States miss opportunities to improve water system infrastructure

Aug. 12, 2014

WASHINGTON — An EPA report from the Office of Inspector General reveals that some states are not maximizing the use of Drinking Water State Revolving Funds (DWSR).

WASHINGTON — The EPA Office of Inspector General (OIC) reports that some states are not capitalizing on the use of Drinking Water State Revolving Funds (DWSRF), leading to “missed opportunities” to improve water system infrastructure, according to a press release.

An investigation of DWSRF use in five states revealed that “unliquidated balances” surpass the EPA goal of keeping those balances below 13 percent of the cumulative federal capitalization grants awarded, stated the release.

The OIG also discovered that the states were not sufficiently 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, continued the release.

More than $230 million of capitalization grant funds remained idle as a result, and the OIG recommended that EPA require states with unliquidated obligations exceeding 13 percent cutoff goal, to project future cash flows, guaranteeing funds are utilized resourcefully, noted the release.

You can find the entire press release here.

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