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12/2/02 Engineering News-Rec. 9 2002 WL 10519540
Engineering News-Record
Copyright 2002 McGraw-Hill, Inc.
Monday, December 2, 2002
Vol. 249, No. 23
WASHINGTON OBSERVER: WATER CBO
Funding gap may reach $19 billion a year
Compiled by Tom Ichniowski and Sherie Winston
The Congressional Budget Office reports that annual costs for building and
maintaining drinking water and wastewater systems will range from $24.6
billion to $41 billion through 2019. That leaves a funding gap of $3 billion
to $19.4 billion per year, says CBO in its Nov. 18 report, taking into
consideration actual spending for water and sewerage of $21.6 billion in the
1998-99 base fiscal year.
In September, the Environmental Protection Agency released its own analysis,
showing an annual infrastructure shortfall ranging from $8 billion to $14
billion, for wastewater alone. The Water Infrastructure Network, an industry
coalition, says the gap is about $12 billion.
CBO's report underscores the massive need already highlighted by industry,
says an Association of Metropolitan Sewerage Agencies spokesman. Now that
there is a degree of consensus on estimates, the next step is an innovative
funding solution, he says. CBO makes no financing recommendations. It does say
that Congress could take steps to encourage cost-effective water use, such as
providing subsidies to poor families or funds to water systems according to a
formula.