[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[Extensions of Remarks]
[Page E2357]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             PROTECTING THE RATEPAYERS AND THE ENVIRONMENT

                                 ______
                                 

                           HON. BRAD SHERMAN

                             of california

                    in the house of representatives

                      Thursday, November 13, 1997

  Mr. SHERMAN Mr. Speaker, I rise today in support of the recent 
efforts by the Congress to address an important matter of equity that 
will ensure that local communities throughout the nation will be able 
to protect the environment without jeopardizing limited, local 
government taxpayer dollars committed to water quality improvements. 
This year marks the 25th anniversary of the Clean Water Act. We can see 
the evidence of the Federal, State and local commitment to improving 
our Nation's lakes rivers and coastal waters. Public awareness of the 
importance and benefited of sound environmental stewardship exists 
today that clearly was not evident 20 years ago. Billions of dollars 
made available to communities under the Clean Water Act to build clean 
water facilities using the construction grants program has helped to 
make our waters healthier.
  Over the years, local governments that have received these grants 
have undergone rigorous audits to ensure that the facilities were 
constructed as planned and designed, in an effort to ensure that 
taxpayers' dollars are used as intended. At the same time, we have 
heard from local officials that these audits have often gone beyond the 
stated purpose of ensuring that grant funds have been used as intended. 
Instead, they the focussed on whether the funded project should have 
been constructed as approved by EPA. These re-evaluations occur even 
though there is no evidence of fraud or abuse in the project's 
expenditures and after the project has received both Federal and State 
approvals to proceed to construction. In may congressional district, 
the Las Virgenes Municipal Water District has been seeking to resolve 
an adverse audit report dating back to 1977. Despite documentation 
demonstrating that the facility was planned, designed, and constructed 
in accordance with Federal and State approvals, EPA auditors have 
sought the return of $4 million by the local taxpayers.
  Simply stated, after 20 years, the auditors now have decided that my 
constituent could have constructed the project in a better way. This 
second-guessing of previously approved, eligible project costs should 
not be permitted. It penalizes the local community for project 
approvals it did not make and, more importantly, it diverts resources 
away from water quality improvement projects that the community wants. 
Instead, the district's resources would have to be spent to contest 
audit findings that seek to disallow eligible project costs.
  Congress attempted to correct this situation most recently in 1987 
when it passed the Water Quality Act of 1987. Because the problem of 
second-guessing and reevaluation persists, the Committee on 
Appropriations included language in the Veterans, Housing and 
Independent Agencies Fiscal Year 1998 Appropriations Bill. It directs 
the EPA Administrator to uphold local government construction grants 
project eligibilities where the local government grantee has provided 
decision documents of the EPA, or the designated State agency, 
permitting use of the funds. I expect that with the clarification 
provided in this year's spending bill, EPA will adhere to Congress' 
directive and uphold eligible project costs such as those of my 
constituent, the Las Virgenes Municipal Water District.

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