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This edition of the National Association of Clean Water Agencies’ (NACWA) Legislative Update, current through February 23, 2009, provides information on the activities of the 111th Congress 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

NACWA Efforts Garner $4 Billion in SRF Funds, Improve Provisions in Stimulus Bill

The American Recovery and Reinvestment Act (ARRA) (H.R. 1) was signed into law Feb. 17, providing $787 billion to stimulate the economy.  The infrastructure portion of the package provides $64.1 billion for water resources, roads, bridges, and transit investments, including $4 billion for the Clean Water State Revolving Fund (CWSRF) and $2 billion for the Drinking Water State Revolving Fund (DWSRF) administered by the U.S. Environmental Protection Agency (EPA).  NACWA applauded Congress and President Obama for their efforts in a press release and pointed out that enactment is merely the first step in an ongoing effort to ensure a long-term sustainable source of funding.  Passage of this important piece of legislation represents a significant victory for NACWA and its member agencies, which devoted significant resources to shape the legislation. We are pleased that the final package reflected these efforts.  

Most notably, ARRA mandates that at least 50 percent of the Clean Water and Drinking Water SRF funds be in the form of additional subsidization, including principle forgiveness, negative interest loans, or grants.  NACWA argued strongly that additional subsidization was needed to ensure the money could be put to use as quickly as possible and lobbied hard for this authorization.  In addition, up to 20 percent of the SRF funding will be made available for projects to address green infrastructure, water and/or energy efficiency, and other environmentally innovative water quality improvements to the extent that there are sufficient eligible applications.  NACWA supported this set-aside and advocated on its behalf.  NACWA also worked with key congressional staff to ensure that the final package did not contain a provision that would have required communities to meet affordability criteria in order to be eligible for additional subsidization – a requirement that would have sent most of the funds to small rural communities.  

To expedite use of the SRF funds, the bill waives the mandatory 20 percent State and District of Columbia matching requirements for both Revolving Funds; directs the EPA Administrator to reallocate SRF monies where projects are not under contract or construction within 12 months of the date of enactment; and directs priority funding to projects on State priority lists that are ready to proceed to construction within 12 months of enactment.  There is also a general provision that applies to all infrastructure financed by the bill which requires States to give preference to financing activities that can be started and completed expeditiously, including a goal of using at least 50 percent of the funds on activities that can be initiated within 120 days after the date of the enactment of this Act.  This provision also requires States to use grant funds in a manner that maximizes job creation and economic benefit.

Economic Recovery Bill Creates Additional Opportunities for POTWs

The bill targets several other funding programs for investments in water resources.  ARRA provides $4.6 billion for water resources projects authorized by the Army Corps of Engineers (ACOE), including local community wastewater infrastructure investments.  In 2007, Congress authorized over $23 billion of water resource development projects by the ACOE in the Water Resources Development Act (WRDA).  The recovery package dollars will go a long way in meeting that need.  Any municipality that had a Corps project authorized as part of the 2007 WRDA bill could potentially access a share of this funding.

The legislation targets $3.8 billion for water and wastewater investments for small communities through the Rural Utility Service of the U.S. Department of Agriculture (USDA).  This money will provide additional assistance to small, rural communities that need help financing water and wastewater projects, relieving some degree of pressure for financing these projects primarily through the SRF programs.  Water resource projects within the jurisdiction of the Bureau of Reclamation will receive $1 billion, including $126 million for water reclamation and reuse, $50 million for Central Utah Project Completion Act, $50,000 for the California Bay-Delta Restoration Act, and $60 million for rural water projects.  Finally, $340,000 is provided through the USDA’s Natural Resources Conservation Service for watershed protection and flood prevention.

NACWA Web Seminar, Other Key Tools to Provide Information about Stimulus Funding

NACWA hosted a web seminar Thursday, February 19th to provide information to its member agencies and affiliates about the implementation of the stimulus package.  The web seminar enjoyed more than 150 registered sites with over 950 participants.  NACWA Vice President, Kevin Shafer, executive director of the Milwaukee Metropolitan Sewerage District,  facilitated the free seminar,  Access Granted . . . Getting the Most out of Economic Stimulus Funding, on the funding available for water-related infrastructure and how to best access it.  Presenters included key congressional staffers as well as representatives from EPA, the Association of State and Interstate Water Pollution Control Administrators (ASIWPCA), and the Council of Infrastructure Financing Authorities (CIFA).  NACWA will continue holding these webinars as we move forward on stimulus implementation.

NACWA has also developed a detailed written analysis on implementation details of the recovery package to provide guidance to our members on how to access this new funding.  The guidance document is available to our members on our website.  The guidance provides details of the recovery package and information about how states will set up their programs to distribute SRF funds to communities.  For example, monies distributed in the form of grants may have to meet specific federal requirements not mandated for loans.  The guidance will distinguish among these forms of funding and help communities determine the best financing options to meet their needs.

In addition to these educational tools, NACWA will develop a monitoring and tracking program for wastewater utilities nationwide to ensure that the funds from the ARRA are effectively spent and have the desired economic impact.  NACWA will develop this web-based tracking system within the next several weeks and will provide access to utilities that participate in the stimulus programs as well as to those who seek to participate in it.

While NACWA fought for a higher level of water infrastructure funding, the recovery package is an important first step in re-establishing a sustainable, long-term federal-state-local partnership needed to ensure communities can provide vital clean water services.  Clearly, Congress recognizes the need for a strong federal role in ensuring the viability of our nation’s infrastructure.  NACWA will use this momentum to achieve a dedicated, long-term funding source for clean water infrastructure and will continue to work with its members to urge Congress to reauthorize the CWSRF reauthorization and enact a clean water trust fund in the 111th Congress.

Appropriations and Funding

Status of Fiscal Year 2009 Appropriations Bills

NACWA expects Congress to consider a massive "omnibus" appropriations bill containing the yet-to-be enacted fiscal year (FY) 2009 appropriations bills when the House and Senate return to session on Monday, Feb. 23.  Only three FY 2009 Appropriations Bills were completed and signed into law in 2008 – Defense, Military Construction-Veterans Affairs and Homeland Security.  Most federal departments, including the Department of Interior and EPA, are operating at FY 2008 funding levels under a Continuing Resolution (CR) that expires on March 6th.  The House and Senate Appropriations Committees have reconciled the differences between their respective approaches to the nine remaining bills.  Consideration of the package will likely occur when Congress returns from President’s Day recess.    FY09 appropriations for the CWSRF are expected to increase to $850 billion and funding for the National Biosolids Parternship (NBP) will likely be restored.

NACWA Provides Input on SRF Reauthorization Bill, Water Trust Fund

NACWA continues work with congressional staff on legislation to reauthorize the CWSRF in the 111th Congress.  This term’s legislation will largely be based on the Water Quality Financing Act of 2007 (H.R. 720), which was passed by the House of Representatives in March of 2007.  NACWA focused on this legislation, and continues along with the Water Infrastructure Network (WIN) to provide input into the bill, which contains $14 billion in total funding for the CWSRF; $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.  

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 has provided committee staff with its input on the bill.  No timetable has been set yet for introduction, but NACWA will continue to work with committee staff as the bill advances.  The Senate EPW Committee has not yet begun work on its version of the bill.

NACWA continues to work with Rep. Earl Blumenauer (D-Ore.), a member of the House Ways and Means Committee, who is drafting legislation to establish a federal trust fund for investments in water and wastewater infrastructure.  Rep. Blumenauer is developing draft legislation based on recommendations from NACWA and WIN, and has sought input from NACWA.  The Association also responded on Feb. 11 to a Government Accountability Office (GAO) questionnaire on potential revenue sources for a trust fund.  The GAO is expected to finalize the results of its study on potential revenue sources by March.  This will provide NACWA with a significant boost while working with T&I Committee Chairman Jim Oberstar (D-Minn.), T&I Water Resources and Environment Subcommittee Chairwoman Eddie Bernice Johnson (D-Tex.), and Rep. Blumenauer on a strategy for introducing trust fund legislation 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 forming a working group among its members to help move the proposal through Congress.  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 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 .

Security

House Panel Looks to Include Water, Wastewater Agencies in Chemical Security Bill

House Homeland Security Committee Chairman Bennie Thompson (D-Miss.) will likely  reintroduce legislation by the end of February that is nearly identical to the Chemical Facility Anti-Terrorism Act of 2008 (H.R. 5577 ) considered by the House Homeland Security Committee  in the 110th Congress.  The Committee’s goal is to mark up the new bill in either March or April and to make permanent the chemical facility anti-terrorism standards (CFATS) that sunset in October 2009.  Most importantly, the Committee is seeking to extend the requirements to public water and wastewater facilities, and potentially mandate a switch from current treatment technologies with a focus on chlorine gas usage to “inherently safer technologies” (IST).  NACWA and other water sector organizations continue to oppose provisions in the legislation that would subject water and wastewater utilities to the same requirements as private chemical manufacturers.  

While the upcoming bill is not expected to differ significantly from H.R. 5577, the committee will review it with members of the House Energy and Commerce Committee to incorporate their comments and alleviate any jurisdictional concerns with regard to drinking water facilities, and potentially to wastewater facilities.  NACWA will provide its input to Energy and Commerce as the negotiations unfold.  The bill will likely not be referred to the House Transportation and Infrastructure (T&I) Committee, which oversees Clean Water Act implementation and wastewater infrastructure.  Meanwhile, the Senate has yet to start on a CFATS reauthorization bill, and staff for Senate Homeland Security and Governmental Affairs Committees have said that the current CFATS authorization may have to be extended.

NACWA Works with Water Sector Groups on Strategy for CFATS Bill

NACWA will continue to press the case that drinking water and wastewater agencies are public service providers whose purpose is to protect public health and the environment and therefore should not be regulated in the same way as private chemical manufacturers.  NACWA is finalizing a white paper addressing the unique security, environmental, and public health concerns associated with including wastewater treatment plants under the Chemical Facility Anti-Terrorism Standards (CFATS).  The paper will provide the Association with a series of key advocacy arguments for use on its members’ behalf during discussions on reauthorization of the CFATS legislation, including a discussion on the unique problems associated with applying Inherently Safer Technology (IST) standard to municipal wastewater treatment facilitates.  The document will also emphasize the importance of leaving the choice of disinfection methods to local authorities.

NACWA is also working with other water sector organizations to provide congressional staff with information on how IST and other provisions in the bill could ultimately interfere with their operations and emphasize the importance of maintaining decision-making authority at the local level.  In addition to this joint effort, NACWA is urging various member agencies in targeted congressional districts to contact their representatives on this extremely important issue.

Wet Weather

Sewer Overflow Notification Bill Reintroduced in the House

On Jan. 28, Representatives Timothy Bishop (D-N.Y.) and Frank A. LoBiondo (D-N.J.) reintroduced the Sewage Overflow Community Right-to-Know Act (H.R. 753 ), which would establish a national program for monitoring, reporting, and notification of sewer overflows.  Significantly, the reintroduced legislation is the version of the bill approved by the Senate EPW committee in a substitute amendment at the end of last term and incorporated changes recommended by NACWA.   

NACWA worked for several months with American Rivers and key staff from the House Transportation & Infrastructure (T&I) Committee on the 110th House version of the bill, H.R. 2452.  However, NACWA’s Board raised concerns with the final version of the House bill over the definition of sanitary sewer overflows (SSOs) that could have lead to new liability concerns under the Clean Water Act.  To address this concern, NACWA worked with the Senate EPW Committee to change this provision by having the   SSO definition   moved to a section of the bill that limits its applicability only to the monitoring, notification, and reporting provisions of this particular program.  Basically, it does not amend the CWA’s definition of an SSO.  

While this legislation does not address all of the concerns raised by the clean water community, NACWA believes that it represents a good-faith effort to set up a workable notification and monitoring program.  It is very likely that the bill will move early in the 111th Congress and NACWA will continue to work with American Rivers, Reps. LoBiondo and Bishop, and other stakeholders to ensure that H.R. 753 does not impose any unnecessary costs and burdens on municipalities.