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Water: Clean Water Financing

NPDES Voluntary Permit Fee Incentive for Clean Water Act Section 106 Grants, Allotment Formula

 Withdrawal of NPDES Voluntary Permit Fee Rule
On April 9, 2009, EPA signed the withdrawal of NPDES Voluntary Permit Fee Incentive for Clean Water Act Section 106 (S106) Grants; Allotment Formula rule. The Agency issued the rule on September 10, 2008, but EPA reconsidered its approach based on concerns raised by the affected states. Any funds that would have been used for incentive purposes will instead be allocated to states under an existing grant formula.

EPA continues to support permit fees as a prudent source of income to help states fund water quality programs. By establishing appropriate permit fees, states can better manage and budget for environmental programs by having permitees pay for all or a portion of the cost of a state's permit program. EPA will continue to encourage states to establish and expand their permit fee programs.

Federal Register Notice - Withdrawal of NPDES Voluntary Permit Fee Incentive Rule (PDF)(3pp, 139KB) About PDF Files

Final NPDES Voluntary Permit Fee Rule

The NPDES Voluntary Permit Fee Incentive for Clean Water Act Section 106 (S106) Grants; Allotment Formula rule provides financial incentives to States to utilize an adequate fee program when implementing an authorized NPDES permit program. This incentive gives EPA the flexibility to allot up to three percent of Congressionally appropriated CWA S106 State water quality program funds to States that have adequate NPDES permit fee programs.

The rule provides a monetary incentive for States to implement adequate NPDES fee programs, moving them toward greater sustainability in the way they manage and budget for environmental programs, and shifting part of the financial burden to those who benefit from NPDES permits. Funding permit programs with the support of permit fees also allows States to use CWA S106 funds for other critical water quality programmatic activities.

Final Rule State Guidance Proposed Rule How to Get Additional Information

For questions about this rulemaking, please contact Robyn Delehanty (delehanty.robyn@epa.gov) 202 564-3880. Copies of the rule may be downloading from the link above.


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