ARCHIVE SITE - Last updated Jan. 19, 2017. Please visit www.NACWA.org for the latest NACWA information.
ARCHIVE SITE - Last updated Jan. 19, 2017. Please visit www.NACWA.org for the latest NACWA information.
On Jan. 21, the House Appropriations Committee, chaired by Congressman David Obey (D-Wis.), approved the $358 billion federal spending portion of the American Recovery and Reinvestment Act of 2009. The infrastructure sections of the bill contain $63.5 billion in overall infrastructure spending with nearly 20%, or approximately $11.8 billion, targeted for community water and wastewater infrastructure projects. The Senate Appropriations Committee released a summary of its $365 billion spending proposal on Friday, Jan. 23. The draft spending package includes $6 billion for wastewater and drinking water systems through the Environmental Protection Agency's Clean Water and Drinking Water State Revolving Funds, but does not provide any additional detail. President Obama also released details of his economic recovery plan this week, which includes funding for 1,300 wastewater projects, 380 drinking water projects, and 1,000 rural water and sewer projects. Congress hopes to finish its bill by the February President’s Week recess, in line with Obama’s request for the legislation to be on his desk no later than Feb. 16. It remains to be seen if that deadline will be met as differences between the two bills may necessitate a House-Senate conference negotiation. Once a Senate bill with more detail is introduced, NACWA will send a similar Alert to this one to the membership.
General Requirements for the House Recovery Funding PackageUse It or Lose It: The proposal is structured to ensure both a quick infusion of resources and that funds are available to sustain these activities over the next two years. The measure would require Clean Water State Revolving Fund (CWSRF) dollars to be apportioned to the states no later than 30 days after enactment. States must then have contracts or other binding commitments awarded to communities for half of the funds not later than 1 year after enactment, or not later than 9 months after states actually receive the money if later. States are required to enter into binding commitments for the remainder of the money within two years of enactment, or not later than 21 months after they actually receive the money. Funds not committed in accordance with these requirements are returned to the federal government for redistribution to other states that are able to achieve binding commitments within 120 days after the reallocation. There is an additional provision that encourages States to distribute half of the first year funding to communities that can initiate projects within 120 days of enactment.
Breakdown of Funding Opportunities in the Recovery PackageU.S. Environmental Protection Agency (EPA): $8 billion total
U.S. Department of Department of Agriculture (USDA): $4.236 billion totalThe measure would provide $4.236 billion for natural resource conservation and rural development programs. Of the total, $3.836 billion is dedicated to rural water and waste projects through the Rural Utility Service grant and loan programs, and $400 million is provided for watershed rehabilitation and flood prevention programs through the National Resources and Conservation Service. There is no state matching requirement.
U.S. Army Corps of Engineers: $4.5 billion totalThe measure provides $4.5 billion to the Corps of Engineers for construction, operation and maintenance of the nation's flood control and navigation infrastructure, as well as the construction and maintenance of environmental restoration projects. The funding will be used to accelerate the completion of ongoing capital improvement projects and preference will be given to initiate new elements of existing projects that can be built within the next year.
U.S. Department of the Interior: $500 million totalThe measure provides $500 million to “manage, develop and protect water resources in the western portion of the United States.” The funding would be disbursed in the form of loans, and would provide for capital improvement projects under the jurisdiction of Bureau of Reclamation. At least $126 million is of these funds would be used for water reuse and recycling projects, and not less than $80 million would be used on water intake projects and treatment facilities.
U.S. Department of Housing and Urban Development (HUD): $1 billion totalThe measure provides $1 billion in funding for HUD’s Community Development Block Grants (CDBG) program. While much of this money would be targeted for local government housing programs to stem the number of foreclosures, it could also be used by local governments for critical services and infrastructure needs. The funding provided in this legislation will be distributed through the existing formula and is required to adhere to an accelerated timeframe. Again, these dollars could potentially provide significant infrastructure dollars for local governments.
U.S. Department of Energy (DOE): $3.5 billion totalThe measure would provide $3.5 billion for energy efficiency and renewable energy block grants through DOE. Modeled after the Community Development Block Grant program, the Energy Efficiency and Conservation Block Grant program would provide grants to cities, counties and states for innovative practices to achieve greater energy efficiency and lower energy usage. These grants fund local initiatives that many wastewater utilities can, or in many cases already have, undertaken, including building and home energy conservation programs, energy audits, fuel conservation programs, building retrofits to increase energy efficiency, and alternative energy programs. Cities with a population of at least 35,000 or one of the 10 most populous cities in the state would be eligible for the block grant.
NACWA Works to Increase Grant Funding, Address Affordability Issues in the SenateNACWA’s priorities for the recovery bill fared well in the draft House legislation. However, there is still significant work to be done in the Senate:
Public Agency Members Urged to Make the Case for GrantsThe release of the House draft bill is only the beginning of the vital process of getting stimulus legislation passed. NACWA will continue to advocate for ensuring that funding for wastewater infrastructure projects remain a significant part of the overall stimulus package as it progresses through the House and Senate, and member agencies are strongly encouraged to talk to their members of Congress about their funding needs and the importance of ensuring the stimulus bill contains grants that can be quickly accessed to enable critical infrastructure projects to move forward. |
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Winter Conference
Next Generation Compliance …Where Affordability & Innovation Intersect
February 4 – 7, 2017
Tampa Marriott Waterside Hotel
Tampa, FL