State revolving fund

A state revolving fund (SRF) is a fund administered by a U.S. state for the purpose of providing low-interest loans for investments in water and sanitation infrastructure (e.g., sewage treatment, stormwater management facilities, drinking water treatment), as well as for the implementation of nonpoint source pollution control and estuary protection projects.

An SRF receives its initial capital from federal grants and state contributions.

It then "revolves" through the repayment of principal and the payment of interest on outstanding loans.

[2] Both programs are managed at the federal level by the Environmental Protection Agency (EPA).

The agency’s goal was to devolve "primacy" (i.e. oversight of local public water systems) to states that were prepared to accept the responsibility and to use the new funds provided by Congress in EPA’s budget to give states financial support.