Financing Management Programs
Even if you are totally convinced that onsite septic system management is a just and noble cause, you probably are also thinking "Show me the money!" The actual cost of developing and implementing a septic system management program can vary greatly, depending on the level of management.
State, tribal, and local governments must recognize that it is likely that both the regulatory authority and the property owner will face increased costs in improving management practices and programs. The cost impacts may increase as the level of management increases; however, trade-offs exist. Costs incurred by the regulatory authority and/or management entity may be offset by increased permit fees and more efficient data management tools, while the costs to the property owner may be offset by reduced repair and replacement costs, avoidance of environmental restoration costs, and increased property values and quality of life. For the most basic level of management, Model 1, the EPA recommends that financial assistance and funding activities by the regulatory authority be as follows: (source: EPA Voluntary National Guidelines for Management of Onsite and Clustered Wastwater Treatment Systems)
*Provide the legal and financial support to sustain the management program.
- Provide a listing of financial assistance programs available to Owner and the qualifying criteria for each program.
- Consider implementing a state or local financing program to assist Owners in upgrading their systems.
Below are several publications and web sites that discuss the various funding options from state and federal government sources.
- Paying for Onsite System Management (pdf) - This issue of Pipeline, published by the National Environmental Services Center at West Virginia University, discusses several ways communities fund onsite system management programs, such as loans, grants, bonds, and user fees.
- EPA Management Handbook (pdf) - A variety of financial assistance and funding mechanisms are also discussed in section 2.4.13 (pgs. 61-66) of EPA's Management Handbook.
- Funding Decentralized Wastewater Systems (pdf) - This EPA fact sheet discusses the Clean Water State Revolving Fund (CWSRF or SRF) that most people typically associate with centralized wastewater treatment facilities. Nonpoint source pollution projects, including onsite septic systems, are also eligible for CWSRF funds.
- South Carolina Clean Water State Revolving Fund - In South Carolina, the SRF program is administered by DHEC and the Budget and Control Board. Although the program is funding nonpoint source-related projects, it is not yet set up to be used for repairs/replacements to onsite septic systems. This possible use of SRF funds has been discussed with the DHEC SRF staff in Columbia. Thus far, they have suggested that the linked deposit approach (see article below) may be best for South Carolina. While DHEC-OCRM staff will continue to explore possible options thru DHEC's SRF program, local governments are encouraged also to pursue this source of funding for an onsite management program.
- Notes on SRF for Onsite Management (pdf) - Here is some additional information taken from EPA fact sheets and from personal contacts by OCRM staff.
- Ohio Provides A New Twist To The CWSRF Program (pdf) - This article (on page 22 in the Small Flows Quarterly) shows how Ohio established a linked deposit program to enable SRF funds to go directly from a lending institution to a homeowner, effectively eliminating the state or local government from having to make direct loans.
- University of North Carolina Environmental Finance Center - Serving the Southeast, the University of North Carolina Environmental Finance Center (UNC EFC) assists communities; provides training and policy analysis services; and disseminates tools and resources on topics such as environmental cost accounting, rate setting, and the development of sustainable cost recovery and institutional management systems. This website includes an interactive funding database.
- Southeast Rural Community Assistance Project (RCAP) (pdf) - The Small Community Wastewater Project is funded by the US EPA. The main aspects of this program include assisting communities in addressing regulatory concerns, small systems with operational problems, communities violating their discharge permits or communities needing to upgrade their wastewater collection treatment in order to meet the Clean Water Act. Emphasis is placed on the maintenance of decentralized sewer or cluster systems. Southeast RCAP has a Loan Fund Program in which you can apply for funding for infrastructure projects.