[Congressional Record Volume 140, Number 11 (Tuesday, February 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
     RURAL COMMUNITY WASTEWATER TREATMENT AFFORDABILITY ACT OF 1994

                                 ______


                            HON. JIM CHAPMAN

                                of texas

                    in the house of representatives

                       Tuesday, February 8, 1994

  Mr. CHAPMAN. Mr. Speaker, today I am pleased to be introducing the 
Rural Community Wastewater Treatment Affordability Act of 1994. This 
legislation, which was drafted with the assistance of the National 
Rural Water Association and the Rural Community Assistance Program, is 
designed to ensure that rural and disadvantaged communities have 
greater access to the Clean Water Act's State Revolving Fund [SRF] 
Program.
  EPA has estimated that 75 percent of the communities in violation of 
the Clean Water Act's sewage treatment requirements are rural and that 
the estimated cost of addressing these sewage treatment needs exceeds 
$13 billion. While the purpose of the SRF Program is to assist 
localities in their efforts to modernize existing treatment works and 
construct new ones through a low-interest loan program, it has fallen 
far short of this goal in rural communities. One of the largest 
obstacles for rural systems is that they can rarely finance 100 percent 
loans, even at low interest rates, because they have limited revenue 
generating capabilities and cannot achieve economies of scale.
  It has become clear to me and many of my colleagues who represent 
rural and disadvantaged communities that the Federal Government must 
take a more active role in assisting these communities with their 
wastewater treatment infrastructure needs.
  Mr. Speaker, my bill will make SRF loans more affordable to small 
systems by allowing negative interest loan financing, extending the 
loan repayment period from 20 to 40 years and requiring that 1 to 2 
percent of each State's SRF allocation be used to make grants to 
communities for planning and predevelopment costs. In addition, the 
bill allows nonprofit corporations to be eligible for SRF funding, as 
they currently are under the Rural Development Administration's water 
and sewer program, and authorizes $15 million for rural water 
organizations technical assistance programs.
  As reauthorization of the Clean Water Act has emerged as a priority 
for Congress this year, I look forward to working closely with my 
colleagues on the Public Works Committee to ensure that rural and 
disadvantaged communities are not left behind.

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