A State Revolving Fund (SRF) is a fund administered by a U.S. state for
the purpose of providing low-interest loans for investments in water and
sanitation infrastructure (e.g., sewage treatment, stormwater management
facilities, drinking water treatment), as well as for the implementation
of nonpoint source pollution control and estuary protection projects.
SRF receives its initial capital from federal grants and state
contributions. It then "revolves" through the repayment of principal and
the payment of interest on outstanding loans.
There are currently two SRF programs, the Clean Water State Revolving
Fund created under the Clean Water Act, and the Drinking Water State
Revolving Fund created under the Safe Drinking Water Act.
SRF in Florida
for wastewater construction began in 1957 with the
Federal construction grants program and accelerated dramatically
with the passage of the Clean Water Act in 1972. During the next 16
years Florida received an average of $125 million grant dollars per
year. Amendments to the Clean Water Act in 1987 called for the
replacement of the long-standing federal Construction Grants program
with the innovative CWSRF program.
The first loans from the Clean Water SRF were made in 1989 to the City
of Tampa for $17,928,000. By the end of FY 2015, the program will exceed $4
billion in loans. The Safe Drinking Water Act of 1996 established a
SRF program to protect the safety of drinking water. The Drinking Water SRF made its first
grant in August 1998 to Lloyd Water Works, and its first loan to Tradewinds Utilities in
Today, the SRF
program is by far DEP's largest funding program and makes $200-300
million or more available, primarily to local governments, each year.
Funds are currently available for Clean Water and Drinking Water SRF
The CWSRF financing rate is determined using the Bond Buyer 20-Bond
GO Index average market rate for the full weeks occurring during the
three months in the preceding fiscal quarter and applying that average
rate to a formula which also uses the affordability index and population
served or to be served as variables in the calculation. The
affordability calculation spreadsheet is available to provide an
estimation of the loan financing rate. Note that the rate
calculated is only valid in the current quarter. There are up to 1.2% in
additional rate reductions that may be assessed based on Davis Bacon
requirements, Buy American requirements, asset management plan,
and “green” projects. The DWSRF financing rate is 60% of the market rate.
CWSRF Financing Rate Formula
FR = MR – 4 + (4/(1+(100/AI)3)) – 1/Log(P)
FR = financing rate
MR = Market Rate
AI = Affordability Index
P = Population served or to be served by the sponsor