California Association of Sanitation Agencies

Federal Legislation Update

By Eric Sapirstein, Federal Legislative Advocate

Ranking Member of the Water Resources and Environment Subcommittee, Representative Tim Bishop (D-NY), has released a draft rewrite of his proposal to renew the state revolving loan fund program that supports POTW construction.  The draft is under review by the Federal Legislative and Liaison Committee. The draft proposes to:

• Extend authorization of the SRF for additional five years for a total of $13. 8 billion
• Establish set aside funding for collection systems needs
• Establish that reuse and energy conservation activities are explicitly eligible for SRF assistance
• Impose new criteria to be eligible for SRF assistance including: review and selection of projects that rely on process changes that maximize the potential for efficient water use, reuse and energy conservation 
• Require the creation of a fiscal sustainability plans in order to receive SRF assistance
• Provide for principal forgiveness or negative interest arrangements for among other things projects that meet energy efficiency and conservation goal

Among some of the more interesting elements are provisions that would require Buy American products and manufactured goods (unless cost factors are met or supply is unreliable) and authorize the creation of a trust fund and a study into the tax base upon which to secure revenues for the fund.

Additionally, the bill also authorizes the creation of a Water Pollution Control Investment program that would be able to extend loans and loan guarantees to states to support the financing of "large" municipal projects.  Projects that are listed on a state priority list, could seek direct loan and loan guarantees under the provisions of the bill, but approval would rest with the state financing authority.  Due to the burden of finding offsets for any new spending proposal, funding is not directly identified.

Introduction of the legislation is unknown at this writing, but staff hopes to finalize the proposal in the coming weeks.