Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
The Honorable Brian A. Joyce, Chair
The Honorable John F. Keenan, Vice Chair
Senate Committee on Bonding, Capital Expenditures and State Assets
State House, Boston
Dear Senator Joyce, Senator Keenan and Members of the Committee:
On behalf of the cities and towns of Massachusetts, the MMA is writing to express our strong support for S. 1947, An Act Improving Drinking Water and Wastewater Infrastructure.
We appreciate the Legislature’s commitment to fund our water infrastructure needs and to work with municipal officials to find innovative and cost-effective mechanisms to fund the construction of environmental projects. Aging infrastructure and costly regulations are posing extraordinary challenges for local governments. Now more than ever, cities and towns need strong and effective tools to protect public health and the environment and to promote economic growth.
In 2009, the Legislature created a special Water Infrastructure Finance Commission and charged that panel with developing a comprehensive plan to ensure that the Commonwealth and cities and towns can adequately maintain and upgrade their water systems. We want to thank the Commission for its great work in documenting that the Commonwealth’s municipalities face a $10.2 billion gap in the resources needed to adequately maintain drinking water systems and an $11.2 billion shortfall for resources needed to maintain wastewater systems.
S. 1947 is a good start toward closing that gap and we strongly support and appreciate the additional $450 million in state resources. This legislation would add additional funds to the Clean Water Revolving Fund and the Drinking Water Revolving Fund, and would create a new revolving fund called the Water Infrastructure for Small Communities Grant Fund.
The legislation would also provide an increase of $50 million in debt capacity for the Water Pollution Abatement Trust (WPAT) by raising the spending cap for the WPAT from $88 million a year to $138 million and directing the WPAT to provide matching grants, principal forgiveness, and zero-interest loans to help cities and towns meet their drinking water and wastewater infrastructure needs. Together with the $57 million for the Water Pollution Abatement Trust provided for in the Environmental Bond Bill, S. 1947 would provide significant resources and tools for cities and towns to repair decaying water systems.
In addition, the legislation would give communities more tools to raise revenues locally through establishment of dedicated funds commonly referred to as “water banking.” Statutes exist to cover full cost pricing for water and the establishment of stormwater fees, but they apply to existing customers and do not address increased demands resulting from expanded or new use. Water banks have been established by individual utilities to help offset costs associated with environmental mitigation imposed by regulatory entities when requesting new and expanded service. Such initiatives include, but are not limited to, restoring and protecting in-stream flow, reducing water and wastewater system demand through water conservation programs, and the elimination of excessive wastewater inflow and infiltration. Communities such as Weymouth and Danvers reported excellent results with the water banks that they have implemented, and these measures have also benefited the local economy. In a recent case, Denver St. LLC vs. Town of Saugus (and three companion cases, SJC 10927, June 29, 2012), the Massachusetts Supreme Judicial Court found that the Sewer Bank established by the Town of Saugus constituted a reasonable fee and freed up capacity in the sewer system to allow for the new development when the developers might have otherwise had to wait until the town had done enough mitigation to allow for new development. Even as the use of water banking charges becomes increasingly accepted, the enabling legislation in S. 1947 is needed now to free cities and towns from the expensive and burdensome litigation and delay tactics that will come from those who wish to deny communities this important tool.
The legislation also would make it much easier for cities and towns to join the Massachusetts Water Resources Authority by providing matching grants to communities to cover half of the entrance fee. The current entrance fee is $5 million for 1 million gallons per day of water.
Our cities and towns are also facing huge upcoming investments to deal with stormwater infrastructure, conservatively estimated by the Water Infrastructure Finance Commission to cost approximately $18 billion over the next 20 years, which is why we appreciate the provisions in the bill to provide incentives for communities to invest in green infrastructure such as dam removal, land preservation and stormwater recharge.
We strongly endorse S. 1947, and ask you to support the measure. Local officials know the importance of asset management for water systems. Water and wastewater utilities are among the most capital-intensive of all utility services. Cities and towns across the Commonwealth have made enormous investments in water, wastewater and drainage infrastructure, and they know that these investments are essential. Yet we all know that other public assets such as schools, roads and recreational facilities are easier for the public to appreciate and fund because they are so visible. In terms of financial need, the water and wastewater assets in many parts of the state require far greater capital investment. The reliability and performance of these systems are essential to our everyday quality of life and our economic future, which is why S. 1947 is so urgently needed.
Thank you very much.
Sincerely,
Geoffrey C. Beckwith
Executive Director, MMA