Witness tells House committee state-run Clean Water SRF is more efficient than EPA grants; warns mandates raise costs for small communities

At a House Transportation and Infrastructure Committee hearing, a committee member asked Mr. Walker, a witness, whether state administration of the Clean Water State Revolving Fund (CWSRF) produces better results than federal management.

Mr. Walker responded: “Because the states know what they need.” He told the committee that states “talk to those people” on the ground, understand local needs and can “make a package that works for them instead of a mandate.” He said states have run the SRF for about 30 years and that state programs are more efficient than small, one-time EPA grants.

Mr. Walker told the committee, “EPA is not a bank. So the states are the banks,” and cited administrative costs as an efficiency measure. “4% overhead is all they're charging on all these grants,” he said, adding that small communities lack staff to do required reporting and so must rely on engineers who charge for that work. Those engineering and reporting costs, he said, “adds to the cost of the whole fund… but it doesn't add to the pipe in the ground.”

A committee member asked, “So would you agree with me that by the federal government giving this authority to the states to make the decisions, we're we're actually getting the best bang for a buck?” Mr. Walker answered, “Absolutely. The I mean, it's pretty efficient,” and pointed to how states have leveraged grant funds compared with small EPA grants that he characterized as “a onetime deal. It doesn't revolve.”

The exchange focused on two linked points: (1) Mr. Walker argued state-managed CWSRF programs can prioritize local needs and operate with low overhead; and (2) he said congressional mandates tied to federal programs can increase project costs by requiring additional reporting and consultant work, which he said raises costs ultimately borne by utility customers in small communities.

The transcript contains no formal motions, votes or committee directives on the topics discussed.