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Utilities Back Clean Water Permit Exemptions For Interstate and Intrastate Water Transfers

Most of the nation's wastewater and drinking water utilities support exemptions from federal clean water permits for water transfers that occur through dams on a river or through tunnels that connect different water basins across state boundaries, according to comments filed with the Environmental Protection Agency.

The National Association of Clean Water Agencies (NACWA) and the Association of Metropolitan Water Agencies (AMWA) said they support EPA's proposed rule that would exempt water transfers from the requirement for National Pollutant Discharge Elimination System permits under Section 402 of the Clean Water Act (106 DEN A-7, 06/2/06 ).

The rule, once adopted by EPA, would apply to water transfers through tunnels, channels, or natural stream courses for public water supplies, irrigation, power generation, flood control, and environmental restoration.

EPA issued the proposal June 1.

EPA sought comments on the overall proposed rule as well as the definition it is proposing for transfers. It has defined transfers as the movement of water between bodies of water without subjecting it to intervening industrial, municipal, or commercial use.

In its proposal, the agency also sought support for granting "designation authority" on a case-by-case basis to states where transfers create significant deterioration of a designated use of a particular lake, stream, or river. That would allow states to regulate transfers by issuing state NPDES permits.


NPDES Program Called 'Wrong Tool.'

Both NACWA, which represents wastewater treatment operations, and AMWA, which represents drinking water utilities, said the federal total maximum daily load (TMDL) program under Section 303 of the Clean Water Act and state laws are better tools to deal with water quality impairments resulting from water transfers, rather than the "severely backlogged" NPDES program.
"The NPDES program is the wrong tool to regulate water transfers," Diane VanDe Hei, AMWA's executive director, wrote in comments Aug. 7. VanDe Hei said the NPDES program was intended to regulate entities that introduce pollutants, not entities that merely move water that already contains pollutants.

Thomas Stiles, chief of the Kansas Department of Health and Environment's Watershed Planning Section, said imposition of the NPDES program would violate Section 101(g) of the Clean Water Act, which stipulates that the federal law should not supersede any state's authority to allocate water or abrogate rights to quantities of water established by the state.

Stiles said water transfers are special circumstances involving these water rights or water purchases, and requiring NPDES permits would add a layer of redundancy to existing state law governing transfers.

"The lines of jurisdiction over water transfers become unduly blurred when Section 402 is imposed on a Section 101(g) activity," Stiles wrote.

Alexandra Dunn, NACWA's general counsel, expressly tied the wastewater community's support to a clear statement from EPA that monitoring and assessment of water quality be an integral part of any transfer of water, be it within the same river or watershed or across state boundaries between separate water basins.

"And, EPA must state that if a water transfer is contributing to a violation of water quality standards, the transfer must be controlled so that other dischargers in the watershed are not treated inequitably," Dunn wrote in Aug. 4 comments. She added that EPA must "commit" in the final rule to a "firm schedule" to develop and issue guidelines for processes to regulate pollution resulting from diverting water from rivers and other structures, as required under 33 U.S.C. ยงยง 1314(f)(F).

NACWA did not address the issue of granting some states the authority to permit water transfers.


Exemption Should Be Absolute

However, AMWA's VanDe Hei said that granting states permitting authority for transfers would "undercut" whatever certainty water supply systems may hope to obtain through this proposal. Such a provision, VanDe Hei said, would allow states to use water quality as the "distinguishing feature" between those transfers where permitting might be required and those where it would not, causing yet more confusion and uncertainty among water resource managers.
The exclusion must be "absolute," said Mark D. Hoffer, general counsel to New York City's Department of Environmental Protection. In his comments, Hoffer said there is no "statutory basis" for designation authority in the Clean Water Act. Besides, he said, allowing some water transfers to be permitted by states contradicts the agency's rationale to allow water transfers without NPDES permits.

New York City relies on transfer of water among its 19 collecting reservoirs comprising three separate water supply systems, some involving intra-basin transfers and some among distinct bodies of water.

In June, the U.S. Court of Appeals for the Second Circuit ruled that New York City could require an NPDES permit because the transfer of sediment-laden, turbid water into Esopus Creek constitutes a discharge of pollutants from a point source. Hoffer in his comments highlighted the costly and time-consuming legal and regulatory barriers the city is facing in obtaining a permit for transferring water into the Esopus Creek (Catskill Mountains Chapter of Trout Unlimited Inc. v. New York City Department of Environmental Protection, 2d Cir., No. 03-7203, 6/13/06; 115 DEN A-2, 06/15/06) .

Unlike Hoffer and VanDe Hei, the National Rural Water Association (NRWA) does support delegation of NPDES authority to states when water transfers take place across state boundaries and result in "significant deterioration" of a designated use.

"This would presumably allow the state regulatory authorities the power to return the affected water to its designated use through the avenues available under the NPDES provisions," wrote William E. Kramer, NRWA's senior engineer.

In instances involving intrastate water transfers, however, Kramer agreed with the state and national groups that NPDES authority is unwarranted because "state law would allow the state to regulate the transfer as they see fit."

EPA received more than 1,200 comments by its Aug. 7 deadline.


Environmental Groups Oppose Rule

About 44 environmental groups said EPA's proposed rule was illegal and in violation of Section 301 of the Clean Water Act, which says discharge of pollutants into navigable waters is illegal. The groups included American Rivers, Clean Water Action, Natural Resources Defense Council, Missouri Coalition for the Environment, Sierra Club, and Wyoming Outdoor Council.
Jennifer Hecker, natural resources policy specialist for the Conservancy of Southwest Florida, accused EPA of not fulfilling the Clean Water Act mandates. Hecker urged EPA to "desist" because it was violating the intent of the Clean Water Act.

The fact that water transfers can move pollutants from one waterbody to another "illustrates that to not regulate such activity could violate the very intent for which NPDES permits were created, that intent being the ability to control water pollution by regulating point sources that discharge into waters of the U.S.," she wrote.

By Amena H. Saiyid