EPA programs to support drinking water infrastructure investment would enjoy a funding boost under a draft FY17 appropriations bill approved by a House subcommittee on May 25.
Approved by the Interior and Environment Appropriations Subcommittee, the draft spending bill prioritizes helping communities take steps to reduce the threat of lead in drinking water supplies. The bill would deliver $1.07 billion for the Drinking Water State Revolving Fund (DWSRF) while directing states to reserve 20 percent of their allotment for principal forgiveness, negative interest loans, or grants for projects in disadvantaged communities. The committee added new language to the bill that would also allow states to use these set-aside funds to reimburse communities like Flint for debt that was previously incurred to pay for projects to address public health threats related to lead in drinking water. The legislation would also continue a requirement to only allow American-made iron and steel to be used on DWSRF-funded projects, unless a waiver is granted by EPA.
The proposed $1.07 billion for the DWSRF is $207 million above its current funding level and slightly higher than the amount President Obama requested for the program. If enacted, it would represent the program’s highest appropriation since the 2010 fiscal year.
The legislation 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 is aiming to begin offering WIFIA loans during the 2017 fiscal year, and Interior and Environment Appropriations Subcommittee Chairman Ken Calvert (R-Calif.) has suggested the agency could leverage the WIFIA investment into as much as $3 billion - $5 billion in loans to communities. The WIFIA funds in the appropriations bill would come in addition to any dollars delivered to the program through WRDA legislation pending in Congress.
Despite the strong drinking water infrastructure investment figures, the bill is not all good news for EPA. 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. According to the Appropriations Committee’s summary of the bill, EPA would be held to its lowest staffing level since 1989.
Also on the losing end of the bill is the Clean Water State Revolving Fund (CWSRF), which would receive an even $1 billion next year – $394 million below its current funding level. But this total is still slightly more generous than the $979.5 million the Obama Administration requested for the CWSRF earlier this year.
The full House Appropriations Committee could consider the legislation soon after lawmakers return to Washington following the Memorial Day break.