CONGRESSIONAL UPDATE ON CSORELATED ISSUES

1
CONGRESSIONAL UPDATEON CSO-RELATEDISSUES

• Alexandra Dapolito Dunn
• General Counsel
• Association of Metropolitan Sewerage Agencies
• Washington, D.C.
• AMSA/CSO Partnership Workshop
• April 12, 2005

2
Topics

• Blending
• Funding
• SRF Outlook
• Trust Fund Proposals
• Community Earmarks
• Other Legislation

3
Blending

• Briefing held on March 16
• House hearing on April 13
• Litigation Oral argument May 19 in DC Circuit
• Debate applies to combined and separate sewer
  systems
• HR 1126 Save our Waters from Sewage Act (Stupak,
  D-MI Kirk, R-IL)
• How do we get out of the box?

4
(No Transcript)
5
EPA Budget Has New Home

• In the House, EPA now funded by new
  Appropriations Subcommittee on Interior,
  Environment Related Agencies
• In the Senate, EPA now funded by new Interior and
  Related Agencies Panel, which will also deal with
  Interior Dept., Bureau of Land Management, and
  USGS

6
Clean Water SRF (1)

• Steady decline in federal funding from 1972
  construction grants program
• Federal funding dries up
• Switch to SRFs, loans not grants
• Expanded funding eligibilities
• Today, local citizens and private businesses pay
  about 60 billion a year or 90 of the total cost
  to build, operate, and maintain their water and
  wastewater systems

7
Clean Water SRF (2)

• FY 2005 - cut by 250M
• FY 2006
• Administration seeks 360M cut (from 1.09B to
  730M)
• Sec. 524 of S.Con.Res.18 (passed 3/17) recommends
  increasing SRF to 1.35B
• H.Con.Res.95 (passed 3/17) increases natural
  resources and environment budget (sense is
  will be for SRF)
• Budget goes to House/Senate Conference
• Municipal groups urging at least 2.5B

8
The Funding Gap

• Generally accepted at 21B/year
• EPA, CBO, GAO, WIN
• Return to pre-Clean Water Act water quality
  possible (EPA)
• Gap grows as mandates increase
• CSOs, SSOs, Stormwater,
• Nutrients, Mercury, Arsenic
• 45 of US waters still impaired (EPA)

9
The Gap Is Growing
10
EPAClose the Gap Via

• Improved Management Practices
• Utilities SayNarrows gap only 10-15
• More Efficient Water Use
• Utilities SayReduces cost for growth, not
  existing needs
• Watershed Approaches and Innovations
• Utilities SayStill evolving, what about
  nonpoints?
• Full Cost of Service
• Utilities AskWhat does this mean? unpredictable
  new mandates affordability issues

11
Wheres The Equity?

• No other major infrastructure sector foots bill
  for federal requirements entirely at local level
• Highway Trust Fund (30B/yr) Aviation Trust Fund
  (8B/yr)
• Education Housing
• Homeland Security
• Cities alone despite fact that
• Waters are national/public goods
• Local commitment creates national benefit
• Local efforts allow for movement of business,
  labor, residents, tourists

12
Time To Think Creatively
13
Luntz (2004) and Luntz/Penn Schoen (3-05)

• 90 of Americans agree if the nation is willing
  to invest billions annually in highways
  airports the same should be done for waterways
  (2004)
• 91 of Americans agree if we are willing to
  invest over 30 billion a year for highways and
  more than 8 billion a year for airways, the
  federal government should be willing to invest
  similarly in clean water (2005)

14
Solution A Clean Water Trust Fund

• Equity National Benefits Demand Shared National
  Cost
• Infrastructure Networks Are National Priorities
• Promotes a Good that Benefits Entire Nation
• Investment Demands Call for Federal Contribution
• Federal Govt Has Unique Financing Position
  Longer Investment Horizon
• Long-Term Federal Investment Assures Sounder
  Policies
• Encourages Local Revenue-Raising Capacity

15
Trust Fund Legislation

• Clean Water Trust Act
• 7b/year total over 5 years
• 4.5 billion in grants (65-35 match)
• 1.5 billion for CWSRF
• 1 billion for key targeted programs
• Funding source options with clean
• water nexus coming
• CSO Partnership Proposal
• Electric utility fee

16
Raise Public Awareness
17
Community Earmarks

• Still common
• Can provide funding for special projects

18
Other Legislation

• H.R. 624 reintroduced to extend until 2011 the
  1.5B authorization for sewer overflow
  grants--would provide 250 million per year for
  fiscal years 2006-2011 for grants for CSO SSO
  control projects
• Security legislation possible given 3/05 GAO
  report on allocating federal funds for wastewater
  security
• State legislation for CSOs e.g., Indiana

19
(No Transcript)