MMA letter to Bonding Committee urges support for environmental bond bill

The Honorable Antonio F.D. Cabral, Chairman
The Honorable Thomas A. Golden, Jr., Vice Chairman
House Committee on Bonding, Capital Expenditures and State Assets
State House, Boston
 
Dear Chairman Cabral, Vice Chairman Golden and Distinguished Committee Members,
 
On behalf of the cities and towns of Massachusetts, the MMA is writing to express our strong support for the environmental bond bill, H. 4009, An Act Providing for the Preservation and Improvement of Land, Parks, and Clean Energy in the Commonwealth. We ask you to expand the legislation to incorporate the recommendations of the Water Infrastructure Finance Commission by including additional funding to meet the water infrastructure needs of the Commonwealth. We also ask you to include municipal buildings as part of the statewide investment in clean energy and energy efficiency initiatives.
 
We support the bond bill authorization of $321 million for land and park conservation, $65 million for coastal infrastructure projects, $85 million for seaports, and $57 million for the Water Pollution Abatement Trust to be used for the state’s match for federal funding of the State Revolving Loan Fund, which provides low-interest loans for municipal water infrastructure projects.
 
Dam Repair and Removal Fund
We also strongly support the update to the municipal Dam and Seawall Loan Fund (Ch. 448 of the Acts of 2012), which would dedicate $35 million to fund dam repair and removal. However, with approximately 3,000 dams in Massachusetts, most of which are in disrepair and causing untold environmental damage, we urge the Committee to include additional funding for dam repair and removal. In 2011, the State Auditor reported the state’s aging and neglected stock of dams poses a “significant threat to public safety” and requires an estimated $60 million in repairs. Additional funding, along with legislation passed last year limiting the amount of nutrients in fertilizers, would also significantly improve the health of our lakes, rivers and streams.
 
Sustainable Water Management Initiative
The bond bill would provide a small $34 million grant program for cities and towns to access as they deal with extremely burdensome mandated mitigation goals in the Department of Environmental Protection’s new Sustainable Water Management Initiative (SWMI). We believe this amount is woefully inadequate compared to the potential cost of implementing the SWMI requirements. The Sustainable Water Management Initiative proposes dramatic changes to permitting under the Water Management Act by establishing new biological categorizations and basing water withdrawal thresholds on new and unprecedented streamflow criteria. Water suppliers, including cities and towns, would be forced to minimize and mitigate their withdrawals based on these new criteria. The cost of implementing the SWMI mandates would be borne almost exclusively by ratepayers and taxpayers. This regulatory scheme proposes to limit water withdrawals, the main source of revenue, and at the same time increase the financial burden on water suppliers by imposing additional mitigation measures. Thus, communities, taxpayers and ratepayers would be trapped in a regulatory vice-grip, squeezed by declining revenues on one side and exploding costs on the other. The new SWMI regulations represent a very large unfunded mandate that would certainly overwhelm the $34 million grant program. The MMA strongly urges you and the members of your Committee to require the DEP to analyze and report back to the Legislature and the public on the full cost of complying with the SWMI mandates, and instruct the Administration to fully fund this mandate by amending line item 2200-7021 to fully reimburse cities, towns, taxpayers and ratepayers.
 
Water Infrastructure Finance Commission Recommendations
We also urge the Committee to incorporate the recommendations of the Water Infrastructure Finance Commission into the Legislature’s environmental bond bill. 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 infrastructure. Our cities and towns are also facing huge upcoming investments to deal with stormwater infrastructure, conservatively estimated by the Commission at approximately $18 billion over the next 20 years.
 
In this context, we strongly support the bond bill’s $57 million authorization for the Water Pollution Abatement Trust to replenish the State Revolving Loan Fund to support municipal water infrastructure projects.
 
We also support the capitalization of $25 million for the Small Communities Water Infrastructure Grant Fund that would provide funding to municipalities with fewer than 20,000 residents. The Small Communities Water Infrastructure Grant Fund would also be established in S. 2021, An Act Improving Drinking Water and Wastewater Infrastructure, which is currently before the House Committee on Ways and Means.
 
We urge the Committee to incorporate funding into the bond bill similar to H. 690, An Act Relative to Municipal Assistance for Clean Water and Economic Development Infrastructure. Filed by Rep. Carolyn Dykema, Co-Chair of the Water Infrastructure Finance Commission, H. 690 would authorize a 10-year water infrastructure bond to fund local drinking water, wastewater and stormwater systems, providing up to $200 million in annual funding.
 
Grants to Assist Water Utilities with Upgrading and Replacing Their Infrastructure
We also appreciate the reauthorization of the line item (2200-7018 of Chapter 312 of the Acts of 2008) to put in place a $25 million grant program to assist water utilities with upgrading and replacing their infrastructure. Since 2008, a great deal of time and effort has been focused on incentivizing best management practices by utilities, such as the development of 20-year capital improvement plans and adoption of enterprise funds. We strongly urge the committee to maintain line item 2200-7018 to the list of authorizations being carried over within Section 12 of the bill.
 
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 an enormous investment in water, wastewater, and drainage infrastructure, and 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 economic future.
 
Municipal Energy Efficiency Programs
According to information provided by the Mass Save program, energy is one of the largest non-personnel costs for cities and towns. Schools, followed by water and wastewater treatment facilities, are the greatest municipal energy users. The adoption of energy efficiency measures in these and other municipal buildings can generate substantial cost savings and increase energy security, as well as reduce greenhouse gas emissions. Municipalities have demonstrated strong leadership to increase both renewable energy use and energy efficiency practices, with 110 cities and towns meeting the high standards required to qualify as Green Communities under the 2008 Green Communities Act.
 
In line item 1102-2016, the Division of Capital Asset Management and Maintenance would be allocated $250 million in the accelerated energy program to improve the energy efficiency of state-owned buildings and municipally owned buildings. The funds may be used for planning and studies, repairs, construction, renovation, improvements and other purposes. The MMA applauds the inclusion of municipally owned buildings in this legislation for the purpose of meeting municipal facility energy efficiency needs. Allowing municipal access to this initiative would expand the reach and effectiveness of programmatic goals and strengthen the state-local partnership to protect the environment and promote smart energy use.
 
As stewards of our public lands and infrastructure, local officials care deeply about safeguarding the environment and protecting our citizens – and cities and towns respectfully request that you support and build on H. 4009 to enact an environmental bond bill to provide the partnerships, resources and tools that are necessary to fulfill this mission. If you have any questions please feel free to contact MMA Legislative Analyst Tom Philbin at (617) 426-7272 ext. 121 or tphilbin@mma.org at any time.
 
Thank you very much.
 
Sincerely,
 
Geoffrey C. Beckwith
Executive Director, MMA