1. Sustainable Water Infrastructure through Innovative Financing

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. 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. 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. 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 ( ).
Needs – Spending = GAP.

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

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

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

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

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. 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. Thank you