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Early in 2000, the Water Infrastructure
Network (WIN) published a major report calling for increased federal
funding of water and wastewater infrastructure costs. The
continuing saga, which may result in substantial funds becoming
available for system replacement and rehabilitation, is chronicled below. This will be of great
interest to all water resource agencies.
For closely related topics, see the Asset
Management page. For a
more general look at "wet" issues, check out Cindy
Paulson's Water Resources
page.
Whats
new?
We ran this USA Today article in our national coverage on bcwaternews.com a few weeks back, but I think it's worth a "reprint" here. It details a Gannett News Service analysis on aging sewer systems and delves into how local governments nationwide plan to spend billions modernizing their systems. Plenty of extra material too - videos, graphics, analysis and other news from across the country. (Posted June 2, 2008)
Other news below. Articles and other entries are
organized from latest at the top to earliest at the bottom.
Infrastructure
Funding News (latest first)
Not sure if you saw this one, but three congressional leaders asked the Government Accountability Office to look at ways to finance a Clean Water Trust Fund that would provide at least $10 billion per year to maintain and upgrade wastewater treatment and sewer-collection systems. Check it out on the Water Infrastructure Network. (Posted Feb. 20, 2008)
A
new life for this page? Just hours before the Minneapolis bridge collapse,
Senators Dodd and Hagel introduced the National
Infrastructure Bank Act of 2007, targeting publicly owned mass
transit systems, roads, bridges, drinking water and wastewater systems and
housing properties. Funds will be lent by the private sector; lenders will
earn tax credits in lieu of interest. Interesting! Additional stories are here and here. Here is a
discussion of the bill by its authors. (Posted August 3, 2007) An interesting report on why agencies
sometimes pass up SRF funding, from the U.S. Conference of Mayors,
Mayors Water council. (Posted October 17, 2006)
HR4560, in the House, is named the Clean
Water Trust Fund Act of 2005. Introduced by Congressman John J.
Duncan, Jr. (R-TN), it establishes a national trust fund to improve the
nation’s wastewater treatment facilities. It provides "funds to local communities to update their wastewater
treatment facilities. It also increases funding for improvements in
infrastructure management, research, and the development of new
technologies that will improve our ability to manage our water resources."
Big bucks being asked for but probably not a finisher this year. Full text
is available via the link above; here's the press
release. This bill also funds a "National Center for
Utility Management" -- see our Asset
Management page for more. (Posted March 15, 2006)
A secret source has sent this Water
Environment Federation Position Statement on Sustainable Infrastructure
for Clean and Safe Water. Our source adds, "In
response to the funding limitations that water and wastewater utilities
are facing, WEF developed this position statement. The statement received
review and input from many WEF committees and members before it was
adopted by the Board in April 2005. WEF supports a three-pronged approach
to solve the infrastructure challenge: Better asset management, continuing
federal investment, and participation of the general public and business
community." (Posted November 28, 2005)
Here's an interesting paper by Richard G. Little, Director of The Keston
Institute for Infrastructure School of Policy, Planning, and Development
at the Marshall School of Business, University of Southern California. Mr.
Little's short paper tells us Why
Infrastructure Matters, pointing out some basic truths about
infrastructure renewal that we (and our communities) would do well to
remember. (Posted October 18, 2005)
The Advanced
Asset Management Collaborative Working Session, hosted by the USEPA, was held in Washington DC on May
5-6 with 140 asset management practitioners from around the world
attending. The official web page is on our Asset
Management page. Of interest here is that one of the "top
ten" agenda items decided at the session was this: "Asset
Management Plans be made requirements for any Government funding."
See page 2 of the referenced PDF file. Your editor, who was there, notes
that this includes any grant or subsidized loan funding, including SRF
loans. Any comment, AMSA? (Posted June 14, 2005)
New
Senate bill S. 2550 authorizes SRF
funding of $20 billion over five years. This bill, approved by the Senate
Committee on Environment and Public Works, is the latest in a series of
bills that ties SRF funding eligibility to good asset management (see
earlier stories below). It is not expected to become law this year but
indicates the way things are moving.
Here's a snippet of the relevant
portion of the bill:
"PRIORITY SYSTEM - A State shall provide
financial assistance from the water pollution control revolving fund of
the State only for projects described in subsection (c) by amending the
priority system established by the State under subsection (g) under which
the State--
(A) gives more weight to an application for assistance
by a treatment works if the application includes--
(i) an inventory of assets, including a description
of the condition of those assets;
(ii) a schedule for replacement of assets;
(iii) a financing plan indicating sources of revenue
from rate payers, grants, bonds, other loans, and other sources"
For the record, the title of this bill is the "Water Infrastructure
Financing Act." (Posted 9/24/04)
The long-awaited GAO report on
asset management is here. This report, supposedly advising Senator
Jeffords on how to help utilities improve AM, concentrates on the
"capital" side of AM and stays away from difficult issues --
such as Sen. Jefford's own efforts to tie better AM to eligibility for SRF
funding. Interesting perspectives from several US utilities, though.
(4/20/04, posted 4/22/04)
Swimming in Sewage —
From Assetman Nick Arhontes, here's a report from the NRDC about SSOs,
nasty plant discharges, and so forth. 75 pages, nicely put
together, with lots of photos and case studies. The report
has a number of recommendations including a federal infrastructure
trust fund. Interesting! (February 2004, posted 2/23/04)
Do YOU have an
Asset Management Plan? Ken Harlow is joined by Marsi Steirer and
Joe Harris of the City of San Diego, and Steve Allbee of the EPA on this
one, explaining why we need an Asset Management Institute. One
reason? Well, the government is here to help us by tying SRF funding to
good asset management practices. Remember S.1961? The AMI may be our only defense!
This paper is also on our Asset
Management page.
(11/16/03, posted 11/23/03)
Sewer Overhauls Drive Fee
Hikes — Interesting lengthy article from USA Today
on the massive funding needs facing combined sewer systems, and
the likely huge rate increases that will be required. Includes
pleas for federal funding but there's not much hope. (10/27/03, posted
11/04/03)
Updated
ASCE Infrastructure Report Card — "The condition of
our nation's roads, bridges, drinking water systems and other
public works have shown little improvement since they were graded
an overall D+ in 2001, with some areas sliding toward failing
grades." Alarmist but entertaining.... (09/04/03, posted
09/04/03)
EPA's Clean Water and
Drinking Water Infrastructure Gap Analysis — This
much-anticipated and sometimes-purloined EPA report is available
as of September 30, 2002. Here it is, finally, courtesy of
EPA's own Steve Allbee. The report analyzes the 20-year
"gap" in funding for new infrastructure, with the accent
on replacement of aging assets. Companion piece for the WIN
Report and other interim needs analyses, most of which are
referenced on this page. See also EPA's fact
sheet on this report. (09/30/02, posted 10/1/02)
S.1961 Stalled, Dead for This
Year WEF report that "holds" on the bill
have pretty much made it a defunct issue this year, as we
forecasted earlier. As you may remember (see articles below),
S.1961 funded the State Revolving Funds and made asset management
plans and capital recovery rates a condition for borrowing.
Dead for now, but it's still there. (09/13/02, posted
09/16/02)
Newsweek
article: The Coming Water Crisis
Major article on decaying infrastructure. "Across the
country, long-neglected mains and pipes, many more than a century
old, are reaching the end of their life span. When pipes fail,
pressure drops and sucks dirt, debris, and often bacteria and
other pathogens into the huge underground arteries that deliver
water." A bit alarmist but good reading. (08/12/02
issue,
posted 08/09/02)
CBO
Report on Infrastructure Funding
The Congressional Budget Office has released this report on
water and wastewater infrastructure replacement needs through
2020. Broad range of estimates, with the WIN numbers
near the top of the range. The overall tone seems
negative re federal funding ("...distort prices and thus
undermine incentives for cost-effective actions by water
systems and ratepayers...") (05/24/02,
posted 06/03/02)
S.1961
Moves Forward -- with Difficulty
Davis Bacon
provisions, "burdensome" requirements, other
concerns hobble the bill prior to committee approval. Some
original Republican sponsors vote "nay."
(05/17/02,
posted 05/20/02)
AMSA
blasts S.1961
As hinted below: "AMSA is
urging you to call your Senators on the Environment and Public
Works Committee today or tomorrow to express opposition to S.
1961, the Water Investment Act of 2002. . ." (04/08/02,
posted 04/11/02)
What's
all the H.R. 3930 Fuss?
Here's a short analysis of
the asset management aspects of H.R. 3930, along with a link
to the full text of the bill. As far as AM goes, the
bill is a bit weak-kneed compared with S.1961 (see analysis of
S.1961 here).
Since the administration fails to support either bill, maybe
this is much ado about nothing. . . (posted 03/18/02)
Administration
Opposes House Funding Bill
House bill H.R.
3930, proposing $20 billion for the State Revolving
Funds, is opposed by the Bush
administration as being too expensive. Homeland security
takes precedence. (3/14/02, posted 03/15/02)
Reactions to S.1961
Industry comments and testimony:
- AMSA
fears that ". . . Congress does not have confidence in
our management skills and believes we are not charging
Americans enough for their water, and that the states and the
EPA need to micromanage our operations." That
would, indeed, seem to be the case.
-
The National
Society of Professional Engineers seems to agree with
AMSA's viewpoint, and offers detailed changes to the bill.
- WEF
gives a neutral report on the status of deliberations.
It's
true! S.1961,
a critical analysis
Brown and Caldwell's Ken
Harlow takes a hard look at the The Water Investment Act of
2002 and finds ... great intentions but a severe lack of
definition. Oh well, a journey of a thousand miles....
(02/25/02, posted 02/25/02)
SRF
loans to require asset management?
Depends on your code words. Proposed $35 billion
legislation requires that recipients demonstrate "technical,
managerial, and financial capacity." This WEF
article has more funding details, too. Agree or
disagree? See our
poll! (02/15/02, posted
02/19/02)
Water
infrastructure budget falls short, says WIN WIN
press release says, "The Water Infrastructure Network
today expressed serious concern about the Administration's
fiscal year 2003 budget for drinking water and wastewater
infrastructure funding." (02/04/02, posted
02/08/02)
GAO
reports on water infrastructure funding programs
The U.S. General Accounting Office has released a report
on federal assistance for water infrastructure. The GAO study
provides information on federal and state spending from 1991
through 2000. The GAO reports that revolving loan funds made
about $25 billion available during this period, with about
$10.1 billion coming from state sources. GAO also found 56
different state-sponsored grant programs for drinking water
and/or wastewater infrastructure. (November
2001, posted 01/07/02)
WPC
attacks WIN proposals, grants
From the Water
Partnership Council (see story below): ". . .a
federal grant program is not the full answer to solving the
problem of upgrading the nation's aging water and wastewater
infrastructure systems." This article clarifies the
relations ship between the WPC and the H2O Coalition.
(12/19/01, posted 12/21/01)
Private
sector responds to infrastructure needs
H2O
Coalition, move over: The Water Partnership Council intends to
piggy-back on the WIN initiative to promote privatization and
contract operation. "Some of the leading US
providers of operational services for water and wastewater
treatment officially formed a new group today to support the
use of public-private partnerships to meet the nation's
growing infrastructure needs." (11/13/01, posted
11/14/01)
APWA
lobbies senate for funds
APWA President writes
Senate leadership: "As Congress considers measures to
address the current economic slow-down, I write to urge you to
ensure that the economic stimulus package under consideration
in Congress include investment in our nation's public
infrastructure." (10/30/01, posted 11/08/01)
Democrats
press infrastructure funds
"Led by U.S.
Senate President Pro Tempore Robert C. Byrd (D-WV), Senate
Democrats have inserted a $20 billion package for
infrastructure, including water and wastewater, in an economic
stimulus package currently being considered." (11/02/01, posted
11/05/01)
AMSA
calls for sewer funding
"A representative of
the Association of Metropolitan Sewerage Agencies (AMSA) told
a Senate subcommittee that federal funds are needed to help
the nation's cities upgrade its aging water and sewer
infrastructure systems." (11/01/01, posted 11/02/01)
No
infrastructure funding this time around
From WEF:
"The U.S. House of Representatives narrowly approved a
$100 billion economic stimulus package bill on October 25 that
focused strictly on tax cuts and unemployment benefits." Maybe
the story's not over yet.... (10/26/01)
National
League of Cities asks for $7 billion
In the guise
of economic stimulus this time: "The NLC recommends
expedited federal funding of not less than $7 billion, which
would create approximately 280,000 jobs over 12 months to
complete water infrastructure rehabilitation and replacement
projects that are ready to commence." (10/22/01, published here
10/24/01)
WIN
letter to Jeffords A letter from the chairperson
of WIN to the chair of the Senate Environment and Public Works
Committee, concentrating on the "gap" and urging him
to support increased federal funding for infrastructure
replacement. (07/16/01, published here 08/08/01)
Mandatory
Asset Management?
The results of our reader's
poll, indicating that the majority would support requirements
for good asset management in return for access to federal
replacement and refurbishment funds for their
infrastructures. Interesting reading! (07/20/01)
"No
Federal Funding Needed" CEO J. James Barr of
the American Water Works Company says of infrastructure
replacement: "Whatever the final cost, it's certainly manageable at the local level without federal
intervention." Another swipe at the WIN initiative....
(07/12/01)
"Dawn
of the Replacement Era" A major AWWA report
concentrating on main replacements, $250 billion worth.
Our infrastructure demographics show a huge and rising need
for replacement in this report, which calls for better
financial planning. Here's AWWA's
press release. See also a
recent paper on how to plan for future asset
replacements. (06/19/01)
Whitman's
Statement on Infrastructure Funding Here's the
statement of EPA Administrator Whitman before the House of
Representatives on May 2, 2001. She lays out Bush's
budget for water and wastewater infrastructure, SSO funding,
and all the rest. (05/12/01).
A Special
Commentary: SoCal infrastructure warrior Blake
Anderson explains what the WIN initiative must do to succeed,
why CASA and AMSA members should support it, and why special
districts should be proud (not ashamed) of the visibility that
the Little Hoover Report on
Special Districts has given their reserves. (05/01/01)
The H2O Coalition fights WIN's
recommendations in these three reports, all PDF files: Testimony
before the Senate, an Infrastructure
Problems and Solutions paper, and a side-by-side
comparison of recommendations of the H2O Coalition
versus the WIN coalition. (03/29/01)
ASCE's
Infrastructure Report Card 2001
This detailed
report (by infrastructure type) sees a $1.3 trillion
investment to bring our systems up to snuff. Water and
wastewater get "Ds" on this report card.
(03/08/01).
EPA's
Drinking Water Infrastructure Needs Survey
This
Second Report to Congress says: "Drinking water systems
will need to invest $150.9 billion over a 20 year period to
ensure the continued provision of safe drinking water. Results
from the survey are used to develop a formula to allot
Drinking Water State Revolving Fund grants." (02/16/01).
"WIN
Perpetuates the Problem"
The H2O Coalition
offers another nay-say: "WIN would have the American
taxpayer pay for a multi-billion dollar bail-out of the coming
infrastructure funding problem without doing anything
systemically to address the underlying causes of the looming
crisis." (02/16/01).
"Cash
Down the Sewer"
The Orange County Register
attacks federal funding for our aging sewers. "Water
and sewers are the quintessential local issue. If the feds are
responsible for this matter, there's nothing they won't get
involved in." The editorial talks about "municipal
fiscal shell games," and closes: "That's why privatization
-- rather than a huge federal bailout -- is the best way to
upgrade creaking infrastructure systems." (02/15/01).
"Water Infrastructure NOW"
Press
release and
full
text The new WIN report: ". . .the network
calls for a five-year, $57 billion federal investment in drinking water,
sewer, and stormwater infrastructure to replace aging pipes, upgrade
treatment systems, and continue to protect public health and the
environment. The report also urges Congress to create a long-term,
sustainable, and reliable source of federal funding for clean and safe
water." (02/13/01).
Voinovich
Bill Press Release and
Full
Text Introduced February 6: "The Clean Water
Infrastructure Financing Act would provide $3 billion per year for five
years in grants to states who in turn loan the funds to local
communities to repair and upgrade existing wastewater treatment
facilities." Does that get your attention? (02/07/01).
"$1
Trillion Problem Beneath our Streets" Reader Steve
Allbee is quoted in this AP article about decaying sewers, from the
Associated Press. (02/06/01).
Whitman
Support of Sewer Infrastructure Proposed EPA Administrator
Whitman lists sewer infrastructure support among her top three
priorities. AMSA sees a boost for the Water-21 initative.
(01/22/01).
Congressional
Support for SRF Funding Report of strong support for HR 2720,
which authorizes $15 billion over five years for "construction,
repair and rehabilitation of wastewater collection and treatment
facilities." (12/13/00).
APWA
Endorses the WIN Report Calls for federal subsidies of local
infrastructure spending (9/28/00).
WATER-21
Moving Ahead AMSA Fax Alert: "This
week, key House committee leaders confirmed that federal water
infrastructure funding legislation - WATER 21 - tops their environmental
priorities for the 107th Congress."
(9/22/00).
$50
billion for Water Infrastructure EPA's Ken Greenberg sends
along this article on efforts of the Water Infrastructure Caucus to gain
funding for local water and wastewater asset replacement costs
(WATER-21).
That WIN Report figure of $23 billion unfunded needs annually is quoted
(9/19/00).
The Gap,
text EPA's Steve Allbee has been kind enough to offer this
paper, which explains the huge gap expected between the cost of
infrastructure replacement and the funds available. Accompanies
the slideshow directly below. Thanks Steve!
The Gap
A PowerPoint show by EPA's Steve Allbee, explaining the analysis underlying the unfunded
infrastructure replacement needs described in the WIN Report. This
is the August 10, 2000 version as seen at CASA.
WIN Report
Clean and Safe Water for the 21st Century, showing a half-trillion
dollar shortfall in
water and sewer replacement funding over the next 20 years.
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