Alabama Contractor Summer 2018

THE RISO REPORT
Director of Government Relations, PHCC National
Mark Riso
PHCC WILL WORK WITH CONGRESS
AND THE ADMINISTRATION TO ENSURE
AMERICA’S WATER SYSTEMS ARE SAFE
The DeMany 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 lowinterest
financing for such projects, which are made available to
municipalities with state revolving funds (SRF).
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 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, lowcost
supplemental credit
assistance under customized
terms to creditworthy water and
wastewater projects of national
and regional significance.”
IFIA (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 Alabama Contractor • www.alabamaphcc.org • Summer 2018