2

20 YEARS OF PROGRESS

Yesterday, Today & Tomorrow

2007 annual report

Clean Water State 

Revolving Fund Programs
“Celebrating its 20th anniversary, the Clean Water State Revolving Fund 

Program continues to be an essential source of affordable funding for 

projects that help improve and maintain the quality of our nation’s waters. 

The Clean Water State Revolving Funds in 50 States and Puerto Rico 

demonstrate the power of partnerships to leverage, innovate, and excel 

in meeting sustainable water infrastructure, watershed protection, and 

community health needs.” 

Benjamin H. Grumbles

Assistant Administrator, Office of Water
Yesterday, Today & Tomorrow 20 Years Of Progress | 

Contents

4	 Yesterday—The History and Background of

the CWSRF Programs

8	 Today—The CWSRF Programs After Twenty Years

20	 State Agencies that Manage CWSRF Programs

22	 The 2007 PISCES Awards: Recognizing

State Leadership

24	 Tomorrow—The Next Five Years: Taking the

CWSRF Programs to New Heights

29	 2007 Financial Performance Overview

32	 CWSRF At-A-Glance
| Clean Water State Revolving Fund Programs 2007 annual report

Timeline of CWSRF History and Accomplishments

1972

Federal Water Pollution Control Act

imposes stricter standards on wastewater

treatment, and appropriates grant funds for

the construction of wastewater infrastructure.

1977

The Clean Water Act passes Congress,

further strengthening the grant program

to help comply with new rules governing

pollution discharges into surface waters.

1984

Completion of the paper,“Study of

the Future Federal Role in Municipal

Wastewater Treatment,”recommending

the creation of State Revolving Funds.

1987

Amendments to the Clean Water Act

pass Congress, creating the Clean Water

State Revolving Fund and phasing out

the Construction Grants program.

EPA has provided over $50 billion in grants for

wastewater infrastructure since the early 1970s.

1988

March 30,1988:The first CWSRF capitalization

grants are awarded to Tennessee and Texas.

By the end of the reporting year (June 30, 1988),

states have awarded 28 CWSRF loans for

$37.7 million.

1989

Iowa and New Jersey are the first

states to leverage, yielding a total

of $79.2 million.

EPA’s Environmental Financial

Advisory Board is created, devoting

a significant amount of attention to

the CWSRF.

1990

CWSRF programs are established

in all 50 states and Puerto Rico.

Annual assistance provided surpasses

$1 billion: 243 projects totaling $1.1 billion.

Maryland and Washington fund the

first nonpoint source projects for a total

of $321,510.

1991

Rapid growth continues: 405 projects

are funded totaling $2.5 billion.

Cumulative assistance provided

exceeds 50% of cumulative available

funds (53%).

Cumulative leveraged bonds issued

by the CWSRF exceed $1 billion

($1.1 billion).

1992

Cumulative state match contributions

surpass $1 billion ($1.2 billion).

Cumulative assistance agreements top 1,000.

1993 

Cumulative assistance provided reaches

75% of cumulative available funds.

1994

Cumulative assistance provided exceeds

$10 billion, reaching $11.4 billion.

Linked-deposit loan program is

developed by Ohio.

For the first time, annual leveraged

bonds issued reach $1 billion.

1995

The CWSRF funds over 100 nonpoint

source projects in one year—129

projects totaling $160.6 million.

1996

The Drinking Water State Revolving

Fund, modeled after the success

of the CWSRF, is created by the

Safe Drinking Water Act.

NIMS (National Information Management

System) for CWSRF is created, providing

a central source for programmatic

and financial data.

70

60

50

40

30

20

10

Billions of Dollars

1988

1989

1972

1977

1984

1987
2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1994

1995

1993

1992

1990

1991

2007

Yesterday, Today & Tomorrow 20 Years Of Progress |

1997­|10 Years of the CWSRF

The average CWSRF interest rate is 2.9%

compared to the market rate of 5.7%,saving

communities an average of 21% on their loans.

Since the beginning of the CWSRF,

5,641 projects have been funded with

$19.8 billion; of this, $5.8 billion

originated due to leveraging.

1998

Cumulative assistance provided tops

$20 billion dollars, reaching $22.9 billion.

New York and New Jersey are the first

states to take advantage of cross-investment

and cross-collateralization of the CWSRF

and DWSRF programs, allowing them

to use the stronger bond ratings of the

more mature CWSRFs to leverage their

DWSRFs at more favorable rates.

1999

Over 500 nonpoint source projects receive

CWSRF loans in one year—529 projects

for $143.2 million.

2000

Annual assistance provided surpasses

$4 billion for the first time: 1,373 projects

for $4.2 billion.

2001

Increased demand for funding and efficient

fund use allow cumulative assistance provided

to reach 90% of cumulative available funds.

Cumulative assistance agreements top 10,000.

Cumulative leveraged bonds issued

exceed $10 billion ($10.1 billion).

2002

69% of annual assistance agreements serve

communities of fewer than 10,000 people,

continuing a trend of reaching more

small communities.

2003

Cumulative federal capitalization grants

exceed $20 billion, demonstrating strong

federal support.

2004

Cumulative assistance agreements top 15,000.

2005

Growth continues: cumulative assistance

provided exceeds $50 billion, reaching

$52.6 billion.

EPA and the Association of State and

Interstate Water Pollution Control

Administrators (ASIWPCA) develop

an Environmental Benefits Reporting System

to document the environmental and public

health benefits of CWSRF financed projects.

The Performance and Innovation in the SRF

Creating Environmental Success (PISCES)

awards program recognizing the most

creative and effective states and borrowers in

protecting and restoring water quality begins.

2006

Annual assistance provided reaches $5 billion

for the first time, funding 1,859 projects.

Over 1,000 nonpoint source projects

are funded for the first time in one year—

1,183 projects for $370.3 million.

2007|20 Years of the CWSRF

March 21-23: Paying for Sustainable

Water Infrastructure conference is held

in Atlanta, GA.

Cumulative assistance provided surpasses

$60 billion, reaching $63 billion.

EPA drafts “The Clean Water State

Revolving Fund: Tapping its Untapped

Potential”to reaffirm the wide range of

projects eligible for CWSRF assistance.

97% of cumulative available funds are

committed to projects, the highest rate ever.

Cumulative leveraged bonds issued reach

$20 billion ($20.6 billion).
| Clean Water State Revolving Fund Programs 2007 annual report

The History and Background of the CWSRF Programs

In 1987, Congress established the Clean Water State

Revolving Fund (CWSRF), a groundbreaking infrastructure

financing program designed to help protect and restore water

quality in our nation’s rivers, lakes, and estuaries.While the

federal government, through EPA, already had a strong

tradition of supporting water quality infrastructure through

the Construction Grants program, the Clean Water Act

Amendments of 1987 (the Act) ushered in a new era of clean

water financing.The Act created the Clean Water State

Revolving Fund, an innovative,self-sustaining funding source

forwastewaterinfrastructure,nonpointsource,and estuary projects.

Yesterday 
Yesterday, Today & Tomorrow 20 Years Of Progress |

Implemented through a collaborative effort between

EPA and states, the CWSRF program consists of

independent revolving loan funds in each of the

50 states and Puerto Rico.The program empowers

states to fund projects according to state water quality

priorities and helps communities by providing

low-cost financing for critically important projects. 

The 51 funds are capitalized by federal and state

contributions, reflecting the cooperative nature

of the CWSRF. For every dollar contributed by

the federal government,states contribute 20 cents.

Since the first federal capitalization grants in 1988,

the total federal appropriation to the 51 CWSRF

programs has reached over $25 billion, with

corresponding state contributions of $5.3 billion.

The 51 CWSRF programs operate essentially as

environmental infrastructure banks.The programs

provide low-interest loans to a wide variety of

eligible water quality projects, and loan repayments

are recycled back into individual CWSRF programs.

Principal repayments plus interest earnings become

available to fund new water quality projects,

allowing the funds to “revolve” over time. States

can also increase their CWSRF financing capacity

by issuing CWSRF-backed revenue or general

obligation bonds.To date, 27 states have leveraged

their programs in this way, raising an additional

$20.6 billion for important water quality projects.

Figure 1 shows how the CWSRF program works.

Under the provisions of the statute, CWSRF loan

interest rates can range from zero percent to the

prevailing market rate.This gives states the flexibility

to set specific loan terms based on their own water

quality funding priorities, and to offer affordable loan

terms to all types of communities. Historically, states

have provided very attractive terms for CWSRF loans.

Interest rates on loans have averaged approximately

two percentage points below prevailing municipal

market rates, with some states even providing

interest-free loans for economically disadvantaged

communities. As a result of the interest rate subsidy,

communities taking CWSRF loans in 2007 will

save more than 18 percent over the life of a typical

20-year loan compared to conventional financing.

In addition to loans, the Act provides a variety

of assistance options including purchasing or

refinancing local debt, providing guarantees or

purchasing insurance for local debt, and providing

guarantees for loans made by substate revolving

funds. As water quality problems and solutions have

evolved, CWSRF programs have used the significant

flexibility offered by the Act to create a wide variety

of financial structures.These options have allowed

the programs to achieve higher levels of funding

while continuing to provide a valuable subsidy to

borrowers. More importantly, this broad flexibility

has assisted borrowers who in many cases would not

be able to access and afford other financing options.

“The CWSRF is an example of a successful 

federal/state cooperation on a significant 

program providing for projects from the 

smallest to the largest.” 

Robert Lenna 

Executive Director, Maine Municipal Bond Bank
| Clean Water State Revolving Fund Programs 2007 annual report

Figure 1 | How the CWSRF Program Works

Loan Repayments

Low-Interest Loans

Bond Repayments

Federal Capitalization Provides Initial Funding

EPA

State

B

ond

Proceeds

Clean Water State 

Revolving Fund

Wastewater 

Treatment

Nonpoint 

Sources

Estuary 

Protection

Bond Holders

Prov

di e

Ad

ditional Funding

(20 Percent of Federal Capitalization)

Matches Federal Capitalization Grants
Yesterday, Today & Tomorrow 20 Years Of Progress |

States also have significant latitude in the types

of projects that CWSRF programs can fund.

The Act allows states to not only fund traditional

wastewater treatment infrastructure, but also

opens up financing to nonpoint source and estuary

projects that protect or improve water quality.The

programs have financed water quality projects on

farms, the purchase of land to protect drinking

water sources, and the remediation of brownfield

sites to address their impact on local water quality.

The innovative structure and significant flexibility

provided to the CWSRF programs have resulted

in impressive financial and environmental

accomplishments.The combination of federal

capitalization,state match contributions, leveraging,

reflows from loan repayments, and interest earnings on

loans and investments has allowed the funds to grow

beyond what was imagined in 1987. States have been

able to turn $25 billion in federal capitalization and

$5.3 billion in state matching funds into $65 billion

in total funds available.The revolving nature of the

program will ensure that CWSRF monies are available

to fund water quality projects for generations to come.

Today, as the CWSRF programs celebrate 20 years

of financing America’s water quality, their mandate

remains as important as it was two decades ago.

The following sections of this Annual Report

highlight current and future initiatives that have

the overall goal of expanding the programs’ vital

contributions to the environment and public health.
| Clean Water State Revolving Fund Programs 2007 annual report

The CWSRF Programs After Twenty Years

The spirit of innovation that was present with the

introduction of the CWSRF in 1987 remains a driving

force in the operation and management of the program.

A dynamic exchange of new ideas at the state and federal

levels has helped the CWSRF programs grow and succeed

year after year. At the same time, 20 years of experience

have produced well-managed state programs that integrate

planning, measurement, and outreach to achieve important

water quality benefits.

Today
Yesterday, Today & Tomorrow 20 Years Of Progress |

2007 CWSRF Program Highlights

Since the inaugural CWSRF project was funded

in 1988, the 51 CWSRF programs together have

provided $63 billion in assistance for water quality

projects through 20,711 loans.In 2007, the programs

reached a new high for single-year financing, providing

nearly $5.3 billion in assistance to communities

of all sizes as well as farmers, homeowners, small

businesses, and nonprofit organizations.

While wastewater treatment projects have

comprised 96 percent of all CWSRF funding

to date, over $2.6 billion has gone to nonpoint

source and estuary projects (as shown in Figure 2).

This considerable amount of funding for nonpoint

source projects illustrates an awareness that water

quality problems can be caused by a variety of activities

and will often have a range of project solutions.

The low cost and flexibility of CWSRF financing has

helped the programs serve communities of all sizes.

In 2007, two-thirds of all loans went to communities

with populations below 3,500.In addition, over

$1.1 billion in assistance went to communities with

fewer than 10,000 people (as shown in Figure 3).

Figure 3 | CWSRFs Served 

Communities of All Sizes in 2007

Population

Less than 3,500

3,500 to 9,999

10,000 to 99,999

100,000 and above

10%

17%

7%

66%

Dollar Amount of 

Assistance 

($5.3 Billion)

Number of Assistance 

Agreements (2,055)

45%

12%

9%

34%

Figure 2 | CWSRFs Fund $63 Billion 

in Clean Water Projects through 2007

POTW: Publicly Owned Treatment Works; SSO: Sanitary

Sewer Overflow; CSO: Combined Sewer Overflow

Note: Lower chart represents various POTW categories

Nonpoint Source 

and Estuary

POTW

96%

4%

Stormwater/ 

Recycled Water 

1%

New

Sewers

19% CSO

10%

SSO

11%

Advanced 

Treatment

18%

Secondary 

Treatment

41%
10 | Clean Water State Revolving Fund Programs 2007 annual report

Sound financial management, continued federal

support, and the unique revolving structure of

CWSRF programs have enabled them to address the

increasing demand for water infrastructure financing.

As a result, they have provided nearly $63 billion in

financial assistance over the past 20 years (as shown in

Figure 4).The programs are projected to continue to

grow over time, as interest earnings and repayments

of loans increase. Nationally, the CWSRF program

provides a remarkable return on federal investment:

over the last 20 years, the program has financed $2.31

in projects for every dollar the federal government

has invested (as shown in Figure 5).This success

has led the program to serve as a model for other

revolving loan funds around the U.S. and the world.

The high demand for CWSRF funds nationwide

can be attributed to high needs, low interest

rates, flexible financing options, and the efforts

of state and federal CWSRF staff.The rate of

fund utilization has increased steadily since 1988,

signaling increasing demand for funds as well as

Figure 4 | CWSRF Cumulative Assistance Reaches $63 Billion in 2007

Annual Assistance	 Cumulative Assistance

70

60

50

40

30

20

10

0

19881989199019911992199319941995199619971998199920002001200220032004200520062007

Billions of Dollars

Figure 5 | CWSRFs Return 2.31 Times the Federal Investment as of 2007

60

50

40

30

20

10

0

19881989199019911992199319941995199619971998199920002001200220032004200520062007

Billions of Dollars (Cumulative)

Federal Outlays	 CWSRF Disbursements

54.6

23.6

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.
Yesterday, Today & Tomorrow 20 Years Of Progress | 11

efficient state operations. As of 2007, 97 percent of

all available funds were committed to projects, an

impressive increase from the 53 percent committed

in 1990.To meet high levels of demand, 27 states

have chosen to implement leveraging approaches by

issuing revenue and general obligation bonds that

are secured by CWSRF assets.Through leveraging,

states have increased their capacity to finance

important water quality projects by $20.6 billion.

Maximizing Results with 

Environmental Benefits 

The recently implemented CWSRF Benefits

Reporting System has produced a quantifiable

record of the positive environmental and public

health impact of CWSRF investments. Figures 6, 7,

and 8 present data reported in the Benefits Reporting

System to date.The Benefits Reporting System was

launched in 2005 and was quickly adopted by all

Figure 6 | CWSRF Projects Support Surface Waterbody Designated Uses

2,000

1,600

1,200

800

400

0

Number of Projects

Aquatic Life	 and WildlifeRecreation Fish and Shellfish

Consumption

Drinking Water Agricultural

Water Supply

Other

Protect

Restore

Note: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting System to date, accounting

for approximately 25% of total cumulative CWSRF financing.Individual projects may support multiple designated uses.

Figure 7 | Impaired Waterbody Protection and Restoration: Population Served

Drinking Water

Other

Secondary Contact Recreation

Fish and Shellfish Consumption

Primary Contact Recreation

Aquatic Life and Wildlife

0 10 20 30 40 50 60

Millions of People

Note: Graph represents the cumulative amount reported by states in the CWSRF Benefits Reporting System to date, accounting

for approximately 25% of total cumulative CWSRF financing. Double-counting may occur due to populations served by projects

with multiple designated use protection objectives.
12 | Clean Water State Revolving Fund Programs 2007 annual report

CWSRF programs as a useful tool for capturing

the environmental results associated with CWSRF

projects.This system, developed through a collaborative

effort between EPA and the states, allows users to

record the anticipated water quality improvements

from every CWSRF loan used toprotect and restore

waterbodies. All 51 programs have used the Benefits

Reporting System to track the environmental impact

of 4,878 projects.The data link $15.8 billion in

CWSRF loans to projects that protect and restore

drinking water sources,recreational areas, and aquatic

wildlife throughout the country.In 2007 alone,

CWSRF programs funded more than 964 projects

designed to protect and restore waterbodies, including

597 projects that benefit human health.The data

show that in assisting borrowers through billions of

dollars in interest savings, the CWSRF programs are

directly benefiting millions of Americans who rely

on clean water for health, recreation, and irrigation.

Discovering New Uses for Benefits Information 

Use of the Benefits Reporting System is becoming

more sophisticated as states and EPA consider new

ways to harness the data for state-level CWSRF

management activities, such as planning, reporting,

and marketing. For instance, benefits information

can be used to target CWSRF funding to projects

that will have the greatest positive impact on water

quality, and to demonstrate program achievements

to state decision makers. EPA is encouraging more

states to integrate this information into their program

management activities and is currently developing

new ways that the Benefits Reporting System can

be used as a strategic tool by CWSRF programs.

Coordination with EPA “WATERS” Data 

EPA is tapping existing data sources to enhance

the Benefits Reporting System’s contributions and

capabilities.In 2007, the EPA Office of Water began

uploading benefits data into Watershed Assessment,

Tracking & Environmental ResultS (WATERS),

an EPA platform for storing national information

on nutrient criteria, water quality standards, and

impaired waters. Using the WATERS platform,

CWSRF managers will have access to additional

queries, data, tables, and reports that will help

them analyze and showcase Benefits Reporting

information in new ways. EPA is also exploring ways

that the Benefits Reporting System can be used in

conjunction with state and local environmental data

systems to help states identify facilities, communities,

and waterbodies that need CWSRF assistance.

Mapping CWSRF Benefits 

EPA is evaluating ways that EnviroMapper, a

Geographic Information System (GIS) based

WATERS application, can be used to create

customized maps showing where CWSRF

environmental benefits have occurred.In 2007,

EPA began working with several states to learn

how their current GIS capabilities can be used to

map data on CWSRF projects. Over the next few

“As immediate needs began to be fulfilled, 

many CWSRFs and communities jumped at 

the chance to design unique nonpoint source 

and land protection programs.”

Victoria Kennedy 

Environmental Finance Consultant
Yesterday, Today & Tomorrow 20 Years Of Progress | 13

Figure 8 | Linking CWSRF Financing to the Protection and Restoration of our Nation’s Waters

$5.2 Billion of 

Cost Savings...

94.9 Million 

People Served

Funding for Clean Water Act Goals

4,878 Projects

financed

...to 1,828 Communities

19.4 Billion gallons

per day treated

$11.3 Billion to improve water quality

$8.1 Billion to achieve compliance

$10.6 Billion to protect and restore aquatic

life and wildlife

$2.5 Billion to protect and restore

drinking water sources

$11.7 Billion to protect and restore

recreational uses

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

System to date, accounting for approximately 25% of total cumulative CWSRF financing.

$15.8 Billion in 

CWSRF Loans

“For the first time, U.S. EPA 

and State Water Programs 

are documenting the significant 

cost savings and environmental 

contributions of the CWSRF. 

Such accountability is vital 

at the national and state levels.”

Linda Eichmiller 

Executive Director, ASIWPCA
14 | Clean Water State Revolving Fund Programs 2007 annual report

years, EPA plans to continue exploring how GIS

technology can be a dynamic tool for demonstrating

CWSRF contributions to waterbody health.

Reaching Priority Projects through 

Innovations in Financing

Every state has specific goals for its CWSRF program. 

In addition to funding critical infrastructure, goals

may include helping small communities protect

groundwater sources, providing disadvantaged

communities with affordable project financing,

and helping rural landowners preserve scenic

waters. Program managers have the flexibility to

design customized solutions for funding a wide

spectrum of water quality projects. Over time,

many programs have developed innovative funding

arrangements to make CWSRF assistance more

accessible and versatile. For example, several states

use conduit lending arrangements to provide small,

low-interest loans to help private landowners

replace leaking septic systems, or to help farmers

implement agricultural best management practices.

Other states offer sponsorship programs to fund

nonpoint source projects or refinancing assistance to

make local debt more affordable for communities.

EPA is highlighting these innovative activities at

conferences, meetings, and events across the country,

and is encouraging more states to make full use of

the program’s innovative financing capabilities.

States and EPA are taking an enterprising approach

to the types of projects funded by CWSRF programs.

While there remains a great need to finance vital

infrastructure projects, CWSRF program managers

increasingly recognize that nonpoint source projects

can play a cost-effective role in addressing water

quality problems, particularly when implemented

as part of a watershed-based plan. As a result,

CWSRF funding to address nonpoint sources of

pollution, such as stormwater, agricultural runoff

and brownfields, has increased 142 percent over the

past 10 years. Furthermore, EPA and the states are

focusing more attention on green infrastructure,

energy efficiency, and emissions reduction projects

in a multi-pronged approach to confront the

many sources of water pollution.The recent draft

white paper entitled “The Clean Water State

Revolving Fund: Tapping its Untapped Potential”

is intended to increase the awareness of the

CWSRF community regarding these eligibilities.

Expanding Program 

Marketing and Outreach

All 51 CWSRF programs conduct outreach to

inform existing and potential assistance recipients of

the significant environmental and economic benefits

resulting from CWSRF financial assistance.In recent

years, EPA has consulted experienced communications

professionals and developed new tools to help states

undertake more robust communications efforts.
Yesterday, Today & Tomorrow 20 Years Of Progress | 15

In 2007, several states used EPA assistance to develop

marketing strategies to attract valued borrowers,

increase fund utilization, enhance customer

satisfaction, and promote new types of projects.

Assisting Programs with Marketing 

Planning and Practices 

The CWSRF has always thrived on close

communication between communities and state

CWSRF managers.In 2007, EPA helped CWSRF

programs organize two focus groups and four

surveys to better understand borrowers’ perceptions

and evaluate ways to move forward as partners

in environmental stewardship. Armed with this

information, states have developed comprehensive

marketing plans for directing the most relevant and

important information to CWSRF borrowers and

stakeholders. Many states use these techniques to

communicate attractive features of their programs,

such as telling large cities about the CWSRF

program’s below-market rates, or disadvantaged

communities about the program’s flexible loan

terms, or small communities about the program’s

planning and design assistance. As the programs

consider non-traditional projects and creative

financing mechanisms, enhanced marketing will

remain an important way to share CWSRF benefits

with a wide variety of prospective borrowers.

From March 21 to 23, 2007, EPA

and 14 co-sponsors held an

unprecedented conference to discuss

creative methods to pay for sustainable

water infrastructure.The objective

of the conference was to promote

integration of approaches to increase

investment in cost-effective systems

with strategies for reducing capital,

operation, and maintenance costs.

Over 600 participants attended

from 45 states, the District of

Columbia, Puerto Rico, and six

countries. Representatives hailed

from the public sector, the financial

and engineering industries, and

non-governmental organizations.

This diverse group of individuals

exchanged their expertise in innovative

practices across the U.S. and abroad.

Paying for Sustainable Water Infrastructure: Innovations for the 21st Century
16 | Clean Water State Revolving Fund Programs 2007 annual report

FACT-Based Marketing 

Several states have incorporated the Financing

Alternatives Comparison Tool (FACT) into their

marketing and outreach activities since its release

in early 2007. FACT is an electronic calculator,

created by EPA, which quickly and easily compares

the costs associated with various financing options

for water infrastructure projects.This tool can

be a valuable addition to any outreach effort,

particularly for small communities.In late 2007,

EPA began developing a simplified version of the

tool,“FACT Lite,”which will make it even easier

for states and communities to demonstrate the

financial advantages of the CWSRF program.

Continuing to Grow and Improve

Many promising new CWSRF program initiatives

are springing up across the country as a result of

the communication networks that EPA and states

maintain for the program.In 2007, EPA provided

several opportunities for program professionals

to sharpen their knowledge of the program, learn

about the latest program developments, discuss

challenges, and be inspired by noteworthy activities

in other states. One notable event was the Paying 

for Sustainable Water Infrastructure conference, held

in Atlanta, Georgia in March 2007 (see text box

on page 15). In addition, during the past year, EPA

offered a variety of knowledge-building resources

such as regional workshops and the CWSRF

Financial Accreditation Program to ensure that

the CWSRF community is continually learning,

exchanging ideas, and improving performance. 

Sponsoring Workshops for Regional and State 

Officials on the Latest Program Developments 

EPA sponsors CWSRF regional workshops to help

new staff build knowledge of the program and to

update veteran staff on the latest CWSRF news

from Washington, DC and around the country.The

workshops are held on a rotating basis to serve several

of the 10 EPA regions each year.These workshops

give program staff an opportunity to share successful

practices in their own states and to discuss the current
Yesterday, Today & Tomorrow 20 Years Of Progress | 17

challenges and changes occurring in the program.	

EPA frequently invites guest speakers, such as bond

counsel, auditors, and federal and state environmental

program professionals to share their relevant expertise

on the program, bringing a new perspective to common

program practices.In 2007, EPA sponsored six

successful workshops, bringing together approximately

250 state and regional CWSRF staff for informative

training sessions and constructive discussions.

Improving Communications in the CWSRF 

Community—The Discussion Forum 

The CWSRF Discussion Forum came online in

2006, and has continued to draw new participants

throughout the past year.The Discussion Forum allows

CWSRF staff to share their thoughts and questions

on topics such as marketing, financial innovations,

environmental benefits, the latest CWSRF news and

more.The Discussion Forum also provides a central

location for EPA to share important resources, such

as policy memorandums and workshop materials,

with the entire CWSRF community. Figure 9

shows how the Discussion Forum helps participants

tap into the vast institutional knowledge of fellow

CWSRF staff around the country. Readers are

encouraged to log on to http://cwsrf.invisionzone.

com to register and participate in the conversation.

Creating a Powerful Educational Tool 

for Program Financial Analysts 

In 2007, EPA released the CWSRF Financial

Accreditation Program, a self-paced curriculum

designed to enhance staff proficiency on the financial

aspects of the CWSRF.The program consists of a

comprehensive exam with topics ranging from basic

CWSRF financial management to more advanced

financial subjects.The Accreditation Program is an

essential undertaking for individuals seeking to increase

their knowledge of CWSRF financial management.

Interested individuals should visit the CWSRF

Discussion Forum to get more information and

download a copy of the materials needed to participate

in the CWSRF Financial Accreditation Program

Promoting Strategic Planning 

and Management

After 20 years of operating highly successful,

financially vigorous, environmentally beneficial

programs, there is a growing realization within

the CWSRF community that a strategic perspective

is vital to successful fund management.This is

particularly important with the decline in annual

federal funding in both real and nominal dollars,

coupled with persistent inflationary pressures and

growing infrastructure needs. Responding to this

“The federal capitalization [of the 

CWSRF] is an investment that will 

be used over and over for the 

benefit of the environment.” 

Trish Comp

Loan Programs Manager, South Carolina 

State Budget and Control Board
18 | Clean Water State Revolving Fund Programs 2007 annual report

Figure 9 | Clean Water State Revolving Fund Discussion Forum 

(http://cwsrf.invisionzone.com)
Yesterday, Today & Tomorrow 20 Years Of Progress | 19

challenge, program managers are developing new

ways to provide project assistance by targeting

CWSRF funding and communications based

on strategic planning and forecasting.

As CWSRF programs have matured, many states

are conducting strategic analyses of their operations.

In the last year, EPA has worked with several states

to perform an intensive evaluation of program

procedures to develop customized strategies for

the states’ programs. Several programs are developing

new practices for evaluating immediate and long-term

water infrastructure conditions, targeting assistance to

priority projects and high-need borrowers, and using

integrated planning processes to tie it all together.

States are also pursuing new ways of using the

CWSRF Benefits Reporting System for strategic

management of CWSRF programs. States are already

using the Benefits Reporting System to demonstrate

how each loan contributes to compliance with local

water quality standards, addresses high priority needs,

and provides critical cost savings to communities as

they implement needed projects. Over time, the use

of the data from the Benefits Reporting System will

grow as states devise new ways to communicate about

how CWSRF assistance is expended. For example,

states may look at the Benefits Reporting data to

explore the effectiveness of the CWSRF’s priority

setting and project selection process. States may also

use the Benefits Reporting System to generate maps

and performance reports that can aid water quality

planners as they assess and revise state-wide program

objectives.Today, EPA is working with states to

explore how the CWSRF Benefits Reporting System

data can provide information for better and more

strategic management of the CWSRF program.

In the 20 years since their authorization, the

CWSRF programs have helped thousands of

communities achieve cleaner and healthier water.

These 2007 program highlights show how the

states are continually seeking new ways to extend

the benefits of the programs. Ongoing efforts

such as benefits reporting, strategic planning,

marketing, and expanded communications

and educational opportunities will help the

CWSRFs to continue generating high water

quality dividends in the upcoming years.
EPA Region 1—Boston, Massachusetts

Connecticut Department of Environmental Protection

Connecticut Office of the Treasurer

Maine Department of Environmental Protection

Maine Municipal Bond Bank

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

EPA Region 3—Philadelphia, Pennsylvania

Delaware Department of Natural Resources

and Environmental Control

Maryland Department of the Environment

Pennsylvania Department of Environmental Protection

Pennsylvania Infrastructure Investment Authority

Virginia Department of Environmental Quality

Virginia Resources Authority

West Virginia Department of Environmental Protection

West Virginia Water Development Authority

EPA Region 4—Atlanta, Georgia

Alabama Department of Environmental Management

Florida Department of Environmental Protection

Georgia Environmental Facilities Authority

Kentucky Division of Water

Kentucky Infrastructure Authority

Mississippi Department of Environmental Quality

North Carolina Department of Environment

and Natural Resources

South Carolina Budget and Control Board

South Carolina Department of Health and Environmental Control

Tennessee Comptroller of the Treasury

Tennessee Department of Environment and Conservation

EPA Region 5—Chicago, Illinois

Illinois Environmental Protection Agency

Indiana Department of Environmental Management

Indiana Finance Authority

Indiana State Budget Agency

Michigan Department of Environmental Quality

Michigan Municipal Bond Authority

Minnesota Pollution Control Agency

Minnesota Public Facilities Authority

Minnesota Department of Agriculture

Ohio Environmental Protection Agency

Ohio Water Development Authority

Wisconsin Department of Natural Resources

Wisconsin Department of Administration

EPA Region 6—Dallas, Texas

Arkansas Development Finance Authority

Arkansas Soil and Water Conservation Commission

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 Administration

Kansas Department of Health and Environment

Kansas Development Finance Authority

Kansas Rural Water 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 Department of Local Affairs

Colorado Department of Public Health and Environment

Colorado Water Resources and Power Development Authority

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—San 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

State Agencies that Manage CWSRF Programs

20 | Clean Water State Revolving Fund Programs 2007 annual report
Yesterday, Today & Tomorrow 20 Years Of Progress | 21

The 2007 PISCES Awards: Recognizing State Leadership

The 2007 PISCES Awards (Performance and Innovation in

the SRF Creating Environmental Success) recognized states

that have been the most innovative and effective at advancing

EPA’s goals of high performance and water quality protection

through the Clean Water State Revolving Fund program.

In 2007, a CWSRF PISCES Award was presented to one

state from each of the 10 U.S.EPA regions.These 10 states

serve as excellent examples of outstanding performance,financial

integrity, and creativity in the CWSRF program.Winners

were recognized at the national SRF workshop hosted by the

Council of Infrastructure Financing Authorities (CIFA) in

Denver,Colorado in November 2007.
22 | Clean Water State Revolving Fund Programs 2007 annual report

Region 8: Colorado

By leveraging CWSRF funds, the Colorado Water

Resources and Power Development Authority

and the Colorado Department of Public Health

and Environment have provided additional

financial assistance totaling over $440 million,

directly contributing to hundreds of systems

achieving and/or maintaining compliance.

Region 10: Washington

The Washington Water Quality

Financial Assistance Advisory

Council meets quarterly and

advises the state on its water

quality financial assistance

policies and practices. As a result,

Washington’s SRF program

is well-known and has strong

demand to fund Publicly Owned

Treatment Works, nonpoint

source, and estuary projects.

2007 CWSRF PISCES Award Winners

Region 9: Nevada

In order to determine the best

use of SRF funds, the Nevada

Department of Conservation and

Natural Resources joined forces

with Infrastructure for Nevada

Communities, thereby improving

the cost effectiveness of its

loans while reducing workload

expenditures and increasing

local participation.
Yesterday, Today & Tomorrow 20 Years Of Progress | 23

Region 1: Rhode Island

As a result of its Community Septic

System Loan Program, the Rhode Island

Clean Water Finance Agency has helped

repair or replace 400 failing or substandard

septic systems to date, significantly

improving water quality in many of

Rhode Island’s small communities.

Region 2: New Jersey

The New Jersey CWSRF Program,

a partnership between the New Jersey

Environmental Infrastructure Trust

and the New Jersey Department of

Environmental Protection, has provided

over $240 million in low-interest loans

to private entities to remediate and

develop more than 800 acres of land

that, prior to treatment, let thousands

of gallons of leachate seep into

surrounding waters daily.

Region 3: Virginia 

The Virginia Department of

Environmental Quality created a

new approach to funding nonpoint

source projects by initiating innovative

partnerships with Farm Credit

Associations throughout the state,

thereby providing CWSRF financing for

a substantial number of agricultural Best

Management Practices and reducing

agricultural runoff into Virginia waters.

Region 4: Florida 

Noteworthy among the Florida Department of

Environmental Protection’s water conservation

and efficiency projects is its assistance for the

installation of horizontal well technology

in Port Orange to withdraw and filter

approximately 114 millions of gallons per year

of surface water and groundwater for reuse.

Region 5: Minnesota

Since its inception in 1995,

the Minnesota Department of

Agriculture’s Best Management

Practices Loan Program has become

one of the leading environmental

loan programs in the country,

allowing for the efficient management

of 10 million tons of manure,

21,000 tons of phosphorus, and

2.1 million acres farmed using

conservation tillage equipment.

Region 6: Texas

The Texas Water Development Board is

remarkable for its support of water efficiency

through water reuse and conservation,

including a wastewater reclamation initiative

to deliver reclaimed water from the City of

Austin’s Walnut Creek Wastewater Treatment

Plant to two city-owned properties.

Region 7: Missouri

Missouri’s Department

of Natural Resources has

partnered with the Missouri

Agricultural and Small Business

Development Authority to lend

CWSRF funds to farmers to

purchase animal waste collection

equipment and to construct

animal waste storage and

distribution facilities, reducing

runoff into Missouri waterways.
24 | Clean Water State Revolving Fund Programs 2007 annual report

Tomorrow

The Next Five Years: Taking the CWSRF Programs 

to New Heights

An important question facing the CWSRF programs is how

to best support and accelerate innovation.Environmental

challenges have evolved significantly since the programs were

first established. As a nation,we are concerned about how to

pay for clean water,water efficiency and conservation, and

green and sustainable infrastructure.Their broad mandate

and inherent flexibility position the CWSRF programs to

play an important role in addressing these environmental

and public health issues.
Yesterday, Today & Tomorrow 20 Years Of Progress | 25

To help meet these challenges, EPA recently took a

fresh look at the types of projects eligible for CWSRF

assistance and considered innovative ways CWSRF

programs can fund these projects.The following

examples of non-traditional eligibilities and flexible

financial options are drawn from the draft white

paper entitled,“The Clean Water State Revolving

Fund Program: Tapping its Untapped Potential.”

Exploring Non-Traditional Eligibilities

Nationally, 96 percent of all CWSRF assistance to date

has gone to traditional wastewater treatment projects.

States are increasingly seeking seeking funding

options for new and creative water quality projects

that go beyond traditional wastewater treatment.To

assist in this process, the white paper identified two

dozen project types that would provide measurable

benefits to water quality. Several examples follow:

• Municipal stormwater projects beyond traditional pipe, 

storage, and treatment systems. Green infrastructure

projects such as green roofs, infiltration basins, and

wetland restoration can be financed by CWSRF

programs. Rockville, Maryland used a $1.4 million

CWSRF loan for planning, design, and restoration

of the main stem of Watts Branch.The project

included enhancing the existing wetlands, stabilizing

the eroding stream bank, and restoring a stream

buffer.In Cohasset, Massachusetts, a CWSRF loan

helped fund the creation of over 40 rain gardens

to reduce the contaminants in stormwater runoff.

• Capital costs to power a publicly-owned treatment 

facility. This includes clean energy projects, such

as wind and solar energy infrastructure. For

example, Atlantic County, New Jersey received a

$2.1 million CWSRF loan to install solar panels

at its wastewater treatment facility, resulting in

energy cost savings projected at $115,000 per year.

• Upgrade or replace failing septic systems. CWSRF

programs can also fund privately-owned treatment

works that collect and treat effluent or septage from

properties with malfunctioning septic systems.In

1998,Westmoreland County, Pennsylvania saw

the need to centrally treat and dispose of septage

pumped from local residents. Because this project

would help reduce and prevent nonpoint source

pollution, the CWSRF program was able to provide

a loan to a private company that pumps septic

systems and treats and disposes of the septage.

• Water conservation. CWSRF programs can fund

public projects that reduce water use, such as the

installation of water meters, gray water recycling

in public buildings, and the development of public

education programs on water conservation. Cheyenne,

Wyoming received over $40 million in CWSRF

money to upgrade its water reclamation facilities.

“Through Oklahoma’s watershed approach 

to lending, over $650 million in Clean 

Water SRF loans have helped eliminate 

human health threats, restore impaired 

surface waters, and protect high quality 

water for Oklahoma’s future generations.” 

Joe Freeman 

Chief, Financial Assistance Division, 

Oklahoma Water Resources Board
26 | Clean Water State Revolving Fund Programs 2007 annual report

The reclaimed water is used to irrigate the city’s green

spaces, saving millions of gallons of fresh water.

• Contaminated sites. The capital costs of cleanup

projects that affect water quality in brownfields

and Superfund sites can be financed by CWSRF

programs.In addition, program funds can be used

to pay premiums for environmental insurance for

the portions of the project related to water quality.

• Source water protection. CWSRF programs are able to

finance projects that protect drinking water sources

and supplies, including rivers, streams, lakes, and

groundwater. For example, the planting of trees

and shrubs is eligible, as is the purchase of land for

reservoirs. Several states, including New York, have

purchased tracts of land through their CWSRF

programs to help protect drinking water sources.

Employing and Leveraging Types of 

Assistance and Funding Mechanisms

Several types of assistance may be offered by CWSRF

programs, including low-interest loans, loan guarantees,

insurance, refinancing and more.To date, most of the

assistance provided—89 percent—has been in the

form of traditional loans. However, as environmental

challenges change and demand for funds continues

to increase, EPA and states will continue to look

for financial innovations that are possible under

the statute.These innovations will help states and

borrowers achieve even greater benefits from the

CWSRF, directing the program’s subsidies to a wider

range of projects, while maintaining the high level

of financial assistance for traditional wastewater

infrastructure.The following paragraphs outline just

a few of the financial innovations highlighted in the

draft document,“The Clean Water State Revolving

Fund Program: Tapping its Untapped Potential.”

• Extended term financing. CWSRF legislation

authorizes the program to purchase local debt.

This provision allows states to offer CWSRF

financing beyond the 20-year terms allowed for

traditional CWSRF loans.This extended term

financing enables states to offer financing that

“The CWSRF is the most beneficial 

program for us rate-wise. We will 

certainly continue to use it because 

it benefits the ratepayers.” 

Maria Mento 

Executive Vice President and Chief Financial Officer, 

Atlantic County Utilities Authority, New Jersey
Yesterday, Today & Tomorrow 20 Years Of Progress | 27

stretches to the useful life of the project, which

may be 30 or even 40 years. As a result, states

can reduce the annual cost of principal and

interest of the financing by offering longer term

assistance, particularly benefiting disadvantaged

communities. Extended term financing is also

available for non-disadvantaged communities,

with concurrence from EPA’s Headquarters

Office. Eleven states have integrated this option

into their CWSRF programs, with several

states expected to follow in the near future.

•Watershed-based approach. As awareness of the causes

and impacts of water quality challenges grows, there

is increasing recognition of the need to consider

watersheds as a whole, rather than specific sources

of pollution. As a result, a growing number of

CWSRF programs are taking a big picture approach

to their funding decisions by considering watershed

factors in addition to traditional treatment options.

In many situations, source water protection efforts

can help reduce treatment costs downstream.

Because watersheds usually extend beyond

municipal—and even state—boundaries, funding

projects on a watershed basis can result in new

financing opportunities. For example, intermunicipal

watershed funds can receive CWSRF financial

assistance and provide loans to the municipalities

within that watershed for CWSRF-eligible projects.

Similarly, interstate lending is an option for water

quality problems that extend beyond state lines.

• Guarantees and insurance. States can take advantage

of provisions that allow CWSRF programs to

purchase insurance or provide guarantees for local

debt, especially where demand outpaces the supply

of CWSRF funds.Insurance and guarantees provide

additional security for local debt, significantly

lowering the interest rate charged to the community.

At the same time, this mechanism requires a

minimal outlay of CWSRF money, allowing the

state to stretch its CWSRF dollars even further.

EPA is committed to encouraging states to

look beyond traditional projects and financing

tools, and explore other innovative ways that the

programs can address water quality priorities.

Expanding and Improving 

Ongoing Initiatives 

There are several initiatives underway to help

EPA and the states achieve the overall goal of

maximizing the beneficial impact of the CWSRF

program on the environment and public health.

EPA’s efforts to support program progress are

outlined in the CWSRF’s 2008-2012 Strategic Plan.

The Plan aims to maintain the financial integrity

of the program while ensuring environmental

results.The following list highlights the main

activities included in the CWSRF Strategic Plan:

• Strategic Planning. EPA will continue to assist

states in improving their CWSRF programs to

meet strategic objectives. As the programs grow

in size and sophistication, the states are taking a

more strategic approach to program management.

To support their efforts, EPA is encouraging the

use of project pipeline management, a practice

by which managers modify financial structuring

and program objectives to meet strategic targets. 

The Agency is developing practices to help the

states manage their project pipelines on an

immediate, medium-term, and long-term basis. 
28 | Clean Water State Revolving Fund Programs 2007 annual report

• In addition, preliminary planning has begun for

a national conference on the CWSRF program,

tentatively scheduled for July 2009 in Chicago,

IL.The major themes will focus on issues and

opportunities for strategic management of the

program in support of national environmental

and public health priorities.The conference will

complement the annual SRF training workshops.

•	Best Practices. EPA will promote adoption of best

practices through training and communication. 

Training for state and regional EPA staff will remain

an integral part of EPA’s activities.The Agency will

continue its current practice of holding two- to

three-day training workshop in five EPA regions

each year.These workshops will be open to all state

and EPA SRF staff and will be tailored to the

experience levels and needs of the participants.

• The Agency also intends to release several training

videos by 2009 to help expand program knowledge

during the rest of the year.The recently released

Accreditation Program for financial analysts will

be expanded with an intermediate test. Finally,

there are plans to issue Standard Operating

Procedures on a wide range of program processes. 

• In addition to training, EPA will continue to

improve communications within and outside the

CWSRF community, notably through expansion

of the online Discussion Forum; fact sheets,

publications and videos; conferences, training

sessions, and workshops; and the Benefits Reporting

System. EPA will also help states employ valuable

marketing tools, such as activity guides and

templates, the PISCES award program, and the

Financing Alternatives Comparison Tool (FACT).

•	Program Evaluation. EPA will continue to conduct

annual financial and programmatic evaluations of

each of the 51 CWSRF programs.Working with

the states, the Agency will continue to look for

opportunities to update and enhance the Benefits

Reporting System to ensure that it effectively tells

the story of CWSRF success. Additionally, EPA

will maintain its current practice of evaluating the

performance of five EPA regional offices each year. 

• The CWSRF Strategic Plan anticipates expanding

ongoing efforts to assess and improve program

accessibility for high priority water quality projects. 

Focus groups and surveys of communities in several

more states will form the basis of state specific

strategies and may lead to new national tools.

•	Enhancing Performance. EPA will pursue

continuous improvement in program operations

and effectiveness by improving integration of the

CWSRF program with water quality programs

and priorities, expanding on the tools and best

practices, and addressing emerging concerns

to ensure results, efficiency, and integrity.
Statement of Fund Activity 

This statement provides an overview of

major indicators of fund activity, including

the 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 Cash Flows 

This statement provides a detailed accounting of the

actual flow of cash into and out of the CWSRF fund.

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 long-term

liabilities. CWSRF fund assets include grant funds

that have been drawn from the federal treasury

to date, but do not include total grant awards.

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 on

the following pages.The statements are best viewed

as non-audited, cash flow-based financial reports.

2007 Financial Performance Overview

The Clean Water Act requires an annual financial audit

of the 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:

Financial Statement Highlights

• Total assets increased by $2.8 billion,

a 5.4 percent increase from 2006.

• CWSRF program equity (net assets) totals

$32.1 billion, a 6.8 percent increase from 2006.

• Total program revenues exceeded expenses by

$2.0 billion, with interest earnings from loans

and investments totaling almost $1.7 billion.

• Loan principal repayments to the CWSRF

were $2.4 billion.

• Leveraged bond proceeds added more

than $1.9 billion to program cash flow.

Yesterday, Today & Tomorrow 20 Years Of Progress | 29
Figure 10 | CWSRF National Performance Summary (Millions of Dollars)

Fund Activity 2007 2006

Revenue, Expenses, and Earnings 2007 2006

Operating Revenues

Interest on Investments

Interest on Loans

Total Operating Revenues

Operating Expenses

Bond Interest Expense

CWSRF Funds Used for Refunding

Amortized Bond Issuance Expense

Administrative Expenses

Total Expenses

Nonoperating Revenues and Expenses

Federal Contributions

State Contributions

Transfers from (to) DWSRF

Total Nonoperating Revenues (Expenses)

Increase (Decrease) in Net Assets

Net Assets

Beginning of Year

End of Year

Annual Fund Activity 

Federal Capitalization Grants

State Matching Funds

New Funds Available for Assistance

Project Commitments (Executed Loan Agreements)

Projects Disbursements

Cash Draws from Federal Capitalization Grants

Cumulative Fund Activity

Federal Capitalization Grants

State Matching Funds

Funds Available for Assistance

Project Commitments (Executed Loan Agreements)

Project Disbursements

Cash Draws from Federal Capitalization Grants

786.5	

159.4

4,191.0	

5,286.5

5,107.7	

1,421.2

24,976.6	

5,306.9

65,097.6	

62,948.9

54,632.0	

23,615.4

928.5	

233.7

4,539.4	

5,021.1

4,368.0	

1,064.1

24,190.1	

5,147.6

60,906.6	

57,662.4

49,524.4	

22,194.3

769.0	

914.2	

1,683.2

990.8	

117.1	

16.2	

44.5	

1,168.6

1,421.2	

118.8	

(12.7)	

1,527.3

2,041.9

30,012.9	

32,054.8

672.2	

864.0	

1,536.2

934.8	

54.1	

13.9	

41.3	

1,044.1

1,064.1	

166.9	

(20.0)	

1,211.0

1,703.2

28,309.8	

30,012.9

Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly equal the total due to rounding error.

2006 data were revised from the 2006 Annual Report to incorporate updated state information. Source: EPA’s CWSRF National Information Management System ( June 30, 2007).

30 | Clean Water State Revolving Fund Programs 2007 annual report
Cash Flows 2007 2006

Net Assets 2007 2006

Operating Activities

Cash Draws from Federal Capitalization Grants

Contributions from States

Loan Disbursements Made to Borrowers

Loan Principal Repayments

Interest Received on Loans

Administrative Expenses

Total Cash Flows from Operating Activities

Noncapital Financing Activities

Gross Leveraged Bond Proceeds

Bond Issuance Expense

State Match Bond Proceeds

Cash Received from Transfers with DWSRF

Interest Paid on Leveraged and State Match Bonds

CWSRF Funds Used for Refunding

Principal Repayment of Leveraged Bonds

Principal Repayment of State Match Bonds

Net Cash Provided by Noncapital Financing Activities

Cash Flows from Capital and Related Financing Activities

Investing Activities

Interest Received on Investments

Deposits to Debt Service Reserve for Leveraged Bonds

Net Cash Provided by Investing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Beginning Balance—Cash and Cash Equivalents

Ending Balance—Cash and Cash Equivalents

1,421.2	

118.8	

(5,107.7)	

2,364.1	

914.2	

(44.5)	

(333.8)

1,931.7	

(18.3)	

40.6	

(12.7)	

(990.8)	

(117.1)	

(1,180.4)	

(81.9)	

(429.0)

0.0

769.0	

(348.4)	

420.5

(342.3)

9,422.6	

9,080.3

1,064.1	

166.9	

(4,368.0)	

1,992.7	

864.0	

(41.3)	

(321.6)

2,233.6	

(22.5)	

66.8	

(20.0)	

(934.8)	

(54.1)	

(812.5)	

(111.0)	

345.4

0.0

672.2	

(555.7)	

116.5

140.4

9,282.2	

9,422.6

Assets

Cash and Cash Equivalents

Debt Service Reserve—Leveraged Bonds

Loans Outstanding

Unamortized Bond Issuance Expenses*

Total Assets

Liabilities

Match Bonds Outstanding

Leveraged Bonds Outstanding

Total Liabilities

Net Assets

Federal Contributions

State Contributions

Transfers—Other SRF Funds

Other Net Assets

Total Net Assets

Total Liabilities and Net Assets

9,080.3	

7,095.4	

37,046.0	

288.5	

53,510.2

582.7	

20,872.7	

21,455.3

23,615.4	

4,029.1	

(387.5)	

4,797.8	

32,054.8

53,510.2

9,422.6	

6,747.0	

34,302.4	

286.4	

50,758.3

624.0	

20,121.4	

20,745.4

22,194.3	

3,910.3	

(374.8)	

4,283.2	

30,012.9

50,758.3

Note: Statement presents a compilation of reporting from 51 state programs and is not audited. Sum of individual values may not exactly equal the total due to rounding error.

2006 data were revised from the 2006 Annual Report to incorporate updated state information. Source: EPA’s CWSRF National Information Management System ( June 30, 2007).

*Unamortized bond issuance expenses are bond issuance costs that have been incurred but have not been fully recognized (amortized).

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

Yesterday, Today & Tomorrow 20 Years Of Progress | 31
CWSRF At-A-Glance

Figure 11 | Funds Available for Projects 

(Billions of Dollars)

Total Funds $4.2 $65.1

Federal Cap Grants	 	 0.79	 25.0

State Match	 	 	 0.16	 5.3

Net Leveraged Bonds	 	 1.60	 20.6

Net Loan Principal Repaid	 	 1.18	 10.4

Net Interest Earnings	 	 0.50	 5.2

Net Transfers with DWSRF	 	 (0.01)	 (0.4)

Less Administration	 	 (0.03)	 (1.0)

Number of Loans in 2007=2,050; Total=20,700

Interest Rate in 2007=2.1% (Market=4.3%)

As of 2007

Return on Federal Investment=2.31 Times

SRF Assistance as % of Funds Available=97%

27 States Leverage; 21 Issue Match Bonds

40 States Fund Nonpoint Source Projects

30 States Use Integrated Priority Setting Systems

48 States Conduct Separate Audits

40 States Fund Separate Grant/Loan Programs

Total, Project Type $5.3 $62.9

Wastewater Treatment	 	 5.12	 59.7

Nonpoint Source	 	 	 0.24	 2.6

Not Classified 	 	 	 0	 0.6

Total, Population Served $5.3 $62.9

<3,500	 	 	 	 0.66	 6.6

3,500 – 9,999	 	 	 0.49	 7.6

10,000 – 99,999	 	 	 1.81	 21.1

100,000 and Above		 	 2.33	 27.7

Wastewater Treatment $5.12 $59.7

Secondary Treatment	 	 1.97	 24.5

Advanced Treatment	 	 0.89	 10.9

SSO Correction	 	 	 0.89	 6.8

New Sewers	 	 	 0.66	 11.1

CSO Correction	 	 	 0.6	 5.9

Storm Sewers	 	 	 0.03	 0.4

Recycled Water	 	 	 0.08	 0.2

Figure 12 | Assistance Provided to Projects 

(Billions of Dollars)

2007 1988–2007 2007 1988–2007

32 | Clean Water State Revolving Fund Programs 2007 annual report
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, DC 20460

Phone 202/564-0752

Fax 202/501-2403

www.epa.gov/owm/cwfinance/cwsrf

Design: Fathom Creative,Inc.
Office of Water | June 2008 | EPA-832-R-08-001