Safe Drinking Water Act: State Revolving Fund Program

Publication Date: May 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Environment

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Abstract:

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 $6.94 billion, including $844.9 million for FY2004. Through June 2003, the DWSRF program had provided $6.37 billion in assistance and supported 5,333 projects. For FY2005, the Administration has requested $850 million for this program.

The Environmental Protection Agency’s (EPA’s) 2001 survey of capital improvement needs for public water systems indicated that communities need to invest $150.9 billion on drinking water infrastructure improvements over the next 20 years. Interest in addressing infrastructure funding needs and related issues continues in the 108th Congress. Key issues include the gap between estimated needs and funding, SDWA compliance and cost issues, particularly for small systems, and the availability of funds for security improvements. Bills have been introduced to increase DWSRF funding levels and to provide grants to small systems. This report will be updated.