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Facilities Financing Issues

1996 Clean Water Needs Survey Report to Congress

On September 23, 1997, EPA Administrator Carol Browner signed and transmitted to Congress the 1996 Clean Water Needs Survey Report to Congress. The report concluded that over the next 20 years, municipalities will need nearly $140 billion for treatment purposes. Of this amount, $44 billion will be needed for wastewater treatment; over $10 billion for upgrading existing systems; nearly $22 billion for new sewer construction; nearly $45 billion for controlling combined sewer overflows; and approximately $7 billion to control municipal storm water. The survey also found that utilities that serve fewer than 10,000 people need about $13.8 billion for their operations, or 11 percent of the estimated total. According to the survey, 72 percent of the U.S. population are now served by the more than 16,000 POTWs across the country. The survey also found that in 1996, nearly 20 percent of the treatment facilities, or 4,428, provided greater than secondary treatment compared to the 24 percent in 1992 and 22 percent in 1988. CONTACT: Sandi Perrin, EPA 202/260-7382.

NDWAC Drinking Water State Revolving Fund Working Group

Background: Under the National Drinking Water Advisory Council (NDWAC), EPA has formed a Drinking Water State Revolving Fund (DWSRF) Working Group to help identify issues and make recommendations to EPA on implementation of the Drinking Water State Revolving Fund program.

Status: The second meeting of the National Drinking Water Advisory Council (NDWAC) Drinking Water

State Revolving Fund (DWSRF) Working Group was held on September 17, 1997, in Washington, D.C. Two major issues were discussed including: 1) eligibility limitations that some States are considering in the DWSRF program, and 2) the eligibility of privately­owned systems in State DWSRF programs. Two sub- issues regarding potential eligibility were discussed: minimum size limits on eligible systems; and minimum or maximum ceilings on loan amounts. The majority of Working Group members voted that States should not be allowed to categorically exclude systems from applying based on their size. Also, the group was divided over whether States should be allowed to set minimum or maximum size loan amounts. With respect to privately­owned systems, members indicated that some States have constitutional or statutory provisions limiting their ability to provide assistance to these systems and other States are considering excluding private systems as a matter of policy. EPA confirmed that it has approved applications in a few States which exclude private systems, however, each of those States had a statutory or constitutional prohibition against funding private systems. The majority of Working Group members voted that States should not be allowed to categorically exclude systems from applying based on ownership. The Working Group also discussed several additional issues including whether water conservation projects should be eligible for DWSRF funding. The consensus was that the Group should recommend that States be given the flexibility to address water conservation issues, but at a much lower priority level than projects related to public health and compliance. The next Working Group meeting was scheduled for December 4­5, 1997 in Washington, D.C. CONTACT: Rick Naylor, U.S. EPA 202/260-5135 or Christy Kettell, AMSA 202/833-9106.

AMSA Competitiveness Report

Background: AMSA and the Association of Metropolitan Water Agencies (AMWA) have joined to produce a new publication, Thinking, Getting & Staying Competitive: A Public Sector Handbook. The Handbook will serve as a companion piece to AMSA's previously released, "Evaluating Privatization: An AMSA Checklist," and "Managed Competition: Developing and Responding to RFQs & RFPs." The Handbook is being developed under the guidance of AMSA's Competitiveness Workgroup (formerly the Privatization Workgroup) and will be released during AMSA's 1998 Winter Conference, February 3-6, in San Antonio, TX. The Handbook will illustrate a "how to" approach to becoming competitive by highlighting proven strategies for becoming competitive and profiling several utilities that have developed these strategies. Following the release of the Handbook in February, AMSA and AMWA will sponsor eight "how to" workshops based on the publication. The workshops will feature both panel and interactive sessions and will provide members and non-members alike with the opportunity to network with wastewater officials in their regions. The day and a half long workshops are currently scheduled to be held in the following cities in 1998: April 21-22, Boston; April 23-24, Philadelphia; June 2-3, San Francisco; June 4-5, Los Angeles; September 15-16, Chicago; September 17-18, Kansas City, MO; November 17-18, Atlanta; November 19-20, Houston.

1997 AMSA Index Survey Forms Due

The AMSA Index assesses national trends in wastewater service charges and compares them to rates of inflation. Released annually, the Index measures year­to­year percent changes in residential sewer service charges based on the responses of AMSA member agencies in each EPA region. The National Office forwarded 1997 AMSA Index survey forms to all members in early August 1997. An additional mailing, in early October 1997, forwarded surveys to members who had not responded and provided extra time to complete the survey. The 1997 AMSA Index will be forwarded to AMSA members via Member Update in early 1998.


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