View Full December PDF Issue - Utility Contractor Online

without the strong, steadfast support of NUCA members
and chapters around the country.
Infrastructure Groups Keep
the Pressure On
The beginning of the 112th Congress saw an influx
of new lawmakers, with 16 new Senators (3 Democrats
and 13 Republicans) and 93 new House lawmakers (84
Republicans and 9 Democrats). In the 2010 Election, 55
incumbents were voted out (53 Democrats and 2 Republicans),
and strong demands to rein in government
spending from newly elected Republican lawmakers
seemed to dominate the national debate. Therefore, efforts
to increase the federal ante for American infrastructure
proved to be an increasingly hard sell.
The need to invest in America’s underground environmental
infrastructure is well known and documented.
According to the Environmental Protection Agency
(EPA), hundreds of billions of dollars are needed to repair
and rebuild America’s underground environmental
infrastructure, yet the lack of public dollars has kept the
construction industry on the sidelines. In fact, the construction
industry has been the hardest hit sector of the
economic downturn and continues to face an unemployment
rate well over 10 percent. Construction firms that
work on public water and wastewater infrastructure projects
likely face significantly higher unemployment than
other sectors of the industry.
Investment in water and wastewater infrastructure creates
a myriad of high-paying jobs, generates significant
economic activity and expands the local tax base. In fact,
a recent study conducted by the Clean Water Council
found that every $1 billion invested in water and wastewater
infrastructure can: create up to 27,000 new jobs
with average annual earnings of more than $50,000;
generate a national output (i.e. demand for products and
services in all industries) of up to $3.46 billion; and bring
more than $1 billion in personal (spending) income.
Importantly, a $1 billion investment would generate approximately
$82.4 million in state and local tax revenue.
EPA State Revolving Fund Programs
Face Harsh Cuts in Appropriations
As is increasingly the case, Congress has found it impossible
in recent years to pass appropriations measures
for all federal agencies. Consequently, a “continuing
resolution” won out in the FY 2011 spending package
for the EPA State Revolving Fund (SRF) programs. After
suffering a nearly $1 billion reduction in SRF funding
under the FY 2011 continuing resolution, funding
for the Clean Water SRF was reduced to $1.55 billion
from $2.1 billion in the original FY 2011 package, and
the Drinking Water SRF was cut to $990 million, down
from $1.4 billion. In total, the SRF programs received
an appalling $2.5 billion, down from approximately
$3.5 billion in the original FY 2011 package, reflecting
a 27 percent reduction in total SRF funding.
To make matters worse, FY 2012 SRF funding
faces further cuts in the face of the energized fiscal
hawks in the House Republican majority. In fact,
House Republicans are looking to return to the FY
2008 levels of the Bush Administration, providing
$689 million to the Clean Water SRF and $829 million
for the Drinking Water SRF in FY 2012. Obviously,
NUCA recognizes the need to think outside
the box on water infrastructure investment.
New T&I Water Legislation Takes
Comprehensive Approach
Later in the year, new legislation (HR 3145) was
introduced by Democrats on the House Transporta-
NUCA knows Capitol Hill: CEO Bill Hillman (right)
and Vice President of Government Relations Eben
Wyman (center) ensure Representatives like Eric
Cantor (R-VA-7th District) understand the utility
construction agenda.
December 2011 | Utility Contractor 13