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U.S. Environmental Protection Agency	2006-S-00003
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Office of Inspector General
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At a Glance
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Catalyst for Improving the Environment
Why We Did This Review
In response to a congressional
request, the Office of
Inspector General examined
the execution of
Environmental Protection
Agency (EPA) grants awarded
to the National Rural Water
Association (NRWA). To
address the request, we sought
to answer four specific
questions.
Background
The NRWA is a non-profit
organization that provides
technical assistance, training,
and legislative representation
to water providers serving
rural communities. NRWA is
a federation consisting of
48 State associations
representing 49 States. Since
October 2000, NRWA has
received over $70 million
from EPA to provide training
and technical assistance to
rural water systems.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
www.epa.aov/oia/reports/2006/
20060530-2006-S-00003.pdf
Congressional Request Regarding EPA Grants
to the National Rural Water Association
What We Found
We found the following regarding the four questions we sought to answer:
What environmental benefits result from the EPA grants to NRWA?
Under its grants, NRWA is not required to measure the environmental
outcomes of the technical assistance activities it provides. As a result, the
environmental benefits could not be determined. EPA grants awarded to
NRWA, after January 1, 2005, include outputs but do not link the outputs to
environmental outcomes and measures.
What improvements can be made in NRWA's administration of the
program?
NRWA's administration of the grants can be improved to more effectively
meet the needs of rural water systems. The number of organizations eligible
to perform work for NRWA can be expanded to include non-member
organizations. Rather than distributing funds equally to all States, NRWA
could take into consideration the individual needs of rural water systems in
each State in determining funding and the required activities and outputs.
Are there other options for awarding some rural water assistance funds?
Rather than earmarking funds for NRWA, Congress has other options for
ensuring rural water systems receive needed assistance. Congress could
require EPA to award the grants through a competitive process. Congress
could incorporate into the appropriation language requiring NRWA to award
funds to technical assistance providers based on State needs. Another option
would be to consolidate grants awarded to NRWA.
How does NRWA develop white papers and policy positions?
NRWA prepares white papers to address the challenges facing rural water
systems. NRWA and its contractor determine the topics for the white papers.
The State associations" participation is limited to the development of white
paper and policy positions through their representatives on NRWA's board of
directors. According to NRWA officials, non-Federal revenue (e.g.,
investments, member services, and other revenues) is used to finance the
white papers.

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