Clean Water Advocacy - Newsroom - NACWA in the News
House Passes $14 Billion ReauthorizationOf Clean Water Act State Revolving Fund
Legislation that would provide $14 billion over four years for infrastructure improvements at wastewater treatment plants was approved by the House March 9.
The Water Quality Financing Act of 2007 (H.R. 720), approved 303-108, would reauthorize the Clean Water Act State Revolving Fund (SRF) for fiscal years 2007 through 2011.
Under the SRF program, established in 1987, EPA makes
capitalization grants to states, which in turn make low-interest loans to
wastewater utilities. States are required to match the funds they use by at
least 20 percent. The loans are intended to be repaid into the fund, making it
self-perpetuating.
Despite a veto threat from President Bush March 8, no House members disputed the
need for federal funding to replace and repair deteriorating wastewater
infrastructure and no one criticized the $14 billion reauthorization during
debate on the House floor.
However, a provision in the bill that would extend Davis-Bacon wage rules to funds provided by the Environmental Protection Agency for SRF-funded projects generated heated debate and threatened to derail the bill.
Signed by President Herbert Hoover in 1931, the Davis-Bacon Act
requires payment of prevailing wages and benefits to federal construction
projects.
Rep. John Mica (R-Fla.) said during House debate he supported the goals of the
bill to restore aging and deteriorating wastewater infrastructure, but that it
should be about "effectively addressing our wastewater infrastructure needs, not
about a labor issue."
'Mother of Unfunded Mandates.'
"This is the mother of all unfunded mandates," Mica said of the Davis-Bacon provision. "This unprecedented expansion of prevailing wage law is an earmark for labor union bosses that will cost taxpayers hundreds of millions of dollars," he said.
Because states have to match federal grants by at least 20 percent, this would be the first time Davis-Bacon would be applied to nonfederal funds, he said.
Rep. Richard Baker (R-La.) said he supported reauthorization of the SRF but was "disappointed by the inclusion of the largest expansion of Davis-Bacon Act wage-padding in U.S. history. This is a hidden tax imposed on rate payers and tax payers that increases capital costs all for questionable benefits," he said.
In a March 7 letter to all members of the House of Representatives, the Associated Builders and Contractors said it opposed the Davis-Bacon provision.
"For more than 10 years, clean water state revolving funds have operated efficiently without Davis-Bacon requirements," said Kirk Pickerel, president and chief executive officer of ABC.
"This return to Davis-Bacon wage rules is nothing more than a favor to unions for their support in last year's election, and American taxpayers will suffer as a result," Pickerel said.
A supporter of the Davis-Bacon Act said its opponents have a "pathological aversion to the Davis-Bacon provision." The prevailing wage requirements have worked well in Oregon, according to Rep. Earl Blumenauer (D-Ore.).
An amendment offered by Baker and Rep. Steve King (R-Iowa) to strike the Davis-Bacon provision from the bill was defeated by a vote of 280-140.
Gap in Infrastructure Funding
The bill is essential as a "first step" because both EPA and the Government Accountability Office have estimated a funding gap of $300 billion to $500 billion of what is needed and what is available for wastewater infrastructure, said Peter King, executive director of the American Public Works Association.
he bill would be just the "first step in addressing the shortfall," King said at a briefing held by the Water Infrastructure Network before House consideration of H.R. 700. WIN is a coalition of water agencies, contractors, and construction companies.
EPA has said that under the current level of available money for infrastructure repair, the level of infrastructure would be at the level it was before the Clean Water Act was enacted 35 years ago, said Adam Krantz, managing director of government and public affairs for the National Association of Clean Water Agencies.
On March 8, the House approved the Healthy Communities Water Supply Act of 2007 (H.R. 700), which would authorize $125 million for grants to find alternative sources of water for communities that are experiencing critical water supply needs. On March 7, the House approved the Water Quality Investment Act of 2007 (H.R. 569), which would authorize $1.7 billion over five years in grants to states and municipalities for reducing sewer overflows (46 DEN A-8, 3/9/07 ).
Together, the three pieces of legislation passed the week of March 5 would authorize nearly $16 billion for clean water infrastructure.
By Patricia Ware