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.

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

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

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

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 in S.1005, the Water Infrastructure Financing Act of 2009. S. 1005 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 the current State allocation formula for in the Clean Water SRF in the S. 1005. Largely due to AGC and WIN Coalition lobbying efforts, S. 1005 does not include Buy American provisions included in HR. 1262 which are identical to requirements in the American Recovery and Reinvestment Act.

Senate EPW staff has indicated that the Senate may consider of S. 1005 for a vote before the August recess and it is crucial that AGC members write their Senators and urge them to bring this bill up for a vote in the Senate. Click here to visit the AGC Legislative Action Center and write your Senator.

AGC of America will host our annual Joint Highway and Utility Contractors Issues meeting November 12-14, 2009 at the PGA  Resort in West Palm Beach, Florida. Registration and agenda information will be available soon!

AGC of America would like to recognize the AGC of St. Louis for utilizing Liquid Assets: The Story of Our Water Infrastructure to raise awareness about local water infrastructure needs.  In addition to working with various regional partners to support the broadcast of Liquid Assets, AGC of St. Louis has worked with other groups, including the Missouri American Water, to establish a coalition to highlight local water infrastructure needs. To learn more about this effort please click here.

If your company or Chapter would like to learn more about how to leverage Liquid Assets in your community, please click here.

For a copy of the Liquid Assets DVD or additional information contact Perry L. Fowler at fowlerp@agc.org or (703) 837-5321.

On Thursday, June 18, the Senate Environment and Public Works Committee passed S. 787 the Clean Water Restoration Act.  The legislation was offered as an amendment sponsored by Chairwoman Barbara Boxer (D-Calif.), Senator Max Baucus(D-Mont.) and Senator Amy Klobuchar (D-Minn.). Republican committee members criticized the bill as a substantial expansion of federal jurisdiction over water by removing the term "navigable" waterways.  Ranking Member Senator James Inhofe (R-Okla.) and Senator John Barasso (R-Wyo.) offered multiple unsuccessful amendments to address "negative impacts" on rural and agricultural communities.

In a June 17, 2009, letter to EPW Committee members, AGC opposed this legislation because it gives the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers jurisdiction over all wet areas-however remote or intermittent-and over all activities (e.g., construction) affecting those waters. Consequently, the bill would require construction contractors and project owners to obtain and be regulated by federal Clean Water Act permits far more frequently than is currently required.

AGC will continue to fight this legislation as it is considered by the full Senate, which is uncertain. Senators Mike Crapo (R-Idaho) and Jim Inhofe (R-Okla.) have placed "holds" on the legislation, making it unlikely that it will see floor time in the near future. Similar legislation in the House of Representatives has yet to be introduced, however T&I Chairman James Oberstar (D-Minn.) has indicated his support for similar legislation in the House of Representatives.

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

AGC has compiled a chart that contains information about EPA-funded stimulus projects on a state-by-state basis.  To date the EPA has distributed over $5.2 billion dollars to states including $864 million for American Indian and Alaska Native communities.  Click here to download a copy of the chart, which includes state intended use plans where available. Additionally, the EPA has recently identified Tribal Clean and Drinking Water Projects totaling $90 million dollars.

Tribal Clean Water Projects (PDF)
Tribal Drinking Water Projects (PDF)

Unfortunately AGC finds no evidence that a significant amount of contracts funded by EPA stimulus dollars are currently soliciting bids for a variety of reasons, including confusion about new regulatory requirements like the Buy American provisions and "green infrastructure" requirements that have not typically applied to the SRF programs. If you have information about issues causing delays in your stat,e it is critical that you communicate this information to AGC of America or your local AGC Chapter.  For additional information on the stimulus, please visit the AGC of America Stimulus Web site by clicking here.

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

On June 22, AGC submitted to the Office of Management and Budget (OMB) written comments for consideration in the interim final regulation on federally-assisted projects. These projects would include building, highway and municipal and utility construction projects funded by the stimulus. 

In addition, OMB that same day published Implementing Guidance for the Reports on Use of Funds Pursuant to the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). This guidance details the reporting requirements included in Section 1512 of the Recovery Act for recipients of grants, loans and other forms of assistance. The reports required by Section 1512 will be submitted by recipients beginning in October 2009 and will provide information to the government, such as:

• Who is receiving Recovery Act dollars and in what amounts?
• What projects or activities are being funded with Recovery Act dollars?
• What is the completion status of such projects or activities and what impact have they had on job creation and retention?

The reporting framework in the referenced guidance has been updated and enhanced to capture additional spending data from prime recipients and sub-recipients of federal financial assistance Recovery Act awards. Further, OMB has deployed a nationwide data collection system at the website www.FederalReporting.gov that will reduce the information reporting burden on recipients by simplifying reporting instructions and providing a user-friendly mechanism for submitting required data.

To read AGC's comments to OMB, click here.
To read the OMB Memorandum and Guidance Document click here.
To view the Recipient Reporting Data Model - Template, Data Dictionary, XML Schema click here.
To read the List of Programs Subject to Recipient Reporting, click here.

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

The American Recovery and Reinvestment Act of 2009 (ARRA) provides significant funding for states to finance high priority infrastructure projects needed to ensure clean water and safe drinking water. The Act also includes "Buy American" provisions that require Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) projects to use domestic iron, steel, and manufactured goods. 

The U.S. Environmental Protection Agency (EPA) hosted a webcast on June 22 that discussed how the ARRA Buy American provisions will affect the implementation of CWSRF and DWSRF projects. The content discussed EPA's expectations on the part of the recipient, procedures for requesting a waiver, and the content of EPA's April 28 Memorandum on Implementation of Buy American Provisions.

Download a PDF of the slides from the webcast here.

View the webcast here.

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

On June 29, 2009, the United States Government Accountability Office (GAO) released its report, "Clean Water Infrastructure: A Variety of Issues Need to Be Considered when Designing a Clean Water Trust Fund."  The long awaited report from the GAO acknowledges that our Nation faces tremendous challenges in replacing and rehabilitating our water infrastructure, with estimated needs between $400 and $600 billion over the next 20 years for safe drinking water and wastewater treatment infrastructure.

The GAO report does not make any specific recommendations on how a trust fund would be administered, or which revenue sources are most viable.  However,  it does outline issues that need to be addressed in establishing a Clean Water Trust Fund and identifies potential funding options including excise taxes on water pollutants and water-intensive industries that could generate approximately $10 billion annually. The taxes would apply to beverages, pharmaceuticals, pesticides, flushable products and water appliance industries. In researching its report, the GAO reached out to 28 industry associations including AGC of America, the Internal Revenue Service and the U.S. Environmental Protection Agency (EPA).

AGC and the Water Information Network (WIN) Coalition have endorsed the concept of a Clean Water Trust Fund to create a long-term, sustainable, off-budget source of funding for water infrastructure to finance construction and maintenance of this critical infrastructure.

On July 15, 2009, the House Transportation and Infrastructure Subcommittee on Water Resources and Environment is scheduled to conduct a hearing titled "Opportunities and Challenges in the Creation of a Clean Water Trust Fund."  AGC anticipates introduction of "trust fund" legislation by Congressman Earl Blumenauer (D-Ore.) in the near future. Click here to view one-page summary of the pending Blumenauer legislation, "the Water Protection and Reinvestment Act." To view as a PDF, click here.  To view as a Word Document, click here. 

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