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Copyright 1999 Federal News Service, Inc.  
Federal News Service

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APRIL 28, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 2162 words

HEADLINE: PREPARED TESTIMONY OF
DIAN VANDE HEI
EXECUTIVE DIRECTOR
THE ASSOCIATION OF METROPOLITAN WATER AGENCIES
BEFORE THE HOUSE APPROPRIATIONS COMMITTEE
VA, HUD AND INDEPENDENT AGENCIES SUBCOMMITTEE
SUBJECT - THE U.S. ENVIRONMENTAL PROTECTION AGENCY'S
FISCAL YEAR 2000 BUDGET

BODY:

Introduction
The Association of Metropolitan Water Agencies (AMWA) is a non-profit organization composed of the nation's largest, publicly owned and municipal drinking water suppliers. Member agencies are represented by their directors and managers and supply clean, safe drinking water to nearly 100 million Americans.
AMWA member agencies are regulated by the Environmental Protection Agency (EPA) under the Safe Drinking Water Act (SDWA) and other statutes. As an association devoted to the protection of public health through the provision of safe, high quality drinking water, AMWA strongly supports adequate levels of funding for EPA's drinking water and ground water programs. The association sincerely appreciates this opportunity to testify before the subcommittee.
Request Overview
More than ever before, the public is keenly aware of how Federal, State and local governments spend their limited resources. The Federal government, by making its regulatory requirements cost effective and based on sound science, can help to make State and local dollars go farther and assure the public that the benefit they receive is worth the cost they are asked to pay. Indeed through modest expenditures, the Federal government can deliver significant benefits to the public.
This request outlines six such investments. AMWA's specific recommendations are:
- Health effects research: appropriate EPA's $41.4 million budget request. Request information from the agency regarding funding to conduct health effects research on future contaminants as required under the 1996 Amendments to the Safe Drinking Water Act.
- Provide $4 million for the American Water Works Research Foundation, including $1 million for continued research on arsenic.
- Provide $2 million for perchlorate research.
- EPA's Drinking Water Program: meet EPA's $47.8 million request ($43.9 for regulatory development and $3.9 million for data management program development).
- State primacy grants (Public Water System Supervision Program Grants): fund the program at the authorized level of $100 million.
- Drinking Water State Revolving Fund: fund the program at the authorized level of $1 billion.
Background
Drinking water is universally recognized as a central element in the health and wellbeing of the American people. Furthermore safe, clean drinking water is a key component in the economic health of our communities. Through advanced research and technological capacity, Americans enjoy the safest drinking water in the world. To ensure the continued safety of the nation's drinking water supply, in 1974 Congress passed the Safe Drinking Water Act. The Act was most recently amended in 1996. When enacting the statute, Congress decided it was the federal government's responsibility to set national drinking water standards, to establish time frames for compliance and to oversee how States implement drinking water programs.
Health Effects Research
In 1996 Congress established a new way for EPA to develop regulations by requiring a new focus on good science, which includes an increased reliance on health effects research. In section after section, the Safe Drinking Water Act Amendments of 1996 call on EPA to approach regulatory decision making differently. The statute requires the agency to utilize health effects data to identify contaminants for future regulation and for setting drinking water goals and standards. And for the first time, the law gives EPA the discretion to consider risk trade-offs and to set standards based on such data.
Contaminant Candidate List (CCL) In August 2001 - 27 months from now - EPA will select at least five unregulated contaminants and determine whether to regulate them. EPA may choose from a list of 60 contaminants that comprise the Contaminant Candidate List (CCL). According to the 1996 Amendments, the agency must undertake the same process every five years. To determine whether regulation is necessary and then to determine how to regulate, EPA will rely on health effects research.
Recognizing the serious burden this regulatory mandate presents, the drinking water community has offered its time, resources and expertise to work with EPA to develop a research plan to look at the contaminants on the CCL. We have volunteered to cooperatively sponsor a workshop to produce a coordinated report and research strategy. If EPA agrees to our offer, we anticipate returning to this subcommittee with EPA to jointly recommended appropriate funding levels next fiscal year.
Microbial Contaminants, Disinfectants and Disinfection By-products Beyond the research needed to satisfy CCL requirements, funds are needed to expand the scientific community's understanding of the health effects of microbial contaminants, disinfectants and disinfection by-products and the effects of contaminants on sensitive subpopulations, such as children, the elderly, pregnant women and immuno-compromised individuals. Through disinfection, water suppliers are able to control microbial contamination in drinking water, but the process can produce chemical by-products that may be human carcinogens or may cause other toxic effects. The Centers for Disease Control, the National Academy of Sciences and EPA's Science Advisory Board have all noted extensive research is needed in these areas. Without substantial investments on an annual basis, Congress, EPA, States and drinking water suppliers cannot assure American consumers that contaminants selected for regulation are the appropriate ones or that drinking water standards have been adequately established.
EPA-AWWARF Research The American Water Works Association Research Foundation (AWWARF) is an organization dedicated to conducting much needed research to satisfy research needs expressed by EPA and the drinking water community. Like other drinking water associations, AMWA strongly supports the Foundation and its research efforts. Last fiscal year, Congress provided $4 million to AWWARF. The drinking water community matched that amount with $10.5 million in cash. Over the last 15 years, water suppliers and EPA have worked well together, with water suppliers putting up $115 million in cash and in kind resources.


AMWA recommends providing $3 million for fiscal year 2000 for EPA- AWWARF research partnerships, with the nation's drinking water suppliers matching those dollars. In addition, AMWA recommends that the subcommittee set-aside $1 million for AWWARF to support the Arsenic Research Partnership.
Arsenic Research Partnership The National Research Council (NRC) recently released a report recommending EPA revise the drinking standard for arsenic by lowering the maximum contaminant level from 50 parts per billion. The NRC also recommended that EPA improve its arsenic toxicity analysis and risk characterization; conduct additional human studies; identify proximate markers of arsenic-induced cancers; and provide wider safety margins.
In addition the NRC recommended that additional epidemiological evaluations be conducted to characterize the dose-response relationship for arsenic and develop a better understanding of the mechanism, and mode of action by which organic arsenic causes toxicity and cancer.
EPA has outlined a research agenda to explore and reduce these uncertainties, and AMWA strongly supports these efforts. In fiscal year 1999, Congress provided $1 million in arsenic research funding through the Arsenic Research Partnership, which includes AWWARF, the Association of California Water Agencies and the EPA.
AMWA recommends again providing $1 million (as part of the $4 million requested for AWWARF) for fiscal year 2000 specifically for the Arsenic Research Partnership. As in the past, the funding would be matched by individual drinking water suppliers.
Perchlorate Research Research is ongoing to a relatively new contaminant called perchlorate, a rocket fuel component found in water supplies in California and Nevada. There is no known way to remove the contaminant from water supplies, and water suppliers are concern that it will begin to show up in other locations in the country. The research is taking place at the East Valley Water District in San Bernandino, California. AWWARF is managing the funds. Last fiscal year, Congress appropriated $1.8 million. For fiscal year 2000, we request $2 million to continue the research. Water suppliers believe that research now will prevent perchlorate from becoming a major problem in the future.
EPA's Drinking Water Program EPA's drinking water program continues to implement the 1996 Amendments. This has involved instituting a new regulatory regime and developing programs to oversee consumer confidence report requirements; monitoring relief; source water delineations, assessments and protection; operator certification requirements; microbial and disinfection by-product standards; new treatment technologies; and the first ever Drinking Water State Revolving Fund. In addition, EPA is constructing a contaminant occurrence data base to support future regulatory decision making.
AMWA recommends that Congress meet EPA's fiscal year 2000 budget request of $47.8 million to implement the Safe Drinking Water Act and other responsibilities in the drinking water program.
State Primacy Grants
To comply with the Safe Drinking Water Act, Congress intended that EPA develop drinking water regulations and that the states administer the program to ensure compliance with, and enforcement of, its provisions. Administration, compliance, and enforcement activities are collectively known as "primacy" requirements, and federal grants to the states are known as Public Water Supply Supervision (PWSS) Grants. States are charged with delineating and assessing their rivers and streams to better protect sources of drinking water, overseeing the new consumer confidence regulations, and carrying out the new drinking water state revolving fund program. These and other new programs run by the states are integral to the effective delivery of safe, clean drinking water. As federal requirements increase, state resource shortfalls become more acute, and states are too often threatened with the loss of primacy. Should funding shortfalls occur, public health protections could suffer a major setback.
According to the Association of State Drinking Water Administrators, states must implement more than 20 new rules over the next five years. Meanwhile, there are dozens of ongoing programmatic responsibilities. Together, these requirements present an enormous burden for state government to support.
Recognizing this burden, Congress - with the support of EPA and other stakeholders authorized $100 million per year for the PWSS program, yet for the fourth year in a row, the EPA has only requested 90 percent of the authorization.
AMWA recommends Congress fund the Public Water System Supervision Program Grants at the authorized level of $100 million to ensure SDWA mandates are satisfied.
Drinking Water State Revolving Fund
In 1997, EPA presented to Congress a report of drinking water systems' infrastructure needs and identified $138.4 billion in needs over a twenty-year period. Nearly $76.8 billion was identified as needed in the short term. The share for large systems like those who comprise AMWA's membership is $58.5 billion, and $10.2 billion is needed immediately to protect water from microbial contaminants that could cause death or illness.
Other experts dispute EPA's needs assessment. Some put the infrastructure needs for distribution systems alone at $325 billion. This does not include treatment facilities.
It can be easy to forget that these large dollar amounts are composed of thousands of individual projects, many of which are needed so that systems will meet or continue to meet the requirements of the Safe Drinking Water Act. Upgrading a treatment plant or replacing old pipes or installing better technologies can run from a few hundred thousand to a few billion dollars. Most project costs fall somewhere in the middle, yet the new Drinking Water State Revolving Fund (DWSRF) is capitalized only to a limited extent.
AMWA is hopeful that Congress will recognize this overwhelming need and respond by funding the new DWSRF at the authorized level of $1 billion.
Conclusion
Congress, EPA, the states and drinking water suppliers have before them a monumental job: to ensure the American public continues to receive high quality drinking water. To meet that objective requires an investment previously not seen in this arena. Infrastructure is aging, water systems require new and better technologies to meet the challenges presented by contaminants found in our rivers and streams and to meet future regulatory objectives, and regulators must expect to base future requirements and contaminant data bases on highly accurate research data. The nation's water suppliers look to Congress for help in meeting these challenges.
END


LOAD-DATE: May 4, 1999




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