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Safe Drinking Water Act: State Revolving Fund Program (CRS Report for Congress)

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Release Date Revised May 10, 2004
Report Number 97-677
Authors Mary Tiemann, Environment and Natural Resources Policy Division
Source Agency Congressional Research Service
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  • Premium   Revised March 10, 2003 (6 pages, $24.95) add
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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 this program, states receive capitalization grants to make loans for drinking water projects and to support certain other activities. The DWSRF program is authorized at $1 billion annually through FY2003. Since the program was first funded in FY1997, Congress has provided a total of $5.27 billion, including $850 million for FY2002. Through June 2002, states had made available a total of $5.075 billion in DWSRF assistance. In 2001, the Environmental Protection Agency (EPA) issued a survey of capital improvement needs for water systems which forms the basis for allotting DWSRF funds among the states. The survey indicated that communities need to invest $150.9 billion on drinking water infrastructure improvements over the next 20 years. The107th Congress examined water infrastructure financing issues, and the Senate Environment and Public Works Committee reported legislation to increase funding authority for the DWSRF program and to create a grant program for small systems. In the 108th Congress, legislative interest in drinking water matters may continue to be dominated by infrastructure issues. These include the gap between estimated needs and funding, SDWA compliance and affordability issues for small systems, and the availability of DWSRF and other funds for security improvements.