BNA 12/17/2009

The House of Representatives approved a job-creation bill Dec. 16 that would provide $2 billion for drinking water and wastewater infrastructure projects.

The bill now goes to the Senate, where it is expected to be taken up in January.

The funding is included in the Jobs for Main Street Act of 2010 (H.R. 2847), approved by a vote of a 217-212, which would redirect $75 billion in Troubled Asset Relief Program savings to infrastructure and job investments (239 DEN A-10, 12/15/09).

Of this amount, $1 billion would be allocated to the Environmental Protection Agency's clean water revolving fund and $1 billion would be allocated to the agency's Safe Drinking Water Act revolving fund.

Under the bill, each state would have to use at least 50 percent of its funds to provide subsidies to forgive principal payments and grants to make it easier for more communities to access program funds.

In addition, states would have to use at least 20 percent of the funds for projects to address green infrastructure, including water or energy efficiency improvements or other environmentally innovative activities. The language is similar to a provision in the American Recovery and Reinvestment Act ( Pub. L. No. 111-5), which was enacted earlier this year.

The $2 billion water infrastructure infusion would help more than 670 communities address the growing backlog of sewer and water repairs and rehabilitation, the bill says.

EPA would retain up to 1 percent of the funds for management and oversight. Infrastructure funding under the bill would not be subject to the matching or cost-sharing requirements of the Clean Water Act or Safe Drinking Water Act.

Funds may be used to refinance or restructure debt obligations of eligible recipients only when the debt was incurred after Oct. 1, 2009.

Funding would have to be allocated to state revolving funds for projects not under contract or construction within eight months of the act's enactment. Priority would be given to projects on a state priority list that are ready to proceed to construction within 12 months of enactment.

Linda Eichmiller, executive director of the Association of State and Interstate Water Pollution Control Agencies, told BNA Dec. 16 that while she is glad the legislation recognizes the role water infrastructure projects play in creating jobs, the eight-month period “is an awfully short time frame.”

She cited the time involved for states to submit projects to EPA for approval, to locate green project eligible for funding, and for localities to secure bids.

Susan Bruninga, director of public affairs for the National Association of Clean Water Agencies, told BNA Dec. 16: “Obviously we are pleased with any additional funding to help us address the needs in the water and wastewater community. But the needs are very large and the $1 billion is not as much as we had hoped for.

“We will seek increased funding when the bill goes to the Senate. We're still looking at needs in the neighborhood of $20 billion,” Bruninga said.

The legislation also would provide $715 million to the U.S. Army Corps of Engineers for environmental restoration, flood protection, hydropower, and navigation infrastructure projects and $100 million to the Interior Department's Bureau of Reclamation for water and related resources.

Of the $715 million for the corps, at least $30 million would have to be spent on water-related environmental infrastructure assistance.

In addition, the bill states, up to $30 million of the funds for the corps may be transferred to authorized projects on the Mississippi River and its tributaries.

Corps funds would have to be allocated to programs that have already received funding and that are selected in order of priority, that can be commenced quickly, that will create immediate employment, and that are located in states with high unemployment.

According to bill language, the corps has a construction backlog of $61 billion.

Of the $100 million to be directed to the Bureau of Reclamation, at least $26 million would have to be used for water reclamation and reuse projects. Bureau of Reclamation projects are intended to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to areas affected by drought.

In urging passage on the House floor, Speaker Nancy Pelosi (D-Calif.) said the legislation is all about “jobs, jobs, jobs, jobs.”

“It doesn't do everything we want but it's paid for,” Pelosi said.

In addition to the $75 billion in TARP savings directed to fund infrastructure and job investments, H.R. 2847 would provide $79 billion for “emergency relief for families hurt by the economy” to be used for unemployment insurance, health insurance, small business loans, and tax credits. It also contains $2 billion that would be used to restore funding for a Department of Energy loan guarantee program that had been tapped for the “Cash for Clunkers” program to provide consumer rebates for purchase of fuel-efficient autos. (See related story in this issue.)

By Linda Roeder