WSP02687 - Laserfiche WebLink

Home Browse Search

Of\!)163 - - - - - - -CRW~-- ------ -- - -~~ .The~~Diffuser A 0Ui01edy Tectncal Advisory 110m NRWA VOl. 2. No. 2 SprIng 1992 GAO Report: State Revolving Funds Not Meeting Wastewater Treatment Needs BCU'kground Olairman for the Conuninee un Public Works and TransportJ.tion House of Represemative. Roocn A. Roe requested the General Ac- counting Office (GAOl to review me Slate'... impkmem:nion of USEPAs Selle Water Pollution Control Revolving Fund (SRF) Pro- gram. This repon was compklt"J and presented to .\1f. Roc;"s c.:onunit- tee in Januarv 1992. In 19M? the Cong:ress cre:lled :l funding program at the state kvd to replare construction grants previously authorized under the Federal Water Pollution Control Act. The program is capitalized \vith federal grants and J 20 pert'em state match Lhrough 199-t after which lilT1c: the federal conuibution \";11 end. States can use [he funds to suppall consUllction of wa:;;.(eW~.Her tre:lUnent and other water quality pro- . grams including estuary protection ;md non-paint-source pollution control. Findings Severa] ch:lIlgescould improve the SRF program. in particular land upon which a tre:lunem plant is built and ea....emcnL.. and right of ways needed for wastewater collection systems l.'annOl be purchased With SRF assistance. If land COSL'i were allowable. communities would nO! have 10 borrow money in the private financial market at higher interest rJtes and ultimately increa.<;e cost.\. The statute prohibiL\ states from offering loan tenns ocyond 20 years. However, some treatment facilities SUdl a.\ tiltration systc.."ms and lagoons have a design life ex:ceeding 20 years_ Sm;tll cOlTlllluni- ties often necod such treatment facilities and are most affected by the restriction on the loan term and may incfl::lSt' USC-f changes unnecc:s- sarily. If states had the tle\.ibility 10 e\.tend the loan tenns when the deSIgn life of the plant and equipmem e:,<ceed 20 years. user fees could be reduced accordingly. Recommendations The GAD reconunends th:u Congress consider :.unending the Clean Water Act 10 authorize states 10 detennine what land can Ix linanced _through the SRF progrJm and allow states to elllTllnate the dlspanry betv,een design life of lhe plant and the loan tenTIS. Comment ACI.'ording: !O GAQ. repbcing construction grams wnh SRF'i was a 'itep toward more efficient government investment in wastewa- ter lreatrrlent facilities. Officials surveyed by GAO indic:ned thJ.t local govemmenlS will develop mer charge systems that bener re- flect operation, maintenance, and replace- mt"nt COSl'i and will be less likely to choose more costly ahematives to meeting their \\.'asteWaler lft':!tmem needs. 21