the benefits of meeting with washington dc wef-awwa fly-in · during the awwa-wef fly-in in 2011....

The Benefits of Meeting

with Washington DC

WEF-AWWA Fly-in

Presenters:

Cliff Shrive

Dale Kocarek

June 21, 2012

The Benefits of Meeting with Washington DC: WEF-AWWA Fly-In

Background

• The Ohio Water Environment Association,

Government Affairs Committee participated

in the annual AWWA-WEF Fly-In to

Washington DC on March 7 and 8, 2012

[also in April 2011]

• During this intense two day period, several

hundred members of AWWA and WEF

converged on Capitol Hill to meet with

congressional representatives in both the

House and Senate


Background

• From OWEA,

President Doug Clark

and Govt Affairs Comt

Chair Dale Kocarek

participated

• From the Ohio

AWWA, Cliff Shrive

and five others

participated

April 2011


Purpose

• The Fly-In has several purposes.

• It presents an opportunity for lead

“water” organizations AWWA and WEF

to play an active and participative role in

our nation’s law and rule making process


Purpose

• This forum allows us to form

relationships with members of congress

and adhere to the principals of

participative government.

• In this way we become a sought after

resource in providing objective and

expert commentary on issues important

to us and advocates or reasonable,

common sense regulation.


What Occurs

• Thirty to sixty days ahead of the Fly-In,

appointments are made with

congressional representatives.

• Visits last about 20 minutes, which is

sufficient to get critical messages across.

• Given that appointments may require

walking, this also allows us to get to the

next appointment in time.


What Occurs

• The morning of the first day, we meet as

a group with AWWA and WEF leaders

• They provide us with a script of critical

issues to discuss and key points to

emphasize.

• The forum includes a lengthy question

and answer period.

• Folders are also provided, which we

leave behind at each visit.


Challenges

• Congressional representatives are super

busy, and are pulled in many directions.

• Messages have to be clear and concise,

and where possible attached to a proposed

bill (with a sponsor and a bill number).

• Messages not attached to proposed bills

get less attention.


Challenges

• It is very clear in Washington that we are not alone.

There are dozens of groups that converge on the Hill

on any given day.

• The message of “water” is carried by other groups

and lobbyists, and this may create some confusion.

• We must spend time educating about AWWA and

WEF resources.

• Ultimately, we want congressional

representatives to reach out to us for

unbiased and science based “education.”


Challenges

• Many times, we do not meet with

congressional representatives, but aides.

• The initial reaction is disappointment.

• AWWA and WEF have coached Fly-In

Teams that aides are valuable to

congressional representatives and they

are used to gather data and information.

• Many aides begin careers on Capital

Hill, and are immensely impressive.


Lessons Learned

• Aides are truly valuable, good listeners,

and interested in the message.

• To be successful on the Hill, one must

have a relationship built over time on

mutual trust and respect.

• It helps to have a single message per

year, such as a proposed bill.


Lessons Learned

• Leave plenty of time between

appointments as some meets start late.

• The AWWA-WEF Team brings forth a

balanced message.

• AWWA and WEF represent 70,000

members in the United States, and this is

a force that can’t be ignored.

• Dress appropriately and wear

comfortable shoes.


This Year’s Message: WIFIA

• WIFIA means Water Infrastructure

Finance Incentive Act.

• WIFIA is a loan based innovative credit

program that can be used in conjunction

with state revolving fund (SRF) programs

to meet critical infrastructure needs with

minimal or no impact on the federal

budget. In principal, WIFIA would

operate a lot like the popular TIFIA – the

popular transportation funding bill.


This Year’s Message: WIFIA

• The concept of WIFIA was introduced

during the AWWA-WEF Fly-In in 2011.

• Following the 2011 Fly-In, David

Weihrauch of the Ohio AWWA, Water

Utilities Council worked with Ohio

Congressman Bob Gibbs (18th District)

to develop an draft bill, which was

presented in a packet given to members

of congress.


What Does WIFIA Propose to Do?

• WIFIA proposes to provide direct loans for large

projects, > $25 Million. WIFIA would also help states

leverage SRF funds, to provide lower rates and greater

opportunities for funding small and hardship

communities.

• The program is currently envisioned to be run from the

US Treasury Department with rates similar to 30 year

treasury bills. From the perspective of financial

planning, I believe that the proposed WIFIA

bill provides communities several things,

which include the following:


• WIFIA will be able to serve larger communities with

projects in excess of $25 Million dollars, which

traditionally have been difficult for the SRF to provide,

thus giving larger communities another option other

than bonding.

• WIFIA will be able to provide communities with more

confidence that they can get low interest loan funding

when then need it, as opposed to being beholden to

limitations of the SRF. As we all know, when a

community has a fixed date compliance

schedule, they have no choice but to go to

construction at a certain date, regardless of

the availability of preferred funding.

New Tools

WIFIA

Low-interest loans and loan guarantees

to reduce the cost of infrastructure

investments.

Not the complete and only answer…

But an important new tool

Direct loans for larger projects…

Loans to State Revolving Funds for

smaller ones

WIFIA’s fiscal impact

o Very important in today’s political

climate…

o WIFIA has little or no long-term impact

on the US Treasury

o In fact, any impact likely to be

positive!

Federal Credit Reform Law

o For loans, Congress only appropriates

the subsidy cost

o Subsidy cost is the net present value

lent out minus the net present value

repaid

Under WIFIA

o Loans will be repaid at Treasury

interest rate…

o and there is essentially no risk of

default…

So the subsidy cost is

small and…

The program is highly

leveraged.

WIFIA

o Helps utilities…

o Both large and small…

o Helps SRFs…in all states

o Facilitates public-private partnerships

We Need Your help…

to get your

Congressman

on board and

Co-Sign the Gibbs Bill

Would WIFIA be valuable to utilities?

Yes!

2.5% lower interest over 30 years = 26% grant.

Does WIFIA take money from the SRF?

No!

WIFIA designed to complement the SRFs.

SRFs could be cut (like the President proposed), but not because of WIFIA.

Can small systems benefit from WIFIA?

Yes!

Takes larger projects out of SRF pool

States can aggregate smaller projects into one package for WIFIA financing

Should it be run through the states?

No!

o Limited funds shouldn’t be cut 50 ways.

o States would take admin costs off the top.

Less money for projects

Bigger budget “footprint” and harder to appropriate

Less leverage

Consider a section Fly-In

See your Congressman in his/her district office

Get him on board WIFIA legislation in the House


How was WIFIA Received?

• The widespread message is that the US

Government is broke.

• After receiving seed money through the US

Department of the Treasury, WIFIA could

make money for the government.

• We emphasized that WIFIA is “revenue

neutral, which in of itself is an important

message to convey.

• This message received support on “both sides

of the aisle.”


Status of WIFIA

• During the Fly-In we had a draft bill, but no bill #.

• This was very important, because we offered a “leave

behind” with the bill and other information.

• The proposed WIFIA bill was introduced to Congress in

discussions in early 2012.

• Originally, it was supposed to make it to the

Floor for discussion in Spring 2012.

• Despite widespread general support, it is

questionable whether it will make it through

both houses of Congress in 2012 and be

signed into law.


Closing Remarks

• Some of our members have questioned

if this is a form of lobbying.

• Not all of our members are comfortable

with what we are doing.

• And…yes… to some degree, this is a

form of lobbying.


Closing Remarks

• However, our core message was spent educating

and focusing the attention of our leaders on the

need for infrastructure spending.

• We need them to pay attention to the “water side,”

and not just the “transportation side” where most

past attention has been given.

• The SRF is a useful and beneficial program,

but WIFIA could help it. There is no apparent

“down” side.

The Benefits of Meeting

with Washington DC

WEF-AWWA Fly-in

Presenters:

Cliff Shrive

Dale Kocarek

June 21, 2012

the benefits of meeting with washington dc wef-awwa fly-in · during the awwa-wef fly-in in 2011....

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