This week, the Senate Environment and Public Works Committee conducted a hearing on how the federal government can boost water and wastewater infrastructure. The committee heard from local leaders, water utilities from urban and rural areas, and environmental organizations.
The issue of water infrastructure has taken on new prominence this year as the Flint, Michigan water crisis has gained national attention. Water infrastructure repair has been a vexing problem for Congress and water agencies, which face significant repair needs and dwindling assistance from Environmental Protection Agency (EPA) revolving loan funds. The EPA estimates at least $600 billion in new funding is necessary over the next 20 years to fund water infrastructure improvements. A recent study by the American Society of Civil Engineers estimates California's waste water needs at $30 billion and drinking water needs at $45 billion, for a combined total of $75 billion.
Congress has taken modest steps in recent years in the attempt to address water and wastewater infrastructure needs. In the Water Resources Development Act (WRDA) reauthorization of 2014 (WRRDA), Congress created a Water Infrastructure Finance and Innovation Act (WIFIA) program which set up pilot loans for public water agencies to borrow funds for up to 49 percent of certain projects that cost at least $20 million. While some funding for WIFIA is expected in the FY17 Interior/EPA appropriations measure, prior year funding for this program has yet to materialize. Last year's surface transportation reauthorization (FAST Act) lets public entities use tax-exempt public bonds to pay for water and sewer system work tied to federal grant or loan programs.