Members of the Sustainable Water Infrastructure Task Force announced by Gov. Rendell in February convened for the first time this week and began the work of addressing the estimated $20 billion funding shortfall needed to upgrade Pennsylvania's aging and deteriorated drinking water and wastewater treatment infrastructure.

The Task Force is scheduled to make its recommendations in October, too late to help the sewage system ratepayers and farmers in over half of Pennsylvania that now face specific mandates by the Department of Environmental Protection under the federal Clean Water Act to reduce nutrient pollution in Pennsylvania waters flowing to the Chesapeake Bay. The cost to meet these mandates alone is estimated to be over $1.5 billion. (See 4/14/08 PA Environment Digest)

"Pennsylvania's water-related infrastructure is old," said DEP Secretary Kathleen McGinty. "Many of our systems—some of which date back to before World War II—suffer from overflows, chronic leaks, and a shortage of treatment capacity. Many of these issues stem from under funded operations, repair, rehabilitation and replacement work.

"We need to act now and address this matter because, without a reliable infrastructure, our economy and way of life will suffer. Over the next six months, we will look at how we can ensure reliable funding for our water and wastewater systems, and consider how we can utilize alternatives to costly capital upgrades that will yield a safe and dependable water supply."

According to a federal Clean Water Needs Survey, Pennsylvania is facing nearly $11 billion in unmet drinking water infrastructure needs and at least $7.2 billion in unmet wastewater infrastructure needs.

Secretary McGinty added that Pennsylvania's ability to address the unmet funding needs is made more difficult because of declining support from the federal government.

"Pennsylvania's share of the federal Clean Water State Revolving Fund has been cut in half during the last three years—down $30 million to $27 million," said Secretary McGinty. "And, the president's fiscal year 2009 budget proposal requested only $555 million for this program, which would be the lowest level of funding in its history, if enacted.

At the same time, the Pennsylvania Municipal Authorities Association said state funding to support wastewater treatment operations declined by over $324 million over the last six years.

Gov. Rendell created the task force, with Executive Order 2008-02, to consider new funding options, as well as non-structural alternatives to expensive capital upgrades, such as nutrient credit trading, water re-use and conservation.

It is responsible for developing a report by October 1 that provides recommendations and financing options to support water-related services in the Governor's fiscal year 2009-10 budget proposal.

As part of its inaugural meeting, DEP organized work groups and named chairs and DEP support staff to each group. DEP also invited others outside the Task Force to be part of these work groups--

· Needs Assessment -- Examine the current and projected costs for the construction, upgrade, repair and operation and maintenance of Pennsylvania's drinking water and sewage infrastructure. Chair: John Schombert, 3 Rivers Wet Weather Project. DEP Staff: Lee Murphy.

· Innovative Measures -- Examine the projected cost savings realized by the consideration and implementation of all available non-structural alternatives such as trading programs. Chair: Chuck Wunz, HRG Consulting. DEP Staff: Paul Zeph.

· Financial Resources -- Examine the current and projected financial resources to address water and sewer services and infrastructure needs including potential sustainable funding from federal, state and local source and public/private partnerships, and determine if operation and maintenance can be funded. Chair: Steve Stetler, PA Economy League. DEP Staff: David Miller.

· Financial Sustainability -- Establish requirements for available funding including consideration for asset management, board and local official training, full-cost pricing, and prioritization and targeting of resources. Chair: Dean Kaplan, Public Financial Management, Inc. DEP Staff: Nicki Kasi.

· Legislative and Regulatory Needs -- Review existing statute and regulation and identify any provisions that prevent the effective implementation of an Infrastructure Sustainability Initiative to include the elements of sustainability defined in the Executive Order. Chair: Erik Ross, Delta Development. DEP Staff: Pam Bishop.

Members of the Task Force include:

· State Agencies (7): Kathleen McGinty, secretary, Department of Environmental Protection, Donna Cooper, secretary, Governor's Office of Policy and Planning, Dennis Yablonsky, secretary, Department of Community and Economic Development, Steven Kaplan, secretary, Department of Banking, Paul Marchetti, executive director, Pennsylvania Infrastructure Investment Authority, Sonny Popowsky, Pennsylvania's Consumer Advocate, Karl Brown, executive director, State Conservation Commission

· Legislators (8): Rep. Bud George, majority chair, House Environmental Resources and Energy Committee, Rep. Scott Hutchinson, minority chair, House Environmental Resources and Energy Committee, Rep. Robert Freeman, majority chair, Local Government Committee, Rep. Stanley Saylor, minority chair, Local Government Committee, Sen. Mary Jo White, majority chair, Senate Environmental Resources and Energy Committee, Sen. Raphael Musto, minority chair, Senate Environmental Resources and Energy Committee, Sen. Robert Regola, majority chair, Local Government Committee, Sen. Jim Ferlo, minority chair, Local Government Committee

· Local Officials (9): Terry Kauffman, manager, Borough of Mount Joy, William Inks, director of finance and administration, ALCOSAN, George Crum, director, Southwest Delaware County Municipal Authority, Douglas Bowen, general manager, Whitehall Township Authority, Ginnie Anderson Kane, commissioner, Upper Allen Township, and first vice president for the Pennsylvania State Association of Township Supervisors' Sustainable Water Infrastructure Task Force, Edward Troxell, director of government affairs, Pennsylvania Association of Boroughs, Richard Marcinkevage, manager, City of Lock Haven, Tom Ceraso, county commissioner, Westmoreland County, Lester Houck, secretary-treasurer, Pennsylvania State Association of Township Supervisors

· Environmental Groups (1): Judy Jengo, executive director, Green Space Alliance

· Drinking Water Industry (2): Kathy Pape, President and CEO, Pennsylvania American Water, Nicholas DeBenedictis, chairman, president and CEO, AquaAmerica Inc.

· Others (3): Dr. Jared Cohen, president, Carnegie Mellon University, Sally B. Holbert, registered landscape architect, founding principal, Land Logics Group, Donald Bluedorn, chair, Statewide Water Resources Committee

The Task Force will hold a series of public meetings around the state during the next two months to gather public input on water infrastructure needs.

The next meeting of the Task Force will be May 8 to hear testimony on infrastructure needs.

For more information, visit the Sustainable Water Infrastructure Task Force webpage or contact Marcus Kohl, DEP, 717-783-7404 or send email to: mkohl@state.pa.us.

NewsClips: Group Starts Struggle of Finding $20 Billion for Water, Sewer Lines

Easton Will Spend $13 Million on Water System Upgrades

Links: Coalition Proposes Pennsylvania Fair Share for Clean Water Funding Plan

4/18/2008