About the Clean Water State Revolving Loan Fund — The Clean Water State Revolving Loan Fund (CWSRF), was created by Congress in the Clean Water Act amendments of 1987, to replace the Construction Grant Program. The purpose of the CWSRF is to provide loans at or below market rate and to provide other forms of financial assistance to municipalities to assist them in financing the construction of wastewater treatment works, storm water projects, and projects to control nonpoint sources of water pollution.
Goals and objectives of the SRF program
- Protect the public health by providing financial assistance for the construction of publicly owned Wastewater Treatment Plants and non-point source control projects.
- Provide best available financial assistance to municipalities and interstate agencies through the management of the SRF.
- Ensure technical integrity of the SRF program through adequate and effective planning, engineering reviews and compliance inspection.
- Ensure proper accounting, audit and fiscal procedures.
- Maintain an adequate data management system.
- Administer the SRF so that its revolving nature is assured perpetuity.
Information about Nevada programs funded under the 2009 American Recovery and Reinvestment Act (ARRA) for "Clean Water" is available here
The types of financial assistance available include:
- Loans at or below market rate;
- Loan guarantees;
- Purchase bond insurance to guarantee debt service retirement;
- Refinancing existing debt obligations where the initial debt was incurred after March 5, 1987 and the project complied with all the requirements necessary to receive a loan.
Under the revolving loan fund concept, a fund is capitalized with a combination of federal grants and state matching funds (in the amount of 20% of the federal grants). Nevada's matching funds are provided by the sale of state bonds which are secured by the loan agreements with local governments and the full faith and credit of the State.
Project development may best be considered as a three step process:
Authorization for funding capitalization grants ended in Federal Fiscal Year 1994. However, funds have been appropriated on an annual basis by Congress since 1994. Although the status of future federal funding is uncertain at this time, repayments to the revolving loan fund are building a balance which is available to make new loans.
The loan repayment periods range from 10 to 20 years with interest rates at or below market. Interest rates are currently calculated at 62.5% of the Bond Buyers Index Rate. The Agency, however, can use other means of determining the interest rate if it concludes another method is appropriate. The loan program is quite flexible both in terms of financing strategies and types of projects that can be funded.
Eligible projects include sewage treatment plants, collection systems, interceptors, infiltration/inflow correction, sludge management projects, storm water control projects, erosion control and other non-point source control projects.
- Facilities planning to determine the type and extent of project you should build and the environmental review of the proposed project.
- Project design including the preparation of construction drawings, specifications and other contract documents.
- Building the project.
After the Federal government appropriates funds for the grants for the SRF program, EPA allots the funds to the States based on a formula established by law. Each state, in turn, prepares a list of all projects to be funded and ranks the projects in order of their importance. The resulting list is called the "CWSRF Priority List" (see above). Your project must be included on the list in order for you to obtain financial assistance.
The steps to be followed to receive a loan are:
- Submit two copies of your Facility Plan or PER to the Office of Financial Assistance.
- Your Facility Plan or PER must be reviewed and approved by the Office of Financial Assistance and the Bureau of Water Pollution Control.
- The Office of Financial Assistance will complete an Environmental Review based on the Environmental Information included in the Facility Plan, Environmental Report, or Environmental Information Request Form.
- Submit your CWSRF loan application to the Office of Financial Assistance. Loan applications are available on this webpage (see below).
- Secure the services of Bond Counsel. The loan is in the form of a bond. All steps to sell a bond on the open market must be followed, except that the bond is sold to the State Treasurer at below market rate. The bond is ordinarily a General Obligation Bond and must be sold in accordance with the provisions of NRS Chapter 350. Under some circumstances, the bond can be a Revenue Bond.
- Submit a sewer use ordinance and user charge system for review by the Office of Financial Assistance.
- Submit design and specifications for review and approval by the Office of Financial Assistance and Bureau of Water Pollution Control.
- Construct the project.