[Congressional Record Volume 141, Number 16 (Thursday, January 26, 1995)]
[Extensions of Remarks]
[Pages E193-E194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     RURAL COMMUNITY WASTEWATER TREATMENT AFFORDABILITY ACT OF 1994

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                            HON. JIM CHAPMAN

                                of texas

                    in the house of representatives

                       Thursday, January 26, 1995
  Mr. CHAPMAN. Mr. Speaker, today I am pleased to introduce, along with 
original cosponsors, the Rural Community Wastewater Treatment 
Affordability Act of 1995. HR 692. This legislation, which I first 
introduced in the 103rd Congress and 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.
  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% 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 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 1-2% of 
each state's SRF 
[[Page E194]] allocation be used to make grants to communities for 
planning and predevelopment costs. In addition, the bill allows non-
profit corporations to be eligible for SRF funding, as they currently 
are under USDA's Rural Utility Service's water and waste disposal 
program. Finally, the bill authorizes $15 million for rural water 
organizations technical assistance programs. This provision will allow 
organizations like the Rural Water Association and the Rural Community 
Assistance Program to provide hands-on, in-the-field, technical 
assistance to rural communities, thus, assisting these communities in 
making the most efficient use of scarce resources.
  As reauthorization of the Clean Water Act is deliberated this year, I 
look forward to working closely with my colleagues on the 
Transportation and Infrastructure Committee to ensure that rural and 
disadvantaged communities are not left behind.
  I urge my colleagues to cosponsor the Rural Community Wastewater 
Treatment Affordability Act and join me in assisting our nation's rural 
communities.


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