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This edition of the National Association of Clean Water Agencies’ (NACWA) Legislative Update, current through August 10, 2009, provides information on the activities of the 111th Congress of interest to the nation’s publicly owned treatment works (POTWs).  For more detailed information regarding NACWA activities related to specific legislation, click on the web links in selected news items, visit NACWA’s website, or contact Pat Sinicropi at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or (202) 533-1823.  Because Congress is on recess for the month of August, the next Legislative Update will be in September.

Top Stories

NACWA Applauds Introduction, Testifies in Support of $60-Billion Water Trust Fund Bill

Legislation that would establish a clean water trust fund, paid for by fees on various types of products, was introduced July 14 by Reps. Earl Blumenauer (D-Ore.) Steve LaTourette (R-Ohio), Norm Dicks (D-Wash.), Mike Simpson (R-Idaho),  and Thomas E. Petri (R-Wis.).  The Water Protection and Reinvestment Act of 2009  (H.R. 3202) would assess fees on a broad base of industries that use water and/or contribute to the waste-stream.  These sources include a 4 cent per container excise tax on water-based beverages; a 3-percent excise tax on items disposed of in wastewater, such as toothpaste, cosmetics, toilet paper and cooking oil; a 0.5-percent excise tax on pharmaceutical products; and a 0.15-percent tax on the incomes of corporations with profits of over $4 million a year.  Almost half of the funding from the trust fund would be distributed as grants and loans through the existing clean water state revolving fund (CWSRF), while about one-third of the funding would be distributed as loans through the drinking water state revolving fund (DWSRF).  The remaining funding would support a number of key efforts that address security, climate change mitigation and adaptation, sewer overflow control, research, workforce development, and drug take-back initiatives.  NACWA released a detailed analysis of the bill in its Legislative Alert 09-16.  NACWA also issued press releases applauding the introduction of the bill, and several media outlets ran stories.
 
The Association participated in a press conference with Reps. Blumenauer, LaTourette, and Petri as well as with several members of the Water Infrastructure Network (WIN), which, like NACWA, has also been instrumental in generating support for the bill.  Later in the day, the House Transportation and Infrastructure (T&I) Subcommittee on Water Resources and Environment held a hearing on the opportunity and challenges of a water trust fund.  Tom Walsh, engineer-director of the Upper Blackstone Water Pollution Abatement District, a NACWA member agency in Massachusetts, testified  in support of the bill on behalf of NACWA, saying that a trust fund was needed to address the infrastructure funding crisis and pointing out that his own utility has had to raise rates 450 percent since 2000 to cover the debt service on upgrades to its treatment plant.  “We must remove water infrastructure investment from the realm of uncertain annual appropriations and focus on a dedicated funding stream,” he said.

Introduction of the bill came on the heels of a report  released recently by the Government Accountability Office (GAO) analyzing revenue sources that could raise up to $10 billion per year.  NACWA released a detailed analysis July 1 of the report in its Legislative Alert 09-15.  The sources include fees on bottled beverages, “flushables,” pesticides and fertilizers, pharmaceuticals, a permit fee on industrial dischargers of certain toxic chemical pollutants, and a clean water restoration fee similar to what is available as part of the superfund program.  NACWA supports revenue sources that are fair, equitable, and firewalled from any other uses, keeping in mind that municipalities currently shoulder approximately 95 percent of water infrastructure funding costs.  NACWA issued a press release when the report came out expressing appreciation to the members of Congress for requesting it, and pointing out why a trust fund is so important to the clean water community.  

H.R. 3202 marks a major milestone for NACWA, its Clean Water Funding Workgroup, and WIN, all of whom have worked hard over more than a decade advocating for legislation creating a trust fund, similar to those that exist for highways and airports.  The Association will continue working closely with the sponsors of the bill to generate more support and will keep its members informed as this important effort moves forward. 

NACWA Member Involvement . . . Next Steps
NACWA will need your continued support and advocacy efforts to move forward with H.R. 3202.  As such, NACWA encourages its members to distribute copies of the bill and supporting materials contained in Legislative Alert 09-16 to local, state and federal officials, as well as to local and state stakeholder groups.  It is critical that as broad an array of groups and individuals learn about, and lend their support to, this effort.

NACWA members are encouraged to meet with their congressional delegations and staff in their District and State offices to explain the importance of this legislation to the future integrity of the nation’s wastewater infrastructure.  An effort is now underway by NACWA and other supporting organizations to recruit Representatives as cosponsors of the bipartisan bill and to advocate for similar legislation in the Senate.

In the coming weeks, NACWA will also make available to member utilities an array of educational materials to be used at the local level to generate support for the bill on its Clean Water Funding Network website, www.cleanwaterfunding.org. These materials will include sample letters to be sent to your federal Representatives, press kits, and other outreach tools.

Appropriations and Funding

Senate Poised to Consider $40 Billion SRF Bill After August Recess

Momentum also continues to build on legislation to reauthorize the clean water and drinking water state revolving loan funds (SRFs), with the leadership of the Senate Environment & Public Works (EPW) Committee expressing its intent to move the Water Infrastructure Financing Act (S. 1005)  to the Senate Floor soon after the August Recess.  NACWA and other members of WIN are reaching out to key Senators to encourage their support for the bill, which provides approximately $40 billion for the clean water and drinking water state revolving loan funds (SRFs), as well as grant programs for sewer overflow control and Great Lakes funding.  The bill also updates the allocation formula for distributing the funds to the states. 

Should the bill go to the Senate floor it would mark the most progress on Clean Water Act reauthorization legislation since 1987 — the year the loan program was created.  If the Senate approves the bill, which appears likely to occur given the broad support for this legislation, it would then proceed to conference for reconciliation with the House-passed CWSRF funding bill.   Because the Senate bill contains provisions for the DWSRF and the House bill does not, the House Energy and Commerce Committee that has jurisdiction over the Safe Drinking Water Act would need to agree to conference the bill with their House and Senate colleagues, or introduce and move separate legislation.  Discussions are ongoing among staff for the House Transportation and Infrastructure Committee and Senate Environment and Public Works Committee to urge Energy and Commerce Committee to join the conference without separate legislation.  Once it is scheduled for floor consideration, NACWA will be sending an Alert out to its members regarding this important legislative effort and how its members can help get this bill over the finish line.

NACWA Members Provide Key Input On Stimulus Package, Inform Advocacy Priorities

With the Feb. 17, 2010, deadline looming for American Recovery and Reinvestment Act of 2009 (ARRA or stimulus package) funds to be spent, NACWA engaged approximately 20 public agency members in a conference call July 9 on the status of their ARRA projects.  This was one of a series of calls to help NACWA refine its advocacy strategy based on the latest information from its membership.  NACWA learned that states continue to have no single approach for funding stimulus package projects.  In Ohio, for example, NACWA members benefited from stimulus package funding, receiving half of their money in the form of low-interest loans and half in the form of principal subsidy/grants.  Members from Massachusetts also said they were receiving stimulus dollars and benefitted from the green infrastructure set-aside in the ARRA.  In California, Oregon, and Florida meanwhile, members from larger urban areas were largely passed over because their states were providing funds primarily to rural areas or funding projects that were already underway or previously on the state intended use plans (IUPs). 

There was a general agreement on the call that, to the extent the stimulus package does not achieve its “job creation/jobs saved” objectives, it will be important to examine the manner in which states distributed the funds, especially regarding the lack of an urban focus.  NACWA members also expressed concerns about the Buy American provisions, which prevented certain projects from moving forward due to concerns that the requirement could not be met in a timely fashion. On Capitol Hill, the issue of Buy American is garnering increased attention as the success of the stimulus package is scrutinized.  NACWA intends to continue to hold these calls on a regular basis and will keep members informed as developments occur.

Clean Water Funding Network Updates Members on Key Activities

The newly created Clean Water Funding Network, a web-based forum created by NACWA to generate broad grassroots support for, and to help shape, funding initiatives making their way through Congress, also hosted the first two of its monthly conference calls this month to update members on the latest activities in Washington.  The calls provided an overview of the network, tools that can help a local utility’s communication efforts such as a list of news items from the national, state, and local levels; and, a discussion blog that is password-protected.  So far the website has more than 45 members.  Public utilities, including those that are not members of NACWA, are encouraged to join.  The network is a way that NACWA can reach out to a broad-based group of people and organizations to solicit their support and assistance in advocating for more clean water funding.  Calls will be held on the third Tuesday of the month at 2 p.m. EDT.  The topic to be addressed in August will be How to Reach Out to Your Member of Congress to Support Infrastructure Funding Legislation.  Other potential topics include how to work with local stakeholders to build support for federal clean water funding; state clean water trust funds – how did they get started?;  updating stakeholders on the 2009 construction season; 2010 needs and federal funding; and, how to draft letters to editor and trade press articles.  More information is available from NACWA’s This e-mail address is being protected from spambots. You need JavaScript enabled to view it by email or at (202) 833-3280 or from This e-mail address is being protected from spambots. You need JavaScript enabled to view it , of Perras and Associates at 317-407-0148.

Beach Act

House Passes BEACH Act Bill

Legislation reauthorizing the Beaches Environmental Assessment and Costal Health Act (BEACH Act) was passed by the U.S. House of Representatives July 29.  Specifically, the legislation reauthorizes the BEACH Act and requires states to establish a monitoring and notification program for coastal recreational waters, including the Great Lakes.  The bill revises state monitoring and notification requirements to include a six-hour rapid test method to detect pathogen levels; requirements for reporting water quality violations to public health officials within two hours of getting the results; measures to ensure closures or advisories are made within two hours of learning of the violation; and measures that inform the public of potential sources of the contamination.  NACWA worked with the committee staff to increase the amount of time provided to complete the rapid test method and to include language in the committee report that clarifies that the testing requirements under this legislation apply only to monitoring programs authorized under this Act and not to testing methods required under the general NPDES permitting process.  The Senate EPW Committee passed similar legislation in June with a rapid test method requirement of four hours, although the full Senate has not yet approved a bill.  NACWA will continue to work with congressional staff to ensure that the final bill includes the lengthier six-hour rapid test method and addresses its members concerns.

Security

NACWA Meets With House Environment Panel to Discuss Wastewater Security Bill

NACWA continues to meet with staff of the House Transportation & Infrastructure Committee to discuss plans to move the Wastewater Treatment Works Security Act of 2009  (H.R. 2883) establishing a wastewater security program at EPA.  H.R. 2883 was introduced by Rep. Eddie Bernice Johnson (D-Texas), chair of the T&I Subcommittee on Water Resources and Environment, in response to legislation making its way through the House Homeland Security Committee and the House Energy and Commerce Committee that would divide federal oversight of security issues at drinking water and wastewater facilities between two different federal agencies – the Department of Homeland Security (DHS) and the EPA.  The Chemical Facility Antiterrorism Act of 2009  (H.R. 2868), which was approved by the House Homeland Security Committee in June, would direct that security of wastewater treatment facilities fall under DHS, while the Drinking Water System Security Act of 2009   (H.R. 3258), H.R. 3258 would place the protection of drinking water facilities within the jurisdiction of EPA.

NACWA worked closely with T&I staff as they developed and introduced H.R. 2883, arguing that dividing oversight for security issues at drinking water and wastewater facilities between these two federal agencies is untenable and that wastewater utilities should be under the jurisdiction of EPA, just as drinking water facilities are.  The Association is now working through its Security & Emergency Preparedness and Legislative Policy Committees to provide comments to staff as they work to further modify H.R. 2883 in a way that incorporates many of the concepts found in the drinking water security bill (H.R. 3258).  This will make certain that that drinking water and wastewater utilities are not subject to two different systems of regulation by EPA.  The T&I Committee plans to mark up the legislation after the August recess.

Passage of Water Sector Security Bill Likely Pushed Back Until Next Year
Meanwhile, Sen. Joseph Lieberman (I-Conn.), chair of the Senate Homeland Security and Government Affairs Committee, has confirmed that the Senate is unlikely to take up its own version of legislation to reauthorize the Chemical Facility Anti-Terrorism Standards (CFATS) program before the end of the year.  As a result, the House and Senate Appropriations Committees have included provisions to extend DHS’ Chemical Facility Anti-Terrorism Standards (CFATS) program  in its current form for one year in their respective FY 2010 DHS funding bills.  NACWA will continue to advocate for sensible security regulations and will keep members apprised of important developments as they happen.