ARCHIVE SITE - Last updated Jan. 19, 2017. Please visit www.NACWA.org for the latest NACWA information.
ARCHIVE SITE - Last updated Jan. 19, 2017. Please visit www.NACWA.org for the latest NACWA information.
August 2, 2013 EPA Plans New Financial Capability Framework to Outline Available FlexibilityNACWA met with EPA water and enforcement office staff on Tuesday to discuss the Association’s most recent financial capability paper, The Evolving Landscape for Financial Capability Assessment – Clean Water Act Negotiations and the Opportunities of Integrated Planning , and an upcoming EPA policy statement on financial capability. While EPA stood firm that it will not revise its 1997 financial capability guidance – or move away from its matrix calculations as a baseline for negotiations – the Agency acknowledged that there is a need for clearer direction on the extent to which utilities can supplement, or potentially deviate from, the guidance. The Agency is working on a Financial Capability Framework to further outline the flexibility it believes is available to utilities. The Framework is anticipated to provide additional information on, and justification for, what is affordable. It will also serve as a complement to the Agency’s Integrated Planning Framework. EPA expects to have a draft of the Framework in early September and plans to share it with NACWA at that time. EPA will also be discussing the draft Financial Capability Framework with the U.S. Conference of Mayors at an October meeting and hopes to issue it in final form by the end of the year. During the meeting EPA indicated that the cash flow forecasting approach laid out in NACWA’s most recent paper will be included in the new Framework as one of the options available to utilities. The Framework is anticipated to rely on the 1997 guidance as the foundation for federal government negotiations; however, EPA acknowledged that many existing consent decrees are based on assessments like cash-flow forecasting, not the 1997 matrix. Examples of where this has been done successfully may be included in the Framework to highlight the flexibility EPA intends to provide. It is hoped that this new Framework will demonstrate that when communities have the knowledge and willingness to offer an alternative approach – they have been, and can continue to be, successful. NACWA made the point that the flexibility EPA believes is already in its guidance is not really acknowledged ‘out in the trenches’ during real negotiations. The Agency is optimistic that this new Framework – which will be sent to Regional Administrators as a memo from the Office of Water and Office of Enforcement & Compliance Assurance – will help to improve negotiations. NACWA will alert the membership when it receives a copy of the new Financial Capability Framework. Biogenic Emissions Coalition Discusses Path Forward after Court Vacates DeferralNACWA met this week with other members of the Biogenic CO2 Coalition to strategize how to move forward in the wake of the July 12 U.S. Court of Appeals for the District of Columbia decision to vacate EPA’s three-year deferral of biogenic greenhouse gas (GHG) emissions from Clean Air Act regulation (see July 19 Clean Water Current article for more information). The court ruled that EPA failed to provide legal justification to support its deferral of GHG permitting requirements for biogenic emissions, but did not close the door on EPA’s authority to finalize its rulemaking. The Coalition is continuing to draft a petition for rulemaking to ensure the exemption is made permanent – along with an accompanying technical report – to submit to EPA providing data to support such an exemption. Legal and legislative opportunities that could ultimately lead to a permanent exemption for biogenic emissions are also being explored. To help build the case for an exemption, NACWA is obtaining information from its Air Quality Workgroup on the potential impacts of Title V and Prevention of Significant Deterioration (PSD) permitting on wastewater utilities, when biogenic emissions are included. Association members with any information on the magnitude of their GHG emissions or permitting impacts should contact Cynthia Finley at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Funds for Integrated Planning Pilots Secured in House Appropriations BillThe FY2014 House EPA appropriations bill contains $2 million to establish an integrated planning pilot program. Under the program funding would be provided to selected communities in each EPA region to pursue integrated plans. NACWA was instrumental in securing strong bi-partisan support for the program, as reflected in an April letter written by Representatives Bob Gibbs (R-OH) and Tim Bishop (D-NY), Chair and Ranking Member of the House Water Resources & Environment Subcommittee, urging House appropriators to include funding for the program. While the release of the House EPA appropriations bill is only the first step in a lengthy process to finalize a FY2014 budget, it’s clear that Congress understands the need for, and value of, the integrated planning approach. NACWA Active on Key Funding and Financing ProposalsNACWA continued to weigh in on key clean water funding and financing proposals currently being considered in Congress. They include:
Congress adjourns today for the August recess and will consider these issues in September. In the meantime, NACWA will be meeting with House and Senate staff to discuss these proposals and the importance of continued federal support in helping communities fund and finance their clean water needs – and comply with Clean Water Act requirements. We will provide updates on these meetings and the evolving FY 2014 budget as they occur. NACWA, WEF, WERF Discuss Energy-Water Nexus with EPANACWA, along with representatives from the Water Environment Federation (WEF) and the Water Environment Research Foundation (WERF), met with EPA water office staff on July 29 to discuss ongoing efforts to engage the Department of Energy (DOE) on energy-water nexus issues. NACWA, WEF and WERF, building on their joint Water Resources Utility of the Future Blueprint, have had several discussions with DOE staff on how best to tap into the resources currently available to clean water agencies – and how to increase DOE investment in energy efficiency and energy generation, from both a research and technology deployment standpoint, within the clean water community. EPA and DOE began quarterly meetings on the subject earlier this year. DOE is expected to lay out its plan for working on energy-water nexus issues later this year. During the July 29 meeting, EPA provided a brief summary of its discussions with DOE to date and how the water sector and EPA will want to coordinate as discussions continue with DOE. One of the top challenges identified is developing a more robust and detailed estimate of the energy potential from the water sector. NACWA, WEF, and WERF are engaged in a project that will build on existing WERF research to develop such an estimate by early fall. NACWA’s Targeted Action Fund is supporting this project. The water sector groups and EPA committed to meeting regularly going forward. NACWA’s Blog of the Week:
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Winter Conference
Next Generation Compliance …Where Affordability & Innovation Intersect
February 4 – 7, 2017
Tampa Marriott Waterside Hotel
Tampa, FL