The National Rural Water Association (NRWA) represents approximately 26,696 public water and wastewater utilities in rural communities across the United States. On October 4, AGC Staff and M&U Regional Representative Dick Smailes, Contractors Association of West Virginia member, met with NRWA and other national leaders to discuss opportunities for collaborative efforts with AGC Chapters and members.  In 2009 and 2010, NRWA members will be working to administer $3.8 billion for construction, upgrades and expansions with Recovery Act funding provided through the USDA's Rural Utilities Service. 

For assistance establishing contact with your State NRWA Chapter, please contact AGC M&U Division Director Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

AGC has been active in our efforts to ensure that the "Buy American" requirements of the Recovery Act did not seriously delay $6 billion allocated for drinking water and wastewater projects being administered by the U.S. Environmental Protection Agency (EPA) and $1.4 billion allocated for the USDA's Rural Utilities Service (RUS). Trade agreement exceptions to the "Buy American" requirements in most cases do not flow down to sub-federal entities, such as municipal utility authorities that procure most of these projects.  Unfortunately this new policy has created a great deal of confusion and delays as agencies have been forced to apply "Buy American" for Recovery Act programs where this policy has not previously applied.

AGC has been successful in educating EPA about the about the potential negative impacts of "Buy American" on SRF-funded stimulus projects, including project delays, litigation, bid protests, price gouging and potential criminal penalties and liability if contractors unknowingly incorporate certain materials into projects that either are not domestically manufactured or are of unknown origin, such as valves, gaskets, screws, pipe fittings etc.  AGC has  also raised concerns about certain major, and in many cases advanced systems and pieces of equipment, that are not manufactured in the United States, or contain components manufactured abroad, but are preferred and specified based on performance by state regulatory authorities and water utilities. 

EPA has independently verified the validity of AGC's  concerns and has taken aggressive measures to ensure that there is a waiver process in place that recognize the realities of the water infrastructure market with respect to country of origin for materials and equipment incorporated into projects. To date EPA has issued 14 project specific regional "public interest" waivers and 4 national waivers including di minimus waivers which cover some of the aforementioned materials.

AGC has hraised similar concerns with the USDA Rural Utilities Service (RUS) in early 2009, and on September 25 USDA issued their own  di minimus waiver citing the same logic that EPA has applied in the crafting of their waiver. Hopefully this will start to free up the estimated $3.8 billion in USDA projects it will fund with stimulus dollars. It is unknown whether additional waivers or guidance are forthcoming from USDA.

Please see the attached document containing all regional project specific and national waivers of the "Buy American" provision as they relate to the EPA SRF and USDA RUS programs and make sure that your state and local water authorities and other AGC members are aware that waivers are being granted. Please note that project specific waivers must originate with owners procuring projects or state water authorityies funding projects . Contractors cannot initiate this process.  With respect to the di minimus waiver this will largely be the contractor's responsibility to account for costs and materials that fall under the 5% threshold.  

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

AGC and the Water Infrastructure Network (WIN) Coalition continue to push the Senate to bring S. 1005 Water Infrastructure Financing Act of 2009 to the floor of the Senate.  On October 7, the WIN Coalition sent a letter to Senate Majority Leader Harry Reid calling for action on S.1005.

S.1005 authorizes $39.191 billion for EPA water infrastructure programs over the next five years. This represents a significant increase for EPA federal assistance programs 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 for EPA SRF Programs are detailed in the chart below.

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

AGC members are encouraged to continue contacting their senators to urge support of S.1005 using AGC's Legislative Action Center.

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

 Featured Conference Speaker Congressman Earl Blumenauer

• J. Kevin Ward, Executive Administrator of the Texas Water Development Board and incoming President of the Council of Infrastructure Financing Authorities (CIFA), will discuss the impact of water supply on infrastructure planning and the challenges State and local authorities are facing to finance capital programs. Texas has been a leader in forecasting its water infrastructure needs and has recently published a report entitled Liquid Assets: The State of Texas' Water Infrastructure.
• Joe Adams, President of MWH Constructors will discuss the increasing use of design-build and other alternative project delivery methods for water infrastructure projects. MWH is an AGC member and also participates in the Water Design-Build Council. Ward will discuss the benefits and risk involved in non-traditional project delivery approaches including a case study of a CM at Risk project with an owner's representative.

 Other featured speakers include:

• Software innovators Bentley and Autodesk will participate in a discussion showcasing how virtual design and construction is being used for highway and water projects. This forum will also feature a jobsite presentation from an experienced AGC contractor and will also include a representative from Caterpillar who will describe the latest developments integrating construction equipment into the BIM/VDC models.
• Kris Hoellen, Director of the Conservation Fund's Conservation Leadership Network will discuss how the green construction movement is impacting highway & underground construction projects and how the construction industry and infrastructure can be a part of the solution to America's environmental challenges.
• Attorney John Mullen will report on the top legal decisions of the year that may impact your business.

 Highway Specific Sessions:

•  Karen Rae, Deputy Administrator, Federal Railroad Administration will present the Administration's high speed rail initiative and the construction opportunities that will result from this investment.
• Dave Ahlvers, State Construction Engineer, Missouri DOT and Paul Steinman, Chief Engineer, Florida DOT will discuss the use of contractor performance measures for prequalification, latest design-build developments including a financing option, alternate bid items for selecting concrete or asphalt pavements, performance specifications, value engineering/ practical design and recycled materials in concrete and asphalt.

For registration, schedule, hotel, transportation and other information
visit www.agc.org/highwayutilitiesissuesmeeting.