Western Excelsior Corp. has entered into an agreement to acquire North American Green, effective March 31, 2017. Western Excelsior and North...
Former president John Donahue testifies before U.S. House Subcommittee on the Environment
American Water Works Assn. (AWWA) former president John Donahue of Machesney Park, Ill., encouraged members of U.S. Congress to make renewing water infrastructure a top priority in the U.S. Testifying before the U.S. House Subcommittee on the Environment, Donahue presented AWWA’s recommendations about the nation’s water infrastructure, cybersecurity, source water protection, the energy-water nexus, affordability and the importance of sound science and transparency to guide regulatory actions.
“Having sound water infrastructure requires not only what we traditionally think of as water infrastructure—pipes and treatment plants—but involves additional issues, such as cybersecurity, protection of source waters, effective use of resources, and similar issues,” said Donahue.
Donahue, speaking on behalf of AWWA’s 50,000 members, called the committee’s attention to the Water Infrastructure Finance and Innovation Act (WIFIA) as a key new tool in fixing and expanding the nation’s aging water infrastructure. WIFIA provides low-interest, long-term federal loans to communities.
Congress funded WIFIA for the first time in the 2017 federal budget, appropriating $20 million for the program. Based on current estimates from the Office of Management and Budget, funds appropriated through WIFIA could be leveraged at a ratio of about 60:1. If the program was fully authorized at $45 million for fiscal year 2018, it could cover more than $2 billion in credit assistance.
“This program provides an exceptional vehicle to stimulate the investments needed to sustain our nation’s drinking water and wastewater infrastructure,” Donahue said.
Donahue urged Congress to fund the Drinking Water State Revolving Fund at least at $1.8 billion, eliminate the volume cap on private-activity bonds and preserve the tax-exempt status of municipal bonds. These are all lower-cost financing options utilities rely on to fund local water infrastructure projects outside of WIFIA.
Donahue also spoke of the importance of protecting infrastructure against cyber-attacks through a voluntary, collaborative approach with technology providers. “Technical support programs are needed to help systems, particularly in small and medium-sized communities, overcome the technical knowledge/skills gap associated with many of the security systems that have been deployed,” he said.
To improve source water protection, Donahue also encouraged Congress to sustain and expand targeted programs, particularly the conservation programs in the Farm Bill, to support collaboration between agriculture producers and water systems.
“The federal Farm Bill contains the largest funding source for agricultural land conservation efforts. Not only is robust funding needed for such efforts, but they need to be focused where they are achieving the greatest public good,” Donahue said.