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Managing America: Environment & Resources

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Week Ending March 9, 2006

H.R.720 To amend the Federal Water Pollution Control Act to authorize appropriations for State water pollution control revolving funds, and for other purposes.

Technical assistance grants are authorized to nonprofit organizations to provide assistance to rural and small municipalities for planning, developing and acquisition of financing for wastewater infrastructure assistance and for training for rural and small publicly owned systems to protect water quality and achieve and maintain compliance and to disseminate information with respect to planning, design, construction and operation of small systems where necessary.

Management assistance to states is set at $300 million through 2012.

Watershed pilot projects are supported through partnerships with municipalities and property owners to demonstrate cooperative ways to address non-point sources of pollution and thereby improve water quality.

Eligible for grants are wastewater treatment systems of a replacement or major rehabilitation nature. Also eligible are new wastewater collection systems that serve a community which existed on January 1, 2007.

Capitalization grants are available to states that establish, maintain, invest and credit their revolving loan funds with repayments such that the fund balance will be available in perpetuity to provide financial assistance. Fees charged by states for assistance are to be used to finance the cost of administering or financing the projects.

In 2009 recipients of grants or loans through states must show that cost effectiveness of innovative and alternative processes, materials, techniques and technologies has been studied and evaluated and that projects sought will result in greater environmental benefits or equivalent benefits when compared to standard processes, materials, techniques and technologies. The projects should be more efficient in energy use and natural and financial resource use.

States must use at least 15% of amounts capitalized for grants to municipalities of less than 10,000.

For water pollution control revolving funds project eligibility is seen in providing financial assistance to any municipality or inter municipality or state agency for construction of publicly owned treatment works, to implement management programs and for development and implementation of a conservation and management plan. Also eligible are lake protection programs, repair of replacement of decentralized waster water treatment systems that treat domestic sewage, measures to mange or reduce municipal storm water runoff, for municipal or state or interstate measure to reduce demand for publicly owned treatment works capacity through water conservation, efficiency or reuse, for measures to increase security of publicly owned treatment works and for the development and implementation of watershed projects.

Repayment of loans is stretched to 30 years or the design life of the project whichever is sooner.

States must establish intended use plans to establish or update projects and activities for which assistance is sought from the revolving fund. States will establish the intentions based on need, greatest water quality improvement and other factors.

Indian tribes, former reservations in Oklahoma and Native villages may receive from .05% to 1.5 % of around $1.3 billion in assistance.

Thirty days after enactment the Comptroller General will commence a study analyzing the funding mechanisms and sources available to the Clean Water Trust Fund that can be efficiently collected. Federal State and local and private resources will be consulted and the report is due to Congress on January 1, 2008.

One point of contention was the Davis-Bacon provision that requires prevailing wages be paid on such federal projects. Supporters see the provision as assuring appropriate wages while opponents argue against their perception that paper work for D-B compliance is monumental and that the higher wages make competitive bidding more difficult.

Because the final version of the bill included establishing and modifying maritime regulations regarding a variety of issues including establishment and waiving of tonnage requirements on the Great Lakes. The effort by opposition to recommit the bill included adding provisions to include anti-terror regulations regarding issuing transportation cards and port security measures and screening of maritime personnel. The motion to recommit the bill succeeded therefore the motion became an amendment to the bill.

Sponsor:  James L. Oberstar (D-MN-8^th)

Vote: The bill passed March 9, 2007 303 to 108 (RC 135) A motion to recommit the bill with instructions to include anti-terror regulations regarding issuing transportation cards and port security measures passed 358 to 56 March 9, 2007 (RC 134 )

Cost to the taxpayers:  The bill authorizes $2,000,000,000 for fiscal year 2008;  $3,000,000,000 for fiscal year 2009;  $4,000,000,000 for fiscal year 2010;  $5,000,000,000 for fiscal year 2011; and  $6,000,000,000 for fiscal year 2012.

"CBO estimates that implementing this legislation would cost about $9.2 billion over the next five years, assuming the appropriation of the necessary amounts, for the Environmental Protection Agency (EPA) to provide various types of grants to states and nonprofit organizations to support water quality projects and programs. The Joint Committee on Taxation (JCT) estimates that enacting H.R. 720 would reduce revenues by $50 million over the 2008-2012 period and by $541 million over the next 10 years. CBO estimates that enacting title VI would increase vessel tonnage charges on vessels entering the United States from any foreign port or place, effective for fiscal years 2008-2017. Those charges would increase offsetting receipts, which are credits against direct spending, by $615 million over the 2008-2017 period."

Earmark Certification:   Not applicable to this bill.

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