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House T&I Committee to look at wastewater financing
Tasha Eichenseher, E&E Daily reporter

How to fill a more than $400 billion gap in funding for wastewater infrastructure upgrades nationwide will be the subject of a House Transportation and Infrastructure Committee hearing this week.

The Subcommittee on Water Resources and Environment will bring in industry experts to present different financing options before Subcommittee Chairman John Duncan (R-Tenn.) drafts or approves legislation this session that would take a stab at solving the nation's wastewater woes, according to committee staff members.

"With various estimates of projected infrastructure needs over the next 20 years in the range of $400-plus billion, and our current funding rate at about half of that (by all levels of government), there's an obvious and substantial gap that must be closed," said committee spokesman Justin Harclerode. "A lot of small communities with many competing priorities and limited funds find it tough to fund these kinds of projects on their own. This is all compounded by our infrastructure security concerns and needs post 9/11."

According to the Congressional Budget Office, drinking water and wastewater infrastructure investment costs over the next 20 years may range from $492 billion to $820 billion. Within EPA's so-called Gap Analysis report, similar infrastructure costs range from $499 billion to $929 billion. And the Water Infrastructure Network, a coalition of industry, engineering, professional and environmental groups, compiled a high-end, $806 billion estimate.

House efforts the previous two sessions to pass a wastewater bill broke down after the language passed the House Transportation and Infrastructure Committee but GOP leaders objected to a pro-labor provision requiring all construction work funded through the U.S. EPA's water infrastructure accounts to be paid with prevailing wages under the Davis-Bacon Act. H.R.1560, led by Reps. Don Young (R-Alaska) and John Duncan (R-Tenn.), was a $25 billion wastewater only bill. H.R. 3930, introduced in the 107th Congress by Duncan and Peter DeFazio (D-Ore.), was similar.

The same session, Senate Environment and Public Works Committee Chairman James Jeffords (I-Vt.) advanced a bill, S. 1961, that included $20 billion over five years for the EPA's Clean Water State Revolving Fund, which provides low interest loans to states, and $15 billion over five years for a similar drinking water account (E&E Daily, Dec. 2).

This year, Reps. Ellen Taushcer (D-Calif.) and Sue Kelly (R-N.Y.) are floating a bill, H.R. 2684, that would authorize $25 million.

This week's hearing is the first of two the subcommittee plans to have on wastewater infrastructure this month. Discussion will focus on the possibility of funding repairs through a national trust fund, which the wastewater utility industry and states have voiced support for, and other financing mechanisms.

Schedule: The hearing is scheduled for 10 a.m. on Wednesday, June 8, in 2167 Rayburn.

Witnesses: Frank Luntz, the Luntz Research Companies; Jack Schenendorf, former Transportation and Infrastructure Committee chief of staff on behalf of the Associated General Contractors of America; Ken Rubin with PA Consulting for the National Association of Clean Water Agencies; and Susan Neely of the American Beverage Association.