AMWA joined the American Water Works Association and the Water Environment Federation in writing to members of the Senate Environment and Public Works Committee this month in response to concerns aired by some state organizations that a new WIFIA program could lead to reduced funding for the Drinking Water and Clean Water SRF programs.
In August, a workgroup of state SRF administrators wrote to EPW Committee members warning that a new WIFIA could “impede the SRFs’ ability to support adequate infrastructure needs.” The states’ letter also said the existing SRF programs can adequately fund water and wastewater projects costing more than $20 million, and that any increased federal water infrastructure appropriations should be routed through the SRF programs for distribution by states.
The response from AMWA, AWWA, and WEF explained that WIFIA is intended to complement, not compete with, the SRFs. WIFIA “will not interfere in any way with states’ ability to direct SRF funds as they see fit to qualifying water and wastewater projects,” the organizations said, “but it will establish a new funding opportunity for large infrastructure projects that are unlikely to receive SRF funding.”
The response letter also cited EPA data to counter arguments that large-scale water infrastructure projects typically receive meaningful SRF assistance. Loans to projects costing more than $20 million represented just 0.6 percent of all DWSRF loans issued through fiscal year 2010, the letter said, while such loans through the CWSRF program made up only 2.3 percent of that program’s loans through 2009.
AMWA plans to stay engaged with members of the House and Senate to make sure lawmakers have the most accurate information on WIFIA going forward.