Summary: In response to a congressional request, GAO discussed problems encountered at the Malden and Elk-Pinch, West Virginia, wastewater treatment projects. At the Malden project, GAO noted high user charges and serious performance problems which cause the plant to continually exceed its water pollution control permit limits. Residents have failed to hook into the service in large numbers and some are delinquent in paying bills because they claimed that the service was poor. GAO observed that the Elk-Pinch project defaulted because an agreement with consultants to finance the construction was not carried out as planned and payments were authorized in excess of budgeted amounts. Since the majority of the funding for both projects was provided under Environmental Protection Agency (EPA) grants, GAO suggested that EPA exercise its oversight responsibility. In addition, GAO suggested that Congress reconsider a prior GAO recommendation that required EPA to test various options for construction grants funding.
