Posted by Matt Dempsey Matt_Dempsey@epw.senate.gov

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Inhofe bill aims to cut small drinking water systems a break

Paul Quinlan, E&E reporter

May 17, 2011

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Oklahoma Republican Sen. James Inhofe wants U.S. EPA to give small drinking water systems, which have fewer customers over which to spread their costs, more of a helping hand in meeting federal requirements.

The Senate Environment and Public Works Committee ranking member introduced a bill yesterday along with Sens. David Vitter (R-La.), Mike Crapo (R-Idaho), John Boozman (R-Ark.), Thad Cochran (R-Miss.) and Jim Risch (R-Idaho) that would require EPA to update the criteria used to determine what waterworks fixes should be considered affordable -- criteria that the agency admitted in 2006 are sometimes unfair to small or low-income communities because of their smaller rate bases.

"Too often federal regulations come with a price tag that is unreasonable for small towns and cities with lower budgets," Inhofe said in a statement. "Forcing systems to raise rates beyond what their ratepayers can afford only causes more damage than good and can be especially harmful for low-income communities or areas facing economic challenges."

EPA currently determines whether meeting a new requirement is affordable for a small community by checking to ensure that the current cost of water in the community plus the estimated additional treatment cost to meet the new standard do not exceed a threshold of about $1,000 per year, or about $83 per month.

Inhofe contends $83 can be too much for many small communities. His bill, called the "Small System Safe Drinking Water Act of 2011," aims to bring more money and flexibility to those drinking water systems.

The legislation, a version of which Inhofe has introduced in every Congress since 2003, would ensure that EPA cannot take enforcement actions against a water system serving fewer than 10,000 people without ensuring the community has the money to pay for the required upgrades.

The bill would also amend the Safe Drinking Water Act to require that EPA check to ensure drinking water standards imposed are no more expensive to small communities, on a per-capita basis, than to large ones. It seeks to divert federally administered drinking water loans to small communities and allows those short on funds to obtain exemptions in cases where communities are "taking all practicable steps" to meet requirements.

The National Rural Water Association applauded the bill for bringing "equity and fairness to small towns," said analyst Mike Keegan, in an email.

"It corrects the status quo," Keegan said, "where thousands of small and rural communities are forced to spend limited public funds for federal regulatory compliance when there is not an identified health risk."

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