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WATER: Compromise Slashes Stimulus Wastewater Treatment Funding

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Katherine Boyle, E&E reporter

Lawmakers sliced away billions of dollars for wastewater treatment and clean drinking water initiatives in the final $790 billion economic recovery package.

The conference bill provides $6 billion for local clean water and drinking water infrastructure improvements, $2 billion less than the House-passed version of the stimulus.

The final measure, like the Senate package, provides $4 billion for the Clean Water State Revolving Fund, a low-interest wastewater loan program that helps states construct water treatment facilities, and $2 billion for the Drinking Water State Revolving Fund. The House version had provided $4 billion for the Clean Water State Revolving Fund.

The change is unlikely to go over well with Democratic House members who had already complained about funding levels in their version of the bill, saying allocations for water and transportation infrastructure were too low to fund deferred maintenance, let alone to launch new projects. Nevertheless, a majority is expected to vote in favor of the bill when the House takes it up today.

Susan Bruninga, spokeswoman for the National Association of Clean Water Agencies, said utilities are thrilled to be receiving the $4 billion for the Clean Water State Revolving Fund but noted additional funding is still needed.
Bruninga said the nation faces a $300 billion to $500 billion financing gap for wastewater infrastructure over the next 20 years. "We're still going to work with Congress to get a long-term, sustainable funding source," she said. "We've got to get a Clean Water Trust Fund."

Environmentalists also said the money provided for the Clean Water State Revolving Fund was not enough given the nutrient pollution problems plaguing rivers, streams and lakes across the country.

Doug Siglin, federal affairs director for the Chesapeake Bay Foundation, said the federal government needs to step up in order to bring the bay back into ecological balance.

"There are numerous sources of pollution to the Chesapeake Bay, and two of the biggest ones are still nitrogen pollution coming from wastewater treatment plants and nitrogen pollution coming from urban and suburban stormwater," he said. "While we're grateful for the amount in the State Revolving Fund in the stimulus package, it's not yet enough to do the job completely."

Water infrastructure spending

Funding for wastewater system installations and upgrades for rural communities also declined slightly in the conference package. The agreement provides $1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities, a $120 million funding drop when compared with the House bill.

Funding for the Army Corps of Engineers stayed at $4.6 billion, the same as the Senate bill. The House had proposed $4.5 billion.

Planning and construction for water infrastructure projects and maintenance of existing water infrastructure will consume the bulk of the funding, helping decrease the Army Corps' $61 billion construction backlog (E&E Daily, Jan. 16).

The conference package also contains $1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and bolster water supplies in Western localities affected by drought. That amount marks a $500 million increase over the House allocation but is $400 million less than the Senate agreed to.

The conference bill provides $6 billion for environmental cleanup of former weapons production and energy research sites and another $1.2 billion program for environmental cleanup initiatives like the Superfund program. The House package contained $800 million for Superfund site cleanups, targeted toward ready-to-go projects on the National Priorities List and to accelerate progress at sites currently under construction. The Senate bill provided $600 million for Superfund.
 

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