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House T&I Subcommittee To Vet Cuts To Water Programs

Tasha Eichenseher, E&E Daily reporter

The House Water Resources and Environment Subcommittee is expected to consider proposed U.S. EPA budget cuts to water programs and fiscal year 2006 priorities at a hearing Wednesday.

President Bush's budget request calls for $450 million in cuts for the EPA, for a total agency budget of $7.57 billion. The deepest cut to the EPA's budget is a $361 million reduction in the agency's Clean Water State Revolving Fund (CWSRF). The program, currently funded at nearly $1.1 billion, provides states with loans to improve water treatment plants.

During a Senate Environment and Public Works Committee meeting last week, lawmakers from both sides of the aisle questioned EPA on its proposed cut to CWSRF. In defense of the cut, acting EPA Administrator Stephen Johnson remarked that the agency's $730 million request for the fund is part of a long-term commitment the administration has made for the program to provide $6.8 billion in federal dollars between fiscal years 2006 and 2011.

Once those funds are appropriated, Johnson said the CWSRF will be able to operate at a sustainable annual level of $3.4 billion.

Senate EPW Committee Chairman James Inhofe (R-Okla.) chimed in to question the extent of the cuts, arguing that he was "troubled" that both the Bush and Clinton administrations have targeted the popular water fund as a means to reduce the agency's overall funding total. Other EPW panel members also challenged the effects that municipalities across the country would feel should Bush's budget request for CWSRF get enacted.

Sen. John Thune (R-S.D.) said his staff calculated that this year's proposed cut would mean $3 million less in wastewater loan funding for his state. And Senate EPW ranking member Jim Jeffords (I-Vt.) said the CWSRF cut would leave Northeastern states with about $106 million less compared with FY '05 (E&E Daily, Feb. 10).

Lawmakers last year reluctantly granted Bush's last recommendation to reduce funding for the popular program, and the administration appears intent on following up with further cuts this year.

Johnson said there was little difference between Bush's overall $7.57 billion spending plan for the agency when compared with its $8.02 billion enacted level from Congress for FY '05. The 5.6 percent cut is not so significant, Johnson said, if one considers the Bush budget removes some $500 million in lawmaker-written earmarks added during the appropriations process.

Congress historically has reacted negatively to such justification for budget cuts. At past hearings with top EPA officials, lawmakers have argued quite forcefully that they know best what funds are needed for water projects in their districts. And time and again, that displeasure has evolved into the restoration of most of the administration's recommended reductions.

But this year may be different. Bush is pressing for fiscal discipline in the wake of a $421 billion federal deficit, and a handful of GOP leaders are showing an interest in following suit.

Supporters of increased funding for water infrastructure argue that a tight fiscal climate is not a sufficient reason to cut the federal share of the revolving loan fund, pointing to the $388 billion gap in funding for water infrastructure needs over the next 20 years that has been documented in recent EPA, Congressional Budget Office and Government Accountability Office reports.

"Our view is that the funding cut to the CWSRLF really does demonstrate an untenable move by the federal government to zero out funding for clean water," said Adam Krantz, managing director of government affairs for the Association of Metropolitan Sewerage Agencies, which has floated the idea of a dedicated clean water trust fund to support infrastructure projects in the long-term in addition to supporting continued funding for the CWSRLF.

"I support substantially increased federal funding, including the concept of a trust fund," said Nancy Stoner, director of the Clean Water Project at the Natural Resources Defense Council. "I think we have a looming crisis in terms of our sewage system. EPA is predicting as much sewage in our water in 2025 as we had in the 1960s if we don't step up assistance."

EPA budget cuts also focus on the earmarks and a $20 million grant program to train wastewater operators and a reduction from $40 million to $15 million in the Alaska Native Villages drinking water and wastewater program.

Elsewhere, the EPA budget sees status quo funding, or modest gains, from previous years. The agency's Drinking Water State Revolving Loan Fund would sit at roughly the same $850 million level that it has been at in recent years. Same goes for EPA accounts for the inspector general office ($37 million request), Leaking Underground Storage Tanks fund ($73 million), and oil spill response program ($16 million).

EPA's Science and Technology account -- which provides funding for a range of studies, including the health and environmental effects of air pollution, drinking water quality and global climate change -- would increase slightly to $761 million under the Bush budget. In FY '05, Congress rejected a Bush request to fund the EPA science account at $689 million, instead funding it at $744 million.

Cleanup programs under EPA's Superfund and brownfield programs would see slight increases compared to FY '05 enacted levels. Superfund would go up by about $30 million to $1.28 billion, with the bulk of those funds geared toward cleanup of some of the nation's largest and most complex sites. Brownfields funding also heads up under Bush's budget by some $47 million, to $210 million.

The EPA's Environmental Programs and Management account, among the largest within the agency's budget, would see a slight increase in FY '06 under Bush's request. The EPM account would go from $2.29 billion to $2.35 billion, with increases felt in programs that deal with regional watersheds and homeland security.

New items tacked into EPA's budget include a request for $44 million to start the "Water Sentinel" program, a pilot project to help select cities conduct monitoring and surveillance of their drinking water systems. In all, the Bush budget seeks $185 million for homeland security-related EPA functions (E&E Daily, Feb. 8).

Schedule: The hearing is scheduled for 2 p.m. on Wednesday, Feb. 16, in 2167 Rayburn.

Witnesses: TBA.

Senior reporter Darren Samuelsohn contributed to this story.