State Revolving Fund three

Finding more information about the SRF in your state

Many states have extensive information about their SRF program on their websites with links to project scoring systems, environmental review requirements and other useful program information.

Every year, each state publishes two documents that anyone interested in the SRF program should obtain. The first is the state’s annual SRF report, which shows how much money was spent on projects, and for what purposes, during the past year. The second is the state’s annual Intended Use Plan (IUP), which indicates priorities for future loans. You may also want to obtain a copy of the state’s capitalization grant agreement with the EPA which spells out the terms of the program.

Repercussions for failure to follow SRF rules

If a state fails to follow EPA rules or meet all conditions of its capitalization grant agreement, the EPA may issue a “finding of noncompliance.” If such a finding is made, the Regional Administrator must prescribe the necessary corrective action. EPA’s corrective action must remedy the specific instance(s) of noncompliance and require adjustments in program management to avoid similar problems in the future. If the state fails to take the required corrective actions within 60 days, new SRF grant funds may be withheld. If the state fails to take the necessary actions within twelve months, any funds withheld must be reallocated to other states (40CFR35.3170).

Public vs. private projects in the SRF

One of the most important emerging questions is whether SRF loans are exclusively for public projects or whether they should also be available to help private interests, such as operators of concentrated animal feedlot facilities, install pollution control systems.

Supporters of opening SRF loans to the private sector contend that it would accomplish more pollution control in many watersheds. Opponents say that operators of private facilities should use private capital to pay for their required pollution control systems, which should be viewed simply as a basic cost of doing business.

Some states allow state or local governments to administer SRF loans to private entities such as individual farmers or landowners for qualified pollution prevention projects.