» Update Archive

This edition of NACWA’s Legislative Update, current through March 23, 2011 provides information on the activities of the 112th Congress of interest to the nation’s public clean water agencies.  For more detailed information regarding NACWA activities, click on the web links in selected news items, visit NACWA's website, or contact Pat Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or John Krohn at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Funding

President’s Budget, House Seek Cuts to Water Programs; NACWA Pushes Back and Gains Support in Senate

February and March are always active months when it comes to the federal budget and this year was notably dynamic and the White House released its proposal for fiscal year (FY) 2012 as Congress dealt with the closure of the FY 2011 budget process.  Throughout the month, NACWA led the charge in defending clean water investments and was aggressively engaged in all fronts of this discussion.

In early February, the Obama Administration released its proposed FY 2012 budget.  The budget focused on deficit reduction and included significant cuts across all federal agencies, including a 13% cut to the U.S. Environmental Protection Agency (EPA) from FY 2010 levels.  NACWA sent an Advocacy Alert (AA-04) to members to inform them of the details of the President’s proposal when it was released.  Proposed spending reductions included cuts to programs that support the Nation’s clean water and drinking water infrastructure.

The hardest hit EPA programs under the President’s budget were the Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF).  The SRFs are slated for a combined $947 million cut including a $500 million reduction for the CWSRF and a $397 million cut for the DWSRF.  Under the President’s proposal, the CWSRF would receive $1.5 billion and the DWSRF $990 million in FY 2012.  Following the release of the budget, NACWA issued a  press release, stating that the President’s budget ignores local regulatory and financial realities and called on the Administration to rethink its regulatory and enforcement approaches in line with the very real financial constraints faced at all levels of government.  A list of some of the key programs whose funding would also be cut under the President’s request is below.

A few notable programs did receive proposed increases in the President’s budget, including EPA enforcement activity, the Section 106 program for state CWA administration, and the Chesapeake Bay restoration effort.

Congress Works to Finalize FY 2011 Appropriations

At nearly the same time the President’s budget proposal was released, Congress continued to grapple with concluding the FY 2011 budget process.  The House of Representatives was the first to act by approving legislation (H.R. 1) that would reduce federal expenditures by $60 billion.  The proposal approved by the House seeks to cut funding to the CWSRF and DWSRF by $690 million and $830 million respectively.  Before passage, NACWA sent correspondence to the House urging support of the President’s FY 2011 budget request of $2.1 billion for the CWSRF and $1.287 billion for the DWSRF.  NACWA also organized a coalition representing municipal water, state regulatory, environmental, conservation and construction and engineering organizations that sent similar correspondence to the House to show the broad support that exists for water quality funding.

NACWA has maintained its focus on the Senate where there is more receptivity to federal funding for EPA and the clean water program. Following passage of the House bill, NACWA ramped up its advocacy efforts with the Senate and sent correspondence urging the Senate to reject the House proposed cuts.  NACWA also developed a chart showing a state-by-state impact of the House-proposed SRF cuts.  Working with state infrastructure financing authorities, NACWA gathered information on water infrastructure needs for each state, including those listed in FY 11 Intended Use Plans (IUPs) and those contained in the 2008 Clean Watersheds Needs Survey, to develop this chart.   The letter and charts were well-received in the Senate and were used during a hearing held by the Environment and Public Works (EPW) Committee on EPA’s FY 12 and FY 11 budgets.  In fact, the letter was entered into the official record for the hearing.

Days after the hearing, Senate Democrats unveiled their spending proposal reflecting their priorities for the remainder of FY 11.  The Senate proposal included approximately $6.1 billion in funding reductions but left the SRFs untouched at their FY 10 levels of $2.1 billion for the CWSRF and $1.28 billion for the DWSRF.  Following the release of this proposal, NACWA worked with the Water Infrastructure Network (WIN) to send correspondence to the Senate thanking them for their support of the SRF’s and urging them to maintain funding for these programs during negotiations with the House of Representatives.

The House and Senate have passed a Continuing Resolution to fund the federal government through April 8 at which point there will hopefully be a negotiated budget settlement for the remainder of this fiscal year.  NACWA is tracking the budget situation closely and will continue to provide updates as they occur.  Should you require any additional information please do not hesitate to contact John Krohn, NACWA’s Manager of Legislative Affairs at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Infrastructure Funding Legislation Introduced in Both Houses of Congress

Two pieces of legislation that seek to leverage private investments for infrastructure projects were recently introduced in the 112th Congress.  The bills represent the first infrastructure-specific funding proposals that have been introduced in the 112th Congress and NACWA was active in ensuring that water projects were included as eligible projects in each proposal.

Senators Kerry and Hutchison Introduce BUILD-Act to Establish National Infrastructure Bank

Senators John Kerry (D-Mass.) and Kay Bailey Hutchison (R-Texas) announced the introduction of the Building and Upgrading Infrastructure for Long-Term Development Act (BUILD Act).  The legislation seeks to establish the American Infrastructure Financing Authority (AIFA) that would provide loans and loan guarantees to nationally or regionally significant transportation, energy, and, of greatest relevance, water projects.  AIFA would require a federal allocation of $10 billion for initial borrowing.  Eligible projects include those that have at least $100 million in costs and are of “regional or national significance”.  Eligible projects would also be required to have a clear public benefit that meet rigorous economic, technical and environmental standards and have a dedicated revenue stream.  The Build Act would also stipulate that AIFA could not provide more than 50% of total project costs.  As written, AIFA would be an independent entity that would be governed by a CEO and Board of Directors appointed by the President and Congressional leadership.  All candidates would require approval by the Senate.

House Democrats Introduce Building American Jobs Act of 2011

Key Democrats on the House Ways and Means Committee recently introduced legislation that seeks to extend a number of programs that have been beneficial in funding infrastructure projects in recent years.  Ways and Means Committee Ranking Member Sander Levin (D-Mich.) took the lead in introducing legislation that seeks to extend authorities for a number of programs that encourage private investment in infrastructure projects.  The legislation, Building American Jobs Act of 2011 (H.R. 992), would exempt water and sewer projects from the cap on private activity bonds; extend the Build America Bonds program through 2012; and make an additional allocation of Recovery Zone bonds to ensure that each local municipality receives a minimum allocation of these bonds equal to its share of unemployment in December 2009.  The legislation currently enjoys the support of 14 co-sponsors.  NACWA will continue to follow the progress of this legislation and will keep our members informed of any developments as they occur.

Regulatory Prioritization/Affordability

NACWA’s Money Matters Campaign Advances with Key Documents and Fly-In

NACWA’s Money Matters Campaign made significant advances during the month as two new documents were released and members came to Washington, D.C. to advance the campaign on Capitol Hill.  The documents were released just prior to the Money Matters Summit and Fly-In allowing them to be used by NACWA members during the visits they conducted on Capitol Hill.  The documents include a white paper , which explores declining federal investments and increased regulatory compliance costs – linking this to the reversal of water quality gains achieved following the enactment of the CWA, and a  tri-fold that can be used as a leave-behind document that summarizes the findings of the white paper.  Both of  these documents are intended to be used in tandem with the original Money Matters two-pager to help paint a  picture of the challenges municipalities face in terms of Clean Water Act compliance and increasingly difficult affordability challenges.

NACWA's Money Matters Summit & Fly-In was held in Washington, DC in early March with nearly 50 public clean water agency leaders coming together to bring a focused message to EPA and Congress.  The Summit featured key presentations and dialogue with EPA enforcement and water office officials, as well as remarks from three Members of the U.S. House of Representatives.

The Summit began with a roundtable discussion featuring public agency member case studies and perspectives on the investments they have made, or are being required to make, and how these are often divorced from meaningful environmental benefits or the financial realities municipalities are facing.  Caswell Holloway IV, Commissioner of New York City’s Department of Environmental Protection and Adel Hagekhalil, Assistant Director, City of Los Angeles Bureau of Sanitation, kicked off the discussion with presentations on their agencies’ needs and the limited flexibility they have to prioritize investment in projects that local leaders believe will result in the largest improvements in water quality.  They were joined by many other NACWA Members who expressed similar frustrations and concerns. Joining NACWA for these discussions were key legislative staff from the House Transportation & Infrastructure Committee (T&I) and the Office of Senator Sherrod Brown (D-Ohio) as well as Loren Denton, Acting Chief of the Municipal Enforcement Branch of the Water Enforcement Division.  Following this discussion, NACWA members carried the Money Matters message to their Congressional delegations where they were met with generally bipartisan support in the House and Senate.

The Summit served as a launching point for the continuing work of the Money Matters campaign, including an announcement of NACWA's initiative to develop a legislative proposal providing a more flexible planning approach to CWA compliance.  This legislation is expected to be released in May at NACWA's 2011 National Environmental Policy Forum.  NACWA Members can visit the NACWA website to learn more about the events of the Summit and are encouraged to contact Adam Krantz, NACWA’s Managing Director of Government & Public Affairs, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it to learn how they can become more involved with the ongoing campaign.

Sewage Sludge Incineration

NACWA Legislative Advocacy on Sewage Sludge Incineration Ramps Up

To complement its extensive regulatory efforts, NACWA has ramped up its legislative advocacy in recent months to counter EPA’s proposed rules that would increase regulatory restrictions on the use of Sewage Sludge Incinerators (SSIs).  During February and March, NACWA staff worked with majority staff on the T&I Committee as well as minority staff on the EPW Committee to point out the errors in EPA’s proposed rule to regulate SSIs under Section 129 of the Clean Air Act (CAA) and the negative effects that would result to utilities utilizing sludge as a recoverable energy source. This led to NACWA staff providing these committees with official questions for hearings conducted during the month.   The efforts also spurred Senator Inhofe, Ranking Member of the EPW Committee, to send correspondence to U.S. EPA Administrator Lisa Jackson urging her to reconsider the proposed standards and instead regulate POTW’s under Section 112 of the CAA.

NACWA President Jeff Theerman, Executive Director of the St. Louis Metropolitan Sewage District, and NACWA staff also met with members of the Missouri Congressional delegation including the offices of Senator Claire McCaskill (D), Senator Roy Blunt (R), and Congressman Russ Carnahan (D).  NACWA is working with these and other Congressional offices to weigh in with EPA advising the Agency that it must follow the clear language of the CAA and apply air emission standards under CAA Section 112 for publicly owned treatment works and not the more stringent standards under Section 129.

Farm Bill Reauthorization

NACWA Urges Member Agencies to Sign onto Coalition Letter Seeking Inclusion of Water Quality Concerns in the Upcoming Farm Bill

NACWA continues to build support for addressing nutrient run-off from agricultural lands within the framework of the 2012 Farm Bill.   Specifically, NACWA worked with a coalition of water, wastewater, conservation, and state organizations to send a letter with over 140 signatories urging Congress to “substantially improve our nation’s waters through the promotion of practices that improve the conservation performance of our farms and ranches.”

Additionally, the coalition continued to meet to develop legislative recommendations for the Farm Bill.  As these recommendations are developed, the coalition will begin reaching out to Members in the House and Senate to begin the process of engaging them on these issues.  For more information on becoming more involved in NACWA’s Farm Bill efforts, please don’t hesitate to contact Pat Sinicropi, NACWA’s Director of Legislative Affairs, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Briefings/Meetings

NACWA Holds Well-Attended Clean Water Act Briefing for New Members of Congress

NACWA held a briefing on the CWA for new and returning Members of Congress and their staff on February 11, 2011.  The briefing was well-attended and focused on a broad overview and history of the CWA as well as how it is implemented, while also describing the key regulatory and financial issues currently receiving attention under the Act.  Ken Kirk, NACWA’s Executive Director, moderated the event with several NACWA members participating as panelists, including NACWA President and Executive Director of the Metropolitan St. Louis Sewer District, Jeff Theerman,  who spoke on nutrients, SSI rules, and  the Association’s Money Matters campaign and NACWA’s Legal Affairs Committee Chair and Regulatory Director for  the Northeast Ohio Sewerage District, Lisa Hollander,, who provided an overview of wet weather regulatory and stormwater management issues.  Nathan Gardner-Andrews, NACWA’s General Counsel, provided an overview of the CWA’s key provisions and Ken Rubin, Managing Director at Rubin Mallows Worldwide, provided an overview of the infrastructure investment needs and economic challenges facing POTWs.  The PowerPoint presentation used at the briefing can be found on NACWA’s website .  NACWA encourages its members to download the presentation and share it with your key elected and appointed officials or other audiences.

NACWA Meets with New Chairman of the House Water Resources and Environment Subcommittee to Discuss Priority Issues

NACWA staff recently met with Chairman Bob Gibbs (R-Ohio) of the House Water Resources and Environment Subcommittee to discuss issues of importance to NACWA members and the clean water community.  Although still developing his agenda for the 112th Congress, Gibbs expressed that his priorities would be in line with the three overarching principles of his campaign: deficit reduction, tax relief, and regulatory reform.  NACWA focused the discussion on EPA’s regulatory efforts on SSIs and the Association’s Money Matters campaign, emphasizing this campaign was in line with the need for regulatory reform in terms of prioritizing a growing list of costly mandates under the CWA.