» Update Archive

 
This edition of NACWA’s Legislative Update, current through May 2, 2016, provides information on the activities of the 114th Congress of interest to the nation’s public clean water agencies. For more detailed information regarding NACWA legislative activities, click on the web links in selected news items or visit NACWA’s website. Please contact NACWA’s This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it with any questions or information on the Update topics.

Top Stories

Senate WRDA Bill Emerges with Provisions for Clean Water and Flint

The final week of this Congressional work session marked a turning point in the discussions on water infrastructure and investment that have been occupying Congressional members since the Flint crisis came to light. While numerous legislative responses have been proposed, clear progress on a Flint response remained elusive. Debate over the Flint response held up the bipartisan Senate Energy Bill for weeks until agreement was reached that Flint would be addressed through a different legislative vehicle.

The Senate made good on that promise with the 2016 WRDA Bill introduced April 25th, which—in addition to its fundamental role of authorizing U.S. Army Corps of Engineers’ (ACOE) flood control, navigation, and ecosystem restoration projects – included significant financial assistance for infrastructure and public health programs aimed at Flint. The bill also includes policy changes regarding lead notification and to other drinking water regulations and programs.

But the Senate WRDA Bill is hardly limited to drinking water – it also includes many significant provisions for the clean water sector, some of which have been NACWA member priorities for years. These include creation of a clean water trust fund, proposed changes to affordability guidelines, codification of integrated planning, reauthorization of a wet weather grant program, creation of an EPA municipal Ombudsman to assist communities in their interaction with EPA, and more.

To learn more about what was included in the bill, see NACWA’s detailed April 28th Advocacy Alert. You can also review the Committee’s section-by-section summary  or the full text of S. 2848, Water Resources Development Act of 2016 .

The Senate’s Environment and Public Works Committee approved the proposal on April 28th with a vote in support of 19-1. Next, Committee leadership will work to secure floor time for the bill to be debated and voted on by the full Senate. The bill’s leaders will make the case that the strong bipartisan vote of 19-1 demonstrates that this bill deserves full consideration.

The House must also introduce its version of the bill (see more below), and then there likely will be a conference committee to resolve differences between the Senate and House versions. NACWA will continue to stay engaged and advocate for passage of a comprehensive WRDA bill consistent with the Senate’s approach.

NACWA Advancing Stormwater Provision in House WRDA Bill

Meanwhile, the House is working to draft its version of WRDA, which we anticipate will be introduced in May. NACWA has identified an opportunity  to potentially improve water resources management efforts between local water management entities and the ACOE, and has been working with leadership in the House and with the ACOE to develop a bipartisan provision that could enhance coordination between the ACOE and local stormwater agencies. The coordination could help advance efforts to treat water as part of an integrated system, ensure federal and ratepayer investments are efficiently utilized, and improve water quality.

We are hopeful this relatively small and bipartisan provision may be included in the House bill – and ultimately remain in WRDA 2016 should the House and Senate both pass and conference a bill to send to the President. For more information, see the latest Clean Water Current. NACWA members with questions or interest in additional information are encouraged to contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it , NACWA’s Senior Legislative Director or This e-mail address is being protected from spambots. You need JavaScript enabled to view it , NACWA’s Legislative Manager.

Congressional Efforts Underway to Ensure Robust Water Funding in FY17

President Obama’s Fiscal Year (FY) 2017 Budget proposal, released February 9, signaled a dramatic and troubling shift in water investment priorities. While the Administration touts a $300 million proposed investment in water innovation and water supply, it also proposes a significant cut to EPA’s CWSRF – allocating an amount more than $414 million less than FY 2016. NACWA strongly supports federal efforts to spur innovation in the water sector; however, federal investment in clean water infrastructure through long-standing programs like the CWSRF must also be maintained. Additional details on the budget request are available in Advocacy Alert 16-03.

By the time the FY 17 Budget proposal was released, Congressional attention to clean and safe water was already unusually high due to the crisis in Flint, Michigan, the drought in the West, and severe flooding events around the country. The Congressional response to the Administration’s proposal was strong and swift, with Members of Congress from both parties denouncing the proposed cuts to the CWSRF.

As the FY 17 Appropriations process got underway, several Congressional sign-on letters supporting water infrastructure funding were circulated and signed by Members of Congress and sent to Appropriations Committee leadership. Of note, minority leadership of the House Transportation & Infrastructure and Energy & Commerce committees circulated a request for $4 billion in federal funding for the State Revolving Funds in FY 17, to be split equally between the CWSRF and the Drinking Water State Revolving Fund (DWSRF). In a strong demonstration of support for the SRFs, nearly 100 House Democrats signed this letter  to Appropriators. Meanwhile, a House bipartisan letter  requesting support for the SRFs (without specifying a dollar amount) also received nearly 40 signatures. In the Senate, a bipartisan letter was circulated requesting no less than the FY 16 funding levels for the CWSRF and DWSRF, which would reverse the dramatic cuts proposed by the Administration. The letter  received strong support and was signed by 43 of the 100 Senators.

NACWA engaged with nine water and municipal organizations to develop a unified coalition request for FY 17 funding. The resulting letter  was sent to the Appropriations Committees in both the House and Senate, and shared with all Congressional offices. NACWA has also submitted written testimony  to the Appropriations Committee and met with Committee staff. Additionally, many Association members have contacted their Congressional Representatives to encourage their support, and the importance of maintaining the SRFs was one of the key messages that water professionals brought to Capitol Hill during the 2016 National Water Policy Forum & Fly-In in April.

The Association continues working to advance discussions regarding federal funding for water infrastructure, including through and beyond the WRDA legislative debate. Contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it , NACWA’s Legislative Manager with questions about FY17 Appropriations.

Appropriations Process Picking Up Steam

In both the House and Senate, Appropriations Subcommittees have begun to develop their 12 respective Appropriations bills, which will provide program-specific funding levels for FY17. The top-line levels for each bill likely won’t change substantially compared with FY16 because an overall FY17 discretionary spending level of $1.07 trillion was already agreed to in the two-year budget deal signed in December. The Senate agreed early on to follow this spending level, which reflects a relatively modest $3 billion increase over current spending. House Republican leadership indicated they nonetheless wanted to pass a new budget, but it appears that effort has succumbed to conflicts within the party over the appropriate levels of spending.

Without passage of a budget, the House Appropriations Committee cannot allow floor consideration of any of the 12 individual Appropriations bills until May 15th. In the meantime, several bills have been introduced and marked up by subcommittees. House leadership has indicated they want to move quickly to ensure the opportunity for floor consideration before summer recess. House leadership also continues to state their commitment to passing individual Appropriations bills without resorting to last-minute measures, such as extensions or omnibus legislation. However, this will require significant floor time and it remains to be seen whether policy and spending level conflicts will mire the process.

In the Senate, several Appropriations bills have also been marked up in Committee, and floor consideration began with the Energy & Water Appropriations Bill during the week of April 25. However, a controversial amendment related to Iran has emerged as a sticking point and has prevented the Senate from moving forward on the bill. Appropriators have indicated they will continue working to move toward a vote on the bill when they return from recess in mid-May – and demonstrate that the Senate has good prospects for passing some of the other Appropriations bills this year. While the Senate majority leadership says they hope to spend May, June and July moving individual bills, numerous policy issues could continue to hamper that process.

The Interior, Environment, and Related Agencies Appropriations Bill—which includes most of the programs of most interest to the clean water community—typically is one of the last bills to move in both the House and the Senate, and it appears this year will be no different. NACWA will continue monitoring the Appropriations process, advocating against the Administration’s proposed cuts to the CWSRF and working to build Congressional support for critical clean water programs.

Water Infrastructure Legislative Proposals Continue

In addition to working to support strong FY17 SRF funding and a response to Flint, key Congressional leaders also continue working to reauthorize strong funding levels for both the Clean Water and Drinking Water SRFs in future years. On Wednesday, April 20th, 30 Democratic Senators led by Sen. Cardin (D-MD) introduced S. 2821, the True LEADership Act, which among many other provisions would triple funding for the CWSRF and DWSRF. Annual authorizations for the CWSRF would reach between $5.2 billion and $9.1 billion in FY17 through FY21. These increases were also proposed in earlier legislation by Sen. Cardin.

The True LEADership Act is distinct in that it consolidates earlier proposals by Senator Cardin and other Members of Congress which have emerged in the wake of Flint, reflecting growing concern regarding the nation’s water infrastructure. In addition to authorizing large increases for the SRF, the Act would provide $70 billion in spending on water infrastructure over the next ten years and grants and loans for lead relief. The bill would also make the WIFIA program permanent and authorize further funding. Many of these elements were included in the Senate WRDA bill as well.

Energy

Comprehensive Energy Reform Bill Passes Senate After Flint Relief Impasse

As reported in the February Legislative Update, failure to reach agreement on federal funding for Flint drove the Senate’s comprehensive energy bill to a standstill earlier this year. S. 2012 , The Energy Policy Modernization Act of 2015, had long been a priority for Sen. Murkowski (R-AK), Chair of the Energy and Natural Resources Committee and Chair of the Appropriations Subcommittee on Interior, Environment, and Related Agencies. Despite intense negotiations during the February and March session, the Senate left for recess in late March unable to advance the bill due to a continued hold on the bill from Senator Mike Lee (R-UT), to the growing frustration of Michigan Senators Debbie Stabenow and Gary Peters, both Democrats. However, after garnering assurances that the Flint relief package would be addressed on another vehicle, Senate Democrats relinquished the demand to connect Flint to the Energy Bill and moved forward to pass the Energy Bill on April 21st with a vote of 85-12.

The 424-page bill includes a wide range of provision, including several of interest to the clean water sector, and is the first comprehensive energy reform in nearly a decade.

NACWA is on the record in supporting two sections of S. 2012 related to the Energy-Water Nexus, which would advance innovation in the clean water sector. For more information on these provisions, see the January 29 Clean Water Current.

Provisions related to water include establishing a federal interagency coordination committee on water-energy nexus issues (chaired by the Department of Energy (DOE) and Department of Interior (DOI), with participation from EPA and others); a smart energy and water efficiency pilot program authorizing grants to eligible entities (including water and wastewater agencies) for investment in water and energy efficiency (a provision NACWA worked with Sen. Tom Udall (D-NM) to craft several years ago); and authorization of the DOE’s Industrial Assessment Centers, which traditionally provide technical energy efficiency assistance to manufacturers, to expand their services to wastewater treatment agencies (a provision NACWA worked on with Sen. Tammy Baldwin (D-WI).

The next step will be to conference the House and Senate bills to reach agreement on a final bill to send to the President. Sen. Murkowski (R-AK) has told reports she expects a formal conference to be held, but no schedule has yet been released. Conference is anticipated to be challenging because the bipartisan Senate bill is significantly different from the House Bill (H.R. 8) that was approved over strong Democratic objections and faces a White House veto threat.

Stormwater

House Bill Seeks to Clarify Exemption of Stormwater Rebates from Taxation

On March 11, NACWA sent a letter  in support of H.R. 4615, the Water Conservation Rebate Tax Parity Act, introduced by Reps. Huffman (D-CA) and Rohrabacher (R-CA). The bill seeks to provide clarity in the federal tax code that rebates for water efficiency and stormwater management at residential properties are exempt from federal income tax. NACWA has engaged with a coalition of environmental and advocacy groups collaborating to ensure that utilities using private property green infrastructure rebate programs can move forward without the chilling effect that taxation may cause.

There have been increasing concerns raised about whether payments to private property owners – made as part of certain water conservation, stormwater management, and even land conservation programs – can be considered taxable income under federal tax law. NACWA is working with a variety of partners to aggressively address these concerns and achieve the needed regulatory and statutory clarification to ensure that these innovative programs are not subject to federal income tax.

Utility of the Future

Legislation to Advance Water Technology Introduced

On March 14, Sen. Tammy Baldwin (D-WI) introduced S. 2763, the Water Technology Acceleration Act. The Act would create a grant program within EPA to help finance public-private partnerships that deploy, test, and improve emerging water technologies which address pressing water issues. This provision was included in the Senate WRDA Bill (see article above).

This legislation would also amend the CWA and Safe Drinking Water Act (SDWA) lists of eligible SRF uses with an eye to accelerating the development and deployment of innovative water technologies. The amended list of eligible CWSRF activities would include the technologies that address nonpoint source agricultural pollution, advance resource recovery in water and wastewater treatment, and reduce wet weather sewer overflows. The bill would authorize up to $100 million in additional CWSRF funding annually to be available specifically for these new uses. The bill would also require that EPA report to Congress annually regarding the use of CWSRF for innovative technologies, barriers to the clean water sector’s implementation of innovative technologies, and the potential for infrastructure cost-savings.

Clean Water Caucus Holds Utility Resiliency Briefing

On March 16th, NACWA members engaged with Members of Congress in a Congressional Clean Water Caucus Briefing highlighting resiliency efforts by clean water utilities in the face of weather extremes. Both Co-Chairs of the Clean Water Caucus, Rep. John J. Duncan Jr. (R-TN) and Rep. Dan Lipinski (D-IL). provided remarks, as did Rep. Hanna (R-NY) who noted his personal experience with water infrastructure during his time running a construction business. NACWA President Adel Hagekhalil from Los Angeles Sanitation facilitated, and Brian Hoelscher of the Metropolitan St. Louis Sewer District and Bertha Goldenberg of the Miami-Dade Water and Sewer Department participated in the panel. For more information, see the Clean Water Current article or view the presentations on NACWA’s website.

Affordability

Clean Water Affordability Act Introduced in Senate

On April 7th, Senator Sherrod Brown (D-OH) reintroduced S. 2768, the Clean Water Affordability Act, containing many of NACWA’s key policy recommendations for ensuring ratepayer affordability, including codifying Integrated Planning, extending NPDES permit terms, authorizing use of alternative wet weather treatment technology for sanitary sewer overflows, and reauthorization of a grant program targeted specifically for managing wet weather challenges. The Association worked closely with Senator Brown to craft many of the bill’s provisions, which track closely with provisions also contained in the House Clean Water Affordability Act introduced by Congressman Bob Latta (R-OH). Key provisions from this bill were also included in the Senate WRDA legislation (see above).

NACWA sent a letter  in support to Senator Brown thanking him for his leadership on this issue. Please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it , NACWA Legislative Director, for more information about this effort.

Upcoming Water Infrastructure Affordability Briefing on May 12th

On May 12th, Rep. Marcia Fudge (D-OH) is hosting a Congressional Briefing on Water and Wastewater Rate Affordability for Low-Income Ratepayers. The Briefing will discuss the water affordability issues, which have been a concern for several years but which the crisis in Flint has brought to light in a dramatic way. Recent studies regarding the challenges utilities face to meet their infrastructure investment needs and environmental compliance obligations while ensuring customers can afford their bills will also be discussed. Rep. Fudge has introduced H.R. 4542, the Low Income Sewer and Water Assistance Program Act, which would create a pilot program to award grants to low-income households to assist with payment of water and sewer bills.

The Briefing will include Opening Remarks by Rep. Fudge. Panelists will include Julius Ciaccia, Chief Executive Officer, Northeast Ohio Regional Sewer District; George Hawkins, Chief Executive Officer & General Manager, DC Water; Kishia Powell, Director of Public Works, City of Jackson, Mississippi; and Eric Rothstein, CPA, Principal, Gelardi Rothstein Group.

The Briefing will be held at 2:00 PM in 2013 Rayburn House Office Building. No RSVP is needed, and all NACWA members are encouraged to attend!

Upcoming Hearings

With Congress going on recess the first week of May, there are no upcoming Congressional hearings of interest to report. We do anticipate the calendar will start to fill up as Congress returns for a three-week session in May. Hearings are often announced with little advance notice and NACWA will keep the membership updated.