» Clean Water Current Archive

September 23, 2011

NACWA Evaluates Jobs Act, Seeks $10 Billion in Direct Funding for Clean Water

Following President Obama’s release of The American Jobs Act (AJA), NACWA conducted an economic analysis of the AJA, with a focus on the proposed infrastructure bank.  This analysis made it clear that the bank, which would provide $10 billion initially for eligible transportation, energy and water infrastructure projects, would be paid for primarily by removing the tax exempt status from certain municipal bond investments. Specifically, the AJA would bar wealthy investors from using tax-exempt bond interest and other tax exclusions, expenditures and deductions to reduce their income tax rates below 28%.  Unfortunately, this approach would cause the capital costs of NACWA Members that issue municipal bonds to increase, leading to reductions in infrastructure spending in excess of any marginal new funding that might be realized through the proposed infrastructure bank.  The analysis also provided a brief discussion on the AJA’s policy goal of increasing private investment in the infrastructure arena.  Ultimately, the analysis concludes that NACWA members are likely to be better off under current funding and tax policies – and through direct funding for clean water infrastructure programs via the clean water state revolving fund.  Member comments received through Advocacy Alert 11-21 also expressed similar concerns to the infrastructure bank proposal.

With this input in mind, NACWA continued its efforts on Capitol Hill to promote greater spending for clean water and wastewater infrastructure.  NACWA, along with the Water Infrastructure Network (WIN), met with Representative Tim Bishop (D-N.Y.), Ranking Member of the House Subcommittee on Water Resources and the Environment, to discuss the need for a jobs package and the critical need to include $10 billion for direct water infrastructure funding in the legislation.  Representative Bishop has been a long-time friend of the water infrastructure community and offered to introduce an amendment to the AJA that designates $10 billion to water should the bill come before the Transportation & Infrastructure Committee.  NACWA will continue to meet with key members of the House and Senate to ensure this proposal gains maximum support.

NACWA’s Money Matters Task Force Applauds EPA’s Recent Efforts on Prioritization, Continues to Advance Legislation

NACWA’s Money Matters Task Force held a conference call this week to discuss recent developments from EPA on an effort to move forward with a new integrated permitting/regulatory prioritization approach.  At the heart of this discussion was a September 20, 2011 letter from EPA to the U.S. Conference of Mayors committing the Agency to explore integrated Clean Water Act permitting approaches.  In line with previous discussions between NACWA and the Agency,  letter states that “EPA will increase its efforts to work with you and other stakeholders to identify municipal leaders that are committed to developing and implementing timely and effective integrated plans that may serve as a model for the future,”  adding that the Agency looks forward to discussing “opportunities for comprehensive plans that allow municipalities to address all of their Clean Water Act requirements with effective and affordable solutions.”   NACWA has also learned that EPA will be forwarding a memo to its Regional Offices in the near future stating that it is pursuing this effort; however, the details of the substance of this memo are unclear at this time.

The members of the Money Matters Task Force felt that the September 20 letter signaled an important willingness on the Agency’s part to consider the type of compliance schedule prioritization and holistic affordability approaches that are at the heart of the Money Matters™ campaign.  At the same time, the members agreed that EPA had not yet provided any specific objectives or hard deadlines for action – making it critical to continue with an aggressive push on behalf of our legislation.  As such, NACWA will continue to pursue its goal of a bipartisan introduction in both the House and Senate before the end of the calendar year.

In a related development, at the request of EPA Assistant Administrator for Water, Nancy Stoner, several NACWA member agency leaders will meet with Stoner and other key EPA officials in Milwaukee on October 3 to begin a technical discussion on what an integrated permit would entail.  NACWA is also continuing to add stakeholder groups in support of its regulatory prioritization campaign and is seeking a commitment from EPA to sign onto a statement of intent with key stakeholders, including NACWA, committing the Agency to swift and significant action on the integrated permitting/regulatory prioritization front.

NACWA’s Security & Emergency Preparedness Committee Meets to Discuss Current State of Water Sector

NACWA’s Security & Emergency Preparedness Committee conducted a web-based meeting this week to discuss the progress made by the water sector in the ten years following the September 11, 2001 terrorist attacks.  The meeting featured several guest presenters, beginning with Kevin Morley of the American Water Works Association (AWWA), who discussed the ANSI J-100-10 Standard for Risk and Resilience Management of Water and Wastewater Systems that AWWA helped to develop, along with input from several NACWA Members.  Curt Baranowski from EPA’s Water Security Division then gave a presentation on the Agency’s consideration of potential upgrades to VSAT and other vulnerability assessment tools based on the J-100-10 standard.  EPA is also developing the Water Health and Economic Analysis Tool (WHEAT) for wastewater utilities, including pilot testing at two NACWA member agencies.  An update on the current status of Water and Wastewater Agency Response Networks (WARNSs) was given by John Whitler, also of EPA’s Water Security Division.

A case study provided by Michael Hornbrook, Chief Operating Officer of the Massachusetts Water Resources Authority (MWRA) and a NACWA Board Member, generated significant discussion among the Committee members.  The case study, “Planning, Preparation, and Practice Payoff: When the ‘Event’ Becomes Reality,” detailed MWRA’s response to when 10-foot-diameter coupling for drinking water pipes broke last year, resulting in a three-day boil water order for 30 communities.  This event provides an excellent example of how a water utility should implement a comprehensive emergency response program that includes other agencies.

Presentations from the meeting are available on NACWA’s website.  The Security and Emergency Preparedness Committee will meet in person at NACWA’s 2012 Winter Conference, February 12-15, in Los Angeles, and will hold several web meetings throughout the year.

Save the Date for NACWA’s Hot Topics Breakfast at WEFTEC 2011

NACWA members should plan now to attend the Association’s annual Hot Topic Breakfast on Tuesday, October 18 at WEFTEC 2011 in Los Angeles.  Join us from 8:00 – 10:00 am in Platinum Ballroom Salons F-H at the J.W. Marriott at LA Live for breakfast, remarks from key EPA officials, and a wide-ranging discussion of issues critical to your utility.  Additional information on this complimentary event will be forwarded to the membership next week.  We look forward to seeing you there!