A VIEW FROM THE TRENCHES
Before I address the Clean Water SRF reauthorization bill introduced by Senator George Voinovich, I will take a few minutes to describe the appalling state of clean water infrastructure as I see it from down in the trenches. I say the problem is appalling because we as a nation have knowingly failed to maintain vital wastewater infrastructure in a meaningful way. We have the capacity to fix the cruddy pipes and protect public health and the environment. It's time we do so before we contaminate our water supply, before sewer moratoriums shut down our communities, and before your constituents' sewer rates go through the roof.
My company was hired to replace a septic tank system in a small, rural community of 20,000 people in northern California. As I prospected the job when preparing the bid, I was dumbfounded. Walking along the easement lines of the residential area to determine the location of the new system, I found myself sinking in saturated ground--ground saturated with raw sewage that had overflowed from failed leaching systems. I'd like to pretend that no one other than myself was exposed to the sewage, but I'm quite sure the neighborhood children played there on occasion. It was, after all, adjacent to their backyards.
Failing infrastructure is not unique to rural communities. It is an urban phenomenon as well. On a project for a major city in southern California, we replaced a sewer pipeline that had failed earlier than expected due to unstable ground conditions. When we uncovered the pipe, we found gaping holes where raw sewage had been escaping into the surrounding ground for months if not years. To make matters worse, the sewer system was less than 100 yards from a fresh waterway. The problem, therefore, was compounded by tidal action. Twice every 24 hours, the water level rose over the top of the sewer line, allowing fresh water to run into the broken pipe and travel to the treatment plant. When the tide went out, so did the sewage. We had uncovered a daily exchange of raw sewage and fresh water.
These stories are from the western United States because that is where I work. Similar problems exist coast to coast, in every state.
SKYROCKETING INFRASTRUCTURE NEEDS, DECLINING FEDERAL INVESTMENT
Over the last several months, a lot of dollar estimates for the cost to repair and replace the nation's failing infrastructure over the next 20 years have been tossed about. The EPA has preliminarily increased its 1996 estimate from $139 billion to more than $200 billion. Private studies demonstrate that the needs will exceed $300 billion. Does it really matter whether it's $200 billion or $300 billion? The federal contribution to the SRF last year was less than 1% of either figure.
What really matters today is that wastewater infrastructure needs are ever increasing, yet federal capital investment has remained on a steady decline ever since the Clean Water SRF authorization expired five years ago. The current lack of authorization unintentionally widens the investment gap because it sends an implicit message to congressional budget and appropriations committees that wastewater collection and treatment is not a national priority. Annual capitalization of the program suffers as a result. Also, the absence of authorization creates uncertainty about the program's future in the eyes of potential borrowers, which may delay and in some cases prevent vital project financing.
If Congress does not invest in the nation's infrastructure, the 21st century likely will be remembered for the preventable public health and environmental disaster the nation failed to prevent. The Clean Water State Revolving Loan Fund (SRF) reauthorization bill, S. , crafted by Senator George Voinovich, is a concise, pragmatic, efficient, and bold preventive measure. Here's why.
THE CLEAN WATER SRF WORKS
The 12-year performance of the SRF has been spectacular. The following highlights are taken from the U.S. EPA's National Information Management System. The information is current through June 30, 1999. Cumulative federal capitalization grants of $ 15.4 billion have been supplemented by state contributions of $3.2 billion, net leveraged bonds of $11.6 billion, loan principal repayments of $3.8 billion, loan interest payments of $3.3 billion, and investment earnings of $2.0 billion. After subtracting $1.7 billion for leveraged bonds repaid, $188 million for state match bonds repaid, $2.7 billion for interest paid on bonds, $431 million for administrative expenses, and $3.8 billion for debt service reserves, there has been $30.3 billion in SRF funds available for projects. Now that's a program that puts tax dollars to work for all Americans! Of the $30.3 billion available for projects, $26.1 billion (or 86%) has been provided for 8,200 wastewater collection and treatment, nonpoint source, and estuary projects. The number of projects rose from just 3 in the year ending June 30, 1988, to 1,280 in the year ending June 30, 1999. And the program will continue to grow to meet massive infrastructure needs! Of the 8,200 projects approved to date, 58% (23% of the dollars loaned) serve communities with populations less than 10,000; 31% (36% of the dollars loaned) serve communities with populations in the 10,000 to 99,999 range; and 12% (40% of the dollars loaned) serve communities with populations of 100,000 or more. The flexibility doesn't leave any class of community to wade in its raw sewage!
THE VOINOVICH BIKE MAKES THE CLEAN WATER SRF EVEN BETTER
Senator Voinovich's bill builds on the 1 2-year success of Clean Water SRF Program by authorizing new funding and adding important improvements. S. would provide critical new authorized funds for the states to use in meeting their respective capital infrastructure gaps. Capital investment is the most critical component of federal policy, and this is the most important provision in the bill. S. would provide technical and planning assistance for small systems serving populations of fewer than 20,000. This important initiative will inform and enable, without prescribing, vital institutional reforms. For instance, comprehensive planning assistance would provide better information to document needs and inform the public about underlying problems and the range of potential solutions. Technical assistance in financial management would raise small system awareness and participation in the SRF Program.
S. also would expand the types of projects eligible for loans, which enhances the Clean Water SRF's successful tradition of state flexibility. New eligibilities would include water pollution prevention initiatives, lake protection programs, projects to improve public water use efficiency, and projects to restore riparian areas.
Finally, S. would provide qualifying disadvantaged communities with additional assistance through extended loan repayment periods and principal subsidies. These new tools would boost SRF participation and make the program an even more effective instrument for addressing the funding gap.
THINGS CHANGE, THINGS STAY THE SAME
Seven years ago I appeared before the House Merchant Marine and Fisheries Committee to discuss the problem of the cruddy pipes falling apart. Since then, annual federal investment in the Clean Water SRF Program has been cut in half, yet there remain thousands of miles of barely functioning sewer pipelines that are leaking gallons of raw sewage into underground aquifers daily.
The state revolving funds have become increasingly efficient and effective, but not enough federal seed money has been invested to ensure that human and environmental costs of the multi-billion dollar funding gap are prevented.
People intuitively understand that their lives are directly linked to water quality and the collection and treatment of wastewater. And we all expect leadership from our lawmakers in addressing this threat to all Americans' qualify of life. Please take the lead by supporting Senator Voinovich's Clean Water SRF reauthorization bill.
We appreciate the opportunity to testify before the subcommittee today, and we look forward to helping advance Sen. Voinovich's solution in the 106th Congress.