Why Washington Needs Federal Funding For Water Infrastructure

WATER Why Washington Needs Federal Funding for Water Infrastructure Fact Sheet • September 2009

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ur nation’s water infrastructure and economy are bound together. Aiding the former will help the latter. Unfortunately, these days, both are treading troubled waters. In communities in Washington and across the country, drinking water and sewerage systems are straining under the weight of decades of federal government underinvestment. In recent years, the State Revolving Funds were financed at some of the lowest levels in history. For fiscal year 2009, Washington received only $29 million, a mere 3.1 percent of the $940 million that the state’s water and sewer systems need.1 As the troubles with our water infrastructure mounted, the country’s economy spun into a recession. Washington’s August 2009 unemployment rate reached 9.2 percent, or about 328,000 people, up from 5.4 percent a year earlier. Nearly one in 11 people in the labor force are now unemployed.2 Investing now in water and sewer systems to generate solid economic growth can lead the state out of the recession. Every federal dollar invested in infrastructure yields a $1.59 return to our states.3 The National Utility Contractors Association estimates that for every $1 billion spent on water infrastructure, as many as 27,000 jobs are created.4 The economic stimulus legislation passed by Congress in February 2009 provides more money to water infrastructure than the country has seen in recent years, but this one-time allotment cannot cure the problems plaguing many communities. In fact, the bill provides water and sewer systems with less than one-third of what the Environmental Protection Agency estimates we should spend each year just to maintain them. Washington’s Water Infrastructure Funding Gap: Washington’s water needs outpace its current ability to fund projects by a large margin.

For the Drinking Water State Revolving Fund (SRF) program, the state received at least 347 applications totaling more than $415 million for the 2009 stimulus funding.5 In 2009 annual appropriations, the state received only $17.5 million in federal funding6 – enough to finance 4.2 percent of its needs.

Water Protection and Reinvestment Act (H.R. 3202): Rep. Earl Blumenauer, from Oregon’s third congressional district, has introduced a federal water infrastructure trust fund bill. As with the trust fund for highways and airports, we should have a trust fund to provide municipalities with the funding they need to keep our water safe and clean for future generations. The trust fund should distribute money to the states through the existing State Revolving Funds. It also should ensure that funds be made available for research and implementation of green infrastructure and conservation practices. Regular federal contributions to Washington’s drinking water funding efforts have decreased by 43.9 percent since the Drinking Water SRF was fully implemented in fiscal 1998 and 57.9 percent when adjusted for inflation.7

End Note: 1

For the Clean Water State Revolving Fund program, which goes toward wastewater infrastructure, the state’s most recent Intended Use Plan lists 112 projects at a total cost of $529 million.8 In 2008, the state received $12.0 million in federal funding9 – enough to finance 1/44th of its needs. Federal contributions to Washington’s wastewater funding efforts have decreased by 66.5 percent since the Clean Water SRF was fully implemented in fiscal 1991 and 78.7 percent when adjusted for inflation.10 Job Creation: Fully addressing Washington’s currently listed water needs of $944 million would spur as many as 25,000 employment opportunities, according to National Utility Contractors Association estimates for job creation from water infrastructure investments. That could put back to work one out of every 13 unemployed people in the state. Water Quality: According to EPA’s 2008 National Water Quality Inventory assessments, 80 percent of river miles, 68 percent of the state’s lake waters and more than half of its ocean and near coastal waters are impaired.11 Beach Closings: A report by the Natural Resources Defense Council shows that Washington  experienced 18 beach closures or advisory events lasting six weeks or fewer in 2008. Aging and poorly designed sewage and stormwater systems cause many beach closures.12 Legislative Solutions: A comprehensive, long-term solution is a dedicated source of public funding for water infrastructure. This would help communities in Washington and across America keep their water clean, safe and affordable. It would unburden overtaxed state and municipal governments of the cost of water infrastructure repairs. Such an investment also would create employment opportunities and give our economy a much-needed boost.

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U.S. Environmental Protection Agency, Office of Water. “Distribution (state allotment) of Drinking Water State Revolving Fund appropriation for fiscal year 2009.” March 18, 2009; U.S. Environmental Protection Agency, Office of Water. “FY 2009 Clean Water State Revolving Fund title VI allotments.” April 14, 2009; State of Washington, Division of Environmental Health, Office of Drinking Water. “Department of Health information related to the American Recovery and Reinvestment Act of 2009.” August 21, 2009; State of Washington, Department of Ecology. Washington State Water Pollution Control Revolving Fund. “Final Intended Use Plan SFY 2010 and amended final Intended Use Plan FY 2009.” (09-10-048). June 11, 2009 at appendix 1, page 23. United States Department of Labor, Bureau of Labor Statistics. [Press Release]. “Regional and state employment and unemployment – August 2009.” (USDL-09-1126). September 18, 2009 at table 3. Schwartz, Bernard L. and Schwenninger, Sherle R. “A Public Infrastructure–-Led Economic Recovery Program.” December 4, 2008 at 3; Zandi, Mark. Chief economist and co-founder, Moody’s Economy.com. Testimony on Economic Stimulus For Small Business: A Look Back and Assessing Need For Additional Relief. U.S. House Committee on Small Business. July 24, 2008 at 5. The Clean Water Council. “Sudden Impact: An Assessment of Short-Term Economic Impacts of Water and Wastewater Construction Projects in the United States.” June 8, 2009 at 11. State of Washington, Division of Environmental Health, Office of Drinking Water, 2009. U.S. Environmental Protection Agency, March 18, 2009. Ibid; U.S. Environmental Protection Agency, Office of Water. “Drinking Water SRF Program Information for the State of Washington.” October 10, 2008 at 1 to 2; Sahr, Robert C. Oregon State University, Political Science Department. “Consumer price index (CPI) conversion factors 1774 to estimated 2019 to convert to estimated dollars of 2008.” June 3, 2009. State of Washington, Department of Ecology. 2009 at appendix 1, page 23. U.S. Environmental Protection Agency, April 14, 2009. Ibid; U.S. Environmental Protection Agency, Office of Water. “Clean Water SRF Program Information for the State of Wisconsin.” November 3, 2008 at 2 to 4; Sahr, 2009. U.S. Environmental Protection Agency, Office of Water. National Assessment Database. Available at www.epa.gov/waters/305b/, accessed September 21, 2009. Dorfman, Mark and Kristen Sinclair Rosselot. National Resources Defense Council. “Testing the Waters 2009: A Guide to Water Quality at Vacation Beaches.” July 2009 at 17 and WA.21.

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