» Clean Water Current Archive

May 31, 2013

New Financial Capability White Paper Highlights Opportunities of Integrated Planning & Recent Consent Decree Negotiations

NACWA’s new white paper The Evolving Landscape for Financial Capability Assessment – Clean Water Act Negotiations & the Opportunities of Integrated Planning explores the current opportunities for more rational financial capability assessment. The Association has long advocated for wholesale revision of EPA’s 1997 guidance on financial capability to incorporate a more holistic, prioritization-based approach that looks at a range of indicators to assess the economic and environmental soundness of a particular investment. With the release of its Integrated Planning Framework in June 2012, EPA has acknowledged the need for greater prioritization for Clean Water Act (CWA) programs but, unfortunately, continues to rely on the outdated 1997 guidance to assess the financial capability of communities to make the needed CWA investments. NACWA’s new white paper outlines how adopting a revenue forecasting approach – in place of EPA’s existing dual indicator matrix – will better enable the type of prioritization envisioned by the Integrated Planning Framework. In addition, recent developments regarding financial capability during consent decree negotiations have provided further opportunities for utilities to use new approaches that deviate from or dispense with EPA’s matrix calculations. NACWA is working to set up a series of meetings with EPA to discuss financial capability and the new paper and will share updates as they occur.

NACWA Urges Congress to Address Sequestration Impacts on Build America Bonds

In response to Member Agency concerns over sequestration-related cuts to the federal subsidy payments on Build America Bonds (BABs), NACWA sent a letter to Congressional leaders of both House and Senate Budget and Finance Committees urging them to address the issue during budget negotiations. Several NACWA members who issued Direct Payment BABs did so relying on the commitment by the federal government to provide a federal subsidy payment of 35% on the interest paid to BAB bond holders. When sequestration hit, these utilities saw a reduction of over 8% in the amount of subsidy paid, lowering the total subsidy payment to 26.3%. NACWA heard from members in Missouri, Virginia, Colorado, Hawaii, South Carolina and Texas who are now facing unexpected costs to replace the lost capital that could total several millions of dollars over the full term of the bond. While it is unclear whether Congress will be able to finalize a budget and rectify the impacts caused by sequestration, many stakeholders in Washington are urging them to do so and watching developments closely. The Association will continue advocate on behalf of its members regarding this issue, as well as the broader issue of potential roll-backs to the tax exempt status of municipal bonds, and provide updates as they become available.

Concerns Raised Over EPA Review of Triclosan Use

NACWA submitted comments this week on a draft work plan for EPA’s review of triclosan as a registered pesticide under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). The Association has weighed in on triclosan issues a number of times in the past given the frequency with which triclosan is detected in both wastewater effluent and biosolids. NACWA members continue to express concerns over the potential environmental impacts of triclosan in wastewater and biosolids, including its potential harm to the micro-organisms used to treat wastewater. Though triclosan is not currently subject to Clean Water Act regulation, its presence in wastewater may contribute to failure of whole effluent toxicity (WET) tests, resulting in substantial costs for utilities. NACWA’s comments on the registration review focused on the need for a more comprehensive evaluation of the uses of triclosan, and exposure pathways under FIFRA, than is currently outlined in the draft work plan. As the Association has done in the past, NACWA’s May 28 letter also stressed the need for a more coordinated federal effort to evaluate all triclosan uses, including those not covered by FIFRA.

Utility of the Future Concepts Discussed with Key DOE Staff

NACWA met this week with a Department of Energy (DOE) official to discuss the growing attention energy-water nexus issues are getting within the Department. While much of the focus is currently on the water needs of energy producers – including the role that wastewater treatment plant effluent can play in providing a sustainable source of cooling water for these processes – it is also clear that the issues of energy conservation and production at wastewater treatment plants is an area receiving increased DOE attention. The fact that there is DOE staff dedicated to energy-water nexus is a recent development and demonstrates the opportunity in this arena to partner with DOE and EPA on energy-related projects. DOE staff specifically mentioned the availability of assessment centers that could work at no cost with interested utilities to conduct energy efficiency assessments, as well as the potential for partnerships on innovative technology development between manufactures and the water sector. NACWA shared its Water Resources Utility of the Future . . . A Call for Federal Action document with DOE. This initial discussion constitutes the first of what will be many meetings to inform the Department of potential benefits in the areas of energy independence and reduced greenhouse gas emissions that the water sector can provide given a stronger partnership between the public utility sector and DOE.

Summer Conference to Highlight Key Issues Facing Utilities Today & In the Future

NACWA’s Summer Conference & 43rd Annual Meeting, Managing & Financing the Resilient Clean Water Utility, July 14 - 17 in Cincinnati, will feature presentations on the management and financing approaches utilities are putting in place as they work to establish a more resilient business model founded on integrated financial and management practices, systems and processes adapted for this “new normal”. The transformational change taking place within the clean water community has its roots in efforts to improve the management of clean water utilities and can be traced back to early initiatives to become more competitive and sustainable. These sustainability and enhanced utility management efforts have taken on new and added significance as the clean water community faces what will likely become the “new normal” – ongoing pressure from economic uncertainty, reductions in water use (and the resultant decline in revenues), weather variability and other factors. Conference sessions will explore the growing role of innovation in utility management, as well as the changing landscape of municipal bond and rate-based financing.

A detailed program and other information are available on NACWA’s website. The Hilton Cincinnati Netherland Plaza is offering a room rate of $160 per night (single/double), plus applicable taxes. Reservations must be made by Monday, June 21, 2013, to receive the special rate. To ensure a hotel room, contact the Hilton Cincinnati Netherland Plaza at 513.421.9100. Be sure to identify yourself as a NACWA attendee.

Security & Emergency Preparedness Committee Webinar Planned for June 3

The NACWA Security & Emergency Preparedness Committee will be meeting via webinar on Monday, June 3, from 2:00 to 3:30 pm Eastern. All NACWA members are invited to join the meeting, which will include discussions on cybersecurity, the performance of Water/Wastewater Agency Response Networks (WARNs) after Superstorm Sandy, and the current professional standard for security for utilities. To participate in the web meeting, free of charge, dial 1-877-394-0659 and enter Conference ID 8153732026, and enter http://eventcenter.commpartners.com/se/Rd/Mt.aspx?456775 in your web browser. Please contact Cynthia Finley at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 202-533-1836 with any questions about the meeting.

NACWA Blog of the Week: Key Considerations for Water Quality Trading

NACWA’s Blog of the Week, features a post by NACWA’s Manager of Legislative Affairs, Hannah Mellman, on Water Quality Trading. Around the country, water quality trading continues to gain interest as a viable market-based alternative to addressing water pollution. As a potentially significant buyer of water quality credits, publicly owned treatment work (POTW) or clean water agency participation is a critical piece in getting these markets off the ground. So, what do clean water agencies need to see in a water quality trading market to purchase pollution reduction credits from outside sources like agriculture? New posts are made to NACWA’s blog, The Water Voice, each Wednesday. Subscribe to The Water Voice today, and ensure that you won’t miss a thing!