EPA report shows states not maximizing use of state revolving funds

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Aug. 12, 2014 -- According to a recent report from the Environmental Protection Agency's (EPA) Office of Inspector General (OIG), some states are not maximizing the use of Drinking Water State Revolving Funds (DWSRFs), resulting in "missed opportunities" to improve water system infrastructure.

OIG found that an investigation of DWSRF use in five states showed that "unliquidated balances" exceed the EPA goal of keeping those balances below 13 percent of the cumulative federal capitalization grants awarded

The Office further found that the states were not adequately projecting the DWSRF resources that would be available in the future to enable them to anticipate the amount of projects needed to be ready for loan execution in a given year.

"As a result, $231 million of capitalization grant funds remained idle, loans were not issued, and communities were not able to implement needed drinking water improvements," OIG stated.

OIG recommended that EPA require states with unliquidated obligations that exceed the 13-percent cutoff goal to project future cash flows to ensure funds are expended as efficiently as possible.

To view the full report, click here.

See also: "Water infrastructure funding faces cuts in FY2015 budget request"

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