Statement of Senator James Inhofe

Hearing on the Water Investment Act of 2002 (S. 1961)

February 26, 2002

 

Mr. Chairman, thank you for calling this hearing to discuss the important issue of water infrastructure.  I commend you and Senators Graham, Crapo, and Smith for the hard work that was done to introduce this bi-partisan bill.  This bill is a step in the right direction toward the continued improvement of the water infrastructure of this nation.

This is an important bill for the nation and is especially important for Oklahoma.  This bill will be of tremendous benefit not only to our citizens, by providing safe drinking water, but also to the environment by the continued improvement of water quality

 

Both the Clean Water and Drinking Water Program are very popular with local communities seeking assistance for clean and drinking water projects. Both program provide "lower" than market rate loans to assist communities to come into compliance with the respective federal acts. Extending and increasing the federal contribution for these programs will allow states to better meet the financial demands placed on these funds.

 

The Water Investment Act contains many positive measures including the higher authorization levels, an increase in the percentage of funds set aside for Indian programs, and the increased flexibility afforded the States to manage their water programs.

The measures contained in this bill that provide additional help for disadvantaged and small communities are also sorely needed. 

 

A primary concern with extending and increasing the federal amount is the availability of the required 20% state matching funds. For your reference, I have attached a copy of two tables that reflect how Oklahoma has generated matching funds for both the Clean Water and Drinking Water SRF programs.  As you can see we have had to issue match notes to provide the required state matching funds for the more recent capitalization grants. [State funds equaling 20% of the federal capitalization grant has to remain in the fund.] Currently, we are utilizing Fund interest and investment earnings as the primary source to re-pay these state match notes.  Future debt for state match notes and lower investment and interest earnings will continue to increase the financial burden to our SRFs.

Another concern is that this bill does not do enough to assist our larger communities, those that serve over 10,000 customers, in meeting the infrastructure needs of their aging water systems.

 

Thank you again Mr. Chairman for calling this hearing.  I look forward to working with my colleagues on this piece of legislation to invest in the water infrastructure of our Nation.

 

 

 

 

 

Source of State Match Drinking Water State Revolving Fund

State of Oklahoma

 

 

Federal

State

Over

 

Less

Total

 

Appropriated

Match

Match

 

Utilized

Available For

Cap Grant

Amount

Amount

Amount

Notes

Set-asides

Assistance

97

$17,561,900

$3,512,380.00

$0.00

(1)

$5,444,189.00

$15,630,091.00

98

$10,224,200

$2,044,840.00

$0.00

(2)

$3,169,502.00

$9,099,538.00

99

$10,716,000

$2,143,200.00

$0.00

(3)

$2,786,160.00

$10,073,040.00

2000

$11,137,000

$2,227,400.00

$0.00

(4)

$1,781,920.00

$11,582,480.00

2001

$11,183,000

$2,237,600.00

$1,000.00

(4)

$2,254,670.00

$11,165,930.00

2002

$12,446,500

$2,489,300.00

$0.00

(5)

$3,236,090.00

$11,699,710.00

 

 

 

 

 

$0.00

$0.00

 

$73,268,600

$14,654,720.00

$1,000.00

 

$18,672,531.00

$69,250,789.00

 

Notes:

 

 

1

$3,500,000  of state match from the Constitutional Reserve Fund and $12,380 transferred from OWRB  grant account.

    -      6/12/98, S.B. 965

 

2

$2,000,000  of state match appropriated by legislature and $44,840 transferred from OWRB  grant account.

 

3

State match from the Oil Overcharge Fund

4

2001 State match note paid from investment and interest earnings on DWSRF accounts and the Guymon Ketchum bond loans. $2,227,400 went toward matching the FY 2000 cap grant and $2,237,600 toward the FY 2001 grant state match.

5

Match has not been identified at this time.  Currently being considered by Oklahoma Legislature

 

 

State of Oklahoma

Source of State Match Clean Water State Revolving Fund

Federal

Federal

State

Over

 

Less 4%

Total

Fiscal

Appropriated

Match

Match

 

Admin.

Available For

Year

Amount

Amount

Amount

Notes

Amount

Assistance

1988

$9,278,000

$1,855,600.00

$0.00

(1)

$371,120.00

$10,762,480.00

1989

$7,597,400

$1,519,480.00

$0.00

(1)

$303,896.00

$8,812,984.00

1990

$7,862,000

$1,572,400.00

$0.00

(2)

$314,480.00

$9,119,920.00

1991

$16,580,619

$3,316,124.00

$0.20

(2)

$663,224.76

$19,233,518.24

1992

$15,697,737

$3,139,548.00

$0.60

(3,4)

$627,909.48

$18,209,375.52

1993

$15,528,546

$3,105,709.00

-$0.20

(3)

$621,141.84

$18,013,113.16

1994

$9,632,600

$1,926,520.00

$0.00

(5)

$385,304.00

$11,173,816.00

1995

$9,951,183

$1,990,237.00

$0.40

(6)

$398,047.32

$11,543,372.68

1996

$16,300,350

$3,260,069.00

-$1.00

(6,7)

$652,014.00

$18,908,405.00

1997

$4,986,100

$1,018,670.00

$21,450.00

(7)

$199,444.00

$5,805,326.00

1998

$10,879,110

$2,184,466.94

$8,644.94

(8)

$435,164.40

$12,628,412.54

1999

$10,880,001

$2,281,647.00

$105,646.80

(9)

$435,200.04

$12,726,447.96

2000

$10,996,702

$2,282,330.94

$82,990.54

(10)

$439,868.08

$12,839,164.86

2001

$10,746,747

$2,149,349.40

$2,154,818.89

(11)

$429,869.88

$12,466,226.52

 

$156,917,095

$31,602,151.28

$2,373,551.17

 

$6,276,683.80

$182,242,562.48

 

 

Notes

 

1

State match from the State Wide Water Development Fund     

-         07/30/88, H.B. 1571

-         -  04/26/89, S.B. 51

2

State match from the Special Cash Fund, S.B. 144, 03/20/91

3

State match from the Constitutional Reserve Fund

-         05/28/93, S.B. 390

-         05/18/94, H.B. 2761

4

$200,000 in state match provided by Ute settlement - State of New Mexico and $47,501 in state match provided from OWRB grant account.

5

1994 State Match provided by OWRB Note Series 1994. Note paid from monies in the Debt Service Reserve Fund (the "1985 Reserve Fund") for the Board's 1985 Bonds.

6

1996 Match note paid from investment and interest earnings on CWSRF accounts and the Guymon and Ketchum bond loans. $1,990,236 toward the FY 95 cap grant state match and $2,018,545 toward the FY 96 cap grant state match.

7

1997 State match note paid from investment and interest earnings on CWSRF  accounts and the Guymon and Ketchum bond loans. $1,241,524 went toward matching part of the FY 96 cap grant and $1,018,670 toward the FY 97 grant state match.

8

1998 State match note paid from investment and interest earnings on CWSRF accounts and the Guymon and Ketchum bond loans.

9

1999 State match note to be paid from investment and interest earnings on CWSRF accounts and the Guymon and Ketchum bond loans.

10

2000 State match note to be paid from investment and interest earnings on CWSRF accounts and the Guymon and Ketchum bond loans. 2001 State match note to be paid from investment and interest earnings on CWSRF accounts.