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March 19, 1999
EPA Dramatically Revises Infrastructure Needs Estimates
EPA's estimate of wastewater infrastructure needs for the next 20 years has jumped dramatically from $139 billion to $332 billion, a figure that reflects new calculations for both wastewater treatment plant replacement and sanitary sewer overflow correction costs. Based on these preliminary figures, EPA's numbers are in line with AMSA's estimates, despite differences in methodologies. EPA shared its preliminary figures at a public meeting this week in Arlington, VA. The final results of EPA's completed gap analyses for wastewater, drinking water, and nonpoint source pollution control needs will be released in late April. EPA's revisions will lend further support to AMSA's call for more federal support of wastewater infrastructure, which will be released March 31 at The Cost of Clean press conference in Washington, DC.EPA's new figures reflect an eight-fold increase in its estimated costs to correct sanitary sewer overflows - from $10.3 billion to $81.9 billion. This adjustment raises the frequently cited $139.5 billion figure to $199.6 billion. When EPA's estimated wastewater treatment plant replacement costs of $132 billion are factored in, the total wastewater needs estimate for the next twenty years becomes $332 billion.
Significantly, from a federal budget standpoint, EPA has annualized the funding needs for wastewater agencies. By breaking down the 20-year needs estimate into annual spending requirements, the agency presents a clear picture of the year-by-year costs and funding shortfalls facing wastewater agencies, providing important information to congressional appropriations committees. According to EPA, capital needs are $10 billion per year; replacement needs are $6.2 billion per year; and combined yearly local and federal capital expenditures are $10.5 billion. By subtracting local and federal capital expenditures from the sum of the capital needs and replacement needs, EPA comes up with an annualized gap estimate of $5.7 billion per year.
EPA has also produced a wastewater operation and maintenance gap analysis. According to EPA's preliminary estimates, wastewater agencies will need to spend $467.8 billion on O&M over the next 20 years. But the agency's analysis reveals a $164 billion O&M funding gap.
Nonpoint Source Funding Needs Remain Hazy
Placing a dollar amount on what it will take to address nonpoint source pollution is proving to be a difficult task for EPA. Agency officials and staff acknowledged at this week's public meeting on clean water funding needs that several unknowns stand in the way of a good estimate. The amount of USDA funds that go to nonpoint source pollution controls and the actual water quality benefits that can be reasonably expected from various best management practices remain unclear, lending significant uncertainty to EPA's efforts to calculate nonpoint source control funding needs. AMSA is concerned that these questions could stall federal efforts to stem nonpoint source pollution. However, with enforceable state nonpoint controls in place, as AMSA has called for, federal regulators might get a clearer picture of the funding needed to address nonpoint source pollution.AMSA Calls for Restored Clean Water SRF Funds... Next week AMSA will send a letter to congressional appropriators calling upon them to restore $550 million dollars to the Clean Water State Revolving Loan Fund and supplement the SRF with a new grants program to address wet weather issues. The president's FY2000 budget only funded the SRF at $800 million, but key Senators and Representatives have pledged to restore the cuts to the FY1999 level of $1.35 billion.