Fate of State Revolving Fund Reauthorization Uncertain

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.