Clean Water Act: Use of State Revolving Funds Varies

Pursuant to a congressional request, GAO discussed its preliminary review of the State Water Pollution Control Revolving Fund (SRF) Program. GAO noted that: (1) as of June 30, 1995, the states had loaned 77 percent of their $18.9 billion in available cumulative funds; (2) the proportion of state loans varies between states; (3) program data are incomplete, since the Environmental Protection Agency has not yet developed the national program information system; and (4) impediments that states have encountered in loaning SRF funds include some states' lack of experience in managing lending programs, the inability of some small communities to repay the loans, the ability of large communities to obtain more favorable loans elsewhere, the availability of nonrepayable federal grants, and the need for voter approval in some states.