Dr. Janice Beecher Challenges Assumptions about Water Infrastructure

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TO NATIONAL AND ENVIRONMENTAL EDITORS:

Dr. Janice Beecher Challenges Assumptions about Water Infrastructure

Funding Needs and Appropriate Solutions at Congressional Hearing

Calls Funding Gap 'Essentially a Construct'

DISTRICT OF COLUMBIA, WASHINGTON, Mar. 27 -/E-Wire/-- Dr. Janice Beecher of Beecher Policy Research questioned the much touted water infrastructure funding gap before Congress today calling it "essentially a construct." Dr. Beecher went on to say that according to her independent assessment, the magnitude of the total need is "uncertain, and may be inflated" and the projected funding gap "is not inevitable."

Beecher said, "The $1 trillion 20-year needs estimate for water and wastewater systems has become a focal point for discussion," and called that estimate "imprecise," adding "comprehensive, valid, and reliable technical and financial data on the nation's water and wastewater systems are not readily available."

Dr. Beecher testified that several myths, as yet unsupported by facts, are emerging from the current debate that suggest:

* A national crisis is looming, * The cost of water services cannot be supported through rates, * A water infrastructure funding gap is inevitable, * And, public (that is, federal) funding solutions are essential.

Dr. Beecher presented several "reality checks" to test assumptions about infrastructure funding needs and solutions. She also identified a range of strategies for closing the gap through cost reduction and revenue enhancement measures-particularly cost-based rates for water service. Many investor-owned and publicly owned water and wastewater systems are sustainable without subsidization, which should be reserved for genuine affordability needs.

Peter Cook, Executive Director of the National Association of Water Companies hailed Beecher's testimony calling it a "much needed and dispassionate analysis of the true challenges facing the industry". Cook added, "Beecher's testimony is particularly important because it is from an independent and much respected analyst whose underlying work was not performed to advance the agenda of any organization or coalition."

Dr. Beecher's comments were made before the Senate Subcommittee on Fisheries, Wildlife and Water at a hearing on water infrastructure needs. She will be giving similar testimony on Wednesday, March 28th, before the House Subcommittee on Environment and Hazardous Materials, and the House Subcommittee on Water Resources and the Environment.

The H2O Coalition is made up of the National Association of Water Companies, the Water and Wastewater Equipment Manufacturers Association, and the National Council for Public-Private Partnerships

Louis Jenny, Director of Federal Relations of the National

Association of Water Companies, [REDACTED-PHONE]; or Dawn Kristof, President of

Water and Wastewater Equipment Manufacturers Association, [REDACTED-PHONE]; or

Rick Norment, Executive Director of the National Council for Public-Private

Partnerships, [REDACTED-PHONE]

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