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Drinking Water and Wastewater Infrastructure in Appalachia an Analysis of Capital Funding and Funding Gaps

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Drinking Water and Wastewater Infrastructure in Appalachia an Analysis of Capital Funding and Funding Gaps Drinking Water and Wastewater Infrastructure in Appalachia An Analysis of Capital Funding and Funding Gaps Jeff Hughes, Richard Whisnant, Lynn Weller, Shadi Eskaf, Matthew Richardson, Scott Morrissey, Ben Altz-Stamm The UNC Environmental Finance Center School of Government The University of North Carolina at Chapel Hill July 2005 ii Drinking Water and Wastewater in Appalachia [This page intentionally left blank] Drinking Water and Wastewater in Appalachia iii Contents List of Figures ............................................................................................................................vii List of Tables............................................................................................................................... ix Acknowledgments ..................................................................................................................... xi List of Abbreviations...............................................................................................................xiii About UNCEFC ......................................................................................................................... xv Executive Summary .....................................................................................................................1 1 Introduction ........................................................................................................................13 Background on Appalachia ................................................................................................... Background on the Appalachian Regional Commission .................................................. Study Goals and Research Questions .................................................................................. Levels of Analysis ................................................................................................................... Study Components................................................................................................................. Study Limitations.................................................................................................................... Limits of the Data.................................................................................................................... 2 Water and Wastewater Services in Appalachia............................................................27 Drinking Water........................................................................................................................ Wastewater .............................................................................................................................. Ambient Water Quality.......................................................................................................... Environmental Characteristics Influencing Service........................................................... Summary .................................................................................................................................. 3 Assessments of Needs for Water and Wastewater Infrastructure in Appalachia...........................................................................................................................57 Scope and Implementing Organizations ............................................................................. Purpose..................................................................................................................................... Frequency and Planning Period ........................................................................................... Methodology............................................................................................................................ Accuracy................................................................................................................................... Undocumented and Unidentified Needs ............................................................................ iv Drinking Water and Wastewater in Appalachia 4 Capital Needs for Water and Wastewater Infrastructure in Appalachia ................73 The Clean Watersheds Needs Survey.................................................................................. The Drinking Water Needs Survey ...................................................................................... Other National Studies........................................................................................................... State-Level Studies.................................................................................................................. Needs by Physiographic Region........................................................................................... Needs by County Economic Status ...................................................................................... Regulatory Needs as Water and Wastewater Funding Needs......................................... Application of Needs Estimates to the Policy Challenges Facing Appalachian Communities ................................................................................................................... 5 Sources of Funding for Water and Wastewater Infrastructure ................................93 Current Revenues and Reserve Funds................................................................................. The Private Capital Market ................................................................................................... Public Funding Programs ...................................................................................................... 6 Financial Management and Funding Strategies .......................................................111 Major Funding Challenges and Gaps .................................................................................. Regionalization and Local Partnerships.............................................................................. Full-Cost Pricing...................................................................................................................... Rate-Making Strategies for Low-Income Customers......................................................... Targeted Assistance for Low-Income Customers .............................................................. Asset Management................................................................................................................. Improvement of Water Efficiency ........................................................................................ Planning Grants and Assistance ........................................................................................... Improved Access to the Private Capital Market................................................................. Offering of Attractive Loan Terms ....................................................................................... Establishment of State Funding Sources.............................................................................. Pooled-Loan Programs........................................................................................................... Streamlining of, Coordination of, and Cooperation among Funding Programs .......... The Role of Private Service Providers.................................................................................. A National Trust Fund ........................................................................................................... Optimization of Grant Programs.......................................................................................... Summary .................................................................................................................................. Drinking Water and Wastewater in Appalachia v Appendices A. Clean Water Needs per Appalachian County, 2000 ..................................................... B. Public Funding Distributions to Each Appalachian County, 2000–2003 .................. C. Appalachian Region Water and Sewer Needs Assessment: Consultations and Discussion Forums ................................................................... D. Drinking Water and Wastewater Infrastructure Funding Survey.............................. E. Community and System Level Case Studies.................................................................. Accident, Maryland ................................................................................................... Corinth, Mississippi................................................................................................... Jasper, New York ....................................................................................................... McDowell County, West Virginia, and Letcher County, Kentucky................... Weaverville, North Carolina .................................................................................... West Virginia—American Water............................................................................. F. Environmental Characteristics Influencing Service....................................................... G. Methodology for Projection of Drinking Water Needs from the Drinking Water Needs Survey................................................................................. H. Regulatory Needs as Water and Wastewater Funding Needs ................................... I. Methodology for Compilation of the Master Funding Database ................................. J. Summaries of Selected Federal
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