GAO Releases Report on Clean Water Trust Fund

On June 29, 2009, the United States Government Accountability Office (GAO) released its report, "Clean Water Infrastructure: A Variety of Issues Need to Be Considered when Designing a Clean Water Trust Fund."  The long awaited report from the GAO acknowledges that our Nation faces tremendous challenges in replacing and rehabilitating our water infrastructure, with estimated needs between $400 and $600 billion over the next 20 years for safe drinking water and wastewater treatment infrastructure. The GAO report does not make any specific recommendations on how a trust fund would be administered, or which revenue sources are most viable.  However,  it does outline issues that need to be addressed in establishing a Clean Water Trust Fund and identifies potential funding options including excise taxes on water pollutants and water-intensive industries that could generate approximately $10 billion annually. The taxes would apply to beverages, pharmaceuticals, pesticides, flushable products and water appliance industries. In researching its report, the GAO reached out to 28 industry associations including AGC of America, the Internal Revenue Service and the U.S. Environmental Protection Agency (EPA). AGC and the Water Information Network (WIN) Coalition have endorsed the concept of a Clean Water Trust Fund to create a long-term, sustainable, off-budget source of funding for water infrastructure to finance construction and maintenance of this critical infrastructure. On July 15, 2009, the House Transportation and Infrastructure Subcommittee on Water Resources and Environment is scheduled to conduct a hearing titled "Opportunities and Challenges in the Creation of a Clean Water Trust Fund."  AGC anticipates introduction of "trust fund" legislation by Congressman Earl Blumenauer (D-Ore.) in the near future. Click here to view one-page summary of the pending Blumenauer legislation, "the Water Protection and Reinvestment Act." To view as a PDF, click here.  To view as a Word Document, click here.  For additional information, contact Perry Fowler at (703)837-5321 or fowlerp@agc.org.