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Lawmakers to discuss innovative infrastructure approaches
Water Pollution
Daily
09/10/2001

What to do about the shortfall in drinking water and wastewater infrastructure funding returns to the spotlight Thursday during a hearing in the Senate Environment and Public Works' Fisheries, Wildlife and Water Subcommittee. Lawmakers will look to government and financial experts, as well as water quality professionals, for insight on the innovative approaches that could stretch funds to as many communities as possible.
The Environment Committee has already held one hearing on the greater water infrastructure dilemma. A second hearing on the subject was cancelled but staff still gathered to discuss the issue. According to Committee Chairman James Jeffords (I-Vt.), a comprehensive infrastructure bill will be introduced late this session or early next session.
Serving as a backdrop for the debate are a host of ongoing studies from the General Accounting Office, Congressional Budget Office, Environmental Protection Agency and water industry groups to best assess the total dollar figure showing the needs versus the funds available. According to studies and comments made during the infrastructure and EPA budget hearings held earlier this year, estimates of the shortfall in federal and local funds available range from $200 million to $1 trillion over the next 20 years. Adding to the data is EPA's own "Gap Analysis," a document that agency Administrator Christie Whitman said would be complete by the end of the summer.
Thursday's hearing aims to uncover innovative means that have already been established around the country to create a steady and reliable infrastructure funding stream. According to committee staffer Peter Washburn, lawmakers will look to hear more about states that pool their financial assets or turn to bond leveraging as a means of making their money go further. From a local level, Washburn said the committee also hopes to hear about asset management and optimization, demand management, private-public partnerships and contracting techniques.
According to the CBO, which testified in March on the infrastructure issue, many of the funding estimates released so far have been based on assumptions and could be overblown. CBO has said that while much of the proposed funds are aimed at investments on rehabilitating or replacing water and sewer pipes, the actual financial figure is hard to assess because there is no national inventory of pipe age and condition on whcih to base a figure. CBO also cautioned that a broad increase in federal funding could end up reducing the pressure on systems to operate more efficiently and on customers to best use their water. Recommendations from CBO include a call to more efficiently use employees, consolidate water systems to achieve economies of scale, create price strategies to reduce peak use of drinking water and high cost contaminants in wastewater and, during construction, using one contract that covers all design, construction and operation costs.
Schedule: The hearing is at 10 a.m., Thursday, Sept. 13 in 406 Dirksen.
Witnesses: A final list was not available as of press time. Invited witnesses include officials from EPA's Office of Water and Environmental Finance Board, a financial analyst, the Council of Infrastructure Finance Authorities, the Association of Metropolitan Sewerage Agencies, the Association of Metropolitan Water Agencies and the National Association of Water Companies.
-- Darren Samuelsohn