The document discusses the history and importance of sustainable water infrastructure financing in the U.S., highlighting the Clean Water State Revolving Fund and its flexibility for state implementation. It outlines the current challenges in funding to address population growth and aging infrastructure, citing the estimated financial gaps for water investment from 2000 to 2019. The document concludes with the EPA's four pillars for sustainable infrastructure: full cost pricing, water efficiency, better management, and a watershed approach.

1. 1
Sustainable Water Infrastructure
through Innovative Financing

2. 2
The History of Water Infrastructure
Financing
 In 1970’s, The U.S. Congress passed legislation making
EPA an important fiscal partner in wastewater funding
 In 1987, in order to better serve state and local
communities specific water needs, the U.S. Congress
established the Clean Water State Revolving Fund
 During this time, EPA developed a new permit
processes to control discharges to the nation’s
waterways
 Very large investments were made in the treatment of
industrial waste and in the upgrading of the public
wastewater systems

3. 3
Features of the State Revolving
Fund (SRF) Program
 Federally and state provided “seed money”
 State programs are allowed great flexibility
 State implemented and operated
 Public participation is encouraged
 Federal involvement is limited

4. 4
An SRF Functions As An
Infrastructure Bank
Each state operates its own SRF that makes loans for
wastewater treatment and nonpoint source projects;
including agricultural and urban runoff, leaking storage tanks,
septic systems, and protecting drinking water sources

5. 5
The Gap Report
 Purpose -- To quantitatively
understand the future needs for
water investment to:
– Address U.S. population
growth/economic needs,
and
– Renew existing aging
infrastructure.
 Estimates were made for water
and wastewater, investment,
cost and payments (2000-
2019).
 Needs – Spending = GAP.
http://www.epa.gov/owm/gapreport.pdf

6. Total Gap (20 Years)
(Average in Billions of $)
Drinking
Water
6
GAP Findings For 20 Years - -
(2000-2019)
Clean
Water
Capital $21 $45
O&M $10 $0
Total $31 $45
No Revenue Growth
GAP Scenario
Revenue Growth
GAP Scenario (3%)*
(Annual Rate of Increase - 3% above inflation)
Total Gap (20 Years)
(Average in Billions of $)
Drinking
Water
Clean
Water
Capital $122 $102
O&M $148 $161
Total $271 $263

7. 7
Great Success, Yet An Emerging
Challenge
Source: USEPA,
Progress in Water
Quality: An
Evaluation of the
National
Investment in
Municipal
Wastewater
Treatment,
June 2000.
A projection of increasing BOD U
(Metric Tons Per Day)
0
25,000
20,000
15,000
10,000
5,000
1968 1978 2016

8. 8
EPA Has Identified Four Pillars
for Sustainable Infrastructure
 Full cost pricing
 Water efficiency
 Better management
 Watershed
approach

9. 9
Full Cost Pricing
 ensures that there are sufficient
revenues in place to support the costs
of doing business
 can also have the added benefit of
encouraging efficient water use

10. 10
Water Efficiency
 reduces the need for costly
infrastructure
 options include:
 metering,
 water reuse,
 water saving appliances,
 landscaping and
 public education

11. 11
Better Management
 Asset management (Better acquisition,
Operations and maintenance, and, Renewal
and replacement), environmental
management systems (EMS’s)
 Focuses on better
– utility performance,
– environmental performance, and
– customer service

12. 12
Watershed Approach
 looks more broadly at water resources
in a coordinated way
 targets resources towards highest
priorities
 examples of watershed approaches
include:
 permitting on a watershed basis
 water quality trading

13. 13
Thank you