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1 (April 27, 2006)

handle is hein.crs/crsmthabdcc0001 and id is 1 raw text is: Order Code RS22037 Updated April 27, 2006 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 the program, states receive capitalization grants to make loans to water systems for drinking water projects and certain other SDWA activities. Since the program was first funded in FY1997, Congress has provided roughly $8.65 billion, including, in P.L. 109-54, $850 million for FY2006, as requested. Through June 2004, the DWSRF program had provided $7.9 billion in assistance and had supported 6,500 projects. The Environmental Protection Agency's (EPA's) 2003 survey of capital improvement needs for public water systems found that water systems need to invest $276.8 billion on infrastructure improvements over 20 years to ensure the provision of safe water. This amount represents a 60% increase over the 1999 survey estimate of $165.5 billion (in 2003 dollars) and reflects funds needed for compliance with several new and pending regulations (e.g., the revised arsenic and radium rules), security-related needs, and better reporting of needs for infrastructure rehabilitation and replacement. 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, apart from SDWA compliance. 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 Congressional Research Service +. The Library of Congress

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