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April 2002

A summary of recent NSPE government relations activities

NSPE Submits Water Infrastructure Statements

In statements submitted to the Senate Environment & Public Works Committee and the House Transportation on the water infrastructure bills (S.B. 1961 and H.B. 3930), NSPE noted the necessity of authorizing funding for safe drinking water, wastewater treatment, and related infrastructure needs. Such funding on the 30th anniversary of the Clean Water Act, is critical for two reasons: the need to assure the security of the nation's critical water infrastructure as part of homeland security and the positive impact this investment will have on the economy by creating jobs and expanding manufacturing and technology, as well as meeting continuing environmental quality standards.

NSPE is a founding member of the Water Infrastructure Network, which has identified an annual spending gap for water infrastructure needs estimated at $23 billion per year for the next 20 years, with the federal share of the shortfall at $57 billion. While we support the higher figure, NSPE applauded the proposed $35 billion authorization as a substantial step in the right direction.

NSPE's comments focused on three areas: the State Revolving Fund (SRF) program; deficiencies of construction grants and concerns that S. 1961 and HR 3930 may be revisiting deficiencies that were previously put aside; and alternative suggestions for certain provisions in the bill.

NSPE endorsed the effort to remove federal administrative burdens, which hinder accessibility to the SRF program and discourage the use of SRF-financed loans. The states, having been given the primary responsibility for implementing the SRF program, should also be given the maximum flexibility to operate it as they see fit, so long as they achieve the goals of the Clean Water Act. We applauded the committees for granting the states some flexibility for funding of negative interest loans and principal forgiveness.

We acknowledged that small and economically disadvantaged communities, as well as large systems serving significant segments of low income areas, are finding it difficult to obtain financing or have bonded themselves to the limit of their financial capability. To address these situations, NSPE called for legislation and implementing rules that facilitate the ability of these disadvantaged communities to obtain SRF loans. NSPE suggested that the committee enhance these programs in the bill that provide the equivalent of grants to small and large economically disadvantaged communities for water investment projects. One way is to lift the cap on private activity bonds, which communites use to finance many infrastructure investments at below market rates.

In its statement and follow-up letter to members of the Senate Environment & Public Works Committee, NSPE offered several recommendations. These addressed the bill's purpose, eligible projects, modifications to the Safe Drinking Water Act, dated procurement language, and a proposed study of rate structures by the National Academy of Sciences.

In formal testimony before both committees, Benjamin Grumbles, the Environmental Protection Agency's deputy assistant administrator for water, said the Bush administration opposes the authorization of $35 billion for Clean and Safe Water SRFs over five years called for in the Senate bill, and $20 billion for Clean Water SRF in the House bill, because it is inconsistent with the president's budget and spending priorities for defense and security. He told the committee that the administration supports many aspects of both bills but not the proposed funding levels. The president's budget requests $2 billion for FY03 for both SRFs.

Grumbles said the administration supported the bill's efforts to apply certain aspects of the drinking water SRF to the clean water SRF. The bill contains provisions on capacity development, prioritizing projects based on needs, and asset management requirements.

NSPE Takes Part in AAES Public Policy

The American Association of Engineering Societies, which NSPE recently rejoined, established its 2002 legislative priorities at a meeting of the Public Policy Committee attended by NSPE Executive Director Pat Natale and Government Relations Director Larry Bory. Two issues were identified as first priority, which all AAES members can endorse: greater balance in the federal research portfolio and K-12 math, science, and engineering partnerships funding.

Recent National Science Foundation data show a growing disparity in the federal research portfolio. The latest data indicate that federal agencies obligated a record $19.9 billion for academic science and engineering activities in FY00—an increase of $1.8 billion or 10 percent over FY99. Federal support for academic science and engineering activities primarily funds research and development projects. In FY00 the government funded $17.3 billion worth of R&D. Of that amount $10.5 billion was directed at the Department of Health & Human Services, which includes the National Institutes of Health. Participants in the Public Policy Coordinating Committee (PPCC) meeting agreed to work toward a greater balance between the biological and physical sciences in federal funding.

During the next decade, the U.S. demand for scientists and engineers is expected to increase at more than double the rate for all other occupations. The need for a technological and scientifically literate population is essential for our economy and our national security. But today's high school students are not performing well in math and science overall, and a decreasing number of American students are pursuing degrees in technical fields. To help address this problem, Congress established the Math and Science Partnerships in the No Child Left Behind Act. That legislation authorized $450 million for the partnerships. However, Congress appropriated just $12.5 million in Department of Education funds for them and the president's 2003 budget request is the same as 2002. The AAES will work to seek full funding for the partnerships.

Other issues that one or more AAES members will take the lead on include energy, national disaster response, aeronautical R&D, retirement security/pension reform, and federal funding for transportation and water infrastructure. However, the full PPCC will be asked to endorse the positions.


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