Subcommittee meeting is 1 45. Id hilike to call the meetg to order. I would like to thank our witnesses. First of all, its early. One thing thats true about washington, d. C. Theres uncertainty around us. Because of other meetings scheduled and planned we asked for you to come early, and i do appreciate it. And it shows you in the interest of our colleagues, that theyre here this early. So thats great. No matter first of all, weve got folks from as far away as alaska and close as pennsylvania. No matter how many miles youve traveled to be with us, were grateful for the time and financial sacrifice youre making to share your expertise today. I want to mention that even though they did not send someone to present oral testimony, i appreciate the Environmental Protection agency providing us with written statement to include in our hearing record. I ask that unanimous consent, without object, ion so ordered. The agency has agreed to take written questions for our hearing. This is highly unusual but an essential step to making this hearing record as accurate as possible. And we consider the technical experience and input critical to the quality of our work. I now recognize myself for five minutes for giving an opening statement. Our panel looks broadly at the nations Drinking Water and whats necessary for the federal government to do in the way of planning and technical investment and support to meet future needs. The draft is meant to build on the testimony from our last hearing to help our subcommittee think more precisely about what items should be prioritized for legislation and how they should be addressed in the legislation. Importantly, the discussion draft is not a few finite universe. It is an invitation forr alternative approaches. I now some are curious why provision or another is not added. I hope we can talk about those things today. I suspect we might be able to find agreement on some of those issues after weve had some time to find out each others objectives and reflect on the best way to balance the needs of water, consumers, providers and program equipme program implementers. Let me take a minute to explain why they are there. The Water Utility groups that testified at the last hearing talked about the importance of partnerships for addressing growth and compliance issues. The discussion draft proposes language to allow contractual arrangements to get a water system under compliance. Many mentioned the Important Role that assmanagement can pla. The discussion draft has states consider how to encourage best practices and Asset Management and has epa update technical material and training materials on Asset Management. We seek testimony to further aid disadvantaged communities. The discussion draft increases the amount a state can dedicate to disadvantaged communities, 35 of their annual capitalization grant to extend loan payments for these communities by another ten years. We received testimony on the need to increase funding for the Drinking Water state Revolving Loan fund and the Public Water System supervision grant, but not specific recommendations about a realistic number is or whether commensurate budget air e airy leaves them blank to allow a greater and more specific conversation to occur. This will not be easy. Some of these conversations will be very difficult, but we will have to have them in an open and honest manner. But that is not new. Anyone who has been around our subcommittee for a while knows we have a reputation for tackling challenging issues. As i said earlier, we are at the beginning of this journey with a discussion draft as a baseline, and we are not close to the finish line as of yet. With that is correct i yield back my remaining time and yield to my friend from new york, the Ranking Member, mr. Tongsical. Thank you for being here on a busy morning in the house. Aging Infrastructure Systems can threaten growth and Public Health. I know we have limited time, so i will not restate all the details of our growing National Need to invest in Drinking Water systems and update the safe Drinking Water act. Suffice it to say, the need is immensely great. The subcommittee has been building a tremendous record that more than justifies the need for action. Mr. Chair, appreciate you holding this hearing, and offering the discussion draft to bring attention to our hidden infrastructure, which has been out of sight and regrettably, out of mind for far too long. This draft responds to many of the issues that have been identified in previous hearings, the need to reauthorize the Drinking Water srf and the public Drinking WaterSupervision Program as well as Asset Management plans, greater watersource protection and support for disadvantaged communities. With that said, i drtruly belie we can improve upon the draft before us today, which will entour strong, bipartisan support moving forward. There are a number of democratic bills that have already been introduced that can help inform these efforts. The aqua act includes provisions on how to further assist disadvantaged communities. It would also helpful fill a stated goal of this administration, mandating buy american requirements. Mr. Pallones sidwa, mr. Peters has a bill to provide grants to assist systems with resiliency, sourceWater Protection and security in the face of changing hydraulic conditions. Such as droughts, Sea Level Rise and other emerging pressures on systems. We do know the National Need is growing. 384 billion over the next two decades to maintain current levels of services. We need to have the vision to acknowledge that this does not account for stresses, environmental and financial that will continue to get worse if we is simply do nothing. Finally, the Drinking Water srf has been a tremendous success. Im grateful that share shim kiss but as we will hear today, the draft includes unspecified funding levels. As a candidate, President Trump called for tripling funding for both srf programs, the aqua act poe poses levels that are in line with that, with what states handled following the recovery act. I think these are good targets to start negotiations. We must recognize that local governments are struggling. Significant amounts of projects go unfunded each year and the status quo of federal support will simply not reduce the massive and growing levels of need. Excuse me. It is time for the federal government to step up and contribute its fair share. Mr. Chair, i would end by asking for a commitment to sit down with our side, learn more about some of our proposals and Work Together to make this a truly bipartisan effort that moves us forward. We who close cooperation on the brownfield rethoration draft. I think we can get to a similar place on Drinking Water. With that i yield back. The chair recognizes mr. Walden. In january we began a review. We spoke about all things that could affect water available and safety. Today we take the next steps by reviewing a discussion daft and related ideas from stakeholders to formulate policy on Drinking Water, stateRevolving Loan funding and supervision grants. Well also examine efforts to improve Asset Management by utilities and other ways to lift paperwork burdens and improve safe Drinking Water. Both sides of the aisle support making newer and larger investments in our nations infrastructure. And i agree we need to help ensure these assets help support the great quality of life americans enjoy. Houg however in doing so, we must make Wise Investments for states and consumers. Its important for us to tackle this job seriously it for a couple of reasons. As we learned at the last hearing, the countrys Drinking WaterDelivery Systems are facing the challenges of older age. We learn from the wat er utilities about growth issues. It proposes language to allow contractual agreements to get a water system under compliance. We welcome feed back on that approach. Not specific recommendations about what a realistic number is or whether budgetary kwut alcut support this. The Revolving Loan fund was last authorized in 2003. Thats long enough. Its time to reassert this committees proper role in authorizing our statutes and realign the focus of the epa and other agencies back to their core missions. In this case, ensuring safe Drinking Water for our nations consumers. We look forward to continuing the dialog on this as our Committee Process continues. I want to welcome all of you here today. Our witnesses who took time and travelled from far and wide to be with us to comment on this discussion draft. And thats what it is. Your input is important and we would appreciate specific recommendations as you are able to give on these important issues. Again, thank you all for being here. We all care deeply about Drinking Water, safe Drinking Water and helping our communities achieve that for all of our citizens in the country, and with that, mr. Chair, i yield back the balance of my time. Chair now recognizes the Ranking Member of the full committee, mr. Pallone. Thank you, mr. Chairman, thank you. The safety of our Drinking Water is an incredibly important topic which deserves more time than we have at todays hearing. At our last hearing we heard about the resolving fund and increasing the funding. My democratic colleagues have been saying this for years, so im encouraged that republicans on this subcommittee now seem to agree. Unfortunately, this rushed hearing is not sufficient to address this issue. We have great ideas, but theyre not reflected in the barebones discussion draft. We need a bipartisan effort to modernize the safety Drinking Water act, but in preparing this discussion draft, your staff didnt consult with us. We were eager to work with you, but we were told without smanation that such discussions could only happen after this hearing. So it fails to measure up to this severe problem. It does not meet the needs of Public Water Systems. It does nothing to improve the regulatory process and better protect Public Health from new and emerging pollutant classes and does nothing to improve transparency and restore Consumer Confidence in the safety of our tap water and no commitment to increase funding. So i am disappointed in the funding draft. And i urge them to look at hr 1071. The aqua act of 2017. And hr 1068. I want to thank our witnesses for coming and apologize that we dont have more Time Available but i also want to express my frustration at the lack of a witness from the epa. This subcommittee cannot produce meaningful legislation to reauthorize the state Revolving Fund without their input. So its clear we need to have another hearing. Safe Drinking Water is simply too important, and i hope we can start to Work Together on a bipartisan bill to tackle these Serious Problems. I yield back, mr. Chairman. Gentleman yields back his time. All members having concluded their Opening Statements, the chair would like to remind members that pursuant to Committee Rules all Opening Statements will be made part of the record. I want to thank all of our witnesses for being here today and taking the time to testify before the subcommit e todays witnesses will have the opportunity to give Opening Statements, our witness panels for todays hearing are in front of us. What ill do is recognize you individually for five minutes. Your full statements submitted for the record and as you can see, theres a lot of interest in our side. So if you get too far over the five minutes, i might start tapping the gavel to get you to wiped up. And before i take more time, let me start by recognizing the ceo of the California Water services group. On behalf of the National Association of Water Companies you testified here before. Youre recognized for five mens. Thank you, mr. Chairman. Good morning. Im marty kropelniki. We provide water to 2 Million People in california, and washington. Im the president of the National Association of Water Companies. Our members have provided Water Services for more than 200 years and today serve approximately 25 of the u. S. Population. Nawc applauds you. Am putting forward a discussion draft amendment. We are all working together towards the same outcome, safe, reliable, sustainable, highquality Drinking Water which is critical to every person, every community and every business in this country. Suffice to say, that substantial portions of the utility sector face significant challenges. The nations Drinking Water infrastructure recently received a d by the American Society of Civil Engineers. They project that 1 trillion will be needed to invest in flux through 2035. To keep up with population growth. More honestly, recent reports by the National ResourcesEvents Council shows that one fourth of people get water from untested and unchallenged systems. Theres a discussion draft put forward as a good first step to addre addressing the crisis. It will do much to build upon and advance the good work many have already undertaken. It is estimated that our six largest members of which cal water is one, will havent nearly 2. 7 billion this year alone to make sure their Water Systems are safe, reliable for decades to come. Government standards alone will not focix this problem. Let me highlight for you several recommendations for congress to consider. First, we must ensure that any federal funds are used efficiently and effectively. Nawc and its members support the epas ten attributes which include things such as financial viability and infrastructure stability. Applicants for dollars should demonstrate that they are managing their assets, adequate repair and replacement are fully implemented, including water rates that reflect the true and full cost of service. Second, billing systems that are in noncompliance situations must be held accountable. If a system is plagued with a history of serious noncompliance, it should be given an option to a partnership or compelled to consolidate with an able owner or operator. Finally, as Congress Considers future funding for Drinking Water programs, nawc recommends that the private water sector not only have equal access to water funding but that steps be taken to enable private water apart from the more obvious tax base measures these should include a save harbor or a shield that would allow companies to partner with undercompliant systems and give them ramp up time to come into compliance. Quite simply, they have the financial balance sheets, managerial ability. I sincerely appreciate the opportunity to come back here to testify along with my colleagues at nawc, we look forward to our work with you on this committee as we work on the nations infrastructure challenges. Thank you and ill be happy to respond to any questions mr. Chairman. The chair recognizes mr. Scott potter of the nashville metro Water Services, nashville, tennessee. Recognized for five mipnutes. The association of metropolitan water agencies appreciates the opportunity to offer our thoughts today on the Drinking Water act of 2017. Im scott potter. We provide Drinking Water services to 190,000 households and 200,000 sewer accounts in nashville and davidson county. I also serve on the board of directors, represent being ting large Largest Companies that serve 130 million americans. We appreciate that the legislation before the subcommittee today would do so for the thirfirst time in the programs history. My written testimony for the record includes more detailed feedback. Ill use my time to speak more generally about the bill and amwa. We believe that the Drinking Water is a Vital Program that should remain a cornerstone to promote costproductive water and meet requirements of the safe