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Water Resources & Environment: Current Environment
In the wake of Hurricane Katrina, renewed attention and emphasis has been placed on the nation’s water resources, levee infrastructure and flood protection, generally. What’s more, national security discussions now regularly include a growing need for greater security surrounding America’s dams and drinking water, and the topic of climate change has recently assumed a prominent place in the nation’s political discourse. All of this, as well as the growing community interest in environmental restoration efforts, provides unique opportunities for federal support of state and local sponsored projects and initiatives.
Authorizing Projects Through The Water Resources Development Act
Many important water resource, environmental restoration and infrastructure projects were the focus of the long-delayed Water Resources Development Act (WRDA), which has now been enacted into law over the President’s veto. WRDA of 2007, which authorizes the Army Corps of Engineers’ Civil Works Program, is the first water resources authorization bill passed since 2000. The legislation authorizes billions of dollars for water resources projects in every state across the country.
Looking ahead, House Transportation and Infrastructure Committee Chairman James Oberstar (D-MN) and Senate Environment and Public Works Chairwoman Barbara Boxer (D-CA) have announced their intention to return consideration of future WRDA bills to a regular 2-year cycle, which will present opportunities for state and local governments and authorities to enter strong federal partnerships that ensure their projects continue to move forward. In fact, there is already a strong push in both houses of Congress to begin deliberation on the next bill soon. As a result, it is critical that local agencies begin positioning their projects for inclusion in this key legislation.
Working Within The Appropriations Cycle
In addition to WRDA, the 110th Congress also addressed national public infrastructure needs through its Fiscal Year 2007 and Fiscal Year 2008 annual appropriations. Early in 2007, the Democratic-controlled Congress passed a continuing resolution that kept funding at the previous year’s levels through the end of September 2007 and announced that they would strip all congressionally-designated funding, or “earmarks,” from appropriations bills. This move left many in the water and environment community confused about the process and not sure how to secure federal support for their clients. Carmen Group, however, was able to mobilize quickly and work closely with the Corps and local sponsors on work plans with extremely positive results. Through our aggressive administrative efforts with the Corps, we were able to have the agency designate over $143 million in FY 2007 appropriations, despite the continuing resolution and the rule of no earmarks.
While this year’s appropriations cycle was unique given these changes, Carmen Group has an established record of bringing home success for our clients, no matter the environment.
What We’ve Seen So Far In FY 2008
Over the last number of years, inadequate budget requests, particularly for the Corps of Engineers, have been rejected by Congress in the appropriations process as Members recognize the importance of water resources development to the nation’s well being. So far in FY 2008, Congress has sought to increase funding in the Interior and Environment Appropriations and Energy and Water Appropriations bills, restoring higher levels of funding to critical environmental infrastructure projects. For example, with regard to the Energy and Water Appropriations bill, the Senate provided for a total of approximately $32 billion for the Department of Energy, the Army Corps of Engineers, Interior Department water programs, and various other related programs and projects. This amount represents an increase of $1.1 billion above that which the White House requested. Two accounts where we saw the greatest increases were the Army Corps’ General Investigation and Construction accounts. The Senate funded the General Investigation account at $172 million, nearly double that which the White House had sought in its budget, with the House also opting to provide increased funding ($120 million), albeit not to the same extent the Senate did. Both chambers provided approximately $2 billion for the Corps’ Construction account – an amount that exceeds the White House request by over one-half billion dollars. To place this into context, the White House request would have funded 66 projects in all; this increased funding reportedly will allow the Corps to fund over 200 projects in Fiscal Year 2008.
The increases Congress has provided to date demonstrate the widespread need for and support of continued investment in our water resources infrastructure at the local level, where problems have a direct impact on the quality of life in our nation’s communities. President Bush has threatened a veto against any bill whose cost exceeds that which he proposed in his initial budget. Democrats argue that increased funding is needed to overcome several years of programmatic under-funding.
With Congress increasing programmatic funding to match the nation’s needs, there will be further opportunities for federal support of local projects. At the same time, as the Democratic party has regained majority control of Congress for the first time in over a decade, there have been calls for increased governmental transparency, and thus Washington has become politically sensitive to the use of earmarks. Consequently, despite increased funding levels, we are seeing fewer earmarks, which means even greater competition for federal dollars. As a result, many badly needed projects do not receive funds, and even those projects that do generally don’t receive enough to proceed on efficient schedules. The result is delays, which mean higher total costs, increased community exposure and perhaps more importantly, a delay in the delivery in project benefits. It is this type of scenario where we can be most helpful and provide assistance to your community. We develop and execute strategic plans for securing funds at very significant levels, and we have a proven track record of doing so for the last 20 years.
Looking Ahead
At Carmen Group, we continue to work hard to convince the Administration and Congress of the importance of water resources development to the nation. These programs not only save lives and property, but are essential to economic growth and job creation. There are examples across the country of communities with whom Carmen Group has successfully worked to address a flood threat and to take the extra steps to build a progressive asset for the area. For example, Carmen Group worked with the Corps of Engineers at the highest levels on behalf of a small wine producing county in northern California. We convinced the Corps to abandon their concrete wall approach and agree to the locally supported, environmentally sensitive alternative. We not only successfully changed the way the Corps of Engineers approaches flood control projects, but we also opened the door to millions of dollars in appropriations and provided the community with numerous new recreational opportunities. This improved environment has spurred significant economic development throughout the community, revitalizing the downtown. Communities are now finding their way to the riverfront and the challenge is to make a sound investment. Carmen Group can help make this investment a wise one.
FY 2009 Appropriations
As Congress continues its work in finalizing the Fiscal Year 2008 appropriations process, it is critically important to begin looking ahead to the Fiscal Year 2009 appropriations cycle that will soon be upon us. This process begins immediately with the Office of Management and Budget setting priorities this year and the submission of the President’s Budget to Congress early next year. Soon after that, Members will file their requests and the House and Senate appropriations subcommittees will hold hearings in their respective chambers. These appropriations bills include funding for all the programs of the federal government that support the nation’s water resources, including the Army Corps, the Environmental Protection Agency, the Department of the Interior and a host of other domestic water infrastructure programs. Completion of work on this year’s legislation permits the Congress to immediately begin work on the next fiscal year’s appropriations process, reminding us that it is never too early to begin planning ahead.
The Next Water Resources Development Act
In addition to the appropriations cycle, there are other opportunities for federal support. As stated above, Congressional leadership of the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee are already planning for the next WRDA bill, staying true to their expressed commitment of returning this important authorization bill to a two-year cycle. In addition to a large number of project authorizations, WRDA bills typically also include important reforms designed to make the Corps of Engineers’ Civil Works Program more responsive to the states and local communities, providing a significant share of project costs and increasing Congress' confidence in the Corps. Carmen Group is actively engaged with the congressional leadership and committee staff responsible for drafting legislative provisions and vetting projects that will be included in WRDA and is thus well positioned to help with your water resources needs. With congressional action completed on one WRDA bill and beginning on the next, we are already aggressively meeting with committee staffs and Members’ offices to bring forward critical public agency needs and projects.
Department of the Interior Bureau of Reclamation Programs
Recently, the Department of the Interior’s Bureau of Reclamation announced new federal partnering opportunities under the Water 2025 Challenge Grant Program. Through that program, the Bureau of Reclamation enters into collaborative partnerships with local entities on a 50/50 cost-share basis to advance projects that promote water conservation, efficiency, and water marketing. To date, the program has funded nearly 80 projects in 16 western states, ranging from the establishment of a water bank for the benefit of seven irrigation districts, six cities and three tribes, to the expansion of a real-time water monitoring and control system in a five-county area. Other grants have been used to fund projects that recharge groundwater, install flow-measurement and leak-detection equipment on canals and pipelines, and replace unlined canals with new pipelines.
In addition to the Bureau’s Water 2025 program is the agency’s larger water reclamation and reuse program, also known as “Title XVI” in reference to the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992 under which it was authorized. Through that program, Congress directed the Secretary of the Interior to create a program for the investigation and identification of opportunities to implement water reclamation and reuse projects. Since its original creation, the Bureau has partnered with local nonfederal and wastewater agencies to conduct appraisal and feasibility studies for water reclamation and reuse projects; research and demonstration programs to test water reclamation and reuse technologies; and even construct reuse projects following specific congressional authorization. Carmen Group maintains the necessary understanding of Bureau of Reclamation operations to help clients navigate the agency’s application process and once filed, can capitalize on our strong relationships in Congress and the executive branch to position your application for success.
U.S. Environmental Protection Agency (EPA) Programs
Although there are several authorizing statutes that govern EPA’s water programs, only section 214 of the Clean Water Act makes specific reference to water reuse. Among other things, that section requires the EPA Administrator to develop and operate a continuous public information and education program on recycling and wastewater reuse. However, it is through several larger program areas of water treatment, wastewater management and water resources management that funds are made available, namely the EPA’s State and Tribal Assistance Grants (STAG) and State Revolving Funds (SRF). Specific appropriations are needed in the Interior Appropriations bill, which includes funding for U.S. EPA, and for the State and Tribal Assistance Grants program. After seeing funding for EPA’s programs reduced the past couple years, FY 2008 saw renewed emphasis on this program’s importance with greater amounts of funds allocated towards it, albeit earmarks within the program remained low as was the case across the board this fiscal year. Nonetheless, the EPA STAG program still remains a good source for water and wastewater projects.
U.S. Farm Bill
With authorization for many of the nation’s agricultural programs expiring in September 2007, Congress is working to renew many of these programs during the 110th Congress with passage of the 2007 Farm Bill. That bill, which is generally considered on a five-year cycle, is used to set overall agricultural policy for the United States and can be highly controversial as it has the potential to impact international trade and food safety. At the same time, the Farm Bill authorizes U.S. Department of Agriculture programs that provide funding for environmental preservation and the well-being of rural communities. The 2002 version of the legislation, for example, included the Resource Conservation and Development Program, which provides support for “quality of life” improvements attained through natural resources and land use conservation, as well as community development efforts. It also provides funding for the Department’s Rural Utilities Service and Rural Development Water and Waste Disposal Programs, through which small communities can receive grants and guaranteed loans for water, sewer, storm water and solid waste disposal facilities.
At Carmen Group, we can work to help communities explain the importance of these programs and raise their profile before Congress and the relevant Federal agencies. We believe that when decision-makers in Congress are presented with the facts regarding a project’s benefits, as we have done for our current clients very effectively for the last 20 years, significant funds can be provided to advance this important work. We have a great history of success upon which we look forward to building each and every day. We are eager to help you achieve your communities’ goals.
For additional information on key water and environmental issues, see the following:
U.S. Department of Interior
U.S. Bureau of Reclamation
U.S. Environmental Protection Agency
House Transportation & Infrastructure Committee
Senate Environment & Public Works Committee
House Appropriations Committee
Senate Appropriations Committee
U.S. Army Corps of Engineers
National Association of Flood & Stormwater Management Agencies (NAFSMA)