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
• U.S. EPA estimates a 540 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 INSERT LOCAL FACTS FIGURES

7
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

8
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 funding has been slashed from 1.35
  billion in 2004 to 687 million in FY 2008 a
  33 reduction

9
Case for Greater Federal Investment

• Needs are large and unprecedented
• 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

10
Trust Fund 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.

11
Local Actions to Ensure Clean Water

• Local ratepayers will face higher costs, not only
  for construction but for operations and
  maintenance
• Utilities are improving their ability to manage
  their underground assets with new technology and
  data management
• For example, INSERT LOCAL EXAMPLE

12
Conclusion

• As a country, all levels of government must
  invest 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