Minnesota PHCC Contractor May/June 2018

RISO REPORT
PHCC WILL WORK WITH CONGRESS AND THE ADMINISTRATION
TO ENSURE AMERICA’S WATER SYSTEMS ARE SAFE
Many municipalities across the nation confront
critical challenges due to aging water and
wastewater infrastructure projects. According
to the American Society of Civil Engineers, an
estimated $150 billion is currently needed for wastewater
infrastructure needs. Many water systems require immediate
repairs, upgrades and replacement; however, funding is
scarce. Part of the overall solution is low-interest financing
for such projects, which are made available to municipalities
with State Revolving Funds (SRF).
accelerate investment in our nation’s
water and wastewater infrastructure
by providing long-term, low-cost
supplemental credit assistance under
customized terms
A SRF is a fund administered by a state for the purpose
of providing low-interest loans for investments in water
and sanitation infrastructure, such as sewage treatment,
stormwater management facilities and drinking water
treatment. A SRF receives its initial capital from federal grants
and state contributions and offers bonds that are guaranteed
by the initial capital. It then “revolves” through the repayment
of principal and the payment of interest on outstanding loans.
There are two SRFs: the Clean Water State Revolving Fund
under the Clean Water Act,
and the Drinking Water State
Revolving Fund under the Safe
Drinking Water Act.
What Is Being Done About It
and Are SRF Programs Enough?
The recent $1.3 trillion
Omnibus spending bill (as
passed by Congress and signed
Mark Riso
by the President) includes
almost $2.9 billion in funding
for the Clean Water and
Drinking Water State Revolving
Loan funds, which will help
state and local governments
fund water treatment and other
infrastructure. In addition, the bill includes new funding in
the amount of $63 million for the EPA’s Water Infrastructure
Finance and Innovation Act (WIFIA) program that finances
water infrastructure projects. This is positive – HOWEVER
– this is 2018 funding that will only last until Sept. 30!
What Actions PHCC Needs to Take
WIFIA is a five-year pilot program (starting in 2014) focused
on supporting large-scale projects that may be underserved
by existing state revolving funds. WIFIA is a federal credit
program administered by EPA for eligible water and
wastewater infrastructure projects. The program’s mission
is to “accelerate investment in our nation’s water and
wastewater infrastructure by providing long-term, low-cost
supplemental credit assistance under
customized terms to creditworthy water
and wastewater projects of national and
regional significance.”
WIFIA (set to expire at the end of
2018) needs to be reauthorized and
needs to receive increased federal
funding. WIFIA is currently being
considered in the House and Senate.
PHCC is meeting and working with the
American Water Works Association,
the Water Quality Association, and
Plumbing Manufacturers International
to reauthorize and increase funding for
WIFIA. PHCC-National Association is
currently working (in conjunction with
allied organizations) to build a campaign
for WIFIA reauthorization and will soon
involve PHCC members.
6 May - June 2018 | MN PHCC | www.mnphcc.org