Bridging the Funding Gap

1
Bridging the Funding Gap

• The need for greater federal investment in water
  and wastewater systems

2
Presentation Outline

• The Clean Water Challenge
• Infrastructure Needs Repair
• Background How We Got Here
• The Case for a Clean Water Trust Fund
• Local Actions to Ensure Clean Water
• Conclusion

3
The Problem

• Our waterways are at risk because much of our
  clean water infrastructure is in need of repair
  and replacement
• Many communities use pipes that are over one
  hundred years old
• The American Society of Civil Engineers (ASCE)
  graded the nations water/wastewater
  infrastructure a D-
• According to ASCE, many systems have reached the
  end of their useful lives

4
The Problem

• Billions of gallons of untreated sewage flow into
  U.S. surface waters each year
• Older systems are plagued by chronic overflows
  during major rain storms and heavy snowmelt
• Combined sewer overflows 850 billion gallons per
  year of untreated sewage and stormwater into our
  waterways
• Sanitary sewer overflows 3-10 billion gallons
  per year of raw sewage discharged

5
Funding Gap

• The cost of repairing, rehabilitating, and
  maintaining clean water infrastructure has risen
  dramatically while federal funding has been
  slashed
• EPA, GAO, and WIN report a 300 to 500 billion
  gap between what is being spent and what needs to
  be spent on our aging clean water infrastructure
• According to EPA, if left unaddressed, as early
  as 2016 we could see a return to pre-Clean Water
  Act levels of impairment

6
Need Grows Federal Share Falls
Local Capital Spending
Federal Investment

• The 78 federal share in 1978 is only about 3
  today
• Municipalities spend 63 billion annually on
  clean water infrastructure second only to
  education
• Local spending also plays a role

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Background How We Got Here

• 1972 Clean Water Act provided federal grants to
  create the most advanced public wastewater
  treatment systems in the world

• 61.1 billion appropriated in construction grants
  program
• Today, virtually all utilities use secondary
  treatment and many use advanced

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Grants Replaced With Loans

• Grants program phased out in 1987 and replaced by
  Clean Water State Revolving Fund (SRF)
• Low-interest loans are todays primary source of
  federal support
• 47 billion provided since 1988 SRF has been
  successful in its mission
• However, loan fund continues to get slashed
  down 33, from 1.35 billion in 2004 to 900
  million in FY 2006
• Administration has proposed cutting another 200
  million in 2007 and zeroing out the program
  completely by 2011

9
Case for Greater Federal Investment

• Needs are large and unprecedented
• Local ratepayers need to contribute, but many
  communities cannot afford the escalating costs
  alone
• Federal funding for clean water must be protected
  from budget cuts
• If we are willing to invest billions of federal
  dollars annually in highways and airports, we
  should also be willing to invest in our nations
  waterways

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Trust Fund Gains Momentum June 8, 2005 Hearing

• House Water Resources Environment Subcommittee
  expressed bipartisan support for a clean water
  trust fund
• Pollster Dr. Frank Luntz testimony
• An overwhelming majority of Americans - 91 -
  agree that if as a country we are willing to
  invest over 30 billion a year on highways and 8
  billion on airways, we should be willing to make
  the necessary investments in our nations
  water.
• Former Chief of Staff for the House
  Transportation and Infrastructure Committee, Jack
  Schenendorf
• Transportation trust funds have been enormously
  successful in creating stable, dependable revenue
  streams for funding transportation infrastructure
  projects Water infrastructure projects deserve
  no less

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The Clean Water Trust Act of 2005 H.R. 4560
December 15, 2005

• Legislation introduced in December 2005 by Rep.
  John J. Duncan Jr., Chairman of the House Water
  Resources and Environment Subcommittee, would
• Address the nations clean water funding gap
• Restore the federal-state-local partnership to
  protect public health and the environment
• Create a dedicated Clean Water Trust Fund that
  can be used exclusively for clean water
  priorities
• Be funded by a separate revenue source and
  firewalled from use in the Presidents and
  Congressional budgets
• Ensure continued progress under the Clean Water
  Act

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How Would Funds Be Spent?

• 7.35 billion per year over 5 years
• 4.5 billion/year for grants
• 1.5 billion/year in low-interest Clean Water SRF
  loans
• 1.35 billion/year for targeted programs
• Additional research and technology - 295 million
• Sewer overflow grants program - 250 million
• Regional waters Chesapeake Bay, Great Lakes,
  Long Island Sound, Gulf of Mexico - 250 million
• Fisheries enhancement - 250 million
• Management assistance to states - 250 million
• State wetlands program grants - 100 million
• Small or rural systems - 50 million
• Nonpoint watershed pilot project - 20 million
• Utility Management Center - 5 million
• 125 million one year for Alternative Water
  Source Pilot Project

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The Clean Water Trust Act of 2005 Whats Next

• Coalition working to garner cosponsors (currently
  10)
• Will it move this year?
• Congress is back June 4
• Need your members support!
• Set up meetings, write letters, get engaged

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Advocacy NACWAs Clean Water Funding Task Force

• Created through NACWA to advocate for water
  infrastructure funding
• Supports passage of H.R. 4560 and was central to
  the development and introduction of it
• Works to develop grassroots support for the trust
  fund via the Clean Water America website
  (http//www.cleanwateramerica.org) and targeted
  outreach efforts
• 65,000 individual petitioners
• Over 170 organizations
• Continue to expand stakeholder involvement
• Additional environmental, conservation, state,
  municipal, public health, labor, and industry
  groups
• Over 100,000 petitioners by July

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Conclusion

• As a country, we must ensure all levels of
  government make the necessary investments in our
  nations waterways
• Local and state governments are paying their
  share, but the federal government also has a role
• Improved sewers and wastewater treatment systems
  will guarantee clean water for future generations
  of Americans
• A dedicated Clean Water Trust Fund is critical to
  ensuring our nations health, economic growth and
  environmental wellbeing

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Contact Information

• Alexandra Dapolito Dunn General Counsel
  National Association of Clean Water Agencies
  1816 Jefferson Place, N.W. Washington, D.C. 
  20036-2505 Tel [phone] Cell (202)
  439-4047Fax  [phone] email 
  adunn_at_nacwa.org Visit us at http//www.nacwa.org
  

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Thank You!
Questions?