KEN KIRK Executive Director Association of Metropolitan Sewerage Agencies (AMSA)

1. KEN KIRKExecutive DirectorAssociation of Metropolitan Sewerage Agencies (AMSA) ACWI September 9, 2003

2. The Infrastructure Challenge • A water/wastewater infrastructure funding gap of as much as one trillion dollars over the next 20 years exists • EPA: $76 billion to $534 billion (capital + O&M) • CBO: $292 billion to $820 billion (capital + O&M) • GAO: $300 billion to $1 trillion (capital + O&M) • WIN: $460B (capital), $1 trillion (capital + O&M) • AMSA has worked closely with ACWI and its member organizations to ensure federal funding for key USGS water quality programs • Research should be a key part of any long-term funding program but we must work together to first make sure our basic infrastructure remains strong

3. The Administration’s Position • Raise sewer service rates • Implement asset management/Innovative technologies • Sustain the SRFs • Public-private partnerships • Watershed approach

4. AMSA’s Translation • Ask not what the federal government should do for you, ask only what you can do for you

5. Clean Water Is a National Issue • The Clean Water Act is a federal statute • National benefits: Environmental protection, public health, economic sustainability/growth • Water is an interstate resource with interstate benefits • 42,000 jobs for every billion dollars spent on water infrastructure • Multi-billion dollar industries depend on clean water • $50 billion recreation; $300 billion coastal tourism; $45 billion fishing; hundreds of billions basic manufacturing

6. The Case for Federal Funding • Is raising rates the solution? • Is asset management/innovative technology the solution? • Is the CWSRF the solution? • Are public/private partnerships the solution? • Is a watershed approach the solution?

7. Raising Rates • Utilities have raised rates • On average 2% per year above inflation since 1986 • Capital needs are rising • 19% increase since 1999 • Debt levels continue to rise • Utilities will continue to raise rates

8. Asset Management/Innovative Technologies • More and more utilities are performing asset management and implementing environmental management systems • Like EPA, the WIN report assumes overall cost savings of 20% from asset management and innovation, yet the need remains enormous • Asset management provides long-term savings but increases short-term needs/expenses

9. SRFs • SRFs only fund 3.6% of core wastewater infrastructure projects • Less than 20% of surveyed wastewater treatment works used the SRF in 2001 • Has become less of a tool for core infrastructure projects • Not clear that increased SRF funding will help

10. Public/Private Partnerships • Public wastewater treatment agencies are exploring this avenue • Need to consider pros & cons • Frequently, there are financial benefits to keeping functions in public hands • Public agencies are becoming more competitive and are using innovative programs. • Gainsharing • Pay for performance programs • Labor/Management cooperation

11. Watershed Approach • Is the right approach but: • need firmer grip on nonpoint sources • Clean Water Act not necessarily watershed friendly • CWA is a command and control statute • SSO policy (zero tolerance for overflow standard) • CSOs • TMDLs

12. Is Anyone Listening • Administration • Gap Analysis • Congress • House • Reps. Sue Kelly & Ellen Tauscher (H.R. 20) • Transportation & Infrastructure Committee (H.R. 1560) • Senate • Sen. George Voinovich (S. 180) • Environment & Public Works Committee • GAO and CBO • Other • State/Local Efforts • Water Infrastructure Network Approach

13. AMSA Infrastructure Funding Task Force • Goals • Obtain public, industry, congressional and administrative support for long-term sustainable funding source • Develop grassroots support • message development • media outreach • expand coalition • identify spokespeople/champions • third party support from industry and other sectors • Research/determine potential sources for funding • Work closely with the Water Infrastructure Network

14. Funding Task Force (cont’d) • Luntz Survey • 84% support long-term funding solution • 70% willing to support 1% tax increase for clean and safe water infrastructure • 77% would be more likely to vote for their member of Congress if he/she voted for annual clean and safe water funding • Task Force Publications • Why Not Water? Investing in the Nation’s Water Infrastructure • EPA’s Solutions Leave Large Wastewater Funding Gap • A National Clean Water Trust Fund: Principles for Efficient and Effective Design

15. The Future of Funding • AMSA’s Next Steps • Determine which of the potential funding sources makes the most sense • Additional focus groups with Frank Luntz in the Fall to determine public support for specific funding sources • Consider concept of a “Watershed Trust” – a coalition of organizations dedicated to obtaining a trust fund for clean water infrastructure • Power Outage Puts Spotlight on Nation’s Infrastructure • Recent CNN report • National Public Radio talkshows on water infrastructure

16. Conclusion • Need renewed federal/state/local partnership • Local governments cannot close the funding gap on their own • Highways and aviation infrastructure have been the beneficiaries of trust funds • WHY NOT WATER?!

17. Can We Succeed?