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October 2009 Legislative Update

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To: Members & Affiliates,
Legislative Policy Committee, Legal Affairs Committee, Clean Water Funding Task Force
From: National Office
Date: November 6, 2009

 

This edition of the National Association of Clean Water Agencies’ (NACWA) Legislative Update, current through October 31, 2009, provides information on the activities of the 111th Congress of interest to the nation’s publicly owned treatment works (POTWs).  For updated information on Chemical Security and Climate Change please refer to the Clean Water Current for the week of Friday, November 6.  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.

 

Top Stories

 

NACWA Shapes Climate Change Debate through Testimony, Key Report with AMWA 

This month saw further action on climate legislation in the Senate.  Senator Barbara Boxer (D-Calif.), Chair of the Senate Environment and Public Works (EPW) Committee and co-sponsor of S. 1733, The Clean Energy and American Power Act, reissued S.1733 with additional details on how auction proceeds will be distributed for various industrial sectors and programs identified in the bill.  The proposal recommends that in 2012 and 2013, 1.34% of distributed allowances shall be allocated to the states to be used for domestic adaptation purposes, including water/wastewater system adaptation (the proposal for which NACWA advocated), flood mitigation,  coastal adaptation, as well as for activities to reduce greenhouse gas emissions, including promoting state and local recycling programs. The number of allowances allocated for domestic adaptation ranges from 0.5% to 1.3% from 2012 through 2026 and will increase to 2.18% thereafter.  While this percentage is relatively small , it establishes a source of revenue for domestic adaptation purposes and is something we can build upon in the future.  The chairman’s mark kept many of the essential elements of the original version of the bill in place, including programs designed to assist with water/wastewater system adaptation, water efficiency and water research.  It also maintained the same approach to a cap and trade system for greenhouse gas reductions as was contained in the earlier version of the bill. 

Following release of the revised bill, Senator Boxer began hearings on the measure.  NACWA was pleased that it had an opportunity to testify jointly with the California Association of Sanitation Agencies (CASA) on October 28th.  CASA President, Ronald E. Young, General Manager of the Elsinore Valley Municipal Water Agency represented both organizations at the hearing and discussed the need to include adaptation funding for wastewater utilities in the legislation.  He also urged the Committee to include language in the package to enable wastewater utilities to participate in a national renewable electricity portfolio standard.   The testimony is available here icon-pdf.  The Senate EPW Committee is expected to report out the legislation prior to Thanksgiving recess next month.

In line with the hearing October 28, , NACWA and the Association of the Metropolitan Water Agencies (AMWA) released a report detailing the impacts climate change will have on wastewater and drinking water utilities and estimating the adaptation costs for these critical facilities to be between $448 -$944 billion through 2050. The report, titled Confronting Climate Change: An Early Analysis of Water and Wastewater Adaptation Costs, is available to download from the NACWA website icon-pdf.  The report is an early cost assessment of adaptations to address some of the likely impacts of climate change on the nation’s drinking water and wastewater utilities and is intended to provide policymakers and utility managers with a better understanding of the challenges faced by utilities as they work to ensure reliable water and wastewater services in the face of a changing climate.  The report will support NACWA’s advocacy efforts on Capitol Hill about the need for adaptation assistance for water and wastewater utilities.

 

NACWA Gains Oberstar Support of Trust Fund Concept

The Water Protection and Reinvestment Act of 2009 (H.R. 3202) gained momentum during the month as NACWA staff made significant gains in building support for the legislation on Capitol Hill.   As part of this effort, representatives from NACWA and the Water Infrastructure Network (WIN) met with Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) to press the Chairman for his support of the legislation.  At the same time, NACWA staff continued meeting with rank and file Members of the House of Representatives in an effort to continue to gain additional co-sponsors for the bill.

At the end of the month, NACWA leadership converged on Washington, DC to meet with Chairman Oberstar to discuss the need for a dedicated source of revenue for water and wastewater infrastructure projects.  NACWA President Kevin Shafer, Executive Director, Milwaukee Metropolitan Sewerage District and Marianne Bohren, Executive Director, Western Lake Superior Sanitary District, traveled to Washington on October 27 to discuss the need for a water trust fund  and thank the chairman for his efforts on working to increase wastewater infrastructure funding generally.  During these discussions, Chairman Oberstar agreed that due to budgetary limitations the current funding stream (reliance on general revenue) is inadequate to meet the growing needs of the water sector.   The Chairman also committed that he would work with Congressman Blumenauer (D-Ore.), NACWA and other stakeholders in creating and moving forward a trust fund during the 111th Congress.

In addition to this potential turning point in advancing the water trust fund , NACWA continued to meet with Members of the House in seeking additional co-sponsors for the bill.   In support of this effort, representatives from NACWA and other stakeholder groups met with over 50 offices in the House of Representatives.  As a result of these efforts, five additional Members of Congress agreed to sign on to the bill as co-sponsors, they include:  Congressman Dan Maffei (D-N.Y.); Gregorio Sablan (I-MP); Rush Holt (D-N.J.); Steve Kagen (D-WI) and Don Young (R-AK).  With the addition of these Members, the legislation now has a total of 22 co-sponsors including 5 Republican Members.

As staff in the national headquarters continues our efforts to build support for this legislation we encourage you to assist in these efforts by building support at the local level. To assist with these efforts, NACWA has made available an array of educational materials on its Clean Water Funding Network website, www.cleanwaterfunding.org. These materials include sample letters to be sent to your Representatives, press kits, and other outreach tools. Please contact NACWA’s Pat Sinicropi at (202) 533-1823 or John Krohn (202) 833-4655 for more information about this important effort.

 

Chemical Security Legislation Advances with Regulatory Fix

Legislation seeking to tighten chemical security protocols for private companies and public water utilities made significant progress during October as the House Energy and Commerce Committee approved the Chemical Facility Antiterrorism Act of 2009 (H.R. 2868) and the Drinking Water Systems Security Act (H.R. 3258).

Following approval of the bills, NACWA staff learned that House leadership would seek to expedite passage of H.R. 2868 after nearly two years of consideration.  With this information in hand, NACWA took the lead in working with other stakeholders to ensure the final bill included a wastewater title that placed wastewater security regulatory authority with the EPA, removing it from the purview of DHS and avoiding a duplicative regulatory scenario for agencies with drinking water and wastewater treatment responsibilities.  NACWA worked with majority staff from the House Transportation and Infrastructure Committee and led a coalition of stakeholders in engaging the Office of Speaker Nancy Pelosi (D-CA) to ensure this outcome.

Specifically, NACWA took the lead in drafting a sending correspondence that expressed the importance of reaching a resolution before House consideration.  The letter was signed by such influential organizations as the Association of Metropolitan Water Agencies (AMWA), the WaterReuse Association, the Association of California Water Agencies (ACWA), the Water Environment Foundation (WEF), the California Association of Sanitation Agencies (CASA) and the American Water Works Association (AWWA).  In addition, NACWA also met directly with the Speaker’s staff to follow up on this correspondence and to review strategy for floor consideration prior to consideration and passage.

As a result of these efforts, the House is expected to consider an amended version of H.R. 2868 in November that includes a title addressing wastewater treatment works security.  This new version, entitled the Chemical and Water Security Act of 2009, is expected to be considered during the first week of November.

Upon enactment, the legislation will bring a host of new requirements for utility managers to consider and implement.  Specifically, the bill would require any utility operating at or above 2.5 mgd to complete a Vulnerability Assessment (VA), Site Security Plan and Emergency Response Plan (ERPs) every 5 years or when a significant operational change is made at the POTW.  Facilities would also be required to examine the use of inherently safer technologies and submit these findings to their state primacy agency for review.  To assist with these new requirements, the legislation authorizes $1 billion in grants over a five year period that can be used to enhance the overall security of wastewater treatment facilities or to comply with the requirements of the Act.

Also occurring during the month, NACWA continued to discuss the legislation with minority staff from the Senate Homeland Security Committee.  Specifically, NACWA briefed minority staff on recent developments in the House, the expected schedule for floor consideration and also conveyed our priorities for the Senate to consider as the chamber begins its consideration of the proposal.  It is expected that the Senate Homeland Security Committee will begin drafting its companion bill shortly after House approval of H.R. 2868. As the process moves forward in the Senate, there may be some additional opportunities to impact language in a manner that further benefits NACWA members, such as on inherently safer technology language and the triggering qualifications for which utilities must perform VAs, security plans, and ERPs.  The Senate will likely not take up these issues seriously until next year but NACWA is working to ensure the legislation will account to the greatest degree possible for clean water agency concerns.

 

Appropriations and Funding

 

Senate Passes FY 2010 Interior Appropriations Bill Providing $10 Billion for EPA

Congress also approved in late October the Fiscal Year 2010 Interior Appropriations bill providing $10.3 billion for EPA, including significant funding for wastewater and water infrastructure projects.  Specifically, the legislation provides approximately $2.1 billion in funding for the Clean Water State Revolving Fund (CWSRF) and $1.39 billion for the Drinking Water State Revolving Fund (DWSRF).

The funding levels provided by the FY10 bill represent a significant increase from its 2009 counterpart.  In fact, the legislation includes an increase of approximately $1.98 billion for the State Revolving Funds in comparison to levels provided last year.  In 09, the DWSRF received only $829 million and the CWSRF garnered even less funding at $689 million.

One similarity between the funding provided in ARRA and in the recently approved FY 10 Interior Appropriations bill is the inclusion of a “carry-over” provision strongly sought by NACWA during the drafting of ARRA.  The provision directs states to provide at least 30 percent of CWSRF and DWSRF funds to eligible recipients in the form of principal forgiveness, negative interest loans, and/or grants.  This is in contrast to the normal term loans regularly provided by the SRFs.

The provision is viewed as being extremely helpful for economically challenged municipalities and utilities that otherwise might not be able to afford critical water infrastructure projects.  NACWA’s effort to include this provision in the ARRA is widely viewed as the impetus for this important and lasting change to the SRF program.

With strong passage numbers in the House and Senate, 247-178 and 72-28 respectively, it is anticipated that the legislation will be signed into law in the coming weeks by President Obama.

 

SRF Reauthorization Awaits Senate Consideration

Legislation to reauthorize the SRF continues to await action on the Senate floor as the Senate deals with competing priorities during a very active fall session.  This set of circumstances has resulted in a month’s long delay of the consideration of the Water Infrastructure Financing Act (S. 1005).

The legislation would increase the authorization levels for both the CWSRF and DWSRF to $40 billion while making a number of changes to the underlying program.  These changes include an increased emphasis on decentralized stormwater treatment practices, a revision of the state allocation formula, a recommendation that EPA update its combined sewer overflow affordability guidance, while also  including provisions that give  states the ability to offer more grants and other financing mechanisms that will benefit cash-strapped utilities.  The legislation would also fund additional grant programs for sewer overflow control and Great Lakes water quality improvement funding.

Since returning in September, the Senate—and Congress generally—has been focused on passage of the President’s comprehensive health care reform proposal which has lead to a continued delay in the consideration of S. 1005.

Once the bill is able to gain approval from the Senate, the legislation will need to be reconciled with its House counterpart, H.R. 1262,which passed in March 2009.

 

Recently Introduced Legislation of Interest

 

Each month the legislative update will include legislation of interest to our Members that has been recently introduced.  Should you have any questions, or wish to share your thoughts and opinions on any of the legislation shared in this section please do not hesitate to contact NACWA’s Pat Sinicropi at (202) 533-1823 or John Krohn (202) 833-4655.

S.1733     Clean Energy Jobs and American Power Act    30-Sep-09 Passed Committee
A bill to create clean energy jobs, promote energy independence, reduce global warming pollution, and transition to a clean energy economy. 

H.R.3650  Harmful Algal Blooms and Hypoxia Research and Control Amendments Act of 2009  25-Sep-09 
In Committee 
To establish a National Harmful Algal Bloom and Hypoxia Program, to develop and coordinate a comprehensive and integrated strategy to address harmful algal blooms and hypoxia, and to provide for the development and implementation of comprehensive regional action plans to reduce harmful algal blooms and hypoxia. 

S.1816       Chesapeake Clean Water and Ecosystem Restoration Act of 2009 20-Oct-09  In Committee
To amend the Federal Water Pollution Control Act to improve and reauthorize the Chesapeake Bay Program.

H.R. 3582  Chesapeake Clean Water and Ecosystem Restoration Act of 2009  20-Oct-09 In Committee
To amend the Federal Water Pollution Control Act to improve and reauthorize the Chesapeake Bay Program.

 

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