The Senate Environment and Public Works Committee approved legislation May 14 that would authorize $38.5 billion over five years for state clean water and drinking water revolving funds and other programs to repair infrastructure and improve water quality.
The Water Infrastructure Financing Act (S. 1005) was approved by a 17-2 vote.

It includes $20 billion for the clean water revolving fund, which has not been reauthorized since 1987, and $14.7 billion for the drinking water state revolving fund, which has not been reauthorized since 1996 (88 DEN A-12, 5/11/09).

The legislation would authorize $1.85 billion over five years in grants to address combined sewer overflows and $60 million annually over five years to states and municipalities to reduce lead in drinking water. In addition, the bill includes $45 million over five years for EPA's WaterSense program, a voluntary water conservation program similar to the agency's Energy Star program.

It also would authorize $250 million for watershed improvements and $50 million for a nationwide grant program to address agriculture-related water quality issues.

The legislation includes incentives for green infrastructure projects and to help low-income communities. A research and incentive program would promote water conservation, efficiency, and recycling.

“This is huge, what we have just done here … across party lines,” said Committee Chairman Barbara Boxer (D-Calif.), who vowed to work with Senate leaders to pass the bill on the Senate floor.

“The nation's [water] infrastructure is literally crumbling,” she said.

“This is the way the system ought to work,” added Sen. Mike Crapo (R-Idaho), a bill co-sponsor who has been working on the issue since 1998. He said the legislation addresses “the most significant environmental issue” facing the country.

The House of Representatives passed a water infrastructure bill March 12 that would authorize $18.5 billion over five years to improve water quality. The Water Quality Investment Act of 2009 (H.R. 1262) would authorize $13.8 billion for the clean water state revolving fund. It did not include funding for the drinking water revolving fund (47 A-13, 3/13/09).

Five Republicans joined 12 Democrats in voting for the Senate bill. Republican Sens. Lamar Alexander (Tenn.) and John Barrasso (Wyo.) voted against the measure, but did not comment on their reasons.

State Needs to Be Considered
Sen. James Inhofe (R-Okla.), the committee's ranking minority member and a bill co-sponsor, said needs have changed since the state revolving funds were last reauthorized.

The bill would change the formula used to distribute funding to states for the clean water state revolving fund.

Funding allocations through the new clean water state revolving fund formula would be based primarily on the Environmental Protection Agency's 2004 “needs survey,” which includes data on national wastewater infrastructure needs. EPA's 2004 Clean Watersheds Needs Survey report to Congress estimated the total estimated publicly owned treatment works needs to be $202.5 billion over a 20-year period.

“The formula under the drinking water revolving fund is still good, but the clean water SRF formula has fallen behind the times,” Inhofe said.

The new formula “provides more funds for smaller states,” he said. “And, thanks to the authorization level provided by the bill, it will mean more dollars for every state.”

The committee passed by voice vote an amendment offered by Sen. George Voinovich (R-Ohio) that would require EPA within six months of the bill's enactment to update its 1997 combined sewer overflow guidance. The guidance is used to develop and determine the financial capability of communities to implement a clean water infrastructure program.
Under this provision, EPA would have to conduct public outreach and consult with states in drafting the guidance.

Study Would Address Pharmaceuticals
Another amendment, sponsored by Sen. Kirsten Gillibrand (D-N.Y.), would require a study on the presence of pharmaceuticals and personal care products in waters of the United States and an evaluation of their risks.

EPA would enter into an agreement with the National Academy of Sciences to carry out the study, which would include potential effects of pharmaceuticals and personal care products in water on human health and aquatic wildlife.

The committee also approved by voice vote an amendment offered by Sen. Ben Cardin (D-Md.), which would apply the prevailing wage requirements of the Davis-Bacon Act to infrastructure projects funded through the bill. The act requires that local prevailing wages be paid on projects receiving federal funds.

Inhofe opposes the provision, which is expected to be debated when the bill reaches the Senate floor.

In previous years, Crapo noted, the two biggest hurdles to bill passage have been the Davis-Bacon Act provision and the funding formula. The agreed-upon formula included in the bill is “needs-based, but also protects the states,” he said.

Cardin said 100 percent of a state's “relative needs” will be met under the formula floor, although all states' actual needs may be greater.
“The formula is going to please a lot of people,” Boxer said.

The legislation includes a 1.5 percent tribal set-aside for water infrastructure. Sen. Tom Udall (D-N.M), offered, then withdrew, an amendment to raise this to 3 percent, noting that many Native American communities often lack even basic water infrastructure. In some cases, he said, wastewater is stored in open sewage lagoons, which can pose a public health hazard.

These communities have higher rates of gastrointestinal illnesses and lower life expectancies, Udall said.

Boxer pledged to “work together” to address the problem, but said she could not support the increase. “Never before have we had a set-aside for the Native American community. This is a first,” she said, noting the House bill included 0.5 percent.

Native American communities also could tap into the bill's new authorization for technical assistance, Cardin noted, and Boxer said 3 percent of the allotment for technical assistance for the drinking water revolving fund would be set aside for Native Americans.

The National Association of Clean Water Agencies in a statement pointed to estimates by EPA, the Government Accountability Office, and the Water Infrastructure Network of an up to $500 billion gap over 20 years between what is needed to upgrade and repair the nation's wastewater infrastructure and how much is being spent.

Communities currently bear 95 percent of the cost, even as demands increase, according to NACWA.

NACWA Executive Director Ken Kirk, in a statement, praised the committee for moving quickly to pass a state revolving fund bill, and for significantly increasing funding.

The association praised the bill's provision of incentives for disadvantaged communities and for promoting green infrastructure.
NACWA also expressed support for bill language that would require EPA to review its “outdated” combined sewer overflow guidance for financial capability assessment and schedule development.

By Linda Roeder