Clean Water Current Archive

January 23, 2009

NACWA Testifies on Need for Water Infrastructure Funding in Stimulus

NACWA testified yesterday before the House Transportation and Infrastructure (T&I) Committee on how investments in wastewater infrastructure can help stimulate the overall U.S. economy by providing jobs with good wages that also benefit the environment and public health.  NACWA President Marian A. Orfeo, director of planning and coordination for the Massachusetts Water Resources Authority (MWRA), told the committee in her testimony that the American Recovery and Reinvestment Act of 2009, is a good first step, and that, “NACWA members have identified over $17 billion worth of wastewater projects ready to go that can have shovels in the ground within 120 days of receiving the go ahead from their State agencies.”  NACWA also issued a press release highlighting the testimony and applauding the funding as a move in the right direction.  In opening the hearing, T&I Chairman James Oberstar (D-Minn.) expressed his disappointment over funding levels in the bill, which were about half what he had proposed for the stimulus package late last year.  He also sought to quell concerns that the money could not be used quickly, saying he was certain the distribution of funds will be one of the “highest priorities” for the Obama administration.

During the question-and-answer period, the committee requested to have NACWA’s list of ready-to-go projects included in the hearing record and asked Orfeo about the need for grants versus loans in the stimulus bill, especially given concerns raised this week by the Congressional Budget Office (CBO) and senators from both parties about how long it will take for stimulus money to create new jobs.  The CBO report , distributed to every member in Congress by Senate Minority Leader Mitch McConnell (R-Ky.), found that only about $136 billion of the $355 billion for infrastructure and other discretionary programs would be spent by Oct. 1, 2010.  “We continue to believe that this level of investment is both necessary and will have the greatest and swiftest impact on job creation,” Orfeo said, adding that NACWA supports having a portion of the stimulus funds be allocated in the form of grants. 

The committee also expressed particular interest in NACWA’s efforts to establish a trust fund, asking about funding sources.  Orfeo responded that the General Accountability Office (GAO) is about to release a study that looks at trust fund revenue sources and that NACWA looks forward to working with the committee to come up with an equitable plan for financing a clean water trust fund. 

The Association is moving forward with plans to develop a detailed analysis on the implementation of the final stimulus package and how utilities will be able to access the funds for their projects.  Also planned are one or more web seminars featuring state officials – as well as congressional staff – to provide public member agencies with information and allow them to ask questions on the implementation of the stimulus bill.  Both the analysis and the web seminar are slated for soon after the stimulus bill becomes law – anticipated to take place in mid-February.  Additional information will be made available in upcoming communications.  NACWA also will be sending out a Legislative Alert (LA 09-02) Monday detailing the marked up stimulus bill.

For his part, President Obama called leaders from both parties to the White House today to urge their support for the stimulus package.  Additional developments will be forwarded to NACWA’s membership as they are available.

House Appropriations Committee Advances Economic Stimulus Bill

The House Appropriations Committee approved the $358 billion federal spending portion of the American Recovery and Reinvestment Act of 2009 Jan. 21 in a partisan vote of 35-22.  This section of the $825 billion package includes $6 billion for the Clean Water State Revolving Fund (CWSRF); $2 billion for the Drinking Water State Revolving Fund (DWSRF); and $3.8 billion for rural water and wastewater systems as well as other funds for water-related projects.  NACWA issued Legislative Alert 09-01 with more details, including language from the draft bill. 

During the Appropriations markup, several Republicans sought to cut spending by about a third or shift money from “green” programs to more traditional infrastructure projects, including wastewater.  Many also expressed skepticism about whether the new spending would actually create jobs quickly and help the economy.  NACWA is working closely with key congressional staff and other stakeholder groups to address these issues and improve the legislation as it moves forward.  NACWA’s understanding is that key provisions of the bill are largely unchanged, but provisions for labor wages were strengthened and language requiring the use of U.S. steel and possibly other U.S. products was added.

NACWA Works with Key Senators to Increase Stimulus Funding

NACWA recently worked with American Rivers and the office of Sen. Ben Cardin (D-Md.) on a “Dear Colleague” letter seeking increased funding levels for water infrastructure in the Senate stimulus package.  The letter to Senate leadership and the chair and ranking member of the Senate Appropriations Committee asks that economic stimulus legislation in the Senate contain at least $32 billion for water and wastewater infrastructure.  These funds would be allocated such that $20 billion would be for ready-to-go wastewater infrastructure projects, $10 billion for ready-to-go drinking water infrastructure projects and an additional $2 billion in grants for water efficiency projects.  Moreover, the letter asks that the economic recovery legislation contain provisions waiving state matching requirements and allow for the funds to be distributed in the form of grants or grant equivalents.  The letter was sent Jan. 16 and also included signatures from 11 key Democratic senators.

Senate Confirms Lisa Jackson as EPA Administrator, Nancy Sutley to Head CEQ

Lisa Jackson, the former head of New Jersey’s Department of Environmental Protection, was confirmed by the Senate last night as administrator of EPA.  The Senate also confirmed Nancy Sutley to be the director of the White House Council on Environmental Quality.  Their confirmation had been delayed for a day while questions were addressed about the role former EPA Administrator Carol Browner will have in her new position in the White House as the energy and environment “czar.”  Sen. John Barrasso (R-Wyo.) placed the hold on Jackson’s confirmation until his concerns, which he raised at Jackson’s Jan. 15 confirmation hearing, were addressed.  According to press reports, he received assurances that he and Browner would meet next week to discuss the matter.  He was specifically concerned about how an issue would be resolved if Jackson and Browner disagreed.  Jackson said at the hearing that the “EPA administrator is bound by law to uphold the laws that list the EPA administrator as the official to implement them. And so I will take very seriously my legal responsibilities to enact and uphold and implement the laws that Congress puts forward for the American people.”

In a related matter, White House Chief of Staff Rahm Emanuel sent a memo to all agency heads directing them to freeze all regulations issued in the final days of the Bush administration in order to provide time for Obama’s appointees to review them.  In addition, the memo urged agency heads to extend the effective dates of regulations that have been published recently, but not yet taken effect.  None of the environment regulations covered by the directive appear to impact clean water agency operations.