Funding Great Lakes Sewage Infrastructure: Why It’s Critical to Improving Water Quality July 25, 2012 Adam Krantz Managing Director, Government & Public Affairs

40 th Anniversary of the CWA DateMoneyTimeFlexibility Pre-1972MinimalNo DeadlinesA lot 1972A lotTight DeadlinesTight Requirements 2012MinimalTight DeadlinesMore Requirements FutureNeed More

Combined Sewer Overflows (CSOs) Over 770 CSO communities in U.S., serving 40 million people –Over 85 in Ohio Primarily in Midwest and Northeast Designed to convey wastewater/stormwat er in same pipe

CSO Design

CSO Costs Tens of Billions spent thus far to comply with 1994 CSO Policy EPA estimates $64 billion CSO need over next 20 years – true figure likely much higher CSO Consent Decrees/enforcement orders add to cost

CSO Enforcement Nationally, over 70 CSO communities under federal consent decree, many others under state order Recent federal decrees show extreme costs: –St. Louis: $4.7 billion— Chicago: $3 billion –Kansas City: $2.5 billion— DC: $3 billion Ohio CSO communities under consent decree also spending significant money: –Cleveland: $3 billion— Cincinnati: $3.2 billion –Columbus: $2.5 billion— Akron: $1 billion

The Challenge National water infrastructure funding gap of between $500 billion - $1 trillion Municipalities spending over $100 billion a year on water infrastructure –More than police, first responders, hospitals, etc. Not enough $ to perform needed capital improvement projects and meet CWA mandates: –CSOs & SSOs, Stormwater, Nutrients, Emerging Contaminants, etc. Shift to O&M from capital projects Economic downturn further hampers utilities’ ability to spend

Where Are We? – Money Matters EPA releases Integrated Planning Framework on June 12 –Changes to policy reflect NACWA input adaptive management financial capability Implementation –Regional Workshops –Funding for Pilots –Permits and Enforcement –Legislative Options on Table

Where Are We? – Money Matters Recent Positive Actions on Consent Decrees –Atlanta CSO CD Extension: Additional 13 years with no new requirements –Seattle Proposed CD: Includes Integrated Planning language & very progressive SSO CMOM requirements that could save over $350 million –Philadelphia nearing agreement on green infrastructure approach with EPA

Where Are We? - Funding Still need for a long-term, sustainable funding solution –Trust Fund (Rep. Blumenauer of Oregon remains a champion) –Mayors – any new regulations or enforcement = feds pay 50% in grants Cuts likely to SRF in FY 2013 Budget NACWA to continue to protect SRF funding New Tools Under Discussion WIFIA likely to be introduced this year By Sen. Merkley of Oregon Need to ensure this does not undercut the SRF Still lots of questions to be answered: Will it be housed at EPA? Will it be for large projects only? PABs volume caps still the subject of legislation

CWA 40 th Anniversary & Next Steps The CWA turns 40 in October The time has come to reassess five core issues: –Nutrients/Nonpoint Pollution –Cost/Affordability/Wise Investment, especially in the context of CSOs/wet weather and basic infrastructure upgrades –Holistic Watershed Approaches & Comprehensive Wet Weather Policy –The Utility of the Future –Funding