The Opportunity

EPA encourages states to target Clean Water State

Revolving Fund (CWSRF) assistance to projects that

achieve sustained water quality improvements and address

priority water quality problems. States could increase the

environmental benefits of their CWSRF funding by making

projects from facilities that are enrolled in EPA's Performance

Track Program more competitive in the funding eligibility

process. Performance Track member facilities have

committed to continuous environmental improvement

through performance enhancement.

A Performance Track facility could be eligible for a CWSRF

loan if it works to:

 expand or upgrade a municipal wastewater treatment

plant;

 reduce unregulated runoff;

 reduce regulated runoff by public agencies;

 expand acres of wildlife habitat;

 donate or acquire conservation easements;

 remediate a brownfield site; or

 help suppliers to reduce water quality impacts

(e.g., food processors working with farmers that supply

their raw materials to also reduce farm runoff).

The Performance Track Program

EPA's Performance Track Program recognizes and supports

facilities that are top environmental performers. As a

voluntary, performance-based program, it has worked since

June 2000 to coordinate with EPA's Regional offices and

the states. Performance Track member facilities must:

 operate beyond regulatory requirements;

 demonstrate commitment to continuous improvement;

 successfully develop and implement an environmental

management system (EMS) that has been through one

complete cycle (typically one year); and

 be actively involved with their communities.

Qualifying EMSs include these elements:

 policy;

 planning;

 implementation and operation;

 checking and corrective action; and

 management review.

The Performance Track Program currently has over 300

facilities and is growing. Facilities commit to four

environmental improvements, chosen from categories in

regulated and non-regulated areas: e.g., material

procurement; suppliers' environmental performance;

material use; water use; energy use; land use; air emissions;

discharges to water; waste; and products. Small facilities

(less than 50 employees) commit to two improvements.

Performance Track application reviews include compliance

checks. Membership is for three years, provided facilities

submit annual reports summarizing and measuring progress

on commitments and continue to comply with environmental

regulations.

	





FACT

SHEET

National Environmental Performance Track

and the Clean Water State Revolving Fund
	









To support environmental improvements at member

facilities and to encourage others to join, EPA continues to

develop benefits including:

 public recognition;

 networking opportunities;

 low priority for routine inspections; and

 administrative and regulatory incentives

(e.g., reducing reporting requirements).

Performance Track has been developing incentives in the

air, water, and waste programs. These incentives will benefit

facilities by recognizing environmental accomplishments,

encouraging performance beyond regulatory requirements,

and improving their bottom lines. In addition, some socially

responsible investment firms use Performance Track

membership as a criterion when developing investment

ratings.

EPA has partnered with many states (and in several cases

has developed memoranda of agreement to reinforce these

commitments), trade associations, and non-governmental

organizations to help promote the value of Performance

Track, recruit facilities, and deliver incentives to members.

Performance Track has attracted facilities of various sizes

from a wide range of sectors across the U.S. While 80%

of member facilities are manufacturers, EPA is working

hard to increase program benefits for the public sector.

Performance Track facilities commit to reduce their

environmental impacts by improving performance in a range

of categories. The most common choice is waste

generation, followed by materials use, air emissions, energy

use, water use, discharges to water, and habitat

preservation/restoration.

Why EMSs?

The most challenging aspect of the Performance Track

program is the environmental management system (EMS)

requirement for member facilities. An EMS is a

management framework based on specific policies,

procedures, and practices for reducing environmental

impacts. EMSs are not limited to regulated activities. A

number of publicly owned treatment works (POTWs) have

developed EMSs for their operations and are achieving

significant benefits, including better performance, reduced

costs, improved regulatory compliance, and increased

credibility with their communities. Some financial interests

are beginning to consider POTW use of EMSs when they

set bond ratings.

CWSRF funds can support EMS development that is part

of construction, modification, or expansion of a POTW.

EPA is encouraging POTWs to consider applying to

Performance Track and is leading several efforts to assist

POTWs and other public agencies adopt EMSs. EPA

has developed a number of tools to help public agencies,

including POTWs, develop EMSs. EPA also plans to

complete an EMS Implementation Guide geared specifically

to the needs of POTWs in 2004. This guide will be made

available through the websites listed below.

The Clean Water State Revolving Fund

CWSRFs are operated by States and provide loans at

below-market interest rates to finance projects that

address water quality problems. Loans support a wide

range of projects, including those dealing with municipal

wastewater treatment plants, nonpoint source (NPS)

pollution (e.g., agriculture, wetlands, underground storage

tanks, mines, brownfields, and wildlife habitat), and

estuaries. Recipients have included municipalities, utilities,

businesses, community groups, and private individuals.

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Every state and Puerto Rico has a CWSRF program with

more than 10 years of operation. Each CWSRF works

like a bank. Federal and state contributions provide

additional capital to the CWSRFs to make low-interest

loans for key water quality improvement projects. (In 2003,

the average interest rate was 2.2 percent.) Repayment over

a loan term of up to 20 years flow back into the fund where

they finance additional water quality improvement projects.

CWSRFs provide between $3-4 billion each year in

assistance. Nationwide, the CWSRF program has

provided over $43 billion in more than 14,000 loans since

1987.

States have great flexibility in managing their CWSRFs to

best meet water quality needs. Subject to Title VI of the

Clean Water Act, states determine their own project

eligibility requirements and set interest rates. 32 states have

funded NPS projects, often with innovative partnership

models. Over 600 NPS projects receive funding each year,

totaling nearly $2 billion.

Linking CWSRF to Performance Track

By targeting eligible Performance Track facilities for

CWSRF loans states would gain additional benefits from

their support for water quality improvements. The CWSRF

subsidy would help Performance Track members achieve

environmental commitments that may well be important to

local and state environmental priorities (e.g., air pollutant

transfers to waterbodies). This support would also

encourage facilities to increase community involvement,

perhaps linking facilities with watershed groups.

Working with Performance Track facilities also allows

states to support activities beyond regulatory requirements,

and thus could expand funding opportunities to help make

full use of available SRF funds. Supporting Performance

Track members can reduce the need for inspections by

establishing greater trust between states and facility

operators. This could help states focus inspections on

noncompliant facilities or support other environmental

projects.

On track

over the

Willamette

River near

Eugene

Oregon.

Performance Tracked on EMS Success:

Eugene, Oregon’s Wastewater Division

The Wastewater Division of Eugene, Oregon’s second largest

city, implemented an EMS for its 49 million gallon-per-day

regional secondary wastewater treatment plant, biosolids

processing facility, vegetable cannery wastewater land

application site, and 49 local sewage pumping stations. The

EMS framework has knitted together existing efficiency and

training efforts by cultivating environmental decision making

throughout the organization. Employees now view the

Wastewater Division's mission of protecting public health and

the environment as part of their daily responsibilities.

With permit renewal approaching and a newly listed endangered

species in the receiving river, the EMS strengthened integration

of the regional wastewater program’s functional components

to optimize environmental benefits. The focus moved beyond

compliance with specific targets for more efficient use of natural

resources and improved effluent quality. A new documentation

system improved staff productivity and allowed tracking of 65

discrete activities that have significant environmental impacts.

Significant staff time and $50,000 in development costs were

needed to prioritize environmental impacts, create, and

implement the EMS. Savings on electricity and paper use and

waste disposal nearly recouped the costs within two years.

In early 2004, EPA awarded Eugene’s efforts by selecting the

Waterwater Division for the Performance Track Program. The

reduced regulatory, administrative, and reporting burden

conferred by the program’s status will allow additional

improvements and assistance to other wastewater facilities. For

more information contact Wastewater Division Director Peter

Ruffier at (541) 682-8606 or peter.j.ruffier@ci.eugene.or.us,

or visit www.ci.eugene.or.us/pw/ww/pdf/ems.pdf.

3
U.S. Environmental Protection Agency

1201 Constitution Avenue, NW (Mailcode 4204M)

Washington, DC 20004

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

Internet: www.epa.gov/owm/cwfinance/index.htm

Office of Water August 2004 EPA 832-F-04-001

For more information about the Clean Water Revolving Fund, or for a program representative in your State,

please contact:

Performance Track facilities interested in reducing water

pollution and applying for CWSRF funds should:

 seek out their state CWSRF program and contact;

 learn how the state program works;

 learn about their state's water quality priorities;

 determine if they are eligible;

 request inclusion on the project priority lists and

intended use plans; and

 submit applications for CWSRF funding.

For more information about Performance Track, please visit

EPA on the web at www.epa.gov/performancetrack

For more information about EMSs including POTWs that

have adopted EMSs, please visit www.epa.gov/ems or

www.peercenter.net, or contact Jim Horne at 202-564-0571

or at horne.james@epa.gov.