AMSA February 2005 Regulatory Update

To: Members & Affiliates,
Regulatory Policy Committee, Legal Affairs Committee
From: National Office
Date: March 2, 2005

The Association of Metropolitan Sewerage Agencies (AMSA) is pleased to provide you with the February 2005 Regulatory Update. This Update provides a narrative summary of relevant regulatory issues and actions current to March 2, 2005. Unless another contact person is specifically listed, call Chris Hornback, AMSA's Regulatory Affairs Director, at 202/833-9106 or e-mail him at chornback@amsa-cleanwater.org with any questions or input you have concerning the Update topics.

Top Stories

AMSA, Municipal Groups Meet with EPA to Discuss Current Suite of Hot Regulatory Issues
On February 9, AMSA was joined by representatives of the American Public Works Association, National Association of Counties, National League of Cities, National Rural Water Association, and the Water Environment Federation (WEF) for a meeting with key U.S. Environmental Protection Agency (EPA or Agency) officials in the Office of Wastewater Management (OWM). Office Director Jim Hanlon, and Division Directors, Linda Boornazian (Water Permits Division) and Sheila Frace (Municipal Support Division), and several branch chiefs were present. AMSA organizes these municipal meetings to ensure that a regular dialogue takes place between municipal and federal interests on clean water policy issues.

Jim Hanlon provided an overview of the history of the nearly decade-long rulemaking process on pretreatment streamlining and an update on its current status. EPA continues to work on finalizing the rule but issues surrounding equivalent mass limits for concentration limits as well as the definition of a non-significant categorical industrial user continue to be debated. Hanlon said the rule will likely not be finalized for 4 - 6 months as the Agency works out the remaining issues. See related story below.

EPA also provided updates on the blending policy and Sanitary Sewer Overflow (SSO) issues. EPA confirmed that finalizing the blending policy has "paused" given the vacancy at the Administrator level. While EPA staff have conducted several informational briefings on the blending issue for Assistant Administrator for Water, Benjamin Grumbles and Acting Administrator Stephen Johnson, it does not appear that the Agency will finalize the policy before a new Administrator is confirmed. See related story below.

EPA expressed interest in AMSA's ongoing project on sanitary sewer overflows (SSO) to develop a model regulation and a database of state approaches to collection system permitting. At the meeting, AMSA committed to meet with Donald Brady, the new Acting Municipal Branch Chief of the Water Permits Division, when the project is complete. EPA seems intent on addressing some of the less contentious SSO issues via guidance that could be packaged with the blending policy and expressed an interest in talking to AMSA about this. These less contentious issues could include guidance on the elements of capacity, maintenance, operation, and management (CMOM) programs, SSO reporting, and coordinating with satellite systems. The Agency understands that some issues will need to be addressed by regulation (including collection system permitting) at a later date.

Jim Horne, Special Assistant to Jim Hanlon, and Sheila Frace provided updates on the Agency's activities related to environmental management systems (EMS), asset management, and sustainability. Jan Goodwin, of OWM's Municipal Support Division, is heading up a sustainable infrastructure team to deal with numerous sustainability issues. EPA is planning a meeting in early May to talk long-term strategy for asset management issues (training etc.), but is looking to the wastewater industry, including AMSA, to help develop a model for best practices. Hanlon expressed concern regarding President Bush's Fiscal Year 2006 EPA budget request as it zeros out funding for the Water Quality Cooperative Agreement program, which has funded projects on EMS, asset management, and AMSA's Pretreatment Workshop. AMSA will be working with Congress to restore funding for the Cooperative Agreement program.

AMSA Continues Advocacy for Pretreatment Streamlining Rule, Works with EPA on Remaining Issues

At the February 9 Municipal Meeting, Jim Hanlon, Director of OWM, noted that two contentious issues are holding up finalization of the pretreatment streamlining rule - issues surrounding equivalent mass limits for concentration limits and the definition of a non-significant categorical industrial user. The Agency has again asked AMSA to provide more information in support of these two issues that are key to the Association's preferred streamlining rule. At EPA's request, AMSA has assembled a list of nine strong municipal examples of permitted industrial facilities that received violations of concentration-based categorical and non-categorical pollutant limits solely because they utilized water conservation. AMSA has argued that converting those concentration-based limits to mass-based limits would allow water conservation to continue and would not increase pollutant loadings to the environment. AMSA will help EPA contact these industries and is hopeful that after speaking with these municipalities and industries, the Agency will see the value of this key provision in the pretreatment streamlining rule.

AMSA also continues to work to advocate for a provision in the rule that would reduce the monitoring and sampling burden associated with non-significant categorical industrial users. EPA is leaning toward a 100 gallon per day threshold for this category, while AMSA advocates for a 0.01% of flow determination, with a ceiling of 25,000 gallons per day for the largest utilities.

AMSA will alert the membership to other developments as they occur. For more information on the pretreatment streamlining rule, please contact Will Pettit, AMSA, at 202/833-3280 or wpettit@amsa-cleanwater.org.

Conferences and Meetings

Register Today for AMSA's 35th Annual Meeting and National Clean Water Policy Forum

Join your clean water colleagues in Washington, D.C. to make the voice of the water quality community heard! AMSA and WEF are joining forces to present the first-ever National Clean Water Policy Forum, May 3 - 4, 2005. The Policy Forum will bring together the best features of AMSA's National Environmental Policy Forum and WEF's Washington Briefing in a streamlined new program featuring the latest legislative and regulatory developments in our nation's capital. This is one conference that you should not miss!

Immediately preceding the Policy Forum, AMSA will host its 35th Anniversary Annual Meeting on May 1 - 2, which will also be held at the Marriott Metro Center. The Association's Annual Meeting will include the election of new Board Members, the presentation of AMSA's National Environmental Achievement and Peak Performance Awards, and a gala celebration of 35 years of commitment to clean water.

Space is limited - make your plans now to attend. Reserve your hotel room today by calling the Marriott at Metro Center, 202/737-2200, to ensure the special room rate of $219 single/double. The deadline for hotel reservations is April 28, 2005. An updated agenda and online conference registration are available on AMSA's website (http://www.amsa-cleanwater.org/meetings/05nepf/).

Water Quality

AMSA Participates in First Whole Effluent Toxicity Listening Session, Works to Prepare Comments
On February 28, AMSA participated in the first of two listening sessions on EPA's draft Whole Effluent Toxicity (WET) Implementation Guidance. EPA set up two sessions to provide stakeholders with an opportunity to provide brief oral comments in advance of the extended March 31 written comment deadline. The second listening session will take place on March 17 in San Francisco, Calif. For more information visit EPA's website (http://www.epa.gov/npdes/outreach_files/wet_listening_sessions.pdf). AMSA has consistently advocated for years on behalf of additional guidance on issues that are currently complicating implementation of WET testing requirements and limits in Clean Water Act permits. AMSA's initial review of the draft guidance, which was sent to members via Regulatory Alert 05-02 (http://www.amsa-cleanwater.org/private/regalerts/ra05-02.cfm), reveals that the draft will likely not provide sufficient flexibility and clarification to remedy many of these implementation problems. AMSA is currently developing comments to submit by the March 31 extended deadline. EPA's draft WET Implementation Guidance, released on December 28, 2004, can be downloaded from EPA's website (http://www.epa.gov/npdes/permitbasics).

AMSA Nominates Member for FACA Committee on Detection/Quantitation Procedures
On February 9, AMSA nominated James Pletl, Environmental Scientist at the Hampton Roads Sanitation District, to participate on a Federal Advisory Committee on Detection and Quantitation Approaches. This Committee will seek to develop a consensus approach for detection and quantitation procedures and to clarify the uses of those procedures in Clean Water Act programs. A situation assessment conducted for EPA by a neutral third party on the policy and related technical issues recommended that the Agency form the Committee. AMSA participated in the situation assessment and attended a public meeting on January 26, 2005 to discuss the formation of the Committee. AMSA will keep the membership apprised of developments as they occur.

Wet Weather

While AMSA Continues to Support Blending, Debate Heats up in Congress and the Press
Discussion and debate on the Hill and in the press continues on the blending issue. Approximately 135 Members of the U.S. House of Representatives signed a letter urging EPA to drop the blending proposal. AMSA and a coalition of municipal groups continue to advocate on behalf of a consistent policy that recognizes the need for blending during periods of peak excess flow. AMSA, along with WEF and the Water Environment Research Foundation, are sponsoring an informational briefing on blending scheduled for March 16, 2005.

Despite the latest flurry of activity, all indications from EPA are that work on the blending policy is stalled until President Bush picks, and Congress confirms, a new EPA Administrator. AMSA has learned that EPA's Assistant Administrator, Benjamin Grumbles, has been given a list of options for moving forward on the blending policy by his Office of Water staff, but that no decisions have been made. Apparently, several EPA regions have spoken out against the policy as proposed, voicing concerns over not requiring municipalities to determine whether there is a feasible alternative to blending, whether the practice is protective of human health, and whether the policy will be retroactive or apply only to future overflow control plans. The Agency likely still has significant work to do internally to finalize the blending issue and AMSA will use this time to continue its advocacy efforts in support of EPA's guidance. AMSA will alert the membership of any developments.

Miscellaneous

AMSA Meets with GAO Staff to Discuss New Study on Impacts of Water Regulations on Communities
On February 17, AMSA met with staff from the Government Accountability Office (GAO) to discuss an upcoming study to look at the cumulative impacts of federal water regulations on local communities. This study, currently in the design phase, was requested by Senators James M. Inhofe (R - OK) and Michael D. Crapo (R - ID) of the Environment and Public Works Committee. The GAO study will explore the costs to municipalities of federal drinking water and clean water regulations, and approaches that are being used at the local level to minimize those costs. GAO hopes to complete the design by May 2005, and the study in 2006. AMSA will continue to provide input into the study and will alert the membership of any developments.