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Letter from Barry B. Anderson, Acting Director Congressional Budget Office regarding Future Investment in Drinking Water and Wastewater Infrastructure - Including Report Summary [i] (January 2003)

handle is hein.congrec/cbo10475 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE U.S. Congress Washington, DC 20515 January 31, 2003 Honorable Don Young Honorable James L. Oberstar Chairman Ranking Member Committee on Transportation Committee on Transportation and Infrastructure and Infrastructure U.S. House of Representatives U.S. House of Representatives Washington, DC 20515 Washington, DC 20515 Dear Mr. Chairman and Dear Congressman: The Congressional Budget Office's (CBO's) recent analysis titled Future Investment in Drinking Water and Wastewater Infrastructure confirms that current funding from all levels of government and current revenues generated from ratepayers will not be sufficient to meet the nation's future demand for water infrastructure. That analysis highlights the major uncertainties involved in projecting the level of future spending by providing both low-end and high-end estimates of average annual costs of investment and operations and maintenance from 2000 to 2019. The Environmental Protection Agency (EPA) also recently published low-end and high-end estimates of the future costs of water infrastructure in its report titled The Clean Water and Drinking Water Infra- structure Gap Analysis. Following your request of October 2002, CBO has analyzed how its estimates compare with those published by EPA. The report attached to this letter highlights key similarities and explains important differences in the estimates offered by the two agencies. Natalie Tawil of CBO's Microeconomic and Financial Studies Division wrote the report under the supervision of Perry Beider, David Moore, and Roger Hitchner. Christine Bogusz edited the report, Leah Mazade proofread it, and Kathryn Winstead prepared it for publication. Annette Kalicki produced the electronic versions for CBO's Web site (www.cbo.gov). I hope this report will be useful to you. Please call me if you have any questions, or have your staff contact the author directly at (202) 226-2940. Sincerely, Barry B. Anderson Acting Director Attachment www.cbo.gov

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