Government Relations

Legislation to Allow for More Private Financing of Water Infrastructure Projects, Sustainable Water Solutions Passes U.S. House of Representatives

The Sustainable Water Infrastructure Investment Act of 2010, S. 3262 and H.R. 537, passed the U.S. House of Representatives for the second time this year as part of H.R. 4213,The American Jobs and Closing Tax Loopholes Act. The U.S. Senate must now find the votes for the broader American Jobs Bill to be signed into law.

The water proposal’s low-cost and creative approach to tapping private capital for water infrastructure investment projects continues to be an appealing measure to encourage investment in water projects that would sustain jobs and create small business opportunities. “The bill really is a win-win: each and every water project undertaken as a result of its ultimate passage will be vital to maintaining and protecting public health and the environment,” said Michael Deane, executive director of NAWC.

According to the Environmental Protection Agency (EPA) and the U.S. Government Accountability Office (GAO), a $500 billion gap exists in funding and needs to maintain critical water infrastructure. In practice, this “gap” and infrastructure neglect can have devastating consequences. Last year American communities suffered more than 240,000 water main breaks and billions of gallons of overflowing combined sewer systems, causing contamination, illness, property damage and disruptions in the water supply. The water pipe break in Massachusetts last month left nearly 2 million people without water and placed an enormous strain on local residents and small businesses. One original co-sponsor of S. 3262, Senator John Kerry (D-Mass.), faced the need for water infrastructure repair and maintenance first hand and updated his constituency on the water main break via Twitter.

Congressman Pascrell (D-N.J.), along with 54 bipartisan and geographically diverse colleagues, led this bill to passage in the U.S. House of Representatives. Congressman Pascrell spoke on the importance of this policy change: “Our nation’s job deficit and deteriorating water systems have gotten to the point that if you randomly pick up a newspaper in any American city, there’s a good chance you find a story about a company’s job cuts or a community’s water main break — maybe both. Taxpayers cannot be expected to foot the entire bill for all of the repairs and updates that our water infrastructure needs. Our legislation will encourage public-private sector partnerships to secure needed resources.”

Senators Menendez (D-N.J.) and Mike Crapo (R-ID) and 7 bipartisan colleagues continue to lead the charge in the U.S. Senate to bring the bill to final passage. “Part of rebuilding our economy for the 21st century is renovating the infrastructure that helps our communities prosper,” said Menendez. “Many of our communities in New Jersey have been challenged by aging and deteriorating water and sewer systems, which not only jeopardizes the health of our families but also puts significant strain on local budgets. With this legislation, we can help local governments afford water and sewer renovations without burdening taxpayers, and we can create thousands of jobs.”

“Many small communities need, and deserve, federal support to comply with federal water and wastewater guidelines,” Crapo said. “This bill would allow local communities to leverage private capital markets in combination with other financial mechanisms to finance water and wastewater infrastructure projects. It makes financial sense for communities and will improve public health and water quality.”

Reauthorization of Drinking Water State Revolving Loan Fund Advances

The House Committee on Energy and Commerce passed H.R. 5320 to reauthorize and increase funding for the drinking water state revolving fund (SRF) under the Safe Drinking Water Act (SDWA). The bill will now require approval by the House of Representatives.

The Assistance, Quality, and Affordability Act of 2010 will amend SDWA to increase assistance to states, water systems and disadvantaged communities; encourage good financial and environmental management of water systems; strengthen EPA enforcement authority; reduce lead in drinking water; and strengthen the Endocrine Disruptor Screening Program.

According to the sponsors, “This bill will encourage water systems to anticipate replacement and rehabilitation needs and plan for the future. It will also improve the abilities of states to prioritize projects that promote efficiency, sustainability, and long-term viability of water systems.”

During mark-up, Republicans significantly reduced the originally proposed amount of authorization from $13 billion over five years to $4.8 billion over three years. Additionally, Republicans supported clarification that the Endocrine Disruptor Screening Program be designed to produce scientific results that are based on (1) verifiable measurements with sufficiently small error rates; (2) well-controlled measurements whose interpretation is not confounded by extraneous influences; and (3) results that are repeatable by independent scientists. In other words, Congress shall not mandate any regulation in advance of its being studied. The section does require that EPA list and begin testing chemicals according to specific deadlines and that EPA specifically study and report back in two years on the presence of pharmaceuticals and personal care products in the presence of drinking water.

The Transportation Infrastructure Committee has already passed a reauthorization of the clean water state revolving fund, S. 1262, and the Senate Environment and Public Works Committee is waiting to bring S. 1005, a reauthorization of both funds, to the Senate floor for a vote. The Senate is not expected to vote on the bill anytime soon. Once all three pieces of legislation have passed their respective chambers, all three committees will need to conference the bills to even out differences and merge their bills into one.

The NAWC authored a letter to the Energy and Commerce Committee commending them for their commitment to using the successful State Revolving Loan Fund program to supplement local water investment and incentivize good water management practices. The letter can be read here.

EPA to Initiate Rulemaking to Reduce Harmful Effects of Sanitary Sewer Overflows

The U.S. Environmental Protection Agency (EPA) is initiating a rulemaking to better protect the environment and public health from the harmful effects of sanitary sewer overflows (SSOs) and basement backups. In many cities, SSOs and basement backups occur because of blockages, broken pipes and excessive water flowing into the pipes. SSOs present environmental and health problems because they discharge untreated wastewater that contains bacteria, viruses, suspended solids, toxics, trash and other pollutants into waterways. These overflows may also contribute to beach closures, shellfish bed closures, contamination of drinking water supplies and other environmental and health concerns.

EPA is considering two possible modifications to existing regulations: (1) establishing standard National Pollutant Discharge Elimination System (NPDES) permit conditions for publicly owned treatment works (POTWs) permits that specifically address sanitary sewer collection systems and SSOs; and (2) clarifying the regulatory framework for applying NPDES permit conditions to municipal satellite collection systems. Municipal satellite collection systems are sanitary sewers owned or operated by a municipality that conveys wastewater to a POTW operated by a different municipality. As a part of this effort, the agency is also considering whether to address long-standing questions about peak wet weather flows at municipal wastewater treatment plants to allow for a holistic, integrated approach to reducing SSOs while at the same time addressing peak flows at POTWs.

To help the agency make decisions on this proposed rulemaking, EPA will hold public listening sessions and the public can submit written comments. EPA will accept written comments on the potential rule until 60 days after publication in the Federal Register.

Please click here for more information on sanitary sewer overflows, the potential rule and a schedule of the upcoming listening sessions.