Coalition Proposes Replacing
Water, Sewer SRF Programs
The Water Infrastructure Network (WIN), a coalition of municipal
officials, water and wastewater service providers, engineering
organizations, construction professionals, and environmental
organizations, has proposed replacing the federal Drinking Water and Clean
Water State Revolving Fund (SRF) programs with new Water and Wastewater
Infrastructure Financing Authorities in each state. As with the current
programs, states would be required to provide a 20% match for any federal
revenues.
While half of the funds would be targeted to wastewater and half to
drinking water needs, WIN's proposal would give states the flexibility to
shift up to 15% from one purpose to the other. Such flexibility would be
available so long as such a transfer did not adversely affect any project
on the state's priority list that was "ready to go."
WIN recommends that Congress require the new state funding authorities
to provide 25% to 50% of each year's allocation as grants that would fund
up to 55% of projected expenditures, with economically distressed
communities eligible for grants funding up to 75% of projected costs.
Loans and loan subsidies would include interest rate discounts, zero
interest rate loans, principal forgiveness, and negative interest rate
loans.
Meanwhile, based on the results of its 1999 Drinking Water
Infrastructure Needs Survey that was released in February, the U.S.
Environmental Protection Agency on May 18 published its preliminary
allocation of Drinking Water State Revolving Fund monies. The DWSRF
program allocates funds to states on the basis of each state's
proportional share of the total national drinking water infrastructure
need.
Each state's expected allotment is based on the Bush administration's
budget request of more than $823 million for the DWSRF program. However,
as noted in the article on page 20 ("Lawmakers Push for Increase in Water
Infrastructure Funds"), both EPA's estimate of the nation's drinking water
infrastructure needs and the proposed EPA budget are subject to change.
