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FEMA grants key to rebuilding storm-damaged infrastructure, state officials say
Tasha Eichenseher, Greenwire reporter
While the U.S. EPA could waive some loan requirements for repairing water and sewage systems along the hurricane-ravaged Gulf Coast under legislation being considered by Congress, state officials say battered water utilities will reach first for Federal Emergency Management Agency grants.
"If I had access to free money, I wouldn't be interested in paying interest on loan money," said Jay Ray of the Louisiana Department of Health and Hospitals, which is responsible for assessing drinking water-system damage.
FEMA would reimburse public utilities for bringing systems back to pre-Katrina conditions, but would not pay for upgrading systems that were already suffering decay and problems, EPA officials said.
A proposal by Sen. James Inhofe (R-Okla.) -- "the Gulf Coast
Water Infrastructure Emergency Assistance Act of 2005," S.1709 -- would give
states the authority to forgive the principal on Clean Water State Revolving
Fund (CWSRF) loans and expand the scope of drinking water projects eligible for
funding under the Drinking Water State Revolving Fund (DWSRF).
"A lot of these communities have lost their population and tax base and are not
in a position to make loans," said Thomas Griggs, who works on loan fund issues
for the Louisiana Department of Environmental Quality. He added that the FEMA
process would likely be quicker.
Under normal revolving loan fund rules, repairs and upgrades must first be
included on a list of priority projects considered necessary for public health
reasons or in order to comply with federal and states standards. Many systems
affected by Hurricane Katrina were not included in that list. Inhofe's bill
would help make all affected public systems in Alabama, Louisiana and
Mississippi eligible for DWSRF over the next two years.
The drinking water loan fund allows a waiver of loan principal under emergency
conditions, while the CWSRF does not. The assistance act would bring the CWSRF
in line with the DWSRF.
Inhofe's bill could provide the most help to people who already have SRF loans,
by extending the repayment period from 20 to 30 years, Griggs added.
State officials have also said that both drinking water and wastewater utilities
could benefit from waivers for environmental review when applying for federal
loan or grant money for hurricane-related repairs. This provision is not
included in S.1709.
In addition, wastewater treatment plants coming back on-line are likely to need
relief from federal permit requirements for plant discharges, said Griggs. It
could take a couple of months to repair the flood damage and electrical problems
that still plague many utilities, he said.
How much is needed?
Utilities and states are hesitant to put a pricetag on needed repairs, but
Aubrey White, CWSRF coordinator at the Alabama Department of Environmental
Management, estimates the needed repairs in his state alone in the tens of
millions. While Alabama received the softest blow, there are still up to three
major wastewater systems that sustained permanent damage and require work, White
estimated.
EPA says 159 of 683 drinking water facilities in Louisiana are inoperable or out
of contact; 48 of 1,368 systems in Mississippi are down and all facilities are
running in Alabama. The agency adds that operational facilities could still
require repair or reconstructions.
Regarding wastewater facilities, EPA estimates that 36 out of 122 publicly owned
treatment works are offline in Louisiana, four out of 115 are still down in
Mississippi and one facility in inoperable in Alabama.
EPA's figures for SRF allocations would only cover a small fraction of the cost.
Of the $900 million CWSRF, EPA has allotted $14.8 million to Alabama, $14.6
million to Louisiana and $11.9 million to Mississippi.
For fiscal year 2006, the agency has tentatively divided up the fund by state,
giving Alabama $8.4 million, or 1 percent of the total $850 million fund, $8.4
million to Mississippi and $11.8 million to Louisiana.
Water utilities say storm spotlights national need
Inhofe's bill has bipartisan support, with cosponsorship from Sens. Barbara
Boxer (D-Calif.), Tom Carper (D-Del.), Lincoln Chafee (R-R.I.), Hillary Rodham
Clinton (D-N.Y.), Mary Landrieu (D-La.), Joe Lieberman (D-Conn.), Lisa Murkowski
(R-Alaska) and John Warner (R-Va.), and is expected to earn EPW Committee
support.
In the meantime, utilities are able to log on to EPA's National Emergency
Resources Registry (NERR), to exchange technical expertise and equipment. The
utility component of the database was spearheaded by the Association of
Metropolitan Water Agencies and other utility trade associations.
Wastewater utility groups have said the hurricane will help people understand
the critical role of often hidden or buried water infrastructure. Some experts
estimated the cost of repairs and upgrades on aging system nationwide at $300
billion to $800 billion even before Katrina made landfall.
"Recent events really bring home the fact that investments in infrastructure are
essential to support the lives we enjoy in our cities and towns," said Paula
Dannenfeldt, deputy executive director of the National Association of Clean
Water Agencies.