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NSPE Issue Brief
September 2002, Publication #4003
Clean Water
Reauthorization
Support reauthorization and significantly expanded federal
funding of the Clean Water State Revolving Loan Fund program.
Oppose reauthorization of the Construction Grants
program.
Oppose imposition of any federal water tax to finance
wastewater infrastructure construction.
Background
Growing public awareness and concern for
controlling water pollution led to enactment of the Federal Water
Pollution Control Act Amendments of 1972. This law became commonly known
as the Clean Water Act.
The Act established the basic structure for regulating discharges of
pollutants into the waters of the United States. It gave EPA the authority
to set wastewater standards for industry and municipalities. It also
funded the construction of sewage treatment plants under the construction
grants program and recognized the need for addressing nonpoint source
pollution.
Subsequent reauthorizations modified some of the earlier Clean Water
Act provisions. Revisions in 1981 streamlined the municipal construction
grants process, improving the capabilities of treatment plants built under
the program. Changes in 1987 phased out the construction grants program,
replacing it with the Clean Water State Revolving Fund (CWSRF). The CWSRF
is financed primarily through the EPA and provides low-cost loans, through
the states, to municipalities to finance water pollution control projects.
Although the authorization for the Clean Water Act expired 15 years
ago, Congress continues to provide annual appropriations for the program.
However, the appropriations for the SRF have continually fallen short of
the authorized levels. For example, President Bush requested less than the
authorized amount in his Fiscal Year (FY) 2003 budget.
For FY02, the CWSRF received $1.35 billion. The Environmental
Protection Agency (EPA) estimates the cost of addressing future clean and
safe water infrastructure gaps in funding could reach as high as $1
trillion over the next 20 years.
NSPE
Position
State Revolving Loan Fund
NSPE is a strong advocate of the SRF program.
NSPE supports authorization and appropriation of
substantially greater federal funds to the wastewater and drinking water
SRF programs. The needs suggest that the federal contribution to the SRFs
should increase to as much as $8 billion annually.
NSPE supports programmatic changes to the SRF program that
facilitates participation in the program by disadvantaged communities,
reduces burdensome requirements, and enhances program flexibility. NSPE
would support the removal of Davis-Bacon prevailing wage language from
House and Senate legislation in an effort to expedite the passage of a
Clean Water Act reauthorization bill during the 107th Congress.
Construction Grants
NSPE opposes reauthorization of the EPA construction
grants program and construction grants for "special needs" cities.
NSPE support allowing states to offer negative interest
loans or grants where appropriate.
NSPE
Action
In the early 1980s, NSPE recommended to Congress that the
federal Construction Grants program be discontinued and replaced with a
revolving loan program. NSPE has consistently backed the CWSRF program
since its inception. In fact, NSPE was instrumental in providing much of
the economic modeling and research that formed the basis of the SRF
program.
NSPE is a founding member of the Water Infrastructure Network (WIN)
which recently completed a study to examine federal funding alternatives
to assist in meeting the estimated $23 billion annual shortfall in
wastewater and drinking water funding needs. NSPE supports increased
federal funding in the combined SRF to total $57 billion over the next 5
fiscal years.
Status
On May 17, 2002, the
Senate Environment and Public Works Committee approved S. 1961, which
authorizes $20 billion over five years for the Clean Water State Revolving
Loan Fund. The Committee report (S. Rept. 107-228) was filed on July 29,
2002 and the bill is awaiting action by the full Senate. The bill includes
a controversial provision requiring all construction work funded through
the CWSRF to be paid for with prevailing wages under the Davis-Bacon Act.
On March 12, 2002, the House Transportation and Infrastructure
Committee approved H.R. 3930, the "Water Quality Financing Act of 2002."
The bill would authorize appropriations of $20 billion over five years for
the CWSRF. The bill would set aside 15 percent of these funds for small
and disadvantaged communities. The House bill also includes similar
language concerning the payment of Davis-Bacon wages as the Senate
legislation.
On April 17, 2002, the House Ways and Means Committee held a markup of
H.R. 3930 and stripped out language from the bill that would have allowed
tax-exempt bonds to be used for public-private water projects.
Note: Because House rules delegate jurisdiction over wastewater
and drinking water to two separate committees, action by the full House on
H.R. 3930 would not address drinking water needs. This would require the
passage of separate drinking water legislation by the House Energy and
Commerce Committee.
NSPE
References
Testimony on Wastewater Treatment Funding Provisions of the
Clean Water Act - 2/16/95
Position Statement on Water Resources - 7/97
Professional Policy No. 120-D - Water Resources - 7//96
Position Statement on Wetlands Protection - 7/96
Water Infrastructure Network Study: Clean and Safe Water for the 21st
Century - 5/00; Water Infrastucture Now 2/01
Staff
Contact
Lee White -- 703/684-2874 or email lwhite@nspe.org
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