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1 (February 1, 2005)

handle is hein.crs/crsmthabdca0001 and id is 1 raw text is: Order Code RS22037 February 1, 2005 CRS Report for Congress Received through the CRS Web Drinking Water State Revolving Fund: Program Overview and Issues Mary Tiemann Specialist in Environmental Policy Resources, Science, and Industry Division Summary In the Safe Drinking Water Act (SDWA) Amendments of 1996 (P.L. 104-182), Congress authorized a drinking water state revolving loan fund (DWSRF) program to help public water systems finance infrastructure projects needed to comply with federal drinking water regulations and to protect public health. Under this program, states receive capitalization grants to make loans for drinking water projects and to support certain other SDWA activities. The DWSRF program was authorized at $1 billion annually through FY2003. Since the program was first funded in FY1997, Congress has provided $7.8 billion, including roughly $843 million for FY2005. Through June 2004, the program had provided $7.9 billion in assistance and supported 6,500 projects. The Environmental Protection Agency's (EPA's) 2001 survey of capital improvement needs for public water systems indicated that these systems need to invest $150.9 billion on infrastructure improvements over 20 years to ensure the provision of safe water. Key issues include the gap between estimated needs and funding; SDWA compliance costs, particularly for small systems; and the broader need for cities to improve their water infrastructure, separate from SDWA compliance. In the past two congresses, bills were reported that proposed to increase DWSRF funding levels and establish small system grant programs. Several new standards promise to increase costs, and congressional interest is likely to continue. This report will be updated. The 104th Congress substantially revised the Safe Drinking Water Act with the 1996 SDWA Amendments. A key new provision, Section 1452, authorized a drinking water state revolving loan fund (DWSRF) program to help public water systems finance improvements needed to comply with federal drinking water regulations and to address the most serious risks to human health. The law authorizes EPA to make grants to states to capitalize DWSRFs. States must match 20% of the federal grant and develop intended use plans that indicate how allotted funds will be used. States may use the DWSRF to provide loans and other assistance to eligible public water systems for expenditures that EPA has determined will facilitate SDWA compliance or significantly further the Act's health protection objectives. Eligible projects include installation and replacement of failing treatment facilities, distribution systems, and certain storage facilities. Projects to Congressional Research Service **o The Library of Congress

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