The city of Holyoke, Mass., is facing a $157,500 penalty for alleged Clean Water Act violations.

The U.S. Environmental Protection Agency is seeking the penalty in an administrative complaint that claims the city discharges as much as 500 million gallons of wastewater annually into the Connecticut River. The discharges allegedly are the result of combined sewer overflows from the city´s inadequate sewer system.

The EPA claims pathogens in untreated sewage in the overflows are making the river unsafe for recreational use. The city has not responded promptly to five EPA orders directing it to reduce the overflows, the agency alleges.

Holyoke also has failed to come up with a way to finance improvements to its sewer system. Federal funds are available to the city through a revolving loan program, but the city has not developed a way to pay costs that may exceed the amount of the loans.