United States Office Of Water EPA 832-F-99-052

Environmental Protection (4204) August 1999

Agency

Using The Clean Water

State Revolving Fund For

Watersheds Impaired By Mining

The Problem

In contrast to historical mining activities, modern mining operations

are generally well designed, operated and regulated. But problems

caused by past mining activities remain. Mining can affect nearby

bodies of water--both directly, by disturbing surface and ground

water, and indirectly through runoff. The result can be serious

pollution and public health problems. Some mining-related water

problems are increased sedimentation, released toxins and solutions

leached from impoundments which generate acids from waste rock

and pit walls. Mine dust and tailings are troubling as well. There are

believed to be between 200,000 and 500,000 inactive and abandoned

hardrock mines nationwide. In 1995, Region 3 of the Environmental

Protection Agency (EPA) found that 5,100 miles of streams in the

Appalachian region were adversely affected by acid mine drainage. 

Much of this can be attributed to abandoned coal mines. Many

stakeholders are concerned: federal agencies, states, tribes, local

governments, industry and environmental groups. A watershed

approach to solving these problems fosters communication and

cooperation among all stakeholders.

What is the Clean Water State Revolving Fund (CWSRF)

The 51 CWSRF programs work like banks (each state and Puerto

Rico has one). Federal and state contributions are used to capitalize

or set-up the programs. These assets ( in excess of $27 billion) are

used to make low-interest loans for important water quality projects. 

The CWSRF programs currently issue approximately $3 billion in

loans annually. Funds are repaid to the CWSRF’s over terms as

long as twenty years. Repaid funds are recycled to fund other water

quality projects. The CWSRF can also provide loan guarantees,

bond insurance, and refinancing of existing debt. 

What’s in it for You?

In considering the impacts of mining on the environment, EPA expects

the CWSRF to become a significant source of funding for nonpoint

source projects, such as mining. Certain mining sites that contribute to

water quality impairment could benefit from this huge financial

resource. Loans are issued at below market rates (0% to less than

market), offering borrowers significant savings over the life of the loan.

Sources of Loan Repayment 

Though finding a source of repayment may prove challenging, it does

not have to be unnecessarily 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

• fees paid by developers on other lands

C recreational fees (fishing licenses, park entrance fees)

C stormwater management fees

C wastewater user charges

C donations or dues made to nonprofit groups and associations

• resource extraction fees

The CWSRF will invest 10% of its funds

on polluted runoff projects by 2001.

--Clean Water Action Plan

Restrictions

Inactive or abandoned hardrock mines permitted under the National

Pollutant Discharge and Elimination System (NPDES) or coal mines

permitted under the Surface Mining Control and Reclamation Act

(SMCRA) may be eligible for CWSRF funding if publicly owned.

Active hardrock mines that are permitted under NPDES are not eligible

for funding unless publicly owned. Active SMCRA permitted coal

mines must also be publicly owned to become fundable under the

CWSRF. Non-permitted inactive or abandoned mines may be fundable

as Section 319 nonpoint source projects if they are part of a state’s

Nonpoint Source Management Plan. Mining activities are singled out

as a priority for funding under Section 319.

Eligible Projects

Potential projects include the removal of tailings from stream beds and

flood plains, also the remediation of aquatic or secondary impacts by

means of:

• discharge diversion

• runoff dispersion

• sediment control and collection

• grading and capping of contaminated sources

• backfilling of mine openings

• replanting and soil stabilization

The following are examples of mining projects, that while funded under

the Clean Water Act as Section 319 nonpoint source grants, would be

eligible for loans from the CWSRF.

The Colorado Division of Minerals and Geology and an operating

mining company are cooperating to reduce the drainage of heavy metals

into a tributary of Clear Creek. The processing of mine wastes for a

heap leaching operation provides an opportunity for the mining

company to do site reclamation and drainage stabilization. The $52,000
Nonpoint Source grant will be used for grading and capping mine

tailings, the placement of check dams and other stabilization techniques.

The Westmoreland County Conservation District, in cooperation with

the Western Pennsylvania Coalition for Abandoned Mine Reclamation,

used a NPS grant to complete acid mine drainage remediation work to

reduce contamination from an abandoned coal mining site.

The Colorado Division of Minerals and Geology , in association with

the Animas Watershed initiative, (which includes local citizens,

agencies, mining interests, and state and federal land managers), is

conducting a project to improve water quality by removing mine wastes

from drainage areas and neutralizing acid mine water using limestone

backfill of the mine entrance. The mine waste area will then be

regraded and revegetated.

A $89,000 grant with the Colorado San Juan Resource Conservation

and Development organization will demonstrate the use of hydrologic

controls and revegetation to reduce heavy metal contamination of the

Animas River watershed.

A $47,000 NPS grant to an earthmoving company is being used to

remove mill tailings and mine waste from the Kerber Creek, Colorado

stream channel and dispose of them in a nearby waste repository. After

the mine waste and tailings have been removed from the creek, the

banks will be stabilized and revegetated.

Since 1989 the CWSRF program has funded 1,100 projects, investing

more than $830 million to clean up polluted runoff.

I’m Interested--What Next?

Since the CWSRF is managed largely by the states, project funding may

vary according to priorities within each state. Projects become eligible

for funding by being included in the state Nonpoint Source Management

Plan, the state Priority List, or part of a National Estuary Program

Comprehensive Conservation and Management Plan. Those interested

in cleaning up polluted runoff resulting from mining activities should

seek out their CWSRF programs, learn 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, please contact:

The Clean Water State Revolving Fund Branch

U.S. Environmental Protection Agency

401 M Street, SW (Mail Code 4204)

Washington, DC 20460

Phone: (202) 260-7359 Fax: (202) 260-1827

internet: www.epa.gov/OWM