FUND-7 (6/28/05 version)
Clean Water Act, Ohio Water Pollution Control Loan Fund
State Revolving Funds (SRFs) were authorized by Congress in 1987 amendments to the Clean Water Act and is known as the
Water Pollution Control Loan Fund (WPCLF). The Ohio WPCLF was created by the Ohio legislature in 1989. The WPCLF has funded a variety of water pollution control projects (both point source and nonpoint source) under the authority of Section 603(c) (PDF 303kb) of the Clean Water Act and
Section 6111.036 (A)(2) of the Ohio Revised Code.
From 1989 through 1993 the WCPLF was used exclusively to fund municipal point source improvement projects. The first nonpoint source pollution project funded by the WCPLF was in 1993 and involved work within the Killbuck Creek watershed. Since then, WPCLF financial assistance for nonpoint source projects has increased steadily with more than $104 million in NPS project assistance in the last ten years.
During 2000, Ohio EPA expanded the program to include a new feature called the
Water Resource Restoration Sponsor Program (WRRSP) (PDF 18kb). The WRRSP focuses funding on nonpoint source implementation projects, as well as the protection of high quality stream habitat and the restoration of impaired waters. The WRRSP is designed to assist in preventing the further loss of ecological function and biological diversity threatening the health of Ohio water resources. The WPCLF provides funds through the WRRSP, by advancing future interest payments due from the direct WPCLF loan, to pay for the implementation of WRRSP projects.
The interest advance approach is unique to Ohio and is a very important and effective mechanism for encouraging the protection of high quality waters and the restoration of impaired waters throughout Ohio. Specifically, since it began, the WRRSP has provided nearly $35 million for water quality protection and restoration. In combination with the WPCLF, it is a crucial component of Ohio efforts to meet NPS Management Plan targets.
Tables 1 and 2 reflect recent WPCLF activity for NPS projects.
|Table 1, WPCLF NPS Loan Awards, January 2000 - September 2003|
|Year||NPS Funding Amount|
|Table 2, Type of WPCLF NPS Loan Awards, 1993 - 2003|
|NPS Type||Number of Loans||$ Amount|
|Conservation Easements/ Land Acquisition||5||$1,391,900|
|On-lot HSTS Upgrade*||27||$180,760|
|Rural Hardship Match||6||$367,883|
|* Numbers do not include lateral connections to existing sewers (14/$173,031)|
Key facts about the role of the WPCLF in financing NPS solutions in Ohio are as follows:
- All NPS loan funding comes out of the WPCLF “Repayments Fund”, which is able to support approximately $20 million per year. Except for the WRRSP (which has a defined nomination period), the WPCLF is able to accept project nominations throughout the year.
- The demand for WPCLF funds has not yet exceeded the availability of funds. Thus, funding has been available for all appropriate and effective project nominations received. The sole exception is WRRSP projects, with the number of nominations frequently exceeding the funding available in a given year.
- There are no pre-determined maximum or minimum limitations on WPCLF loans. For example: WPCLF loans have ranged from $3,500 to more than $8.5 million.