» Update Archive

This edition of NACWA’s Legislative Update, current through August 1, 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

Federal Budget and Funding

House Committee Seeks Cut to Clean Water Loan Fund; Senate Committee Seeks to Maintain Full Funding

The House Appropriations Committee, passed its Fiscal Year (FY) 2014 Interior and EPA appropriations package, proposing to reduce EPA funding by 34% and slash the Clean Water State Revolving Fund (CWSRF) by 83% from $1.2 billion to just $250 million.  The package also proposes a similarly drastic cut of 61% to the Drinking Water State Revolving Fund (DWSRF) of $559 million, providing only $350 million for that program.  The full House of Representatives is expected to consider the spending bill in September.

Committee passage of the House EPA appropriations bill is the first step in Congress’ path to establish an FY2014 federal government budget. These proposed cuts, however, are unlikely to be successful. In breaking news, the Senate Appropriations Committee released a draft appropriations bill for Interior and EPA, proposing an increase in overall funding for EPA by 1.25 percent, to $30.2 billion. The bill would also maintain FY 2013 funding for the Clean Water and Drinking Water SRFs (not including sequestration cuts) at $1,448,887,000 and $906,896,000 respectively. A markup for the bill in the Senate Appropriations Committee has not been scheduled yet and NACWA will continue to keep members informed as budget negotiations proceed.

Many, however, foresee Congress ultimately moving in the direction of a Continuing Resolution.  In that event, funding would likely be maintained at levels closer to current (FY 2013) spending levels.  Nevertheless, the House’s proposed cuts to the SRF are very concerning as they indicate that many in Congress are willing to step away from a long-standing federal-state-local partnership that has been critical in helping communities finance their clean water and drinking water needs.  

NACWA sent an Advocacy Alert to its members asking them to write their Congressional delegation in opposition to the cuts to the SRF programs.  NACWA also sent a coalition letter  to Members of Congress with other key municipal, state and water groups in Washington, voicing the shared concern that these cuts go too far.   Members should contact Hannah Mellman at This e-mail address is being protected from spambots. You need JavaScript enabled to view it with questions.

NACWA/AMWA Release Key Report on Tax Exempt Municipal Bonds

NACWA and the Association of Metropolitan Water Agencies (AMWA) released a joint white paper on July 17 called The Impacts of Altering Tax-Exempt Municipal Bond Financing on Public Drinking Water & Wastewater Systems. The white paper lays out the $6 billion in lost revenue that the Administration’s FY 2014 budget proposal to scale back the tax exempt status of municipal bonds would cost the water sector. NACWA featured the report at its 2013 Summer Conference during a panel discussion titled Financing Resilient Clean Water Utilities & the Municipal Bond Market, that explored the growing role of public debt as utilities face the increasing cost of clean water compliance and an aging network of pipes and systems. NACWA and AMWA issued a joint press release announcing the white paper’s availability, circulated the report to key congressional staff, and posted a blog about the white paper on NACWA’s blog, The Water Voice.

Integrated Planning and Affordability

NACWA Helps Secure Funds for Integrated Planning Pilots in House Appropriations Bill

The FY 2014 House EPA appropriations bill contains $2 million to establish an integrated planning pilot program, where funding would be provided to selected pilot communities in each EPA region that want to draft integrated plans.  NACWA was instrumental in securing strong bi-partisan support for this program, including an April letter written by Representatives Bob Gibbs (R-OH) and Tim Bishop (D-NY), Chair and Ranking Member of the House Water Resources & Environment Subcommittee, urging House appropriators to include funding for this program as they constructed a budget for EPA.  While the release of the House EPA appropriations bill is only the first step in a lengthy process to finalize a FY 2014 budget, it is clear Congress understands the need for, and value of, the integrated planning approach.   

Congressional Update

NACWA Participates in Senate Roundtable on Energy-Water Nexus

NACWA staff and two of its Member Agencies—DC Water and El Paso Water Utilities—participated in a roundtable discussion on July 18 hosted by the Senate Energy & Natural Resources (ENR) Committee on the links between energy and water in an exchange of ideas toward preparing possible legislation. This meeting  was the second in a series of roundtable discussions that staff for the ENR Committee is hosting to examine the links between the water resources used by various energy producers, the energy required by various water treatment and distribution technologies, and the energy production potential from water and wastewater treatment — or more broadly termed “energy-water nexus” issues.

Senators Ron Wyden (D-OR) and Lisa Murkowski (R-AK), Chair and Ranking Member of the Senate ENR Committee, are interested in possible legislation to establish tools that can help better understand the links between energy and water needs and provide incentives for increasing synergy between these two critical resources. Other roundtable participants included several federal and state agencies, and representatives from California’s drinking water sector. The ENR Committee is expected to release a report with conclusions drawn from the discussions and ideas for next steps in developing a legislative package.

House Passes Modified Farm Bill

The House of Representatives passed a scaled back version of the Farm Bill on July 11 by a vote of 216 to 208. The controversial House Nutrition Title containing the food stamp program was removed, winning back some conservative votes and making way for the bill’s narrow passage. No Democrats supported the bill out of opposition to the removal of the food stamps program from the package. The Regional Conservation Partnership Program was included in the House Conservation Title, although language that the Healthy Waters Coalition successfully worked to incorporate in the Senate-passed farm bill on nutrient management was not included.  This language will likely be incorporated into a final conference package after negotiations with the Senate.  

It remains to be seen what the next steps will be. Senator Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee, has given early indication that the House and Senate Farm Bills may go to conference. Should this happen, the food stamp issue would reemerge, making final passage of the bill difficult to achieve. NACWA is monitoring the Farm Bill’s progress and will provide updates as they become available.

Invite your Congressional Delegation on a Utility Tour during August Recess

With August recess upon us and Members of Congress returning to their home districts for the next five weeks, this is an ideal time to invite your Congressional delegation and their staffs to visit your facilities, educate them about the clean water services you provide, and brief them on the clean water issues facing their constituents.  In-person facility tours and meetings are among the most effective means  to ensure that clean water issues become a Congressional priority.    

For Congressional visits this August, it would be helpful to discuss two important budget-related policy issues that Members will be dealing with when they return to Washington in September: proposed cuts to the Clean Water State Revolving Fund (CWSRF) and proposed limitations on the tax-exempt status of municipal bonds.  If these proposals are adopted, financing costs for infrastructure investments will undoubtedly increase for local ratepayers.  If your utility uses CWSRF money or municipal bonds to help pay for your clean water projects, it is important to specifically point out these project to your Representatives  in order to make real the impacts  of altering these critical funding and financing mechanisms.

To assist you in your outreach, NACWA’s Congressional Toolbox contains factsheets on NACWA’s legislative advocacy work, information on how to schedule meetings, and other useful links. Contact information for your Member of Congress can be found on the House and Senate websites, and appointments can be arranged by calling their schedulers at a main office number. If you have any questions, need additional assistance, or were able to schedule a tour or meeting, please contact Claire Moser at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
 

CONGRESSIONAL HEARINGS

• On July 23, the Senate Energy and Natural Resources Committee, Subcommittee on Water and Power held a hearing focused on the nation’s aging water resource infrastructure. Among the witnesses, DC Water’s Assistant General Manager, Charles Kiely, testified on the importance of maintaining and updating municipal water and sewer systems.