» Update Archive

This edition of NACWA’s Legislative Update, current through June 3, 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  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

Congressional Update

Senate Passes Water Resources Development Act

On May 15th the Senate passed S. 601, The Water Resources Development Act (WRDA), which authorizes eighteen flood control projects for the Army Corps of Engineers. The bill also includes a $50 million Water Infrastructure Finance and Innovation Act (WIFIA) pilot program to provide financing for both flood control projects and regionally significant water and wastewater projects. An amendment offered by Senator Jim Inhofe (R-OK) altered project eligibility from projects that cost more than $20 million to projects that cost more than $5 million to ensure smaller and rural communities have access to WIFIA financing as well. Another amendment offered by Senators Jeff Merkley (D-OR) and Sherrod Brown (D-OH) required all projects funded through the WIFIA to use American-made iron, steel, and manufactured goods so long as they are available and competitively priced.

In addition, as a result of an April report from the Congressional Budget Office (CBO), the Senate package prohibits recipients of WIFIA loans from using any tax-exempt financing for the program’s 51% non-federal match requirement. The CBO report estimated WIFIA would reduce federal revenues by $135 million over the next ten years because tax-exempt municipal bonds would be in higher demand due to the leveraging requirements in the WIFIA program. As a result, the Senate package prohibits 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.
The WRDA debate now moves to the U.S. House of Representatives where House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) has pledged to take up WRDA legislation this year. NACWA will keep its members informed of any updates.

 Farm Bill Passes Senate Committee with Key Water-Related Provisions; Healthy Waters Coalition Urges Senators to Support

The Senate Agriculture Committee approved a new, five-year Farm Bill, The Agriculture Reform, Food, and Jobs Act of 2013 (S. 954), which retained language the Healthy Waters Coalition (HWC) advocated for in the Regional Conservation Partnership Program (RCPP). The language ensures that nutrient management activities receive priority conservation funding. It also allows farmers that are part of a partnership agreement to receive five-year contracts and special payments for nutrient management-related activities.

During the committee mark-up, Senators John Boozman (R-AR) and Sherrod Brown (D-OH) offered an additional amendment to S. 954 which proposed two additional modifications to the RCPP. The first amendment put in language to explicitly state that municipal water and wastewater entities are eligible partners under the RCPP. The second amendment prioritizes partnerships that execute performance-based water quality and quantity improvement measures. The amendment was adopted by the full committee and included in the final Senate bill. The full Senate began debate on the measure before the Memorial Day recess and is scheduled to conclude debate when it returns, the first week of June.

 Bipartisan Water Infrastructure Funding Bill Introduced in House

On May 8, Representative Tim Bishop (D-NY), Ranking Member of the House Subcommittee on Water Resources & the Environment, along with Representatives Don Young (R-AK), Nick Rahall (D-WV), Peter King (R-NY), and 23 other Democratic members of the House Subcommittee on Water Resources and the Environment introduced the Water Quality Protection and Job Creation Act of 2013. This bill would authorize approximately $13.8 billion over five years in wastewater infrastructure through the Clean Water State Revolving Fund. The bill also proposes two complimentary initiatives for the long-term financing of wastewater infrastructure through the establishment of direct loan and loan guarantee programs and a Clean Water Infrastructure Trust Fund. NACWA sent Rep. Bishop this letter  of support and looks forward to working with him to develop broad-based support for this legislation.

Federal Budget and Funding

 NACWA Continues Efforts to Maintain Tax-Exempt Status of Municipal Bonds; Voice Your Utility’s Support for House Resolution 112!

The U.S. Conference of Mayors (USCM) convened a second meeting this month with NACWA and dozens of other national associations across infrastructure sectors to ensure that Congress does not scale back, or eliminate, the tax-exempt status of municipal bonds. The Obama Administration’s Fiscal Year 2014 budget proposes a 28% benefit cap on the interest from tax-exempt municipal bonds, an action that would have enormous financial consequences for infrastructure projects, including those in the water and wastewater sector. NACWA will continue to work closely with USCM and the nearly 100 other coalition organizations to ensure that Congress maintains the tax-exempt status of municipal bonds.

NACWA is extremely concerned about the negative impacts this proposal would have on the clean water sector, and requests that all NACWA public utility members send this letter to their Members of the House of Representatives, urging them to co-sponsor this Resolution (H.Res. 112) that celebrates the 100th anniversary of keeping municipal bonds free from federal taxation. For information on how to contact your Congressional Representatives, please see NACWA’s Congressional Toolbox or contact Hannah Mellman at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 House Subcommittees Hold EPA Budget Hearings; Tout Importance of SRF, Clean Water Funding, Integrated Planning Pilots

On May 8, EPA Acting Administrator Bob Perciasepe testified before the House Appropriations Subcommittee on Interior, Environment and Related Agencies on EPA’s Fiscal Year (FY) 2014 budget proposal. The hearing referenced several Clean Water Act (CWA) issues NACWA has been heavily involved in, including funding for the Clean Water and Drink Water State Revolving Funds (SRFs) and Integrated Planning. In their opening statements, both Subcommittee Chairman Mike Simpson (R-ID) and Ranking Member Jim Moran (D-VA) expressed disappointment at the Obama Administration’s proposed cuts to the SRF programs, and Simpson reiterated his support of finding a sustainable long-term mechanism to fund the SRF programs. Additionally, in his testimony, Perciasepe touted EPA’s Integrated Planning Framework as a tool to help communities implement their CWA obligations in a more affordable manner. NACWA will continue to track developments on the Federal budget and ensure that the highest possible funding levels are included in the House and Senate packages.

Also this month, the House Subcommittee on Water Resources & the Environment held a hearing on the Administration’s FY 2014 EPA Budget Proposal. Members of the Subcommittee heard testimony from Nancy Stoner, Acting Assistant Administrator of the Office of Water and Mathy Stanislaus, Assistant Administrator for the Office of Solid Waste. During the hearing, Representative Richard Hanna (R-NY) questioned Stoner on the Agency's work to update its affordability guidelines citing NACWA, the U.S. Conference of Mayors, the National Association of Counties and the National League of Cities.

Subcommittee Chair Bob Gibbs (R-OH) again expressed his support for the establishment of an integrated planning pilot program at EPA in the FY 2014 Budget. Last month, Representative Gibbs joined the Subcommittee’s Ranking Member Tim Bishop (D-NY) in a letter requesting $5 million in the FY 2014 EPA budget to establish an integrated planning pilot program. Under such a program up to 50 communities around the country could receive grants towards developing integrated plans. NACWA will continue to track developments on the Federal budget and its impacts on the water program as they occur.

 NACWA Weighs in On Sequestration Impacts on Build America Bonds

In response to several NACWA members raising concerns over sequestration-related cuts to the federal subsidy payments on Build America Bonds, NACWA sent a letter to Congressional leaders of both House and Senate Budget and Finance Committees urging them to address the issue during budget negotiations. Several NACWA members who issued Direct Payment Build America Bonds (BABs) did so relying on the commitment by the federal government to provide a federal subsidy payment of 35% on the interest paid to BAB bond holders. When sequestration hit, these utilities saw a reduction of over 8% in the amount of subsidy paid, lowering the total subsidy payment to 26.3%. NACWA heard from members in Missouri, Virginia, Colorado, Hawaii, South Carolina and Texas who are now facing unexpected costs to replace the lost capital that could total several millions of dollars over the full term of the bond. While it is unclear whether Congress will be able to finalize a budget and rectify the impacts caused by sequestration, many stakeholders in Washington are urging them to do so and watching developments closely. NACWA will continue to track this issue and provide updates on the status of this effort as they become available.

Water Quality

Senate Holds Hearing on Water Quality Trading; NACWA Submits Statement for Record

On May 22, the Senate Subcommittee on Water & Wildlife, Chaired by Senator Ben Cardin (D-MD), held a hearing on nutrient trading and water quality. The hearing focused on the status of water quality trading, what challenges exist, and how to help move these markets forward. Senator Cardin’s interest stems from the trading program being developed in the Chesapeake Bay. Mike Shapiro, Deputy Assistant Administrator for the Office of Water testified on behalf of EPA, along with George Hawkins from DC Water, Beth McGee from the Chesapeake Bay Foundation, Marty Matlock from the University of Arkansas, and Susan Bodine from Barnes & Thornburg LLP. All of the witnesses gave strong statements to support the greater development and promotion of water quality trading programs to address nutrient pollution and other water quality problems in a more cost-effective manner. Shapiro also spoke with confidence about the legality of water quality trading under the Clean Water Act, an issue at the heart of litigation NACWA is currently engaged in. NACWA submitted a statement  for the record which emphasizes the vital importance of trading programs, especially in the context of agriculture’s contribution to the nutrient problem. The Association will continue to engage with EPA and Congress on issues related to water quality trading.

RECENTLY INTRODUCED LEGISLATION

• Representative Tim Pallone (D-NJ) introduced H.R. 1837, The Clean Water Protection Act, to amend the Clean Water Act to ensure that fill material does not include mining waste.
• Representative Delaney (D-MD) introduced H.R. 2084, The Partnership to Build America Act, to finance infrastructure investments through the creation of an infrastructure fund using repatriated corporate earnings as well as through utilizing public-private partnerships.
• Representative Bob Goodlatte (R-VA) reintroduced H.R. 2122, The Regulatory Accountability Act, to expand the cost-benefit analysis required when rules are devised and require that federal agencies choose the least costly option among reasonable alternatives.