WASHINGTON, D.C.—The U.S. Environmental Protection Agency (EPA) is issuing a new rule that will provide financial incentives for states to use fees when administering a clean water permit program. EPA can give as much as $5.1 million to states that have adequate permit fees for their National Pollutant Discharge Elimination System (NPDES) programs.

This rule is designed to encourage states to implement adequate fee programs voluntarily and shift part of the financial burden to those who benefit from the permits. It will also allow states to move funds to other critical water quality program activities. The increased cost of administering water permit programs has already prompted some states to implement permit fee programs to cover some costs. A number of states, however, still operate with little or no reliance on permit fees.

The permit fee incentive will only be made available if federal funding for state water pollution control programs is more than the fiscal year 2008 level. Therefore, state grants will not decrease as a result of this rulemaking. The rule will be in effect for the fiscal year 2009 grant cycle and beyond.

More information about the Water Pollution Control Program Grants is available online at www.epa.gov/owm/cwfinance/npdes-permit-fee.htm.