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U.S. Conference of Mayors Legislative Agenda. USCM/Urban Water Council Meeting Albuquerque, New Mexico September 30, 2005. USCM Water Priorities. Infrastructure Financing
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U.S. Conference of Mayors Legislative Agenda USCM/Urban Water Council Meeting Albuquerque, New Mexico September 30, 2005
USCM Water Priorities • Infrastructure Financing • Water/Watershed - Protection, Supply and Development Issues (MTBE, Drought Commission, Great Lakes Issues, Aquatic Invasive Species) • Water and Wastewater Security • Army Corps of Engineers (WRDA) • Response to Hurricanes Katrina & Rita
Chicago Resolutions • Local governments should strongly consider the use of alternative project and service delivery methods for development of water and wastewater infrastructure. • Congress should enact the National Aquatic Invasive Species Act of 2005 in order to help prevent the introduction and spread of aquatic invasive species in the nation’s waters. • Congress should approve legislation that would complement the Drinking and Clean Water SRFs by providing more targeted and direct federal resources to help with water infrastructure-related issues, including $50.6 billion for CSOs, and $88.5 billion for SSOs and stormwater management.
Infrastructure Financing Urban Water Council 3-Prong Approach: • Grants to Communities with Severe Environmental or Economic Hardship • 30-year no interest loans • Removal of Private Activity Bonds from the State Volume Cap
Infrastructure Appropriations Fiscal Year 2006 • $850 million for Drinking Water State Revolving Loan Funds (level funding) • $900 million for Clean Water State Revolving Loan Funds (down from $1.1 billion in 2005 and an all-time high of $1.3 billion)
S.1400 – The Water Infrastructure Financing Act • Authorizes $20 billion to EPA’s CWSRF and $15 billion for DWSRF over the next 5 years. • Authorizes $3 billion in grants over the next 5 years for technical assistance to small and rural communities. • Encourages alternatives ways of doing business. • All Upgrades Using Federal Dollars Need to Comply with the Davis-Bacon prevailing wage law. Status – Passed out of Full Senate Committee, Awaiting Floor Action
Private Activity Bonds • Mayors Have Met with House and Senate members as well as Treasury officials • Representatives Shaw, Davis, English, Thompson, and Turner introduced H.R. 1708 on April 19, 2005. • Referred to House Ways and Means Committee • The bill would remove private activity bonds from state volume cap for sewage and water supply facilities. (23 cosponsors) Looking for Senate counterpart
Army Corps of Engineers • Water Resources Development Act (WRDA) • Authorizes the Sec. of the Army to construct improvements to rivers and harbors. • H.R. 2864, H.Res.346 – passed the House on July 13, 2005 • S. 728 – little movement
Hurricane & Water Issues • Over 1,200 drinking water systems impacted from Katrina. • Countless sewer systems impacted. Back up causing environmental contamination and potential public health risks. • Municipal and other bonds impacted • Tremendous Need for Technical Assistance and Recovery Efforts
Legislative Response • Senate passed by Unanimous Consent S. 1709, the Gulf Coast Emergency Water Infrastructure Assistance Act on September 27, 2005. • For the States of Alabama, Louisiana, and Mississippi, the bill would allow the SRF program to be used to repair or rebuild water treatment plants affected by Katrina • Allow forgiveness on the principal borrowed or a zero-percent interest rate on the loan itself. - Referred to the House
Legislative Response • Need to pay for a potential $200 billion recovery effort • Where does the money come from? • Republican Study Committee targets Clean Water State Revolving Loan Fund for elimination. • Question remains – how do you rebuild the Gulf Coast’s water infrastructure? • What can the UWC and WDAB do?