Obama Signs Stimulus, With Billions For Water, Water

Tuesday, February 17, 2009

DENVER — President Barack Obama signed into law on February 17 the $787 billion economic stimulus measure, which includes billions of new federal dollars for water infrastructure projects and was described in an MSNBC.com report as “one of the most costly pieces of legislation in US history.”

Although exact details of which water and wastewater projects would be funded were not yet available, the White House set up a Web site, www.recovery.gov, that it says will allow the public to track where the money will be spent.

Obama enacted the law at the Denver Museum of Nature & Science, in the headquarters city of the American Water Works Association (AWWA). In a February 17 press release, the AWWA said the stimulus will provide $2 billion for drinking water projects and $4 billion for wastewater projects.

Organizations representing water and wastewater systems throughout the United States generally had positive reactions to the new legislation.

In its statement, AWWA Executive Director Gary Zimmerman called the stimulus “an important step forward in addressing a growing national challenge. The more than $6 billion committed for water and wastewater needs will push forward projects critical to our nation’s public health protection, fire protection, economic strength and our overall quality of life.”

The money allocated in the new law for water and wastewater represents only “a tiny fraction” of the nation’s $300 billion-plus estimated backlog in water infrastructure projects, Zimmerman said, adding, “AWWA is optimistic that the investment in water will jump-start many critical projects and create hundreds of thousands of new jobs. From this perspective, the glass is certainly half full.”

The Association of Metropolitan Water Agencies, which represents large public water systems, told its members in a February 16 memo that the $2 billion and $4 billion amounts would be distributed through the State Revolving Funds (SRF) which have funded many such projects in the past. It noted that water projects that will benefit from the new money must appear on state priority lists and must be ready to proceed to construction within one year of the law’s enactment.

The AWWA said the funds “will be distributed through State Revolving Loan Fund programs with at least half being issued as grants, negative-interest loans or similar no-cost financing tools.” AWWA will hold a free webcast on February 26 at 1 p.m. Eastern time to help its members learn how to apply for and secure the stimulus funds.

The National Association of Clean Water Agencies (NACWA), which represents wastewater treatment agencies, said in a statement February 13 that it “applauds Congress for the agreement reached on the American Recovery and Reinvestment Act of 2009” and is especially pleased with the $4 billion set aside for wastewater projects. NACWA urged the government to set up a “clean water trust fund” to provide a sustainable source of water-projects funding, in the same way that such funds now benefit highways and airports.

The National Rural Water Association, which represents small rural water systems, said in a February 16 statement that the legislation also includes $1.38 billion for grants and loans through the US Department of Agriculture, some of which will benefit rural water programs.

AWWA also said in its statement: “We applaud Congress’s decision to waive requirements that states provide matching funds, which would be difficult in today’s economic climate and will speed distribution of funds. It also makes good sense to give priority to projects that can begin construction within a year, giving utilities necessary time to complete construction plans or obtain environmental permits.”

In remarks while signing the bill, Obama said Americans should not expect a quick economic turnaround from the legislation and that the new stimulus money “doesn’t constitute all we’re going to have to do to turn our economy around,” according to MSNBC.

To read the full MSNBC.com report, click here.

To read the full AWWA press release, click here.

To read the full AMWA press release, click here.

To read the full NACWA statement, click here.

To learn more about the NRWA, click here.

For related information, click here.