NACWA July 2006 Legislative Update

To: Members & Affiliates, Legislative Policy Committee,
Legal Affairs Committee, Clean Water Funding Task Force
From: National Office
Date: July 7, 2006

This edition of the National Association of Clean Water Agencies (NACWA)’ Legislative Update, current through July 5, 2006, 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.

FISCAL YEAR 2007 APPROPRIATIONS

House, Senate Committee Agree to Cut Clean Water Loan Program
The House on May 18 passed the Department of the Interior, Environment, and Related Agencies Appropriations Act of 2007 (H.R. 5386) (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm#3), including a $200 million cut to the U.S. Environmental Protection Agency (EPA)’s clean water state revolving fund (CWSRF). The Senate Appropriations Committee on June 29 agreed with the House action that would drop funding for the CWSRF to $688 million. The cut is part of a long-term plan to end all federal capitalization of the program in FY 2011. The $200 million budget cut, if agreed to by the full Senate, would reduce the nation’s primary infrastructure program for water quality projects from $886.8 million in the current fiscal year to $687.6 million. Federal funding for the CWSRF has been slashed nearly 50 percent from $1.35 billion in FY 2004. NACWA and other national, state and local groups continue to oppose the cuts.

The House did include in H.R. 5386 $1 million to continue the National Biosolids Partnership (NBP) environmental management system (EMS) for biosolids program. The Senate, however, as in years past, did not include funding for the NBP program. NACWA does anticipate, however, that the Senate will accede to the House request and keep the NBP funding in the final conferenced version of the bill. Other programs expected to make the final conferenced report on the EPA budget include $841.5 million for EPA’s DWSRF and $2 million for the Water ISAC. The House bill contains $200 million for 146 targeted infrastructure grants that primarily fund individual water infrastructure projects in members’ districts. The Senate Appropriations Committee measure contains $210 million for 195 individual projects. Although the House bill eliminated a $1.182 million line item for wastewater operator training grants, the Senate Appropriations Committee added $1 million to EPA’s budget to continue the program. The full Senate is expected to pass the EPA budget bill in July. House and Senate conference members then will be appointed to negotiate a final bill.

NACWA, through the Clean Water Funding Task Force and the Water Infrastructure Network, is trying to elevate clean water financing as a political priority through the Clean Water America website (http://www.cleanwateramerica.org). The cyber campaign, which now enjoys over 100,000 individual petitioners, both educates citizens and advocates for a reliable, long-term sustainable source of federal financing through the establishment of a clean water trust fund.

CLEAN WATER FUNDING

House Members Sign Up to Cosponsor the Clean Water Trust Fund Bill
NACWA continues to recruit cosponsors for the Clean Water Trust Act of 2005 (H.R. 4560) (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm). As of June 30, NACWA members had helped to recruit many of the 16 Representatives who have signed on to H.R. 4560. Cosponsors of the bill include: John Conyers (D-MI), Randy Kuhl (R-NY), Mike McIntyre (D-NC), Neil Abercrombie (D-HI), John Boozman (R-AR), Ed Case (D-HI), Jim Saxton (R-NJ), Melissa Bean (D-IL), Harold T. Ford, Jr. (D-TN), Harold Rogers (R-KY), Stephanie Tubbs Jones (D-OH), Thomas E. Petri (R-WI), Fred Upton (R-MI), Phil English (R-PA), Cynthia A. McKinney (D-GA), and Bernard Sanders (I-VT). Representative John J. Duncan (R-TN), Chairman of the House Water Resources & Environment Subcommittee and sponsor of H.R. 4560, sent a ‘Dear Colleague’ letter (http://www.nacwa.org/private/leg_outreach.cfm) to all House members soliciting their support for the Clean Water Trust Act of 2005. NACWA also delivered letters (http://www.nacwa.org/private/leg_outreach.cfm) to every Member of the House seeking support for and co-sponsorship of the Clean Water Trust Act of 2005. The letters, and follow-up emails to Chiefs of Staff, outlined the pressing need for a federal trust fund and the ramifications in the coming years if the need is not met. An overview of the bill and a list of supporting organizations accompanied the letter. NACWA members are encouraged to actively recruit their House members as cosponsors of H.R. 4560 by utilizing the materials in Legislative Alert 06-04 (http://www.nacwa.org/private/legreg/legalrts/la06-4.cfm) which provided instructions, a ‘Sample Letter’ and a fact sheet on the bill.

Legislative strategy discussions for the 110th Congress will be convened with stakeholders this year to resolve remaining issues and prepare for the reintroduction of clean water trust fund legislation next year. Currently, the Water Resources and Environment Subcommittee Ranking Minority Member Eddie Bernice Johnson (D-TX) and other Democrats, although supportive of clean water infrastructure legislation, have been unable to cosponsor the bill because it does not include Davis Bacon prevailing wage provisions. On the other side of the aisle, some Republicans are supportive of the legislation but have stated that they want a revenue source identified before signing on as cosponsors of the bill. NACWA is hopeful that it can engage the Subcommittee in future discussions on these issues to have a strong consensus-based bill ready for introduction in 2007.

SECURITY

Wastewater Security Legislation Passes Senate Committee
The Senate Environment and Public Works (EPW) Committee approved May 23 the Wastewater Treatment Works Security Act of 2005 (S. 2781) by a vote of 10-8 along party lines. NACWA provided input into the drafting process and supports the bill, which was introduced by EPW Committee Chairman James M. Inhofe (R-OK), Sen. Lincoln Chafee (R-RI), Chair of the Fisheries, Wildlife, and Water Subcommittee, and EPW Committee member Sen. Lisa Murkowski (R-AK). The bill would authorize $200 million in grants to conduct vulnerability assessments and make security enhancements, $15 million for technical assistance for small POTWs, $5 million over five years to non-profit organizations to improve vulnerability self-assessment methodologies and tools, and $25 million over five years for research and review of collection systems and treatment works. It was the second time in three years that the Committee passed wastewater security legislation. The text of the bill can be found on the NACWA Bill Tracker (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm).

Chairman Inhofe introduced S. 2781 to address the findings of a May 1 Government Accountability Office (GAO) report on wastewater treatment plant security entitled, Securing Wastewater Facilities: Utilities Have Made Important Upgrades, Though Further Improvements to Key System Components May Be Limited by Costs and Other Constraints (GAO-06-390) (http://www.gao.gov/new.items/d06390.pdf).  The study reported that while no federal law requires wastewater facilities to conduct vulnerability assessments, most facilities have completed, have underway, or plan to complete some type of security assessment. Chairman Inhofe requested the study to assess the state of security at the nation’s clean water utilities and gather data on how they have assessed and addressed potential vulnerabilities since September 11, 2001.

During mark-up of the bill, the committee rejected an amendment that would have mandated that every wastewater treatment plant in America complete vulnerability assessments, site security plans, and emergency response plans, and submit them to EPA. The amendment was offered in the form of a bill, S. 1995 (http://www.nacwa.org/private/legreg/legupdate/leg_tracker.cfm), introduced in November 2005 by EPW Committee Ranking Member James Jeffords (I-VT), Sen. Barbara Boxer (D-CA), Sen. Frank Lautenberg (D-NJ) and Sen. Barack Obama (D-IL), and would have required high risk facilities to transition from toxic high risk chemicals such as chlorine to inherently safer alternatives.

Chairman Inhofe subsequently held a June 21 hearing on the merits and drawbacks of requiring inherently safer technology. One witness pointed to the 3,000 drinking water and wastewater treatment plants that use chlorine gas as prime examples of chemical facilities that could switch to safer technologies and significantly reduce the risk to surrounding populations. Chairman Inhofe and other Senators, however, said they do not support new federal mandates on facilities that would require them to switch to new technologies or processes.

The EPW Committee is preparing a report on the legislation passed by the committee which, when complete, will make the bill eligible for floor consideration. NACWA supported S. 2781 in a May 22 letter (http://www.nacwa.org/getfile.cfm?fn=2006-05-22Inhofe.pdf) to Chairman Inhofe and will continue to work with the EPW Committee to pass reasonable security legislation.

Chemical Security Bill Approved; Still Covers Some POTWs
The Senate Homeland Security and Governmental Affairs (HSGA) Committee on June 14-15 marked up and unanimously passed the bipartisan Chemical Facility Anti-Terrorism Act (S. 2145) (http://www.nacwa.org/private/legreg/ legupdate /leg_tracker.cfm#2). NACWA was engaged in extensive discussions with Senate staff prior to the markup after sending a letter (http://www.nacwa.org/private/leg_outreach.cfm) in May to the leaders of the HSGA Committee — Chair Susan Collins (R-ME) and Ranking Member Joseph Lieberman (D-CT) — alerting them to the clean water community’s concerns with the legislation. The bill would provide broad new authority to the Department of Homeland Security (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 DHS. Facilities that fail to comply with the security standards would be subject to shut-downs, fines and penalties. NACWA sought comments from its members on the bill via Legislative Alert 06-02 (http://www.nacwa.org/private/legreg/legalrts/la06-2.cfm).

Currently, S. 2145 would apply to POTWs covered under section 112(r) of the Clean Air Act — up to 30% of NACWA members — subjecting them to extensive security planning and reporting requirements intended to address private sector chemical plant security. The Association’s letter points out that EPA, not DHS, should continue to retain authority over security programs for wastewater utilities. A separate joint letter (http://www.nacwa.org/private/leg_outreach.cfm) sent July 6 to the full Senate asks Senators to withhold their support for the bill until the issues surrounding the inclusion of water and wastewater facilities in the bill have been satisfactorily addressed. The letter was signed by ten groups including NACWA, the National Association of Counties (NACo), the Association of Metropolitan Water Agencies (AMWA), American Water Works Association (AWWA), Water Environment Federation (WEF), and others.

NACWA and other stakeholders have argued that wastewater security legislation has traditionally been under the jurisdiction of the Senate EPW Committee which passed May 23 a bill by Chairman James M. Inhofe (R-OK) to address wastewater system security issues (see related story). NACWA urged Senators Collins and Lieberman to modify S. 2145 to remove clean water utilities from the definition of covered facilities. In a letter (http://www.nacwa.org/private/leg_outreach.cfm) to the bill’s cosponsors, EPW Committee Chairman Inhofe also objected to the inclusion of wastewater facilities in the bill and claimed that his committee should retain jurisdiction over wastewater security. As a result, Sen. Inhofe has placed a ‘hold’ on the bill which will prevent S. 2145 from being placed on the Senate calendar for a floor vote. NACWA is engaged in continuing discussions with both committees to favorably resolve the outstanding issues.

New House Chemical Security Bill May Cover Some NACWA Members
The Chairman of the House Homeland Security Subcommittee on Economic Security, Infrastructure Protection, and Cybersecurity, Rep. Daniel Lungren (R-CA), introduced June 28 the Chemical Facility Anti-Terrorism Act of 2006 (H.R.5695) with the Chairman of the full Homeland Security Committee, Rep. Bennie G. Thompson (D-MS) and 9 other cosponsors. The bill widely tracks the tiered approach of the Senate bill but exempts drinking water facilities based on the passage in the 107th Congress of the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (P.L. 107-188, H.Rept. 107-481). Title IV of the Bioterrorism Act amended the Safe Drinking Water Act (SDWA) to address threats to drinking water security. Section 1433 was added to the SDWA and required each community water system serving more than 3,300 individuals to conduct and complete by June 30, 2004 an assessment of the system’s vulnerability to terrorist attacks as well as prepare or revise an emergency response plan incorporating the results of the vulnerability assessment.

Since POTWs are not covered under any existing security laws, it appears that POTWs that report to EPA under Section 112(r) of the Clean Air Act will be covered by the bill. NACWA will meet with the Committee staff in July to clarify the bill’s coverage of local government owned facilities.