Key Questions States Should Consider When Developing a CWSRF Sponsorship Program

Sponsorship programs are one tool that State Revolving Fund (SRF) programs can adopt to support important green infrastructure or nonpoint source projects that would otherwise not move forward. 

This tool is timely given the current uncertainty around the federal funding that states and municipalities have relied upon to fund green stormwater infrastructure (GSI) projects in the past. The flexibility that states are allowed in determining what and how to prioritize projects makes this approach customizable for water quality challenges specific to each state.

Several states have adopted sponsorship programs, and the lessons learned from these efforts are presented here. Key factors that any state will need to consider are broken down and options discussed. Although a relatively straightforward arrangement of pairing larger traditional Clean Water State Revolving Fund (CWSRF) loans with a green stormwater infrastructure or nonpoint source project, ensuring that projects with the greatest number of co-benefits are implemented requires careful consideration. 

Methods for creating state-specific priorities, as well as the necessary administrative and political support for this type of program, are outlined. Sponsorship programs have delivered important water quality and related benefits in a few states and are a tool that can give states the ability to support these types of projects over a sustained period.