Press Release
House Committee Passes Water Quality Financing
Act
Reauthorizing Clean Water State Revolving Fund
National Association of Water Companies Supports Working Within Established Revolving Fund
WASHINGTON, DC – The full Committee on Transportation and Infrastructure voted to pass H.R. 720, the Water Quality Financing Act of 2007. The bill reauthorizes the Clean Water State Revolving Fund loan program, which will provide $20 billion to the fund over five years. The National Association of Water Companies (NAWC) commends the subcommittee for its swift attention to the infrastructure financing challenge facing our country. Action by the Committee working within the existing State Revolving Fund (SRF) is the surest mechanism at the disposal of Congress for addressing the challenge.
The bill offers states financing flexibility by means of principal forgiveness and negative interest loans. Passing the bill represents one of the essential first steps toward helping communities meet their water quality infrastructure goals. NAWC commends Representative Boustany (R-La.) for recognizing that financing options do exist beyond the State Revolving Fund. Offering an amendment requiring the Government Accounting Office to conduct a study to examine alternative funding and investment mechanisms to fund waste-water infrastructure and other water pollution control activities, both public and private, is essential progress.
According to Peter Cook, executive director of the National Association of Water Companies, “Dr. Boustany’s leadership is encouraging and demonstrates that the Committee is genuinely interested in tackling the issue of water infrastructure head-on, which is imperative since the utilities will have to seek alternative funding options to fully finance infrastructure improvements.
Cook concluded, “Despite our enthusiasm for the reauthorization of the SRF, NAWC is disappointed that the benefits of the Clean Water SRF will remain inaccessible to customers of investor owned utilities. When Congress authorized the Drinking Water State Revolving Fund it correctly concluded that the benefits of private access would flow to the customers of private utilities in the form of rate relief, not to their owners or shareholders in the form of increased profits. The CW-SRF should be amended so all Americans have the opportunity to enjoy its benefits.”
NAWC will continue to urge the committee to reject calls for wasteful and unnecessary federal grant programs and trust funds. The industry firmly believes the SRF loan program is the best means for Congress to encourage the long-term financial health and self-sustainability of the water industry.
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