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

Top Stories

Key EPA Officials – Perciasepe and Stoner - Move on to New Endeavors

Two of EPA’s top officials, and long-time partners of NACWA on clean water issues, will be leaving the Agency this month. EPA Deputy Administrator Bob Perciasepe will soon become the president of the Center for Climate & Energy Solutions (C2ES). Acting Assistant Administrator Nancy Stoner, after leading the water office in this capacity since 2011, announced last week that she will be leaving to take a leadership position with the Pisces Foundation.

Association members benefitted directly from the support of Perciasepe and Stoner on priority issues like watershed permitting, integrated planning, and affordability — all efforts that NACWA will continue to aggressively pursue with Agency staff. NACWA congratulates each on their new endeavors and looks forward to continued collaboration with them in their new capacities.

Wastewater-Derived Transportation Fuels Approved for Renewable Fuel Standards

EPA announced in a final rule  on July 2 that wastewater-derived transportation fuels would qualify as cellulosic biofuels in the Renewable Fuel Standards (RFS), which will provide a potential new source of revenue for clean water agencies that produce transportation fuels from biogas. This decision achieves a goal of the Water Resources Utility of the Future (UOTF) initiative to have EPA and other federal agencies fully recognize that fuels produced at wastewater utilities are renewable. The newly approved RFS cellulosic fuel production methods, or “pathways,” that apply to publicly owned treatment works (POTWs) are compressed and liquefied natural gas produced from POTW biogas and electricity produced from biogas that is used to power electric vehicles.

EPA’s decision is a direct result of a July 15, 2013 letter  sent by NACWA in response to the Agency’s proposal  to allow landfill gas to qualify as a cellulosic biofuel, urging EPA to include POTW biogas in this determination as well. EPA responded positively to NACWA’s request, and the Association worked with the Water Environment Federation (WEF) and the Water Environment Research Foundation (WERF) as part of the UOTF effort to provide EPA with additional data to justify this decision. More details about the decision and its implications for NACWA members are available in Advocacy Alert 14-15.

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

NACWA Weighs in on EPA Financial Capability Framework

NACWA provided comments  on EPA’s Draft Financial Capability Assessment Framework in a July 29 letter. NACWA had provided input on the March 4, 2014 draft through the U.S. Conference of Mayors earlier this year, but EPA reached out directly to NACWA seeking its input. NACWA focused its comments on the need for better clarity in implementation once the Framework is finalized. While the Framework is an important step in the right direction, NACWA’s letter stressed that it will only succeed if it is implemented consistently across EPA’s ten Regional Offices. While EPA is still not willing to move away from or revise its 1997 guidance on financial capability, NACWA urged EPA to position the Framework as the Agency’s current thinking on the subject, with the 1997 guidance simply providing additional detail on the assessment. As currently drafted, the Framework is described as a supplement to the 1997 guidance. NACWA also recommended that EPA further revise the Framework to make it clearer that utilities can use alternative financial capability assessment approaches. NACWA understands that EPA and the U.S. Conference of Mayors, together with the National League of Cities and the National Association of Counties, will be scheduling another meeting to discuss the latest draft in the coming weeks with the hope of finalizing the Framework later this year.

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

Chart a Path to the Utility of the Future with a September NACWA Web Seminar Series

Join us in September on three Tuesdays (the 9th, 16th, and 23rd) at 2:00 PM Eastern Time for NACWA’s newest Web Seminar Series, Charting a Path to the Utility of the Future. Designed as a central component of NACWA’s Water Resources Utility of the Future (UOTF) campaign, this series will highlight how utilities are providing leadership through innovative approaches and new technologies to change the clean water paradigm. Featuring utility and private sector experts throughout the series, the initiatives highlighted can be emulated by utilities across the country, regardless of size, and will inspire new ways of solving utility management challenges and compelling ways to tell your UOTF story. The topics for the three web seminars are as follows:

• September 9: Resource Recovery – From Waste Stream to Goldmine
  Clean water agencies are increasingly being looked to as leaders on energy conservation and production, sources of water for drinking, agricultural and industrial use, as well as providers of phosphorus that can help solve an impending worldwide fertilizer shortage. This web seminar will explore this evolution in both perception and practice.
• September 16: Sustainable Infrastructure – Resilience, Gray, Green & the Regulatory Regime
  This seminar will explore how sustainable management incorporates the suite of growing regulatory demands on utilities – and the associated compliance costs – as well as the need to upgrade and replace aging infrastructure systems. Hear how other utilities are successfully telling their “sustainability story” and getting the support of their ratepayers – and local appointed and elected officials at this interactive web seminar.
• September 23: Innovative Financing & Rates – Finding New Revenue & Stretching Each Dollar
  Part of becoming a Water Resources Utility of the Future is a motivation to provide ratepayers with the biggest environmental bang for the buck. Urban and rural utilities alike are seeing growing percentages of ratepayers falling below the poverty line, resulting in unprecedented affordability concerns. Learn about creative financing techniques and share what your utility may be doing to maximize investment dollars on this interactive web seminar.

The registration rate for all three seminars is only $600 per location, while the registration rate for one seminar is $250 per location. Prior to the seminar, you’ll receive a call-in line for your utility, so don’t forget to engage key members of your staff. Register today!

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

Biosolids

NACWA Weighs in Against Application of Sludge Regulations to Recovered Resources

NACWA wrote  Nancy Stoner, EPA’s Acting Assistant Administrator for Water, July 21 urging the Agency to issue a policy statement clarifying that materials, such as struvite, extracted from the wastewater treatment process, are not subject to regulation as sewage sludge under the 40 CFR Part 503 regulations. With a growing number of utilities exploring the recovery of struvite and other materials from the wastewater treatment process, EPA, earlier this year, began evaluating whether such materials should be regulated under the Clean Water Act (CWA) and, if so, under what provisions. NACWA met with the Agency in February to discuss the issue and stressed that applying the Part 503 regulations to struvite and other recovered materials would have a chilling effect on similar initiatives.

EPA has been a vocal supporter of the Water Resources Utility of the Future concept and understands the impact that its decision would have on resource recovery efforts. During the February meeting, NACWA committed to providing the Agency with additional legal and policy rationale as to why these materials should fall outside of regulation under the Clean Water Act. The Association’s July 21 letter transmitted an issue outline  detailing why recovered materials such as struvite should be excluded from the Part 503 regulations. It included a request that EPA issue a policy statement to that effect or, if the Agency does not believe it has the authority to do so, initiate development of regulations to create an off-ramp for recovered materials meeting certain criteria – an approach that has been used successfully in Europe. NACWA is still working to set up meetings with key EPA staff over the coming weeks and will keep the membership apprised of any developments.

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 Resilience

NACWA and AMWA Release Report from Resilience Summit, NACWA Revamps Committee

NACWA and the Association of Metropolitan Water Agencies (AMWA) recently released the Summary and Next Steps  white paper from the Water Resilience Summit. NACWA and AMWA co-hosted the Water Resilience Summit in April as part of Water Week 2014, bringing more than 50 wastewater utility, drinking water utility, private sector, and federal officials together for a day-and-a-half facilitated dialogue on climate and resilience issues.

Although there are no simple solutions to climate change resilience, NACWA and AMWA have identified several collaborative actions in the report to advance water sector resilience. These actions will need further cooperation with and among key federal agencies to succeed, but recent developments offer some evidence that despite the enormity of the challenge progress can be made.

In the few months since the Summit, the federal government has already taken several positive actions on resilience that could benefit municipalities, which are mentioned in the white paper. For example, on July 18th, EPA released the Flood Resilience Checklist, a new resilience tool to help communities prepare for and recover from floods. Although the checklist is part of a new report focused on Vermont, the policy options and checklist in the report can be applied to any community seeking to become more flood resilient. The White House also released a new report  from the Council of Economic Advisers this week that examines the economic consequences of delaying action to stem climate change.

Recognizing that resilience is rising rapidly up the national priority list, NACWA has renamed the Climate and Energy Committee to the Climate and Resilience Committee, to ensure the resilience discussion is front and center and fully reflects our members’ interests and priorities. The Energy issues will be housed as a workgroup under the Utility Management and Resources Committee. Members are encouraged to let staff know if they are interested in joining the Climate and Resilience Committee.

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

Energy-Water Nexus

NACWA Members Asked to Complete WERF Survey on Barriers to Energy Efficiency

The Water Environment Research Foundation (WERF) is expanding research efforts into energy efficiency at wastewater utilities and has requested the help of NACWA members in completing an online survey that will help WERF to identify barriers and propose proven solutions to the challenges facilities are facing across the nation. The comprehensive survey is available at https://www.surveymonkey.com/s/9CLFFBV and will take about 25 minutes to complete. Responses are requested by Wednesday, August 13. NACWA would appreciate your participation in this survey, since this WERF project may help to inform our Water Resources Utility of the Future advocacy efforts and our work with the Department of Energy (see related story) and EPA on energy efficiency and production at utilities.

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

Funding/Financing

WIFIA Listening Session Convenes in Chicago; Sector Associations Release Issue Paper

NACWA participated in the first in a series of seven EPA listening sessions on the Water Infrastructure Financing & Innovations Act (WIFIA), a federal loan guaranty pilot program primarily aimed at funding drinking water and wastewater projects of regional/national importance. The new program was included in the recently passed Water Resources Reform & Development Act (WRRDA), along with significant improvements to the Clean Water State Revolving Fund program.

The July 22 Chicago-based listening session – attended by representatives from NGO groups, public agencies, and the private sector – had the goal of shedding light on the legislative language governing the eligibilities and criteria for pilot project applications. The participants also discussed specific project ideas, with many focusing on Utility of the Future or integrated planning. This is in part because these projects are less likely to require the use of tax-exempt municipal bonds, which are excluded from being used as part of the 51 percent municipal funding share. While the discussion was lively and engaging, it is important to keep in mind that money to fund the WIFIA pilot program has not yet been appropriated by Congress and until this happens the program cannot be implemented.

In advance of the Listening Session, the American Water Works Association (AWWA), the Water Environment Federation (WEF), the Association of Metropolitan Water Agencies (AMWA), and NACWA released an Issue Paper  that serves as an excellent resource on key opportunities and technical challenges associated with the new WIFIA program. The Agency plans to hold additional listening sessions in New York, Atlanta, Dallas, Los Angeles, San Francisco, and Washington, DC, and NACWA will provide additional information on the dates and locations of these sessions when it becomes available.

Contact: Pat Sinicropi at 202/533-1823 at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Security

NACWA Security & Emergency Preparedness Committee Web Meeting on August 6

NACWA’s Security & Emergency Preparedness Committee will meet via webinar on August 6, 2:00-3:00 pm Eastern. All NACWA members are encouraged to join the meeting, which will address issues related to both physical security and cybersecurity at wastewater utilities. The current status of Chemical Facility Anti-Terrorism Standards (CFATS) will be discussed and the Committee’s input will be sought on NACWA’s position related to CFATS and use of inherently safer technology at utilities. Last month, a federal working group’s report to President Obama, Actions to Improve Chemical Facility Safety and Security – A Shared Commitment , recommended an end to CFATS exemption for drinking water and wastewater utilities and use of inherently safer technologies, possibly through regulatory action (see NACWA’s Advocacy Alert AA 14-13 for more information). NACWA plans to write a letter to the working group about these recommendations.

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?269908 in your web browser.

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

WSCC Discusses New VSAT & Current Cyber Threats

The Water Sector Coordinating Council (WSCC) held a quarterly meeting on July 22 via webinar to discuss activities related to security and resiliency of drinking water and wastewater utilities. Patty Cleveland, Assistant Regional Manager, Trinity River Authority, Texas, is Vice Chair of the WSCC and represents NACWA on the Council. EPA briefed the WSCC on the recent release of VSAT 6.0, available for download at www.vsatusers.org. This updated VSAT is compatible with the ANSI/AWWA J100-10 standard, Risk and Resilience Management of Water and Wastewater Systems. Instructional videos for how to use VSAT 6.0 are available at www.vsatusers.org and EPA is also planning to offer training for utilities in the next year.

The WSCC was also briefed about recent cybersecurity threats that have affected water utilities. At least two utilities had their business data attacked by ransomware CryptoLocker and CryptoWall. The utility affected by CryptoLocker was able to remove the affected computer from its network and use data that was backed up the previous night to minimize data loss. Utilities should be aware of current cyber threats and take proper precautions to prevent attacks and back up data. NACWA members are encouraged to join the WaterISAC to stay up-to-date on the latest information regarding both physical and cyber security.

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

Sustainable Infrastructure

EPA Launches Green Infrastructure Collaborative

President Obama’s State, Local, & Tribal Leaders Task Force on Climate Preparedness & Resilience held its fourth and final meeting on July 16. While the Executive Office awaits the Task Force’s final recommendations in the fall, that same day the President announced a series of actions, including the launch of a Green Infrastructure (GI) Collaborative, to respond to the Task Force’s early feedback recommending help for communities to become more resilient.

The first phase of the Collaborative rollout focuses on aligning and leveraging federal resources. As a part of the rollout, seven federal agencies signed onto a letter of support  outlining the actions that each agency will undertake to further advance and promote GI. The potential signing of an updated GI Statement of Intent by NACWA and other key stakeholders would be an action that EPA would consider part of this new GI Collaborative.

The Collaborative also includes federal funding assistance for 25 or more communities across the country for GI projects, technical assistance to create integrated green stormwater management and hazard mitigation plans, and awards programs for innovative GI projects. The Collaborative will also provide a platform for conducting research on making GI a more affordable and effective practice, sharing best practices, and developing actionable planning tools that decision-makers have been seeking. NACWA will keep members apprised of the Collaborative’s progress and will share a draft of the revised Statement of Intent as soon as one is available.

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

Utility of the Future

NACWA Releases Utility of the Future Report at 2014 Summer Conference

At its 2014 Summer Conference in Portland, Oregon, NACWA released a new report titled, Today's Clean Water Utility – Delivering Value to the Ratepayer, Community, and Nation . The report highlights the billions of dollars in savings and return on investment from innovative projects at the Nation's clean water agencies. This burgeoning innovation has come about as a result of a number of key trends.

Clean water utility leaders have amassed more than four decades of experience implementing the complex requirements of the Clean Water Act (CWA) and are redefining their role by reconsidering the economic value of their inputs, like water, nutrients, and organic matter, as well as their own ability to create direct value for the Nation. The Utility of the Future (UOTF) can separate, extract, reuse and generate valuable water, energy, nutrients and other commodities from wastewater while using utility assets in innovative ways to reduce costs, increase revenue, and strengthen the local and national economies. This new report offers a valuable tool to help utility leaders tell their UOTF stories and provides economic and financial data pointing to the hundreds of billions of dollars in added value that the UOTF is unleashing.

But the full potential of the transition to the UOTF will be unleashed when regulators and governing boards acknowledge the substantial returns associated with making this transition and, based on that, support new ways of doing business locally and in the Nation’s Capital. NACWA looks forward to making this new paradigm a reality. To learn more, read NACWA’s Water Voice blog post about the report.

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

Appeals Board Ruling Affirms Flexibility for Nutrient Permit Limits

The U.S. Environmental Appeals Board (EAB) issued a positive ruling  on July 8 upholding the ability of clean water regulators to express discharge permit limits for nutrients in weekly or monthly averages and echoing arguments made by NACWA and its municipal partners in the permit appeal. The EAB’s decision in the City of Homedale Wastewater Treatment Plant rejected a request from an environmental activist group to review an EPA-issued permit for a POTW that included nutrients limits expressed as weekly and monthly averages and not as a true daily maximum limit. The NGO group had argued that an existing total maximum daily load (TMDL) nutrient wasteload allocation for the plant should be interpreted and applied to require a daily maximum nutrient limit in the permit, rather than average discharge limits included by EPA.

But the EAB rejected this interpretation and instead found the Region’s more flexible interpretation was acceptable. The EAB also reaffirmed the basic principle that discharge permit requirements do not have to be identical to TMDL wasteload allocations, only that the limits be consistent with the assumptions and requirements of the allocation.

NACWA joined with the Wet Weather Partnership and a number of state clean water associations in December to file a brief  in the appeal. NACWA is pleased with the EAB’s ruling and believes it reinforces the important flexibility available under the Clean Water Act to express nutrient limits in monthly or seasonal averages and not as true daily maximums. Additional information on the case is available on NACWA’s Litigation Tracking webpage.

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

Members seeking more information or related regulatory activity in their state can access NACWA’s State Action Track web tool, here.