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Clean Water Advocacy - Newsroom - NACWA in the News

House Measure Would Establish Trust Fund To Upgrade Wastewater Treatment Facilities

Rep. John Duncan (R-Tenn.) has introduced legislation (H.R. 4560) to establish a Clean Water Trust Fund to upgrade the nation's aging wastewater treatment facilities.

If enacted, the Clean Water Trust Act of 2005 would raise $7.5 billion each year from "an equitable system of user fees," which the Environmental Protection Agency would recommend to Congress 180 days after enactment.

Congress would have to approve those fees in separate legislation, Jonathan Pawlow, majority counsel for the House Transportation and Infrastructure Water Resources and Environment Subcommittee, told BNA Dec. 16.

Specifically, the trust fund would help control sewer overflows, enhance fisheries and wetlands, encourage research, enhance investment in small and rural utilities, and protect critical regional waters such as the Great Lakes, the Chesapeake Bay, and the Gulf of Mexico, according to the National Association of Clean Water Agencies (NACWA), which has been lobbying Congress for creation of such a fund.

Duncan, chairman of the water subcommittee, acknowledged the need for such legislation to protect the nation's clean water supply.

In a statement Dec. 16, he said he was aware that in some older systems "pipes were laid as far back as the 1800s. ... We must meet the challenge of finding more-efficient and less-expensive ways to address our wastewater needs."

NACWA Executive Director Ken Kirk said the bill was a "bold move" to create a "deficit-neutral Clean Water Trust Fund," address EPA's estimated clean water funding gap of $300 billion to $500 billion, and guarantee continued progress that began more than 30 years ago under the Clean Water Act.


Dedicated Revenue Source

Duncan's bill does not "conclusively determine" the source of revenue, but rather relies on EPA to recommend user fees that "of course" would be subject to congressional approval, Pawlow said.
G. Tracy Mehan, a principal with Virginia-based Cadmus Consulting Group and a former EPA assistant administrator for water, said the critical question is whether the bill has identified a dedicated revenue source.

"I find it very incongruous that Congress is deferring a taxing decision to an administrative agency," Mehan told BNA Dec. 16.

Pawlow acknowledged that identifying a dedicated revenue stream was one of the sticking points in crafting the bill. However, "we are only at the starting point," he said, adding that he expects to meet with stakeholders to resolve outstanding issues.

Once the revenue stream is identified, Pawlow said, $6 billion of the total authorized amount of $7.5 billion would be spent on upgrading the wastewater infrastructure. Roughly $4.5 billion would be disbursed as grants to high-priority wastewater projects, while $1.5 billion would be given as loans to local communities, he said.

The remaining $1.5 billion would be spent on other projects identified in the bill, including wetland restoration, research, and water quality protection of the Chesapeake Bay, the Gulf of Mexico, and the Great Lakes.

The existing Clean Water state revolving fund (SRF) would continue to operate, but under the aegis of the Clean Water Trust Fund, Pawlow added.


EPA Unwilling to Commit

Despite the provision that requires EPA to recommend user fees, NACWA said the bill enjoys widespread support among engineers, builders, contractors, environmental advocates and local and state officials. Kirk noted that Duncan is a "noted fiscal conservative" who recognizes the importance of clean water infrastructure.
Benjamin Grumbles, EPA assistant administrator for water, said he had not reviewed the legislation.

"We look forward to reviewing the bill and working with Congress on various approaches for sustainable infrastructure," Grumbles told BNA Dec. 16.

According to information on EPA's website, the Office of Water envisions a "sustainable infrastructure" with four pillars of action, including full cost pricing.

Most of the funding for water and wastewater comes from ratepayers in their monthly sewer and water bills. "Therefore, pricing water to accurately reflect the true costs of providing high quality water and wastewater services to consumers is needed to both maintain infrastructure and encourage conservation," the website statement said.

Grumbles said he was "very interested" in working with Congress and state and local officials to learn more about permit fees and full-cost pricing, or the full cost of drinking and wastewater services that are provided to the public.

EPA's four pillars of action are available at http://www.epa.gov/water/infrastructure/pricing/index.htm.