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July 2014 Legislative Update

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To: Members & Affiliates, Legislative and Regulatory Policy Committee
From: National Office
Date: August 5, 2014

This edition of NACWA’s Legislative Update, current through July 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.

August Recess is Here; Congress Returns to Home Districts for Five Weeks

With August recess upon us and Members of Congress returning to their home districts for the next five weeks, it 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 local and national priority clean water issues facing their constituents. In-person facility tours and meetings are the most effective way to ensure that clean water issues become a Congressional priority.  To assist you in your outreach, NACWA’s Congressional Toolbox contains fact sheets 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 or need additional assistance please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

ISSUE AREAS

 

Clean Water Funding and Financing

 

House Appropriations Subcommittee Reports Proposed EPA FY 2015 Budget

The House Appropriations Subcommittee that oversees the budget for the U.S Environmental Protection Agency (EPA) reported its FY 2015 spending proposal for the Agency this week. Overall, the proposal reduces EPA’s budget by 9% with total spending for the Agency of $7.5 billion. The Subcommittee’s proposal mirrors the President’s budget request of $1.018 billion for the Clean Water State Revolving Fund Program and $757 million for the Drinking Water State Revolving Fund Program. The FY 2014 enacted levels for both programs were $1,448,887,000 and $906,890,000, respectively. The package also includes $2 million for pilots under the Integrated Planning initiative (see related article on Integrated Planning and Affordability).

In addition to proposed spending levels, the House package contains several policy riders including one that would prevent the Agency from implementing its proposed “Waters of the U.S.” rule for determining what waters fall under the jurisdiction of the Clean Water Act for purposes of issuing permits under that statute. The Administration has already issued a veto threat for the bill due to the policy riders that House Republicans included in the package.

Finally, the FY 2015 House budget proposal did not contain funding for the Water Infrastructure Financing and Innovations Act (WIFIA) loan guaranty program, but this may be included down the road in the Senate version. There is also the possibility that appropriations for the WIFIA program may be delayed until FY 2016. NACWA will keep members apprised of any relevant updates as the budget process unfolds. 

NACWA Participates in First EPA Listening Sessions on the WIFIA Loan Guarantee Program, Six More Planned Across the Country

EPA has announced that it will be holding a series of Listening Sessions on the WIFIA loan guarantee program and is particularly interested in having NACWA public agency members participate. WIFIA was established in the Water Resources Reform & Development Act and will provide direct loans and loan guarantees to drinking water and wastewater infrastructure projects that cost at least $20 million (or $5 million for water systems serving 25,000 or fewer people).

NACWA participated in the first Listening Session in Chicago on July 22, along with other representatives from NGO groups, public agencies, and the private sector. The Session shed light on the legislative language governing the eligibilities and criteria for pilot project applications. Participants also discussed specific project ideas, with many focusing on ‘Utility of the Future’ or integrated planning. This is in part because these projects are less likely to require the use of tax-exempt municipal bonds, which are prohibited from being used as part of the 51% municipal funding share. While the discussion was lively and engaging, it is important to keep in mind that money to fund the WIFIA pilot program has not yet been appropriated by Congress and until this happens the program cannot be implemented.

In advance of the Listening Session, the American Water Works Association (AWWA), the Water Environment Federation (WEF), the Association of Metropolitan Water Agencies (AMWA), and NACWA released an Issue Paper pdf button that serves as an excellent resource on key opportunities and technical challenges associated with the new WIFIA program. Other Listening Sessions will take place in New York, Atlanta, Dallas, Los Angeles, San Francisco, and Washington, DC but dates for those events have not yet been scheduled. NACWA will share the dates for these sessions when they become available and members can email EPA at This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more information.

 

Integrated Planning and Affordability

 

NACWA Testifies on Clean Water Act Affordability, Integrated Planning

The House Transportation & Infrastructure (T&I) Subcommittee on Water Resources and the Environment held a July 24 hearing, Integrated Planning & Permitting Framework: An Opportunity for EPA to Provide Communities with Flexibility to Make Smart Investments in Water Quality, to examine the status of EPA’s Integrated Planning (IP) Framework and legislative efforts to bolster IP and promote innovative approaches to Clean Water Act (CWA) affordability assessments. Stephen Meyer, Director of Environmental Services for the City of Springfield, Missouri, and Member of NACWA’s Board of Directors testified on the Association’s behalf. Other witnesses included David Berger, Mayor of the City of Lima, Ohio; Todd Portune, Commissioner of the Hamilton County (OH) Board of Commissioners; and Ron Poltak, Executive Director of the New England Interstate Water Pollution Control Commission.

At the hearing, Meyer’s testimony pdf button centered around Springfield’s affordability challenges and the City’s efforts to develop an integrated plan in order to more affordably manage its wastewater and stormwater requirements under the CWA. Springfield intends to eventually incorporate their requirements under the Clean Air Act and the Solid Waste Disposal Act into their integrated plan, as well. Meyer and the other panelists were in agreement that due to the challenges of meeting a growing regimen of federal CWA requirements, the IP approach can be the best way to provide much-needed flexibility for communities facing significant water quality and other environmental challenges, short of amending the CWA. Members of the Subcommittee also expressed concern about the affordability challenges associated with the CWA and related environmental statutes.

The hearing also examined two bills on behalf of which NACWA has been advocating. The first is H.R. 3862, The Clean Water Affordability Act, which is co-sponsored by Reps. Bob Latta (R-OH) and Tim Walz (D-MN), and would codify EPA’s IP approach, extend permit terms for communities with an approved integrated plan, and require the Agency to revise its guidance on financial capability. Reps. Latta and Walz co-authored this week’s blog post for The Water Voice on the need for passage of their legislation to help communities more affordably manage their CWA requirements. The second bill, H.R. 2707, The Clean Water Compliance and Ratepayer Affordability Act, is co-sponsored by Reps. Steven Chabot (R-OH) and Marcia Fudge (R-OH). H.R. 2707 would create a new pilot program for 15 communities across the country to develop integrated plans and extend permit terms for pilot communities with an approved integrated plan.

Panelists at the hearing expressed their support for these proposals and NACWA will be working with Reps. Latta, Walz, Chabot, and Fudge to move these bills forward. NACWA will also be working with Senator Sherrod Brown (D-OH) and other members in the Senate to ensure similar legislation is introduced.

NACWA Helps Secure Funds for IP Pilots in House Appropriations Bill

The FY 2015 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 a 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 2015 budget, it is clear Congress understands the need for, and value of, the integrated planning approach.

This funding would be in addition to the $335,000 in technical assistance EPA announced in May to help up to five communities seeking technical support to develop and implement integrated plans. EPA identified the money in its FY 2014 budget for this effort and NACWA applauds them for doing so. Thus far, over 28 communities of varying sizes in nine EPA regions have submitted letters of interest for help under this offer signaling the appetite for adopting this approach is high.

 

HEARINGS

 

    • The Senate Environment and Public Works Committee Subcommittee on Water and Wildlife held a hearing on July 16 to examine several bills including S. 571, The Great Lakes Water Protection Act and S. 2225, The Smart Water Resource Management Conservation and Efficiency Act.  S. 571 would restrict bypasses, prohibit blending, and asses penalties where discharges exceed effluent limits from wastewater treatment facilities into the Great Lakes.  S. 2225 would establish a grant program for water, wastewater and reuse entities that demonstrate innovative technology-based solutions to increase energy and water efficiency.  NACWA is not supporting S. 571.  No votes have been scheduled on these bills at this time.

 

sat logoMembers seeking more information or related legislation in their state can access NACWA’s State Action Track web tool, here.

 

 

 

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