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Winter 2013/2014 Legislative Update

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To: Members & Affiliates, Legislative and Regulatory Policy Committee
From: National Office
Date: February 2, 2014

This edition of NACWA’s Legislative Update, current through January 31, 2014, provides information on the activities of the 113th 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

 

SRF Funding Exceeds President’s Request in FY 2014 Spending Bill

Congress passed, and the President signed, a $1.012 trillion bipartisan spending package on January 17, that will ease the harshest effects of last year's automatic budget cuts and guarantee the government stays open through October 1, 2014. The package includes all 12 individual annual spending bills that cover all of the discretionary spending of the federal government for Fiscal Year (FY) 2014, including the U.S. Environmental Protection Agency (EPA).

Considering the current fiscal climate, EPA fared well and is funded at $8.2 billion, $143 million less than the FY 2013 funding levels. The same goes for the Clean Water and Drinking Water State Revolving Funds (SRF), which will receive $1.449 million and $907 million, respectively. These numbers are also slightly reduced from the FY 2013 funding levels of $1.465 million and $923 million. NACWA has been an outspoken advocate for maintaining Clean Water SRF funding and was pleased to see appropriations for the SRF programs exceed the President’s 2014 budget request. This is a sign that despite widespread desire to cut government spending, the value of these programs continues to be recognized. As a follow-on to Congress’s SRF funding allocations for FY14, NACWA led a coalition of associations representing state and municipal water agencies and local elected officials in sending a letter to the Administration urging them to continue this strong commitment to the SRF programs in the Administration’s FY15 budget request, which is due to be released March 4th.

Congress also renewed provisions requiring the States to set-aside a portion of SRF funds for projects related to green infrastructure, energy efficiency and water efficiency, and continued the authority requiring States to provide additional subsidization with a portion of their SRF allocation. In addition, Congress stipulated that SRF-funded projects comply with Buy American provisions requiring that products consisting primarily of iron and steel are made in America.

Unfortunately, the funding request for pilot projects under EPA’s Integrated Planning initiative was not included in the package. NACWA is looking into pursuing this request for next fiscal year.

More information on proposed discretionary spending levels for EPA programs tracked by NACWA is available here. NACWA will continue to track developments on the budget and report back to our members as they occur. For questions on the FY 2014 budget, please contact either Patricia Sinicropi ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) or Hannah Mellman ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ).

WRDA Negotiations to Continue into February

The Water Resources Development Act (WRDA) conference committee continues its work to resolve differences between the House and Senate WRDA bills. Still being contemplated is the Senate-proposed Water Infrastructure Finance and Innovation Act (WIFIA) pilot program, which would provide $250 million worth of financing for both flood control projects and regionally significant water and wastewater projects.

NACWA sent a letter pdf button to House and Senate members of the WRDA conference committee on December 5, encouraging the conferees to support the WIFIA pilot program as an additional tool to help communities meet their safe and clean water goals. With that said, NACWA stressed that the WIFIA pilot program should be complementary to the Drinking Water and Clean Water State Revolving Fund (SRF) programs, and that an SRF reauthorization bill is also needed. NACWA will continue to provide updates on the WRDA bill as they occur.

Bipartisan Voluntary Clean Water Trust Fund Legislation Introduced

Representative Earl Blumenauer (D-OR), along with Representatives Richard Hanna (R-PA), Tim Bishop (D-NY), John Duncan (R-TN), Donna Edwards (D-MD), Ed Whitfield (R-KY), Jim Moran (D-VA), and Thomas Petri (R-WI) introduced bipartisan legislation on November 21, to establish a voluntary federal trust fund for investments in clean water infrastructure.

Under the Water Protection and Reinvestment Trust Fund Act, the makers of water-based beverages and flushable products could opt to put a clean water logo on their products in exchange for a 3-cent fee on each bottle or product. The revenue from this fee would fund a Water Infrastructure Investment Trust Fund, of which 85 percent would be allocated to the Clean Water State Revolving Fund. The remaining 15 percent would fund a Water Infrastructure Finance & Innovation Authority (WIFIA) that would provide low-cost capital to clean water infrastructure projects.

NACWA has long supported a national clean water trust fund as a way to provide communities with federal support to meet Clean Water Act goals. The Association issued a press release applauding Rep. Blumenauer for his leadership. NACWA will provide updates on this legislation as developments occur.

 

Affordability

 

Reps. Latta and Walz Introduce Affordability Legislation

Representatives Bob Latta (R-OH) and Tim Walz (D-MN) introduced H.R. 3862, The Clean Water Affordability Act on January 14. The legislation helps financially challenged communities advance clean water projects while minimizing the financial impacts on ratepayers and municipal budgets. Specifically, the bill would codify the EPA’s integrated planning framework and extend permit terms up to 25 years for communities with approved integrated plans; require the Agency to broaden its financial capability determinations; extend the repayment period to up to 30 years for Clean Water State Revolving Fund (CWSRF) investments; authorize additional subsidization such as principal forgiveness for communities that meet the affordability criteria; and, ensure that small communities receive a portion of available funding under the CWSRF.

NACWA issued a press release applauding the introduction as a key step in its ongoing Money Matters. . . Smarter Investment to Advance Clean Water™ campaign and sent a letter pdf button to Reps. Latta and Walz thanking them for their leadership on this important issue. The Association is pleased to see this bill introduced on a bipartisan basis, and will be working with the Congressmen to advance this legislation in the House.

 

Farm Bill and Nutrient Issues

 

House Passes Farm Bill with Important New Partnership Program

The U.S. House of Representatives passed H.R. 2642, The Agricultural Act of 2014 (Farm Bill), on January 29, by a vote of 251 to 166. In a press release, NACWA applauded the passage of the bill, which includes key provisions in the newly established Regional Conservation Partnership Program (RCPP) which NACWA, as part of the Healthy Waters Coalition (HWC), worked to include. These provisions ensure that nutrient management activities on the farm receive priority conservation funding.

The bill allows farmers that are part of a partnership agreement to receive five-year contracts and special payments for nutrient management-related activities. The bill also clarifies that municipal water and wastewater entities are eligible partners under the RCPP. It also cites partnerships that execute innovative water quality improvement measures as eligible for conservation funding. The HWC distributed this letter pdf button to all members of the House of Representatives prior to the vote, urging them to vote in favor of the bill. The Senate is expected to consider the legislation the first week of February. NACWA will keep members updated as new developments occur and will be working with its members to take advantage of these new opportunities.

 

Utility of the Future

 

Utility of the Future Congressional Clean Water Caucus Established

The Congressional Clean Water Caucus was officially established at the end of November by Representatives John Duncan (R-TN) and Timothy Bishop (D-NY). Rep. Duncan is a former Chair of the House Transportation & Infrastructure Subcommittee on Water Resources & Environment and Rep. Bishop is the Subcommittee’s current Ranking Member. As called for in the NACWA/Water Environment Federation/Water Environment Research Foundation publication The Water Resources Utility of the Future. . . A Blueprint for Action and in NACWA’s Water Resources Utility of the Future . . . A Call for Federal Action, the bipartisan Caucus will bring focus to Water Resources Utility of the Future (UOTF) priority issues and spotlight cutting-edge technologies and innovative techniques and approaches in the clean water sector.

NACWA appreciates the leadership of Representatives Duncan and Bishop on the formation of the Caucus, and will be working with them to circulate a “Dear Colleague” letter to encourage additional Members of Congress to join the Caucus and is working on a kick-off briefing for the Caucus on Capitol Hill during Water Week in April. NACWA expects this letter to be circulated in February and will share it to the membership to help ensure that a broad, bipartisan array of Congressmen and women join the Caucus.

 

Green Infrastructure

 

Legislation Reintroduced to Promote Use of Innovative Stormwater Infrastructure

Senator Tom Udall (D-NM) and Representative Donna Edwards (D-MD) re-introduced legislation on November 14 that provides critical support to innovative stormwater strategies and improves the effective management of polluted runoff and sewage overflows. S. 1677/H.R. 3449, The Innovative Stormwater Infrastructure Act of 2013 (formerly known as The Green Infrastructure for Clean Water Act) would promote the use of innovative stormwater infrastructure, provide implementation grants for community-based stormwater control projects, and establish up to five Centers of Excellence throughout the country to conduct research, develop recommendations, and provide training and technical assistance for implementing management practices for stormwater control and management.

NACWA has been working with other allied organizations, including American Rivers, the American Society of Landscape Architects (ASLA), Natural Resources Defense Council (NRDC), and the Water Environment Federation (WEF) to provide technical assistance to the bill’s sponsors. The Association will continue efforts with this coalition to garner broad and bi-partisan support. Updates will be provided as they become available.


CONGRESSIONAL HEARINGS

  • The Senate Environment and Public Works Committee held a hearing on January 16 to review the progress being made in implementing the President’s Climate Action Plan. Witnesses included EPA Administrator Gina McCarthy, The White House Council on Environmental Quality Chair Nancy Sutley, and Director of the U.S. Fish and Wildlife Service Daniel Ashe.
 

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