Drinking Water State Revolving Fund: Case Study
Drinking Water State Revolving Fund
A persistent SDWA issue concerns the ability of public water systems to upgrade or replace infrastructure to comply with federal drinking water regulations and, more broadly, to ensure the provision of a safe and reliable water supply. In 1996, Congress responded about the Act’s unfunded mandates and authorized a drinking water state revolving loan fund program (DWSRF). This program was made to help public water systems finance infrastructure projects needed to meet drinking water standards and to address the most serious health risks. The Act authorizes EPA to award annual capitalization grants to the states. States then use their grants (plus a 20% state match) to provide loans and other assistance to …show more content…
This amount, combined with the state match, bond proceeds, and other funds, provided a total of $6.7 billion in DWSRF funds available for providing loans fund other assistance. Through June 30,2002, states had made more than 2,400 loans totaling $5.1 billion, and $1.6 billion remained available for loans.
The capital investment in municipal water-treatment facilities totals about 250 billion, and the annual cost of operating them is roughly 5 billion. Some 2 billion is spent annually in capital improvement of the facilities. Even so, the cost of drinking water remains low, still well under a dollar a ton, or about one cent for more than 150 eight-ounce glasses. Estimates are that meeting the costs of repairs, upgrades, and the construction of new facilities, coupled with the supporting infrastructure, will approach 140 billion (CEQ, 1998)
The Safety Drinking Water amendment of 1997 was a multibillion-dollar state revolving loan fund that will provide standard setting, small water supply system flexibility and technical assistance, community-empowered source water assessment and protection, public right-to-know, and water system infrastructure
A persistent SDWA issue concerns the ability of public water systems to upgrade or replace infrastructure to comply with federal drinking water regulations and, more broadly, to ensure the provision of a safe and reliable water supply. In 1996, Congress responded about the Act’s unfunded mandates and authorized a drinking water state revolving loan fund program (DWSRF). This program was made to help public water systems finance infrastructure projects needed to meet drinking water standards and to address the most serious health risks. The Act authorizes EPA to award annual capitalization grants to the states. States then use their grants (plus a 20% state match) to provide loans and other assistance to …show more content…
This amount, combined with the state match, bond proceeds, and other funds, provided a total of $6.7 billion in DWSRF funds available for providing loans fund other assistance. Through June 30,2002, states had made more than 2,400 loans totaling $5.1 billion, and $1.6 billion remained available for loans.
The capital investment in municipal water-treatment facilities totals about 250 billion, and the annual cost of operating them is roughly 5 billion. Some 2 billion is spent annually in capital improvement of the facilities. Even so, the cost of drinking water remains low, still well under a dollar a ton, or about one cent for more than 150 eight-ounce glasses. Estimates are that meeting the costs of repairs, upgrades, and the construction of new facilities, coupled with the supporting infrastructure, will approach 140 billion (CEQ, 1998)
The Safety Drinking Water amendment of 1997 was a multibillion-dollar state revolving loan fund that will provide standard setting, small water supply system flexibility and technical assistance, community-empowered source water assessment and protection, public right-to-know, and water system infrastructure