Administration says new resilience revolving fund will be modeled on SRFs and capitalized from existing trusts

During questioning, administration finance officials described the resilience revolving fund as a program modeled on the Clean Water and Drinking Water State Revolving Funds. Under that model the Clean Water Trust would administer loans while EEA would provide program management and align grant pipelines so shovel‑ready projects could access low‑cost financing.

Officials said initial capitalization would come from existing state trust funds rather than new fees or surcharges and that the bill allows flexibility to add other funding sources over time. They cited SRF leveraging—where initial public investment yields additional lending capacity—as a guiding principle and said capital markets options (special obligation bonds securitizing revenue streams) could be considered later after a multi‑year track record.

Legislators sought clarity on capitalization sources, eligibility (cities, towns, water/wastewater districts and tribal governments were listed), and the degree to which the fund would change project selection and affordability criteria. Officials pledged follow‑up details on capitalization and program rules to the committee.