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March - April 2014 Legislative Update

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To: Members & Affiliates, Legislative and Regulatory Policy Committee
From: National Office
Date: May 9, 2014

This edition of NACWA’s Legislative Update, current through May 9, 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

 

Water Week 2014

 

Inaugural Water Week Brings Hundreds to DC

NACWA, the Water Environment Federation (WEF) and the Water Environment Research Foundation (WERF), along with the Association of Metropolitan Water Agencies (AMWA), the U.S. Water Alliance, and a number of state and regional water groups, banded together to bring hundreds of clean water professionals from coast to coast to Washington, DC April 7-11 to advance shared advocacy priorities as part of the first-ever Water Week 2014.

The cornerstone of Water Week 2014 was the two and a half day National Water Policy Forum & Fly-In. NACWA, WEF, and WERF collaborated to craft an agenda that included an array of clean water advocacy, policy, and research priorities – demonstrating the power of the water sector when it speaks with one voice. The Forum & Fly-In featured Members of Congress and leading policymakers from EPA, other federal agencies, and key stakeholders -— including the U.S. Conference of Mayors — each providing key perspectives on clean water and environmental issues.

Sector leaders heard from Senator Sheldon Whitehouse (D-RI) who discussed the importance of continued federal clean water funding for Rhode Island and the nation, and from Representative Bob Latta (R-OH) who has sponsored the Clean Water Affordability Act and discussed the difficulty in Ohio of raising rates on households whose median incomes are declining. Both Senator Whitehouse and Representative Latta were recipients of NACWA’s National Environmental Achievement Award recognizing their public service. Representative Bob Gibbs (R-OH), Chair of the House Water Resources & Environment Subcommittee, provided remarks at the Water Week 2014 Congressional Reception overlooking the Capitol dome. Representative Gibbs was joined by Representatives Bishop, Donna Edwards (D-MD), Steve Chabot (R-OH), and Jim Moran (D-VA), exemplifying the broad bi-partisan support that water-related policy issues have on Capitol Hill.

Congressional Clean Water Caucus Hosts First Briefing, Features Sector Leaders

Representatives John Duncan (R-TN) and Tim Bishop (D-NY), Co-Chairs of the Congressional Clean Water Caucus, provided remarks during the Clean Water Caucus's first Capitol Hill briefing, Utilities of the Future ... Engaging Communities, Embracing New Challenges & Ensuring Economic Priorities, on April 8. The briefing featured presentations by Harlan Kelly, General Manager of the City & County of San Francisco Public Utilities Commission; James ‘Tony’ Parrott, Executive Director of the Metropolitan Sewer District of Greater Cincinnati; David St. Pierre, Executive Director of the Metropolitan Water Reclamation District of Greater Chicago; Matt Millea, Deputy County Executive of the Onondaga County Department of Water Environment Protection; and Jo Ann Macrina, Commissioner for the City of Atlanta Department of Watershed Management. Each described their agency's Utility of the Future initiatives and underscored the importance of the federal government in remaining a full partner with municipalities in helping to incentivize innovative approaches and supporting advanced technologies to meet 21st century challenges.

 

Clean Water Funding and Financing

 

Administration’s FY 2015 Budget Slashes Funding; Scales Back Muni Bond Exemption

The Obama Administration released its FY 2015 Budget request on March 4 , proposing a total of $581 million in cuts to the Clean Water and Drinking Water State Revolving Fund programs (CWSRF and DWSRF respectively). The budget requests $1.018 billion for the CWSRF and $757 million for the DWSRF, a $431 million and $150 million decrease respectively from the amount Congress appropriated in FY 2014. The Environmental Protection Agency’s (EPA) overall budget request was cut by $300 million to $7.9 billion compared to FY 2014 levels. Click here for a chart that compares proposed discretionary spending levels for EPA's water programs from FY 2012 through the current FY 2015 budget proposal.

In addition, this year’s budget request again includes a proposal to limit the tax deduction wealthy investors can claim on interest income received from investments in municipal bonds— a move that would cost municipalities billions of dollars. The Administration is also proposing to lift the volume cap for private activity bond investments in water infrastructure projects.

NACWA will continue making the case to Congress that maintaining a strong commitment to clean water investments in the FY 2015 budget is critical.

Water Sector Coalition Urges Congress to Reject Proposed Cuts to the SRFs

A coalition of water sector groups, led by NACWA, sent an April 3 letter to House and Senate Appropriators urging Members of Congress to reject the cuts proposed for the SRF programs in the Administration’s FY 2015 budget request but rather continue the FY 2014 funding levels of at least $1.449 billion and $907 million for these programs. As the letter states, “Considering the importance of water and wastewater infrastructure to the well-being of the American people, our communities, and to our economy, it is essential that the federal government remains a strong and reliable partner in meeting the nation’s clean water and safe drinking water needs.” Groups joining NACWA in this coalition include the U.S. Conference of Mayors (USCM); the National Association of Counties (NACO); the National League of Cities (NLC); the Association of Clean Water Administrators (ACWA); the Association of State Drinking Water Administrators (ASDWA); the American Public Works Association (APWA); the Water Environment Federation (WEF); the Association of Metropolitan Water Agencies (AMWA), the American Water Works Association (AWWA), the Council on Infrastructure Financing Authorities (CIFA); and the National Association of Water Companies (NAWC).

In follow-up to the letter, NACWA, along with ACWA, ASDWA, APWA, WEF, AMWA, AWWA, CIFA, and NACW submitted a joint testimony for the Congressional Record following a Public Witness Hearing held April 10th by the House Interior, Environment & Related Agencies Subcommittee on the FY15 budget. The testimony echoed the letter, highlighting the importance of federal funding for water infrastructure and urging Congress to continue funding the Clean Water and Drinking Water State Revolving Fund programs at the FY 2014 funding levels. Thirty-two (32) Senators also recently signed a Dear Colleague letter to the Senate Appropriators urging significant funding for the CWSRF and DWSRF programs consistent with the appropriations levels in recent fiscal years.
Affordability

Key House and Senate Members Support Funding for Integrated Planning Pilots

Representatives Bob Gibbs (R-OH) and Tim Bishop (D-NY), Chair and Ranking Member of the House Transportation & Infrastructure Subcommittee on Water Resources and the Environment, sent an April 3 letter to Representatives Ken Calvert (R-CA) and Jim Moran (D-VA), Chair and Ranking Member of the House Appropriations Subcommittee on Interior and Environment and Related Agencies requesting $5 million in the FY 2015 EPA budget to provide small grants to communities to help them develop integrated stormwater and wastewater plans consistent with the EPA’s Integrated Planning (IP) Framework. Additional Ohio Representatives Marcia Fudge (D) and Steve Chabot (R) also submitted personal funding in support of the IP pilot request. Last year, the House included $2 million in their Interior & Environment appropriations bill for integrated planning pilots, although the funding was not ultimately included in the final FY 2014 budget.

Senators Sherrod Brown (D-OH) and Roy Blunt (R-MO) followed suit with a Senate letter on April 9t to Senators Jack Reed (D-RI) and Lisa Murkowski (R-AK), Chair and Ranking Member of the Senate Appropriations Subcommittee on Interior, Environment and Related Agencies, requesting $15 million in the FY 2015 EPA budget to establish the same integrated planning pilot program. Senators Barbara Boxer (D-CA), Sheldon Whitehouse (D-RI), Kirsten Gillibrand (D-NY), Tom Harkin (D-IA), Brian Schatz (D-HI) and Mazie Hirono (D-HI) also signed the letter.

The House and Senate must now craft their EPA appropriations bills and NACWA is hopeful that with bi-partisan support, an integrated planning pilot program will be included. With that said, the Administration’s FY 2015 EPA budget request did not include funding for this program so there are still key hurdles to overcome in terms of the program’s inclusion in a final budget bill. NACWA will continue to provide updates on this effort as they occur.

NACWA Advances Wet Weather Legislative Proposal

During the Policy Forum, NACWA members from Kansas and Missouri met with staff for Congressman Emanuel Cleaver (D-MO) and Senator Claire McCaskill (D-MO) to encourage their co-sponsorship of NACWA’s wet weather legislative proposal, the Wet Weather Community Sustainability Act. In follow-up discussions, their staff expressed interest in continuing to discuss the possibility of co-sponsorship and NACWA provided additional background information in seeking their support. We have potential Republican sponsors but are waiting to secure Democratic members so that the proposal is introduced on a bi-partisan basis. We hope to see this legislation introduced before the 113th Congress adjourns.

 

Farm Bill and Nutrient Issues

 

NACWA Meets with NRCS to Discuss Farm Bill Implementation

NACWA and some of its members met with key staff for the U.S. Department of Agriculture’s Natural Resources Conservation Service (NRCS) on April 10 to discuss the newly-established Regional Conservation Partnership Program (RCPP) and its schedule for implementation. The RCPP, which is a new conservation program in the Farm Bill’s Conservation Title, incentivizes non-agricultural entities such as clean water and drinking water utilities to enter into partnership agreements with farmers to better manage nutrients on the farm to help reduce run-off and improve local water quality. This short write up provides an overview of the RCPP and its importance to the NACWA membership.

NRCS indicated a strong interest in working with the clean water sector to help make the RCPP a success. NRCS staff also indicated that they would solicit applications through an Announcement for Program Funding (APF) that is expected to be released later in May. NACWA encourages its public utility members to apply to be conservation partners and will update members with the APF becomes available. For more information, please contact Patricia Sinicropi, Director of Legislative Affairs, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Hampton Roads Sanitation District Testifies at House Hearing on Water Quality Trading Success

The House Transportation & Infrastructure Subcommittee on Water Resources and the Environment held a March 25 hearing on The Role of Water Quality Trading in Achieving Clean Water Objectives. The hearing looked at the potential use of water quality trading as an innovative, market-based mechanism to cost-effectively achieve local water quality improvements. Jim Pletl, Director of Water Quality at Hampton Roads Sanitation District (HRSD), testified on NACWA’s behalf. He spoke about the significant cost savings HRSD has experienced since participating in a point-to-point source nutrient trading program to meet the District’s nutrient permit limits and noted that trading programs are a vital part of the Association’s Utility of the Future effort.. Others who testified included Peter Tennant, Executive Director of the Ohio River Valley Water Sanitation Commission, and Brent Fewell, a Partner at Troutman Sanders who spoke on behalf of the National Water Quality Trading Alliance. Overall, the discussion was very positive and the concept enjoyed solid bipartisan support from members of the Subcommittee.

On a related note, NACWA recently became a founding member of the U.S. Water Quality Trading Alliance, a national consortium of leaders from the business, governmental, non-profit and regulated community to focus on enhancing and expanding market-based opportunities for improving water quality. The Alliance will work to support comprehensive and coherent government rules and policies on water quality trading, as well as the development of new and existing state and regional trading markets. All NACWA members will have access to the Alliance’s activities and resources. For more information about the U.S. Water Quality Trading Alliance and NACWA’s work on water quality trading issues, please contact Hannah Mellman, Manager of Legislative Affairs, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

LEGISLATION INTRODUCED

  • The Water Efficiency Improvement Act of 2014 (S. 2224/H.R. 4114), introduced by Senator Tom Udall (D-NM) in the Senate and Representative Jerry McNerney (D-CA) in the House, would establish within EPA a WaterSense program to identify and promote water efficient products, buildings and landscapes, and services to reduce water use, conserve energy, and preserve water resources. The bill would also direct the EPA administration to further promote and publicize the WaterSense program and would require federal agencies to purchase WaterSense –approved, water-efficient products.
 

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