[Federal Register Volume 65, Number 199 (Friday, October 13, 2000)]
[Notices]
[Pages 60940-60945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26353]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[FRL-6884-7]


Transfer and Cross-Collateralization of Clean Water State 
Revolving Funds and Drinking Water State Revolving Funds

AGENCY: Environmental Protection Agency.

ACTION: Policy statement.

-----------------------------------------------------------------------

SUMMARY: Enactment of the Safe Drinking Water Act (SDWA) Amendments of 
1996 and the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act of Fiscal Year 
1999, (Appropriations Act) provide flexibility to States for both their 
drinking water and wastewater needs. The SDWA Amendments established 
the Drinking Water State Revolving Fund (DWSRF) and also contain a 
provision authorizing States to transfer funds between the DWSRF and 
the Clean Water State Revolving Fund (CWSRF). Congress also created 
additional flexibility by authorizing a form of cross-collateralization 
in the Appropriations Act. With proper planning, priority setting, and 
public disclosure, these two provisions can assist the States in 
maximizing their infrastructure funding programs by increasing the 
availability of funds where they are most needed, enhancing bond 
ratings, and lowering borrowing costs without increasing risks.
    Since there are similarities between the two SRF programs, the 
Environmental Protection Agency (EPA) intends to administer the two 
programs in a similar manner in regard to transfers and cross-
collateralization. Requirements regarding transfer and cross-
collateralization of funds are contained in EPA's Interim Final Rule, 
Drinking Water State Revolving Funds (see 65 FR 48286). This policy 
establishes EPA policy regarding the use of these two provisions in 
funding DWSRF and CWSRF projects. It identifies the process a State 
must undergo to gain EPA approval for incorporating transfers and/or 
cross-collateralization into its SRF program.

DATES: This policy statement is effective October 13, 2000.

FOR FURTHER INFORMATION CONTACT: For technical inquiries, contact 
Sheila Platt, State Revolving Fund Branch, Municipal Support Division, 
Office of Wastewater Management (MC-0064204), U.S. Environmental 
Protection Agency, Ariel Rios Building, 1200 Pennsylvania Avenue, NW.,

[[Page 60941]]

Washington, DC 20460. The telephone number is (202) 260-7376 and the e-
mail address is [email protected]. Copies of this document can be 
obtained from EPA's Office of Wastewater Management website at 
www.epa.gov/owm/finan.html.

SUPPLEMENTARY INFORMATION:

Background

    Section 302 of the SDWA Amendments authorizes a State to transfer 
up to 33 percent of the amount of a fiscal year's DWSRF program 
capitalization grant to the CWSRF program or an equivalent amount from 
the CWSRF program to the DWSRF program. The Fiscal Year 1999 
Appropriations Act (Public Law 105-276) authorizes cross-
collateralization between the DWSRF and CWSRF programs.
    EPA released a draft policy entitled ``Transfer/Cross-
collateralization Policy for the DWSRF and CWSRF'' in June 1998 which 
specified the provisions that States must meet in order to gain EPA 
approval for incorporating transfers and cross-collateralization 
provisions into their programs. The draft policy has been used for the 
past two years for review and approval of State transfer and cross-
collateralization proposals. The policy was developed with substantial 
review and comment from EPA Regional staff, national stakeholder 
organizations, and a State/EPA SRF Work Group comprised of State DWSRF 
managers, State CWSRF managers, and managers of State financial 
agencies. The only major comment received pertained to extending the 
September 30, 2001 sunset date for transfers. EPA will recommend to 
Congress that the sunset date for transfers be dropped. This policy 
statement includes the transfer and cross-collateralization 
requirements for both the DWSRF and the CWSRF programs.

    Dated: October 5, 2000.
J. Charles Fox,
Assistant Administrator, Office of Water.

Transfer and Cross-Collateralization of Clean Water State Revolving 
Funds and Drinking Water State Revolving Funds

Table of Contents

I. Transfers
    A. Statutory Authority
    1. Authorized Time Period
    2. Transfer Ceiling
    B. Transfer Flexibility
    1. Transfer Funds
    2. Timely and Expeditious Use
    3. Expiration of Authority to Reserve or Transfer
    4. Transferring on Net Basis
    C. State Match, Set-asides, Administrative Ceiling and 604(b) 
Calculation
    1. State Match
    2. DWSRF Set-asides
    3. CWSRF Administrative Ceiling and 604(b) Calculation
    D. Project Funding for Small Systems
    E. Intended Use Plan and Operating Agreement
    1. Intended Use Plan
    2. Operating Agreement
    F. Transferring Federal Funds and State Match Funds
    1. Payment Schedule/Grant Amendments
    2. Cash Draw Proportionality
    3. Binding Commitments
    4. Cross-cutting Federal Authorities
    G. Transferring Other Funds
    H. Reporting, Monitoring and Review
II. Cross-Collateralization
    A. Authorization
    B. Purpose
    C. Legislative Authority
    D. Operating Agreement and Intended Use Plan
    E. Revenues from the Bonds
    F. State Match
    G. Operation of SRF Programs

I. Transfers

A. Statutory Authority

    Section 302 of the Safe Drinking Water Act (SDWA) Amendments of 
1996 offers States the flexibility to transfer funds from one SRF 
program to the other. The transfer provision reads as follows:

    Sec. 302. Transfer of Funds.
    (a) In General.--Notwithstanding any other provision of law, at 
any time after the date 1 year after a State establishes a State 
loan fund pursuant to section 1452 of the Safe Drinking Water Act 
but prior to fiscal year 2002, a Governor of the State may--(1) 
reserve up to 33 percent of a capitalization grant made pursuant to 
such section 1452 and add the funds reserved to any funds provided 
to the State pursuant to section 601 of the Federal Water Pollution 
Control Act (33 U.S.C. 1381); and (2) reserve in any year a dollar 
amount up to the dollar amount that may be reserved under paragraph 
(1) for that year from capitalization grants made pursuant to 
section 601 of such Act (33 U.S.C. 1381) and add the reserved funds 
to any funds provided to the State pursuant to section 1452 of the 
Safe Drinking Water Act.
    (b) REPORT.--Not later than 4 years after the date of enactment 
of this Act, the Administrator shall submit a report to Congress 
regarding the implementation of this section, together with the 
Administrator's recommendations, if any, for modifications or 
improvement.
    (c) STATE MATCH.--Funds reserved pursuant to this section shall 
not be considered to be a State match of a capitalization grant 
required pursuant to section 1452 of the Safe Drinking Water Act or 
the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).

    Section 302 states that the governor of a State can reserve up to 
33% of its DWSRF capitalization grant for transfer to its CWSRF or an 
equivalent amount from its CWSRF to its DWSRF. Therefore, a State has 
the flexibility to prioritize its funding where it has the greatest 
need.
    Both the CWSRF and the DWSRF programs require that an Attorney 
General's opinion certifying that the SRF program is consistent with 
State law be submitted with each capitalization grant application. If a 
State receives a capitalization grant and later decides to transfer 
funds, the capitalization grant agreement must be amended and an 
Attorney General's opinion must be submitted certifying that State law 
permits the State to transfer funds. Transfers must be made by the 
Governor or by a State official acting pursuant to authorization from 
the Governor.
1. Authorized Time Period
    Funds may be reserved and transferred only during a limited time 
period:
    a. CWSRF or DWSRF funds may be transferred after one year has 
elapsed since a State establishes its DWSRF Fund (i.e., the date of the 
first DWSRF capitalization grant awarded to the State for projects), 
and may include an amount equal to the allowance associated with its 
fiscal year 1997 capitalization grant. For example, if a DWSRF Fund is 
established on October 31, 1997 with the award of a capitalization 
grant for project funds, the first day funds can be transferred is 
November 1, 1998.
    b. Funds may only be transferred ``prior to fiscal year 2002'' 
(October 1, 2001).
2. Transfer Ceiling
    The amount of the total DWSRF capitalization grant, including any 
portion awarded for set-aside activities, determines the amount of 
funds that can be reserved and transferred.
    a. The Governor of a State may reserve an amount equal to 33% of 
the DWSRF capitalization grant and transfer the funds to the CWSRF.
    b. The Governor may reserve funds from the CWSRF in an amount equal 
to no more than 33% of the DWSRF capitalization grant and transfer 
those funds to the DWSRF.

B. Transfer Flexibility

1. Transfer Funds
    Based on section 302 of the SDWA, the DWSRF capitalization grant 
the State is basing the transfer amount on must have been awarded prior 
to the transfer of any funds. Section 302 does not limit the transfer 
of funds to Federal capitalization grant dollars. States may

[[Page 60942]]

transfer Federal capitalization grant dollars, State match, investment 
earnings, or principal and interest repayments. When CWSRF Federal 
funds are transferred, the CWSRF capitalization grant must also have 
been awarded prior to the transfer of funds. As part of the transfer 
process, States must identify in both the CWSRF and DWSRF Intended Use 
Plans (IUPs) that funds will be transferred, the type of funds to be 
transferred (Federal capitalization grant dollars, State match, 
investment earnings, etc.), and the effect that transfers will have on 
the program's ability to fund projects. States may elect to reserve the 
authority to transfer funds in one year, but not actually transfer 
those funds until a later time, but no later than fiscal year 2001 (see 
Table #1).
2. Timely and Expeditious Use
    Reserving the authority to transfer funds at a future date is not 
reserving the actual cash, but is a ``credit'' for future transfer. 
Funds must still be used for project or set-aside activities during the 
time period prior to when the actual transfer occurs. States may then 
transfer other moneys present in the respective SRF at the time of the 
transfer.
3. Expiration of Authority to Reserve or Transfer
    Funds may not be reserved or transferred after September 30, 2001.
4. Transferring on Net Basis
    Moneys may be transferred between the SRF programs on a net basis 
provided that the 33% ceiling is maintained. Once money has been 
transferred, even if the donor SRF reaches the 33% limit, it may still 
be transferred back to the donor SRF from the receiving SRF by a 
subsequent transfer. Table #2 shows the effect of multiple 
capitalization grants of $100 each and transfers between the SRF 
programs.
    Another example is a situation where State law does not allow State 
funds to be used to fund private water systems in the State's DWSRF 
program. In this case, the State may designate that it will transfer 
State match funds from the DWSRF to the CWSRF and Federal funds, equal 
to the State match amount, from the CWSRF to the DWSRF. Since the 
dollar amounts of these transfers are equal, there is no effect on the 
amount available to transfer. Table #3 illustrates this example.

C. State Match, Set-asides, Administrative Ceiling and 604(b) 
Calculation

    Transfers do not impact the State match calculation in the 
capitalization grants, the set-asides calculations in the DWSRF, or the 
4% administration and 604(b) calculations in the CWSRF.
1. State Match
    In both SRF programs, the State match requirement is 20% of the 
capitalization grant. Transfers do not affect the calculation of those 
required amounts in either program. Section 302 of the SDWA stipulates 
that funds transferred under this provision cannot be considered the 
required State match for the capitalization grant in either SRF 
program. The transfer provision cannot be used to acquire State match. 
Transferred funds cannot be used for the purposes of securing or 
repaying State match bonds.
2. DWSRF Set-asides
    Since set-aside ceilings in the DWSRF are calculated based on the 
allotment or the capitalization grant, the ceilings are not 
recalculated as a result of transferring funds.
3. CWSRF Administrative Ceiling and 604(b) Calculation
    The 4% administrative ceiling is not calculated using transferred 
amounts. The calculation of the 4% is based upon the initial 
capitalization grant. The 604(b) funds are calculated on the allotment.
    The following example illustrates the fact that a transfer will 
have no impact on State match, the DWSRF set-asides, the CWSRF 
administrative ceiling, and the CWSRF 604(b) calculation. The CWSRF 
capitalization grant is $10,000,000 and the State match is $2,000,000. 
The DWSRF capitalization grant is $10,000,000 and the State match is 
$2,000,000. The State has determined it will use 31% of the 
capitalization grant for set-aside activities. The State also decided 
to transfer $3,000,000 from the CWSRF to the DWSRF for additional SDWA 
project activities. After the transfer, the State match for each SRF 
program ($2,000,000) remains unchanged because the CWSRF and DWSRF 
State match is based upon the initial capitalization grants. The DWSRF 
set-aside calculation does not change ($3,100,000) because the set-
asides are based upon the initial capitalization grant amount and/or 
the allotment. The CWSRF 4% administrative ceiling remains at $400,000 
and 604(b) is still calculated at $100,000.

D. Project Funding for Small Systems

    Transfers into or out of the DWSRF Fund could impact loan 
assistance for small systems that serve fewer than 10,000 persons. The 
SDWA requires that a State use a minimum of 15 percent of all dollars 
credited to the Fund to provide loan assistance to small public water 
systems to the extent such funds can be obligated for eligible projects 
of public water systems. Accordingly, 15 percent of all dollars 
transferred into the DWSRF Fund must also be used in accordance with 
the small systems provision of the SDWA.

E. Intended Use Plan and Operating Agreement

1. Intended Use Plan
    States must develop an annual IUP for each SRF program for public 
review and comment that includes a description of the funds to be 
reserved and/or transferred and how those funds will be used. The IUPs 
must disclose how and why the decisions to transfer funds were made. 
EPA encourages States to include a discussion of wastewater and 
drinking water needs to show the public that the highest priorities are 
being funded. The IUP must provide sufficient information regarding 
transfers for the public to understand:
    a. The total amount of authority being reserved for future transfer 
including the authority from previous years;
    b. The total amount and type of funds being transferred during the 
term of the IUP;
    c. The impact on the current year's Fund and set-asides; and
    d. The long-term impact on the Fund.
    Both CWSRF and DWSRF IUPs must be amended if a mid-year transfer is 
to occur that has not had prior disclosure to the public. For example, 
the State received its DWSRF capitalization grant in June 1998 and 
subsequently decides to transfer funds to its CWSRF. Because the 
current year IUPs did not contain information concerning transfers, the 
IUPs must be amended (and capitalization grants if transferring federal 
dollars) and distributed for public review and comment in accordance 
with the State procedures established for amending IUPs.
2. Operating Agreement
    When a State initially decides to include the ability to transfer 
in its program, the Operating Agreement must be amended to include the 
method the State will use to transfer funds.

[[Page 60943]]

F. Transferring Federal Funds and State Match Funds

    Because transfers can complicate the analysis of whether a State is 
complying with the proper payment schedule, binding commitments, and 
cross-cutting Federal authorities, the State must identify whether the 
transferred amount consists of dollars on which these requirements will 
apply or other dollars. The State must maintain sufficient procedures 
to ensure proper accounting for transferred dollars.
1. Payment Schedule/Grant Amendments
    If a State decides to transfer Federal funds subsequent to 
establishing a payment schedule, a revised payment schedule will be 
necessary. Changes to the payment schedule will be effected through an 
amendment to the grant agreement.
2. Cash Draw Proportionality
    Transfers of Federal capitalization dollars or State match dollars 
will impact cash draw proportionality. Please refer to the ``Guide to 
Using EPA's Automated Clearing House for the Drinking Water State 
Revolving Fund Program'' (EPA-832-B98-003) published in September 1998 
for details concerning recalculating proportionality.
3. Binding Commitments
    When Federal funds or State match funds are transferred from one 
SRF program's Fund into the other SRF program's Fund, the State must 
enter into binding commitments in the receiving SRF program for the 
transferred amount within one year after receipt of payment or, if 
payment has already been taken, within one year of the transfer date, 
in addition to the binding commitments required for its capitalization 
grant and State match. If funds are transferred from the CWSRF to the 
set-aside account in the DWSRF, the binding commitment requirement on 
the amount transferred will not apply. The donor SRF program will not 
be required to enter into binding commitments on the transferred funds.
4. Cross-cutting Federal Authorities
    Cross-cutting Federal authorities apply to transferred Federal 
funds in the same manner as they apply to the capitalization grant 
funds in the receiving SRF program.

G. Transferring Other Funds

    Since transfers do not relieve the State from complying with those 
requirements that apply to the amount of the capitalization grant, the 
State should consider transferring principal and interest repayments 
and investment earnings rather than transferring Federal and State 
match funds. Grant amendments, binding commitment requirements and 
cross-cutters, except for civil rights, do not apply to transferred 
funds consisting of repayments of principal and interest, and 
investment earnings. Also, cash draw proportionality will not be 
impacted by transfers of repayment funds and investment earnings. 
Please refer to the ``Guide to Using EPA's Automated Clearing House for 
the Drinking Water State Revolving Fund Program.''

H. Reporting, Monitoring and Review

    A State must report transfers in the DWSRF Biennial Report and in 
the CWSRF Annual Report. The reports must identify the amount of funds 
transferred from one SRF program to the other and how those funds were 
used. Since the State must be able to track all transfers, a schedule 
of actual transfers must be included in the reports which can be 
reconciled with the schedule of expected transfers in the IUP. A State 
must also explain reasons that funds were not transferred in accordance 
with the plan described in the IUP, including the impact on the SRF 
programs.
    The State must also report transfers in the financial statements of 
the SRF programs with corresponding footnotes explaining the type of 
funds transferred (Federal dollars, State match, principal and interest 
repayments, or investment earnings).

II. Cross-Collateralization

A. Authorization

    The Departments of Veteran Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act of Fiscal Year 
1999 (Public Law 105-276) authorizes cross-collateralization between 
the DWSRF and the CWSRF programs. The language included in the law in 
regard to cross-collateralization is as follows:

    * * * Provided, That, consistent with section 1452(g) of the 
Safe Drinking Water Act (42 U.S.C. 300j-12(g)), section 302 of the 
Safe Drinking Water Act Amendments of 1996 (Public Law 104-182) and 
the accompanying joint explanatory statement of the committee on 
conference (H. Rept. No. 104-741 to accompany S. 1316, the Safe 
Drinking Water Act Amendments of 1996), and notwithstanding any 
other provision of law, beginning in fiscal year 1999 and 
thereafter, States may combine the assets of State Revolving Funds 
(SRFs) established under section 1452 of the Safe Drinking Water 
Act, as amended, and title VI of the Federal Water Pollution Control 
Act, as amended, as security for bond issues to enhance the lending 
capacity of one or both SRFs, but not to acquire the State match for 
either program, provided that revenues from the bonds are allocated 
to the purposes of the Safe Drinking Water Act and the Federal Water 
Pollution Control Act in the same portion as the funds are used as 
security for the bonds * * *

B. Purpose

    The drinking water and wastewater community has advocated cross-
collateralization to increase the financing flexibility of the CWSRF 
and the DWSRF. For States which issue bonds, the added security 
provided by the strength of the CWSRF will enhance the funding capacity 
in the DWSRF by achieving better bond ratings. Funds from one SRF 
program can be used to secure the other SRF program against a default.

C. Legislative Authority

    The CWSRF and the DWSRF programs require that an Attorney General's 
opinion certifying that the SRF program is consistent with State law be 
submitted with each capitalization grant application. If a State 
receives a capitalization grant and later decides to cross-
collateralize, the capitalization grant agreement must be amended and 
an Attorney General's opinion must be submitted certifying that State 
law permits the State to cross-collateralize.

D. Operating Agreement and Intended Use Plan

    When a State initially decides to include cross-collateralization 
in its program, the Operating Agreement must be amended to detail how 
cross-collateralization will be implemented. The State must annually 
include in the IUP for each SRF program a description of how cross-
collateralization will be used, and provide the IUPs to the public for 
review and comment prior to submitting them to the Region as part of 
the capitalization grant applications. The IUPs must, at a minimum, 
describe:
    a. the type of moneys which will be used as security;
    b. how moneys will be used in the event of a default;
    c. whether or not moneys used for a default in the other program 
will be repaid; and, if it will not be repaid, what will be the 
cumulative impact on the Funds.

E. Revenues From the Bonds

    The proceeds generated by the issuance of bonds must be allocated 
to the purposes of the DWSRF and the CWSRF in the same proportion as 
the assets from the two Funds that are used as security for the bonds. 
States must

[[Page 60944]]

demonstrate that at the time of bond issuance, the proportionality 
requirements have been or will be met. If a default should occur, and 
Fund assets from one SRF program are used for debt service in the other 
SRF program, the security would no longer need to be proportional.
    Proportionality may be achieved at different levels of security. A 
State may achieve proportionality at the debt service reserve level. If 
the debt service reserve is the primary security and consists of 35% 
DWSRF funds and 65% CWSRF funds, the bond proceeds must be allocated 
35% to DWSRF purposes and 65% to CWSRF purposes.
    A State may also achieve proportionality by requiring that loan 
repayments on loans made from the CWSRF are pledged, as the primary 
security, only to the CWSRF bonds (or portion of a joint bond issue) 
and loan repayments on loans made from the DWSRF are pledged, as the 
primary security, only to the DWSRF bonds (or portion of a joint bond 
issue). If principal forgiveness is used as a subsidy for disadvantaged 
communities funded with bond proceeds in the DWSRF program, this option 
may not be used since the security would be disproportionate to the 
security provided by the CWSRF program.
    The above are only two examples which can be used to maintain the 
proportionality of the security for bonds. There may be other options 
the State will want to explore and submit for EPA approval.

F. State Match

    States may not combine the assets of the SRF programs as security 
for bond issues to acquire State match for either program. States may 
not use the assets of one SRF program to secure match bonds of the 
other SRF program.

G. Operation of SRF Programs

    States may use, in combination, the assets of the SRF programs as 
security for bond issues. However, the CWSRF and DWSRF must each 
continue to be operated separately. States must maintain records so 
that, for each SRF program, separate financial statements can be 
compiled and separate financial audits can be conducted. The debt 
service reserve and interest earned thereon for the DWSRF program and 
the CWSRF program must each be accounted for separately. Repayments on 
loans in the CWSRF program must be paid to the CWSRF and repayments on 
loans made in the DWSRF program must be paid to the DWSRF.
    Cross-collateralization does not effect the calculation of set-
asides, the 4% administrative ceiling and binding commitments. Payments 
and cash draw proportionality may be affected if there are defaults. 
The CWSRF Annual Report and the DWSRF Biennial Report must describe the 
use of assets of the SRF programs as security for bond issues and any 
use of moneys from one SRF program by the other as a result of cross-
collateralization.

                       Table 1.--Reserving the Right (Banking) to Transfer in Future Years
----------------------------------------------------------------------------------------------------------------
                                                                              Amount
                                                                DWSRF        reserved      Banked       Amount
                           Year                            capitalization      for        transfer   transferred
                                                                grant        transfer     ceiling
----------------------------------------------------------------------------------------------------------------
1997.....................................................           $100           $33          $33          $00
1998.....................................................            100            33           66           00
1999.....................................................            100            33           99           00
2000.....................................................            100            33          132           00
2001.....................................................            100            33          165          165
2002.....................................................            100        \1\ 00       \1\ 00       \1\ 00
                                                          ------------------------------------------------------
    Total................................................            600           165  ...........         165
----------------------------------------------------------------------------------------------------------------
\1\ No funds may be reserved or transferred after fiscal year 2001.


                                      Table 2.--Transferring on a Net Basis
  [In this example, the DWSRF capitalization grant in each year is $100. Therefore, the transfer ceiling is $33
            for the first year, increasing to $66 in the second year and $99 in the third year, etc.]
----------------------------------------------------------------------------------------------------------------
                                                                                          CW funds     DW funds
                                  Transaction       Banked    Transferred  Transferred   available    available
             Year                 description      transfer   from CWSRF-  from DWSRF-      for          for
                                                   ceiling       DWSRF        CWSRF       transfer     transfer
--------------------------------------------------------------------------------------------\1\----------\1\----
1997.........................  CG Award........          $33  ...........  ...........      \2\ $33     \2\ $332
1998.........................  CG Award........           66  ...........  ...........           66           66
1998.........................  Transfer........           66           20  ...........           46           86
1999.........................  CG Award........           99  ...........  ...........           79          119
1999.........................  Transfer........           99  ...........           86          165           33
1999.........................  Transfer........           99           90  ...........           75          123
2000.........................  CG Award........          132  ...........  ...........          108          156
2000.........................  Transfer........          132  ...........           50          158          106
2001.........................  CG Award........          165  ...........  ...........          191          139
2001.........................  Transfer........          165          191  ...........            0          330
2002.........................  CG Award........            0  ...........  ...........            0           0
----------------------------------------------------------------------------------------------------------------
\1\ The maximum either SRF can transfer as the result of banking and previous transfers.
\2\ Transfers cannot occur until one year after the DWSRF has been established.


[[Page 60945]]


                                                     Table 3
----------------------------------------------------------------------------------------------------------------
                                                              Transferred  Transferred    CW Funds     DW Funds
                                  Transaction       Banked    from CWSRF-  from DWSRF-   available    available
             Year                 description      transfer      DWSRF        CWSRF         for          for
                                                   ceiling     (Federal)     (State)      transfer     transfer
--------------------------------------------------------------------------------------------\1\----------\1\----
1997.........................  CG Award........          $33  ...........  ...........          $33          $33
1998.........................  CG Award........           66  ...........  ...........           66           66
1998.........................  Transfer........           66          $40          $40           66          66
----------------------------------------------------------------------------------------------------------------
\1\The maximum either SRF can transfer as the result of banking and previous transfers.

[FR Doc. 00-26353 Filed 10-12-00; 8:45 am]
BILLING CODE 6560-50-P