Water and Wastewater Infrastructure needs

As part of the 2011 NH ASCE Infrastructure Report Card update, it was reported that infrastructure investment for water and wastewater infrastructure within the state was about $1 billion each. It is hard for an average citizen to imagine this amount of investment is needed when our water and wastewater systems seem to work fine. 

The issues are exemplified when considering that the Environmental Protection Agency (EPA) has been reviewing environmental impacts to the Squamscott River and the Great Bay Estuary reportedly being caused by elevated nitrogen levels. Discharges from wastewater treatment plants in communities including Rochester, Dover, Portsmouth, Durham (including UNH), Newmarket and Exeter may be required to meet more stringent nitrogen constraints. The EPA has estimated the upgrades could cost over $250 million dollars.

Upgrades to water and wastewater facilities have been funded by the EPA's State Revolving Fund (SRF) program, but currently there has been a lack of political will to reauthorize this program. The program took a $1 Billion dollar cut between FY 2010 and FY 2011.

Of particular interest in the bills of the 112th congress is the Sustainable Water Infrastructure Investment Act of 2011 (HB 1802/S 939). Exempt Facility Bonds (EFBs), also known as private activity bonds are tax incentives that encourage private investment in public infrastructure. Unfortunately federal tax laws have historically limited he amount of EFB debt that can be issued to a state. Competing with other infrastructure projects within the cap, water and wastewater projects only amounted to about 1.3% of the EFB issued. this bill would exempt EFB investment in water and wastewater projects from the state EFB cap.

This is not a magical solution, but it does make billions of investment dollars available to water and wastewater infrastructure invests.

Special thanks to the National Utility Contractors Association (NUCA) for information on HB 1802.