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Clean Water Advocacy - Newsroom - NACWA in the News

White House Proposes 4 Percent EPA Cut; Plan Targets Earmarks for Water Projects

The Bush administration proposed Feb. 5 to cut Environmental Protection Agency funding by nearly 4 percent in fiscal 2008, mainly by targeting earmarks for local water and sewer projects.

The administration's proposed budget would provide $7.2 billion for EPA in fiscal 2008, $294 million below the estimated level for the current fiscal year, as provided by a continuing budget resolution passed last year.

EPA Administrator Stephen L. Johnson said the proposed budget protected the environment while simultaneously helping to "restrain the government's spending appetite."

"As our nation shifts to a green culture, Americans are realizing that environmental responsibility is everyone's responsibility," Johnson told reporters at a briefing. "President Bush's budget request will fund EPA's role as our country enters this next phase of environmental progress."

The proposed cuts would include $215 million from EPA's targeted water infrastructure funding, including projects for Puerto Rico, Alaska, and New Mexico.

The proposed budget would leave the clean water state revolving fund (SRF) at $687.6 million, unchanged from the estimated amount for fiscal 2007, but below the $831 million provided in fiscal 2006. The SRF provides funding to states to distribute low-interest loans for water quality projects to prevent sewage overflows and improve stormwater management.

The president also would make no change from fiscal 2007 in a second loan fund popular with states--the drinking water state revolving fund--leaving the budget for that program at $842 million. That figure is up from $837 million in fiscal 2006.

Because Congress has not enacted an appropriations bill for EPA for the current fiscal year, the agency's estimates for 2007 are based on a temporary spending measure that is set to expire Feb. 15. The House Jan. 31 voted to pass another continuing resolution (H.J. Res. 20) that would set spending levels for the remainder of fiscal 2007, and that measure includes $1 billion for the clean water SRF. The administration's request for 2008 is $312.4 million below that level (21 DEN A-11, 2/1/07 ).

Johnson defended the president's proposed funding level, saying the administration's $687.6 million proposal for the clean water fund provides sufficient annual capitalization to support local projects. He also said the proposed funding level ensures that the administration will meet its own long-term goal of amassing $6.8 billion in the fund between 2004 and 2011 for local and state water projects.

"We look forward to working with Congress to pass the president's budget proposal," including with regard to the clean water fund, he said.

POTWs Criticize Proposal

The National Association of Clean Water Agencies, which represents 300 publicly owned wastewater treatment works, criticized the budget request, saying it is only about half the historical funding level of $1.35 billion last seen in fiscal 2004.

"It is unconscionable to expect the nation's clean water utilities to keep up with the soaring costs of maintaining and expanding their infrastructure while the federal government moves farther and farther away from their financial commitment to clean water," NACWA Executive Director Ken Kirk said. "The cuts to the SRF are moving the nation backwards in terms of meeting the fishable, swimmable goals of the Clean Water Act."

Another key grant program for states, local areas, and tribes--the State and Tribal Assistance Grants (STAG)--would be reduced under the proposed budget. The president's fiscal 2008 budget requests $2.7 billion for the STAG grants, down from $2.8 billion in fiscal 2007 and $3.1 billion in fiscal 2006.

Funding levels for EPA's superfund program would see an increase of about $25 million in fiscal 2008 to approximately $1.25 billion under the administration's proposal, up from $1.22 billion. EPA's budget for superfund would be higher than the $1.23 billion level appropriated for fiscal 2006.
The superfund program proposal would provide funding to complete 40 superfund cleanup projects nationwide, the agency said.

Enforcement Efforts Touted

Johnson said the proposed 2008 spending plan includes $549.5 million for enforcement operations, the largest amount ever used for that purpose. This is a $9.1 million increase over the fiscal year 2007 amount, he said.

According to budget documents, much of that enforcement effort will go to the superfund program. In particular, the documents said EPA's Superfund Federal Facilities Response and Enforcement program helps federal and local governments, tribes, states, redevelopment authorities, and the affected communities to address contamination at federal and former federal properties.

In fiscal 2008, the agency also will negotiate remedial design/remedial action cleanup agreements and removal agreements at contaminated properties. Where negotiations fail, the budget documents said, EPA will either take unilateral enforcement actions to require cleanup or use appropriated money to remediate sites.

Funds for Diesel Program, Chesapeake

The administration's proposed budget requests $35 million for a diesel emissions reduction program, authorized under the Energy Policy Act of 2005. This request would be an increase of $7 million over the appropriated level for fiscal 2007, but would be less than the $49.5 million the president requested for the program in 2007.

According to EPA, the $35 million is estimated to leverage an additional $72 million in funding assistance and reduce particulate matter by approximately 5,040 tons, which will achieve $1.4 billion in health benefits.

Johnson also pointed to a proposed increase in funding to clean up the Chesapeake Bay. The White House is proposing an additional $2 million over the 2007 estimated amount, for a total of $28.8 million, to help Pennsylvania, Maryland, Virginia, and the District of Columbia increase the pace of restoration, implement nutrient and sediment controls, and restore habitats.

The administration is proposing to spend $162.2 million for brownfield programs, which support community revitalization of contaminated, abandoned industrial properties. This figure includes $23.4 million for brownfields, $89.2 million for brownfields projects, and $49.5 million for brownfields grants.

More information on the proposed EPA budget for fiscal 2008 is available at http://www.epa.gov/ocfo/budget/index.htm.



By Jeff Kinney