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House Transportation Committee Revives Clean Water State Revolving Fund Program
The House Transportation and Infrastructure Committee approved three bills Feb. 7 aimed at reviving funding for the nation's clean water state revolving fund, reducing sewer overflows, and demonstrating alternative techniques for supplying water to communities.
By a 55-13 vote, the full committee approved sending the Water Quality Financing Act of 2007 (H.R. 720) to the House floor. H.R. 720 authorizes $20 billion for the clean water state revolving fund program (SRF) between fiscal years 2008 and 2012. The program was last authorized in 1987 and expired in 1995.
The committee also approved by voice votes the Water Quality Investment Act of 2007 (H.R. 569), which would authorize $1.8 billion in grants to curb sewer overflows, and the Healthy Communities Water Supply Act (H.R. 700), which would authorize $125 million to fund pilot alternative water supply projects.
The committee's votes came a week after the water subcommittee approved the three bills Jan. 31(21 DEN A-2, 2/1/07 ).
SRF Program
Under the SRF program, the Environmental Protection Agency provides grants to states, and the states provide matching funds to establish a low-interest loan program to enable communities to upgrade wastewater treatment systems. The Bush administration has not sought reauthorization for the revolving fund, preferring to turn it into a self-sustaining loan program that is replenished by interest payments made on loans.
The bill would extend repayment periods for revolving fund loans up to 30 years, require a state to use part of its funding to provide subsidies for disadvantaged communities, and authorize $75 million annually in technical assistance to rural and small wastewater treatment projects.
The bill would use water quality benefits and a watershed approach as the criteria to prioritize which projects receive funding. It also would direct the Government Accountability Office to study potential revenue sources for setting up a Clean Water Trust Fund and for encouraging communities to consider "green infrastructure" such as the use of rain gardens to collect stormwater runoff.
Davis-Bacon Act Concerns
The committee's passage of H.R. 720 was not immediate because Republican members objected to the inclusion of Davis-Bacon Act requirements that local prevailing wages be paid on projects receiving federal funds.
Rep. John Mica (R-Fla.), the committee's ranking Republican, said he was "disappointed" the bill requires that Davis-Bacon Act requirements apply to all projects that use money from the SRF, "regardless of whether there is state or federal money involved."
According to Mica, only initial federal seed money for infrastructure projects was subject to prevailing wage requirements prior to the expiration of SRF authorization in 1995. State money, including state matches, loan repayments, interest, and other nonfederal funds, were not subject to these requirements, Mica said.
"I'm not a supporter of Davis-Bacon as it is applied here," Mica said.
Rep. Charles Boustany Jr. (R-La.) unsuccessfully offered an
amendment to H.R. 720 that would have directed GAO to study the impact of using
Davis-Bacon provisions on municipalities that build these projects, rural
communities, disadvantaged communities, and on the state revolving fund itself.
Boustany's amendment was defeated on a voice vote, but not before Rep. Connie
Mack (R-Fla.) accused the Democrats of using the bill to protect "big unions and
big labor."
Grants to Help Control Sewer Overflows
Although 13 Republicans opposed H.R. 720, Democrats and Republicans were unanimous in approving H.R. 569, the bill aimed at controlling sewer overflows through distribution of $1.8 billion in grants to states from fiscal year 2008 through 2012. The grants would help municipalities pay for improvements and upgrades to reduce the problem of overflows from sanitary sewer systems and combined systems.
According to the committee, combined sewer systems are found in 33 states across the United States and the District of Columbia. The majority of them are in the Northeast and the Great Lakes area. EPA has estimated that redesigning combined sewer systems in these communities could cost more than $50 billion.
Also receiving unanimous committee approval was H.R. 700, which would provide $125 million to EPA under Section 220 of the Clean Water Act to provide grants for alternative water source projects.
Ken Kirk, executive director of the National Association of Clean Water Agencies, said he was "grateful" to both Oberstar and the committee members for making wastewater infrastructure a "high priority."
By Amena H. Saiyid