Government Relations

Mayors Release Water Infrastructure Report

The U.S. Conference of Mayors (USCM) recently released a report that shows the economic impact of local government investment in water and sewer infrastructure services. The report was released during the Mayors ’08 Action Forum on Infrastructure in New York City, where mayors called for a new local/federal partnership to bring critical investment to our nation’s cities in transportation, water and other critical public infrastructure.

The new report shows that for every $1 invested in public water and sewer infrastructure services, approximately $8.97 are added to the national economy. Other key findings reveal:

• Recent estimates are that $1 of water and sewer infrastructure investment increases private long-term output by $6.35 ($1 invested yields $6.35 output).
• The U.S. Department of Commerce (DOC) estimates that for annual general revenue and spending on operating and maintaining water and sewer systems — each additional dollar of public revenue from providing water and sewer services increases revenue in all industries by $2.62 — ($1 dollar invested yields $2.62 output in other industries).
• DOC estimates that adding one new job in local water and sewer creates 3.68 jobs in the national economy to support it.
• An indirect benefit of local government investment in “green water and sewer infrastructure” such as protecting one hectare (2.5 acres) of wetlands for source water protection yields $4,177 annually in avoided water treatment costs, and another $10,000 in other ecoservices categories (e.g., water supply, climate regulation, recreation, etc.).

The Mayors Action Forum on Infrastructure, where this report was presented, is the second in a series of mayoral forums in key cities around the country intended to challenge the next presidential administration to invest in America’s cities and metropolitan areas — the economic engines of the nation accounting for 86 percent of the Gross Domestic Product and where more than 85 percent of people in the country live. Recommendations from this forum and four others will be presented to the next President of the United States during the critical first 100 days of the new administration.

A copy of the report can be found here.

Water Sector Set to Measure Security Progress

Water utilities throughout the country are encouraged to participate in a new initiative to measure the progress of drinking water and wastewater systems in the area of “all hazards” security. A 22-question voluntary reporting tool was developed through a joint effort of the Water Sector Coordinating Council (WSCC), which consists of utility owner/operators and association representatives, and its federal partners. The results from the measures survey will be used to demonstrate the sector’s security progress to date and will help inform federal legislators and regulators regarding the continuous improvements utilities have made in securing critical water infrastructure.

To ensure the protection of all participant data, the WSCC has asked WaterISAC to house the reporting tool. All systems regardless of size, type or WaterISAC affiliation are strongly encouraged to participate in this voluntary initiative. The tool, which launches September 9, can be accessed at http://water-sector-progress.org/. All responses will be kept secure and information will only be reported in aggregate form. The water sector is the first of the nation’s 18 critical infrastructures to develop a metrics tool of this nature.

Senate Committee To Consider SRF Bill Soon

The Senate Environment and Public Works Committee is tentatively planning on considering a new State Revolving Fund (SRF) reauthorization in September. The bill to be considered in committee could be formally introduced as early as this week. Early drafts of the bill began circulating in August.

At this point the committee is preparing a combined drinking water and clean water SRF bill, however the bill could be split in two, or one section dropped all together when formal committee business begins. (If one section is dropped all-together it likely will be the drinking water section since the House has so far only passed a CW-SRF bill.)

With Congress planning on adjourning the 110th Congress at the end of September, it is far from clear if any bill can make its way through the entire legislative process and be signed into law. (There is, however, increasing conjecture that Congress will come back after the elections for a “lame duck” session. Work on an SRF bill could be completed then.)

For the CW-SRF, the bill would authorize $3.2 billion for each of fiscal years 2008 and 2009, $3.6 billion for FY 2010, $4 billion for FY 2011 and $6 billion in 2012. For the DW-SRF, the bill would authorize $1.5 billion for fiscal year 2008, $2 billion for FYs 2009 and 2010, $3.5 billion for FY 2011 and $6 billion in 2012.

NARUC, AEP Reach Deal on Boucher CCS Bill

National Association of Regulatory Utility Commissions (NARUC) and American Electric Power (AEP) recently reached agreement on legislation that would create a ratepayer-funded carbon-capture and sequestration research corporation.

The Carbon Capture and Storage Early Development Act, sponsored by House Subcommittee Chairman Rick Boucher (D-Va.) creates a funding mechanism for carbon-storage technologies administered by a board within the Electric Power Research Institute (EPRI).

NARUC had concerns with an initial version of the bill that the corporation’s governing board would be made up of industry representatives, with no governmental or consumer representation. Cong. Boucher asked NARUC to work with AEP on a negotiated agreement.

In an August letter to Cong. Boucher, the two parties said, “Mr. Chairman, today NARUC and AEP are pleased to provide you with the attached language which we believe is a fair and reasonable compromise protecting both ratepayers and the electric utility industry, while providing financial certainty for investment in development and deployment of CCS technologies.” They went on to endorse the bill with the inclusion of the agreed upon language.

Treasury Department Creates New Deputy Environment and Energy Post

Undersecretary for International Affairs David H. McCormick announced the selection of William A. (Billy) Pizer to be Deputy Assistant Secretary for Environment and Energy. He will lead a new office created by Secretary Paulson to develop, coordinate and execute the Treasury Department's role in the domestic and international environment and energy agenda of the United States. Among other things, the office will oversee international financial mechanisms to support U.S. and global environmental goals, such as the multi-billion dollar Clean Technology Fund established in July, the Tropical Forest Conservation Act and the Global Environmental Facility, as well as contribute to the development of domestic and international policy options to address climate change.

Pizer spent the past 12 years at Resources for the Future, the nonpartisan research organization, most recently as senior fellow and research director, where he directed, published and communicated research on the design of effective environmental policy. He has also served as senior economist at the National Commission on Energy Policy and senior staff economist at the White House Council of Economic Advisers. He received a B.S. in physics from the University of North Carolina and a Ph.D. in economics from Harvard University.