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The Clean Water State Revolving Fund: The Clean Water State Revolving Fund: A Sound Investment in Our Economy A Sound Investment in Our Economy

and Our Environmentand Our Environmentand Our Environmentand Our Environment

James A. HanlonDirector

Office of Wastewater ManagementU.S. EPA

The CWSRF in FY2009The CWSRF in FY2009

ARRAARRAI B k dI B k d

BASE PROGRAMBASE PROGRAMI FY09 P R tI FY09 P R tI. BackgroundI. Background

II. National ProgressII. National Progress

III. Challenges and III. Challenges and Next StepsNext Steps

I. FY09 Progress ReportI. FY09 Progress Report

II. Cumulative StatusII. Cumulative Status

III. Future of the ProgramIII. Future of the Program

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The American Recovery and Reinvestment ActThe American Recovery and Reinvestment Act

ARRA FundingARRA Funding

•• $4 billion for Clean Water allotted based on statutory formula$4 billion for Clean Water allotted based on statutory formula

•• $2 billion for Drinking Water allotted based proportional share$2 billion for Drinking Water allotted based proportional share•• $2 billion for Drinking Water allotted based proportional share $2 billion for Drinking Water allotted based proportional share

of national needof national need

•• Tribes get 1.5% of funding Tribes get 1.5% of funding

•• EPA authorized 1% (taking $51 million) for management and EPA authorized 1% (taking $51 million) for management and

oversightoversight

The American Recovery and Reinvestment ActThe American Recovery and Reinvestment Act

ARRA RequirementsARRA Requirements

•• All funds under contract or construction within 1 year (by All funds under contract or construction within 1 year (by

February 17, 2009)February 17, 2009)

•• Use 20% of the ARRA funds for green projects, such as energy Use 20% of the ARRA funds for green projects, such as energy

and water efficiency, green infrastructure, and environmentally and water efficiency, green infrastructure, and environmentally

innovative projectsinnovative projects

•• Apply Buy American and Davis Bacon provisions to all fundsApply Buy American and Davis Bacon provisions to all funds

Provide at least 50% of the funds as additional subsidizationProvide at least 50% of the funds as additional subsidization•• Provide at least 50% of the funds as additional subsidizationProvide at least 50% of the funds as additional subsidization

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The American Recovery and Reinvestment ActThe American Recovery and Reinvestment Act

ARRA Goals ARRA Goals

•• Maximize job creation and economic benefitMaximize job creation and economic benefit

•• Provide additional subsidization Provide additional subsidization

•• Give preference to shovelGive preference to shovel--ready projectsready projects

•• Have 50% of funds under contract or construction within 6 months Have 50% of funds under contract or construction within 6 months

CWSRF Progress Towards ARRA GoalsCWSRF Progress Towards ARRA Goals$4,000,000,000

$3,500,000,000

$3,000,000,000

$2,500,000,000

$2 000 000 000$2,000,000,000

$1,500,000,000

$1,000,000,000

$500,000,000

$0

9

8/3/200

9

8/10/2

009

8/17/2

009

8/24/2

009

8/31/2

009

9/7/200

9

9/14/2

009

9/21/2

009

9/28/2

009

10/5/

2009

10/12

/2009

10/19

/2009

10/26

/2009

Federal Grant AwardsFederal Grant Awards Assistance Agreement AwardedAssistance Agreement Awarded

Under ContractUnder Contract Total ARRA Funds AvailableTotal ARRA Funds Available

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ARRA Funds Under ContractARRA Funds Under Contract

60.0%

70.0%

80.0%

90.0%

100.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Alaba

Alask

Arizo

Arkan

Califo

Color

Conn

Delaw

FloridG

eorH

awa

IdahoIllinoIndiaIow

aK

ansK

entLouisM

aineM

aryM

assM

ichM

innM

issiM

issoM

ontN

ebraN

evaN

ewN

ew

New

N

ew

North

North

Ohio

Oklah

Oreg

PennPuertR

hodSoutSoutTennTexasU

tahVermVirginW

ashW

estW

iscoW

yomama

kaonansasorniarado

necticutw

areda giaaiio is na asuckysianae landachusettsiganesotaissippiouritanaaskada JerseyM

exicoYork

h Carolina

h Dakota

homa

on sylvaniato R

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arolinah D

akotaessees ontniahington Virginiaonsinm

ing

The Green Project ReserveThe Green Project ReserveGPR for ARRAGPR for ARRA::

•• The Green Project Reserve is a priority of Administrator JacksonThe Green Project Reserve is a priority of Administrator Jackson

•• Most states have embraced the challenge of the Green Project Most states have embraced the challenge of the Green Project Reserve and many expect to exceed the 20% requirementReserve and many expect to exceed the 20% requirementy p qy p q

GPR for the Future of the CWSRFGPR for the Future of the CWSRF::•• More states are looking fund green projectsMore states are looking fund green projects

•• 20% Green set20% Green set--aside in appropriations and reauthorizationaside in appropriations and reauthorization

•• Opportunity for growthOpportunity for growth

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•• Meeting the February 17, 2009 deadlineMeeting the February 17, 2009 deadline

Challenges and Next StepsChallenges and Next Steps

•• Continued oversight and tracking of the ARRA dollarsContinued oversight and tracking of the ARRA dollars

•• Compliance with the Buy AmericanCompliance with the Buy American

•• Addressing states that certify insufficient projects to meet GPRAddressing states that certify insufficient projects to meet GPR

CWSRF Base ProgramCWSRF Base ProgramFY09 Progress ReportFY09 Progress Report

-- Assistance ProvidedAssistance Provided

Cumulative StatusCumulative Status-- Type of Funds ProvidedType of Funds Provided-- Relative Share of Federal InvestmentRelative Share of Federal Investment-- PacePace

Future of the ProgramFuture of the Program

-- FY2010 AppropriationsFY2010 Appropriations

-- ReauthorizationReauthorization

-- HUDHUD--DOTDOT--EPA PartnershipEPA Partnership

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4.85.8

5.35.0

4.94.650

60

70

80Billions of Dollars

CWSRF Cumulative Assistance Reaches $73.6 Billion*

4.64.34.0

4.23.0

3.12.82.72.93.02.0

2.3

0

10

20

30

40

'92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09

Annual CumulativeMore than 1,780 Loans in 2009 Cumulative Number of Loans Exceeds 24,400

*base program funds, excludes ARRA funds

CWSRFs Fund $73.6 Billion* CWSRFs Fund $73.6 Billion* (Through 2009)(Through 2009)

38%4%

18%

SecondaryTreatmentNonpoint Source

& EstuaryAdvanced TreatmentPOTW

R l d

1%10%

11% 17%

18%<1%96%

CSO

Storm Water

SSONew

Sewers

Recycled Water

$28.1 $8.3$13 0 $7 2Total: $73.6 Billion

$POTW$70 3 $13.0 $7.2

$12.8 $0.5$0.4

NPS & Estuary: $3.0B($0.3B not classified)

$70.3 Billion

*base program funds, excludes ARRA funds

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Relative Share of Federal Funds Declines Over TimeRelative Share of Federal Funds Declines Over Time

60%

80%

100%

State Match

Net Earnings

Net Loan Principal Repayments

15%

30%

0%

20%

40%

1990 91' '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09Annual

Federal Capitalization Grants

Net Leveraged Bonds

11%2%

43%

Cumulative 1988 - 2009:36% Capitalization Grants 33% Net Leveraged Bonds 8% Net Earnings

8% State Match 18% Net Loan Principal Repayments*base program funds, excludes ARRA funds

98% of CWSRF Funds Committed to Projects*98% of CWSRF Funds Committed to Projects*

50

60

70

80Billions of Dollars (Cumulative)

$ $75.2

Funds Available

$73.6

0

10

20

30

40

Assistance Provided

1991 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09

*base program funds, excludes ARRA funds

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FY2010 AppropriationsFY2010 Appropriations

FY2010 Conference Report FY2010 Conference Report ::•• $2.1 billion appropriation for CWSRF$2.1 billion appropriation for CWSRF

•• 2% to tribes and 1.246% to the territories2% to tribes and 1.246% to the territories

•• Not less than 30% of capitalization grant be provided as additional Not less than 30% of capitalization grant be provided as additional subsidizationsubsidization

Applies to fund in excess of $1 billionApplies to fund in excess of $1 billion

•• 20% set20% set--aside for the Green Project Reserveaside for the Green Project ReserveLanguage taken from ARRA. Green projects include green Language taken from ARRA. Green projects include green infrastructure, energy and water efficiency, and environmentally infrastructure, energy and water efficiency, and environmentally innovative. innovative.

•• Davis Bacon applies to all fundsDavis Bacon applies to all funds

Reauthorization of the Clean Water ActReauthorization of the Clean Water ActKey Features: Key Features: •• Technical AssistanceTechnical Assistance

•• Additional Recipient RequirementsAdditional Recipient Requirements

Status of Bills:Status of Bills:H.R. 1262H.R. 1262•• Introduced in the House on 3/3/09 Introduced in the House on 3/3/09 and passed on 3/12/09and passed on 3/12/09 •• SetSet--asidesasides

•• Additional SubsidizationAdditional Subsidization

•• Priority PlanningPriority Planning

•• New ProgramsNew Programs

•• AllotmentAllotment

•• $13.8 to $20 billion over 5 years$13.8 to $20 billion over 5 years

and passed on 3/12/09and passed on 3/12/09

S. 1005S. 1005

•• Introduce in the Senate on 5/7/09 Introduce in the Senate on 5/7/09 and passed by committee on 7/15/09and passed by committee on 7/15/09

•• Placed on Senate calendarPlaced on Senate calendar

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Sustainability PolicySustainability PolicyThe President’s 2010 Budget calls for:

“… a sustainability policy, including management and pricing for future infrastructure funded through SRFs to encourage conservation and to

provide adequate long-term funding for future capital needs …"p q g g p

Development of the Sustainability Policy has been a collaborative ProcessDevelopment of the Sustainability Policy has been a collaborative Process::

•• Organized workgroup of utility managers and state officialsOrganized workgroup of utility managers and state officials

•• Conducted a national public webcast in June 2009Conducted a national public webcast in June 2009

•• Held a state meeting in Chicago in July 2009Held a state meeting in Chicago in July 2009

S b itt d d ft li t OMB i S t b d h ldiS b itt d d ft li t OMB i S t b d h ldi•• Submitted a draft policy to OMB in September and are now holding Submitted a draft policy to OMB in September and are now holding discussionsdiscussions

HUDHUD--DOTDOT--EPA PartnershipEPA Partnership“For too long, federal policy has actually encouraged sprawl and “For too long, federal policy has actually encouraged sprawl and

congestion and pollution, rather than quality public transportation and congestion and pollution, rather than quality public transportation and smart, sustainable development…”smart, sustainable development…”

President Barack ObamaPresident Barack Obama

Role of CWSRF in the HUDRole of CWSRF in the HUD--DOTDOT--EPA PartnershipEPA Partnership::1. Pilot technical assistance program with interested states1. Pilot technical assistance program with interested states

2. Publish SRF best practices for Promoting Sustainable Communities2. Publish SRF best practices for Promoting Sustainable Communities

3. Complete the Clean Water and Drinking Water SRF Sustainability Policy 3. Complete the Clean Water and Drinking Water SRF Sustainability Policy

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