7 - Initial State Implementation of the Revolving Loan Fund Model

Summary

The period of initial state implementation of the Water Quality Act was a critical period in the development of the Clean Water State Revolving Fund (CWSRF). This chapter tests the propositions inherent in the CWSRF that states possessed the administrative, budgetary, political, and organizational resources necessary to implement the program successfully. Drawing on data from EPA and the states, combined with data from a 1990 survey of state program coordinators, this chapter examines the factors critical to state program design and implementation in the early years of the program. The findings from the 50-state analysis suggest that while some states had adequate resources available, many states struggled to balance the environmental and financial elements of the program. The data indicate that some states turned to the private sector for financial assistance, particularly states that chose to leverage their CWSRF capitalization grants. Some states moved quickly with program implementation, while other states proceeded more slowly. The findings highlight the differences in state resources available, and their willingness and ability to implement the program.