# Presentation: 436470

## KEN KIRKExecutive DirectorAssociation of Metropolitan Sewerage Agencies (AMSA)		

- ACWI September 9, 2003

## The Infrastructure Challenge

- A water/wastewater infrastructure funding gap of as much as one trillion dollars over the next 20 years exists
- EPA: $76 billion to $534 billion (capital + O&M)
- CBO: $292 billion to $820 billion (capital + O&M)
- GAO: $300 billion to $1 trillion (capital + O&M)
- WIN: $460B (capital), $1 trillion (capital + O&M)
- AMSA has worked closely with ACWI and its member organizations to ensure federal funding for key USGS water quality programs
- Research should be a key part of any long-term funding program but we must work together to first make sure our basic infrastructure remains strong

## The Administration’s Position

- Raise sewer service rates
- Implement asset management/Innovative technologies
- Sustain the SRFs
- Public-private partnerships
- Watershed approach

## AMSA’s Translation

- Ask not what the federal government should do for you, ask only what you can do for you

## Clean Water Is a National Issue

- The Clean Water Act is a federal statute
- National benefits: Environmental protection, public health, economic sustainability/growth
- Water is an interstate resource with interstate benefits
- 42,000 jobs for every billion dollars spent on water infrastructure
- Multi-billion dollar industries depend on clean water
- $50 billion recreation; $300 billion coastal tourism; $45 billion fishing; hundreds of billions basic manufacturing

## The Case for Federal Funding

- Is raising rates the solution?
- Is asset management/innovative technology the solution?
- Is the CWSRF the solution?
- Are public/private partnerships the solution?
- Is a watershed approach the solution?

## Raising Rates

- Utilities have raised rates
- On average 2% per year above inflation since 1986
- Capital needs are rising
- 19% increase since 1999
- Debt levels continue to rise
- Utilities will continue to raise rates

## Asset Management/Innovative Technologies

- More and more utilities are performing asset management and implementing environmental management systems
- Like EPA, the WIN report assumes overall cost savings of 20% from asset management and innovation, yet the need remains enormous
- Asset management provides long-term savings but increases short-term needs/expenses

## SRFs

- SRFs only fund 3.6% of core wastewater infrastructure projects
- Less than 20% of surveyed wastewater treatment works used the SRF in 2001
- Has become less of a tool for core infrastructure projects
- Not clear that increased SRF funding will help

## Public/Private Partnerships

- Public wastewater treatment agencies are exploring this avenue
- Need to consider pros & cons
- Frequently, there are financial benefits to keeping functions in public hands
- Public agencies are becoming more competitive and are using innovative programs.
- Gainsharing
- Pay for performance programs
- Labor/Management cooperation

## Watershed Approach

- Is the right approach but:
- need firmer grip on nonpoint sources
- Clean Water Act not necessarily watershed friendly
- CWA is a command and control statute
- SSO policy (zero tolerance for overflow standard)
- CSOs
- TMDLs

## Is Anyone Listening

- Administration
- Gap Analysis
- Congress
-  House
-  Reps. Sue Kelly & Ellen Tauscher (H.R. 20)
-  Transportation & Infrastructure Committee (H.R. 1560)
- Senate
-  Sen. George Voinovich (S. 180)
-  Environment & Public Works Committee
- GAO and CBO
- Other
- State/Local Efforts
- Water Infrastructure Network Approach

## AMSA Infrastructure Funding Task Force

- Goals
- Obtain public, industry, congressional and administrative support for long-term sustainable funding source
- Develop grassroots support
- message development
- media outreach
- expand coalition
- identify spokespeople/champions
- third party support from industry and other sectors
- Research/determine potential sources for funding
- Work closely with the Water Infrastructure Network

## Funding Task Force (cont’d)

- Luntz Survey
- 84% support long-term funding solution
- 70% willing to support 1% tax increase for clean and safe water infrastructure
- 77% would be more likely to vote for their member of Congress if he/she voted for annual clean and safe water funding
- Task Force Publications
*Why Not Water? Investing in the Nation’s Water Infrastructure*
*EPA’s Solutions Leave Large Wastewater Funding Gap*
*A National Clean Water Trust Fund: Principles for Efficient and Effective Design*

## The Future of Funding 

- AMSA’s Next Steps
- Determine which of the potential funding sources makes the most sense
- Additional focus groups with Frank Luntz in the Fall to determine public support for specific funding sources
- Consider concept of a “Watershed Trust” – a coalition of  organizations dedicated to obtaining a trust fund for clean water infrastructure
- Power Outage Puts Spotlight on Nation’s Infrastructure
- Recent CNN report
- National Public Radio talkshows on water infrastructure

## Conclusion

- Need renewed federal/state/local partnership
- Local governments cannot close the funding gap on their own
- Highways and aviation infrastructure have been the beneficiaries of trust funds
***WHY NOT WATER?!***

## Can We Succeed?