EPA programs to support drinking water infrastructure investment would enjoy a funding boost under a draft FY17 appropriations bill approved last week by the Interior and Environment Appropriations Subcommittee. The draft spending bill would allow states to use DWSRF funds to reimburse communities for debt that was previously incurred to pay for projects undertaken in response to public health threats related to lead in drinking water. The bill would deliver $1.07 billion for the Drinking Water State Revolving Fund (DWSRF), $207 million above its current funding level and slightly higher than the amount President Obama requested for the program.
The spending bill would also make a significant investment in the Water Infrastructure Finance and Innovation Act (WIFIA) pilot program, providing $45 million for loan subsidies and an additional $5 million for program administration. EPA aims to begin offering WIFIA loans during the 2017 fiscal year, and Subcommittee Chairman Ken Calvert (R-Calif.) suggested the agency could leverage the WIFIA investment into as much as $3 billion - $5 billion in loans to communities.
Under the bill, EPA’s overall agency funding would be reduced to $7.98 billion, $164 million below the $8.14 billion the agency received for the current fiscal year. And the Clean Water State Revolving Fund (CWSRF) would receive $1 billion next year – $394 million below its current funding level.
The full House Appropriations Committee could consider the legislation as early as next week.