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Clean Water Advocacy - Newsroom - NACWA in the News

FEMA grants key to rebuilding storm-damaged infrastructure, state officials say

Tasha Eichenseher, Greenwire reporter

While the U.S. EPA could waive some loan requirements for repairing water and sewage systems along the hurricane-ravaged Gulf Coast under legislation being considered by Congress, state officials say battered water utilities will reach first for Federal Emergency Management Agency grants.

"If I had access to free money, I wouldn't be interested in paying interest on loan money," said Jay Ray of the Louisiana Department of Health and Hospitals, which is responsible for assessing drinking water-system damage.

FEMA would reimburse public utilities for bringing systems back to pre-Katrina conditions, but would not pay for upgrading systems that were already suffering decay and problems, EPA officials said.

A proposal by Sen. James Inhofe (R-Okla.) -- "the Gulf Coast Water Infrastructure Emergency Assistance Act of 2005," S.1709 -- would give states the authority to forgive the principal on Clean Water State Revolving Fund (CWSRF) loans and expand the scope of drinking water projects eligible for funding under the Drinking Water State Revolving Fund (DWSRF).

"A lot of these communities have lost their population and tax base and are not in a position to make loans," said Thomas Griggs, who works on loan fund issues for the Louisiana Department of Environmental Quality. He added that the FEMA process would likely be quicker.

Under normal revolving loan fund rules, repairs and upgrades must first be included on a list of priority projects considered necessary for public health reasons or in order to comply with federal and states standards. Many systems affected by Hurricane Katrina were not included in that list. Inhofe's bill would help make all affected public systems in Alabama, Louisiana and Mississippi eligible for DWSRF over the next two years.

The drinking water loan fund allows a waiver of loan principal under emergency conditions, while the CWSRF does not. The assistance act would bring the CWSRF in line with the DWSRF.

Inhofe's bill could provide the most help to people who already have SRF loans, by extending the repayment period from 20 to 30 years, Griggs added.

State officials have also said that both drinking water and wastewater utilities could benefit from waivers for environmental review when applying for federal loan or grant money for hurricane-related repairs. This provision is not included in S.1709.

In addition, wastewater treatment plants coming back on-line are likely to need relief from federal permit requirements for plant discharges, said Griggs. It could take a couple of months to repair the flood damage and electrical problems that still plague many utilities, he said.

How much is needed?
Utilities and states are hesitant to put a pricetag on needed repairs, but Aubrey White, CWSRF coordinator at the Alabama Department of Environmental Management, estimates the needed repairs in his state alone in the tens of millions. While Alabama received the softest blow, there are still up to three major wastewater systems that sustained permanent damage and require work, White estimated.

EPA says 159 of 683 drinking water facilities in Louisiana are inoperable or out of contact; 48 of 1,368 systems in Mississippi are down and all facilities are running in Alabama. The agency adds that operational facilities could still require repair or reconstructions.

Regarding wastewater facilities, EPA estimates that 36 out of 122 publicly owned treatment works are offline in Louisiana, four out of 115 are still down in Mississippi and one facility in inoperable in Alabama.

EPA's figures for SRF allocations would only cover a small fraction of the cost.

Of the $900 million CWSRF, EPA has allotted $14.8 million to Alabama, $14.6 million to Louisiana and $11.9 million to Mississippi.

For fiscal year 2006, the agency has tentatively divided up the fund by state, giving Alabama $8.4 million, or 1 percent of the total $850 million fund, $8.4 million to Mississippi and $11.8 million to Louisiana.

Water utilities say storm spotlights national need
Inhofe's bill has bipartisan support, with cosponsorship from Sens. Barbara Boxer (D-Calif.), Tom Carper (D-Del.), Lincoln Chafee (R-R.I.), Hillary Rodham Clinton (D-N.Y.), Mary Landrieu (D-La.), Joe Lieberman (D-Conn.), Lisa Murkowski (R-Alaska) and John Warner (R-Va.), and is expected to earn EPW Committee support.

In the meantime, utilities are able to log on to EPA's National Emergency Resources Registry (NERR), to exchange technical expertise and equipment. The utility component of the database was spearheaded by the Association of Metropolitan Water Agencies and other utility trade associations.

Wastewater utility groups have said the hurricane will help people understand the critical role of often hidden or buried water infrastructure. Some experts estimated the cost of repairs and upgrades on aging system nationwide at $300 billion to $800 billion even before Katrina made landfall.

"Recent events really bring home the fact that investments in infrastructure are essential to support the lives we enjoy in our cities and towns," said Paula Dannenfeldt, deputy executive director of the National Association of Clean Water Agencies.