» Update Archive

This edition of the National Association of Clean Water Agencies’ (NACWA) Legislative Update, current through January 15, 2009, provides information on the activities of the 110th and 111th Congresses of interest to the nation’s publicly owned treatment works (POTWs). For more detailed information regarding NACWA activities related to specific legislation, click on the web links in selected news items, visit NACWA’s website, or contact Pat Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Byron DeLuke at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Top Stories

Congress Moving Quickly on Recovery Package, But Could Be Pushed to February

The newly installed 111th Congress and President-Elect Barack Obama quickly got to work this month formulating a plan to jumpstart the ailing economy. The President-elect made his first major speech since the election on Jan. 9, and focused his remarks almost entirely on the need for a robust recovery package in the range of $800-900 billion. Obama has also spent time on Capitol Hill meeting with congressional leaders to discuss the recovery package.

Significantly, when the President-elect met with House and Senate congressional leaders on Jan. 6 and Jan. 11 to discuss the package, Rep. Jim Oberstar (D-Minn.), chair of the House Transportation and Infrastructure (T&I) Committee, and Sen. Barbara Boxer (D-Calif.), chair of the Senate Environment and Public Works (EPW) Committee, pushed for a package containing significant funding for ready-to-go wastewater infrastructure projects. Obama presented an outline of his recovery plan to Congressional leaders during these meetings, and NACWA has continued to work aggressively to ensure that the authorizing committees include at least $10 billion in funding for wastewater infrastructure. NACWA is also seeking legislative language in the recovery bill that makes eligible all ready-to-go projects, whether they have undergone the Clean Water State Revolving Fund (CWSRF) application process or not. The Association continues to meet to discuss these issues with key congressional staff as the bill is drafted. In addition to these staffers, NACWA is also working closely with other key groups, such as the U.S. Conference of Mayors, the Association of State and Interstate Water Pollution Control Administrators (ASIWPCA), and the U.S. Environmental Protection Agency (EPA) on the recovery package.

While the original talk about having a package ready to vote on and send to the White House right after the Inauguration (January 20) has been tempered, House Speaker Nancy Pelosi (D-Calif.) has indicated that she would cancel the February recess if the stimulus package is not complete. NACWA has also learned that committee markups for the stimulus package are likely to take place next week, with floor action still anticipated for the last week in January or first week in February.

NACWA Urges Members to Contact Congress about Ready-to-Go Projects Immediately

Regardless of the timing of the recovery bill, however, NACWA will continue to ramp up meetings with key congressional staff to broaden support for a strong wastewater infrastructure component in the stimulus package. NACWA has learned that some in Congress and the incoming administration are skeptical about how effective infrastructure investment can be as an economic stimulus because of concern that these projects cannot move forward fast enough to provide sufficient immediate economic benefits. For this reason, NACWA strongly encourages its members to contact their representatives in the House and Senate and make the argument that infrastructure spending on water and wastewater projects can occur quickly and have the desired impacts on job creation and economic activity. NACWA additionally urges its members to continue to make the case for the funding to be in the form of grants.

NACWA continues to update its list of ready-to-go projects submitted by public wastewater treatment agencies that currently totals nearly $17 billion and is using this information to build support for increased wastewater funding levels in the recovery package. If you have projects you would like to add to our list, have discussed the issue with your Members of Congress and received feedback, or would like to help in getting your Mayor and other elected officials to weigh in with Congress on the importance of the economic stimulus to your community, please contact Pat Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Byron DeLuke at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Oberstar Releases $85 Billion Infrastructure Plan at House Economic Forum

The House Democratic Steering and Policy Committee convened a forum Jan. 7 to examine the nation’s economic situation and the need for a comprehensive jobs and economic recovery package. The forum outlined the goals of the 111th Congress as it prepares to debate President-elect Barack Obama’s economic recovery package. Reps. George Miller (D-Calif.) and Rosa L. DeLauro (D-Conn.) chaired the forum, which also featured economists and professors who pleaded for a broad fiscal stimulus plan amid warnings that the U.S. economy could face an even more severe recession without a massive federal investment.

The Association’s position was supported by several key witnesses, including Dr. Mark M. Zandi, the chief economist and cofounder of Moody’s Economy.com, who argued that while both spending and tax cuts should be included in a package, infrastructure spending provides a higher rate of return than tax cuts. “Each dollar spent yields a return of $1.50 in economic growth; while each dollar in tax cuts yields a $1 return,” stated Zandi. Robert B. Reich, Secretary of Labor under the Clinton administration and a professor at the University of California at Berkeley, estimated that a fiscal stimulus with at least $900 billion in spending over a two year period, with a large infrastructure component, is needed. "The danger is not that the federal government will do too much but, rather, that it will do too little." To view all of the panelists’ remarks, click here .

The Chairs of several key House committees, including Transportation and Infrastructure (T&I) and Appropriations, also participated. Chairman Oberstar presented details of his $85 billion infrastructure investment and job creation program , which requires funds to be invested in ready-to-go projects and outlines an aggressive timetable for the use of funds, including a 90-day, use-it-or-lose-it requirement for a portion of the money. Oberstar argued that “This infrastructure investment creates family-wage construction jobs… and will be done in the United States because roads, bridges, transit and rail systems, airports, waterways, and wastewater treatment facilities are here, in our towns and cities.”

Appropriations and Funding

House and Senate Appropriations Committees Finalize Work on 2009 Spending Bills

Key Congressional leaders are working to finalize an omnibus spending bill to fund federal operations for the rest of fiscal year (FY) 2009, after the current spending measure expires in early March. The spending package, would deal with the nine remaining spending bills that did not pass last year and includes that of Interior, Environment, and Related Agencies. However, Senate Appropriations Chairman Daniel Inouye (D-Hawaii) has stated that he does not intend to move on the spending measure before work on the economic recovery package is finished – meaning lawmakers may not take up the measure before late February.

Government programs, including those of EPA, are currently under a continuing resolution (CR) that funds agencies at 2008 levels through March 6, meaning lawmakers will have a very short window to pass the omnibus or consider another CR. However, NACWA has been told during meetings with appropriations staff that the omnibus would allow Democrats to restore some of the spending increases they fought for at the committee level – including increased funding for key water programs like the CWSRF that were drastically cut in the Bush administration's budget proposal.

NACWA Works to Restore Funding through SRF Reauthorization Bills, Trust Fund

NACWA continues to advocate aggressively for legislation to reauthorize the CWSRF at $14 billion over four years, similar to the Water Quality Financing Act of 2007 (H.R. 720) passed by the House in March of 2007. The House Transportation and Infrastructure (T&I) Committee has expressed their desire to reintroduce H.R. 720 or a similar bill early in 2009 and NACWA will be providing committee staff with input on the bill. The Senate EPW Committee marked up its version of the bill, the Water Infrastructure Financing Act (S. 3500) in September 2008. NACWA and the Water Infrastructure Network (WIN) worked hard on this legislation, which contains $20 billion in total funding for the CWSRF (fiscal years 2008-2012); $1.35 billion in grants for sewer overflow control projects; and $50 million in grants for critical watershed restoration projects. The legislation would also clarify that green infrastructure projects qualify for SRF funding and create incentives for CWSRF applicants to incorporate green infrastructure techniques.

NACWA will continue to work with key members of the House and Senate to reintroduce and enact these bills early in the 111th Congress. NACWA recognizes that this legislation represents only the first step toward securing additional funding for the nation’s clean water agencies. The Association is continuing to work with other members of Congress who are looking at innovative new ways to help fund critical water infrastructure and met Jan. 13 with staff for Rep. Earl Blumenauer (D-Ore.), a member of the House Ways and Means Committee, who is drafting trust fund legislation. Rep. Blumenauer is developing draft legislation based on recommendations from NACWA and WIN, and will soon be seeking stakeholder input.

The Government Accountability Office (GAO) is also expected to report by March the results of its study on potential revenue sources for a national clean water trust fund capable of supporting a minimum of $10 billion annually. T&I Committee Chairman Oberstar, T&I Water Resources and Environment Subcommittee Chairwoman Eddie Bernice Johnson (D-Tex.), and Rep. Blumenauer requested the study in a Jan. 30, 2008 letter to the GAO. NACWA will continue to work closely with Reps. Blumenauer, Johnson, and Chairman Oberstar on a strategy for trust fund legislation with the goal of introducing a bill in 2009.

Climate Change and Security

NACWA Reaches Out to Waxman on Climate Change, Chemical Security Issues

NACWA sent a letter Dec. 10, 2008 to Rep. Henry Waxman (D-Calif.) congratulating him on his selection as Chair of the House Energy and Commerce Committee and outlining the Association’s major concerns regarding two issues in which the committee will have a leading role — climate change and chemical security. The letter said the Association is eager to work with Waxman, his staff, and the 111th Congress to address the issues. NACWA reiterated its belief that climate change is “fundamentally a water resource management issue with potentially severe consequences if not addressed in a science-based, common-sense manner” and outlined the association’s efforts to date to address this challenge.

The letter also pointed out that NACWA has been working with the House Homeland Security and Transportation and Infrastructure Committees on legislation to reauthorize the Chemical Facilities Anti-Terrorism Act, which expires in October 2009. “While we fully understand the need to ensure the strongest protections possible for chemical facilities and the communities near them, we continue to believe that public wastewater treatment agencies should not be included in the same regulatory regime as for-profit chemical manufacturers,” the letter said. NACWA will set up meetings with the committee to address these important issues in the 111th Congress.

Green Infrastructure

NACWA Continues Collaboration with Environmental Groups on Green Infrastructure Bill

NACWA continues to meet with representatives from the Natural Resources Defense Council (NRDC), the Water Environment Federation (WEF), American Rivers, and Clean Water Action to draft legislation that will promote green infrastructure as a means to address wet weather issues and other water quality challenges. The bill is still in the planning stages but would contain grants for research and for clean water agencies to implement green infrastructure projects, and create an office within EPA to oversee efforts on green infrastructure. NACWA is drafting specific provisions of the bill. Once the draft is complete, the Association will seek volunteers for a member review team and will work with the collaborating organizations to find sponsors in the next Congress to introduce and champion the new legislation. The time is right to pursue infrastructure legislation as, in addition to cost savings and environmental benefits, green approaches to improving water quality are producing new “green” jobs that will help the economy — a priority for the incoming Obama administration. If your agency is interested in being on the review team, please contact Pat Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Byron DeLuke at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Joint Initiatives

NACWA Hosts Meeting of Key Water Sector Organizations

NACWA officers and staff met with the leaders of seven other water sector organizations Jan. 5-6 to discuss issues of concern and find areas of commonality around which to build a more unified advocacy voice in the coming year. The meeting was organized by NACWA and included leaders from WEF, the Association of Metropolitan Water Agencies (AMWA), the American Water Works Association (AWWA), the National Association of Water Companies (NAWC), the National Rural Water Association (NRWA), the Western Coalition of Arid States (WESTCAS), and the WateReuse Association.

One key item on which the groups agreed was the need for a joint letter to President-Elect Obama urging support for the inclusion of $20-$40 billion for water and wastewater funding in the economic stimulus package. The participants also shared how the economic downturn has affected their individual organizations and members. Most indicated that the greatest impact has been to reduce member travel to conferences and training workshops, etc. Drinking water and wastewater utilities that rely on service connections in growth areas have seen decreases in revenues because of the stalled housing market, but water and wastewater utilities generally have felt more insulated from the economic downturn. However, most agreed that if the economic crisis continues, greater impacts will be realized later on. Others view the economic situation as an opportunity to work more collaboratively with other organizations and to be creative in how they manage their operations, with some noting that they are seeing an increase in qualified applicants for open positions at their utilities.

Climate change, workforce challenges, chemical security, addressing 21st century challenges using a watershed approach, water sector data needs, and contaminants of emerging concern were also topics at the summit. With climate change ranking near the top in terms of priorities, the groups identified certain areas for collaboration, such as aligning legislative strategy, developing adaptation strategies and working to mitigate utility carbon footprints. NACWA also agreed to share the legislation it is drafting that promotes a watershed-based approach to handling 21st Century water challenges in order to get a broader water sector-wide discussion on this issue.

NACWA, Fellow Environmental Groups Discuss Potential Collaboration

NACWA met Dec. 10, 2008 with representatives from American Rivers, NRDC, and Clean Water Action for a broad-ranging discussion on potential areas for collaboration in preparation for the incoming Obama administration and the 111th Congress. Several key initiatives that were very active last year will be again be prominent, including legislation on sewer overflow monitoring and notification, reauthorization of the Beaches Environmental Assessment and Coastal Health (BEACH) Act, and on Clean Water Act jurisdiction. NACWA’s efforts to improve these pieces of legislation last year have put the association in a good position to be able to work with the activist community on these issues as they are taken up by Congress in 2009. NRDC remains interested in finalizing the proposed blending guidance based on an agreement negotiated with NACWA and also wants to work with the Association on moving once again toward a comprehensive policy for sanitary sewer overflows (SSOs).

The issue of nutrients remains contentious, given NRDC’s petition to have EPA set secondary treatment standards for nutrients and NACWA’s documented concerns with this approach. Both groups, however, agreed this was a major issue that required consistent dialogue moving forward. There was also broad agreement that wastewater treatment needed to be accounted for in climate change legislation, including increasing funds for adaptation efforts as well as research and development. Additionally, these groups and NACWA will be working closely together on ensuring that wastewater infrastructure projects, including green infrastructure projects, are a significant component of the stimulus package. NACWA will continue meeting with these groups on a regular basis to ensure that the clean water community’s concerns are advanced.

Meetings and Conferences

NACWA Web Seminar Focuses on Economic Downturn

More than 150 member representatives logged onto NACWA’s Dec. 11, 2008 web seminar on the effects of the economy on the nation’s clean water utilities. NACWA President Marian Orfeo, Director of Planning & Coordination for the Massachusetts Water Resources Authority in Boston moderated, The Economic Downturn – Impacts & Opportunities, which focused on the impacts and potential opportunities for the nation’s clean water agencies resulting from the economic downturn. The featured speakers were two municipal finance experts, John Friar, Executive Professor of Entrepreneurship at Northeastern University in Boston, Mass., and Tom Paolicelli, Executive Director for the New York City Municipal Water Finance Authority, N.Y. Friar discussed his research on the economic downturn citing data from a recent NACWA survey that many municipalities are finding difficult to refinance existing projects and are delaying capital improvement projects as well as hiring new employees. He also noted with many building projects on hold, municipal building projects may reap the benefits of the economic downturn. Friar is working with NACWA on a white paper on his survey findings due out later this month. Tom Paolicelli discussed how New York City is coping with the downturn, acknowledging that “. . . the disconnect between the treasury and the municipal market is huge.” Paolicelli also surveyed the web seminar participants on how agencies plan to pay for capital projects and their needs to access to the bond market in 2009. Forty-one percent of those responding reported that they would need to access revenue bonds in 2009 for capital projects.

Register Today for NACWA’s Winter Conference

NACWA’s 2009 Winter Conference, Controlling Chaos: Managing Capital Costs in an Uncertain Economic Environment, scheduled for Feb. 3 - 6, 2009, at the Westin Buckhead Atlanta in Atlanta, Ga. will build upon the web seminar discussion. The conference will explore the drivers requiring clean water agencies to re-examine how they prioritize capital spending and examine the factors critical in improving the efficiency of current spending. Registration and the conference agenda are available online at www.nacwa.org/09winter.