User:Nchamberlain/DWSRFdraft

The Drinking Water State Revolving Fund (DWSRF) is a public health-focused, self-perpetuating loan assistance authority for drinking water infrastructure projects in the United States. The fund is administered by the U.S. Environmental Protection Agency and state agencies and provides low-interest loans for the construction and rehabilitation of drinking water infrastructure.

Modeled after the Clean Water State Revolving Fund (CWSRF), the DWSRF was established by Congress as part of the 1996 Amendments to the Safe Drinking Water Act. The DWSRF is designed to finance investments in infrastructure and to support the key initiatives introduced in the Amendments, including ensuring the technical, managerial, and financial capacity of drinking water systems; achieving sustainable infrastructure; and preventing drinking water contamination. The program also places an emphasis on small and disadvantaged communities and on programs that emphasize prevention as a tool for ensuring safe drinking water.

Since inception, cumulative assistance has surpassed US$18.6 billion, and is continuing to grow through interest earnings, principal repayments, and leveraging.

Revolving structure
All 50 states and Puerto Rico operate a DWSRF program. The 51 DWSRF programs function like environmental infrastructure banks by issuing low-interest rate loans for drinking water quality projects. Principal repayments plus interest earnings become available to finance new projects, allowing the funds to "revolve" over time. Over time, loan repayments are recycled back into individual DWSRF programs. States can only use the funds to make loans, purchase local debt, or issue financial guarantees. They cannot make grants or otherwise dissipate the capital in their funds. States can also increase their DWSRF financing capacity by issuing DWSRF backed revenue or general obligation bonds. To date, 20 states have leveraged their programs in this way, raising an additional US$3.4 billion for drinking water projects. page 3

The 51 funds are capitalized in part by federal and state contributions. For every dollar contributed by the federal government, states contribute 20 cents. Since the first federal capitalization grants in 1997, the total federal appropriation to the 51 DWSRF programs has reached over US$12 billion, with corresponding state contributions of US$2.1 billion. Financial leveraging techniques conducted by state funds have snowballed federal and state contributions into $18.6 billion as of 2009.

Set-Asides
Unlike the CWSRF, ...