The Birmingham News reported that a Birmingham pipe manufacturer is urging Congress to make it easier for local governments and utilities to finance new water and sewer projects as a way to save energy and create jobs.

A housing slump and poor economy means business is down for makers of ductile iron pipe such as American Cast Iron Pipe Company, so CEO Mr Van Richey was in Washington last week drumming up support for legislation to encourage cities and counties to upgrade their water systems. He said leaky pipes, sometimes more than a century old, lose up to one quarter of the nation's treated water.

Mr Richey told members of the Senate Environment and Public Works Committee that "We are facing a crisis of loss in the water works sector of our economy. It's a crisis of lost water, lost jobs and the lost opportunity to address our country's needs."

One of the proposals is to remove limits on the tax exempt financing that local utility can use to pay for their water projects; a second is for Congress to replenish funds that states use to provide low cost loans for the work.

Mr Richey made a direct plea on behalf of the ductile iron pipe industry. He added that "Almost 50% of our business has evaporated with the crash in the real estate markets and the lack of new housing starts. Similarly, despite the pressing need for water works infrastructure repairs, our remaining business with water utilities has also suffered because of their difficulty in raising capital for such projects."

Pending legislation in the House and Senate, supported by Republicans and Democrats, would remove federal limits on the use of private activity bonds for water infrastructure projects. The limits are based on state population. The tax exempt bonds allow water utilities to finance a project with money from private investors.

Mr Richey also asked Congress to include a provision that encouraged utilities to buy their pipes from American manufacturers as a way to combat foreign manufacturers who he argued are unfairly subsidized by their governments. He said that "I can stand toe to toe with another company, but not another country."

(Sourced from www.al.com)