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This edition of NACWA’s Legislative Update, current through February 2, 2012, 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

Integrated Planning Effort Gathers Momentum in the Senate

As part of NACWA’s Money Matters…Smarter Investment to Advance Clean Water™ initiative, the Association received word that Senator Sherrod Brown (D-Ohio) may soon introduce legislation to reauthorize the wet weather grants program and likely include language that NACWA offered requiring EPA to move forward with its integrated planning effort.  However, because Senator Brown’s legislation contains a grant component to fund wet weather projects without identifying a funding offset, it is unlikely to garner Republican support.  As such, and in an effort to promote a separate and bipartisan integrated planning bill, NACWA also met with key Senate offices, including John Boozman (R-Ark.), Claire McCaskill (D-Mo.), Mark Warner (D-Va.), and Jim Webb (D-Va.) to discuss sponsorship opportunities for stand-alone legislation.  The legislation would allow communities to utilize an integrated planning approach to help address affordability concerns, prioritize water quality investments, and expand permit terms up to 25 years under certain circumstances.  Senator Boozman has agreed to sponsor the bill and NACWA is in the process of identifying a Democratic co-sponsor.  NACWA hopes that legislation can be introduced by the end of February.  At a recent meeting, NACWA also received a strong commitment from Subcommittee staff of the House Water Resources Committee that Congressman Bob Gibbs (R-Ohio), Chairman of the Subcommittee, would be interested in introducing the Association’s draft integrated planning legislation at the appropriate time.  NACWA will share all these legislative proposals with the membership once they become available.  NACWA continues to work closely with its municipal coalition and other stakeholders to ensure broad-based support for these legislative efforts.

Biosolids and Incineration

NACWA Meets with EPA Deputy Administrator, Urges Agency to Reconsider Incineration Rule

NACWA representatives, including member agency the Washington Suburban Sanitary Commission, met Dec. 20 with EPA Deputy Administrator Bob Perciasepe to urge the Agency to reconsider its rule imposing stringent new air emission standards on sewage sludge incinerators (SSIs). Arguing that the Agency developed the rule based on a flawed interpretation of the Clean Air Act (CAA), NACWA outlined its arguments as to why reconsideration is warranted.  The Deputy Administrator was joined by other key EPA staff including Gina McCarthy, Assistant Administrator for the Office of Air & Radiation, as well as representatives from the Office of Water, Office of Solid Waste & Emergency Recovery, and Office of General Counsel.  The rule, Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Sewage Sludge Incineration Units, was finalized in March.  NACWA petitioned EPA for reconsideration of the rule in May and filed a petition for judicial review in June.  EPA has not formally responded to the Association’s petition for reconsideration.

Bringing the issue to the Deputy Administrator level was critical as Perciasepe oversees all EPA offices and programs.  As a follow-up to the meeting, NACWA sent a Dec. 22 letter  to Mr. Perciasepe thanking him for his time and his consideration of the petition.  NACWA expects to hear back from Perciasepe in advance of the February deadline for acting on NACWA’s motion to reconsider, and will update members as developments occur.

Climate and Energy

Senate Renewable Energy Bill Expected to be Released Next Month

NACWA learned this month that Senator Jeff Bingaman (D-N.M.), Chairman of the Senate Energy and Natural Resources Committee, expects to release a Clean Electricity Standard bill in February.   NACWA has begun work to include language in the bill that would ensure that energy generated from biogas and solids produced in the municipal wastewater treatment process is eligible for renewable energy credits.  Senator Debbie Stabenow (D-MI), a member of the Senate Energy and Natural Resources Committee, worked with NACWA on similar language in 20009, and has again offered to help NACWA in this effort.  The Association plans to meet with majority staff on the Senate Energy and Natural Resources Committee to discuss this addition.  Estimates show that the energy contained in wastewater and biosolids has the potential to meet up to 12% of the nation’s electricity demand, so inclusion of this amendment would be very significant. NACWA will keep the membership informed of any updates as they occur.

Funding

NACWA Discusses Innovative Financing with Key House and Senate Committees

NACWA met with majority staff on the House Water Resources & Environment Subcommittee to discuss their ongoing work on draft legislation to address several innovative financing options for water and wastewater projects, including but not limited to, the Water Infrastructure Financing & Innovation Authority (WIFIA) loan guaranty program and lifting the cap on private activity bonds.  The WIFIA concept is modeled after the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan guaranty program in the transportation bill. The potential WIFIA legislation, like the TIFIA, would set up a loan guarantee program that would provide low-cost capital to water and wastewater utility investments in infrastructure.  NACWA echoed its long-standing concerns that these efforts not hinder– but instead complement– existing funding levels for the Clean Water State Revolving Fund (CWSRF).  They should be seen as potential tools in the toolbox that could add value for utilities.

The Subcommittee, however, has a number of other priorities they must first act on, including an aviation bill, transportation bill, and the Water Resources & Development Act (WRDA) bill for U.S. Army Corps of Engineers projects, before focusing on water financing legislation.  In line with this effort, the Subcommittee is planning to hold a hearing at the end of February.

Also, on the House side, Congressman Tim Bishop (D-N.Y.), Ranking member of the House Water Resources & Environment Subcommittee, introduced legislation last year which included a WIFIA program that was funded via a clean water trust fund over-and-above expanded funding levels for the state revolving loan fund (SRF) program.  NACWA supported this legislation and will be working closely with the Subcommittee to ensure that the Association is represented and that the municipal voice is heard as legislative efforts progress.

NACWA, along with other Water Infrastructure Network (WIN) members, also met recently with minority staff on the Senate Environment and Public Works (EPW) Committee to discuss their interest in potentially introducing a Senate WIFIA bill. .  The Senate EPW minority staff has agreed to draft a stand-alone WIFIA proposal and NACWA anticipates that the Senate language will look similar to the WIFIA language found in Mr. Bishop’s bill.  Again, NACWA will be seeking to ensure that any legislation seeking to create a WIFIA program is structured appropriately and does not come at the expense of annual appropriations for the SRF.

Nutrient Issues/Farm Bill Reauthorization

NACWA to Host Press Event on Capitol Hill to Unveil Farm Bill Policy Recommendations

On March 6, NACWA will be hosting a press event on Capitol Hill to formally release a set of Farm Bill policy recommendations  aimed at reducing nutrient run-off from agricultural lands.  The recommendations were developed with input from NACWA’s Farm Bill workgroup and from members of the broad-based Healthy Waters Coalition, a group of municipal water, wastewater, public works, state regulators, agriculture and conservation organizations convened by NACWA to advocate for stronger agricultural policies to reduce nutrient run-off.  The recommendations represent a consensus on key policies that should be pursued if serious efforts are to be made to address excessive phosphorus and nitrogen levels in U.S. waterways. The Senate Agriculture Committee has announced they will begin hearings on the Farm bill at the end of February, and this event should timely coincide with those hearings.  More details about the roll out event will be available soon.

In the meantime, NACWA is urging your utility to sign onto these recommendations now to demonstrate that wastewater utilities from across the country are concerned about this issue and want Congressional action to address it.  The deadline to sign on to these recommendations is November 11, 2011.  Please contact NACWA’s Thea Graybill, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it to endorse the policy recommendations.