The AGC co-chaired Water Infrastructure Network (WIN) Coalition continues to educate members of Congress in efforts to build support for H.R. 3202, "The Water Protection and Reinvestment Act of 2009." This legislation seeks to establish a dedicated trust fund to finance clean water, drinking water and related infrastructure, such as large capital construction projects, replacing water mains, building water treatment facilitates and rehabilitating sanitary and combined sewer systems.  H.R. 3202 authorizes a five-year, $50 billion dedicated trust fund, which will be allocated to states primarily through the Clean Water and Drinking Water State Revolving Fund (SRF) Programs.Since the bill's introduction in June 2009, AGC and the WIN Coalition has been essential in securing 34 co-sponsors for this legislation. AGC continues to reach out to individual Hill offices to educate Congressional Members and staff about the water infrastructure needs of the nation and benefits of establishing a deficit neutral, user fee-based system to provide funding for water infrastructure.AGC member support is crucial to make progress on H.R. 3202. AGC members are encouraged to visit the AGC Legislative Action Center to write letters to their members of Congress urging their support.  Click here to visit the AGC Legislative Action Center and learn more. For additional information please contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

AGC and the WIN Coalition continue to work diligently to bolster efforts to reauthorize the EPA State Revolving Loan Fund programs.  Despite increased annual appropriations in FY10, and an unprecedented $6 billion investment through the Recovery Act, the Clean Water and Drinking Water State Revolving Loans continue to operate without having been reauthorized in over 20 years, bringing uncertainty to these successful but undercapitalized programs.A Senate bill authorizes $39.191 billion for EPA water infrastructure programs over the next five years, and includes $20 billion for the Clean Water State Revolving Fund Program, $15 billion for the Drinking Water State Revolving Fund Program and $1.85 billion for Sewer Overflow Grants.  AGC and WIN continue to work with key industry and congressional stakeholders to move this legislation forward, but EPA's implementation of Davis-Bacon requirements that were included in FY10 Interior and Environment Appropriations bill is complicating efforts to move the bill forward.  A group of senators and the Council of Infrastructure Financing Authorities (CIFA) have both asked the EPA to reconsider its application of prevailing wages in the FY10 program, which is viewed by many as a barrier to consideration of S. 1005 by the full Senate.The House of Representatives has already approved H.R. 1262, "The Water Quality Investment Act of 2009," which authorizes $19.4 billion over five years for wastewater infrastructure projects, including $13.8 billion for the Clean Water State Revolving Loan Fund (SRF) and $2.5 billion for the sewer overflow control grants program.  AGC and WIN are working to see this bipartisan legislation combined with S.1005 upon passage by the Senate.AGC members are encouraged to contact their Senators and urge them to support the bill so that  states and communities will have the consistency of a multi-year authorization.  To learn more about this legislation and support AGC efforts, please visit the AGC Legislative Action Center.For additional information please contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

On April 27, Sen. Robert Menendez (D-N.J.) and cosponsors Kit Bond (R-Mo.), Mike Crapo (D-Idaho), and John Kerry (D-Mass.) introduced the Sustainable Water Infrastructure Investment Act (S. 3262). The legislation will remove state volume caps on private activity bonds for water and wastewater projects and lead to the investment of billions of dollars in private money flowing into our nation's water infrastructure. AGC and coalition partners are working to garner additional support for the Senate bill and include it in broader tax legislation. Based on water and financial industry estimates, the bill would facilitate at least $2 billion worth of private water investment in 2010 and up to $5 billion or more annually as the market matures.S. 3262 is the Senate companion to H.R. 537, a bill authored by Congressman Bill Pascrell (D-N.J.) that passed the House in March as part of the Small Business and Infrastructure Tax Act.  AGC, along with the National Association of Water Companies and American Water, led the coalition effort in seeking the introduction of the Senate bill. To learn more about this legislation, visit the AGC Legislative Action Center.For additional information please contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

CGA Platinum Sponsor Shell Pipeline LP, continued their support of the 811 message of safety by featuring the logo during one of the most-watched sporting events in the country. During the Talladega Race, the No. 29 Shell-Pennzoil Chevrolet featured the "Call 811" logo on its deck lid and rocker panels to maximize exposure to fans at Talladega Superspeedway in support of National Safe Digging Month.Kevin Harvick raced the No. 29 Shell-Pennzoil Chevrolet to victory lane and celebrated his first win of the season. During the race, Harvick helped celebrate National Safe Digging month by sporting the "Call 811" logo to help educate fans about the importance of following the proper safety procedures when digging.CGA is now also featured on Facebook at www.facebook.com/CGAConnect and Twitter at www.twitter.com/CGAConnect, with both networks serving as a place for CGA stakeholders to meet each other, share news stories and case studies, and learn about upcoming CGA initiatives and meetings.AGC members interested in learning more about the Common Ground Alliance or getting involved in our underground damage prevention efforts should contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

According to the U.S. Environmental Protection Agency, most states are on target to meet today's Recovery Act deadline for projects receiving federal assistance through the State Revolving Fund (SRF) programs.  Considering the significant lag time due to new "Buy American" requirements and other administrative issues, this is a significant accomplishment. In fact, many states have leveraged EPA dollars with additional SRF funds by a factor of 57 percent. AGC also estimates that EPA Recovery Act dollars ultimately will be leveraged nationally almost 2 to 1, yielding at least $12 billion in projects from the $6 billion allocated to the SRF's under the Recovery Act.States that have not met the February 17 deadline will ultimately lose funds not under contract. On December 24, 2009, the EPA issued a memorandum to Regional Water Management Directors detailing criteria under which EPA would de-obligate Recovery Act funds from states that were not able to meet statutory deadlines. The memo also explained how funds would be reallocated to states that have successfully managed to execute contracts by the February 17 statutory deadline. In order to qualify for "re-allocated" funds, states must submit required information to the EPA with the guarantee that these dollars will be under contract by June 17, 2010.Click here for the EPA memorandum on reallocation of Recovery Act funds.Clean Water ARRA SummaryA total of 1,840 ARRA agreements have been executed for $3,788,956,186, which constitutes 99.5 percent of funds available for projects. Forty-one states have reported that they are 100 percent under contract. States NOT at 100 percent under contract are: Vermont, Delaware, South Carolina, Illinois, Michigan, Ohio, Iowa, Missouri, North Dakota and  Idaho.Of the 1,840 executed agreements:1,828 are under contract totaling $3,754,909,371 (98.6 percent of funds available for projects)1,419 have started construction totaling $3,033,971,067 (79.7 percent of funds available for projects) Click here for the complete CWRSRF ARRA Progress Report Drinking Water ARRA SummaryA total of 1,368 ARRA agreements have been executed  for $1,799,481,351, which constitutes 100 percent of funds available for projects. Seven states report that they are not at 100 percent for all contracts executed - South Carolina, Michigan, New Mexico, Utah, Nevada, Idaho and Oregon.Of the 1,368 executed agreements:1,351 are under contract totaling $1,775,274,351 (99.3 percent of funds available for projects)1,059 have started construction totaling $1,457,471,898 (81.5 percent of funds available for projects)Click here for the complete DWSRF ARRA Progress ReportIt is important to note that a project is listed as "All Contracts Executed" once the last contract funded from the ARRA assistance is fully executed.  A project is listed as "Construction Started" once work has begun on the first contract funded with ARRA dollars.  Because some projects have multiple contracts, a project may be listed as "Construction Started" before it is listed as "All Contracts Executed."For additional information please contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

JOBS BILLThe AGC co-chaired WIN Coalition has been steadfastly working with Senate leaders to ensure that a significant water infrastructure funding component be included in any infrastructure proposals to be considered in the U.S. Senate.  WIN has been involved in ongoing discussions on Capitol Hill focusing on additional measures to create jobs through infrastructure investment and has been spearheading these efforts in Washington, DC. Subsequent to ongoing WIN efforts, Senators Benjamin Cardin (D-MD), Chairman of the Senate Environment and Public Works Water & Wildlife Subcommittee, and Senator Sheldon Whitehouse (D-RI) have circulated a "Dear Colleague" letter which has been signed by 30 Senators calling for $3 billion for the EPA Clean Water State Revolving Fund (SRF) and $3 billion for the Safe Drinking Water SRF.  AGC and the WIN Coalition are aggressively supporting this $6 billion investment and will continue advocating for a substantial water infrastructure component in any legislation aimed at job creation.In November 2009, AGC of America compiled an initial survey of States that identified over $50 billion in approved projects on state's intended use plans in an effort to inform Congress about the significant needs that currently exist. These figures have helped to justify the push for increased investment in water infrastructure and were provided to key Senate offices and Committees.  Subsequently, a survey was conducted by the Environmental Council of States (ECOS), in association with the Council of Infrastructure Financing Authorities (CIFA) and the Association of State and Interstate Water Pollution Control Administrators (ASWIPCA) which indicated that in 33  states alone there are currently needs approaching $56 billion which will not receive funding from FY10 appropriations or the Recovery Act. The WIN Coalition has been conducting outreach in the Senate to convey our support for investing these substantial needs and the potential employment, public health and environmental benefits.Click here to view the "Dear Colleague" promoting water infrastructure.Click here to view the latest letter from the WIN Coalition to the Senate.Click here to view the ECOS survey of projects.EPA BUDGETOn February 1, 2010 the Obama Administration unveiled its FY 2011 Budget.  As promised in the President's State of the Union Address, many programs experienced significant cuts and the EPA State Revolving Loan Fund (SRF) programs were not immune.  Compared to the FY10 proposed level of $3.9 billion the FY 2011 budget recommends $3.3 billion; $2 billion for the Clean Water SRF and $1.3 billion for the Drinking Water SRF. While this funding level is disappointing, these amounts are still significantly higher than the FY 2009 enacted budget for both programs which totaled $1.5 billion.To view a condensed memo on EPA funding click here.These cuts underscore the need for reauthorization of the SRF program at higher levels and new financing approaches such as establishment of a water infrastructure trust fund.AGC will feature additional information on the FY 2011 budget in this week's Construction Legislative Week in Review.SRF REAUTHORIZATIONAGC and WIN continue to push for the reauthorization of the SRF Program with substantial annual funding increases.  S.1005 authorizes $39.191 billion for EPA water infrastructure programs over the next five years and represents a significant increase for EPA federal assistance programs including $20 billion for the Clean Water State Revolving Fund Program and $14.7 billion for the Drinking Water State Revolving Fund Program. SRF Reauthorization has stalled in the Senate and AGC would like to encourage members to continue generating letters indicating their support of reauthorization by utilizing the AGC Legislative Action Center or by visiting www.agc.org/water to contact Senators.SRF20102011201220132014TotalClean Water$3.2b$3.2b$3.6b$4b$6b$20bDrinking Water$1.5b$2b$2b$3.2b$6b$14.7bWATER TRUST FUNDEstablishment of a dedicated trust fund for water infrastructure continues to be a top priority for AGC and the WIN Coalition.  In the last quarter of 2009 the WIN Coalition coordinated and participated in over 100 meetings with members of the U.S. House of Representative in order to garner additional co-sponsors for HR 3202 the Water Protection and Reinvestment Act, and raise awareness about the benefits of the establishment of a dedicated revenue source for water infrastructure.  To date there are 28 co-sponsors and WIN is making and aggressive push to shore up additional support for HR 3202. AGC members can help in this effort by utilizing the AGC Legislative Action Center or by visiting www.agc.org/water to contact Representatives.PRIVATE ACTIVITY BONDSHR 537, the Sustainable Water Infrastructure Investment Act of 2009 would increase the amount of private capital available to State and local governments.   AGC and other key allies have been working to increase support for this legislation which currently has 35 co-sponsors. Based on the water industry estimates,  at least $2 billion worth of private water investment slated for through Private Activirty Bonds or PAB's in 2010. If the PAB cap were lifted, estimates show that volume could increase to $5 billion annually as the market matures.  AGC members can help in this effort by utilizing the AGC Legislative Action Center or by visiting www.agc.org/water to contact Representatives.A broad industry coalition, of which AGC is a member, supporting the private activity bond cap removal has indicated its support for private activity bonds as a method of financing water and wastewater infrastructure. In a letter to Senator Durbin (D-IL), the Senate Majority Whip, this coalition urged support for HR 537 and asked for its inclusion in any Jobs package the democratic leadership puts together.  For additional information please contact Perry L. Fowler at fowlerp@agc.org

With the February 17, 2010 deadline looming for states to "use or lose" Recovery Act dollars, State SRF Authorities are working diligently to get EPA SRF stimulus funds under contract.  On December 24, 2009 the EPA issued a memorandum to Regional Water Management Directors detailing criteria under which EPA would de-obligate Recovery Act funds and how funds would be reallocated to states that have successfully managed to execute contracts under the February 17 statutory deadline.In order to qualify for "re-allocated" funds States must submit required information to the EPA with the guarantee that these dollars will be under contract by June 17, 2010. According to a representative from the Council of Infrastructure Financing Authorities (CIFA), a national organization representing SRF Authorities, most states are expected to meet the February deadline.Reports published by the U.S. EPA indicate that as of January 28, 2010 EPA assistance agreements have been executed for approximately 94.3% of the Clean Water State Revolving Fund (CWSRF) Recovery Act Dollars totaling $3.591 billion and  93.2% of the Drinking Water State Revolving Fund (DWSRF) totaling $1.678 billion.Click here for the EPA memorandum on reallocation of Recovery Act fundsClick here for DWSRF progress by State and EPA RegionClick here for CWSRF progress by State and EPA RegionFor additional information please contact Perry L. Fowler at fowlerp@agc.org

A central focus of concern for AGC members working  on and pursuing water infrastructure projects funded with Recovery Act dollars has been the imposition of broad-based and new "Buy American" requirements pertaining to iron, steel, and manufactured goods included in the Recovery Act. In a letter to the Transportation & Infrastructure Committee on November 4, 2009, AGC detailed continuing concerns about the impact of new expanded Buy American requirements on Recovery Act funded projects.  As the volume of projects soliciting and awarding bids ramps up in 2010 with Members with inquiries about, or experiencing problems associated with Buy American as it pertains to SRF funded projects are strongly encouraged to contact your local AGC Chapter or National staff. To date AGC has accounted for 25 project specific waivers that have been granted in addition to the 4 national waivers issued by the U.S. EPA.  The vast majority of waivers approved thus far have been granted for technologies being incorporated into water treatment facilities.  AGC members also need to keep in mind that there is a "di minimus" waiver that allows contractors to use non-U.S. manufactured items such as fittings, fasteners, valves, bolts and other essential items to the extent that such items constitute five percent or less of the total cost of materials and supplies incorporated into a project. Contractors should be aware that this waiver applies to all EPA SRF funded Recovery Act projects and should be utilized as necessary.  USDA followed suit late last year in issuing its own "di minimus" waiver for the Rural Utilities Service infrastructure programs. It has also recently added a new project-specific waiver to the Plymouth Village, NH Water & Sewer District for the purchase of a rotary sludge dewatering press. Click here for additional EPA information on Buy AmericanClick here for a spreadsheet detailing project specific waiversClick here for a complete list of USDA and EPA waivers

According to recent press releases from the USDA, the Rural Utilities Service which provides assistance to small and rural communities is making slow but steady progress getting Recovery Act Dollars processed and awarded to projects. According to USDA officials, approximately $3.7 billion in water infrastructure projects will be funded with USDA dollars in 2010. AGC members pursuing USDA funded projects should be aware that the USDA requires the use of Engineering Joint Contract Documents Committee (EJCDC) standard form contract documents.  AGC of America is a sponsoring organization of EJCDC along with the National Society of Professional Engineers, the American Society of Civil Engineers, and the American Council of Engineering Companies. For additional information about USDA Recovery Act activities click here.For a list of water projects being funded by USDA click here.AGC members can purchase EJCDC documents at a discounted rate by clicking here.For additional information please contact Perry L. Fowler at fowlerp@agc.org

On December 14, 2009, AGC of America submitted comments on an Advanced Notice of Proposed Rulemaking (ANPRM) on Pipeline Safety: Pipeline Damage Prevention Programs to the U.S. Department of Transportation's Pipeline and Hazardous Material Safety Administration (PHMSA).  The purpose of the ANPRM was to solicit comments in order to assess the adequacy of State's damage prevention enforcement regimes for oil, gas and other hazardous material pipelines.  PHMSA is currently reviewing industry comments and will issue a notice of a proposed rulemaking later in 2010. PHMSA will use this information to develop criteria for federal enforcement of damage prevention laws in states that are deemed to have inadequate enforcement of damage prevention laws for excavators, utility/facility owners, one-call centers and professional locaters as mandated by the 2006 PIPES Act. To view AGC's comments on the ANPRM click here.