I have blogged previously about the issues facing water/wastewater systems in the U.S. and the challenge of funding
replacement of aging infrastructure and upgrading to meet the
requirements of the Clean Water Act. One of the most important funding
mechanisms are state revolving funds which provide low interest loans
for water and wastewater infrastructure.
The Clean Water State Revolving Fund (CWSRF)
provides loans for water quality improvement projects including
municipal wastewater facilities, estuary protection projects, and
nonpoint source pollution control.  The Drinking Water State Revolving
Fund (DWSRF) supports loans to improve drinking water quality,

According to the ASCE, the problem is that most jurisdictions are
spending between 1 and 1.5 percent on infrastructure, which is down
from 5 to 6 percent spent in the 1960s and ’70s.  In September 2002, an
EPA Gap Analysis
concluded that if there is no increase in investment, there will be a
$6-billion gap between current annual capital expenditures for
wastewater treatment ($13 billion annually) and projected spending
needs.  The EPA has estimated that total investments of $187.9 billion for
wastewater and $334.8 billion for drinking water is required over the 
next 20 years.  The American Water Works Assn (AWWA)
has estimated that the cost of repairing and expanding U.S. drinking
water infrastructure will exceed $1 trillion in the next 25 years and
$1.7 trillion over 40 years.

In late June of this year the House Appropriations Subcommittee on Interior,
Environment and Related Agencies of the U.S. House of Representatives
approved a FY2013 funding bill that will cut state revolving funds for
water and wastewater.  The cuts
are significant

• CWSRF – 53 percent cut from the $1.47 billion 2012 to $689 million in 2013
• DWSRF – 9.7 percent cut from $918 million in 2012 to $829 million in 2013.

Eight U.S. water organizations including the AWWA have just sent a letter to Congress encouraging Congress to ensure funding for the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF) is maintained at the Senate proposed figures of $1.47 billion and $918 million.

In addition they asked for $238 million for the Clean Water Act §106 Operating Grant program and  $190 million for the Public Water Work System Supervision Program.