WRDA Legislation in the 114th Congress: Clean Water Act and Infrastructure Financing Provisions in S. 2848 and WIIN

WRDA Legislation in the 114th Congress: Clean Water Act and Infrastructure Financing Provisions in S. 2848 and WIIN

Updated January 6, 2017
WRDA Legislation in the 114th Congress: Clean Water Act and
Infrastructure Financing Provisions in S. 2848 and WIIN
Most provisions of Water Resources Development Act
 Section 7201 of S. 2848 would have revised CWA
(WRDA) bills typically relate to authorizing navigation,
Section 221 to authorize $1.8 billion in grants to assist
flood control, and other projects of the U.S. Army Corps of
municipalities in planning, designing, and constructing
Engineers (Corps) or more broadly to water resource
facilities to treat municipal combined sewer overflows,
infrastructure such as dams and levees. In the Senate in the
sanitary sewer overflows, and stormwater. Section 221
114th Congress, WRDA 2016 (S. 2848) would have
was enacted in 2001 to provide a source of funding
authorized new Corps studies and projects. It also included
separate from the SRFs to help communities pay for
a number of amendments to the Clean Water Act (CWA; 33
sewer overflow projects, which can be very costly. It
U.S.C. §1251 et seq.). Title VII of S. 2848 would have
was never funded, and authorization of appropriations
authorized and revised several existing CWA provisions
expired in FY2003. (Not included in WIIN)
and added CWA provisions to address management,
treatment, and financing of water quality infrastructure. It
 Section 7202 would have authorized the Environmental
also included provisions concerning water infrastructure
Protection Agency (EPA) to make technical assistance
financing more broadly, beyond the CWA. Similar
grants to owners and operators of small (<10,000
provisions were not included in the House version of
population) and medium (10,001-100,000) wastewater
WRDA 2016, H.R. 5303.
treatment works. It would have authorized $125 million
total for five years to be appropriated. States also could
As described below, water resources legislation enacted in
use 2% of their clean water SRF capitalization grants to
December 2016, the Water Infrastructure and
provide technical assistance. P.L. 114-98 authorized
Improvements for the Nation Act (WIIN, P.L. 114-322),
similar technical assistance to small drinking water
includes only a few of the CWA and water infrastructure
systems. (Not included in WIIN)
financing provisions in S. 2848. CRS In Focus IF10536,
Water Infrastructure Improvements for the Nation Act
 In 2012 EPA adopted a policy intended to provide
(WIIN), by Nicole T. Carter et al., is an overview of WIIN.
communities with flexibility to prioritize investments in
wastewater and stormwater projects needed for CWA
Clean Water Act Amendments in S.
compliance. Section 7203 would have codified this
2848 in the 114th Congress
policy (see CRS Report R44223, EPA Policies
The CWA is the principal law that deals with polluting
Concerning Integrated Planning and Affordability of
activity in the nation’s streams, lakes, estuaries, and coastal
Water Infrastructure, by Claudia Copeland). Section
waters. It consists of two major parts: regulatory provisions
7203 also would have established an Office of
that require industries and cities to abate pollution and
Municipal Ombudsman at EPA to assist cities in
provisions that authorize federal financial aid for municipal
complying with federal environmental laws. (Not
wastewater treatment plant construction.
included in WIIN)
The 1987 law initiated a program of grants to capitalize
 Section 7204 would have required EPA to promote
State Water Pollution Control Revolving Funds (SRFs),
“green infrastructure,” which uses or mimics natural
low-interest loan programs that are administered by states
processes to infiltrate or reuse stormwater runoff
for wastewater treatment construction and other eligible
beneficially on-site where it is generated, in contrast to
activities, in a new Title VI. Under the revolving fund
traditional approaches to managing urban stormwater
concept, loans are repaid to the states, to be used for future
utilizing so-called “gray infrastructure,” including pipes,
construction in other communities, thus providing an
gutters, ditches, and storm sewers to transport
ongoing source of financing. In 2014, as part of the Water
stormwater away from urban areas (see CRS Report
Resources Reform and Development Act (WRRDA 2014,
R43131, Green Infrastructure and Issues in Managing
P.L. 113-121), Congress enacted amendments to Title VI
Urban Stormwater, by Claudia Copeland). Examples
that, among others, expanded the list of SRF-eligible
include green roofs, rain gardens, and permeable
projects and extended SRF loan repayment from 20 to 30
pavements. (Not included in WIIN)
years. Other than the amendments in WRRDA 2014,
Congress has not enacted major CWA amendments since
 To assess communities’ capability to finance individual
1987 (P.L. 100-4), leading to interest in attaching CWA
wastewater infrastructure projects, EPA relies
modifications to other legislation with broad support, such
significantly on guidance issued in 1997, which critics
as WRDA 2016.
say allows consideration of too few of the factors that
affect a community’s ability to pay for needed projects
(see CRS Report R44223, EPA Policies Concerning
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WRDA Legislation in the 114th Congress: Clean Water Act and Infrastructure Financing Provisions in S. 2848 and WIIN
Integrated Planning and Affordability of Water
Section 7401 of S. 2848 included $70 million in direct
Infrastructure). Section 7205 would have required EPA
spending (not subject to appropriations) for EPA to make
to update this guidance and to expand the criteria for
WIFIA loans. Under the bill, this WIFIA assistance could
determining affordability. It would have required EPA
be used for emergency situations related to lead or other
to use the revised guidance and, if it does not do so,
drinking water contaminants (in response to lead
provide a public explanation. (Not included in WIIN)
contamination of water supplies in Flint, MI, and
elsewhere) and generally for water infrastructure that is
 Two provisions of S. 2848 addressed innovative
eligible for WIFIA loans from EPA. (Not included in
wastewater technologies. The CWA currently allows
WIIN)
states to make subsidized SRF loans (e.g., negative
interest, or partial principal forgiveness) for certain
Section 7302 of S. 2848 included several limited changes to
types of projects. Section 7308 would have amended the
WIFIA. It would have added eligibility for certain types of
CWA to allow states to make subsidized loans for
desalination or water recycling projects that the Corps could
projects that encourage innovative technologies. In
assist and drought mitigation or resilience projects that EPA
addition, Section 7304 would have established an EPA
could assist. It would have allowed communities to pay
grant program for technical assistance and financing of
loan fees from the loan itself and allowed in-kind
innovative technology projects involving water
contributions and project costs incurred before receiving a
conservation, water quality, and wastewater treatment.
loan to count towards the nonfederal share of project costs.
Authorized funding for the grants would have been $50
(Included in WIIN) WIFIA assistance is limited to no more
million per year without fiscal year limitation, plus $10
than 49%, and total federal assistance from WIFIA and
million in direct spending authority to remain available
other sources generally may not exceed 80%; WIIN did not
until expended to allow implementation of the grant
change these limits. Finally, Section 7302 also would have
program to begin immediately. (Not included in WIIN)
removed the “pilot” designation for WIFIA. (Not included
in WIIN)
 Several other provisions in S. 2848 addressed
geographic-specific water quality programs. Sections
Further, S. 2848 included sense of the Senate language that
7631-7632 would have authorized appropriations for
appropriations to support WIFIA should supplement not
Long Island Sound programs under the CWA and the
replace SRF funding under the CWA and Safe Drinking
Long Island Sound Partnership Act (33 U.S.C. § 1269
Water Act. This provision responded to concerns of state
note). Section 7611 proposed to codify the Great Lakes
environmental agencies about reduced appropriations for
Restoration Initiative (GLRI) in the CWA (see CRS In
those programs, which are the largest source of federal
Focus IF10128, Great Lakes Restoration Initiative
financial assistance for local water infrastructure projects.
(GLRI), by Pervaze A. Sheikh). The GLRI is an
(Included in WIIN)
Administration program to restore the Great Lakes
ecosystem through a single initiative that coordinates
Finally, Section 7303 would have established a federal trust
funding for activities of multiple federal agencies. The
fund administered by EPA for the long-term financing of
Consolidated Appropriations Act, FY2016 (P.L. 114-
wastewater and drinking water infrastructure projects. The
113) provided statutory authority for the GLRI with
trust fund would receive revenues from a voluntary fee that
one-year authorization of appropriations. Section 7611
manufacturers would pay for a label on consumer products.
of S. 2848 would have authorized $1.5 billion in
This proposal is one of several options recently considered
appropriations for five years. Sections 7641-7646 would
by policymakers—in addition to WIFIA—to address water
have established a free-standing Delaware River Basin
infrastructure financing needs (see CRS Report R42467,
restoration program (not part of the CWA). Finally,
Legislative Options in the 114th Congress for Financing
Section 7651 proposed to add provisions to the CWA to
Water Infrastructure, by Claudia Copeland, Steven
establish a program for environmental protection and
Maguire, and William J. Mallett). (Not included in WIIN)
restoration of the Columbia River Basin. (WIIN
includes the Columbia River Basin and modified GLRI
In addition to traditional WRDA provisions authorizing
provisions only.)
Corps projects, S. 2848 also included a number of
provisions to address the recent drinking water crisis in
Other Water Infrastructure Financing in
Flint, MI, and the state of the nation’s drinking water
S. 2848 in the 114th Congress
infrastructure generally. These other provisions would, for
In WRRDA 2014, Congress established a five-year pilot
example, establish a grant program to address lead or other
program, the Water Infrastructure Finance and Innovation
contaminants in drinking water and provide mandatory and
Act (WIFIA), to provide federal credit assistance (direct
discretionary funding to aid the city and citizens of Flint.
loans and loan guarantees) for certain Corps water resource
Many of these provisions were included in the WIIN Act.
projects and EPA wastewater and drinking water projects
For information, see CRS In Focus IF10577, Water
(see CRS Report R43315, Water Infrastructure Financing:
Infrastructure Improvements for the Nation (WIIN) Act,
The Water Infrastructure Finance and Innovation Act
P.L. 114-322: Drinking Water Provisions, by Mary
(WIFIA) Program, by Claudia Copeland). Because of lack
Tiemann.
of appropriations, until recently, the program has not yet
been implemented. However, Congress provided initial
Claudia Copeland, Specialist in Resources and
appropriations ($20 million) in P.L. 114-254, and EPA
Environmental Policy
expects to begin making loans in 2017.
IF10471
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WRDA Legislation in the 114th Congress: Clean Water Act and Infrastructure Financing Provisions in S. 2848 and WIIN

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