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WATER INFRASTRUCTURE FINANCING

The United States House of Representative

Jul 14, 2009

Section 5

In This Section...

Rep. Blumenauer [D-OR3]: One issue that is too often out of sight and out of mind is the quality and the condition of our drinking water and wastewater pipes under the ground. Just 6...

Record Text

WATER INFRASTRUCTURE FINANCING -- (House of Representatives - July 14, 2009)<p><center><pre>[Page: H8028]

Chair: The Chair recognizes the gentleman from Oregon (Mr. Blumenauer) for 5 minutes.

Rep. Earl Blumenauer [D-OR3]: One issue that is too often out of sight and out of mind is the quality and the condition of our drinking water and wastewater pipes under the ground.

Just 6 months ago, we all watched in shock as rescue workers airlifted people from vehicles caught in a massive rush of water caused by a water main rupture on River Road just outside of Washington, D.C., because of the failure of a single, corroded pipe installed over 40 years ago. In fact, 72,000 miles of sewer main and water pipe are over 80 years of age.

This morning, there was a water main break that closed 23rd Street at I, near the George Washington Hospital.

The EPA estimates that American communities suffered more than 240,000 water main breaks last year. Combined with overflowing combined sewer systems causing contamination, property damage, disruption in water supply and, often, massive traffic jams.

The American Society of Civil Engineers estimates an average of 6 billion gallons of water is lost every day through leakage--enough to fill over 9,000 Olympic-sized swimming pools. The Engineers have given our Nation's drinking water and wastewater infrastructure a D-minus grade in their most recent report--sadly, a grade that was not improved over the report from 5 years ago.

The House of Representatives recognized the need to upgrade water infrastructure earlier this year, passing H.R. 1262, the Water Quality Investment Act, which would update and reauthorize Clean Water State Revolving Loan Funds. But they simply don't have enough money.

The EPA's most recent estimate is there is an over $500 billion gap between current investment and projected needs over the next 20 years. Surface and air transportation infrastructure, while facing their own challenges, at least have a dedicated source of funding. Water does not.

In the spring of 2005, the famous Republican pollster, Frank Luntz, released a poll that showed Americans would support a sustainable, dedicated source of water funding for infrastructure.

He found the public sees clean water as an even higher priority than investments made in transportation and airways--71 percent prioritized water above other infrastructure. It is time to stop talking about it and do something: creating a dedicated firewall trust fund for water infrastructure.

This afternoon, I will introduce legislation to create this trust fund financed by a number of funding mechanisms that are simple, equitable and adequate for $10 billion a year. The Water Protection and Reinvestment Act will establish a trust fund to finance clean water and drinking water infrastructure. Most of the money will go through the State revolving funds for sewage and drinking water improvements.

The financing mechanisms in the Water Protection and Reinvestment Act will include a fee based on water-based beverages, products that are disposed of in wastewater, pharmaceutical products, and corporate profits. These fees would be assessed at the manufacturer level so they will be easy to administer and will have a minimal impact on the consumer. They will be at a level that is so low that it would not place the entire burden on any one industry or group of consumers. With a mix of funding, everyone will contribute to a solution from which everyone will benefit from.

I am pleased that the legislation already has a diverse support of stakeholders from the Associated General Contractors, American Rivers, the National Association of Clean Water Agencies, and Rural Community Assistance Partnership, and a wide range of bipartisan original cosponsors, including Congressmen Norm Dicks, Steve LaTourette, Michael Simpson, and Thomas Petri, representing a base of support from thoughtful, bipartisan legislators.

While the funding question is always complicated, the public is with us. In January of this year, pollster Frank Luntz released a new poll--and remember, he is the famous Republican pollster--finding that a nearly unanimous 94 percent of Americans are concerned about the state of our Nation's infrastructure. He found that this concern cuts across all regions of the country: urban, rural, suburban. He found that 84 percent of the public wants the Federal Government to spend more money to improve infrastructure, and that 81 percent of Americans are personally prepared to pay 1 percent more in taxes for the cause.

The need is clear. The public is supportive. My hope is that my colleagues will join me in a solution that will make all of our communities more livable, and our families safer, healthier, and more economically secure.