AMSA Legislative Update July 2003

This edition of the Association of Metropolitan Sewerage Agencies’ (AMSA) Legislative Update, current through August 13, 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 Calls for Floor Vote on Wastewater Security Bill
The Wastewater Treatment Works Security Act of 2003 (S. 1039) won approval in the Senate Environment and Public Works (EPW) Committee in May. The committee report, which must accompany the bill to the floor, was completed by EPW Chairman James Inhofe (R-OK) and was sent August 1 to EPW Ranking Member James Jeffords (I-VT) for his review. Jeffords either will concur with the report or add minority comments prior to returning it to the Chairman. Committee staff intend to take the bill to the Senate floor for a vote in September.

AMSA has been working to pass the legislation into law for two years and is encouraged by Senator Inhofe’s commitment to move the bill to the Senate floor. In 2003, an AMSA resolution urging the Senate to pass S. 1039 was approved by the AMSA membership, signed by 54 AMSA members at the Association’s National Environmental Policy Forum, and delivered in early June to the 100 members of the U.S. Senate. A follow-up letter was sent in early July to Senators on the EPW Committee. Now, in preparation for the anticipated floor vote, AMSA staff is seeking the support of interested municipal organizations and water and wastewater stakeholder associations to sign onto a letter urging the Senate to approve the measure in early September. An early September vote is critical to securing the necessary appropriations is fiscal year 2004 to the fund S. 1039. The Senate bill was introduced by Chairman Inhofe and 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 the EPA to research new security technologies at wastewater treatment plants. Jeffords’ staff have told AMSA that the Senator has not decided whether to offer additional amendments to S. 1039 when Chairman Inhofe moves the bill to the floor.

To view or download copies of S. 1039 and H.R. 866, go to AMSA’s Bill Tracker at http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm. A copy of AMSA’s resolution can be found in the Correspondence and Outreach section of the AMSA website at: http://www.amsa-cleanwater.org/private/legreg/outreach/06-02-03Sec_Resolution.pdf.

Clean Water Funding

House Subcommittee Approves Wastewater Funding Bill
The Water Resources and Environment Subcommittee of the House Transportation and Infrastructure (T&I) Committee approved on July 17 the Water Quality Financing Act of 2003 (H.R. 1560). The bill, introduced by T&I Chairman Don Young (R-AK) and Subcommittee Chairman John J. Duncan, Jr. (R-TN), received unanimous approval. The bill was scheduled a week later for mark-up in the full T&I Committee but 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 recently reiterated 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.

At AMSA’s May National Environmental Policy Forum, 52 AMSA members signed a resolution urging Congress to pass both H.R. 1560 and similar Senate legislation. The funding resolution is posted in the Correspondence and Outreach section of AMSA’s web site at: http://www.amsa-cleanwater.org/private/legreg/outreach/2003-05h2ofunding.pdf. AMSA staff, along with other members of the Water Infrastructure Network, continue to meet with Representatives and their staff to reinforce the importance of the bill to the creation of jobs, to the environment and to 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.

AMSA Meets with Committee to Discuss New Approach to Senate Bill
Senate Environment and Public Works Committee (EPW) 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. Committee staff met in late July with AMSA and other opponents of last year’s bill, including the National Governors Association, Association of State and Interstate Water Pollution Control Administrators and the Council on Infrastructure Financing Authorities to assure the organizations that Chairman Inhofe will not introduce a bill that places new mandates on utilities. However, Inhofe believes the bill should contain a significant authorization and, as such, should include “incentives” to encourage municipalities to spend the money in an efficient manner. Inhofe would prefer to work in a bipartisan manner on a new bill but his legislative goals appear to differ significantly from those of EPW Ranking Member James Jeffords (I-VT). Work on the new bill gained momentum just prior to the August recess after legislators decided to delay action on the reauthorization of a highway bill. AMSA staff anticipates regular meetings with the EPW Committee while the bill is being written.

Senate Democrats Introduce Infrastructure Jobs Bill
California Democratic Senator Dianne Feinstein and Senator Richard Durbin (D-IL) introduced on July 15 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.

U.S. Congressmen Jerry Costello (D-IL), James Oberstar (D-MN), Earl Blumenauer (D-Ore.), and other Democrats on the House Transportation and Infrastructure Committee introduced a similar $50 billion public works bill in June that also 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. 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.

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, drinking water source protection, stream buffers, combined sewer and sanitary sewer overflows, agricultural best management practices, and decentralized stormwater and wastewater treatment projects. AMSA staff met with the Senators and their staff during the writing of the bill and will not take an official position on S. 1539. The text of the bill is available through AMSA’s Bill Tracker at: http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.

Budget and Appropriations

House Approves AMSA Request for NBP Funding
The House of Representatives has approved a fiscal year (FY) 2004 bill (H.R. 2861) containing $8 billion for the U.S. Environmental Protection Agency (EPA). The 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 non-point and non-structural, decentralized alternatives to conventional treatment options.

Lawmakers also 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, 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.

Senate appropriators finished only four of their 13 spending bills before going home for the August recess. No schedule has been set to complete the remaining appropriations measures. To review the House-passed budget for EPA for FY 2004, go to AMSA’s Bill Tracker and select ‘Budget and Appropriations” at: http://www.amsa-cleanwater.org/private/legreg/legupdate/leg_tracker.cfm.