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

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KEN KIRKExecutive DirectorAssociation of
Metropolitan Sewerage Agencies (AMSA)

• ACWI September 9, 2003

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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 OM)
• CBO 292 billion to 820 billion (capital OM)
• GAO 300 billion to 1 trillion (capital OM)
• WIN 460B (capital), 1 trillion (capital OM)
• 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

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The Administrations Position

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

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AMSAs Translation

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

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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

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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?

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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

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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

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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

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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

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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

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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

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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

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Funding Task Force (contd)

• 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 Nations Water
  Infrastructure
• EPAs Solutions Leave Large Wastewater Funding
  Gap
• A National Clean Water Trust Fund Principles for
  Efficient and Effective Design

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The Future of Funding

• AMSAs 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 Nations
  Infrastructure
• Recent CNN report
• National Public Radio talkshows on water
  infrastructure

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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?!

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Can We Succeed?