Clean Water Advocacy - Newsroom - NACWA in the News
Wastewater Treatment Plants Got $50 Billion From EPA for Upgrades, Repairs Since 1988
Wastewater treatment plants have received $50 billion to assist
with upgrades and repairs from the Clean Water State Revolving Fund program
since the program began assisting communities in 1988, according to a March 24
Environmental Protection Agency report.
That represents about 94.1 percent of the total of $52.7 billion in revolving
fund money that has been spent during that period, according to EPA's Clean
Water State Revolving Fund Programs: 2005 Annual Report.
The report said the remaining 5.9 percent has been spent on projects to control pollution from nonpoint sources. Those projects include the use of best management practices, such as berms or drains to alleviate stormwater and agricultural runoff in urban and rural areas.
Under the Clean Water State Revolving Fund, state governments
are provided with federal seed money based on their need. States then make
low-interest loans to communities for the construction of municipal wastewater
infrastructure and other projects. Over time, the fund is expected to "revolve"
and sustain itself through leveraging of funds from other sources and from the
repayment of loans.
For the period 1988 to 2005, a total of $55.3 billion was available for
SRF-financed projects, although not all of it was spent, according to EPA. Of
the total, the federal share was $23.3 billion, with state matching funds
totaling $4.8 billion and bonds accounting for $16.9 billion. The report said
loan principal repayments and other earnings accounted for the rest.
EPA said roughly 96 percent of the $4.9 billion SRF assistance
provided to projects in 2005 was used for wastewater projects, while only 4
percent went toward nonpoint source projects. That left $232 million for
nonpoint sources, which EPA said was an improvement over 2004, when $168 million
was allocated to those projects. In addition to efforts to reduce runoff from
agricultural sources, those projects also included improvements to drinking
water sources.
Innovations in 10 States Recognized
The report documents efforts that EPA is making to improve oversight of SRF
programs at each of its 10 regional offices, including a voluntary accreditation
program. EPA in the report also highlighted 10 states that have received federal
awards for innovative use of the SRF funds.
For instance, the Ohio Environmental Protection Agency and the state's Water
Development Authority, through the Water Resource Restoration Program, have
granted $67 million in SRF loans for projects to acquire wetlands, riparian
lands, and conservation easements, and to restore habitat and to modify dams.
Representatives of state water agencies and municipal wastewater facilities
commended the SRF program for achieving billions of dollars in benefits to water
quality.
Linda Eichmiller, deputy director for the Association of State and Interstate
Water Pollution Control Administrators (ASIWPCA), told BNA that EPA for the
first time has documented how SRF-financed projects have led to improvements in
fisheries, recreational uses of water, and drinking water.
The National Association of Clean Water Agencies also noted that the $52.7
billion from the SRF program, which has been loaned to large, mid-size, and
small communities, has been put to good use.
Criticism of EPA's Plans for Program
However, Adam Krantz, NACWA's manager for government and public affairs,
criticized EPA for what he said was its plan to "zero out" the SRF program in
2011.
Instead of talking about the past successes of the SRF, Krantz said, EPA should
make sure it does not eliminate funding for the SRF program in 2011. Krantz
urged Congress to approve the House bill (H.R. 4560) that would set up a Clean
Water Trust Fund to provide a dedicated source of funds for clean water needs
(51 DEN A-6, 3/16/06 ).
Eichmiller also noted that EPA appropriations for the Clean Water SRF have
dwindled in recent years and said the agency should keep providing federal money
to the program.
"Further capitalization is necessary to meet today's and tomorrow's growing
needs to come into compliance with the Clean Water Act and EPA regulations,"
Eichmiller said.
Grumbles Defends EPA Plans
In response to NACWA's allegations about zeroing out funds, Benjamin Grumbles,
EPA's assistant administrator for water, told BNA that "NACWA is characterizing
[SRF funding] in their own way."
Grumbles said EPA has a plan for providing funds to eliminate, or make
"significant progress" toward eliminating, the gap between identified needs in
wastewater upgrades and the amount of money available for those projects.
EPA plans to provide $6.8 billion from 2004 through 2011, which would provide
enough funds to establish a self-sustaining revolving rate of $3.4
billion-a-year for the years 2015 through 2040, Grumbles said.
"We want to achieve a fully revolving $3.4 billion fund by 2015, and that is
based on providing $6.8 billion between 2004 and 2011," Grumbles said.
Grumbles added that EPA has not projected funding estimates beyond 2011. At the
same time, he said the agency is committed to promoting innovative financing,
which he said is an important tool toward eliminating the identified funding
gap.
To that end, Grumbles signed a memo March 17 that extended the loan repayment
period for SRF loans beyond 20 years in response to concerns raised at numerous
meetings by state and local officials (54 DEN A-3, 3/21/06 ).
Grumbles said extended financing would allow communities more flexibility and
better leveraging to help to meet the agency's goal of sustainable
infrastructure.
EPA's Clean Water State Revolving Fund Programs: 2005 Annual Report is available
at
http://www.epa.gov/owm/cwfinance/cwsrf/annreport2005.htm.
By Amena H. Saiyid