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The National Association of Clean Water Agencies (NACWA) is pleased to provide you with the March 2014 Regulatory Update.  This Update provides a summary of relevant regulatory issues and actions from March 2014.

Top Stories

EPA Releases Draft ‘Waters of the U.S.’ Rule; Maintains Waste Treatment System Exemption

The U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers released a draft rule March 25 addressing the jurisdictional reach of the Clean Water Act (CWA). The draft rule seeks to provide additional guidance on which waterbodies are covered by the CWA’s regulatory and permitting requirements.

The draft rule maintains the waste treatment system exemption that exists in EPA’s current regulations. This is an important development for NACWA utility members because treatment ponds, lagoons, or other waterbodies used as part of waste treatment systems to meet the requirements of the CWA will continue to be exempt from jurisdiction. Additionally, the proposal includes a new, explicit exemption for groundwater from CWA regulation.

NACWA has long advocated for maintaining the waste treatment system exemption and including a clear groundwater exemption in any new jurisdictional rule, and is satisfied that the proposal addresses these concerns. NACWA has also urged EPA to pursue any changes to CWA jurisdiction via a formal rulemaking process, instead of via a guidance document, and is pleased EPA has taken this approach with the current proposal to allow for robust public review and comment.

The Association will be conducting an in-depth review and analysis of the proposal over the coming weeks and will be submitting comments on the draft rule. The rule would expand EPA’s regulatory reach under the CWA, especially for upstream tributaries and wetlands. NACWA will carefully review possible impacts of those changes, and any implications of the proposal for municipal stormwater collection systems. NACWA encourages all interested members to complete their own review of the rule and to forward any thoughts/concerns with the proposal to NACWA staff to help inform our comment effort.
Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

EPA Defers National Stormwater Rulemaking

On March 19, EPA’s Office of Water released an official statement on March 19 that the Agency is deferring development of a national post construction stormwater rule in lieu of more targeted, non-regulatory efforts to help municipalities better control stormwater runoff. In a statement to the press, EPA explained that it is “…updating [its] stormwater strategy to focus now on pursuing a suite of immediate actions to help support communities in addressing their stormwater challenges and deferring action on rulemaking to reduce stormwater discharges from newly developed and redeveloped sites or other regulatory changes to its stormwater program.”

In short, the Agency officially acknowledged what many had already concluded – that a national stormwater rule on the scale EPA was considering was simply not workable at this point. EPA’s announcement was not entirely unexpected, as there had been very little progress on the rule over the past few years, with the Agency missing its most recent draft proposal deadline in June 2013. NACWA has aggressively advocated with EPA on the stormwater rule since 2009, and our advocacy played a part in helping guide EPA to the conclusion that a stormwater rule of this magnitude did not make sense at this time.

NACWA will continue to engage with EPA as it pursues new avenues to address stormwater issues, and will ensure the municipal clean water perspective is actively represented in those discussions. NACWA will also monitor any reactions to EPA’s decision, including any possible legal action from the environmental activist community.

Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Administration’s FY 2015 Budget Proposal Slashes Funding; Scales Back Muni Bond Exemption

The Obama Administration released its FY 2015 Budget request March 4, proposing $581 million in cuts to the Clean Water and Drinking Water State Revolving Fund programs (CWSRF and DWSRF, respectively). The budget proposes funding the CWSRF and DWSRF at $1.018 billion and $757 million respectively, a $431 million and $150 million decrease from the amount Congress appropriated for FY 2014. The EPA’s overall budget request was cut by $300 million to $7.9 billion compared to FY 2014 levels. Click here for a chart that compares proposed discretionary spending levels for EPA's water programs from FY 2012 through the current FY 2015 budget proposal.

This year’s budget request again includes a proposal to limit the amount of tax liability wealthy individuals can claim on interest income received from investments in municipal bonds to 28 percent. The Administration is also proposing to lift the volume cap for private activity bond investments in water infrastructure projects.
NACWA will continue making the case to Congress that maintaining a strong commitment to clean water investments in the FY 2015 budget is critical. Updates will be provided as they become available.

Contact: Chris Hornback at 202/833-9106 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Biosolids

NACWA Briefs Water Office Leadership on Struvite, Recovered Resources

NACWA met with Nancy Stoner, Acting Assistant Administrator for EPA’s Office of Water, and other senior staff on March 18 to discuss the regulatory status of struvite recovered from the wastewater treatment process. At issue is whether a struvite product harvested from the treatment process is subject to the CWA’s Part 503 regulations for biosolids. NACWA, along with Member Agency representatives and staff from a NACWA Affiliate that provides struvite recovery technology, described the process, its final product, and outlined how struvite products differ substantially from biosolids products produced at the treatment plant. Current fertilizer markets where struvite products are being used may not be available if the material was regulated under Part 503, which could negatively impact the payback time for a utility’s investment and make these types of resource recovery operations less attractive for clean water agencies. The issue is further complicated by the fact that not all struvite products are similar in composition and quality. EPA has requested additional information on the process and the quality of the final product to help them as they evaluate the issue, but indicated that they have not yet reached a final decision.

Over the last 4-5 years, a number of clean water agencies have begun to recover phosphorus in the form of struvite from the wastewater treatment process, a practice that has been highlighted by the clean water community in its work on the Water Resources Utility of the Future, as well as by EPA in its recent Innovation Blueprint. Most, though not all, of these struvite operations have been managing the product outside of the Part 503 regulations. Earlier this year, NACWA learned that EPA was working on a policy statement regarding the regulatory status of these materials under the biosolids regulations and initiated discussions with EPA biosolids staff. The March meeting was intended to ensure that EPA’s policymakers were aware of the implications of any decision made and to seek a potential path forward that will not stymie innovation and further resource recovery.

Though struvite was the focus of this initial meeting, NACWA made it clear to EPA that this issue has much broader implications for all resource recovery operations at clean water agencies. NACWA and EPA also discussed how struvite regulation has been approached in some European nations and committed to work closely together as the Agency continues to evaluate its options. The Association will be working to ensure that EPA gets the information it needs and will be continuing discussions with technical and legal staff at the Agency. 

Contact: Chris Hornback at 202/833-9106 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Climate and Resiliency

NACWA Recommends Revisions to Greenhouse Gas Inventory

NACWA submitted comments this week to EPA regarding the Agency’s draft Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2012. The annual inventory provides nationwide estimates of greenhouse gas (GHG) emissions for various sectors, including wastewater treatment, and is intended to be used only for informational purposes. The wastewater treatment category in the Inventory includes publicly owned treatment works (POTWs), septic systems, and industrial wastewater treatment systems, and consistently ranks in the top ten sectors for emissions of methane and nitrous oxide, although wastewater emissions are much smaller in magnitude than for the highest ranked categories.

NACWA has commented on the seven previous Inventories, and EPA has made corrections and clarifications that have been requested by the Association. In this year’s Inventory, EPA responded to a request made by NACWA last year and included more information about the variables used in calculating nitrous oxide emissions for 2012 and previous years. EPA did not make any substantive changes in the emissions calculations in this year’s Inventory prompting NACWA to re-emphasize its comments from previous years. The Association recommended that EPA use a different methodology or a different nitrogen loading rate to calculate nitrous oxide emissions, since loading rates collected by NACWA and available in literature are lower than those used in the Inventory. NACWA also asked EPA to clarify that the Inventory should only be used for informational purposes and not for regulatory requirements, and that industry-wide estimates are not always applicable for facility-level emissions calculations, such as those required in Clean Air Act permitting programs. The Association will evaluate any changes made in the final 2012 Inventory and will continue to monitor all EPA actions related to GHG emissions from wastewater utilities.

Contact: Cynthia Finley at 202/533-1836 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Bureau of Reclamation’s FY 2015 Budget Proposal Focuses on Resilience, Reuse

NACWA participated in a briefing in early March on the Administration’s Fiscal Year (FY) 2015 Budget proposal for the Bureau of Reclamation. Overall, the request proposes funding the Bureau at $989 million, a decrease of $62 million from FY 2014 enacted levels. The proposal includes $52.1 million for the Bureau’s WaterSMART Program, aimed at supporting sustainable strategies to meet the nation’s water needs including water reuse and recycling projects, and increased funds for resilience in the face of changing climate conditions. Within the WaterSMART program, the budget allocates $21.5 million for the Title XVI Water Reclamation & Reuse Program, $1.5 million for a new Drought Response Program and $1.5 million for a new Resilient Infrastructure Program.
NACWA is increasingly engaged in the Bureau’s activities – including projects related to infrastructure resilience and water reuse and recycling – both of which are key components of the Water Resources Utility of the Future initiative. The Association will continue to monitor the Bureau’s appropriations processes and opportunities for members to use these resources.

Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Conferences & Meetings

Register Now for the 2014 NACWA Pretreatment & Pollution Prevention Workshop and Pretreatment Training

For over two decades, pretreatment professionals from across the country have benefited from the utility-focused speakers and panels, as well as the unique networking opportunities, provided by NACWA’s National Pretreatment and Pollution Prevention Workshop. This year’s Workshop, May 14 - 16 in Minneapolis, on topics that will be of priority importance for pretreatment programs in the future, while also doing a deep dive into the issues that are currently affecting these programs. EPA staff will provide the latest updates on National Pretreatment Program initiatives, and panel presentation topics will include controlling dental amalgam, with or without a national rule; reducing pollution – including plastic microbeads – from consumer products; bio-cremation and pretreatment; legal case studies involving hauled wastes; and more. Several informal roundtable discussion sessions will also be held to allow Workshop participants to discuss issues in small groups.

For the first time, NACWA is offering an optional full-day training course on May 13. Geared toward pretreatment professionals in the first few years of their pretreatment careers, the Introduction to the Pretreatment Program for Wastewater Utilities program will cover industrial user identification; permitting industrial users; pretreatment standards; local limits; inspection and monitoring; reporting; data management; enforcement; as well as resources and compliance activities. Separate registration is required for the training course.

An agenda, online registration, and additional information for the Workshop are now available. Be sure to make your plans today!

Contact: Cynthia Finley at 202/533-1836 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Registration Open for Consent Decree Workshop

Registration is now available for NACWA’s inaugural Consent Decree Workshop, April 30 – May 1 in Chicago. This day-and-a-half event, centered on the release of the Association’s new 2014 Wet Weather Consent Decree Handbook, will provide clean water agencies with the most up-to-date consent decree information – including resources to negotiate new decrees or renegotiate existing decrees to best serve their communities and the environment. The Workshop will also provide a forum for candid dialogue and information-sharing on lessons learned, successful negotiation strategies, and how to avoid pitfalls.

Workshop participants will also receive an advance copy of the completely updated and revised Wet Weather Consent Decree Handbook. This publication is the premier resource for municipal attorneys, managers, and staff to use during negotiations over federal or state enforcement actions. Further information on the Workshop, including registration and hotel information, is available on NACWA’s website.

Contact: Nathan Gardner-Andrews at 202/833-3692 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Emerging Contaminants

NACWA Supports California Legislation to Establish Drug Take-Back Program

NACWA submitted a letter of support this week for California Senate Bill (SB) 1014, which would require that producers of pharmaceuticals create, finance, and manage an extended producer responsibility system for consumers to safely and conveniently dispose of unused pharmaceuticals. This effort aligns directly with NACWA’s “Toilets Are Not Trash Cans” campaign to limit the amount of inappropriate products entering the sewer system, including flushed pharmaceuticals. The California Association of Sanitation Agencies (CASA) and other California clean water utilities and have also voiced their support for SB 1014.

The Drug Enforcement Administration (DEA) currently operates pharmaceutical take-back events on two days each year, and other take-back programs are operated locally by utilities and other entities. Two counties – Alameda County in California and King County in Washington – have passed ordinances requiring drug manufacturers to operate take-back programs, but both of these counties were sued by three pharmaceutical associations. Alameda County’s ordinance was upheld by the U.S. District Court, and the case is now being considered by the Ninth Circuit Court of Appeals. The King County litigation is pending.

Take-back programs are an important method of preventing both prescription drug abuse and adverse water quality impacts from the flushing of unused drugs. NACWA believes that placing the responsibility for take-back programs on the drug manufacturers will remove the burden of dealing with unused pharmaceuticals from California municipalities, and SB 1014 could set an example for the rest of the country.

NACWA members are encouraged to contact NACWA regarding state and local legislation related to unused pharmaceuticals and any other issues related to the work of clean water agencies.

Contact: Cynthia Finley at 202/533-1836 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Funding Opportunities

DOT Seeks Applicants for Stormwater Grants

The Department of Transportation (DOT) is seeking applicants for $35 million worth of grants for project and regional-level transportation planning that include factors such as stormwater and resilience to extreme weather and climate change. The grants are part of the $600 million available under the DOT Transportation Investment Generating Economic Recovery (TIGER) discretionary grant program for capital projects related to highways, bridges, public transportation, rail, ports and intermodal projects. One of the main criteria of the grants is addressing environmental concerns, such as regulating stormwater through natural means, avoiding impacts to water quality and providing benefits like groundwater recharge, brownfield redevelopment and stormwater mitigation. The deadline for seeking the grants is April 28.

NOAA Announces Coastal Resilience Networks Grant Proposals

NOAA is soliciting grant proposals to enhance the resilience of coastal communities to natural hazard and climate risks. Proposals should provide beneficial public outcomes for coastal communities related to addressing existing and future risks to the natural environment, infrastructure, local economies, and vulnerable populations. Proposals must also include partnerships to enhance communication, cooperation, coordination, and/or collaboration. Partnerships should include a range of partners from various institutions, disciplines, and sectors at the local, state, and federal level. The funding applicants must conduct projects on either Gulf of Mexico Coast, or West Coast. Applications are due by April 11, 2014.

Reclamation Releases WaterSMART Feasibility Studies Funding Opportunity

The Bureau of Reclamation has released a WaterSMART Title XVI Water Reclamation and Reuse Feasibility Study Funding Opportunity Announcement for non-federal government entities, Indian tribes, water districts, wastewater districts or rural water districts in the 17 western states. Established in 2010, the Title XVI Water Reclamation and Reuse Program focuses on identifying and investigating opportunities to reclaim and reuse wastewater in the 17 Western States and Hawaii. Entities may submit applications for funding in amounts up to $150,000 for feasibility studies that can be completed within 18 months or up to $450,000 for feasibility studies that can be completed within 36 months. Applicants must provide at least 50 percent non-federal cost-shared funding for the feasibility study. A total of about $1.5 million is expected to be available this year.

This announcement is available at www.grants.gov by searching for funding opportunity number R14AS00030. Proposals must be submitted as indicated on www.grants.gov by May 6, 2014, 6:00 p.m. EDT. It is anticipated that awards will be announced this summer.

Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Integrated Planning

EPA Administrator McCarthy Testifies, Recognizes Need to Make Integrated Planning More Proactive Citing NACWA

EPA Administrator Gina McCarthy testified on Thursday at a House Appropriations Subcommittee on Interior, Environment, and Related Agencies hearing on the FY 2015 EPA budget request. Though the majority of the hearing focused on the potential implications of the recently released proposed Clean Water Act jurisdiction rule, Subcommittee Chair Ken Calvert (R-CA) asked McCarthy about EPA’s integrated planning framework and whether the Agency would support the creation of a new pilot program to demonstrate and evaluate the effectiveness of the new model. Citing NACWA’s efforts on the integrated planning (IP) pilots front – and the collaborative effort with NACWA on regional IP meetings – in her response, McCarthy agreed it was important to move beyond the enforcement arena and take a more proactive approach to IP. McCarthy mentioned looking at EPA’s funding of green infrastructure projects as a potential way to advance IP. Subcommittee Ranking Member Jim Moran (D-VA) responded by saying that he is supportive of an IP pilot program and that we should expect to see some funding included for it in the FY2015 House EPA Appropriations bill. NACWA will continue to work with the Agency to advance the idea of IP pilot funding and will provide updates on this issue as they become available.

Security

WSCC Focuses on Cybersecurity in Meeting with EPA, DHS

The Water Sector Coordinating Council (WSCC) conducted a two-day meeting in early March to discuss security and emergency preparedness for wastewater and drinking water utilities. For the second day of the meeting, the WSCC was joined by the Government Coordinating Council (GCC), which includes representatives from EPA and the Department of Homeland Security (DHS). Patty Cleveland, Assistant Regional Manager with the Trinity River Authority, Texas, and Vice Chair of the WSCC, represented NACWA at the meeting.

Cybersecurity was the main topic of the meeting, and the WSCC was updated by DHS on the recent work related to last year’s Executive Order (EO) 13636: Improving Critical Infrastructure Cybersecurity and Presidential Policy Directive (PPD)-21: Critical Infrastructure Security and Resilience. The overall security framework for infrastructure, the National Infrastructure Protection Plan (NIPP), was updated last year as part of the EO and PPD-21. The Cybersecurity Framework was recently released as directed in the EO and PPD-21 and provides a national guideline to improving cybersecurity of critical infrastructure. DHS recently announced the creation of the Critical Infrastructure Cyber Community (C3) Voluntary Program, a public-private partnership that will provide critical infrastructure owners and operators with existing resources to help manage cyber risks. The WSCC was also briefed about the current scope of cybersecurity threats.

The WSCC and EPA discussed and supported the creation of a joint workgroup to promote outreach and training that will raise awareness of cyber risks and encourage voluntary use of the Cybersecurity Framework in the water sector. The American Water Works Association (AWWA) Cybersecurity Guide, Process Control System Security Guidance for the Water Sector, and the supporting Use-Case Tool will likely serve as the foundation for the water sector’s adoption of the Cybersecurity Framework. NACWA will involve its Security & Emergency Preparedness Committee in the development and adoption of water sector cybersecurity practices.

Contact: Cynthia Finley at 202/533-1836 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Stormwater

EPA Regions Deny Residual Designation Authority Petitions

Three petitions submitted by environmental NGO groups to EPA Regions 1, 3, and 9, requesting they use their residual designation authority (RDA) to permit unregulated stormwater discharges into impaired waters were denied in March. Each of the three regions denied the petitions, with Region 3 denying the petition outright; Region 1 limiting consideration of the RDA on a watershed scale consistent with their existing policies; and Region 9 continuing to evaluate unregulated sources of stormwater runoff for potential designation as part of its ongoing stormwater program. The Regions’ complete responses can be found on the NACWA website. Though NACWA held a position that the petitions were worthy of consideration, their denial assuages concerns with how the RDA approach would be implemented and avoids any potential unintended consequences for MS4s. Though the petitions were denied, they seem to have elevated the dialogue around exercising RDA to a national level. NACWA will continue to track any developments.
Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Water Quality

Court Grants Stay in Mississippi River Nutrients Litigation

A federal appeals court granted a stay March 17 in litigation over nutrient issues in the Mississippi River Basin (MRB), putting on hold a lower court order directing EPA to make a formal determination on the need for federal numeric nutrient criteria (NNC) in the MRB by March 19. The order in Gulf Restoration Network v. EPA comes two weeks after EPA filed an appeal brief in the case, three days after the lower court rejected a similar stay request, and a mere two days before EPA was required to publish a revised necessity determination pursuant to the lower court’s September 2013 ruling. (See NACWA Advocacy Alert 13-15 for more information on the September decision.) The March 17 stay means EPA will not be required to make a necessity determination regarding federal NNC in the MRB while the appellate court considers the Agency’s appeal.

NACWA was an intervenor in this litigation at the trial court level and supported EPA’s position that federal NNC are not required for the MRB. The issues EPA is raising on appeal are procedural in nature and do not address the substantive issues involving nutrients that most directly impact NACWA members – as such, the Association is not directly participating in the appeal at this time. NACWA is, however, closely monitoring developments and is prepared to intervene in the appeal as necessary if substantive arguments regarding nutrient regulation are put before the appellate court.

Contact: Nathan Gardner-Andrews at 202/833-3692 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .