The Senate on September 15 approved comprehensive water resources legislation that includes AMWA priorities such as funding to jumpstart the Water Infrastructure Finance and Innovation Act (WIFIA) pilot program and new assistance to help schools and communities remove lead from service lines and plumbing fixtures. Senators voted 95 – 3 in favor of the bill.
As approved by the Senate, the “Water Resources Development Act (WRDA) of 2016” (S. 2848) mostly focuses on reauthorizing U.S. Army Corps of Engineers activities and authorizing studies or construction of water resources projects nationwide. But the bill also includes a substantial number of provisions relating to drinking water and wastewater infrastructure policy, largely influenced by the water crisis in Flint, Michigan.
Most notably, S. 2848 would deliver an infusion of funds to help Flint and communities nationwide upgrade and improve their water infrastructure. The bill includes $100 million in Drinking Water State Revolving Fund (DWSRF) assistance targeted for lead removal projects in Flint, plus an additional $70 million for WIFIA credit subsidies (expected to support at least $700 million worth of loans) to help communities across the country address lead in drinking water or carry out any other water infrastructure project that is otherwise eligible for WIFIA assistance. The funding would become available immediately upon enactment of the legislation without the need for any subsequent congressional appropriation.
The bill as approved by the Senate also includes language supported by AMWA that would make several minor but important improvements to the WIFIA program (see related story).
Other parts of the bill would create several new programs focused on removing lead piping from homes, encouraging schools to test their water supplies for lead, and speeding up public disclosure when excessive levels of lead are found to have leached into a community’s drinking water. Specifically:
- Section 7107 would authorize $300 million over five years for a new grant program to help communities and low-income households offset costs associated with replacing lead service lines and interior plumbing components. Grant funding could not be used on partial lead service line replacements, but communities could use the funds to replace service lines and interior plumbing components in low-income households. Priority for grants would be given to communities otherwise unable to pay for lead service line replacements and which have exceeded EPA’s action level for lead within the previous three years. The program is based on legislation sponsored by Sen. Ben Cardin (D-Md.) and endorsed by AMWA.
- Section 7109 would require public water systems to notify the public within 15 days of a lead action level exceedance. EPA would be charged with delivering this notice to the public if the utility fails to do so by the deadline. The section also directs EPA to work with states and utilities to establish a strategic plan to guide communications with the public about lead in drinking water.
- Section 7111 would authorize $100 million over five years for grants to help schools and child care centers voluntarily test their water for lead contamination, in accordance with EPA’s “3Ts for Reducing Lead in Drinking Water” technical guidance. The provision would not require public water systems to carry out any in-school testing.
The bill would also update parts of the Drinking Water State Revolving Fund (DWSRF) program, including several reforms that AMWA has supported in the past:
- Section 7002 expresses a “sense of the Senate that Congress should provide robust funding” for the Drinking Water and Clean Water SRFs, though the bill would not formally reauthorize funding for either program.
- Section 7101 would codify planning, design, preconstruction activities, and water system security upgrades as costs eligible to be covered by DWSRF loans.
- Section 7102 would require states to give priority to DWSRF projects that would increase the sustainability of a water system. The section would also require states to give greater weight to DWSRF applications that include asset management plans and a review of utility restructuring options.
- Section 7309 would allow states to offer additional subsidization to DWSRF projects that incorporate innovative water technologies.
In addition, Section 7117 would permanently apply “Buy American” requirements to iron and steel products used on projects funded in whole or in part through the DWSRF. As is the current practice, EPA would be able to offer case-by-case exemptions if adequate domestically produced iron and steel products are not available or would increase overall project costs by at least 25 percent.
AMWA has worked on an ongoing basis with Senate staff to shape the legislation since it was introduced earlier this year, and the association has consistently asked lawmakers to pass the bill as quickly as possible.
The House of Representatives approved its own narrower version of WRDA on September 28. A conference committee that will likely meet after the November elections will be tasked with negotiating a final version of the bill.