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1 (February 22, 2008)

handle is hein.crs/crsuntaakmi0001 and id is 1 raw text is: Order Code RS22037 Updated February 22, 2008 - CRS Report for Congress Drinking Water State Revolving Fund: Program Overview and Issues Mary Tiemann Specialist in Environmental Policy Resources, Science, and Industry Division Summary The Safe Drinking Water Act (SDWA) Amendments of 1996 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 FY1997, Congress has appropriated roughly $10.3 billion for this program, including $829 million for FY2008. As of June 2006, the DWSRF program had provided roughly $11 billion in assistance and supported 4,985 projects. The Environmental Protection Agency's (EPA's) latest (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 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, and the need for cities to improve water infrastructure, apart from SDWA compliance. Congress substantially revised the Safe Drinking Water Act with the 1996 SDWA amendments (P.L. 104-182). A key 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 authorized EPA to make grants to states to capitalize DWSRFs. States must match 20% of their annual grant and develop intended use plans each year indicating how the 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 replace aging infrastructure are eligible if they are needed to Congressional Research Service - The Library of Congress Prepared for Members and Committees of Congress

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