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February 10, 2006 NACWA Fax Alert

Member Pipeline - Fax Alerts - February 10, 2006

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February 10, 2006

FY 2007 Budget Proposal Seeks Deep Cuts to CWSRF, New NPDES Fees
The Bush Administration proposed this week to dramatically cut clean water funding in its Fiscal Year (FY) 2007 budget for EPA by over $300 million (from FY 2006’s enacted level of $7.625 billion to $7.31 billion). The vast majority of this reduction would be achieved by a proposed cut of approximately $200 million (from $887 million to $687 million) to the Agency’s Clean Water State Revolving Fund (CWSRF) program. The request makes it likely that this will be the third consecutive year that the CWSRF will be dramatically cut — a clear trend toward the ultimate phase-out of this important program. While NACWA believes that improved utility management and rate increases at the local level are critical to addressing these projects, the Association is also calling on Congress and the White House to support the recently introduced Clean Water Trust Act of 2005, H.R. 4560 (http://www.nacwa.org/private/legreg/legalrts/la06-1.cfm). H.R. 4560 would create a deficit-neutral trust fund that will help guarantee a sustainable and shared federal-state-local investment in clean water and would also secure increased funding for the CWSRF. In response to the Administration’s proposed budget cuts, NACWA distributed a press release (http://www.nacwa.org/advocacy/releases.cfm#cmt) this week to over 1,000 media contacts opposing these cuts and citing the need for a federal recommitment to clean water.

In addition to the proposed cuts to the CWSRF, the FY 2007 budget request tasked EPA with proposing a rule, by December 31, 2006, that would provide financial incentives to states that begin charging fees or improve their existing fee structure when processing National Pollutant Discharge Elimination System (NPDES) permits. The White House assessment of EPA's water pollution grants notes that only 35 of 45 states that are delegated with responsibility for implementing the NPDES program charge fees. According to Benjamin Grumbles, EPA’s Assistant Administrator for Water, these increased fees, much of which would come from municipal POTWs, would free up federal funding under Clean Water Act Section 106 to be used for its intended purposes — water quality monitoring and other clean water programs — as opposed to administrative costs. The Association will be working closely through its committee structure to respond to concerns associated with the FY 2007 budget proposal and work to ensure that clean water projects receive the necessary funding to provide the public with clean and safe water.

NACWA Submits Comments to EPA on Air Emission Standards for Dry Cleaning Facilities
NACWA submitted comments (http://www.nacwa.org/advocacy/releases.cfm#cmt) this week to EPA on the Agency’s proposed amendments to the National Perchloroethylene (PCE) Air Emission Standards for Dry Cleaning Facilities. Following a review of EPA’s amendments, NACWA feels that the Agency is overlooking a potential exposure pathway for PCE from dry cleaning facilities. The Agency concluded that once PCE is emitted to the atmosphere as a vapor the major exposure pathway is primarily inhalation. In it comments, NACWA voices concern that during the distillation process to recycle PCE, separator water is generated which may contain PCE in meaningful quantities. If discharged to the sewer system, the PCE could reach groundwater through exfiltration providing an alternative pathway for exposure. Representing the interests of responsible environmentalists, the Association has requested that EPA review these statements and ensure they are scientifically sound and accurate.

Apply by March 17 for NACWA’s 2005 Peak Performance Awards
NACWA urges member agencies to apply for its 2005 Peak Performance Awards Program. This program recognizes member agency facilities for excellence in wastewater treatment as measured by their compliance with their National Pollutant Discharge Elimination System (NPDES) permit requirements. Applications for the 2005 Peak Performance Awards Program are due by March 17, 2006. For more information on the program and how to apply, refer to Member Update 06-02 (http://www.nacwa.org/private/membcomm/memupdate/mu06-02.cfm).