AUGUSTA – Maine’s economic development has been slowed because of an increasing backlog of drinking water projects and needed wastewater treatment upgrades, state officials say.

“We’re not going to see any economic investment in our towns that have wastewater infrastructure problems,” said Environmental Protection Commissioner David Littell. “Historically where we have seen investment – like in South Portland when National Semiconductor came there – one of the reasons was they had the capacity.”

Littell said the federal government has reduced aid over the years for the basic water and sewer infrastructure that is needed to support not only business development, but also housing developments.

He said there are projects that had been considered for some Maine communities but never reached the permitting stage because the towns did not have the infrastructure to support the development.

“If that capacity isn’t there, what I see when I meet with companies is that they move on,” Littell said.

There are hundreds of millions of dollars’ worth of water and sewer projects that have been identified as needed in Maine, but the state and federal resources available to help municipalities build them is a fraction of that. The Department of Environmental Protection, for example, has identified 88 sewer projects in Maine cities and towns totaling more than $293 million that should be completed over the next five years.

Gov. John Baldacci noted Tuesday that the $3.4 million bond issue on the November ballot would bring in $17 million from the federal government for such projects, but he said that is far short of the need. He said Congress should increase both grants and loan programs.

“What we have in this bond doesn’t even scratch the need,” Baldacci said. “Over the last 10 years or so we have seen less aid from the federal government and a reluctance on the part of towns to raise taxes or fees to pay for needed investments.”

Members of Maine’s congressional delegation agree that federal grants and loans should be increased, but they also say the costs of the projects should be shared by the state and local governments.

“I have been very vocal within our Democratic caucus about supporting an economic stimulus package that puts money into our infrastructure,” said Democratic U.S. Rep. Michael Michaud of the 2nd District. “We need to worry about the long-term development of our economy, not just a short-term stimulus.”

He said Congress should reverse the trend of reduced funding for infrastructure projects because economic growth depends on having not only adequate roads and other transportation systems, but also water and sewer facilities

Republican Sen. Olympia Snowe said Congress has been negligent in providing adequate funds for water and sewer projects. She said Maine is not alone in having a backlog of projects that need to be completed.

“The price tags on these projects continue[s] to escalate,” she said. “I think it is imperative that we increase the grants to the states and increase the revolving loan programs for the states.”

Snowe said that since 2003, Congress has reduced funding for water and sewer programs by more than $600 million when it should have been increasing it.

“Private sector development depends on public sector investments,” said Democratic Rep. Tom Allen of the 1st District. “Public investment in road and bridges and airports and water and sewer is necessary for the private sector to invest in new buildings and projects.”

He agreed that Congress “went in the wrong direction” when funding for the various grant and loan programs for water and sewer projects was cut. He also supports increased funding in the federal budget currently under consideration.

“This sort of infrastructure crisis is what happens when you have people in the White House that are not interested in domestic issues,” Allen said. “We are spending $12 billion a month in Iraq. That is money better spent here in this country for our needs.”

Republican Sen. Susan Collins noted that Congress has mandated improvements in both water quality standards and in the treatment of sewage but has provided fewer resources to the states to meet the higher standards.

“The president, unfortunately, has cut those revolving funds for the last few years, and it just doesn’t make sense,” she said.

But, Collins said, it is also important that the state “step up to the plate” and provide state funding for projects.

“In some past years, the money at the federal level has not been drawn down because there was no state match,” she said.

In addition to sewer projects, the state has identified more than $900 million in water projects that will be needed over the next 20 years. The water projects that can be funded with current resources add up to $15 million in 2008.

Sewer projects on the horizon

A partial list of communities with needed sewer projects in the next five years:

Bangor

Bar Harbor

Belfast

Brewer

Calais

Carmel

Dover-Foxcroft

Ellsworth

Hampden

Houlton

Jonesport

Limestone

Lincoln

Lincolnville

Machias

Madawaska

Milbridge

Millinocket

Milo

Mount Desert

Newport

Northport

Old Town

Patten

Stockton Springs

Washburn

Winterport

Source: Maine Department of Environmental Protection