U.S. Commission on Ocean Policy - Joint Ocean Commission Initiative

sources, such as industrial facilities and wastewater treatment plants, whose discharges canbe monitored as they emerge from the end of a pipe. Even so, opportunities remain tofurther reduce point source impacts on U.S. coastal waters and improve compliance withexisting environmental requirements.Existing Management ToolsPoint source pollution is primarily addressed through a few EPA programs, including theNational Pollutant Discharge Elimination System (NPDES), the Total Maximum DailyLoad (TMDL) Program, and the Clean Water State Revolving Fund.The National Pollutant Discharge Elimination SystemOver the past thirty years, the Clean Water Act, including its NPDES program, has led todramatic reductions of polluted effluents. EPA typically delegates administration of thisprogram to the states, and the state or EPA then regulates polluters by issuing permits thatreflect federal standards for discharges. If the regulatory agency determines that a particularwater body is not meeting water quality standards, permittees discharging to those watersmay be required to implement more stringent controls.The Total Maximum Daily Load ProgramThe TMDL program, which is carried out by states, territories, and authorized tribes withoversight and technical assistance from EPA, establishes the maximum amount of a pollutant,from point and nonpoint sources, that can be present in a water body while stillmeeting water quality standards. States must list waters that continue to exceed waterquality standards even after application of required levels of pollution control technology,and then establish TMDLs for these listed water bodies. States are directed to develop aTMDL for each pollutant of concern and then implement plans to achieve and maintainthose TMDLs by allocating reductions among all sources. EPA must review and approvestate lists and TMDLs. To include a margin of safety, states are required to take seasonalvariations into account.Clean Water State Revolving FundsUnder the Clean Water Act, the federal government has provided significant financialsupport for water quality infrastructure improvement. From 1970 to 1995, funding wasprovided under the Federal Construction Grants Program to build wastewater treatmentplants and collection systems, without any requirement for repayment. In 1987, in amajor shift in policy, Congress established and began to target federal funding toward theState Revolving Funds, in which the federal government provides capitalization grants fora more self-sustaining, state-administered revolving loan fund (Figure 14.3). States arerequired to provide 20 percent in matching funds. States decide which projects are thehighest priorities for funding, the borrowers repay the loans, and the program loans themoney again to other borrowers. States provide below-market interest rates and otherfinancial incentives to towns, counties, nonprofit organizations, farmers, and homeownersfor water quality improvement projects. The funds finance capital construction costs—notoperations and maintenance—and are mostly used to build or improve wastewater treatmentplants and related sewer systems.This program is widely considered a cost-effective, long-term mechanism for meetinginfrastructure demands. From 1998 to 2002, the funds provided an average of $3.8 billionper year for water quality improvement. Since the program’s inception, the federal government’sinvestment of $22.4 billion has resulted in a total of $43.5 billion being providedfor infrastructure projects. 1 State Revolving Funds are crucial to restoring, maintaining,and improving the nation’s water quality.C HAPTER 14: ADDRESSING C OASTAL WATER P OLLUTION207