

Kansas also sought out traditional green projects, which include energy efficiency, water reuse,

and use of green energy technologies. The green components of these projects will receive 50

percent principal forgiveness. The remainder of the project funding, including the non-green

components, will be in the form of a loan at the state’s standard CWSRF interest rate. 
12 Clean Water State Revolving Fund Programs 

To accomplish its goal, Kansas developed new project ranking systems for both traditional and

innovative green projects. “Traditional green” projects receive additional priority points for each

month sooner that they will be able to begin construction: projects beginning construction in

April 2009 received 100 additional points, while those beginning construction in January 2010

will receive 10 points. “Traditional green” projects also receive additional priority points based

on improved energy and water use efficiency. For example, a 50 percent reduction in total energy

use at a wastewater treatment plant or sewage pumping station will receive 25 priority points

and a 2 percent reduction in energy use will receive 1 priority point.

“Innovative green” projects are ranked separately based on the type of projects, anticipated

water quality benefits, construction start date and the population benefiting from the project.

Expanded Outreach Results in Historical Funding Levels in Alaska

Alaska’s CWSRF ARRA program is notable for the high level of community outreach that was conducted. First, the Alaska Department of Environmental Conservation developed a streamlined

CWSRF ARRA loan application, which communities could complete electronically. In fact, communities could indicate their interest in ARRA financing through an online questionnaire as early

as December 2008. In addition, to advertise the availability of ARRA funding, the CWSRF program

reached out to all communities, including those that had never applied for CWSRF funds before.

It also reached out to potential borrowers outside the traditional base, such as landfill operators

and recycling facilities. 

To further entice Green Project Reserve and nonpoint source projects to apply for ARRA financing, Alaska’s CWSRF is offering 100 percent principal forgiveness (up to $2.5 million) for those

projects. ARRA point source projects will receive loans with 90 percent principal forgiveness and

10 percent financed at the program’s standard loan terms, which is based on the length of the

loan and municipal bond rates. Loan forgivenessis maximized at $2 million for other projectsthat

do not qualify for the Green Project Reserve.

As a result of its significant outreach efforts, Alaska expects to achieve historical funding levels in

2009 and 2010, and also fund several types of projects for the first time.
2009 Annual Report 13

CWSRF 2009 Performance Highlights5

Successfully Directing Funds to Communities

As Figure 5 demonstrates, state CWSRF programs have been very successful in directing funds

toward projects that address pressing water quality problems. Through 2009, CWSRF programs

have committed 96 percent of the $77 billion in cumulative funds available. This strong rate of

fund utilization demonstrates a high demand for CWSRF financing and is a direct result of the

program’s below market interest rates and flexible financing options, targeted marketing and

outreach initiatives, and effective program management. 

0

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198919901991199219931994199519961997

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20052006200720082009

Billions of Dollars 

Cumulative Funds Available Cumulative Assistance Provided

$77.2

$74

Figure 5: 96 Percent of Funds Committed to Projects as of FY 2009

5

 The 2009 Fiscal Year covers the period from July 1, 2008 through June 30, 2009. Data includes ARRA figures

through June 30, 2009. 
14 Clean Water State Revolving Fund Programs 

A Continued Source of Financing

In FY 2009, the CWSRF funded over $5.2 billion in projects, increasing cumulative assistance

provided to $74 billion. Of the $5.2 billion in assistance provided, approximately $430 million

consisted of ARRA funds. Cumulative assistance will continue to grow as appropriations levels,

interest earnings and loan repayments increase. In addition, states with high demand for CWSRF 

funds will continue to leverage by issuing revenue or general obligation bonds. 

0

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200520042003200220012000199919981997199619951994199319921991199019891988 20072006 20092008

Billions of Dollars (cumulative)

Annual Assistance Cumulative Assistance

$74

$5.2

Figure 6: Cumulative Assistance Reached $74 Billion through FY 2009

0%

1%

2%

3%

4%

5%

6%

7%

8%

19901991

1992

199319941995

1996

1997

199819992000

2001200220032004

20052006

20072008

2009

CWSRF Interest Rate Market Rate*

2.3%

5%

*Market Rate is measured as the Bond Buyer Index for 20 Year, AA-Rated GO Bonds

Figure 7: CWSRF Loans Sa ve Communities 22 Percent

Saving Communities Money

According to a popular municipal borrowing index, the average municipal borrowing rate was 5

percent in 2009. By comparison, the average CWSRF loan had an interest rate of only 2.3 percent.

Communities that borrowed from the CWSRF in 2009 saved an average of 22 percent over the life

of a typical 20-year loan.
2009 Annual Report 15

Funding a Broad Range of Project Types

The CWSRF programs were designed to allow statesthe flexibility to fund projects based on water quality priorities. As a result, CWSRF programs can and do fund a wide range of projecttypes each year. The

CWSRF has cumulatively funded over $70 billion in varioustypes of POT Wprojects, including $41 billion

forsecondary and advanced treatmentfacilities and $29 billion forsewer construction. In addition, over

$3 billion in CWSRF funds has gone towards nonpointsource projectssuch as brownfield rehabilitation,

sanitary landfills, onsite septic systems, hydromodification, agricultural bestmanagement practices and

green stormwater infrastructure since the inception of the program. 

In FY 2009, $3 billion went to secondary and advanced treatment facilities, $1.9 billion went to sewer

construction, and more than $167 million in funds were used for nonpoint source projects such as

brownfield rehabilitation, sanitary landfills, hydromodification, onsite septic systems, agricultural best

management practices and green stormwater infrastructure.

Similarly, $412 million in ARRA funds went towards projects at publicly owned treatment works. Of

this amount, $163 million went to secondary and advanced treatment facilities, and $248 million went

towardssewer construction. An additional $13.7 million in ARRA funds were used for nonpointsource

projects.

96%

40%

19%

12%

18%

10%

4%

1%

Nonpoint Source and Estuary

POTW: Publicly Owned Treatment Works

Secondary Treatment

Advanced Treatment

SSO: Sanitary Sewer Overflow

New Sewers

CSO: Combined Sewer Overflow

Stormwater/Recycled Water Note: chart on the right represents various POTW 

categories

Figure 8: CWSRFs Provide $74 Billion in Financing through FY 2009 
16 Clean Water State Revolving Fund Programs 

35% 42% 67%

11%12%

7%

15%

11%

Less than 3,500

3,500 to 9,999

10,000 to 99,999

100,000 and Above

Number of Assistance 

Agreements (1,966)

Dollar Amount of Assistance 

($5.2 Billion)

Figure 9: Communities Served by CWSRFs in FY 2009

Serving Communities of all Sizes

The CWSRF provides funding to water quality projects in small, medium and large communities

across the country. In FY 2009, 78 percent of all CWSRF assistance agreements, totaling approximately $1.2 billion, were made with communities of fewer than 10,000 people. Large communities received a large amount of funding; nearly $2.2 billion dollars went to communities with

populations of 100,000 or more.6 

Communities with populations below 10,000 people received over 50 percent of ARRA funding as

of June 30, 2009. In fact, more than four in ten ARRA assistance agreements were in communities

smaller than 3,500 people. 

6

 Population data was not reported for all of the financing agreements.
2009 Annual Report 17

Figure 7: ARRA Program Results (February 17 – December 31, 2009)

$23.0 Billion in 

CWSRF Assistance

6,082 Projects 

Financed

...To 2,509 

Communities

$8.3 Billion 

in Cost Savings... 

130 Million 

People Served 

56.7 Billion Gallons 

Per Day Treated Funding for Clean Water Act Goals

$16.6 Billion to Improve Water Quality 

$11.7 Billion to Achieve Compliance

$16.6 Billion to Protect and Restore 

Aquatic Life and Wildlife

$3.4 Billion to Protect and Restore 

Drinking Water Sources

$16.8 Billion to Protect and Restore 

Recreational Uses 

Note: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting System as of 

June 30, 2009, accounting for approximately 31 percent of cumulative CWSRF financing. 

Figure 10: CWSRF Program Results

Improving the Environment

Projected environmental benefits information is available for $23 billion in CWSRF funded projects. This information shows that these projects contribute significantly to the protection and

restoration of rivers, lakes, and streams throughout the country. For example, over $16 billion

went to projects that positively affect aquatic life and wildlife, and over $3 billion funded projects

to protect and restore public drinking water supply.

Impacting Millions of Americans

The CWSRF Benefits Reporting System demonstrates that CWSRF funded projects have improved

water quality for millions of Americans. This includes improved access to water for recreational

purposes for over 107 million people, improvements to water that supports fish and shellfish for

consumption for 43 million people, and improved access to clean drinking water for more than

33 million people.
18 Cleaan Waaterr Staate Revol te Revolving Fund ving Fund PrPrograramss 

State Agencies and EPA Regional Offices that 

Manage CWSRF Programs

The state CWSRF staff and EPA Regional Coordinators are responsible for the enormoussuccess of

the CWSRF program and ARRA. They work tirelessly every day to improve the program and maintain the high level of innovation that has characterized the CWSRF since the beginning. Without

their efforts, none of the results and initiatives discussed in this report would have been possible.

Below is a list of state agencies and EPA Regional Offices.

EPA Region 1 – Boston, Massachusetts

Connecticut Department of Environmental

Protection

Connecticut Office of the Treasurer

Maine Municipal Bond Bank

Maine Department of Environmental

Protection

Massachusetts Water Pollution Abatement

Trust

Massachusetts Department of Environmental

Protection

New Hampshire Department of Environmental

Services

Rhode Island Clean Water Finance Agency

Rhode Island Department of Environmental

Management

Vermont Department of Environmental

Conservation

Vermont Municipal Bond Bank

EPA Region 2 – New York, New York

New Jersey Department of Environmental

Protection

New Jersey Environmental Infrastructure Trust

New York State Environmental Facilities

Corporation

New York Department of Environmental

Conservation

Puerto Rico Environmental Quality Board

Puerto Rico Infrastructure Financing Authority
2009 Annual Report 19

EPA Region 3 – Philadelphia, Pennsylvania

Delaware Department of Natural Resources

and Environmental Control

Maryland Department of the Environment

Pennsylvania Infrastructure Investment

Authority

Pennsylvania Department of Environmental

Protection

Virginia Department of Environmental Quality

Virginia Resources Authority

West Virginia Department of Environmental

Protection

West Virginia Water Development Authority

West Virginia Infrastructure and Jobs

Development Council

EPA Region 4 – Atlanta, Georgia

Alabama Department of Environmental

Management

Florida Department of Environmental

Protection

Georgia Environmental Facilities Authority

Kentucky Infrastructure Authority

Kentucky Division of Water

Mississippi Department of Environmental

Quality

North Carolina Department of Environment

and Natural Resources

South Carolina Department of Health and

Environmental Control

South Carolina Budget and Control Board

Tennessee Department of Environment and

Conservation

Tennessee Comptroller of the Treasury

 

EPA Region 5 – Chicago, Illinois

Illinois Environmental Protection Agency

Indiana Department of Environmental

Management

Indiana Bond Bank

Indiana Finance Authority

Michigan Department of Environmental

Quality

Michigan Municipal Bond Authority

Minnesota Public Facilities Authority

Minnesota Pollution Control Agency

Minnesota Department of Agriculture

Ohio Environmental Protection Agency

Ohio Water Development Authority

Wisconsin Department of Natural Resources

Wisconsin Department of Administration

EPA Region 6 – Da llas, Texas

Arkansas Natural Resources Commission

Arkansas Development Finance Authority

Louisiana Department of Environmental

Quality

New Mexico Environment Department

Oklahoma Water Resources Board

Texas Water Development Board

EPA Region 7 – Kansas City, Missouri

Iowa Department of Natural Resources

Iowa Finance Authority

Kansas Department of Health and

Environment
20 Clean Water State Revolving Fund Programs 

Kansas Department of Administration

Kansas Development Finance Authority

Missouri Department of Natural Resources

Missouri Environmental Improvement and

Energy Resources Authority

Nebraska Department of Environmental

Quality

Nebraska Investment Finance Authority

EPA Region 8 – Denver, Colorado

Colorado Water Resources and Power

Development Authority

Colorado Department of Public Health and

Environment

Colorado Department of Local Affairs

Montana Department of Environmental

Quality

Montana Department of Natural Resources

and Conservation

North Dakota Department of Health

North Dakota Public Finance Authority

South Dakota Department of Environment and

Natural Resources

Utah Department of Environmental Quality

Wyoming Department of Environmental

Quality

Wyoming Office of State Lands and

Investments

EPA Region 9 – Sa n Francisco, California

Arizona Water Infrastructure Finance

Authority

California State Water Resources Control

Board

Hawaii Department of Health

Nevada Department of Conservation and

Natural Resources

EPA Region 10 – Seattle, Washington

Alaska Department of Environmental

Conservation

Idaho Department of Environmental Quality

Oregon Department of Environmental Quality

Washington Department of Ecology

The state CWSRF staff and

EPA Regional Coordinators

are responsible for the

enormous success of

the CWSRF program and

ARRA.
2009 Annual Report 21

PISCES AWARDS: Recognizing Exceptional State 

CWSRF Accomplishments

The 2009 PISCES Awards (Performance and

Innovation in the SRF Creating Environmental

Success) recognized states that have shown

exceptional leadership and effectiveness in

protecting water quality and financial integrity

through the Clean Water State Revolving Fund

program. 

In 2009, a CWSRF PISCES Award was presented to one state from each of the 10 U.S.

EPA Regions. These recipients of the fifth

annual PISCES awards are examples of outstanding performance, creativity, and integrity

in the CWSRF program. Winners were recognized and presented with their awards at the

national SRF workshop hosted by the Council

of Infrastructure Financing Authorities (CIFA) in

Seattle, Washington in November, 2009.
22 Clean Water State Revolving Fund Programs 

Region 9: Hawaii

Region 10: Alaska

Region 8: Wyoming

Region 7: Iowa

Region 6: New Mexico

Improved outreach to Hawaii’s four counties, lower

interest rates and reduced fees have helped increase the

CWSRF program pace from 68 to 97 percent in four years.

In addition, the CWSRF, administered by the Hawaii

Department of Health, is using ARRA funds to replace old

existing pumps with energy-efficient pumps guaranteed

to result in a 20 percent savings in energy costs at Maui’s

wastewater treatment system, and to install solar cells in

Kauai’s Waimea treatment facility to reduce the plant’s

energy costs.

The Alaska Department of Environment Conservation’s

CWSRF program implemented a highly effective outreach

effortin anticipation of ARRA. In addition to itstraditional

borrower base, the CWSRF targeted disadvantaged

communities, landfills, recycling facilities and nontraditional potential assistance recipients. As a result,

Alaska will provide more CWSRF funding to communities

this year than in any single prior year. 

Over the years Wyoming’s CWSRF program has

developed an innovative partnership with the state to

address groundwater remediation issues through their

leaking underground storage tank removal program.

Approximately45percentofWyoming’s CWSRF assistance

has gone to removing leaking underground storage tanks

to protect groundwater. The Wyoming Department of

Environmental Quality and the Wyoming Office of State

Lands and Investment, which jointly manage the CWSRF,

also recognize that water efficiency has become more

critical for wastewater utilities, particularly those in the

West, and have identified and targeted numerous water

reuse projects for CWSRF funding.

Over the past several years, Iowa’s CWSRF , administered

by the Iowa Department of Natural Resources and the

Iowa Finance Authority, has greatly increased outreach to

potential borrowers, consulting engineers, financial advisors

and other stakeholders. These marketing activities have

significantly increased demand forfunds; program pace is at

104 percent as of the end of FY 2009. The Iowa CWSRF also

recently leveraged for the first time in several years.

The New Mexico Environment Department employs a

Community Services Coordinator in its CWSRF program.

The Coordinator performs outreach to communities,

manages the state’s centralized application for all

water and wastewater funding programs, and fosters

coordinationwith otherstate and federalfunding agencies.

The CWSRF also participates in bi-weekly meetings with

other infrastructure financing agencies to coordinate

funding. These efforts have increased the marketability of

the program and resulted in improved pace and increased

transparency of the program’s operations.

2009 Pisces A
2009 Annual Report 23

Region 1: Maine

Region 2: New York

Region 3: west virginia

Region 4: Kentucky

Region 5: indiana

Maine’s CWSRF, administered by the Maine Department

of Environmental Protection and the Maine Municipal

Bond Bank, collaborates with federal and state financing

programs to create affordable funding packages for

communities. Such partnerships helped Maine be a

leader in utilizing ARRA funds quickly.

New York’s CWSRF, a partnership of the New York State

Department of Environmental Conservation and the

New York State Environmental Facilities Corporation,

directed a portion of its ARRA Green Project Reserve to

green upgradesto traditional wastewater projects. It also

worked with the New York State Energy Research and

Development Authority and the New York State Regional

Greenhouse Gas Initiative to leverage $14 million in

funding for energy efficiency improvements

West Virginia more than doubled its cumulative amount

of nonpoint source funding in only one year by using

a watershed approach to funding point source and

nonpoint source projects. The CWSRF, which is managed

by the West Virginia Department of Environmental

Protection, also partnered with the West Virginia

Housing Development Fund to address failing on-site

septic systems. 

Kentucky’s CWSRF, administered by the Kentucky

Infrastructure Authority, partners with other financing

agenciesto reach more projects. It also uses a watershed

approach to funding. These practices have allowed the

state to fund innovative projects under the ARRA Green

Project Reserve, including a terraced reforestation

project and bio-energy management at a horse park.

The Indiana Finance Authority’s CWSRF program

partners with other state and Federal funding agencies

to streamline the financing process and make more

funds available for important water quality projects.

It also partners with the Indiana Department of

Environmental Management to use local pollutant load

data to identify funding priorities and rank projects.

Award Winners
24 Cleaan Waaterr Staate Revol te Revolving Fund ving Fund PrPrograramss 

2009 Financial Performance Overview

The Clean Water Act requires an annual financial audit ofthe 51 state-level CWSRF programs.

Each state and Puerto Rico conducts these

audits according to the generally accepted

auditing standards established by the Governmental Accounting Standards Board (GASB).

States often define their CWSRF programs as

ongoing enterprise funds under the GASB definitions of funds. The standardized financial

statements used for CWSRF programs include

the following:

Statement of Fund Activity

This statement provides an overview of major

indicators of fund activity, including the major

capitalization grant levels, project commitments, and project disbursements. Both

annual and cumulative data are given. 

Statement of Revenues, Expenses, and 

Earnings

This statement describes the overall performance of the CWSRF fund over the reporting

period. 

Statement of Net Assets

This statement describes a fund’s assets and

liabilities through the end of the fiscal year.

Assets include financial assets and capital

assets; liabilities include both current and longterm liabilities. CWSRF fund assets include

grant fundsthat have been drawn from the federal treasury to date, but do not include total

grant awards. 

Statement of Cash Flows

This statement provides a detailed accounting

of the actual flow of cash into and out of the

CWSRF fund. 

Because the 51 constituent CWSRF programs

are independent state-level entities, no nationally audited CWSRF program financial reports

are available. However, using EPA’s National

Information Management System, national

aggregate financial statements have been

developed and are included in the following

pages. The statements are best viewed as nonaudited, cash flow-based financial reports.

Note: American Recovery and Reinvestment Act (ARRA) data as of June 30, 2009 are included in FY 2009 figures.
2009 Annual Report 25

CWSRF National Performance Summary 

(Millions of Dollars)

Annual Fund Activity FY 2009 FY 2008 % Change

Federal Capitalization Grants 2,698 1,164.9 132%

State Matching Funds 114.7 264.3 -57%

New Funds Available for Assistance 7,222.7 4,987.0 45%

Project Commitments (Executed Loan Agreements) 5,231.7 5,837.9 -10%

Project Disbursements 5,151.6 5,530.4 -7%

Cash Draws from Federal Capitalization Grants 870.8 1,176.2 -26%

Cumulative Fund Activity

Federal Capitalization Grants 28,830.4 26,132.4 10%

State Matching Funds 5,686.2 5,571.5 2%

Funds Available for Assistance 77,188.4 69,965.7 10%

Project Commitments (Executed Loan Agreements) 74,045.1 68,813.3 8%

Project Disbursements 64,841.9 59,690.3 9%

Cash Draws from Federal Capitalization Grants 25,662.4 24,791.6 4%

Note: Statement presents a compilation ofreporting from51 state programs and is not audited. umof individual valuesmay not exactly

equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.

Source: EP A’s CWSRF N ational Information Management System (June 30, 2009).

Statement of Fund Activity

FINANCIAL STATEMENT HIGHLIGHTS

•	 Total assets increased by $3.0 billion, a 5.4 percent increase from 2008.

•	 CWSRF program equity (net assets) totals $35.5 billion, a 5 percent increase

from 2008.

•	 Total program revenues exceeded expenses by $1.7 billion, with interest earnings from loans and investments totaling over $1.5 billion.

•	 Loan principal repayments to the CWSRF were $2.6 billion.

•	 Leveraged bond proceeds added $2.4 billion to program cash flow.
26 Clean Water State Revolving Fund Programs 

Operating Revenues FY 2009 FY 2008 % Change

Interest on Investments 536.1 734.7 -27%

Interest on Loans 1,023.7 956.4 7%

	 Total Operating Revenues 1,559.8 1,691.1 -8%

Operating Expenses

Bond Interest Expense 745.5 1,009.7 -26%

CWSRF Funds Used for Refunding 0.0 135.5 -100%

Amortized Bond Issuance Expense 14.7 14.4 2%

Administrative Expenses 41.8 43.7 -4%

Total Expenses 802.0 1,203.4 -33%

Nonoperating Revenues and Expenses

Federal Contribution 870.8 1,176.2 -26%

State Contributions 68.2 205.7 -67%

Transfers from (to) DWSRF 1.7 (11.4) 115%

	 Total Nonoperating Revenues (Expenses) 940.7 1,370.4 -31%

Increase (decrease) in Net Assets 1,698.5 1,858.1 -9%

Net Assets

Beginning of Year 33,800.5 31,942.4 6%

End of Year 35,499.0 33,800.5 5%

Note: Statement presents a compilation ofreporting from51 state programs and is not audited. umof individual valuesmay not exactly

equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.

Source: EP A’s CWSRF N ational Information Management System (June 30, 2009).

Statement of Revenues, Expenses, and Ear nings
2009 Annual Report 27

Operating Activities FY 2009 FY 2008 % Change

Cash Draws from Federal Capitalization Grants 870.8 1,176.2 -26%

Contributions from States 68.2 205.7 -67%

Loan Disbursements Made to Borrowers (5,151.6) (5,530.4) 7%

Loan Principal Repayments 2,597.6 2,301.2 13%

Interest Received on Loans 1,023.7 956.4 7%

Administrative Expenses (41.8) (43.7) 4%

	 Total Cash Flows from Operating Activities (633.0) (934.7) 32%

Noncapital Financing Activities

Gross Leveraged Bond Proceeds 2,398.1 1,966.5 22%

Bond Issuance Expense (18.7) (20.4) 8%

State Match Bond Proceeds 46.5 58.6 -21%

Cash Received from Transfers with DWSRF 1.7 (11.4) 115%

Interest Paid on Leveraged and State Match Bonds (745.5) (1,009.7) 26%

CWSRF Funds Used for Refunding 0.0 (135.5) 100%

Principal Repayment of Leveraged Bonds (1,055.3) (953.9) -11%

Principal Repayment of State Match Bonds (69.8) (76.3) 9%

	 Net Cash Provided by Noncapital Financing Activities 557.1 (182.1) 406%

Cash Flows from Capital and Related Financing 

Activities

0.0 0.0

Investing Activities

Interest Received on Investments 536.1 734.7 -27%

Deposits to Debt Service Reserve for Leveraged Bonds (244.4) (118.9) -106%

Net Cash Provided by Investing Activities 291.7 615.8 -53%

Net Increase (Decrease) in Cash and Cash Equivalents 215.7 (500.9) 143%

Beginning Balance - Cash and Cash Equivalents 8,932.0 9,433.0 -5%

Ending Balance - Cash and Cash Equivalents 9,147.8 8,932.0 2%

Note: Statement presents a compilation ofreporting from51 state programs and is not audited. umof individual valuesmay not exactly

equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.

Source: EP A’s CWSRF N ational Information Management System (June 30, 2009).

Statement of Cash Flows
28 Clean Water State Revolving Fund Programs 

Assets FY 2009 FY 2008 % Change

Cash and Cash Equivalents 9,147.8 8,932.0 2%

Debt Service Reserve - Leveraged Bonds 7,458.6 7,214.2 3%

Loans Outstanding 42,357.0 39,803.0 6%

Unamortized Bond Issuance Expenses* 298.4 294.4 1%

Total Assets 59,261.7 56,243.7 5%

Liabili ties

Match Bonds Outstanding 545.4 568.6 -4%

Leveraged Bonds Outstanding 23,217.3 21,874.5 6%

Total Liabilities 23,762.7 22,443.2 6%

Net Assets

Federal Contributions 25,662.4 24,791.6 4%

State Contributions 4,299.5 4,231.3 2%

Transfers - Other SRF Funds (397.2) (398.9) 0%

Other Net Assets 5,934.3 5,176.5 15%

	 Total Net Assets 35,499.0 33,800.5 5%

Total Liabili ties & Net Assets 59,261.7 56,243.7 5%

Note: Statement presents a compilation ofreporting from51 state programs and is not audited. umof individual valuesmay not exactly

equal the total due to rounding error. 2008 data was revised from the 2008 Annual Report to incorporate updated state information.

Source: EP A’s CWSRF N ational Information Management System (June 30, 2009).

*Unamortized Bond Issuance Expenses are costs that have been incurred but have not been fully recognized (amortized). hese costs

will be recognized (amortized) over time over the remaining life of the bonds outstanding, similar to a pre-paid expense, and consistent

with GAAP

Statement of Net Assets
2009 Annual Report 29

CWSRF Initiatives for FY 2010

In 2010, EPA will continue working with the

CWSRF programs to expand assistance to nontraditional projects, such as stormwater management, clean energy, replacement of failing

septic systems and cleanup of contaminated

sites. In addition, EPA will also continue its

existing projects to maximize the benefits of

the CWSRF program and promote professional

development. The initiatives include:

Partners hip for sustainable 

communities

On June 16, 2009, EPA, the Department of

Transportation (DOT ) and the Department

of Housing and Urban Development (HUD)

announced an exciting new partnership. The

HUD-DOT -EPA Interagency Partnership for

Sustainable Communities is an innovative collaboration between the three agencies with

the goal of coordinating federal investments in

housing, transportation, clean water and other

infrastructure elements to protect the environment, promote equitable development, discourage sprawl and address climate change.

As EPA Administrator Lisa Jackson noted in her

June 16, 2009 address to Congress, “As part

of our partnership with DOT and HUD, we will

work with states and tribes to harmonize water

infrastructure investments with transportation

and housing investments to promote smarter

growth.”

The Clean Water State Revolving Fund will play

a critical role in the Partnership for Sustainable

Communities. The partnership will build on the

significant flexibility of state CWSRF programs

to direct funds to important sustainable infrastructure priorities. New Jersey’s CWSRF program, for example, has a history of providing

financial incentives for projects that promote

smart growth. Wastewater, stormwater and

nonpoint source projects in urban centers and

mixed-use developments in New Jersey can

obtain financing at lower interest rates than

the state’s typical CWSRF rates. The Partnership for Sustainable Communities will encourage states to incentivize projects that implement sustainable management practices.

•	 EPA will be sponsoring a CWSRF Pilot Program for Sustainable Communities. Under

this program, several states will receive

technical assistance from EPA to modify or

expand their CWSRF programs to encourage development under the principles of
30 Clean Water State Revolving Fund Programs 

the Partnership for Sustainable Communities. The goal is to use the results and

lessons learned from the pilot program

to promote more widespread adoption of

practices that encourage states to reinvest

in their existing infrastructure systems.

At the conclusion of the pilot program,

EPA will publish a best practices guide for

CWSRF programs who wish to adopt the

principles of sustainable development.

•	 The Green Project Reserve, introducedinto

the CWSRF program by ARRA, has been

extended to the 2010 CWSRF appropriation. As a result, 20 percent of the funding provided by the 2010 appropriation

will be directed to green infrastructure,

water or energy efficiency improvements

or other environmentally innovative activities. Many states used this opportunity

under ARRA to fund projectsthat promote

low-impact development and prevent

stormwater runoff – important aspects of

sustainable communities.

•	 In orderto help ensure that projectsfunded

with federal CWSRF funds are sustainable,

EP A will also be working with states and

utilities to develop guidance that describes

the elements of a system-wide planning

process and a series of best practices for

potential CWSRF funding recipients. These

practices will help potential recipients

inventory, assess and characterize their

critical infrastructure assets, ensure that

the necessary pricing structures are in

place to operate and maintain these assets,

and establish, where appropriate, collaboration, partnership, or restructuring relationships with higher capability entities.

Chesapeake Bay Meeting 

EPA will host a meeting in 2010 with states

within the Chesapeake Bay watershed to discuss the role of the CWSRF in protecting and

restoring the Bay. State CWSRF managers and

staff will discuss the types of projects they are

already funding to achieve this goal, including

examples of ARRA-funded projects that can

be easily replicated in other states. The use of

CWSRF eligibilities that are not currently utilized, as well as strategies for implementing

these eligibilities (such as inter-state lending

opportunities) will also be discussed.

CWSRF Financial Management and 

Overs ight 

With over $77 billion in funds available for

loans, states and EPA devote a significant

amount of energy to ensuring adequate oversight and management of CWSRF financial

resources. In 2010, EPA will assist these efforts

through activities such as the following: 

•	 In 2009, EPA held a successful workshop on

oversight and management of the CWSRF 

programs for new federal employees. In

2010, EPA will follow up that successful

event with a new EPA employee workshop

on SRF financial management practices.

The workshop will cover transaction testing, audits, leveraging and other topics. 

•	 EPA will continue development of the

CWSRF Financial Accreditation Program,

which aims to ensure that state and EPA

staff is knowledgeable of financial management requirements, processes and

statutes. The Accreditation Program

consists of a series of open book exams

on topics such as cash draws, audits and

municipal finance.
2009 Annual Report 31

Expanded CWSRF Marketing and

Outreach 

Marketing and outreach are essential elements

of the continued success and growth of the

CWSRF programs. EPA will continue to work

on enhancing outreach efforts in the next year

with various tools:

•	 ARRA brought with it a focus on “green”

projects, due to a requirement to use 20

percent of the capitalization grant for

green infrastructure, water or energy

efficiency improvements or other environmentally innovative activities. This

requirement is also included in the

CWSRF’s FY 2010 appropriations. EPA will

continue working with states on meeting

this requirement, providing numerous

case studies of successful projects, and

working with stakeholders to encourage

effective use of the Green Project Reserve.

•	 EPA’s biannual newsletter, SRFs Up, has

been a successful tool to provide information on new developments and innovations in the CWSRF. It has been used

to highlight creative practices, showcase

innovative projects and discuss developments in Washington D.C. 

•	 CWSRF Activity Updates provide more

extensive case studies and analyses of

financial and programmatic innovations

implemented throughout the country. For

example, in 2009, EPA published an activity update on using geographic information systemstechnology to achieve CWSRF 

program goals. Activity updates will be

developed in 2010 to highlight other compelling topics. 

•	 The Financing Alternatives Comparison

Tool (FACT) allows users to compare the

true costs of different financing options. It

has been used successfully in severalstates

to help communities determine their most

cost-effective financing options. EPA will

be releasing a simplified version of FACT,

referred to as FACT-Lite, to streamline the

data entry requirements and open up the

tool to a wider audience.

Enhancing CWSRF Performance and 

Overs ight 

EPA and states conduct a significant amount of

oversight of programs and projects. ARRA has

introduced new challenges to these processes. n

2010, EP A plansto conductthe following activities:

•	 EPA has long performed annual reviews of

stateprocedures and transactions. n2009,

due to the greater capitalization amount,

the CWSRF ARRA funds will undergo

reviews bi-annually. hese reviews will

continue through 2010. n addition, EP A

will maintain its practice of evaluating EP A

Regional Offices in 2010.

•	 TheBenefits Reporting Systemhasbecome

an invaluable tool to demonstrate the

positive water quality and public health

impacts of CWSRF projects. In 2010, EPA

will continue to refine and enhance this

reporting tool. 
32 Clean Water State Revolving Fund Programs 

CWSRF AT-A-GLANCE

Funds Available for Projects Assistance Provided to Projects

(Billions of Dollars) 2009 1998-

2009

Total Funds 7.2 77.2

Federal Cap Grants 2.7 28.8

State Match 0.11 5.7

Net Leveraged Bonds 2.2 24.6

Net Loan Principal

Repaid

1.5 13.2

Net Interest Earnings 0.8 6.3

Net Transfers with

DWSRF

0.002 (0.3)

Less Administration (0.1) (1.1)

Number of Loans: 2009 = 1,971; Total =

24,688

Return on Federal Investment = 2.53

SRF Assistance As % of Funds Available =

96%

Interest Rate in 2009 = 2.3% (Market=5%)

27 States Leverage; 21 Issue Match Bonds

42 States Fund Nonpoint Source Projects

30 States Use Integrated Priority Systems

48 States Conduct Separate Audits

40 States Fund Separate Grant / Loan

Programs

(Billions of Dollars) 2009 1998-

2009

2009 

ARRA

Total Project Type 5.2 74.0 0.43

Wastewater Treatment

5.0 70.3 0.41

Nonpoint Source 0.2 3.0 0.02

Not Classified 0 0.7 0

Total Population 

Served

5.2 74.0 0.43

<3,500 0.6 7.9 0.11

3,500-9,999 0.6 8.8 0.11

10,000-99,9999 1.8 25.0 0.16

100,000-and Above 2.2 32.3 0.05

Wastewater 

Treatment

5.0 70.3 0.41

Secondary Treatment1.8 28.0 0.13

Advanced Treatment1.3 13.1 0.03

SSO Correction 0.5 8.3 0.07

New Sewers 0.7 12.8 0.13

CSO Correction 0.5 7.2 0.02

Storm Sewers 0.1 0.5 0.02

Recycled Water 0.1 0.4 0.01
2009 Annu 2009 Annuaal Reporrt 33

For more information about the Clean Water 

State Revolving Fund, please contact:

Clean Water State Revolving Fund Branch

U.S. Environmental Protection Agency

1200 Pennsylvania Avenue, NW (Mail Code 4204M)

Washington, D.C. 20460

Phone 202.564.0752

Fax 202.501.2403

www.epa.gov/owm/cwfinance/cwsrf
Infrastructure

Loans

Performance

Clean Water

State Climate Change

Sustainability

Capital

Stimulus

Human Health

Savings

Wastewater Green

Finance

Water Quality

Communities

Watersheds

Creating Jobs

Revolving Fund

Strategic Management

Investment

Leveraging Public Utilities

Estuary Protection

Stormwater

Performance

Asset Management

OFFICE OF WATER · JUNE 2010 · EPA-832-R-10-001