BEACON HILL BEAT
OCTOBER 2006
COST OF CLEAN & SAFE WATER REPORT RELEASED BY NEIWPCC
The New England Interstate Water Pollution Control Commission (NEIWPCC) released their report titled The Cost of Clean and Safe Water – Sustaining Our Water Infrastructure. With the realization that billions of dollars will be needed to modernize the wastewater and drinking water infrastructure of the country, this report investigates how that investment will affect and cost communities throughout New England. Over 200 communities participated by providing data from their wastewater and drinking water systems’ capital improvement projects, facility upgrades, and cost of daily operations and maintenance. Utilizing this data, NEIWPCC projected the maximum household cost for each community over the next 20 years. The results varied depending on the size of the community and the drinking water and wastewater rate structure. The projected annual household costs ranged from $149 to $1,449 per year for drinking water services and from $82 to $4,776 for wastewater services. The reports also revealed that the projected annual household costs, expressed as a percentage of median household income, ranged from 0.2 to 3% for drinking water services and 0.3 to 11% for wastewater services.
One thing that is clear after reviewing this report is the need to invest in the infrastructure now and develop an appropriate rate increase proposal to address current and projected water infrastructure projects. UCANE encourages all municipalities, authorities, water policy experts, and the general public to review this report and begin to think about their own community’s 20 water infrastructure needs and how that will effect the individual ratepayer.
The full report can be found on the Internet at
http://www.neiwpcc.org/PDF_Docs/costofcleanwater.pdf
DEP RECEIVES 2007 SRF APPLICATIONS
The MA Department of Environmental Protection (DEP) received applications from municipalities and authorities for Clean Water and Drinking Water State Revolving Loan Fund (SRF) projects. The DEP is reviewing the requests received and will formulate a Draft Intended Use Plan (IUP) list in the months to come, but preliminary figures identify that there is in excess of $1.3 billion in needs for Clean Water SRF projects throughout the state, and over $500 million in Drinking Water projects. When UCANE receives the Draft list from the DEP, we will distribute it to all our members.
STATE AUDITOR JOE DeNUCCI RELEASES REPORTON MWRA’S CSO PROGRAM
According to State Auditor Joe DeNucci’s report, the court-ordered work to remove excess stormwater from sewage treatment facilities was originally expected to cost $395 million and be completed in 2008. However, a series of regulatory and environmental reviews, necessary local approvals, court renegotiations, project revisions, and inflation, has pushed the price tag to $856 million with a revised completion date of 2015. Despite delays, the audit noted that 14 of the 25 projects which comprise the CSO plan have been completed, and construction has begun on nine of the 11 remaining projects.
The report notes that the MWRA's overall wastewater system improvements have reduced the average annual volume of CSO discharges from 3.3 billion gallons in 1988 to 800 million gallons today, which is a 76% reduction. The CSO program, currently the largest capital spending commitment in MWRA's capital budget, is one of three major components of the overall court-ordered Boston Harbor Cleanup Plan. The other two, which have been completed, are construction of the Deer Island Primary and Secondary Treatment facilities and the Fore River Shipyard Plant which converts sludge into fertilizer.
The full report can be found on the Internet at
http://www.mass.gov/sao/mwra2005-13233c.pdf
MA WATER POLLUTION ABATEMENT TRUST RECEIVES NATIONAL AWARD
State Treasurer Tim Cahill announced that the Massachusetts Water Pollution Abatement Trust (MWPAT) was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report for fiscal year 2005. This is the 11th consecutive year the MWPAT financial report has received the award, which is "the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management," according to the GFOA.
The MWPAT administers the SRF program, acting like a bank, using federal and state grants, as well as its bonding authority, to provide subsidized loans to the Commonwealth's cities, towns, authorities, and districts. These loans fund the construction and repair of wastewater and drinking water treatment plants and related infrastructure, at significant savings to ratepayers. Currently, the MWPAT offers a 2% fixed rate loan for a maximum term of 30 years.
Since the program was created by the Commonwealth in 1989, it has been a national leader, providing $3.2 billion in loans for water and wastewater infrastructure to 264 local governmental units, making the program the 3rd largest program of its kind in the country. Over 95% of the population of Massachusetts is served by the MWPAT.
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