Rep. Bill Pascrell, Jr. (D-N.J.) will speak at an event next week to discuss several legislative proposals to address the U.S. EPA's estimated $450 to $650 billion investment gap in clean and drinking water infrastructure over the next twenty years. 

Rep. Pascrell is the sponsor of H.R. 537, the Sustainable Water Infrastructure Investment Act of 2009, which proposes removing the state volume cap of tax-exempt private activity bonds (PAB), which are a used by state and municipal governments to partner with a private party to meet a public need.  PABs are one of the most useful tools of the federal government in providing long-term, capital-intensive infrastructure projects. The cap exists in each state to allow Congress to control the total volume of the tax-exempt bonds.

Rep. Pascrell will be joined at the event by Sen. Ben Cardin (D-Md.), Rep Anna Eschoo (D-Calif.), several other stakeholders in the water infrastructure arena, and AGC's own chief economist, Ken Simonson. Speakers will focus on the projected water infrastructure needs, diversifying methods of financing, and the effect of investing in water infrastructure on jobs.

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org.

Today the House of Representatives approved the conference report providing appropriations for the Environmental Protection Agency, Department of the Interior and other agencies. The Department of the Interior, Environment, and Related Agencies Appropriations Act, 2010 passed on a party line vote (247-178) and included significant increases for EPA programs, including a $2 billion increase over FY09 SRF programs.  

The bill provides $3.6 billion federal assistance for communities' water infrastructure programs including $1.38 billion for the Drinking Water State Revolving Loan Fund and $2.1 billion for the Clean Water State Revolving Fund, which will be allocated to states under existing distribution formulas. In addition, $157 million was earmarked for specific municipal projects.

Similar to the Recovery Act, this bill requires that 30 percent of funds be distributed in the forms of grants, loan principal forgiveness or negative interest loans for communities with the greatest needs. Additionally, 20 percent of the funds must be used by the states for projects to address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities. The bill also includes Davis-Bacon prevailing wages under a compromise agreement that will apply these wages for a period of one year. The bill does not include Recovery Act "Buy American" requirements.

AGC has long advocated for increased appropriations and authorization levels to meet the nation's unmet needs for water infrastructure.

The Senate is expected to vote on and pass the conference report in the near term. To view a complete copy of the conference report click here.

The Senate approved, 80-17, a $33.5 billion Energy and Water Appropriations package for FY 2010 and sent it to President Obama for his signature.  The bill provides $5.4 billion in funding for the FY2010 Army Corps of Engineers Civil Works program, including:   

• Construction - $2.031 billion
• Operation and Maintenance - $2.4 billion
• Investigations - $160 million
• Mississippi River & Tributaries - $340 million
• Regulatory - $190 million
• FUSRAP - $134 million

The Bureau of Reclamation would receive $1.13 billion, slightly more than the House bill figure of $1.08 billion. This represents an approximately $38 million decrease from FY 2009, but an approximate $17 million increase above the administration request.

AGC will continue to advocate for increased investment in the water resources development missions of the Corps of Engineers and the Bureau of Reclamation as this legislation continues through the Congress.

To view a copy of the final Conference Report, click here.

On September 30, Senate and House Appropriators agreed to a Conference Report funding the U.S. Army Corps of Engineers - Civil Works Program at a level of $5.4 billion for FY 2010. AGC sent a letter to Appropriators calling for a minimum of $5.5 billion, citing the current economic climate, high unemployment in the construction industry and the strong impact infrastructure investment has on our economy. Although the Conference Report included a slightly lower figure, new construction starts were funded for the first time in several years on a number of new key projects.

Senate Environment and Public Works Committee staff have indicated that S. 1005, the Water Infrastructure Financing Act of 2009, will not come up for a vote before for the full Senate until legislators return from the August recess in September.

S.1005 authorizes $39.191 billion for EPA water infrastructure programs over the next five years, including: $20 billion for the Clean Water State Revolving Fund Program and $14.7 billion for the Drinking Water State Revolving Fund Program. Annual dollars authorized for EPA SRF Programs are detailed in the chart below.

Other key programs funded in the bill include $1.8 billion for Sewer Overflow Grants, $1.43 billion for the Critical Drinking Water Infrastructure Grant Program, grants for reducing lead in drinking water and technical assistance for small, rural and disadvantaged communities.

AGC members are encouraged to contact their Senators to urge support of S.1005 using AGC's Legislative Action Center.

Key senate staff has indicated that S. 1005, the Water Infrastructure Financing Act of 2009, could be up for a vote for the full Senate's consideration as early as next week. On Monday, July 27, AGC sent a letter to Senators indicating its support for S. 1005.  Click here to view the letter.

S.1005 authorizes $39.191 billion for EPA water infrastructure programs over the next five years, including: $20 billion for the Clean Water State Revolving Fund Program and $14.7 billion for the Drinking Water State Revolving Fund Program.

Other key programs funded in the bill include $1.8 billion for Sewer Overflow Grants, $1.43 billion for the Critical Drinking Water Infrastructure Grant Program, grants for reducing lead in drinking water and technical assistance for small, rural and disadvantaged communities.

S.1005 is the result of a true bi-partisan effort in the Senate Environment & Public Works Committee and AGC members are encouraged to contact their senators and urge their support of S.1005 by using the AGC Legislative Action Center.

Key Senate staff has indicated that S. 1005, the Water Infrastructure Financing Act of 2009, could be up for a vote for the full Senateâ€^TMs consideration as early as next week. S.1005 authorizes $39.191 billion for EPA water infrastructure programs over the next five years, including: $20 billion for the Clean Water State Revolving Fund Program and $14.7 billion for the Drinking Water State Revolving Fund Program.

Other key programs funded in the bill include $1.8 billion for Sewer Overflow Grants, $1.43 billion for the Critical Drinking Water Infrastructure Grant Program, grants for reducing lead in drinking water and technical assistance for small, rural and disadvantaged communities.

S.1005 is the result of a true bi-partisan effort in the Senate Environment & Public Works Committee and AGC members are encouraged to contact their senators and urge their support of S.1005 by using the AGC Legislative Action Center.

On the eastern front of the U.S. Capitol Representative Earl Blumenauer (D-Ore.) announced the introduction of bipartisan legislation to establish a Water Trust Fund. The "Water Protection and Reinvestment Act," H.R.3202, establishes a $10 billion annual fund for repairing America's corroded pipes and overburdened sewer systems, which pose serious health, environmental and security consequences.

For a summary of the legislation click here.

Establishing a "Trust Fund" for clean water and drinking water infrastructure is a top legislative priority for AGC of America and will address the serious gap in water infrastructure investment, which is estimated at $400-600 billion dollars over the next 20 years. This legislation is the result of years of work by AGC and the WIN Coalition and we are encouraged that the legislation has finally been introduced.  The goal of H.R. 3202 is to raise at least $10 billion annually thorough a series of user fees on bottled beverages, pharmaceuticals, flushables and other sources

AGC CEO Steve Sandherr participated in the event and stated, "While our water infrastructure is often out of sight and out of mind, failures in the system threaten our health, our environment and our economy. That is why the 33,000 member companies of the Associated General Contractors of America, along with their millions of employees and families, support establishing a Water Trust Fund and doing it now." Read AGC's official statement here

This legislation is subject to the jurisdiction of several congressional committees and AGC will continue to work with the WIN Coalition and other industry and congressional allies to ensure this legislation is successful and based on sound policy

AGC Vice President Kris Young, President and CEO of Miller the Driller in Des Moines, Iowa, testified before the House Transportation and Infrastructure Subcommittee on Water and Natural Resources  regarding the GAO report titled "Opportunities and Challenges in the Creation of a Clean Water Trust Fund."

Young voiced AGC of America's support of a "trust fund" for water infrastructure, and shared a contractor's perspective on the funding challenges that local communities face in replacing and rehabilitating drinking water and wastewater infrastructure. In her testimony, Young stated that often a contractor is not called until disaster strikes, citing frequent infrastructure failures in her local community. Young also pointed out the high unemployment in the construction industry and referenced AGC research on how infrastructure investment spurs economic growth and provides employment for construction workers and numerous other industries.

Young also cited the precedent for using trust funds to tackle national infrastructure priorities and that financing water infrastructure through a trust fund would have several advantages over general fund financing. This is because the funding stream would not be subject to the vagaries of the annual appropriations process, thereby providing the certainty that state and local officials need to commit to long-term infrastructure projects. Additionally, Young stated that the revenue sources for a trust fund must be defensible and supported by the public.

Young also discussed the importance of educating the public about our water infrastructure needs and highlighted AGC's efforts to do so with the Liquid Assets documentary. Several other witnesses including the National Association of Clean Water Agencies, Maryland Department of the Environment, and the American Society of Civil Engineers testified in support of the trust fund concept

For a summary of the hearing content, witness testimonies and video of the hearing, click here.

On March 12, 2009, The U.S. House of Representatives passed HR. 1262, the Water Quality Investment Act of 2009. This bill authorizes $19.4 billion over five years for wastewater infrastructure projects, including $13.8 billion for the Clean Water State Revolving Loan Fund (SRF) and $2.5 billion for the sewer overflow control grants program.  On May 14, 2009, the Senate Environment and Public Works Committee passed companion legislation S.1005, the Water Infrastructure Financing Act of 2009. The Senate bill authorizes $38.9 billion for EPA water infrastructure programs over the next five years, and includes $20 billion for the Clean Water State Revolving Fund Program, $15 billion for the Drinking Water State Revolving Fund Program and $1.85 billion for Sewer Overflow Grants.

New policy in both bills includes language applying Brooks Act qualifications based selection (QBS) for preconstruction design and engineering services with an exemption in S. 1005 for communities of 10,000 persons or less. Both bills also include Davis- Bacon prevailing wage requirements. Key differences between the bills, beyond funding levels, include changes to the current state allocation formula for the Clean Water SRF in the S. 1005. Largely due to AGC and WIN Coalition lobbying efforts, the bill does not include Buy American provisions included in the House version, which are identical to the requirements in the American Recovery and Reinvestment Act that have slowed down the delivery of these important projects.

Senate EPW staff has indicated that the Senate may bring its bill for a full vote before the August recess.  It is crucial that AGC members write their Senators and urge them to support this bill. Click here to visit the AGC Legislative Action Center and write your Senator.