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October 10, 1997

EPA's Stormwater Phase II FAC Discusses Proposed Rule
On Oct. 6 - 7, EPA's Stormwater Phase II Federal Advisory Committee (FAC) met to discuss several remaining concerns with the EPA's soon-to-be-published proposed Stormwater Phase II rule. The proposal outlines a program to regulate all small municipal separate storm sewer systems located within any incorporated place, county, or place under jurisdiction of a governmental entity within a U.S. Census-designated "urbanized area," and small construction sites (one to five acres.)

Attending municipal organizations, including AMSA, were especially concerned with the addition of language that would require permittees to attain water quality standards, even if urban stormwater is not the sole source of impairment. EPA indicated that it may be willing to reword the proposal to state that permittees are only responsible for their contributions to water quality impairment.

EPA's draft economic analysis for the Phase II program estimates the total annual national cost at $131 to $494 million. Committee members harshly criticized EPA for inaccurately modeling the cost of the program citing that the cost-model does not reflect the cost of complying with a Phase II permit as defined in the proposal; does not include monitoring costs; inaccurately applies per capita costs from Phase I cities; excludes capital cost of equipment; and applies several other inadequate assumptions. EPA plans revisions and will solicit additional comments on the cost/benefit analysis when the rule is proposed.

The Office of Management and Budget is currently reviewing the proposed rule, which is expected to be signed by the Administrator on Nov. 25, 1997. The rule is scheduled to be finalized March 1, 1999, with permit applications due for small municipalities no earlier than May 31, 2002. EPA plans to reevaluate the rule after two permit cycles in the year 2012.

EPA Proposes Performance Index for Enforcement and Compliance Assurance
EPA's Office of Enforcement and Compliance Assurance held a Capstone Conference on Oct. 7 to hear from stakeholders regarding a proposed framework for an enhanced set of performance measures for enforcement and compliance assurance. The proposed framework includes fourteen sets of performance measures embodied under three major categories: impact on environmental and noncompliance problems, effects on behavior of public or regulated entities, and enforcement and compliance assurance activities.

The plan for use and implementation of enhanced performance measures was developed over the past year through extensive consultation with stakeholders, including AMSA, regulatory partners, and internal managers. Public comment on the proposed strategy will be accepted by EPA through October 17. AMSA will distribute copies of the final document following its release in early November. EPA plans to conduct pilot projects and partnership agreements during 1998.

House Approves FY 98 Spending Bill for EPA
On Oct. 8 and 9, the House and Senate respectively approved the fiscal year 1998 spending bill for the EPA at $7.4 billion, an increase of approximately $500 million over 1997. The bill includes $1.35 billion for Clean Water State Revolving Funds, $725 million for the Safe Drinking Water State Revolving Fund, and $235 million for special projects.