By Rich Anderson
February 11, 2008

During the January 24 morning plenary session on infrastructure issues, Albuquerque (NM) Mayor Martin J. Chávez reported on the water and wastewater infrastructure needs of cities that have been the subject of review in the Mayors Water Council (MWC). He also commented on the water impacts of climate change and the need to establish an overall framework for cities to make rational decisions about water resource management and use.

Chávez pointed out that research conducted by the MWC indicates that local government spent $82 billion in FY2005 on water and sewer services and infrastructure, but the need for additional infrastructure investment exceeds $12 billion annually. While local government provides 98.5 percent of all spending on public water and sewer, Congress has provided a much lower share that has been shrinking over time. Yet, Congress and the federal government continue to increase the unfunded mandates that cities are required to meet. Cities are facing capital costs of over $200 billion to eliminate wet weather overflows, and the federal government is not providing any significant financial assistance to help the cities in this area.

Chávez pointed out that the policies of the Conference of Mayors call for Congress to recapitalize the State Revolving Fund (SRF) loan programs for water and sewer, and to modify the current tax code to remove state volume caps on private activity bonds for investment in public-purpose water and sewer. These actions would significantly boost aggregate spending on public water and sewer. He also called for Congress and the federal government to provide direct water and sewer infrastructure grants to cities that demonstrate severe economic or environmental hardships; and direct grants to cities to help pay for wet weather overflow infrastructure. Additionally, the Conference of Mayors has asked the Congress to allow a portion of the SRF loan program funds to be used by cities on “green infrastructure” projects that can help them comply with the wet weather overflow regulations and simultaneously reduce infrastructure costs and lead to sustainable water resource management.

Chávez also commented on the interrelationship between energy and water. The US Geological Survey reports that 48 percent of water used each day in America is related to energy production. Only 11 percent is used by the urban population. Yet the population continues to grow and the energy needs grow with it. We are in a cycle of growing demand for water resources, but climate change impacts on weather patterns is leading to more intensive and expanding drought in many areas of the country. Chávez stated, “That is why it makes sense for local government to establish an Integrated Water Resources Hierarchy. It can help us improve our water supply planning, guide our infrastructure investments and explain to the public what is necessary to do as a society to survive in a water scarce future.”