Member Pipeline - Legislative - September 2003 Update

To:	Members, Affiliates, Legislative Policy Committee, Legal Affairs Committee, Wastewater Infrastructure Funding Task Force
From:	National Office
Date:	October 8, 2003

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This edition of the Association of Metropolitan Sewerage Agencies’ (AMSA) Legislative Update, current through October 8, 2003, provides an overview of the disposition of bills of interest to the nation’s publicly owned treatment works (POTWs) in the 108th Congress. For more detailed information regarding AMSA activities related to specific legislation, click on the web links at the end of selected news items, or contact AMSA’s Lee Garrigan at 202/833-4655 or lgarrigan@amsa-cleanwater.org.

AMSA members can track congressional action on individual bills through AMSA’s Bill Tracker. The Tracker provides a direct link from AMSA’s web site to congressional web sites where bill texts and summaries are posted, allowing members to research relevant federal legislation. The site also includes the status and most recent action taken on all federal legislation through a link to the Library of Congress’ “Thomas” web site. To renew or bookmark the Bill Tracker, go to http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

Wastewater Security

AMSA Asks Senators to Vote on Wastewater Security Bill
The U.S. Senate returns to work on Capitol Hill October 14 to try to complete its unfinished business before the end of the month. AMSA’s top issue is the passage of the Wastewater Treatment Works Security Act of 2003 (S. 1039), which won approval in the Senate Environment and Public Works (EPW) Committee in May. The committee report (Senate Report No. 108-149), which must accompany the bill to the floor, contains both supporting and minority views. EPW Chairman James Inhofe (R-OK) tried unsuccessfully in September to place the bill on the consent calendar for a vote. Committee Democrats, led by EPW Ranking Member James Jeffords (I-VT), refused to agree that the bill should be placed on the calendar.

AMSA has responded with an October 1 letter to the nine opposing Senators and has issued a ‘Call to Action’ to AMSA wastewater agencies in the Senators’ nine states. Other municipal organizations and interested stakeholders are being enlisted to phone and email the Senators in an effort to break Jeffords’ unofficial hold on the bill. A joint municipal letter urging a Senate vote this month was signed by the National League of Cities (NLC), the National Association of Counties (NACo), the National Association of Towns and Townships (NATaT), The American Public Works Association (APWA), the Association of Metropolitan Water Agencies (AMWA), and AMSA and was delivered to the full Senate on September 10. AMSA has been working to pass the legislation into law for over two years and is encouraged by Senator Inhofe’s continuing commitment to move the bill to the Senate floor as soon as possible.

AMSA also is preparing a strong editorial calling for bipartisan passage of the measure and will submit it to the Washington, DC newspapers for publication. AMSA believes a vote this month is critical to securing the necessary appropriations in fiscal year 2004 to the fund S. 1039. The Senate bill is nearly identical to H.R. 866, also titled the Wastewater Treatment Works Security Act of 2003, which cleared the House by a vote of 413 – 2 in early May.

The two bills would authorize $200 million for POTWs to conduct vulnerability assessments and to pay for enhanced security at their facilities. An additional $15 million would pay for technical assistance to small POTWs. Another $5 million would be made available to the U.S. Environmental Protection Agency (EPA) to make grants to nonprofit organizations for the improvement of vulnerability self-assessment methodologies and tools for POTWs. That provision could potentially fund upgrades to and training on AMSA’s Vulnerability Self Assessment Tool (VSAT™) software over the coming years. Before S. 1039 was approved by the EPW Committee, Senator Jeffords succeeded in adding an additional $15 million to the Senate bill for EPA to research new security technologies at wastewater treatment plants.

To view or download copies of S. 1039, H.R. 866, and the committee reports, go to AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm. A copy of the October 1 AMSA letter and sample POTW letter are in the Legislative Correspondence and Outreach section at http://www.amsa-cleanwater.org/private/leg_outreach.cfm.

Committee Vote Expected on Chemical Security Bill
Senate Environment and Public Works Committee (EPW) Chairman James Inhofe (R-OK) said that a bill he and Senator Zell Miller (D-GA) introduced on behalf of the Bush administration in early May, the Chemical Facilities Security Act of 2003 (S. 994), will be marked up by the full committee before the end of October. The bill requires vulnerability assessments by as many as 15,000 chemical facilities that currently are required to submit to the U.S. Environmental Protection Agency (EPA) Risk Management Plans (RMPs) under Section 112(r) of the Clean Air Act. Approximately 30 percent of AMSA member agencies would be subjected to the requirements of a chemical security bill.

Inhofe’s bill would require affected facilities to conduct vulnerability assessments and develop and implement site security plans. Chemical facilities would certify in writing to the Secretary of the Department of Homeland Security (DHS) that the owner or operator has complied with the requirements of the legislation. The Secretary of DHS would have the discretion to accept vulnerability assessments and plans prepared under other laws to satisfy S. 994’s certification requirement. This could allow chemical facilities that previously completed and submitted assessments to other government agencies to receive an exemption from having to repeat the process under the new chemical security law. If the Senate passes the Wastewater Treatment Works Security Act of 2003 (S. 1039), AMSA members that complete vulnerability assessments under that bill would likely be able to submit the same assessment to DHS to satisfy the requirements of S. 994.

Inhofe decided to move the bill after reportedly reaching agreement with committee member Senator Lincoln Chafee(R-RI) on bill language that would encourage facilities to consider the use of less toxic alternatives or safer technologies. According to the Natural Resources Defense Council (NRDC), environmentalists oppose the Inhofe bill because facilities would not be required to substitute safer alternatives for toxic substances that could be released into the environment during an attack.

The bill twice was scheduled for committee action – on May 15 and October 1 – but was pulled from the business agendas to allow more time for committee Democrats to consider a competing proposal by Sen. Jon Corzine (D-NJ). Corzine’s proposed chemical security legislation from last year was reintroduced early this year by Senate Democrats and included as Title XI of the Comprehensive Homeland Security Act of 2003 (S. 6). It also was proposed separately as the Chemical Security Act of 2003 (S. 157). The Senate EPW Committee unanimously approved last year’s Corzine bill but the chemical industry strongly opposed a mandate to submit vulnerability assessments and response plans to the U.S. Environmental Protection Agency.

In the House, Rep. Frank Pallone, Jr. (D-NJ), a senior member of the House Energy and Commerce Committee, introduced April 29 the Chemical Security Act of 2003 (H.R. 1861). The measure is companion legislation to Senator Corzine’s bill and requires EPA and DHS to work together to identify high priority chemical facilities. Once identified, facilities on the list would be required to conduct a vulnerability assessment and develop and implement a plan to improve security and use safer technologies within 18 months.

AMSA supports the approach taken by Senator Inhofe in S. 994 and opposes the requirements in the Corzine and Pallone bills. Copies of S. 994, S. 6, S. 157 and H.R. 1861 can be found on AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

Clean Water Funding

Infrastructure Grabs Attention of Lawmakers
The Congressional debate this month over the Bush Administration’s $20 billion proposal to reconstruct Iraq has some lawmakers calling for the funds to be spent on infrastructure needs at home to spur job creation and give the U.S. economy a boost. At a Capitol Hill press conference, attended by AMSA in early September, the American Society of Civil Engineers (ASCE) released a progress report on their 2001 Report Card for America’s Infrastructure. The Report Card grades 12 separate categories of infrastructure. According to the progress report, the condition of the nation’s wastewater infrastructure has declined since the Report Card was published in 2001.

Several U.S. Representatives made statements at the event in favor of a bigger federal investment in infrastructure to create jobs, including House Water Resources and Environment Subcommittee Chairman John J. Duncan, Jr. (R-TN), Representative James Oberstar (D-MN), the Ranking Democrat on Transportation and Infrastructure (T&I) Committee and Rep. Tom Petri (R-WI), Chairman of the Highways, Transit and Pipelines Subcommittee.

Rep. Oberstar, along with Congressmen Jerry Costello (D-IL), Earl Blumenauer (D-Ore.), and other Democrats on the T&I Committee introduced a $50 billion public works bill in June that includes funding for wastewater infrastructure. The members claim the legislation would create 2.3 million jobs and $310 billion in economic activity over the next two years. The House legislation gives priority to projects that can award bids within 90 days of enactment to inject money into the economy quickly. Titled the Rebuild America Act of 2003 (H.R. 2615), the bill includes nearly $13 billion for wastewater, drinking water, wet weather overflow and Army Corps of Engineers projects.

In the Senate, California Democratic Senator Dianne Feinstein and Senator Richard Durbin (D-IL) introduced in July the Rebuild America Act of 2003 (S. 1409), a bill to provide funding for infrastructure investment and to create jobs in the U.S. The $50 billion bill includes $8.5 billion for the Clean Water Act state revolving fund program, $1.5 billion for wet weather projects, and $1.5 billion for the Safe Drinking Water Act state revolving fund program.

Meantime, Senate Republicans are considering bundling a number of existing bills into a large jobs package for introduction before the end of the month. The package could include the energy bill, the highway bill, asbestos reform and other legislation. Jobs creation will be the top issue for the remainder of the session according to Senator Rick Santorum (R-PA), Senate Republican Conference Chairman. To read S. 1409 and H.R. 2615, log-on to AMSA’s website and go to the Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

Davis-Bacon Sidelines Wastewater Funding Bill
Action has been delayed indefinitely on the Water Quality Financing Act of 2003 (H.R. 1560) which was passed by the Water Resources and Environment Subcommittee of the House Transportation and Infrastructure (T&I) Committee in July. The bill, introduced by T&I Chairman Don Young (R-AK) and Subcommittee Chairman John J. Duncan, Jr. (R-TN), received unanimous approval by the panel. Although H.R. 1560 was scheduled a week later for mark-up in the full T&I Committee, it was pulled from the agenda after Chairman Young instructed staff to ask interested parties to work out their differences over a Davis-Bacon Act prevailing wage provision that was expected to be added to the bill during the markup. Committee staff say that Chairman Young does not want to mark up the measure until he has assurances from the House leadership that the bill will be moved to the floor for a final vote. Last year’s bill, H.R. 3930, was voted out of the T&I Committee with a Davis-Bacon Act amendment but never reached the House floor.
H.R. 1560 would, among other things: 1) authorize $20 billion over five years to capitalize the clean water state revolving funds, 2) authorize $1 billion over four years for sewer overflow control grants, 3) require states to use at least 15 percent of the state grants to provide assistance to communities with populations of less than 20,000, 4) require all loan applicants to certify to the state that they have analyzed the cost and effectiveness of alternative management and financing approaches, including rate structures, issuance of bonds, restructuring, regional alternatives, consolidation, and public-private partnerships, 5) develop and implement a fiscal sustainability plan that includes an inventory of critical assets, evaluation of the condition of assets, and a plan for maintaining and replacing assets, and 6) provide subsidization to disadvantaged communities through 30-year repayment periods, forgiveness of loan principal, and negative interest loans.

AMSA staff, along with other members of the Water Infrastructure Network (WIN), continues to meet with Representatives and their staff to reinforce the importance of the bill to the creation of jobs, the environment and the health and safety of the nation’s communities. H.R. 1560 can be found on AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

In the Senate, EPW Committee Chairman James Inhofe (R-OK) has directed his staff to take a new approach in writing a water and wastewater infrastructure funding bill that will amend the Clean Water Act and Safe Drinking Water Act state revolving fund programs. According to committee staff, a new bill will not be introduced until next year.

Senators Reed, Voinovich Tap Fines and Penalties to Create New Fund
The National Clean and Safe Water Fund Act of 2003 (S. 1539), sponsored by Senators Jack Reed (D-RI) and George Voinovich (R-OH), would establish a new fund in the U.S. Treasury utilizing money collected from fines, penalties, and other enforcement actions under the Clean Water and Safe Drinking Water Acts. The Senators report that the Treasury collected civil and criminal penalties in fiscal year 2002 amounting to nearly $52 million. A broad array of water quality projects would be eligible for funding under S. 1539, including water conservation, wetland protection, contaminated sediments, source water protection, stream buffers, combined sewer and sanitary sewer overflows, agricultural best management practices, and decentralized stormwater and wastewater treatment projects. Although AMSA staff met with the Senators and their staff during the writing of the bill, the Association will not take an official position on S. 1539. The text of the bill is available on AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

Budget and Appropriations

The House and Senate passed a continuing resolution September 25 that will fund federal government agencies at fiscal year (FY) 2003 levels through October 31. Although the House approved all 13 of its FY 2004 appropriations bills by early September, the Senate still must vote on six of its bills.

EPA Funding Bill Ready for Senate Floor
The Senate Appropriations Committee has approved the VA-HUD & Independent Agencies appropriations bill (S. 1584) for FY 2004, including $8.18 billion for the U.S. Environmental Protection Agency (EPA). The bill and report (S. Rpt.108-143) now head to the Senate floor for full debate. The bill funds the Clean Water State Revolving Fund at $1.35 billion, the same as fiscal year 2003 and $500 million more than the Bush Administration request. Funding for the Drinking Water State Revolving Fund would remain constant at $850 million. An additional $130 million was tacked onto the measure to fund 187 targeted grants for specific water, wastewater and stormwater grants. As in years past, the Senate Appropriations Committee declined to include in the bill $1 million for the AMSA-supported National Biosolids Partnership. AMSA does not expect the exclusion to prevent the funding from being included in a final House-Senate conference report.

In the bill’s report, Maryland Senator Barbara Mikulski, ranking Democrat on the VA-HUD Appropriations Subcommittee included a requirement for EPA to complete a study on “jobs created by water infrastructure funding.” Labor unions and others have reported in the past that up to 42,000 jobs are created for every $1 billion invested in infrastructure.

House Agrees to AMSA Request for $1 Million for the National Biosolids Partnership
The House approved in July $8 billion for the EPA in its FY 2004 bill (H.R. 2861). The EPA budget is about $100 million less than the current fiscal year. The largest cut was made to the clean water state revolving loan fund, which will receive $1.2 billion, down from $1.35 billion in recent years. Language in the accompanying House report (H. Rpt. 108-235) further instructs EPA to direct the states to make $68 million of the $1.2 billion available for interest-free loans for nonpoint and non-structural, decentralized alternatives to conventional treatment options.

Lawmakers successfully included in the bill AMSA’s request for $1 million to fund the activities of the National Biosolids Partnership (NBP) for next year. AMSA members were instrumental in obtaining the funding through the letters they wrote urging their Members of Congress to support another $1 million for the NBP. Other funding includes $850 million for the safe drinking water revolving loan fund, $2 million for the Water Information Sharing and Analysis Center (Water ISAC), run by the Association of Metropolitan Water Agencies (AMWA), and $180 million for 376 special targeted grants to communities for the construction of drinking water, wastewater and storm water infrastructure and for water quality protection.

To review the funding levels for EPA programs for FY 2004, please read the House and Senate Reports that accompany H.R. 2861 and S. 1584. You can access them through AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

Environmental Protection Agency

Senate Democrats Boycott Leavitt Confirmation Vote
Utah Governor Mike Leavitt’s (R) nomination to become the next head of the U.S. Environmental Protection Agency (EPA) hit a serious roadblock October 1 when Democrats on the Senate Environment and Public Works (EPW) Committee blocked a vote by boycotting the committee’s business meeting. The unprecedented move came after the Democrats did not receive answers to all of nearly 400 questions submitted to Governor Leavitt prior to his confirmation. The two previous EPA Administrators, Carol Browner, President Clinton’s nominee and Christine Todd Whitman, President Bush’s first Administrator, received only 67 and approximately 100 questions, respectively.

In an effort to proceed with a vote on Governor Leavitt, EPW Chairman James Inhofe (R-OK) has rescheduled votes on the nomination for October 15, 16 and 17. Inhofe also has offered his help in gathering answers to the Democrats’ questions. Four Democrats have indicated they will place procedural ‘holds’ on Leavitt’s confirmation vote, thus preventing it from reaching the Senate floor.

Administration Supports Elevating EPA to Cabinet Department
Acting EPA Administrator, Marianne Lamont Horinko and James L. Connaughton, chair of the White House Council on Environmental Quality, testified September 9 before a House Government Reform Subcommittee on Energy Policy, Natural Resources and Regulatory Affairs that the Bush administration supports the majority of a bill that would raise the status of the EPA from an agency to a cabinet-level department. The Department of Environmental Protection Act (H.R. 2138) redesignates the EPA as the Department of Environmental Protection, to be headed by a Secretary of Environmental Protection to be appointed by the President.

The bill also provides for other officials, including three under-secretaries for: (1) science and information; (2) policy, planning, and innovation; and (3) implementation, compliance and enforcement, and establishes the Bureau of Environmental Statistics within the Department. The bill was introduced by Subcommittee Chairman Doug Ose (R-CA) in May.

Acting EPA Administrator Horinko also voiced support for House Science Committee Chairman Sherwood Boehlert’s (R-NY) bill, H.R. 37. Despite hearings on both bills this year, neither has been scheduled for markup. To read copies of H.R. 2138 and H.R. 37, go to AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

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