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Member Pipeline
May 2016 Regulatory Update
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The National Association of Clean Water Agencies (NACWA) is pleased to provide you with the May 2016 Regulatory Update.
Regulatory Perspectives – May 2016 One of the most complex issues NACWA is dealing with at the moment involves the development of human health criteria by EPA for several states, including Washington and Maine. EPA’s action to federally promulgate water quality standards for these states raises important policy concerns for NACWA. Chief among them is ensuring an appropriate balance between state and federal responsibilities under the Clean Water Act. EPA is taking an aggressive posture with these rulemakings and is introducing federal policy positions that have never been articulated before. For these reasons, NACWA has been carefully watching – and where appropriate weighing in on – developments in these states. But underlying these policy issues is a more fundamental question: do Indian tribal populations that have practiced sustenance fishing for generations before this country was even founded deserve to be protected from toxic materials in the fish they eat? While there are all sorts of associated policy and economic consequences, this really isn’t a hard question at all. There is no doubt that the tribes deserve protection. But EPA’s tactics in providing this protection are flawed, and that’s where the rub is. While NACWA will continue to weigh in where EPA oversteps the clear boundaries in the Clean Water Act, it welcomes the opportunity to have a broader conversation about how best to provide the fish consumption protection that is necessary. EPA’s goal of protecting both tribal populations and the public at large is what the Clean Water Act is all about, but EPA’s misguided methods of trying to shoehorn these protections into a Clean Water Act context are only serving to complicate matters. The levels of protection needed may be very stringent and in some cases impossible to meet through Clean Water Act mechanisms. It’s going to take a lot of work, but strong-arming the states to come into line with what EPA wants is only going to further prolong the conflict and prevent commonsense efforts to find a workable solution for all. – Chris Hornback, Chief Technical Officer (Contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it with any comments or questions.)
Top Stories
Draft IRS Regulations Could Limit Use of Tax-Exempt BondsThe Internal Revenue Service (IRS) recently issued proposed regulations altering the definition of “political subdivision” for the purpose of issuing tax-exempt bonds and use of tax-exempt financed facilities. The proposed language could impact wastewater and stormwater utilities seeking to finance projects using tax-exempt bonds and/or use facilities built with tax-exempt financing, but the extent of the impact is still unclear. NACWA continues to analyze the proposal to determine potential impacts on Association members and would appreciate any feedback from the members on this issue. Under current IRS regulations, a “political subdivision” is “any division of any state or local governmental unit which is a municipal corporation or which has been delegated the right to exercise part of the sovereign power of the unit.” This has meant that a public entity able to exercise taxing, eminent domain, or police (regulatory) powers, is able to issue tax-exempt bonds and use tax-exempt financed facilities. However, the proposed new language imposes two additional requirements: 1) public purpose, and 2) governmental control, both of which, depending on how they are interpreted, may have impacts on wastewater or stormwater utilities. The public comment period for the proposal closes on May 23, 2016. NACWA is working with a coalition of other water sector organizations to submit comments on behalf of the municipal water community by the May 23 deadline to ensure the regulations do not negatively impact clean water agencies. Any members with additional thoughts or concerns about the regulations should contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Contact: Erica Spitzig at 202/533-1813 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . NACWA, EPA Discuss Phase II Stormwater Rule ProposalNACWA met with EPA staff on May 3 to discuss the comments the Agency received on proposed changes EPA officials reiterated that the proposal is only intended to make procedural changes to the Phase II program, not substantive alterations. They also acknowledged a number of issues raised in NACWA’s comments, including concern over a perceived switch from narrative to numeric effluent limits for stormwater permits, and indicated that the Agency would be making changes in the final rule to address these issues and clarify that the Agency’s intent is not to mandate numeric limits. EPA noted that the majority of the 74 public comments on the rule were supportive of the flexibility afforded by the “Option 3” approach, which was also endorsed in NACWA’s comments. NACWA will continue to stay engaged on this issue with EPA as the Agency moves to finalize the rule by November of this year, and will likely provide additional written feedback to EPA in light of public comments submitted by other organizations. Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . NACWA Leads Collaboration Against Farming Standard’s Ban on BiosolidsNACWA, together with the Water Environment Federation (WEF), the California Association of Sanitation Agencies (CASA) and several state and regional biosolids organizations wrote Adherence to the standards is expanding in Europe and across the United States. The joint letter highlighted that an outright ban on the use of biosolids sends the wrong message to producers and the public and unnecessarily restricts the beneficial reuse of a material that has many advantages over commercial fertilizers. The letter sought a meeting to learn more about the standards and the ban on biosolids use. NACWA’s Biosolids Committee will discuss next steps when it meets in July during NACWA’s Utility Leadership Conference. Contact: Chris Hornback at 202/833-9106 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . EPA Proposes Array of Revisions to NPDES Permit ProgramEPA proposed a number of updates to its National Pollutant Discharge Elimination System (NPDES) permit program May 18, including several provisions that could impact clean water agencies. NACWA will be reviewing the proposal carefully and will develop comments by the July 18 deadline. Members with comments on the proposal should send feedback to Brenna Mannion at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Affordability
EPA Releases Utility Customer Assistance Programs ResourceEPA released a compendium of Drinking Water & Wastewater Utility Customer Assistance Programs (CAPs) on April 14, providing a national overview of programs used by communities to provide assistance to low-income ratepayers who cannot afford to pay the full cost of their water and sewer bills. The compendium includes detailed descriptions and of the various types of CAPs – Bill Discount, Flexible Terms, Lifeline Rate, Temporary Assistance, and Water Efficiency. NACWA’s Water Finance Workgroup helped develop and review the report and provided many of the case studies. Read the full story from the Clean Water Current. NACWA, along with several national member associations representing public and private wastewater and drinking water utilities, is also conducting an information gathering effort and examination of subsidy program models in use today with a specific focus on the statutory, regulatory, constitutional and policy underpinnings of barriers to variable rate programs at the state and local levels. The publication is targeted for Fall 2016. 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
Kern County Biosolids Litigation Moves ForwardAfter 8 days of testimony, the bench trial in City of Los Angeles, et al. v. County of Kern concluded on May 6. This California case involves Kern County’s discriminatory local land application ban (Measure E) and its long-running effort to restrict the imports of biosolids from Southern California communities for spreading on a Los Angeles owned farm. Read the full story from the Clean Water Current. Contact: Amanda Waters 202/530-2758 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Energy
DOE Better Buildings Challenge Launches Wastewater Infrastructure AcceleratorThe Department of Energy’s Better Buildings Challenge program is launching three new accelerator programs, including the Wastewater Infrastructure Accelerator, a program to make wastewater facilities more efficient, and the Combined Heat and Power for Resiliency Accelerator, a program to increase the use of combined heat and power. The Wastewater Infrastructure Accelerator aims to improve the energy efficiency of partnering wastewater facilities by at least 30% and integrate at least one resource recovery measure. Read the full story from the Clean Water Current. Contact: Cynthia Finley at 202/533-1836 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Enforcement
New Report Released on California Citizen Suit EnforcementThe Wheeler Institute for Water Law & Policy at the UC Berkeley School of Law recently released a report entitled Citizen Enforcement and Sanitary Sewer Overflows in California. NACWA and several wastewater agencies and associations provided funding for this report but – to ensure an independence process – did not have editorial control over the questions asked, Wheeler’s analysis or conclusions, or the writing of the report. Read the full story from the Clean Water Current. Contact: Amanda Waters 202/530-2758 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Green Infrastructure
New Report Examines Benefits of SRF Green Project Reserve SpendingIn a report released May 2, EPA’s Office of Inspector General (OIG) recommended that EPA collect additional data and better evaluate the environmental and economic benefits of Green Project Reserve (GPR) projects, which received over $3 billion of Clean Water State Revolving Loan Funds (CWSRF) between 2009-2014. Read the full story from the Clean Water Current. Contact: Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Reuse
GAO Report Confirms Utilities Face Challenges to Expanding Water ReuseThe Government Accountability Office (GAO) has found that clean water utilities interested in reuse of treated wastewater face significant regulatory and financial hurdles. While this is not news to the many NACWA members that have been exploring this concept for years, a new GAO 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 .
Security
WSCC Meets with Government Council to Discuss Utility Security IssuesThe Water Sector Coordinating Council (WSCC), which oversees utility partnership with federal agencies on matters related to security and emergency preparedness, held its quarterly meeting in Washington DC on May 9-10. NACWA’s two representatives to the WSCC – Patty Cleveland, Assistant Regional Manager with the Trinity River Authority, Texas, and Chair of the WSCC, and Jim Davidson, Manager of Safety & Security for the Northeast Ohio Regional Sewer District – both participated in the meeting. Read the full story from the Clean Water Current. 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
New Tennessee Stormwater Law Limits Use of Post-Construction Performance StandardsA Tennessee stormwater bill (S.B. 1830) that recently became law requires that MS4 permits issued by the state be no more restrictive than federal requirements for post-construction management of stormwater. This could lessen the ability of local governments to use post-construction onsite retention standards for managing stormwater. This bill sets a concerning precedent for other states, especially where municipal stormwater utilities are interested in using such standards as part of their stormwater management programs and must determine whether individual performance standards exceed "the federal minimum". Read the full story from the Clean Water Current. 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
Utility of the Future Today Recognition Program LaunchedA partnership of water sector organizations—NACWA, the Water Environment Federation (WEF), the Water Environment Research Foundation (WERF) and WateReuse — with support from EPA — announced a new Utility of the Future (UOTF) Today recognition program on April 21. The program will celebrate the progress and exceptional performance of our nation’s wastewater utilities while supporting the widespread adoption of the innovative UOTF business model. To learn more about the UOTF Today recognition program, visit www.wefnet.org/utilityrecognition or contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Read the full story from the Clean Water Current. Contact: Chris Hornback at 202/833-9106 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Water Quality
Concerns Raised Over Use of Default Values for Water Quality ModelNACWA filed comments Contact: Chris Hornback at 202/833-9106 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Wet Weather
EPA Issues Report to Congress on CSOs to Great LakesEPA transmitted its Report to Congress on combined sewer overflows (CSOs) into the Great Lakes on April 19, as it was required to do by the Consolidated & Further Continuing Appropriations Act of 2015. Congress requested a summary of CSO discharge volumes to the Great Lakes in 2014. In response, EPA collected readily available data on CSO permittees, their discharge locations, the status of long-term control plans (LTCPs) and post-construction monitoring programs, historical and anticipated CSOs, and 2014 CSOs. NACWA is working to provide EPA with more input for the CSO notification requirements for Great Lakes dischargers that were required in the fiscal year 2016 appropriations package. EPA has expressed an interest in expanding these requirements beyond the Great Lakes region. Read the full story from the Clean Water Current. Contact: Cynthia Finley at 202/533-1836 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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