» Update Archive

This edition of NACWA’s Legislative Update, current through May 6, 2013, provides information on the activities of the 113^th 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 This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it 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 This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it 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

Congressional Update

Rep. Latta to Reintroduce and Expand Clean Water Affordability Act

NACWA met with Representative Bob Latta’s (R-OH) office to discuss reintroduction of his bill, The Clean Water Affordability Act. The legislation, as introduced last Congress, would require the U.S. Environmental Protection Agency (EPA) to revise its guidance on determining a community’s financial capability to meet Clean Water Act obligations. NACWA has been working closely with Representative Latta to expand the bill to include additional provisions to codify EPA’s Integrated Planning Framework, extend EPA permit terms up to 25 years, and encourage the use of green infrastructure for managing wet weather. These additional provisions are found in Senator Sherrod Brown’s (D-OH) bill by the same name. Representative Latta has expressed interest in making the two bills more complementary, and is planning to introduce his bill later this spring. NACWA is working with Representative Latta and Senator Brown to identify bi-partisan support for the legislation. NACWA will provide relevant updates on both Representative Latta and Senator Brown’s legislation as they become available.

 Water Resources Development Act to Come to Senate Floor for Vote

The Water Resources Development Act (WRDA), S. 601, a bill to authorize flood control projects undertaken by the U.S. Army Corps of Engineers (USACE), is likely to be undertaken by the full Senate for a vote when it returns from recess. The legislation includes a pilot version of the Water Infrastructure Finance & Innovation Act (WIFIA) to provide direct loans to support flood control as well as drinking and wastewater infrastructure projects, with project financing overseen by the USACE and/or the EPA. WIFIA is designed to fund large water resource projects that are regionally significant and cost at least $20 million. Total authorization for the pilot program is $50 million.

WIFIA hit a snag however when an April 9 report from the Congressional Budget Office (CBO) estimated that the WIFIA approach set out in the legislation would cost the federal government $260 million over the next five years and reduce federal revenues by $135 million over the next ten years. This is due to CBO’s estimate that tax-exempt municipal bonds would be in higher demand because of the leveraging requirements in the WIFIA program, thereby reducing federal revenues. In order to keep the WIFIA proposal affordable under the budget, the Senate package would prohibit recipients of WIFIA loans from using any tax-exempt financing for the 51% non-federal match requirement. NACWA recognizes that this would make the program unworkable for many utilities, and Senate staff has pledged to find an alternative solution as the legislation makes its way through Congress.

NACWA will provide its members with updates on the WRDA Senate floor proceedings and WIFIA program as they become available.

Federal Budget and Funding

 Obama Administration Releases FY 2014 Budget Request, Includes Cuts to SRF Programs and Modification to Tax-Exempt Status of Municipal Bonds

On April 10, the Obama Administration released its Fiscal Year (FY) 2014 budget request, which includes steep reductions to the Clean Water and Drinking Water State Revolving Fund (SRF) programs by $350 million and $100 million respectively. In addition, the Administration’s budget proposes a 28% benefit cap on tax-exempt municipal bond interest for high income taxpayers. NACWA is deeply disappointed with these two proposals, and has been expressing the Association’s concerns with members in both the House of Representatives and the Senate. The President’s budget request in its entirety can be found here, and for NACWA’s initial budget analysis, please see Advocacy Alert 13-06. The Association will track any developments as Congress and the Administration move forward with the budget and report back to members as they occur.

 NACWA Joins Coalition with U.S. Conference of Mayors to Maintain Tax-Exempt Status of Municipal Bonds; Joins with AMWA on Key Targeted Action Fund Project

NACWA is also part of a 70-plus member coalition being organized by the U.S. Conference of Mayors to ensure that the President’s municipal bond proposal is not part of Congress’s budget proposals.  NACWA will also be working with the Association of Metropolitan Water Agencies (AMWA) on a report outlining the impacts to the water sector of such a proposal to roll back the tax exemption on municipal bonds.  This analysis will be used to support the efforts of the USCM’s municipal bonds coalition. NACWA will keep members apprised of any developments on these and related efforts.

 NACWA, Water Groups, Call on Congress to Reject CWSRF and DWSRF Reductions

NACWA led a coalition of interested stakeholder organizations in submitting a joint statement on behalf of maintaining robust funding for the State Revolving Fund (SRF) programs. NACWA, along with the American Public Works Association (APWA), the American Water Works Association (AWWA), the Association of Clean Water Administrators (ACWA), the Association of Metropolitan Water Agencies (AMWA), the Association of State Drinking Water Administrators (ASDWA), the Council on Infrastructure Financing Authorities (CIFA), and the Water Environment Federation (WEF) submitted joint testimony  on April 25 to the House Appropriations Subcommittee on Interior, Environment, & Related Agencies requesting that funding for the SRF programs be maintained at the Fiscal Year 2012 levels of $1.466 billion and $918 million respectively. The coalition of organizations also requested funding for the Clean Water Act §106 Operating Grant program at $330 million, and the Public Water Work System Supervision Program be funded at $130 million. The statement was also submitted to the Senate and circulated to all Members of Congress.

 House and Senate Members Urge Funding for State Revolving Funds

Fifty-five bi-partisan members of the House of Representatives signed a letter  urging the House appropriators to ensure that the Drinking Water and Clean Water State Revolving Fund (SRF) programs receive critical funding as they determine discretionary spending levels for FY 2014. The letter is sponsored by Representatives Peter King (R-NY) and Jim McGovern (D-MA), and states that the SRF programs provide communities with critical resources to help maintain water and wastewater infrastructure that is rapidly aging and in need of investment. The letter also recognizes the enormous return on investment the SRFs provide in terms of job creation and economic activity – and that for every $1 billion spent of clean water infrastructure, 28,500 new jobs are added, $3.4 billion is added to the Gross Domestic Product, and personal income is boosted by $1.1 billion.

28 Senators signed a similar bi-partisan letter  urging the Senate Appropriators to ensure that funding for the Drinking Water and Clean Water SRF programs is consistent with appropriations in recent years, at $1.095 billion and $816 million respectively. The Senate letter was sponsored by Senators Ben Cardin (D-MD) and Mike Crapo (R-ID). House and Senate Appropriators are expected to begin writing their FY 2014 EPA spending packages in the

Integrated Planning

 Key House, Senate Members Support Funding for an Integrated Planning Pilot Program

On April 26, Senator Sherrod Brown (D-OH) submitted a letter to Senators Jack Reed (D-RI) and Lisa Murkowski (R-AK), Chairman and Ranking Member of the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies, requesting $5 million in the FY 2014 EPA budget to establish an Integrated Planning pilot program, where up to 50 communities around the country could receive grants towards developing integrated plans. Senators Barbara Boxer (D-CA), Jeff Merkley (D-OR), Sheldon Whitehouse (D-RI), and Kirsten Gillibrand (D-NY) also signed the letter. Senator Roy Blunt (R-MO), who sits on the Senate Appropriations Committee, also submitted a personal appropriations request to the Subcommittee in support of this pilot program.

Earlier in April, a number of members in the House of Representatives also made requests for $5 million to establish an Integrated Planning pilot program. Representative Bob Gibbs (R-OH) and Tim Bishop (D-NY), Chair and Ranking Member of the House Water Resources & Environment Subcommittee, submitted this letter  of support to Representatives Mike Simpson (R-ID) and Jim Moran (D-VA), Chairman and Ranking Member of the House Appropriations Subcommittee on Interior, Environment, and Related Agencies. Representatives David Joyce (R-OH), Steve Chabot (R-OH) and Tim Ryan (D-OH) all made personal requests for the program as well.

The House and Senate must now craft their EPA appropriations bills and NACWA is hopeful an Integrated Planning pilot program will be included. We will report on any updates as they occur.

Sen. Boozman Questions EPA Administrator Nominee on Integrated Planning at Confirmation Hearing

The Senate Environment & Public Works Committee held an April 11 hearing to consider the nomination of Gina McCarthy as EPA Administrator. Prior to the hearing, NACWA met with Senator John Boozman (R-AR) and his staff to brief them on key issues the Association is working on related to EPA and affordability. At the hearing, Senator Boozman questioned McCarthy on her commitment to support the ongoing efforts of EPA’s integrated planning and permitting framework and her plans, if confirmed, to make integrated planning a more useful tool for utilities. Citing NACWA, the U.S. Conference of Mayors, and the National League of Cities, Boozman also stressed that a growing number of municipalities are seeking increased flexibility to prioritize and develop longer compliance schedules to meet Clean Water Act (CWA) requirements. In her response, McCarthy confirmed her support for the EPA integrated planning framework, stating that she understands the stress that municipalities are under and would work to make integrated planning a more useful tool. She also agreed to look at developing extended permit terms. The full confirmation hearing can be viewed as an archived webcast here. NACWA will keep members updated when full Senate consideration of McCarthy’s nomination occurs.

National Environmental Policy Forum

Policy Forum Highlights Integrated Planning, Affordability, Utility of the Future

NACWA’s 2013 National Environmental Policy Forum took place April 21 – 23 in Washington, D.C. and highlighted the latest legislative, regulatory, and legal developments happening in the city. Water sector leaders from the Administration and in Congress provided attendees with a detailed look at the status of NACWA's priority policy issues including financial capability, infrastructure funding, stormwater management, nutrient pollution, integrated planning and a vision for the Water Resources Utility of the Future.

EPA Acting Administrator Robert Perciasepe and Congressional staff from the offices of Senators Tom Udall (D-NM) and David Vitter (R-LA) and Representatives Bob Gibbs (R-OH) and Tim Bishop (D-NY) focused their remarks during the Policy Forum on affordability and integrated planning. Perciasepe provided a keynote address and discussed the relationship between infrastructure, clean water and community health as well as EPA’s ongoing affordability dialogue with the U.S. Conference of Mayors, the National League of Cities, and the National Association of Counties to address ongoing concerns with increasing Clean Water Act compliance costs being imposed on communities nationwide. Congressional staff highlighted the work they have been doing to promote integrated planning, as well as some other proposals they are working on to encourage broader use of green infrastructure and efforts to provide communities with more access to low-cost financing for clean water infrastructure improvements.

Conference Highlights Original Authors of Clean Water Act

The Policy Forum also featured a panel of former Congressional Staff members responsible for drafting the original Clean Water Act (CWA). Leon Billings, Former Staff Director for the Senate Committee on Environment & Public Works (1966-1978), Lester Edelman, Former Counsel for the House Committee on Public Works & Transportation (1968–1979), and Gordon Wood, Former Minority Counsel for the House Subcommittee on Water Resources & Environment (1971-1978) recounted their role in the development of the Clean Water Act, the congressional intent behind aspects of the bill, and the bi-partisan political climate that made the passage of such a monumental piece of legislation possible. The discussion went on to explore how the Act could be improved to ensure another 40 years of continuous water quality improvement – as well as what policy reforms should be considered to strengthen the Act’s effectiveness and support efforts by utilities to transform themselves into Water Resources Utilities of the Future.

NACWA meetings, forums, and conferences provide an unparalleled opportunity to learn about cutting- edge developments, meet key decision-makers, and connect with clean water colleagues from across the country. Plan now to attend NACWA’s 2013 Summer Conference & 43rd Annual Meeting, Managing & Financing the Resilient Clean Water Utility, July 14-17, in Cincinnati, Ohio.

NACWA Releases Water Resources Utility of the Future… A Call for Federal Action

NACWA recently released the Water Resources Utility of the Future… A Call for Federal Action, which sets forth ten priority recommendations that the federal government should take to realize a shared vision for the Water Resources Utility of the Future. It calls upon Congress, the EPA, and other key federal agencies to rethink important environmental services provided by the wastewater sector such as energy generation, water recycling and nutrient recovery and to undertake actions that will put the Utility of the Future (UOTF) within reach for all clean water agencies. In his keynote address at NACWA’s Policy Forum, Acting EPA Administrator, Bob Perciasepe, applauded the concepts discussed in the document and expressed support for NACWA’s ongoing UOTF efforts. The trifold will serve as a key tool in the Association’s advocacy efforts on Capitol Hill and with the Administration and other stakeholders.

Outreach began this month at a meeting with high-ranking EPA officials where NACWA explored potential collaborative efforts to advance shared goals under the UOTF initiative. NACWA staff will also develop draft legislation to implement some of the recommendations geared toward Congress, including a package of tax incentives to encourage private investment as well as federal research and development funding programs to provide financial support to utilities that want to undertake these practices. To assist the legislative drafting process, NACWA’s Board of Directors at its April Board meeting approved a Targeted Action Fund™ (TAF) request to hire outside counsel to help develop tax incentive-based legislative language to advance to recommendations set out in the Call for Federal Action document. The Water Resources Utility of the Future… A Call for Federal Action is available online as a flipbook and in hard copy upon request to NACWA’s Claire Moser at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . NACWA’s Policy Committee will oversee the drafting of this package as well as the regulatory efforts that are part of the UOTF effort. NACWA will also continue to work closely with the Water Environment Federation (WEF) and the Water Environment Research Foundation to advance shared UOTF objectives.

NACWA Board Approves Strategic Plan, Endorses Five TAF Projects

NACWA’s Board of Directors recently approved a newly updated Strategic Plan  and acted to endorse Targeted Action Fund (TAF) requests to provide support for the Association’s advocacy, legislative efforts, ongoing litigation, and partnerships with outside organizations. NACWA’s new Strategic Plan is the product of six months of discussions among the Association’s Board and committee leadership. The Plan centers on NACWA as the leading advocate responsible for national policies that advance clean water – and speaks directly to the Association’s role in creating a sustainable environment.

The approved TAF requests will support Association efforts to 1) analyze of the potential impacts to the Nation’s water agencies from the changes to municipal bonds proposed in President Obama’s FY 2014 budget proposal; 2) continue participation in litigation over nonpayment of municipal stormwater fees by federal government facilities to NACWA member, DeKalb County, Georgia; 3) engage as a member of the Biogenic Greenhouse Gas Emissions Coalition to encourage EPA to exempt biogenic GHGs from Clean Air Act regulation when the current deferral expires in July 2014; 4) join with a number of organizations and private sector interests in the Value of Water Coalition as it implements a sector-wide initiative to increase public awareness of the value of water; and, 5) draft legislative language to develop, clarify and expand tax credit, incentive and market-based programs to encourage clean water agencies and their private sector partners to engage in Utility of the Future (UOTF)-related activities (see related story). Each of these efforts is supported by the generous contributions of numerous NACWA members to the FY 2013 TAF.