» Update Archive

This edition of NACWA’s Legislative Update, current through the end of September 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, or visit NACWA’s website.  Please contact NACWA's Pat Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Hannah Mellman at This e-mail address is being protected from spambots. You need JavaScript enabled to view it with any questions or information on the Update topics.

ISSUE AREAS

Hot Topics

Administration Releases Jobs Package, NACWA Meets with Key Hill Staff

On September 12, President Obama released the American Jobs Act of 2011 (AJA) in line with a speech he made a few days prior (see article below) on the need to spur job growth.  Senator Harry Reid (D-Nev.) formally introduced the bill in the Senate the following day.  The package contains several job-creating proposals, including direct spending in several infrastructure sectors and the creation of the American Infrastructure Financing Authority (AIFA), which would provide $10 billion in loans for transportation, water/wastewater, and energy projects via a new infrastructure bank.  For more information on the AJA, please see Advocacy Alert 11-21, sent to members earlier this week.

NACWA conducted an economic analysis of how effective the AIFA would be in providing an infusion of investment capital into the wastewater infrastructure sector and to explore the impact of the AJA on the costs of financing wastewater infrastructure investments from a provision in the package to reduce the amount of interest a tax-payer can claim on investments in tax-exempt municipal bonds.  The analysis concluded that the likelihood that a significant amount of capital would be available for wastewater infrastructure projects from the AIFA is quite small, and at the same time, the proposal to curtail a tax-payer’s ability to claim exemptions for investments in the municipal bond market would result in higher costs for financing wastewater treatment investments locally.  This analysis was also consistent with member comments submitted to NACWA on the President’s proposal.

In light of this analysis and in keeping with member feedback, NACWA sent a letter to Congress urging them to include at least $10 billion in direct funding for wastewater infrastructure in a final jobs package, and to reject proposals that would erode the tax-exempt status of municipal bonds.  In meetings with staff on the Hill, we have echoed this message.

Congress Completes Work on Debt Ceiling and Budget Package; Cuts Expected to Environmental Programs

In August, Congress completed work on a budget deal tied to legislation to raise the debt ceiling.  The deal comes in two parts: the first part would reduce the deficit by approximately $920 billion over the next ten years beginning with fiscal year (FY) 2013 through spending reductions to discretionary programs, including defense.  The second part could lead to a further reduction in the deficit by $1.5 trillion should a bipartisan Super Committee of both the House and Senate come to an agreement and enact it before January 15 2012.  If this Committee fails to come to an agreement, an automatic trigger of additional spending cuts of $1.2 trillion would kick in. This second round of cuts under the automatic trigger includes both discretionary and non-discretionary cuts, with half of the discretionary cuts coming from defense-related programs.  Although specific program cuts are yet to be determined, it is anticipated that environmental programs will suffer, including the Clean Water and Drinking Water State Revolving Fund (CWSRF and DWSRF) programs.

Ironically, since the spending cuts encapsulated in this budget deal do not kick in until FY 2013, the cuts contained in the House Appropriations Committee’s FY 2012 package for Interior, Environmental Protection Agency and Related Agencies are not necessary to meet the overall spending reductions in the agreement, potentially resulting in fairly stable funding levels for FY 2012.  However, beginning in FY 2013, the budget package would likely lead to dramatic cuts to environmental programs, and finding alternative ways for financing water infrastructure projects will continue to be necessary.

One additional outcome of this budget deal may be that the debate over spending could shift — and to some extent already has shifted — to a debate over policies that will spur economic growth and job creation.  Though Democrats and Republicans maintain differing views of how to spur the economy, innovative financing and regulatory reform will no doubt be at the center of the debate.  This will provide an opportunity for NACWA to help focus attention on smart policy reforms that can help communities meet their responsibilities under the Clean Water Act in a way that won’t bankrupt them in the process.  NACWA will seize on these opportunities and focus attention on issues related to creative funding mechanisms, including a trust fund, and its Money Matters™ regulatory prioritization campaign.

At press time, Congress is negotiating an omnibus spending bill to fund the government for FY2012 and the Super Committee continues to meet to try to reach an agreement by November 23.  While agreement is likely on an omnibus spending bill for FY2012, successful negotiations by the Super Committee remain in doubt.

President’s Speech Highlights Regulatory Review Effort, Adds Momentum to Money Matters™ Campaign

President Obama’s jobs speech on September 8 touted his related work to cut wasteful spending, stating that “I agree that there are some rules and regulations that put an unnecessary burden on business at a time when they can least afford it.  That’s why I ordered a review of all government regulations.”  This review resulted recently in EPA finalizing its Regulatory Review Plan .  EPA’s 60 page final plan — Improving Our Regulations: Final Plan for Periodic Retrospective Reviews of Existing Regulations — maps out the Agency’s next steps in implementing the objectives of its review and contains some significant changes to the original draft, reflecting NACWA’s recommendations in its comments on the draft.  The Plan includes important statements and commitments by the Agency to work toward viable CWA integrated permitting and regulatory prioritization approaches, among other valuable efforts.  NACWA sent Advocacy Alert 11-20 to its members detailing the CWA-related regulatory review efforts that EPA addressed in its plan.  In addition to the broader integrated permitting initiative, the Plan also discusses efforts such as improving agricultural programs to benefit water quality, new approaches to estimating CWA-related cost analyses, and sanitary sewer overflows, among others.  NACWA will be working closely with EPA as it carries out these reviews and implements changes to these important programs.

Also of note, the Association met with high-level EPA and Congressional staff on the development of a viable integrated permitting/regulatory prioritization approach.  EPA committed to working with NACWA to see if an integrated permitting system under the CWA is possible.  EPA met with NACWA and key public agency member leaders in Milwaukee on October 3rd to continue this discussion — see Advocacy Alert 11-22 for additional details on this meeting.  We will continue to update you on developments with this effort as they occur.

Biosolids

NACWA’s Legislative Advocacy Efforts Advances on Sewage Sludge Incineration Rule

Though EPA has verbally informed NACWA that it intends to deny the Association’s reconsideration request regarding the agency’s authority to regulate SSIs under the more stringent requirements of Clean Air Act (CAA) Section 129, it has not formally done so because it is still evaluating our request for reconsideration on technical data issues.  A formal written response from EPA outlining its decision on the reconsideration request is expected soon.

In the meantime, NACWA is meeting with key Congressional offices to enlist their support on the incineration front.  While a legislative fix looks too difficult to get through Congress this year, Senator Ben Cardin (D-Md.), Chairman of the Senate Subcommittee on Water and Wildlife, has agreed to meet with EPA to see if the agency would reconsider its initial decision on reconsideration.  NACWA is working with a number of other offices to ask them to weigh in with EPA as well.  We are asking members that operate incinerators to write to their member of Congress to ask them to weigh in with EPA. In order to make this as easy as possible, NACWA urges you to use the following letter from NACWA’s website.  NACWA has received commitments from several members of Congress from Ohio, Missouri and New Jersey to send letters to EPA urging them to reconsider the rule and regulate air emissions according to CAA Section 112 and CWA Section 405.

Climate Adaptation

Representative Lois Capps (D-Calif.) introduced the Water Infrastructure Resiliency and Sustainability Act of 2011 (H.R. 2738) on August 1, 2011 to authorize the EPA Administrator to establish a program of awarding grants to owners or operators of water systems to increase resiliency or adaptability of the systems to any ongoing or forecasted changed to the hydrologic conditions of a region of the U.S.  The legislation currently has thirteen cosponsors.  The legislation is the successor bill to one Rep. Capps introduced last Congress to help communities adapt to the adverse impacts of climate change.  NACWA provided input into the legislation and is working with Congresswoman Capps to hold a briefing next year on the issue.  Given the political sensitivities in Congress right now with regard to the subject of climate change, the legislative proposal was revised to focus on community resiliency and sustainability issues in general.  The legislation is not expected to advance, however it serves the purpose of providing an opportunity to continue the conversation about the changing weather patterns communities must deal with and the impacts these changes have on water resources.  NACWA worked on this effort with the Association of Metropolitan Water Agencies whose members are highly concerned about meeting water supply demands as droughts and water shortages become more commonplace in many regions of the country.

Nutrient Issues/Farm Bill Reauthorization

NACWA Farm Bill Work Continues

NACWA continues to make progress on advocacy efforts targeted toward reducing nutrient run-off from agricultural lands through policy reforms to programs authorized by the Farm Bill. The Healthy Waters Coalition, a coalition of municipal water, wastewater, public works, state regulators and conservation organizations, finalized a set of policy recommendations to strengthen programs within the Farm Bill targeted toward reducing agricultural nutrient run-off.  The recommendations were approved by NACWA’s Farm Bill work group and represent a consensus on key policies that should be pursued if serious efforts are to be made to address excessive nutrients in waterways.  The recommendations are available by clicking here.  The Coalition plans to roll out these recommendations early next year as Congress undertakes legislative work on drafting the Farm Bill.

In addition to progress on specific policy recommendations, NACWA is finalizing a white paper offering an urban perspective on why it is important to reduce nutrient run-off from farms.  A NACWA review team held a call last month to review a first draft of the paper and submitted comments that are now being incorporated.  A final draft should be available for release by the end of October.

RECENTLY INTRODUCED CONGRESSIONAL LEGISLATION

• Senator Robert Menendez (D- N.J.) introduced the Sustainable States Act of 2011 (S. 1516) on September 7, 2011 to establish a program under which the Administrator of EPA shall provide grants to eligible State consortia to establish and carry out municipal sustainability certification programs, and for other purposes. The legislation currently does not have any cosponsors.
  

• Representative Hansen Clarke (D-Mich.) introduced H.R. 2890 on September 12, 2011 to expand homeland security at public water systems and treatment works by allowing the Secretary of Homeland Security to include these facilities in the Chemical Facility Anti-Terrorism Standards (CFATs) program.  The legislation currently does not have any cosponsors.
  

• Senator Sherrod Brown (D-Ohio) introduced the National Infrastructure Bank Act of 2011 (S. 1550) on September 13, 2011 to establish the National Infrastructure Bank to provide financial assistance for qualified infrastructure projects selected by the Bank, and for other purposes.  The legislation currently has one cosponsor, Senator Jack Reed (D-R.I.).
  

• Representative Janice Schakowsky (D-Ill.) introduced the Emergency Jobs to Restore the American Dream Act (H.R. 2914) on September 14, 2011to create an emergency jobs program that will fund 2,242,000 positions during fiscal years 2012 and 2013. The legislation would make water infrastructure eligible for funding among other infrastructure sectors. It currently has 44 cosponsors.

CONGRESSIONAL HEARINGS

• The House Subcommittee on Oversight and Investigations held a field hearing on August 9, 2011 at the University of Central Florida on EPA’s takeover of Florida’s nutrient water quality standard setting and its impact on communities and job creation.  For more information on this hearing, go to the Subcommittee’s website.
  

• The House Committee on Energy and Commerce held a hearing on September 13, 2011 on the EPA Regulatory Relief Act of 2011 (H.R. 2250) and the Cement Sector Regulatory Relief Act of 2011 (H.R. 2681).  For more information on this hearing, go to the Committee’s website.
  

• The House Committee on Oversight and Government Reform held a hearing on September 13, 2011 on President Obama’s proposal to stimulate the economy and create jobs.  For more information on this hearing, go to the Committee’s website.
  

• The House Committee on Energy and Commerce held a hearing on September 22, 2011 on the EPA’s regulatory planning, analysis and major actions.  For more information on this hearing, go to the Committee’s website.