» Clean Water Current Archive

December 21, 2012

NACWA, Broad Coalition Urge President Obama, Speaker Boehner to Maintain Tax Exemption for Muni Bonds

NACWA has joined with a broad coalition of municipal and state organizations on a letter sent this week urging the White House and Congressional leadership to keep tax exempt municipal bond status intact during fiscal cliff and subsequent budget negotiations. The coalition includes the Government Finance Officers Association, the National League of Cities, the U.S. Conference of Mayors, the National Governors Association and over a dozen other groups.  The Dec. 20 letter sends a strong message, stating that:

For 200 years, municipal bonds have assisted states, cities, and counties in financing their infrastructure needs, including roads, bridges, schools, hospitals, transit systems, public power systems and utilities, and other vital projects serving the public good.  Given the tremendous overhang of unmet needs throughout the country, policymakers should encourage, not limit, financing for critical infrastructure projects, which will also create much-needed jobs.

With the federal government now focused on measures to raise revenue to avoid the fiscal cliff and comprehensive tax reform poised to be a major issue for the 113th Congress, there is a renewed focus on the possibility of eliminating tax exempt status for municipal bonds. A growing array of organizations in Washington, DC, are becoming increasingly vocal in demanding that Congress and the Administration maintain tax exempt status.  As the letter points out, uncertainty over tax exempt status “would have a chilling effect on infrastructure investments and jobs because the approximately $40 billion annual cost from the municipal bond interest exclusion leverages $400 billion in new infrastructure projects annually,” with significant funds being used for wastewater and stormwater projects.  

NACWA will continue to make the protection of tax exempt municipal bond status a top advocacy priority going into 2013 and will keep members apprised of any developments. If you have any questions regarding this issue or any data regarding the impacts on your utility if tax exempt status were to be eliminated, please contact Adam Krantz at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

NACWA Submits Brief Supporting Utility Member in Stormwater Fee Litigation

NACWA filed a brief Dec. 19 with the Missouri Supreme Court supporting its public agency member the Metropolitan St. Louis Sewer District (MSD) in a legal challenge to the utility’s municipal stormwater fee program.   The brief argues that stormwater use fees calculated based on impervious surface – such as those used by MSD and being challenged in the litigation–  properly qualify as valid service charges and not taxes.  The brief also argues that determining stormwater fees based on impervious surface area is becoming the industry norm because it is the most equitable way to bill for the increase in stormwater runoff as a result of urban development.   The brief provides a national perspective on this issue, explaining why impervious surface stormwater fees should not be considered taxes, and highlights a number of state courts around the country that have already examined and upheld similar types of stormwater fee programs as valid service charges.

NACWA has previously supported MSD in this litigation, including a similar brief filed last year with a lower state appellate court.  The lower court unfortunately ruled earlier this year against the fee program, finding it to be an illegal tax.  MSD then appealed to the state Supreme Court, with NACWA assistance , and the Supreme Court agreed to review the case.  The litigation stems from a challenge filed to the fee program by some MSD ratepayers.  

The issues involved in this litigation have significant national implications for other municipal stormwater utilities using a similar fee structure.  NACWA is participating in the case to push back against any negative legal precedent regarding the use of impervious surface as a basis for stormwater charges.  The American Public Works Association (APWA), the National Association of Flood & Stormwater Management Agencies (NAFSMA), and the Association of Missouri Cleanwater Agencies (AMCA) also joined NACWA on the brief.  Additional information on the case is available on NACWA’s website.

Money Matters Task Force Discusses Integrated Planning, NACWA Legislative Efforts

NACWA’s Money Matters Task Force met this week via conference call to discuss the latest on implementation of EPA’s integrated planning framework and NACWA’s ongoing advocacy on the framework and related issues.  A number of lessons-learned have begun to emerge since the framework was finalized.  For example, several communities have raised concerns regarding the timing of stakeholder involvement and when to involve the key regulatory agencies as well as the public in the planning process.  NACWA is working with the Association of Clean Water Administrators (ACWA) to plan a series of regional workshops, similar to the workshop NACWA and ACWA hosted for Region 3 on October 24, to address these and other implementation-related issues.

The Task Force was also updated on a number of ongoing activities targeting EPA’s financial capability assessment practices, including a new Targeted Action Fund initiative that NACWA is undertaking and efforts by the U.S. Conference of Mayors to seek additional clarification on elements of EPA’s 1997 guidance on financial capability.  The Task Force also discussed NACWA’s legislative activities as they relate to integrated planning and other Money Matters programs.  NACWA is continuing to explore potential Congressional funding to support a pilot program for communities interested in using EPA’s integrated planning framework and to ensure state water agencies have the resources they need to review draft plans.  NACWA is also working with Senator Sherrod Brown’s (D-Ohio) office to codify integrated planning through legislation and to ensure it is a viable option for the clean water community into the future.

Steering Committee Works on Final Draft of the Utility of the Future Blueprint for Action

The NACWA/Water Environment Research Foundation/Water Environment Federation joint Steering Committee met this Wednesday to discuss the final draft of the Water Resources Utility of the Future (UOTF) Blueprint for Action.  This Steering Committee is tasked with providing high-level oversight to ensure that the Blueprint achieves the goals set out in the proposal framing the project. NACWA is represented on the Steering Committee by Tom Sigmund, NACWA Utility Management Committee Chair, with the Green Bay Metropolitan Sewerage District, and NACWA President Suzanne Goss, with Jacksonville JEA.

During the call on Wednesday, the Steering Committee agreed that the final Blueprint had met all of the goals set out by the project proposal and members suggested several final edits and expressed their support for the final document.  The Steering Committee discussed the Blueprint in a larger context as well, seeking to ensure its Executive Summary would serve as a persuasive piece for key audiences, including the utility community, the Administration, and members of 113th Congress.   The new draft also underscores the importance of outlining the adaptation and resiliency challenges utility leaders face in the wake of Hurricane Sandy and actions the federal government can take in partnership with municipalities and states in response.

The final draft of the Blueprint, which is approximately 40 pages long, will be reviewed one final time by the UOTF Task Force – the body tasked with providing technical input into the report - in early January 2013.  The publication is anticipated to be finalized and distributed later that month. NACWA will also be preparing a more easy-to-read trifold highlighting the advocacy items set out in the Blueprint as a handout for policymakers and key stakeholders.

NACWA Supports Proposed Stay of Florida Water Quality Standards, Reviews Two Related Federal Rules

NACWA submitted comments this week supporting EPA’s proposed stay of the effective date for portions of its Water Quality Standards for the State of Florida’s Lakes and Flowing Waters (inland waters rule), including most of the provisions finalized on December 6, 2010 that were to take effect January 6, 2013.  EPA is seeking to extend the effective date to November 15, 2013, in order to gain additional clarity on the implementation of rules recently developed by the Florida Department of Environmental Protection (FDEP) and to evaluate an administrative challenge that raises uncertainty over whether the EPA-approved state rules will go into effect.  NACWA is also currently reviewing two other related EPA proposals. One addresses the remanded provisions of the inland waters rule, and the other proposes water quality standards for Florida estuaries, coastal waters and South Florida inland flowing waters.  NACWA will be reviewing both rules to provide more information to the membership after the New Year, and will be working with its members in Florida to develop comments as necessary.

EPA Denies NRDC Secondary Treatment Petition in Key Victory for Clean Water Agencies

Consistent with NACWA’s recommendations, EPA issued on Dec. 14 a strongly-worded denial of the Natural Resources Defense Council’s (NRDC) 2007 petition that sought to modify the secondary treatment regulations to include nutrient removal.  Citing the technical constraints and costs associated with uniform national limits, EPA’s December 14 denial letter reaffirms the Agency’s preference for controlling nutrient discharges from POTWs through the water quality-based provisions of the Clean Water Act.  The decision is a major victory that will save public agencies tens of billions of dollars annually and ensures that an unworkable one-size-fits-all approach is not the solution to the nutrient challenge.  NACWA has led the advocacy efforts on this issue since 2007 and encouraged the Agency to take the exact steps laid out in the December 14 denial.  Advocacy Alert 12-14 provides a brief summary of the denial and its importance to the Nation’s clean water agencies.

Join NACWA in Miami to Explore the Innovative Approaches Shaping the “Utility of the Future” Today

Today’s utility leaders are not satisfied with predicting the future – they are creating it.  NACWA’s 2013 Winter Conference, Tomorrow’s Clean Water Utility…Is the Future Already Here?, February 3-6, in Miami, Fla., in collaboration with the Water Environment Federation (WEF) and the Water Environment Research Foundation (WERF) will explore the clean water utility of the future.  Municipal case studies will focus on how early adopters of “utility of the future” (UOTF) initiatives are achieving success stories, overcoming roadblocks, and adopting innovative technologies and practices.  The program will also feature robust discussions on how to make the business case for the type of innovations contemplated under the UOTF umbrella.

A detailed program and other information on making your plans are available on NACWA’s website.  The Hyatt Regency Miami Hotel is offering a room rate of $229 per night (single/double), plus applicable taxes.  Reservations must be made by Sunday, January 13, 2013, to receive the special rate.  To ensure a hotel room, contact the Hyatt Regency Miami Hotel at 305.358.1234. Be sure to identify yourself as a NACWA attendee.

Happy Holidays from NACWA!