» Update Archive

 
This edition of NACWA’s Legislative Update, current through March 24, 2015, provides information on the activities of the 114th Congress of interest to the nation’s public clean water agencies. This Update also provides a recap of the Administration’s fiscal year 2016 (FY 2016) Budget Request. 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 Patricia Sinicropi 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.

Infrastructure Funding

Administration Releases FY2016 Budget Request

On February 2, the Obama Administration released its FY 2016 Budget Request. Overall spending for the U.S. Environmental Protection Agency (EPA) would increase by $460 million to $8.6 billion and spending levels on investments in water and wastewater infrastructure would be maintained near FY 2015 levels at $2.3 billion. The budget does, however, propose some shifts in this spending category including a $333 million cut to the Clean Water State Revolving Fund (CWSRF) and a $279 million increase to the Drinking Water State Revolving Fund (DWSRF), dedicating $1.118 billion and $1.186 billion respectively to these programs. NACWA learned that this shift is largely due to the fact that the DWSRF has not enjoyed the levels of funding that the CWSRF has, coupled with the concern over the events in Toledo and the need to better protect drinking water sources.

The Administration is also requesting $50 million for technical assistance, training, and other efforts to enhance the capacity of communities and states to plan and finance drinking water and wastewater infrastructure improvements, of which $5 million would be used to administer the Water Infrastructure Finance & Innovation Act (WIFIA) and $13 million would be used to help communities develop Integrated Plans under EPA’s Framework on Integrated Stormwater and Wastewater Planning Approaches. Geographic programs overall suffered cuts of $57.3 million as most programs faced lower funding requests with the Great Lakes facing the biggest cut of $50 million.

Funding requests for both Section 319 Nonpoint Source Management Program and Section 106 Water Pollution Control Program Grants were increased by $5.7 million and $18.4 million respectively to $164,915,000 and $249,164,000. The Nonpoint Source Management Program is the main funding program under the Clean Water Act (CWA) that provides support for controlling pollutants caused by nonpoint source water run-off, including from urban stormwater and agricultural sources. The Water Pollution Control Program provides funding to the States with delegated authority under the CWA to support their administrative obligations. Of the funds set aside for Sec. 106 program, $18.5 million is to be used for collecting statistically valid water monitoring data and improve water monitoring programs — a move supported by NACWA.

The following provides a comparison of FY 2016 proposed discretionary spending levels for EPA's water programs to FY 2015 enacted levels.

This year’s budget request again includes a proposal to limit the amount of tax liability wealthy individuals can claim on interest income received from investments in municipal bonds to 28%. As in prior years’ budget requests of this Administration, the FY16 budget proposes a new bond program called America Fast Forward Bonds, similar to the Build America Bonds, which would provide state and local governments with an optional taxable bond alternative to traditional tax-exempt bonds. The Federal Government would share in the cost of these bonds so they are as affordable to issuers as tax-exempt bonds, and the proceeds can be used to further finance governmental capital projects. The Administration is also proposing a new Qualified Public Infrastructure Bond (QPIB) program that is intended to incentivize public-private partnerships and would effectively lift the caps currently in place on the Private Activity Bond program. These programs require Congressional approval and NACWA will be following developments on this as they unfold. Included here is a more detailed look at the EPA FY2016 budget .

Congress Considers FY16 Funding for SRF

In late February, the House Appropriations Committee began hearings on the Administration’s FY16 budget request, including a hearing on February 26 to review EPA’s budget, with testimony from Administrator Gina McCarthy. In her testimony , McCarthy spoke of the importance of protecting the nation’s waters and discussed the Agency’s initiative to help communities adopt more innovative, collaborative, and cost-effective ways to meet Clean Water Act (CWA) requirements. The initiative includes a new proposal to establish a Water Infrastructure & Resiliency Finance Center to provide technical assistance to communities with respect to financing issues. It also includes a $13 million request for helping communities develop plans under EPA’s Integrated Planning Initiative.

McCarthy took questions from Representatives that focused on a wide variety of issues including the proposed rule on Waters of the United States (WOTUS) and various regional water concerns such as the Puget Sound and the Great Lakes Restoration Initiative. The Administration requested a $270 million increase for the Drinking Water State Revolving Fund (DWSRF) and a $333 million decrease for the Clean Water State Revolving Fund (CWSRF).

McCarthy acknowledged the Administration’s increased focus on the need to ensure safe drinking water, despite continued regulatory pressures on communities to meet CWA requirements. When questioned about the insufficiency of the SRFs to address the nation’s massive water infrastructure gap, McCarthy stated that the SRFs are only part of the solution and pointed to efforts to leverage more private investment through Public-Private Partnerships and efforts like the new Water Finance Center that will attempt to encourage these innovative efforts.

NACWA sent a budget request letter  on March 3 to Congress urging it to reject the Administration’s budget request for the CWSRF and to continue funding the clean water program at current levels. The Association also sent a joint letter  among municipal and state associations on the Administration’s overall budget request on March 10.

NACWA Urges Support for Tax-Exempt Municipal Bonds

The U.S. Conference of Mayors (USCM) is leading an effort to gather signatures on behalf of a ‘Dear Colleague’ letter  in the House of Representatives opposing proposed roll-backs to the tax-exempt status of municipal bonds in the President’s Fiscal Year 2016 budget proposal. To date, 80 Representatives have signed onto the letter. NACWA urges its Member Agencies to increase this number by contacting their Representatives today – and the USCM has extended its deadline to March 26. If your Representative is not on this list , please encourage them to sign on without delay. Additional details about the ‘Dear Colleague’ letter and the Association’s multi-year effort in opposition to scaling back this vital tax-exemption can be found in Advocacy Alert 15-02.

$1 Trillion Senate Infrastructure Bill Proposes More Than $70 Billion for Water

Sen. Bernie Sanders (I-VT) and Sen. Barbara Mikulski (D-MD) introduced The Rebuild America Act of 2015  on January 27, authorizing $1 trillion in infrastructure investment over the next five years, including tens of billions for water infrastructure. The proposed legislation calls for $30 billion for the Clean Water State Revolving Fund (CWSRF), $30 billion for the Drinking Water State Revolving Fund (DWSRF), and $10 billion for the Water Infrastructure Finance & Innovation Act (WIFIA). In addition, billions are authorized for other water infrastructure like dams and levees and harbors.

Arguing that this level of investment is critical to address the nation’s huge infrastructure gap, Senator Sanders stated when unveiling the measure that the investments are also critical to spur jobs and economic growth. The proposal has been endorsed by the American Society of Civil Engineers (ASCE), the AFL-CIO, and the Progressive Change Campaign Committee.

While the legislation does not propose a way to fund these investments, the Senators believe it will push Congress to have a real discussion about the massive need for infrastructure investment in the nation, an issue that both parties identify as a real problem. NACWA welcomes and supports this bill’s effort to spotlight this important issue and inspire a national dialogue on federal infrastructure funding. The Association will continue its advocacy efforts to make infrastructure investment a priority issue in Congress.

Affordability and Integrated Planning

Integrated Planning Gets Boost in FY16 EPA Budget Request

The Administration included $13 million in its FY16 Budget Request for the Environmental Protection Agency (EPA) to help communities develop plans under its Framework on Integrated Stormwater & Wastewater Planning Approach . The funds will provide both grants and technical assistance to selected communities to pilot integrated planning and demonstrate the approach’s effectiveness in helping communities affordably meet their CWA obligations without compromising environmental and public health goals. NACWA had urged EPA to include a funding request for integrated planning and is pleased that the Agency did so. NACWA is working with a bi-partisan coalition of House and Senate Members to ensure the proposed funding is approved later this year. For the past two fiscal years, the House Appropriations Committee proposed $2 million for Integrated Planning though the amount was not approved in final budget agreements. In addition, last year, EPA found extra money in its FY14 budget and announced the availability of $335,000 in technical assistance to help five communities develop Integrated Plans, including Onondaga County, New York; Durham, New Hampshire; Burlington, Vermont; Santa Maria, California; and Springfield, Missouri.

Climate and Resiliency

Legislation to Support Community Resiliency is Reintroduced in House and Senate

Representative Lois Capps (D-CA) and Senator Ben Cardin (D-MD) re-introduced the Water Infrastructure Resiliency & Sustainability Act , which would help drinking water, wastewater, and stormwater utilities prepare for the impacts of climate-related risks to our water supplies. Senators Harry Reid (D-NV) and Barbara Boxer (D-CA) are again co-sponsoring the legislation in the Senate. Drought, sea level rise, and severe storms, all of which would significantly impact water systems and availability, are expected to grow more frequent and severe due to climate change. Under the legislation, drinking water, wastewater, and stormwater utilities could apply for EPA matching funds to implement projects that address the most significant climate-related risks and benefit the largest numbers of water users. Utilities may use the federal matching funds on projects that build resiliency to changing hydrological conditions, including through water conservation and efficiency measures; enhancing water management through source water protection and green infrastructure; or, facilitating the use of advanced technologies – such as water reuse and recycling – to increase available water supplies. NACWA, along with several water sector associations, helped develop the legislation and sent a letter  in support of it.

114th Congress

Outlook for 2015 Discussed with Key Congressional Committees

NACWA staff met with a round of key Congressional committee staff in late January to review the legislative outlook for the 114th Congress with respect to legislation impacting clean water utilities. Republican and Democratic staff for the House Water Resources & Environment Subcommittee and for the Senate Environment & Public Works Committee were cautiously optimistic that reauthorization of the Moving Ahead for Progress in the 21st Century (MAP-21 – transportation bill) would get done in the first half of this term of Congress, signaling a bi-partisan commitment to seeing greater investment in infrastructure and indicated an interest in examining stormwater mitigation as part of this reauthorization debate.

They also indicated that there seems to be a bi-partisan commitment to reauthorize water resources legislation governing programs administered by the Army Corps of Engineers before the end of the this Congress — the same legislation that included provisions to improve the Clean Water State Revolving Fund program. NACWA staff continued to raise the importance of trying to achieve a bi-partisan consensus on reforms to the Clean Water Act that would address issues of affordability for its members. NACWA has also been meeting with staff of the House Water Resources and Environment Subcommittee members to discuss issues the Association is working on such as restoring the Clean Water State Revolving Fund, protecting tax-exempt municipal bonds, and increasing support for affordability-related issues and Utility of the Future issues.

Waters of the U.S.

House-Senate Hearing Shows Majority’s Opposition to Proposed Waters of the U.S. Rule

Republicans and Democrats are no closer to agreeing on the proposed Waters of the U.S. (WOTUS) rule after the lengthy joint House-Senate Hearing over the rule on Wednesday, Feb. 4. The hearing’s purpose was to examine WOTUS’s impacts on state and local governments.

At the hearing, EPA Administrator McCarthy explained that the purpose of the proposed rule is to “clarify the jurisdictional scope of the Clean Water Act (CWA), simplifying and improving the process for determining waters that are, and are not, covered by the Act”. Throughout the hearing, Administrator McCarthy and U.S. Army Corps Assistant Secretary Jo-Ellen Darcy tried to clear up many misunderstandings and concerns regarding the proposed rule.

Administrator McCarthy repeatedly stated that all current exemptions would remain in place under the proposed rule and that jurisdiction under the Clean Water Act is not expanded. She also stated that groundwater, green infrastructure, isolated ponds and puddles, artificially irrigated areas, and water-filled depressions incidental to construction would not be jurisdictional under the final rule. She emphasized that the proposed rule would actually expand exemptions to include some features that currently require permits – a development supported by NACWA in its comments on the proposal.

Despite the efforts to clarify, many Republicans remain dissatisfied. Many lamented EPA’s lack of communication and collaboration with the states and pointed to the absence of trust between local stakeholders and the agency. Following the hearing, Rep. Bill Shuster, Chair of the House Transportation & Infrastructure Committee, and Sen. James Inhofe, Chair of the Environment & Public Works Committee, released a joint statement calling for the withdrawal of the WOTUS proposal arguing that it “would make it difficult to build anything” and that it would “cause greater confusion and increased costs”. Included here are a video recording of the hearing and all written testimony.

Collaborations

NACWA Members Receive Regional Conservation Partnership Program Funding

The U.S. Department of Agriculture (USDA) announced awardees for the first round of funding under the newly established Regional Conservation Partnership Program (RCPP) the week of January 12. Four projects receiving awards involve NACWA members either as a lead partner or as a participating partner.

NACWA congratulates the City of Cedar Rapids as the leading partner for the Middle Cedar Partnership Project that will focus on working with local conservation partners, farmers and landowners to install best management practices such as cover crops, nutrient management, wetlands and saturated buffers to help improve water quality, water quantity and soil health in the Cedar River Watershed.

NACWA also congratulates the following NACWA members who are playing key partnership roles in the following project awards:

The Madison Metropolitan Sewerage District, a key partner for the Yahara Watershed Pilot project led by the Dane County Land and Water Resources Department, will be the first in the nation to test the Watershed Adaptive Management Program – an innovative regulatory compliance option for addressing phosphorus. In addition, the City of Columbus, OH is a participating partner in a watershed project in the Upper Big Walnut Creek watershed which supplies drinking water to the City; and, the City of Baltimore is a participating partner in the Mason-Dixon Working Lands Partnership focusing on wetlands restoration and the health of the Chesapeake Bay watershed.

The RCPP is a new program established under the 2014 Farm Bill to encourage partnerships between agricultural producers and other entities, including municipalities and wastewater authorities, to tackle water quality challenges and other natural resource problems. NACWA led the Healthy Waters Coalition of municipal water and wastewater organizations, environmental NGOs and state regulators in advocating for strengthening the links between agricultural policy and water quality during last year’s Farm Bill reauthorization debate.

These projects were selected from a competitive pool of nearly 600. In this first round of funding, USDA awarded $400 million to 115 projects. A second round of funding will be announced in the spring. The RCPP reflects the growing importance of embracing partnerships to address water quality issues, which NACWA focused on at the 2015 Winter Conference in Charleston, S.C. (see NACWA’s press release for more information).

April in D.C.

Come to Washington April 12-15 for National Water Policy Forum & Fly-in!

The National Water Policy Forum & Fly-In, the anchor event of Water Week 2015, is only a month away and is packed with great speakers and events! EPA Administrator Gina McCarthy will help kick-off the Forum on Monday, April 13th and will be joined by Washington insiders Norm Ornstein, Resident Scholar at the American Enterprise Institute and former Representative Steven LaTourette (R-OH). McCarthy will discuss top clean water priorities for the EPA, including the latest developments with the Agency’s proposed Waters of the U.S. Rule. Ornstein will provide insights into the state-of-play in Washington between Congress and the Administration, and LaTourette will discuss his time in Congress and provide pointers on how to successfully engage your Member of Congress on local and national clean water issues.

The fly-in is your opportunity to share your perspective on clean water policy with federal policy-makers here in D.C. and remind your Member of Congress of the important clean water services you provide to their constituents. Your local message can have a strong influence on a Member’s decision-making so providing site-specific information relevant to national policies is vital. To schedule meetings, we have set-aside 12:30 to 5:00pm on Tuesday, April 14 for you to visit your Member of Congress to discuss your communities’ clean water challenges, how these issues impact constituents, and how he/she can support your work.

A webinar to prep for Water Week and the Policy Forum will be held on Thursday, March 26 from 2 to 3:30 p.m. A one-page briefing fact sheet with relevant facts will also be developed for Policy Forum attendees to use and distribute to their representatives. For more resources on how to prepare for your meetings, please refer to the Congressional Outreach Tools in our Congressional Toolbox.