Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Dear Senator,
On behalf of the cities and towns of Massachusetts, the MMA is writing to express our support for S. 2016, An Act Improving Drinking Water and Wastewater Infrastructure.
We appreciate the Legislature’s commitment to increasing funds for municipal water infrastructure needs and collaborating with local officials on innovative and cost-effective mechanisms to finance the construction of environmental projects. Aging infrastructure and costly regulations are posing extraordinary challenges for local governments and taxpayers. Cities and towns need strong and effective tools and resources to protect public health and the environment, and promote economic growth. We are particularly grateful to President Murray and Sen. Eldridge, the Senate Chair of the Water Infrastructure Finance Commission, and all Senators who have advanced S. 2016 and other measures to assist communities.
In 2009, the Legislature created the special Water Infrastructure Finance Commission and charged that panel with developing a comprehensive plan to ensure that the Commonwealth and its cities and towns can adequately maintain and upgrade their water systems. We applaud the Commission for its great work in documenting that our state’s municipalities face a $10.2 billion gap in the resources needed to adequately maintain drinking water systems and a shortfall of $11.2 billion in resources needed to maintain wastewater systems.
S. 2016 begins the process by providing an increase of $50 million in debt capacity for the Water Pollution Abatement Trust (WPAT), by raising the WPAT’s spending cap from $88 million a year to $138 million. The legislation also directs the WPAT to provide matching grants, principal forgiveness, and zero-interest loans. This will enhance the Trust’s ability to assist cities and towns as they seek to address their drinking water and wastewater infrastructure needs. Together with the $57 million for the Water Pollution Abatement Trust provided for in the Environmental Bond Bill, S. 2016 would expand resources to help repair decaying water systems.
In addition, the legislation would give communities an important tool to raise revenues locally by creating an enabling statute to allow cities and towns to establish dedicated funds commonly referred to as water banks or water banking. Currently, statutes cover full cost pricing for water and the establishment of stormwater fees, but they apply to existing customers and do not address increased demands resulting from expanded or new use. Water banks have been established by individual utilities to help offset costs associated with environmental mitigation imposed by regulatory entities when requesting new and expanded service. Such initiatives include, but are not limited to, restoring and protecting stream flow, reducing water and wastewater system demand through water conservation programs, and the elimination of excessive wastewater inflow and infiltration. A number of communities, including Weymouth and Danvers, have implemented water banks and have reported excellent results. These measures have also benefited the local economy.
In a recent case, Denver St. LLC vs. Town of Saugus (and three companion cases, SJC 10927, June 29, 2012), the Massachusetts Supreme Judicial Court found that the sewer bank established by the Town of Saugus constituted a reasonable fee and freed up capacity in the sewer system to allow for new development. Without this important local tool to finance additional mitigation, developers would have been forced to wait, delaying economic investment in the region. Even as the use of water banking charges becomes increasingly accepted, the enabling legislation in S. 2016 is necessary to free cities and towns from the expensive and burdensome litigation and delaying tactics that will come from those who wish to deny communities this important tool or block economic activity. Please oppose Amendment #13, which would eliminate this essential provision and block communities from accessing this vital tool.
S. 2016 would also make it much easier for cities and towns to join the Massachusetts Water Resources Authority by providing matching grants to communities to cover half of the entrance fee. The current entrance fee is $5 million for 1 million gallons per day of water.
Our cities and towns are also facing mammoth investments to address stormwater infrastructure needs, conservatively estimated by the Water Infrastructure Finance Commission at approximately $18 billion over the next 20 years, which is why we appreciate the provisions in the bill to provide incentives for communities to invest in green projects and infrastructure such as dam removal, land preservation and stormwater recharge.
As you consider S. 2016, we urge your support for amendments that would add additional resources or augment municipal authority to address this critical issue, including Amendment #33 offered by Sen. Rodrigues that would authorize the establishment of a local water infrastructure surcharge by local-option voter approval, and Amendment #16 offered by Sen. Joyce to establish a grant program to match local funds raised for water infrastructure investment. In addition, we ask you to support Amendment #2 offered by Sen. Michael Moore, which would allow communities outside the MWRA to access state grants and financing tools to address infiltration and inflow improvements and repairs to water infrastructure, and Amendment #9 offered by Sen. Chandler to allow important involvement and input from municipal officials and other stakeholders into the development of guidelines for best management practices.
We also would like to underscore our support for the earlier recommendations by the Joint Committee on Environment, Natural Resources and Agriculture to supply $450 million in state resources to the Clean Water Revolving Fund and the Drinking Water Revolving Fund, and create a new revolving fund called the Water Infrastructure for Small Communities Grant Fund. While these measures are not in S. 2016, we believe they are key aspects of an overall solution for the challenges facing cities and towns.
Drinking water, wastewater and stormwater utilities are extraordinarily capital-intensive. Cities and towns across the state have made enormous investments in their water, wastewater and drainage infrastructure, and local officials have done so because these systems are essential to our environment, our economy and our daily lives. S. 2016 is an important measure, and we ask for your support.
Thank you very much.
Sincerely, Geoffrey C. Beckwith
Executive Director, MMA