Lawmakers Want More Infrastructure Funds In EPA
Budget
Sen. George Voinovich (R-Ohio) used EPA's budget hearing
before the Environment and Public Works Committee to question
Administrator Christine Todd Whitman about the level of water
infrastructure funding in the agency’s FY2002 budget. The
hearing was held the week of May 14, 2001.
The budget includes $2.1 billion in grants to states for water
infrastructure, including $850 million in the clean water state
revolving loan fund (CW-SRF), $823 in the drinking water SRF and
$450 million for a new program to address infrastructure needs
related to combined sewer overflows and sanitary sewer
overflows. Voinovich noted that the budget for continued
capitalization of the CW-SRF represented a $500 million cut from the
$1.35 billion Congress has appropriated in recent years.
On the House side, a bipartisan group of 50 lawmakers sent a
letter to Rep. James Walsh (R-N.Y.), chairman of the Appropriations
VA, HUD and Independent Agencies Subcommittee, asking for an
increase in FY2002 funding for the CW-SRF to at least $1.35 billion.
They also requested full funding of $750 million for the new
wet weather grants program.
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Water Infrastructure Hearings Held In
House and Senate
The week of March 26, 2001 was a busy one for WIN with
hearings in both the House and Senate. WIN
testimony as well as other testimony and details of the
hearings are now available.
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Controversy Competes With Testimony At
Water Hearings Courtesy of eenews (3/28/01)
Move over California, the nation's next crisis is here: water. In
so many words, that was the theme that developed at a pair of House
subcommittee hearings Wednesday aimed at uncovering the need for
comprehensive drinking water and wastewater infrastructure funding
and legislation. By day's end, in-depth testimony questioning the
financial viability of a total overhaul of the nation's water
systems had been matched by environmentally minded lawmakers
sounding off over the most recent Bush administration move on the
arsenic standard controversy.
Environmental Protection Agency administrator Christie Whitman
appeared at her second hearing on the subject of water
infrastructure in as many days. But the former New Jersey governor's
testimony on the subject at hand was delayed while lawmakers pounced
on her decision earlier this month to delay the Clinton
administration rule changing the allowable level of arsenic in the
nation's drinking water from 50 parts per billion (ppb) to 10 ppb.
Democratic Rep. Henry Waxman (Calif.), in particular, made his
feelings known during opening statements in the House Energy and
Resources Committee hearing. Waxman, mimicking the Academy Awards
ceremony, gave Whitman a "Golden Jackpot" trophy filled with
chocolate for her decision to hold off on implementing the arsenic
standards until further studies could be done.
Whitman said she agreed with Waxman that a standard needs to be
set, only to say that other factors such as economics must be
considered before the rule goes into effect. Maintaining her
previous statements that a standard would be met before the 2006
deadline mandated by the Safe Drinking Water Act, Whitman added that
she had not been directly lobbied on the issue by timber or mining
industry officials. She also said White House officials kept their
distance on the subject. Waxman, meanwhile, responded by saying
water systems will continue to be polluted and the public health
remains at risk while the EPA looks into the matter.
Later, after Whitman had finished giving her testimony, she said
she was dismayed that the bigger picture of infrastructure issues
was overlooked in favor of the arsenic rule. "If there are those who
want to score partisan points, that is unfortunate," she said.
Whitman said EPA will address a number of key infrastructure
issues is in its upcoming "gap analysis," a historical assessment
expected this summer that will reveal previous capital investments
on drinking water and wastewater and also addresses operations,
maintenance and the costs of infrastructure improvements that could
be passed on to consumers. In her testimony, Whitman pointed to all
of those issues as key components for further evaluation. Also
included in her list was emerging environmental and public health
demands, notably arsenic.
Earlier in the day, committee heavyweights came out for the House
Transportation and Infrastructure subcommittee hearing on the same
subject. Full Committee Chairman Don Young (R-Alaska), former Water
Resources and Environment Subcommittee Chairman Rep. Sherwood
Boehlert (R-N.Y.), and subcommittee ranking member Rep. Robert
Borski (D-Pa.) all made it clear that something needed to be done on
water issues soon. Young emphatically said that water infrastructure
is both "badly needed" and a "major crisis facing this country,"
suggesting that one solution would be to organize a federal agency
to head up the issue while ensuring that there be no "waste in
bureaucracy" and "waste on delays."
Many of Young's suggestions, also made by other lawmakers, are
also seen in a February report
compiled by the Water Infrastructure Network (WIN).
According to the report, the nation is facing a $23 billion annual
gap over the next 20 years that should be financed partially by
federal funds. But Wednesday's morning hearing also gave a glimpse
into some new criticisms to the WIN report. According to the
Congressional Budget Office, which is conducting an ongoing review
of the WIN report as requested by both the Transportation and
Infrastructure and Energy and Commerce subcommittees, there are a
number of inconsistencies that cause concern.
Perry Beider, a CBO principal analyst, said the WIN
estimates are uncertain and possibly overblown. He said the "lion's
share" of the proposed funds are aimed at investments on
rehabilitating or replacing water and sewer pipes but there is no
national inventory of pipe ages and conditions to base those
investment needs. He said WIN analysts are relying on rough
national assumptions that add significantly to the uncertainty seen
in a 20-year cost projection. Beider also said that while the
WIN report says needs have been underestimated, CBO has found
factors suggesting the estimates may be too large.
On the potential impact on water consumers, Beider said that
"proposals intended to address the equity problem of keeping rates
affordable may adversely affect efficiency by raising total national
costs." He said that considering the differences in expenses from
one water system to the next based on each's operation and
investment plans, federal funds should be provided in a way that
gives system operators and water users the appropriate incentives to
keep costs and usage down.
Like the EPA, Beider said the CBO is also looking into the
affordability issues associated with infrastructure needs and will
provide additional information later this year. In a related matter,
the Senate Environment and Public Works Committee has asked the
General Accounting Office to do its own outside review of the
WIN report, though no indication was given at a Tuesday
hearing if GAO was finished.
Lee Garrigan, a WIN spokeswoman, said her organization has
been working with CBO officials on the analysis and welcomes the
review. Regarding the CBO criticisms, she said infrastructure debate
is a first for the nation and "everybody involved is feeling their
waythrough." While there is no complete survey to determine the
conditions and extent of the nation's underground water and
wastewater pipes, Garrigan said it is clear from anecdotes on daily
maintenance from across the country that there is a need to fund a
comprehensive overhaul.
"You always have differences in numbers," she said. "This is
Washington."
-- Darren Samuelsohn
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Committee Announces Plans To Pass Water
Infrastructure Legislation This Congress
In its annual Views and Estimates report, the House
Transportation and Infrastructure Committee said it "intends to move
water infrastructure legislation in this Congress to address
[infrastructure needs], with significantly increased authorization
levels beginning in FY 2003." The report cited estimates of drinking
water and wastewater infrastructure needs released by the Water
Infrastructure Network (WIN), a group of more than 30
organizations.
The main purpose of the report is to signal Congressional budget
committee leaders to raise the self-imposed budget caps that
determine the amount of appropriations Congress can approve for
various programs.
The first step in the committee’s efforts to pass legislation is
a hearing set for March 28 on water and wastewater infrastructure
needs by the Transportation and Infrastructure Committee’s
Subcommittee on Water Resources and Environment.
Hearings are also expected to be held this spring by the House
Energy and Commerce Committee’s Subcommittee on Environment and
Hazardous Materials and the Senate Environment and Public Works
Committee. (3/19/01) (Courtesy of AMWA).
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Call For More Infrastructure Funding Comes
From All Corners
In the last few weeks since the Water Infrastructure Network
(WIN) released its drinking water and wastewater infrastructure
needs analysis and recommendations for addressing them, several
parties have echoed WIN’s call.
The supporters include several senators, Republican and
Democratic, who sent President Bush a letter on March 14 urging him
to boost infrastructure funding in his forthcoming budget. Also, its
annual recommendations to budget committee leaders, the House
Transportation and Infrastructure Committee expressed a need to
increase the budget limits on water infrastructure funding.
Another group called the Clean Water Network, a loose coalition
of environmental groups, also called on Congress for more funding.
In a March 14 letter, the group recommended a significant boost in
infrastructure funds for water and wastewater systems.
The Clean Water Network outlined five sets of criteria for
infrastructure funding:
- funds should only be for water and wastewater needs and source
water protection.
- funds should not subsidize new development.
- the funding program should assure accountability by fund
recipients.
- funds could be used to restructure or consolidate systems that
are in significant noncompliance with the law.
- priority should be given to projects that address the most
serious threats to public health; systems with the greatest need,
based on affordability; and small systems with compliance
problems.
Also, the Environmental Council of States, a coalition of state
environment department directors, passed a resolution at their
recent conference urging Congress to increase infrastructure
funding. (3/19/01) (Courtesy of AMWA).
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EPA Estimate About One-Third Of True
Infrastructure Needs
In February 2001, EPA released its latest estimate of drinking
water infrastructure needs, based on surveys of about 3,800 water
systems in 1999. The survey found that the total infrastructure need
nationwide is $150.9 billion for the next 20 years. The report may
be downloaded from www.epa.gov/ogwdw/needs.html.
However, the reported total only covers specific documented
infrastructure needs, mainly those related to compliance with
current and future EPA rules. It does not include the vast majority
of needs not documented by states, including the cost of replacing
aging treatment facilities and distribution systems, which
represents the largest infrastructure expense facing the nation's
water suppliers. EPA concedes that the survey underestimates the
true need due to the stringent documentation requirements.
By comparison to the Water Infrastructure Network's (WIN)
analysis, the EPA data only represents about one-third of the total
infrastructure costs facing the nation's 55,000 water suppliers. WIN
based its findings not only on EPA data, but also on information
from the Department of Commerce, the Census Bureau, the American
Water Works Association and projections based on when pipe was laid
and treatment facilities were built.
In February AMWA and the other members of WIN offered a blueprint
to Congress to help cover some of these overwhelming costs. Water
Infrastructure Now, released on February 13 at the U.S.
Capitol, asks Congress to provide $57 billion over the next five
years in loans and grants for drinking water and wastewater systems.
(Courtesy of AMWA),
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Senators Ask For Infrastructure Increase
In Bush 2002 Budget
President Bush will soon receive a letter signed by a bipartisan
group of U.S. Senators urging him to boost water infrastructure
funding in his FY 2002 budget plan. The letter, directed to the
president, EPA Administrator Christine Todd Whitman and OMB Director
Mitchell Daniels, urges increased federal assistance to help
communities "protect public health and promote economic well-being
by leveraging critical investments in America's existing water and
wastewater infrastructure.
The Senators ask Bush to significantly increase both the drinking
water and clean water state revolving funds. While the letter does
not suggest a specific funding level, it does say a recent EPA
estimate of a $220 billion water infrastructure funding shortfall
may be too low. The latest report of the Water Infrastructure
Network (WIN), which is credited with sparking current congressional
interest in the issue, recommended that Congress provide $57 billion
over a five-year period for water infrastructure maintenance,
repairs and improvements.
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Bill Introduced To Fund Small Community
Drinking Water Upgrades
Sen. Harry Reid (D-Nev.) last week introduced the Small Community
Drinking Water Act. The bill would provide as much as $500 million a
year in grants for towns with a population under 10,000 to upgrade
their drinking water systems. The funds would be used to remove a
host of unsafe contaminants in drinking water, including arsenic.
(3/12/01).
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Drinking Water Infrastructure Graded
"D"
In an annual Report Card on America's Infrastructure by the
American Society of Civil Engineers, drinking water infrastructure
received a grade of "D" for the second year in a row. The society
cited drinking water infrastructure systems as "quintessential
examples of aged systems that need to be updated." Overall, the
society gave the nation's infrastructure (including transportation,
wastewater, waste and energy sectors) a "D+" and estimated the five
year infrastructure needs shortfall at $1.3 trillion. The low
overall grade resulted from explosive population growth and school
enrollment, local political opposition and "red tape" and the
growing obsolescence of aging systems. To see the report, visit http://www.asce.org/reportcard/
(3/12/01). |