NACWA Legislative Update January 2006

This edition of the National Association of Clean Water Agencies’ Legislative Update, current through December 30, 2005, provides information on the activities of the 109th 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, or contact NACWA’s Lee Garrigan at 202/833-4655 or lgarrigan@nacwa.org.

NACWA advocates on behalf of its members before Congress. You can find individual bills through NACWA’s Bill Tracker (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm), which provides a direct link to congressional websites where bill texts and summaries are posted. You can find NACWA letters, statements, alerts, updates and related documents under Legislative (http://www.nacwa.org/private/leg_index.cfm) in the Member Pipeline section of the NACWA website.

CLEAN WATER FUNDING

NACWA Efforts Rewarded — Clean Water Trust Fund Bill Introduced in House
The final days of the first session of the 109th Congress brought good news for NACWA members as Representative John J. Duncan, Jr. (R-TN), Chairman of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment, introduced on December 15, 2005 the Clean Water Trust Act of 2005, H.R. 4560. The bill reauthorizes the funding portion of the Clean Water Act and sets up a federal trust fund to provide approximately $7.5 billion a year for five years to local communities to address clean water infrastructure needs. An overview of the bill and a one page flyer were sent via a Legislative Alert 06-01 (http://www.nacwa.org/private/legreg/legalrts/la06-1.cfm) to all NACWA members January 3, 2006. A copy of H.R. 4560 is available on NACWA’s Bill Tracker (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm). The introduction of the Clean Water Trust Act of 2005 is a major milestone in the funding effort led by the NACWA Clean Water Funding Task Force, whose ongoing work has been made possible by contributions from NACWA member utilities and affiliates.

Chairman Duncan’s bill incorporates nearly all of the key programs NACWA put forth in its draft trust fund legislation. The bill, however, is structured like the infrastructure funding legislation that the Chairman introduced in the 108th Congress (H.R. 1560), thereby merging the best parts of both bills. Significantly, the bill creates a dedicated, deficit-neutral Clean Water Trust Fund, similar to those that finance highways and airports.

Annually, States will award the first $1.5 billion from the trust fund to municipalities through state water pollution control revolving funds. Another $4.5 billion a year from the trust fund then will be awarded in the form of High Priority Partnership Grants to municipalities, via 65%-35% federal-municipal cost share financing to projects that “address the most serious water pollution problems; are necessary to ensure compliance with the requirements of the Clean Water Act; or, benefit communities with the greatest need”. The revenue source for the trust fund requires the EPA Administrator to submit to Congress within180 days an equitable system of user fees. NACWA will work with Congress and the EPA to help define potential fee sources. H.R. 4560 also includes annual allocations in the amounts of $250 million for sewer overflow grants, $20 million for watershed pilot projects, $250 million for critical regional waters, $295 million for research and technology, $250 million for fisheries enhancement, $100 million for state wetlands programs, $50 million for small and rural technological assistance and $5 million for a Center for Utility Management.

NACWA will need its members and affiliates to continue their involvement and advocacy efforts to recruit widespread support for H.R. 4560. NACWA encourages its members to distribute copies of the bill, and the supporting materials distributed via Legislative Alert 06-01, to local, state and federal officials, as well as to local and state stakeholder groups, and business and civic organizations. NACWA members also are encouraged to meet with their congressional delegations and staff in their District and State offices to explain the importance of this legislation to their municipalities. NACWA and other supporting organizations have launched an effort to recruit cosponsors onto H.R. 4560 and to advocate for similar legislation in the Senate.

In the coming weeks, NACWA will make available to member utilities an array of educational materials to be used at the local level to generate support for the bill, including a Sample Letter to be sent to your Representatives. If you have questions about The Clean Water Trust Act of 2005 or wish to become a member of the Funding Task Force, please contact NACWA’s Lee Garrigan at (202) 833-4655 or lgarrigan@nacwa.org.

NACWA also will distribute educational and advocacy materials through its Clean Water America (CWA) website (http://www.cleanwateramerica.org) and urges your organization, if you have not already done so, to contact Adam Krantz, NACWA Managing Director of Government & Public Affairs at (202) 833-4651 or akrantz@nacwa.org, to be listed as a supporting organization or to learn more about the grassroots CWA effort.

Senate Committee Releases Water Infrastructure Financing Act Report
The Senate Environment and Public Works (EPW) Committee in July 2005 unanimously passed S. 1400, the Water Infrastructure Financing Act of 2005 and recently filed in the Senate its committee report accompanying the final bill (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm). This action makes S. 1400 eligible for further action on the Senate floor. The bill would provide $20 billion for EPA’s Clean Water State Revolving Fund (CWSRF) and $15 billion for the Agency’s Drinking Water State Revolving Fund (DWSRF) over five years. The legislation also includes $3 billion in grants for critical clean water and drinking water projects and a new grants program to capitalize revolving funds in eligible states to support projects to control water pollution from agricultural sources.

The bipartisan bill, introduced by the chairs and ranking members of the full EPW Committee and the Fisheries, Wildlife and Water Subcommittee, emphasizes watershed planning, assistance for small and disadvantaged communities, innovative technologies, and alternative management approaches. During markup, Senator Joseph Lieberman’s (D-CT) amendment to add Davis Bacon prevailing wage provisions to the bill was accepted on a voice vote over the objections of EPW Committee Chairman James Inhofe (R-OK). Davis Bacon amendments to similar bills over the last few years have prevented the legislation from reaching the Senate floor. Committee staff are seeking support for the bill in order to move it onto the business calendar in the Senate for a vote in 2006.

NACWA issued a press release following the markup (http://www.nacwa.org/advocacy/releases/072005.cfm) expressing concern that the federal government would be unable to meet the authorized funding levels in the coming years. NACWA urged the committee to consider financing its bill through a new clean water trust fund, similar to those that exist for highways and aviation, to ensure full funding for S. 1400.

WASTEWATER SECURITY

Senator Jeffords Introduces Wastewater Treatment Security Bill
Senator Jim Jeffords (I-VT), ranking member of the Senate Environment and Public Works (EPW) Committee was joined by three Senate democrats in introducing S. 1995, the Wastewater Treatment Works Security Act of 2005 (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm). The bill amends the Federal Water Pollution Control Act to authorize the Administrator of the U.S. Environmental Protection Agency (EPA) to provide grants to wastewater treatment works, states, municipalities, or intermunicipal or interstate agencies to: 1) conduct vulnerability assessments of wastewater treatment works; 2) prepare and implement site security plans; 3) prepare emergency response plans; 4) implement certain security enhancements and alternative approaches to wastewater treatment to reduce security threats; and 5) obtain technical assistance. The measure would authorize $250 million for assistance in completing vulnerability assessments, for immediate security improvements and for assistance to small treatment works. Another $15 million would be authorized for research to identify threats, detection methods and response actions.

Senator Jeffords, in introducing the legislation, cited a February 2005 Government Accountability Office (GAO) report on wastewater security that concluded that collection systems as well as chlorine and other stored chemicals are among the most vulnerable physical components of wastewater utilities. The Committee has no plans to take up S. 1995 in 2006. However, EPW Committee Chairman James Inhofe (R-OK) will decide whether to draft his own wastewater security legislation after he receives another report he has requested from the GAO. That report is expected to be released to the Senator in late March and made available to the general public in late April or early May 2006. The GAO is continuing its work on this project which includes a new survey regarding security at wastewater facilities. The GAO sought the input and advice of NACWA and its members during the development process. The survey instrument is being forwarded to wastewater utilities with service area populations of 100,000 or more. NACWA will continue to work with the EPW Committee to secure appropriate legislation that provides funding for clean water agencies to implement response plans and upgrade security at wastewater facilities.

Bipartisan Senate Chemical Security Bill Would Impact Some NACWA Members
Senate Homeland and Government Affairs (HGA) Committee Chairwoman Susan Collins (R-ME) and Ranking Member Joe Lieberman (D-CT) concluded nearly a year of negotiations with the Department of Homeland Security (DHS) and the chemical industry with the introduction of legislation that would require DHS to regulate the security of thousands of chemical facilities nationwide. The Chemical Facility Anti-Terrorism Act of 2005 (S. 2145) (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm#2) would provide broad new authority to DHS to establish risk-based criteria to determine which chemical facilities are vulnerable to terrorist attack and to establish security standards for those facilities. Chemical facilities would be required to conduct vulnerability assessments and create site security and emergency response plans based on their specific vulnerabilities, subject to approval by the Secretary of Homeland Security. Facilities that fail to comply with the security standards would be subject to fines and penalties.

NACWA estimates that about one third of its member POTWs would be covered by the new security legislation because its provisions apply to facilities covered by Clean Air Act §112(r). The bill does not provide financial assistance for public entities to comply with the new mandates.

Introduction of S. 2145 was the result of a series of hearings in 2005 and a Senate-passed resolution calling for federal security standards for chemical facilities. As a starting point, the bill directs DHS to consider all facilities on the Environmental Protection Agency’s Risk Management Program (EPA RMP) list, which contains more than 15,000 facilities which store, produce, or use greater than threshold quantities of hazardous chemicals. The bill also gives DHS the authority to cover facilities not on the EPA RMP list. Facilities would be assigned by DHS to a security tier based on risk.

The fate of this new, wide-ranging legislation is uncertain in the 2nd session of the 109th Congress. However, NACWA will work through the NACWA Security and Emergency Preparedness Committee and the NACWA Legislative Policy Committee to determine the appropriate response to S. 2145. NACWA will meet with HGA Committee staff to describe the impact of the bill on POTWs and discuss possible financial assistance for public entities that would have to comply with the new regulations.

BUDGET AND APPROPRIATIONS

Sign the National Biosolids Partnership Funding Letter at the Winter Conference
NACWA will ask its members to sign an important letter to Congress during the NACWA 2006 Winter Conference January 31 – February 3, 2006 in Palm Desert, California. The NACWA Executive Committee, Board of Directors, member utilities and affiliates are strongly encouraged to add their signature to a letter in support of at least $1 million in fiscal year (FY) 2007 for the National Biosolids Partnership’s (NBP) environmental management system (EMS) for biosolids program.

The NBP was formed in 1997 as a not-for-profit alliance of NACWA, the Water Environment Federation (WEF), and U.S. Environmental Protection Agency (EPA) to advance environmentally sound and accepted biosolids management practices. The NBP EMS program is the only national biosolids technical assistance program in the country today. Nearly 100 agencies are in different stages of the program and 10 have successfully obtained NBP EMS certification. Additional financial support is needed to continue to expand the program, recruit additional agencies, conduct regional and state workshops, and educate state biosolids regulators about the benefits of the NBP EMS program to participating agencies.

NACWA also will issue a Legislative Alert in early 2006 requesting members to write to their House and Senate delegations in support of additional funding for the NBP program. As a first step, look for the NACWA member letter and sign it during the NACWA 2006 Winter Conference January 31 – February 3, 2006 in Palm Desert, California!

Earmarked Wastewater Grants to Cities, CWSRF Expected to be Cut in FY 2007
President Bush is expected to send an austere budget for fiscal year (FY) 2007 to Congress February 6, 2006. The budget blueprint is expected to include another round of cuts for programs at the EPA as lawmakers seek to tighten their fiscal belts in a mid-term election year. The Administration’s budget projections call for an 8 percent reduction for domestic discretionary programs in FY 2007. The White House Office of Management and Budget (OMB) reports that the FY 2007 budget will revive some of the cuts suggested for FY 2006 but not adopted by Congress.

It is likely that the Administration will ask Congress to zero out individual, earmarked grants to cities and counties for wastewater, stormwater and drinking water projects and will call for an additional reduction to the Clean Water State Revolving Fund (CWSRF). The President’s budget for FY 2006 requested funds for the CWSRF at $730 million and proposed ending Federal capitalization of the program in 2011. NACWA will review the President’s FY 2007 federal budget proposal and voice its concerns with any budget cuts on Capitol Hill. NACWA will advocate that the solution to the problem of shrinking federal funds for wastewater state and tribal assistance grants is to pass H.R. 4560, which creates a trust fund to finance projects and reduce the infrastructure funding gap (see related story Page 1).