Maureen Lorenzetti
The Senate Environment and Public Works Committee on a 13-6 vote approved a bill in late May that authorizes $35 billion over five years for state drinking water and clean water revolving loan funds. A House committee has also approved a water funding measure, but both bills must undergo further action before becoming law.
The Water Investment Act, S 1961, calls for $20 billion for clean water projects and $15 billion for safe drinking water projects, such as drinking water supply systems. The bill would also authorize $1 billion a year for five years to help small communities meet tougher arsenic standards. It contains a provision to reauthorize a wet weather grant program at $250 million per year for five years to remedy sewerage overflows.
"This bill increases loan subsidization for disadvantaged communities, increases flexibility of water infrastructure loans terms and promotes innovative, nontraditional methods of resolving water quality problems," said Committee Chairman Jim Jeffords (I-VT).
Jeffords got the bill out of committee after three failed markup attempts. Portions of the bill remain contentious, however: an amendment that requires projects funded under the drinking water and clean water SRF programs to meet conditions of the Davis-Bacon Act was opposed by ranking member Sen. Bob Smith (R-NH). He later predicted the bill won't get out of Congress if the provision remains in the Senate bill.
Davis-Bacon requires the payment of prevailing wage rates to laborers and mechanics on federal construction projects.
Over in the House, the Transportation and Infrastructure Committee last March approved HR 3930, which authorizes $20 billion over five years for the clean water SRF. Another committee, Ways and Means, passed the bill in April. The bill, which does not include a drinking water provision, has not been brought up for a full House vote; industry and congressional sources say House Majority Leader Dick Armey (R-TX) objects to Davis-Bacon provisions that were added to the bill when it was being revised in committee.
Key items of the Senate bill include the following:
Financial efficiency - Bill sponsors said the legislation "aims to ensure that water facilities that borrow SRF funds are accountable and financially sustainable when they construct water infrastructure."
Loan flexibility - The Senate bill allows state SRF administrators to extend the repayment of a loan to a disadvantaged community from 20 to 40 years and allows more favorable loan terms (including principal forgiveness) for those loans. The bill also permits states to extend the repayment of a loan to all other communities from 20 to 30 years.
Broader Project Eligibility - It revises eligibility under the Clean Water Act to include water conservation, reuse, and recycling, and for security. It also includes provisions that require that a state's priority list include not only treatment works, but also all eligible projects.
Increased Assistance to Small Sys. - S. 1961 provides four main types of technical assistance for small communities. It permits the state to use up to 2 percent of its capitalization grant to provide grants to small systems (classified as systems serving 10,000 people or less) for assistance in financial management, user fee analysis, budgeting, capital improvement planning, and repair scheduling. It authorizes $7 million per year over 5 years for technical assistance to small systems serving less than 3,300 people. It also reauthorizes the Small Public Water Systems Technology Assistance Centers for an additional $5 million per year over 5 years. Finally, it reauthorizes the Environmental Finance Centers for $1.5 million per year over 5 years.
