Water trust fund bill introduced in House.

With local governments facing a crisis, Rep. Earl Blumenauer (D-Ore.) has introduced legislation that would provide new sources of revenue to meet the Environmental Protection Agency-estimated funding gap that approaches $23 billion annually between local government water infrastructure and environmental restoration needs.

Federal assistance in meeting these needs has declined by 75 percent over the past 20 years while municipal costs for operation and maintenance of their systems is escalating by more than the rate of inflation.

The Water Protection and Reinvestment Act (H.R. 3202) would assess a number of small taxes on a broad base of those who use water and contribute to water pollution.

The taxes are designed to be collected at the manufacturer level and are expected to raise at least $10 billion annually to support the Clean Water and Drinking Water State Revolving Funds (SRFs).

"Establishing a steady funding source to rebuild and renew America's outdated water infrastructure is a concrete step that puts us on the path to a healthier, more secure future," said Blumenauer.

The proposed revenue sources include: a 4 cent per container excise tax on water-based beverages; 3 percent excise tax on items disposed of in wastewater, such as toothpaste, cosmetics, toilet paper and cooking oil; .5 percent excise tax on pharmaceutical products; and .15 percent tax on corporate profits of more than $4 million.

The bill also includes new funding opportunities for local governments, such as grants for security upgrades, and climate change adaptation and to control sewer overflow and drug take-back programs.

"The problem of inadequate and crumbling wastewater facilities is urgent and nationwide," said Rep. Tom Petri (R-Wise.), one of the bill's cosponsors. "The Wastewater Protection and Reinvestment Act is greatly needed if we are to have both reliable drinking water and wastewater treatment."

Additional original cosponsors include Reps. Norman Dicks (D-Wash.), Donna Edwards (D-Md.), Steven LaTourette (R-Ohio), Grace Napolitano (D-Calif.), Janice Schakowsky (D-Ill.) and Mike Simpson (R-Idaho).

The bill has been assigned to several committees for consideration, although no further action has been scheduled until after Congress returns from its August recess.

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