Follow us on . . .

HEADLINES

With 2009 budget passed, eyes turn to new water bill

Editor's Note: See link below to comment on this article.

The Fiscal Year 2009 federal budget, signed into law by President Obama March 11, kept appropriations for the Drinking Water State Revolving fund at $829 million, the same level appropriated for the previous fiscal year. FY2009 ends Sept. 30. The president's budget proposal for FY2010, however, would provide $1.5 billion for the drinking water SRF program.

The wastewater SRF program received $689 million for FY2009, also the same level it received the previous year. The FY 2010 proposal contains $2.4 billion for the Clean Water SRF — the same amount authorized by a bill that passed the House on March 12.

Other provisions of the FY2009 budget that are significant for the water industry:

• The US Environmental Protection Agency’s budget increased slightly to $7.6 billion;
• $790 million for science and technology programs at the US Environmental Protection Agency, a boost of $30 million from the previous year;
• $145 million for "special project grants" for drinking water, wastewater and stormwater projects;
• $20 million for drinking water and wastewater projects on the United States – Mexican border;
• $18.5 million for drinking water and wastewater projects in rural and native Alaskan villages;
• $5.4 billion for the Army Corps of Engineers, $185 million less than in FY2008;
• $1.1 billion for water and hydroelectric programs at the Bureau of Reclamation, similar to FY2008;
• $15.1 million for the Water Security Initiative to fund pilots 4 and 5, an increase over the $11.4 million enacted in FY2008;
• $1.1 billion for the US Department of Agriculture’s Environmental Quality Incentives Program, $17 million more than FY2008.

The omnibus FY2009 spending bill included nine bills left over from the previous Congress, which extended FY2008 funding levels in the face of veto threats from the Bush administration.

The Senate beat back a dozen amendment attempts and passed an FY2009 omnibus spending bill (HR1105) identical to the one approved earlier by the House, eliminating the need for a conference on the bill before sending it to the White House for enactment.

The Water Quality Investment Act of 2009 (HR1262), passed by the House with a large bipartisan margin (317 to 101) March 12, authorizes $19.4 billion for wastewater infrastructure and other efforts to improve water quality.

Its authorization for FY2010 for the CWSRF — $2.4 billion — matches President Obama’s requested appropriation, leading its sponsor, Rep. James Oberstar, D-Minn., to express optimism the authorization bill would receive full funding with the support of the Obama administration.

CWSRF funding in the bill totals $13.8 billion for all five years — $2.7 billion in 2011, $2.8 billion in 2012, $2.9 billion in 2013 and $3 billion in 2014.

The bill also carries the Davis-Bacon Act provision, requiring workers on projects funded by the SRF to be paid each state’s prevailing wage for such work. The last CWSRF authorization to carry that provision expired in 1994.

Oberstar, chairman of the House Transportation and Infrastructure Committee, noted that federal CWSRF funding has been “dramatically cut (PDF) in recent years” — a “critical priority” he expects to change.

Combining five bills passed by the House in the last Congress that never passed the Senate, HR1262 also:

• Incorporates the Sewer Overflow Community Right-to-Know Act, requiring a uniform, enhanced national standard for public notification of combined and sanitary sewer overflows (CSOs and SSOs), as well as enhanced monitoring requirements;
• Provides for grants  totaling $2.5 billion over five years to address CSOs and SSOs;
• Provides $250 million for alternative water source projects;
• Provides $750 million over five years for remediation of contaminated sediments in the Great Lakes.

Amendments added to HR 1262 during floor debate March 12:

• Require states to set aside 20 percent of CWSRF grants (i.e., principal forgiveness and negative-interest loans) for communities that implement green infrastructure or other water and energy-efficient improvements, as well as for disadvantaged communities;
• Require states to conduct energy efficiency audits and ensure waste treatment systems incorporate sustainable infrastructure;
• Require USEPA to conduct a study on the presence of pharmaceuticals and personal care products in the waters of the United States and to convene a task force to develop recommendations on the proper disposal of unused pharmaceuticals and a strategy for public education;
• Require states to use at least 15 percent of each capitalization grant for water pollution control to assist municipalities of fewer than 10,000 people;
• Ensure that there is a preference for American steel, iron and manufactured goods.

The House T&I Committee published the proposed state-by-state funding allocations (PDF) online.

The Water Quality Investment Act now moves to the Senate, where it is expected to be assigned to the Committee for Environment and Public Works, which has jurisdiction for both drinking water and wastewater affairs. In the House, drinking water is under the jurisdiction of the House Committee on Energy and Commerce.

Additional AWWA Resources:

• AWWA Government Affairs Web site offers regular updates.

Sandy Nance, Managing Editor

Posted: 03/17/2009

Comments

Log in to post a comment