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<br />c~ <br />~ <br />~ <br />~ <br />~~; <br />~ <br /> <br />national water utilities bank. Congressman Watkins proposed the creation <br />of a joint private/government-owned bank to supply capital to water <br />utilities at reasonable rates while minimizing cost and risk to the <br />government. <br /> <br />In closing, Mr. Bollinger indicated he was optimistic that a compromise <br />will be reached on the cost-sharing issue and a national water policy <br />will be developed to get us back on the road to water resources <br />development. <br /> <br />The Federal Viewpoint <br /> <br />Mr. Max Dodson, Director, EPA Region VIII, Water Management Division, <br />spoke primsrily on financial issues associated with the urban <br />lnfrastructure problem. From his perspective, major issues to be <br />considered are as follows: <br /> <br />a. $118 billion will have to be spent on priority sewage projects <br />by the year 2000. (The Congressional Budget Office (CBO) <br />doesn't entirely agree.) <br /> <br />b. <br /> <br />The CBO is looking at urban infrastructure needs: <br />water supply, public transit, water resources. air <br />control, airports and wastewater treatment plants. <br />concedes that users may have to pay more or levels <br />may have to be lowered. <br /> <br />highways, <br />traffic <br />The Office <br />of services <br /> <br />c. Data in the infrastructure is inadequate. The only good <br />information is EPA's Wastewater Treatment Needs Survey. <br /> <br />d. Urban infrastructure has been neglected. It is wearing out or <br />is not being built at satisfactory levels. Financing has <br />slipped from 3.6 percent of gross nstional product (GNP) to 1.6 <br />percent of GNP in 1982 "just for water." <br /> <br />e. 600 billion backlog for all of urban infrastructure. <br /> <br />f. Federal support is decreasing so local services will have to be <br />self-sufficient and financed in new and innovative ways. <br /> <br />Mr. Dodson indicated that for the time being, EPA's major concern is <br />keeping up with Clean Water goals in light of increasing costs and <br />decreasing Federal financial assistance. National Municipal Policy <br />(draft) essentially requires compliance with standards by July 1, 1988 <br />with or without Federal financial assistance. <br /> <br />EPA's recent response to increased public awareness regarding the costs <br />of wastewater treatment is the issuance of "financial and management <br />capability requirements for publicly owned works." Policy states that no <br />grant shall be awarded for the construction of a publicly owned works <br />(POTW) unless the applicant has substsntially demonstrated that it has <br />the legal, institutional, managerial and financing capability to ensure <br />construction, operation and maintenance of proposed works. <br /> <br />9 <br />