Friday
March 9, 2007
House Passes $14 Billion
Water Quality Financing Bill
Source: US House of Representatives Transportation and Infrastructure Committee
"This bill has been a long time in coming. We have worked at least 11 years to replenish the State Revolving Fund so that states and local communities can expand their capacity to deal with wastewater, but reauthorizing this vital program has been delayed in the past six Congresses. However, because of sustained bipartisan support in the 110th Congress, we were able to quickly bring the bill to the House floor for consideration," said Rep. James L. Oberstar (MN), Chairman of the House Committee on Transportation and Infrastructure. "Unfortunately, the Bush Administration has steadily reduced funding for the nation's water infrastructure over the last several years. In fact, the FY08 budget proposal contained a $200 million reduction. That is simply unacceptable, because it is not sufficient funding to keep pace with the nation's water infrastructure needs. State and local governments have spent billions of dollars in improving water quality, and the Federal government must keep its commitment to this partnership and to investing in the nation's water infrastructure systems."
H.R. 720 offers increased flexibility that will benefit economically disadvantaged and small municipalities, such as allowing extended loan repayments (30 years, rather than 20) and additional subsidies (such as principal forgiveness and negative interest loans) for eligible communities. It also contains provisions to require communities to plan for capital replacement needs and to develop and implement an asset management plan for the repair and maintenance of infrastructure that is being financed.
On the House floor, Democrats defeated another effort by Republicans to strip language in the bill that applies Davis-Bacon prevailing wage protections for construction projects funded under the Clean Water SRF. Earlier in the day, the White House sent a message to the House floor threatening to veto the bill unless the Davis-Bacon provisions were removed.
"Not only does this legislation assist many communities nationwide that are least able to afford necessary improvements to their water infrastructure systems, it also protects American workers by requiring employers to pay an honest wage for an honest day's work. H.R. 720 differs from similar legislation in previous Congresses, because it specifies that the Davis-Bacon Act prevailing wage requirement shall apply to all projects financed in whole or in part through an SRF," said Rep. Eddie Bernice Johnson (TX), Chairwoman of the Water Resources and Environment Subcommittee. "At a time when America's working families are being squeezed by stagnant incomes and rising costs, ensuring that Davis-Bacon is applied to federally-funded construction projects is a key step in making the economy fairer. This issue was extensively debated during subcommittee and full committee markups of the bill, and I am pleased that amendments to delete prevailing wage requirements under the Davis-Bacon Act were defeated again today."
Congress has applied Davis-Bacon protections to federally-financed construction in 63 separate instances.
"I particularly want to thank the full committee's Ranking Member, Rep. John Mica (FL), Rep. Richard Baker (LA), the subcommittee's Ranking Republican, and Chairwoman Johnson for their efforts," Chairman Oberstar concluded. "Chairwoman Johnson served as Ranking Member of the subcommittee, she learned the issues and mastered the subject matter, and as Chairwoman, she played a leading role in bringing the bill to the floor today."
Contact:Mary Kerr, (202)225-6260