» Legislative Alerts Archive

Today, Congressman David Obey (D-Wisc.), Chairman of the House Appropriations Committee, released an executive summary and legislative language for the spending portion of the proposed Economic Recovery Package that the House Appropriations Committee will mark up next week.  The American Recovery and Reinvestment Act of 2009 is on the House Appropriations website and is available by clicking here . 

The overall infrastructure investment portion of the package is approximately $63.5 billion with nearly 20% or approximately $11.8 billion targeted for community water and wastewater infrastructure:  $6 billion for wastewater projects funded through the Clean Water State Revolving Fund (CWSRF), $2 billion for drinking water projects funded through the Drinking Water State Revolving Fund, and $3.8 billion for rural water and wastewater systems.  In addition, the package includes $500 million for western water supply projects, including water reuse projects, through the Bureau of Reclamation and $400 million for watershed protection projects through the Natural Resources Conservation Service. 

The breakdown of the $6 billion for the CWSRF is as follows. Half of the funding is to be disbursed by the states as loans.  States are required to use the additional 50 percent ($3 billion) to provide assistance, “in the form of additional subsidization, including forgiveness of principal, negative interest loans, and grants, to municipalities (as defined in section 502 of such Act) for projects that are included on the State’s priority list established under section 603(g).”  Eighty percent of the grant money would be for projects “to benefit municipalities that meet affordability criteria as determined by the Governor of the State,” and 20 percent for projects “to address water-efficiency goals, address energy-efficiency goals, mitigate stormwater runoff, or encourage environmentally sensitive project planning, design, and construction, to the extent that there are sufficient project applications eligible for such assistance.”  

NACWA worked hard to ensure that a significant portion of the overall infrastructure investment package is targeted to wastewater projects, including green infrastructure projects, and is pleased that the key House committees also included language instructing states to distribute 50 percent in the form of grants or grant-equivalents.  This draft bill signifies a vital step in the recognition that the federal government is receiving the message that it must be a key partner in addressing the growing wastewater infrastructure funding gap.

Public Agency Members Asked to Make the Case for Grants

NACWA and its members will continue to advocate strongly that funding for wastewater infrastructure projects remain a significant part of the overall stimulus package as it progresses through the House, the Senate, and the incoming Administration.  NACWA also continues to make the case, and urges its individual members to continue to contact their Representatives and Senators, to strongly recommend that these funds be distributed in the form of grants.

Speaker of the House Nancy Pelosi (D-Calif.) has indicated that she wants to wrap up work on this package prior to the Presidents Day recess beginning February 9.  The release of the House draft bill is only the beginning of the vital process of getting stimulus legislation passed and we must continue to advocate for the municipal position and build on this momentum!