Unlocking State Revolving Funds to Finance Resilience Across the Great Lakes Region
EPIC and Environmental Consulting & Technology, Inc. (ECT) have co-authored a report that examines the extent to which states allocate Clean Water State Revolving Funds (CWSRFs) to finance Green Stormwater Infrastructure (GSI) across the Great Lakes states. Climate change-induced increases in rainfall, flooding, and nutrient levels in the region spur the need to invest in solutions to build resilience, such as GSI.
Water infrastructure—gray or green—is expensive. Although most investments in water infrastructure are financed through the municipal bond market, intergovernmental aid is an important source of capital. The largest federal program that invests in clean water infrastructure is the CWSRF. Established by the U.S. Congress in 1987, CWSRFs have played a key role in improving water quality in the United States by providing more than $145 billion to finance more than 42,800 projects nationwide. In FY 2021, within the auspices of a historic $1.2 Trillion Infrastructure Law, the United States Congress appropriated $11.7 billion for the CWSRF program. States have significant flexibility in choosing which projects to finance with CWSRF funds. The flexibility allows states to address specific challenges. Analyses show that Great Lakes states have invested a small fraction of CWSRF funds in GSI.
Based on an analysis of EPA data for the past decade, states have allocated between 0 percent in Indiana to 6 percent in Pennsylvania of their CWSRF resources to GSI. However, even with limited GSI investment, there are many success stories of CWSRF-financed green infrastructure: the green roof at Temple University in Philadelphia, Pennsylvania, a $70 Million Fresh Coast Protection Partnership in Milwaukee, Wisconsin, and Save the Rain in Syracuse, New York. Allocating more CWSRF dollars for GSI would spur transformation in environmental, economic, public health, and social outcomes. GSI creates permanent local jobs to operate and maintain the projects and could advance equity by hiring women and minority-owned businesses.
Overall, GSI is sorely needed to address pressing challenges, and we recommend states in the Great Lakes region increase investment in GSI by:
Changing legislation, agency goals, and project ranking criteria to promote GSI
Providing more assistance for GSI by offering additional subsidies and sponsorship opportunities
Developing local revenue streams and maintenance practices
Engaging in outreach to foster enthusiasm for GSI
Utilizing SRF-financed GSI investments to advance equity