National Rural Water Association

2915 S. 13th Street

Duncan, OK 73533

580-252-0629   FAX 580-255-4476

Contact:  Chris Wilson, nrwacw@nrwa.org

January 9, 2009
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Johnson Testifies before House Agriculture Committee 

 

       Testimony of Robert Johnson before the House Agriculture Committee Briefing on Rural Development Chaired by Congressman McIntyre on January 7, 2009: 
      Thank you Mr. Chairman for the privilege of presenting Rural America's need for water and wastewater and how that may impact this economy.  Today I will show how an investment in the USDA Rural Utility Service Water and Waste Disposal Loan and Grant Program will produce jobs and use products made in the U.S. faster and better than any government program.
      How can we speak with such confidence about the Water and Waste Program?
Mr. Chairman, I have worked with the National Rural Water Association for 31 years and live near a small town named Loco, Oklahoma.  Water comes to my home from the Loco Rural Water District, electricity from a Rural Electric Coop and communication from a Rural Telephone Coop.
      The RUS Water and Waste Program began in the 1960's and have a $9.9 billion portfolio with over 17,866 loans.  Its high performance history, demonstrates that these guarantees are achievable.
      The USDA estimates that for every $1 billion that is spent in the Water and Waste Program produces 23,000 jobs.  These are green jobs such as building or improving a wastewater or water treatment plant, building water storage, or laying distribution or collection lines that bring water to people or clean up wastewater and improve the environment and public health.  Products for these improvements are made in the U.S.
      Water and Waste Program has a history of getting money quickly into Rural America.  After the President signed the last Farm Bill that included Water and Waste Backlog funding, these funds were in Rural America in 77 days.  In the prior Farm Bill, it took only 85 days.
      The Water and Waste Program targets low and moderate income people in areas with population lower than 10,000 people that are not able to obtain commercial credit elsewhere.
      OMB rates the RUS Water and Waste Disposal Program as the highest loan program in the federal government.  It loan delinquency rate is 0.53%.  In other words, 99.47% are current on their payments - higher than any government program.
      There are two barriers that we would ask your consideration in improving.
The first is the limited grant authority poses a significant problem for many low-income areas that may require waiting years before significant grant funds are available.  Raising the amount of grant available would significant improve low-income families getting water quicker.  The second issue is that frequently the environmental reviews take more time than the engineering reports.
      The media reports the number of entities asking for stimulus funds. Rural America deserves a level playing field. Our association asks for your consideration in:
1.    Funding the entire $3.4 billion Water and Waste Disposal Program's backlog of projects.  Of this, there are approximately $1.4 billion in completed applications that can start as soon as funding is released.  There are another approximately $2.03 billion of incomplete applications that are awaiting the completion of engineering reports and environmental reviews.
2.    Adding $15 million for technical assistance to expedite the projects and insure repayment.
           In summary, funding the RUS Water and Waste Disposal Program, the governments highest rated loan program for $3.4 billion will produce over 78,000 environmentally beneficial jobs and improve the health of millions of Rural Americans.  This will use produces made in the U.S. and with a 99.47% repayment rate, the loans will be repaid.  Technical assistance will insure it.
      This is an investment we can be proud of! 
                The briefing closed with a wise man from North Carolina quoting Matthew 25:35,40  "I was thirsty and you gave me something to drink. I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me."

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