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The National Association of Clean Water Agencies (NACWA) is pleased to provide you with the June 2016 Regulatory Update.

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NACWA Reviewing Proposed Revisions to NPDES Permit Program

EPA 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. While EPA describes most of the changes as having no or minimal impact on permittees, the true impact will depend on how a particular state is currently implementing its permit program.  Several substantive provisions could alter how states set water quality based effluent limits (WQBELs).

The most contentious provision in the proposal would allow EPA Regions to designate certain administratively continued permits as “proposed permits” and trigger an EPA review process.  EPA is targeting permits that have been administratively continued for extended periods of time. Currently, EPA can only identify these permits as priorities and work with the states to get them revised and reissued.  The proposed rule change would give EPA more leverage with states for those permits it considers “environmentally significant.”  However, some of EPA’s potential triggers for use of this provision are basic elements of the Clean Water Act program, such as whether there is a new or revised water quality standard that has not been implemented in the permit.

NACWA met with EPA staff on June 2 to discuss the Agency’s proposal.  After the Association’s preliminary analysis of the rule, the meeting provided clarification on the finer points of the proposed changes to the NPDES program.  NACWA will continue to review the proposal and will develop comments by the July 18 deadline.  Members with comments on the proposal should provide feedback to Brenna Mannion at 202/533-1839 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  Read the full analysis in Advocacy Alert 16-08.

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 Ramps up Advocacy on Regulatory Status of Recovered Resources

EPA Headquarters is working to draft a statement indicating that struvite recovered from the wastewater treatment process and subsequently used as a fertilizer should be regulated under the Part 503 biosolids regulations. NACWA is concerned that such a determination will have a chilling effect on the recovery of struvite and resources more broadly from the treatment process.

The Association has been working on this issue for the past several years to exclude struvite and other recovered resources from the biosolids program, but many at EPA remain convinced that the Agency has no other alternative than to regulate these resources under the Clean Water Act. NACWA developed a legal analysis in 2014 outlining why resource extraction from the treatment process should be handled separately from the existing regulations.

NACWA is working on a proposal that would provide an alternative framework for these materials in advance of a June 27 meeting with senior Office of Water leadership.

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

Clean Water Funding and Financing

EPA Reviewing Clean Water Funding Mechanisms

EPA is collecting comments on an Information Collection Request (ICR) the Agency is planning to submit to the Office of Management & Budget for the application materials associated with its Water Infrastructure Finance and Innovation Act (WIFIA) loan program.  The WIFIA program was authorized in the 2014 Water Resources Reform & Development Act (WRRDA) and will provide loans and loan guarantees for clean water and drinking water projects.

This is a crucial opportunity for utilities interested in applying for WIFIA financing to review the application and provide input for EPA on the program. EPA will be using the comments collected to further evaluate recipients and to develop loan agreement documents. The supporting documents, including a draft application, are available on the federal rulemaking website. Comments are due by July 22, 2016, and NACWA is working with other water sector groups to develop joint comments.

EPA also submitted its Review of the Allotment of the Clean Water State Revolving Fund (CWSRF) Report to Congress on May 24.  The Report was required under WRRDA 2014 and reviews the adequacy of the current CWSRF allotment formula to address the clean water needs in eligible states and territories.

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

2015 Cost of Clean Water Index Survey Report Now Available

NACWA’s 2015 Cost of Clean Water Index Survey indicates that the average cost of wastewater services rose 3.1 percent in 2015, significantly more than the rate of inflation (as measured by the Consumer Price Index). The 2015 Index found that the national average amount that a single-family residence pays for wastewater collection and treatment is now $452 per year.

In addition to the national overview information, the Index includes breakdowns by EPA Region. NACWA has conducted its Index Survey since the 1980s to provide a consistent benchmark for tracking fluctuations in what people are paying for wastewater services.

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

Association Comments on Tax Exempt Bonds Changes

On May 23, NACWA submitted joint comments with a coalition representing the municipal water and wastewater sector on a proposed rule that would change the way the Internal Revenue Service (IRS) defines “political subdivision” for purposes of tax-exempt bond issuance.

If the proposed rule is enacted as is, certain member utilities may be at risk of not clearly meeting the new requirements, which could restrict the ability to issue tax-exempt bonds to finance projects. NACWA’s comments focused on the impact the proposed regulations could have on utilities’ access to tax-exempt bonds and urged Treasury and the IRS to revise the proposed language. NACWA also provided testimony at a public hearing held by the IRS on June 6. Read the full story on NACWA’s testimony in the Clean Water Current. 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 . 

Emerging Contaminants

Congress Sends Toxic Substance Control Reform to President

Significant environmental reform passed Congress on June 7 when the Senate approved legislation reforming how EPA regulates toxic substance.  The Frank R. Lautenberg Chemical Safety for the 21st Century Act (H.R. 2576), reforms the 1976 Toxic Substances Control Act (TSCA).  NACWA weighed in on the bill to urge negotiators to ensure that clean water utilities will retain their ability to ban chemicals when necessary – regardless of whether a given chemical has been federally reviewed or regulated – and to ensure that all utilities qualify for important exceptions to federal preemption that are provided for political subdivisions under the bill.  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 .

NACWA Asks EPA to Consider Effects of Malathion on POTWs

NACWA submitted comments June 10 on EPA’s draft Biological Evaluation (BE) for malathion, a pesticide that is used to treat head lice.  NACWA’s comments concurred with the more detailed information provided by the Bay Area Clean Water Agencies (BACWA) and asked that EPA fully consider the discharge of malathion to sewer systems in its BE, including the potential for the pesticide to interfere with the wastewater treatment process.  NACWA also recommended that EPA consider the byproduct malaoxon, which is hazardous to aquatic life and may be formed when wastewater effluent is disinfected with chlorine. 

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

Energy

NACWA and Department of Energy Discuss Opportunities for Utility Energy Production

NACWA staff met with the Department of Energy (DOE) Technical Assistance group on June 1 to discuss the DOE programs that could be beneficial to clean water agencies.  NACWA and DOE also discussed potential ways to continue raising awareness about both energy efficiency and energy production at wastewater utilities, so that DOE, EPA, and other associations will fully recognize the benefits of energy projects at utilities. 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

NACWA Comments on Akron Consent Decree Amendment

NACWA submitted comments June 7 in support of the First Amendment to Member Agency Akron, Ohio’s Consent Decree.  The Amendment modifies two projects to maximize use of existing infrastructure with less disruption of surrounding natural areas and neighborhoods, and provides $30 million in cost savings while achieving the same level of benefit required by the original project designs. 

The Association is always happy to submit comments in support of Member Agency consent decrees and enforcement orders, if appropriate.  Contact NACWA General Counsel Amanda Waters for more information.

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

Pretreatment & Pollution Prevention

NACWA Recommends Maintaining Current RCRA Corrosivity Definition

In a June 15 letter , NACWA supported EPA’s tentative denial of a petition to change the corrosivity level that defines a hazardous waste under the Resource Conservation and Recovery Act (RCRA). Currently, wastes with a pH greater than 12.5 are considered hazardous.  The petition asked EPA to lower this level to pH 11.5.  NACWA supports the Agency’s denial of this request as higher pH wastewater can help to reduce production of hydrogen sulfide in sewer systems, reducing both corrosion and hazards to sewer workers.  In addition, lowering the pH level would cause wastewater from more industrial users to be deemed hazardous, which would lead to either more chemical use to lower pH or additional reporting requirements for the industries, in accordance with the pretreatment ordinances used by most 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 .

Flushability of Wipes Addressed by Association and State Legislation

The collaborative effort of the wipes industry and the associations representing wastewater utilities on improving the guidelines for flushability of wipes continued during a May 24 meeting in Chicago.  This effort is supported by NACWA’s Targeted Action Fund (TAF) and is an important part of NACWA’s ongoing Toilets Are Not Trashcans campaign.  Once the flushability guidelines are finalized, they will provide a useful basis for legislation on flushable wipes, such as the bill passed by the Minnesota Senate on May 19 that specified both flushability criteria for wipes labeled “flushable” and labeling requirements for non-flushable wipes. Read the full story in 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

EPA Highlights Climate Change Issues in Stormwater Management Report

U.S. EPA’s Office of Research & Development has released a report, Stormwater Management in Response to Climate Change Impacts: Lessons from the Chesapeake Bay and Great Lakes Regions, which explores ways to further the adoption of climate change adaptation practices in stormwater management. While the overall message of the report – the importance of building local capacity, green infrastructure cost/benefit, and implementation of resilient practices within current governance structures – is one that the clean water community is familiar with, the report is a good collection of tools, data, and methods for planners and utilities.

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

Railroad Anti-Fee Campaign & Tennessee Standards Law

On May 25, the Virginia Association of Metropolitan Stormwater Agencies (VAMSA) shared information with the National Stormwater Advocacy Network (NSAN) via conference call about efforts by national railroad companies to develop a national strategy to fight impervious area-based stormwater charges. The group noted there could be a need for a national strategy and comprehensive joint effort to oppose the railroad companies’ efforts.

Also on the NSAN call, the Tennessee Stormwater Association (TNSA) and NACWA member the City of Nashville described the nuances of the recently enacted Tennessee Post Construction Standards law. The law would require that NPDES MS4 permits issued by the state be no more restrictive than federal requirements for post-construction management of stormwater.  Both TNSA and the Tennessee Department of Environmental Conservation opposed the law. 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 .

Wet Weather

Members Provide Input on Great Lakes CSO Notification

NACWA hosted a call May 25 with Member Agencies that have combined sewer overflow (CSO) discharges into the Great Lakes and key EPA staff to discuss CSO notification procedures and costs. EPA is required by language in the Agency’s Fiscal year 2016 appropriations bill to develop public notice requirements for CSOs into the Great Lakes, with implementation required by December 2017 (see Advocacy Alert AA 15-20 for more information).  The call provided an opportunity for utilities to provide information for EPA to consider as it drafts the notification requirements, including current practices that utilities use to monitor and model CSOs and the additional costs for expanding these systems. Read the full story in 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 .

Resources, Upcoming Events and Comment Periods

• Register now for NACWA's 2016 Utility Leadership Conference, Leadership Strategies for the Smart Utility, July 10 – 13 in Denver, CO.
• EPA’s final draft of its Environmental Justice (EJ) 2020 Action Agenda lays out the Agency’s plans over the next five years to incorporate EJ concerns into its actions and rulemakings. EPA is accepting comments until July 7th -- any NACWA members with thoughts or input for NACWA’s comments should contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .