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This edition of NACWA’s Legislative Update, current through June 3, 2016, provides information on the activities of the 114th Congress of interest to the nation’s public clean water agencies. For more detailed information regarding NACWA legislative activities, click on the web links in selected news items or visit NACWA’s website. Please contact NACWA’s This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 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.

Top Stories

NACWA Stormwater Proposal Included in House WRDA Bill

On May 25, the House Transportation & Infrastructure Committee passed HR 5303, the Water Resources Development Act (WRDA) reauthorization package for flood control projects undertaken by the Army Corps of Engineers (ACOE). At the request of Representatives John Duncan (R-TN) and Dan Lipinski (D-IL), the Committee included a provision developed by NACWA designed to lead to better integration of municipal stormwater projects and ACOE-sponsored flood control projects in order to address water supply and/or water quality challenges faced by municipalities. Water resources management is becoming a complex challenge for local communities as they confront issues such as severe and persistent drought in the West and extreme wet weather events in the Midwest and East. Depending on a community’s location, storm events can either lead to replenished water supplies or to larger water quality deadzones. Municipal stormwater management programs are increasingly imposing greater costs on ratepayers. The provision offered by Representatives Duncan and Lipinski provides an opportunity to help communities optimize stormwater resources to support water supply and/or water quality goals and to use ratepayer resources more efficiently.

The House proposed 2016 WRDA package has been characterized by many as a “pamphlet” version compared to the 2014 WRDA package and the Senate proposed 2016 WRDA package because it is limited to projects overseen by the ACOE. The full House and Senate may take up consideration of their respective proposals in June, after which a conference committee will be convened to reconcile the two proposals. NACWA held a webinar  in late May discussing the highlights of the Senate package, which contains several policy priorities for Member Agencies. The Association will be working with its members to urge adoption of these proposals by Congress in a final WRDA authorization bill.

Funding for Integrated Planning Included in FY17 EPA Budget

The House Appropriations Committee released its proposed Fiscal Year (FY) 2017 spending package for EPA that includes one of NACWA’s key funding requests for $6.5 million to help communities develop plans under the Agency’s Integrated Planning initiative.

The Committee also included just under $2.1 billion for both the Clean Water (CW) and Drinking Water (DW) State Revolving Fund (SRF) programs; however, it shifted more money to the DWSRF ($1.070 billion compared to $863 million in FY16) than in previous years due to concerns over lead in drinking water. The CWSRF would see a substantial reduction under the proposal ($1 billion compared to $1.393 billion in FY16) and overall, the SRFs would receive approximately $150 million less than last year’s allocation ($2.257 billion). The House proposal provides $50 million for the Water Infrastructure Financing & Innovations Act (WIFIA), which EPA expects to launch later this year. The proposed package, adopted by voice vote by the Interior & Environment Appropriations Subcommittee, will be considered by the full committee when Congress returns from its recess June 6.

Both the Senate and House have been working to advance their 12 individual Fiscal Year (FY) 2017 Appropriations bills, which would enable them to maintain regular order, demonstrate that Congress is functioning – a key priority for the Republican Majority in an election year - and avoid another continuing resolution or omnibus spending bill at the end of the year. However, many congressional observers believe that another continuing resolution or omnibus is increasingly inevitable. To date, only one of the 12 spending bills (Veterans and Military Construction) has had a version passed by both the House and Senate. The Senate has approved three of 12 spending bills, while the House has approved just one.

The FY17 Energy & Water Appropriations bill has become an interesting example of the challenges ahead in passing individual bills. The Senate lauded its passage of the bill—the first time the bill has passed the Senate in regular order since 2009 – but the House’s bill failed after losing support from both Democrats and Republicans over “poison pill” policy riders. Senate Republicans are growing frustrated with how the open process is impeding the passage of appropriations bills in the House. When Congress returns from recess on June 6, there may be changes to the process to allow more bills to advance.

NACWA Helps Facilitate Congressional Briefing on Low Income Rate Assistance

NACWA members participated in a congressional briefing hosted by Representative Marcia Fudge (D-OH) on May 12 that spotlighted the affordability challenges low-income ratepayers face in paying for the rising costs of water, sewer and stormwater bills. Briefing participants included NACWA Board members Julius Ciaccia, CEO of the Northeast Ohio Regional Sewer District, and George Hawkins, General Manager of DC Water. They were joined by Kishia Powell, Director of Public Works for the City of Jackson, MS and Eric Rothstein, a national expert on ratepayer affordability challenges. The briefing drew a great crowd, both in person and with over 150 people participating via live streaming online.

During the briefing, Powell described the “rate shock” that occurred several years ago in the City of Jackson when sewer rates increased over 100%, which led many residents to stop paying their water and sewer bills. Ciaccia and Hawkins both discussed the affordability challenges facing their communities in providing clean water services, but noted the value of having assistance programs available to support low-income households. Rothstein highlighted, from a national perspective, the growing affordability concerns facing utilities nationwide as rates continue to rise and the important role that low-income assistance programs can play in addressing these challenges.

Representative Fudge has introduced legislation, H.R. 4542, the Low Income Sewer and Water Assistance Program Act, to establish a pilot program to award grants to low-income households to assist with payment of water and sewer bills. Other legislative proposals call for a study to examine the viability of establishing such a proposal. NACWA strongly supports these efforts and thanks Rep. Fudge for her bold leadership on this issue. The Association looks forward to continuing its advocacy on affordability concerns. The briefing presentation slides are available here .

Infrastructure Week Highlights Importance & Needs of Water Sector

Infrastructure Week was celebrated the week of May 16 in Washington, DC and across the county as NACWA and many Association members participated in and hosted events to highlight the importance of municipal clean water utilities in the nation’s overall infrastructure discussion.

The Value of Water Coalition (VOW), of which NACWA is a member, played a leading role in helping to organize Infrastructure Week, including an opening kickoff breakfast on May 16 at the U.S. Chamber of Commerce featuring a variety of speakers and panels addressing broad infrastructure concerns. NACWA also participated in an Infrastructure Week Advocacy Day press event on May 18 featuring remarks by Members of Congress and infrastructure sector leaders. As part of the event, the American Society of Civil Engineers highlighted findings from their new study, Failure to Act: Closing the Infrastructure Investment Gap for America’s Economic Future , which finds a $1.4 trillion infrastructure investment need and predicts that failure to address this investment gap by 2025 will cause a $4 trillion loss in GDP and a loss of 2.5 million jobs. Additionally, NACWA attended a Congressional briefing May 19 sponsored by VOW and the National League of Cities focused on water infrastructure challenges at the local level.

Outside of Washington, NACWA members in Camden, NJ, Cleveland, OH, Hampton Roads, VA, Chicago, IL, Honolulu, HI, and Alexandria, VA all hosted events – many at local wastewater treatment facilities – educating their local residents about the importance of water infrastructure in their communities. Thanks to everyone who helped make Infrastructure Week a success!

Energy

Energy Bill Reconciliation Advancing Slowly

As reported in the March/April Legislative Update, legislation which could become the first comprehensive energy reform in nearly a decade has passed both the House and Senate. However, the House and Senate bills differ significantly and still await reconciliation. Congressional leaders have been working toward a formal conference to reconcile the two bills.

The 424-page Senate bill has enjoyed bipartisan support. The bill includes several provisions of interest to the clean water sector which NACWA supports. However, the House bill was more split along party lines. The President has threatened to veto the House bill if it reaches his desk. The House also added over 800 pages of amendments to their bill in May, including the text of a separate bill addressing the drought that was sponsored by Rep. David Valadao (R-CA)– increasing the stakes and politics surrounding the legislation.

Progress on a conference to hammer out differences between the bills has been slow, and may run up against the clock as Congress moves toward its long summer recess. Just before Memorial Day, the House announced its energy bill conferees. The Senate has not yet announced its conferees for the bill. It is quite possible negotiations could continue into the fall.

Stormwater

New Tennessee Stormwater Law Limits Use of Post-Construction Performance Standards

A Tennessee stormwater bill (S.B. 1830) that recently became law would require that NPDES MS4 permits issued by the state be no more restrictive than federal requirements for post-construction management of stormwater. This could lessen the ability of local governments to use post-construction onsite retention standards for managing stormwater. This bill sets a concerning precedent for other states, especially where municipal stormwater utilities are interested in using such standards as part of their stormwater management programs and must determine whether individual performance standards exceed "the federal minimum".

The Tennessee Dept. of Environment and Conservation (TDEC) and a number of municipal interests opposed the bill, noting  that the law limits the ability of localities to set post-construction controls. Post-construction performance standards in many cases require new or redeveloped sites to retain or infiltrate a certain amount of runoff on site.

The potential ramifications of this law are significant, not just for municipalities in Tennessee that now have another cumbersome procedural burden and the potential of legal challenges but also as precedent for other states and municipalities that rely on post-construction performance standards as an avenue to meet their water quality goals. NACWA has concerns with the mandatory imposition of post-construction retention standards by federal or state regulators, but believes individual municipalities and MS4s should be able implement such standards if they choose as part of a stormwater management program. The Association will be closely tracking any efforts in other states to pass similar legislation, and will also be discussing this issue with the National Stormwater Advocacy Network.

Restoration

EPA’s National Estuary Program Reauthorization Signed into Law

On May 20th, President Obama signed legislation extending the National Estuary Program, a U.S. EPA program created by the 1987 amendments to the Clean Water Act. The National Estuary Program funds projects to help restore water quality and wildlife in 28 coastal water bodies. The bill authorized a total of $132 million between FY2017 and FY2021. The bipartisan legislation was co-sponsored in the Senate by Sens. David Vitter (R-La.) and Sheldon Whitehouse (D-R.I.) Legislation passed the House in April and the Senate in May.

Upcoming Hearings

With Congress on recess the first week of June, there are no upcoming Congressional hearings of interest to report. We do anticipate the calendar to be busy as Congress returns for a six-week session in June and July. Hearings are often announced with little advance notice and NACWA will keep the membership updated.