5.4. ERMUSR 02-10-2015 - Laserfiche WebLink

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AMDM L( rinriagfil Position Statement Clean Water Costs Background Despite the tremendous investment by local government, the U.S. Environmental Protection Agency estimates that there still is a$500 billion"needs gap" to meet water and wastewater infrastructure needs and to fie. comply with current environmental mandates. MMUA members, who have made heavy investments I � in sewer and water facilities over the years, are experiencing first-hand the need for much greater M; investment, particularly regarding the construction, operation and maintenance of water and wastewater treatment facilities. One of the greatest sources of these '' cost increases comes from the expanding number of regulations and the growing list of contaminants that The cost of clean water affects the price of many other products must be dealt with under state and federal law. In and commodities. August 2014, the Minnesota Pollution Control Agency adopted new numeric nutrient and Total Suspended supports a requirement that a specific agency in state Solids standards that will result in the classification of government be charged with keeping track of these costs many rivers and streams as"impaired" and hundreds of going forward and report the results of these studies at millions of dollars in compliance costs. the beginning of each biennial session. MMUA members recognize that expanded investment It is not the intent of MMUA or its members to argue in water and wastewater facilities is not only important for or against the inclusion of particular substances for public health, but has become an essential ingredient in the list of contaminants established by State for economic development. The heavy cost increases or Federal authorities that must be removed from for water and wastewater facility investment, if not drinking water or from wastewater, but we encourage addressed, are sure to adversely impact the economic the scientific peer review of proposed regulations.We viability of our Minnesota cities. Despite these cost believe that elected and appointed policy makers must increases, there have been serious proposals on the state be provided information that will help focus attention and federal level to eliminate the income tax exemption on the dramatically increasing costs of clean water. on municipal bonds, the most important financial tool we Access to accurate cost data will be a great help in the have in funding necessary infrastructure improvements development of policies to address this quiet crisis in to water and wastewater facilities. local government services. Further, performing a cost- benefit analysis of proposed water regulations would There seems to be both a lack of integrated planning help policymakers determine if the proposal is the best and recognition at the state and federal levels regarding means to deliver the desired clean water outcome. the tremendous problem that this situation has created for Minnesota communities, which must bear most of Also, we call upon the State Legislature and Congress to the burden from the increased costs of new water and preserve the state and federal income tax exemption on wastewater treatment facilities.We believe that public municipal bonds, our most important financial vehicle policy makers at all levels should be in a position to for raising the capital to fund the increasingly expensive review and understand the increased costs brought infrastructural improvements that must be made to about by this increased regulation. protect Minnesota's water resources. We further request that the State Legislature enact a provision to allow MMUA Position cities to track exemptible sales taxes paid out and to MMUA favors a state study that would chart historic receive a refund from the Department of Revenue. This costs of construction, operation and maintenance tool would be specifically helpful in circumstances such of water and wastewater treatment facilities.We as construction contracts that include both material and envision a study that would also establish a standard labor costs. for comparing costs based on plant output. MMUA also 12/2015 State Position Statements