United States

Environmental Protection

Agency

 Funding Biosolid Projects Using the Clean Water State 

 Revolving Fund

The Problem

Biosolids are primarily organic solids left from

municipal wastewater treatment processes that can be

beneficially recycled. About nine million dry metric

tons of biosolids are produced each year from

municipal wastewater treatment plants in the United

States. The proper management of the treated

biosolids and other matter generated by the processing

of more than 32 billion gallons per day of municipal

wastewater poses a challenging disposal problem for

all of us. In the past, biosolids have been put into

landfills, the ocean, or incinerated. Today, we

understand that land application is a generally

preferred option as it beneficially utilizes the recyclable

components of wastewater. 

Biosolid recycling not only saves local and state

governments significant funds through lower disposal

costs and sales of biosolid-derived products, but also

supplies valuable nutrients and soil amendment benefits

to the land. Through its low or no-interest loan

program and other assistance options (refinancing,

purchase or guaranteeing local debt, and purchasing

bond insurance), the Clean Water State Revolving

Fund (CWSRF) can be a valuable resource for

supporting biosolids projects. Years of research and

practice have repeatedly demonstrated that biosolids

recycling is safe and that food crops grown on land

fertilized with biosolids are safe to eat.

Biosolids Use and the CWSRF Program

The CWSRF programs in every state and Puerto Rico

work like banks. Federal and state contributions are

used to capitalize or set up the programs. These

assets, in turn, are used to make low or no-interest

loans for important water quality projects. Funds are

repaid to the CWSRFs over terms as long as twenty

years. Repaid funds are then recycled to fund other

water quality projects. The CWSRF can help to

provide the financial resources to fund biosolid

projects. Some examples of biosolid projects are:

T Processing facilities consisting of:

- Composting

- Biosolid pelletizing

- Incineration

- Alkaline stabilization

T Handling equipment for transportation 

 (trucks, rail, conveyance systems, etc.)

T Application equipment

T Storage facilities

T Bio-gas cleanup and use equipment

Capacity of the CWSRF

Nationally, the CWSRF has in excess of $34 billion in

assets (includes loans already made and current funds

available to make loans). Currently, the CWSRF is

funding water quality projects at a rate of over $4 billion

per year.

Getting a Project Funded

The Clean Water Act (CWA) of 1987 authorized the

CWSRF to fund point-source (wastewater treatment

works), nonpoint sources, and estuary projects.

Biosolid projects may be developed as a component of

a wastewater treatment works project. A wastewater

treatment works project must be publicly owned to

receive CWSRF funds. However, it may be possible

to fund biosolid projects as nonpoint source projects if

the wastes being treated are correcting a nonpoint

source problem. Since the CWSRF program is managed

by the states, project funding varies by the priorities,

policies, and laws within each state. Eligible applicants

also vary by state. In seeking a loan, a first step is to

contact your state CWSRF representative. The list of

CWSRF state representatives can be found on our

website (www.epa.gov/owm/finan.htm).

Sources of Loan Repayment

Since 1989, the CWSRF program has funded over

3,900 nonpoint source projects, investing more

than $1.2 billion to clean up polluted runoff.
Each state must approve a source of loan repayment

as part of the application process. Though finding a

source of repayment may prove challenging, it does

not have to be burdensome. Many users of the

CWSRF have demonstrated a high degree of creativity

in identifying sources of loan repayment. The source

of repayment need not come from the project itself.

Some possibilities include:

• developers fees

• recreational fees (fishing licenses, park 

 entrance fees)

• stormwater management fees

• wastewater user charges

• donations or dues made to nonprofit 

 groups and associations

• sale of the biosolids

Learning by Example

InWestmoreland County, Pennsylvania a CWSRF

loan is being used by a private pretreatment facility to

pump out individual septic systems and treat the

wastewater prior to land application as biosolids.

Because the project was built to treat wastes from

septic systems, it was funded as a nonpoint source

project, which allows for private ownership. Its

activities are an integral aspect of solving a nonpoint,

septic system problem.

An SRF wastewater treatment works loan was used

to fund a composting facility for Charleston, West

Virginia. Biosolids will be mixed with yard waste and

recycled compost to yield a high-grade compost

product. Significant cost saving will be gained from

not having to haul yard waste and biosolids to the

landfill, in addition to saving the limited landfill space

for non-recyclable waste.

The Massachusetts Water Resources Authority

used a SRF loan to expand its biosolids pelletizing

facility. The pellets are given away for public sites

such as parks and golf courses but are sold to

commercial users. Although this project was funded

as a municipally owned facility, it could have been

funded as either a point or nonpoint source project.

 Lenoir, North Carolina used $3.9 million in SRF

funds to develop an advanced wastewater treatment

system with nutrient removal and associated biosolids

management facilities. About five tons of biosolids are

processed daily through a lime

stabilization/thermoblend process. In 1997 and 1998,

the city began blending composted yard and leaf waste

with the biosolid and lime mixture. The product is

marketed to local nurserymen, farmers, and ranchers

who value the material sufficiently to pay some of the

costs of production and all the costs of transportation

and spreading.

Challenges Ahead

EPA has been encouraging states to open their

CWSRFs to the widest variety of water quality

projects, while addressing high priority projects in

targeted watersheds. Those interested in advancing the

recycling of biosolids should seek out their CWSRF

programs, gain an understanding of how their state

program works, and participate in the annual process

that determines which projects are funded.

For more information on the CWSRF, or for a

program representative in your state, contact:

The Clean Water State Revolving Fund Branch

U.S. Environmental Protection Agency

ICC Building

1201 Constitution Avenue, NW (Mail Code 4204M)

Washington, DC 20004

Phone: (202) 564-0752 Fax: (202) 501-2403

Internet: www.epa.gov/owm/finan.htm

For program information on biosolids, contact:

The Municipal Technology Branch

U.S. Environmental Protection Agency

ICC Building

1201 Constitution Avenue, NW (Mail Code 4204M)

Washington, DC 20004

Phone: (202) 564-0733 Fax: (202) 501-2397

Internet: www.epa.go

v/owm/finan. htm

Office of Water

EPA 832-F-00- 006

November 2001