» Clean Water Current Archive

March 15, 2013

NACWA Seeks Input from Members Using Build America Bond Program, Weighs In on Tax Exempt Status of Municipal Bonds

NACWA has learned from one of its members that the across the board cuts to federal discretionary spending that went into effect on March 1, known as sequestration, are directly impacting the utility’s budget due to a decrease in the level of federal assistance that was originally promised under the Build America Bond Program. Direct Payment Build America Bonds (DPBABs), one of two types of bonds offered under the program, provide a federal subsidy of 35 percent of the interest paid on the bonds. The bond issuer, in this case a NACWA member, is the recipient of the subsidy through direct payment. The BAB interest subsidy helped to make such financing more cost-effective than traditional tax-exempt revenue bonds. However, with sequestration in place, the federal subsidy payments have now been reduced. NACWA is interested in hearing from any members that expect this or other impacts from sequestration to their use of Direct Payment BABs. Any information you can provide regarding the impact for your utility would be helpful. For example, the member that alerted NACWA to this issue is anticipating an annual impact of $236,881 in future fiscal years, which would necessitate an annual budget (rate) increase of 0.8 percent in 2013 and 1.6 percent in future years. Please contact Chris Hornback at This e-mail address is being protected from spambots. You need JavaScript enabled to view it with any information on this issue.

Also as a result of the current budget environment, there is increasing talk about scaling back or eliminating tax exempt municipal bond status. In addition to identifying this as a top advocacy priority in Congressional testimony this week (see related article), NACWA is also part of a broad and impressive coalition of groups seeking to ensure that Congress and the Administration do not look to tax exempt municipal bond status to generate revenue. This Coalition sent a strongly worded March 8 letter  to the leaders of the Congressional Budget Committees expressing the critical importance of tax exempt municipal bonds to enhance infrastructure, create jobs and spur economic growth. As the letter states, “it is estimated that if the proposal to cap the exemption on municipal bonds at 28 percent had been in place over the last 10 years it would have cost state and local governments an additional $173 billion in interest costs. Total repeal of the exemption over that time would have cost state and local governments over $495 billion in additional interest costs.” NACWA will continue to advocate aggressively on this priority issue and will keep members informed of any developments.

NACWA Hosts Successful Region 7 Integrated Planning Workshop

NACWA is partnering with EPA, the Association of Clean Water Administrators (ACWA), and the Water Environment Federation (WEF) to offer a series of Integrated Planning (IP) workshops around the country. On March 12 more than 70 key stakeholders, including NACWA members, EPA staff, and state regulators, met for the Region 7 workshop in Olathe, Kansas. Iowa, Nebraska, Missouri, and Kansas are just beginning to put EPA’s IP framework to use, but attendees actively participated in a constructive discussion on getting started and on lessons learned from those already involved in the IP process.

During the workshop, EPA explained that its IP framework was above all about providing communities with greater flexibility in planning their clean water investments, and that the Agency’s role in the process was to assist the state regulators however possible to get plans off the ground. There was in-depth discussion on how to document stressors outside Clean Water Act obligations in the plan (e.g., Safe Drinking Water Act and Clean Air Act obligations, among others); the pros and cons of using a permit versus an enforcement mechanism to house the plan; and possible implications of the upcoming stormwater rule on plan development. Fluid communication between EPA, regulators and the utility, while engaging other stakeholders and educating public and local environmental groups, are all essential to Integrated Planning success.

NACWA thanks all the attendees for their interest in the Region 7 workshop and looks forward to upcoming workshops in Region 10, hosted in conjunction with the Oregon Association of Clean Water Agencies (ORACWA) in Portland, Ore., on April 3, and Region 5 in Indianapolis, Ind., on May 1. NACWA encourages members in Region 5 that are interested in pursuing integrated plans to attend and register on NACWA’s website. Due to limited space, Region 10 registration is now closed.

Howard Neukrug Testifies for NACWA at House Appropriations Subcommittee Hearing

Howard Neukrug, Water Commissioner of the Philadelphia Water Department and a member of NACWA’s Board of Directors, testified  on behalf of NACWA at a House Appropriations Subcommittee on Interior, Environment and Related Agencies oversight hearing examining the financing needs of water and wastewater infrastructure and budgetary needs for the Drinking Water and Clean Water State Revolving Fund Programs. The hearing was chaired by Congressman Mike Simpson (R-ID) who touted in his opening statement the idea of establishing a clean water trust fund and his co-sponsorship with Earl Blumenauer (D-OR) of legislation to do so.

In his testimony, Neukrug advocated for a continued robust federal commitment to providing financial support for meeting obligations under the Clean Water Act and encouraged the Subcommittee to avoid any reduction or elimination of the tax exempt status for municipal bonds (see related story). He also discussed policy proposals that can help communities prioritize infrastructure investments to ensure the greatest water quality outcomes, and pointed to his agency’s green infrastructure program and innovative financing efforts as the type of new thinking that is transforming the landscape of the clean water sector. Additional witnesses included representatives from EPA, the Government Accountability Office, the U.S. Water Alliance, the American Water Works Association, and the National Association of Water Companies. During the hearing, witnesses participated in a robust discussion on various potential federal actions that would help the water sector, including loan guaranty programs, public private partnerships, a clean water trust fund, and incentive-based approaches in line with the water resources utility of the future initiative. Neukrug’s testimony is available here.

Senate Budget Proposal Would Cut EPA Funding

Following last week’s passage of the House of Representative’s Continuing Resolution (CR) to fund the government through the end of the year, the Senate Appropriations Committee released a substitute proposal on Monday which includes deeper cuts to the Fiscal Year 2013 budget for EPA than what is called for by the House proposal. Specifically, the proposed Senate CR would cut a total of $136 million from EPA accounts over and above the reductions contained in the House proposal. Specifically, the House proposal would reduce the Clean Water State Revolving Program to $1.467 billion and the Senate package would reduce it to $1.451 billion from last year’s appropriation of $1.468 billion. The Senate is expected to complete work on its CR package next week, at which point the package will need to be reconciled with the House package and enacted prior to the March 27 expiration deadline for the current CR. The sequestration cuts that took effect on March 1 are in addition to the cuts contained in the proposal and would further reduce the CWSRF program account by 5.1%. Both House and Senate leaders have pledged to avoid a government shut-down so it is expected that a CR will be completed by the deadline. NACWA will continue to track developments on the Federal budget and its impacts on the water program as they occur.

NACWA Briefs EPA Leadership on Wet Weather Proposal

NACWA staff met with Nancy Stoner, Acting Assistant Administrator for Water and Randy Hill, Acting Director for the Office of Wastewater Management, to provide them with a detailed briefing of NACWA’s legislative wet weather proposal and the flexibilities it would provide to wastewater treatment utilities and collections systems for managing peak wet weather events should Congress enact it. NACWA has also begun discussions with key members on Capitol Hill about the proposal and shared it with various stakeholder groups around town. NACWA believes the proposal provides a consistent framework for managing wet weather as is required for managing dry weather flows and will receive serious consideration from policy makers in D.C.

Clearing the FOG at the NACWA Pretreatment & Pollution Prevention Workshop

Since fats, oils, and greases (FOG) continue to plague sewer systems across the country, a panel at the NACWA 2013 Pretreatment & Pollution Prevention Workshop, May 15-17 in Portland, Oregon, will focus on this persistent issue. In Clearing the FOG: Different Strategies for Different Sources, panelists will discuss the strategies used to reduce FOG from both domestic and commercial sources. Helen Cantril Dulac will give a presentation on the Dallas Water Utilities’ award-winning program to “Cease the Grease” program that encourages residents to recycle their grease and increase the energy produced at the wastewater treatment plant. Bob Baumgartner from Clean Water Services in Hillsboro, Oregon, will discuss how utilities worked with the Oregon State Plumbing Board on new FOG requirements for food service establishments, and how new education and outreach programs are being developed.

A complete agenda for the Workshop – as well as registration, hotel, and travel information – are available on NACWA’s website. The group rate of $155 per night at the DoubleTree by Hilton Portland is available until Tuesday, April 23, and reservations may be made by calling the hotel at 503/281-6111 or by visiting the hotel website.

This Week on The Water Voice: Member Agencies See Green Infrastructure as a Key Tool

This week, The Water Voice explored several green infrastructure projects NACWA members have implemented or are planning to implement. Communities are increasingly turning to green infrastructure to reduce or eliminate runoff from stormwater and to work in tandem with more traditional grey infrastructure to meet Clean Water Act goals. The results from these projects include improved water quality, flood mitigation, reduced urban temperatures, decreased energy costs, and other environmental, social, and economic benefits. Although by no means comprehensive, the blog post includes several brief summaries of and links to several green infrastructure initiatives, such as Philadelphia’s Green City, Clean Water program and the Milwaukee, Wis., Green Milwaukee project. NACWA encourages members to share their green infrastructure story either by using the comments section of the blog or by This e-mail address is being protected from spambots. You need JavaScript enabled to view it us directly.

NACWA accepts and encourages submissions for blog posts for The Water Voice from members on topics of concern to the clean water community. In addition to following NACWA’s social community policy, articles should be no more than 550 words long and should include a photo or other graphic. If you have questions about how to submit a blog post, please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it (202.530.2758).

Kopocis Renominated for EPA Assistant Administrator for Water

President Obama again nominated Kenneth J. Kopocis to serve as EPA Assistant Administrator for Water. Kopocis was previously nominated for this position by Obama in June 2011 but his nomination has been blocked by Republican Senators. Kopocis is currently serving as a senior policy adviser in EPA's Office of Water and NACWA has enjoyed a productive working relationship with him throughout his years of service in Congress and at EPA. Nancy Stoner will continue to serve as acting Assistant Administrator for the Office of Water until his nomination receives Senate confirmation.

In a related development, Randy Hill, the current Acting Director of the Office of Wastewater Management (OWM), has accepted an appointment to EPA’s Environmental Appeals Board (EAB). He will be leaving OWM in April. EPA is currently in the process of seeking a permanent director for OWM to fill the spot left vacant by Jim Hanlon’s retirement. NACWA wishes Randy well in his new post with the EAB.

Join NACWA in D.C. for the 2013 National Environmental Policy Forum!

NACWA is gearing up for its National Environmental Policy Forum, held April 21 – 24 at the Washington Marriot in Washington, D.C. The Policy Forum will feature high level policy and strategic discussions as well as NACWA committee meetings on the country’s most urgent clean water issues, including integrated planning and affordability, improving utility resiliency to extreme weather, increasing energy generation in the wastewater sector, and innovative financing for clean water investments.

Original Clean Water Act Authors Featured at Policy Forum

This year’s Utility Executive Forum will focus on the early Clean Water Act – Congressional intent, implementation, and interpretation – and how the Act could be improved to ensure another 40 years of continuous water quality improvement. We’ll hear from authors of the original bill, as well as current practitioners about what policy reforms should be considered to strengthen the Act’s effectiveness and support efforts by utilities to transform themselves into the water resources utilities of the future.

Make Plans Today to Visit Your Congressional Delegation

NACWA has set aside time on Tuesday, April 23rd from 2:00 – 4:30 pm for Members to meet with their Members of Congres¬s to discuss the priorities and challenges you and the clean water community are facing. Policy Forum attendees are encouraged to arrange these critical meetings but NACWA is certainly happy to help with these arrangements and, to the extent possible, join you on these visits. For more information on how to schedul¬e meetings, please visit NACWA’s Congressional Toolbox and if you need any assistance, please contact Hannah Mellman at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Online Registration, an agenda , and additional information are available on NACWA’s website. Also be sure to reserve a room at the Washington Marriott before April 1st to ensure the special conference room rate.

NACWA Calls for Nominations for Excellence in Management Awards

NACWA’s Excellence in Management Recognition Program applications are now available for public agencies so apply today. The Program is a unique way to celebrate those Member Agencies who have made a commitment to implementing sustained, successful programs that address the range of challenges faced by public clean water utilities in today’s competitive environment. Applications are considered in line with the degree to which they fulfill the Ten Attributes of Effectively Managed Water Sector Utilities as well as the recent additional consideration titled Resource Efficiency & Protection Activities. The Program has also been enhanced by having Platinum, Gold, and Silver recognition for both large and small utilities. For more information on the Excellence in Management Recognition Program, visit the Excellence in Management page. Applications are due by April 12, 2013.