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Clean Water Report
Copyright 2002 Gale Group Inc. All rights reserved. COPYRIGHT 2002 Business
Publishers, Inc.
Monday, May 20, 2002
ISSN: 0009-8620; Volume 40; Issue 10
Measure Provides Huge Boost to SRFs, But Water Reps Do Not Like Legislation.
FULL TEXT
The Senate Environment and Public Works Committee passed its water
infrastructure bill, S. 1961, May 17, but it does not have the support
of wastewater representatives because they believe it places too many
conditions on low-interest loans.
The bill would dramatically increase authorizations for wastewater and
drinking water infrastructure projects that are financed through
low-interest loans or grants called State Revolving Funds (SRFs). The
bill calls for spending levels of $20 billion over five years for
wastewater funding and $15 billion over the same time frame for drinking
water funding. Those figures contrast with current single-year funding
of $1.35 billion for wastewater and $850 million for drinking water
projects.
The bill, called the Water Investment Act, would require states to
develop a strategy within three years to assist treatment facilities in
developing technical, managerial and financial capacity. Money would go
to facilities that showed they were using the most efficient
organizational structure possible; facilities must consider
restructuring plans before receiving funds.
Recipients of wastewater SRFs would ensure that basic financial
management practices, such as an asset management plan, would be in
place or under development.
Supporters of the legislation say the conditions will hold facilities
accountable when they borrow money from the SRFs. Also, it would ensure
that borrowers are financially stable when they construct water
infrastructure projects.
Some wastewater representatives, however, say the new conditions make
seeking the SRFs not worth the trouble. Municipalities and facilities
will hunt for other sources of funding, such as private funds, or will
issue bonds, Ken Kirk, executive director of the Association of
Metropolitan Sewerage Agencies (AMSA), told CWR. At the group's annual
convention in Washington this week, members may pass a resolution
opposing the bill.
The Bush administration disapproves of the bill because of the large
increases in authorizations.
Amendments Galore
The bill faced controversy on the committee, whose members submitted
about 70 amendments, fewer than half of which were considered before the
panel approved the measure, 13-6.
The committee approved by voice vote an amendment by Sen. Harry Reid
(D-Nev.) that would add prevailing Davis-Bacon wages for projects funded
by SRFs. A second-degree amendment from Sen. George Voinovich (R-Ohio)
that offered a compromise and would allow prevailing wages only on the
first round of federal funding failed 3-16.
Republican senators believed the bill, because it contained prevailing
wage provisions, would not pass the full Senate or would at least be
tied up in a filibuster. Reid, however, countered that 60 senators would
vote to override the filibuster.
The bill, sponsored by chairman Jim Jeffords (I-Vt.), provides funding
according to EPA's needs survey that is due out later this year. The
least populous states would be entitled to 0.7 percent of total SRF
funds. Sen. Bob Smith (R-N.H.) offered an amendment that would raise
that apportionment to 1 percent, but it was voted down 6-12. Had it
passed, it would have authorized about $50 million more than Jeffords'
mark.
In contrast, the panel approved an amendment from Reid that provided
$1 billion annually for five years to help small water systems comply
with the new arsenic standard of 10 parts per billion.
The panel approved by voice vote an amendment from Sen. Ron Wyden
(D-Ore.) that would allow wastewater SRF funding to go to water
conservation projects.
Contacts: Ken Kirk, AMSA, (202) 833-2672; Erik Smulson, Environment
and Public Works Committee, (202) 224-1878; Michelle Nellenbach,
Environment and Public Works Committee, (202) 224-6176; Karen Bachman,
Voinovich's office, (202) 224-3353.