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Member Pipeline - Regulatory - October 2006 Regulatory Update

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To: Members & Affiliates,
Regulatory Policy Committee
From: National Office
Date: October 2, 2006

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The National Association of Clean Water Agencies (NACWA) is pleased to provide you with the October 2006 Regulatory Update. This Update provides a narrative summary of relevant regulatory issues and actions current to October 2, 2006. Please contact NACWA’s Chris Hornback at 202/833-9106 or chornback@nacwa.org or Cynthia Finley at 202/296-9836 or cfinley@nacwa.org with any questions or information on the Update topics.

Top Stories

NACWA Briefs EPA’s Office of Science and Technology on Top Issues
NACWA met September 14 with Ephraim King, head of EPA’s Office of Science and Technology (OST), to highlight a list of OST issues the Association is currently tracking. King and his staff are responsible for developing national water quality criteria, the effluent limitation guidelines program, and reviewing the Part 503 regulations for biosolids, among other critical water programs. A top issue for both NACWA and OST is the Natural Resources Defense Council’s (NRDC) pending litigation over EPA’s failure to comply with portions of the Beaches Environmental Assessment and Coastal Health (BEACH) Act (see related story below), including a requirement to develop new bacteria criteria. NACWA noted that the Association was considering intervention in the case and King reemphasized his office’s support of the existing, 1986 bacteria criteria. At the same time, King highlighted his plan for a stakeholder dialogue on what the next generation of criteria would look like and promised to engage NACWA in those talks. One of King’s priorities is to validate an analytical method for use in monitoring beaches and other recreational waters for bacterial contamination. NACWA also highlighted the need for EPA Headquarters to continue to support efforts to develop wet weather water quality standards and conduct use attainability analyses, where appropriate. King will join NACWA at its Hot Topics Breakfast during WEFTEC on October 24, from 8:00 – 10:30 am at the Hyatt Regency in Dallas (see September 29, 2006, Special Edition Fax Alert at http://www.nacwa.org/private/faxalerts/20060929se.cfm).

Air Quality

NACWA Sends Letter to Ozone Transport Commission Supporting POTW Exclusion
On September 28, NACWA sent a letter (http://www.nacwa.org/getfile.cfm?fn=2006-09-28cmts.pdf) to the Ozone Transport Commission (OTC) supporting the OTC’s decision to remove publicly owned treatment works (POTWs) from the current round of emission controls. “Because of the high costs and limited benefits, NACWA agrees with OTC’s decision not to consider additional VOC (volatile organic compound) emission controls for POTWs at the current time,” the letter said. The OTC’s emission control measure recommended expansion of the Maximum Achievable
Control Technology (MACT) standard, requiring POTWs to cover primary treatment processes and route emissions through a carbon adsorption unit or other device that would achieve 85 percent control of VOCs. If this control measure had been implemented, it would have caused significant expense to POTWs in the northeastern states represented by the OTC. NACWA stated in its letter that the MACT standard is not a viable option for emission control at typical POTWs because of the impracticality of operating carbon adsorption units at POTWs and the excessive cost of both the carbon adsorption units and the primary treatment covers. NACWA also cited a 1994 study conducted by the Southern California South Coast Air Quality Management District (SCAQMD) that demonstrated that VOC emissions from POTWs were insignificant in the SCAQMD region, with total emissions from POTWs less than those of commercial bakeries. Although the OTC will not impose controls on POTWs at the present time, POTWs are still listed as “under further review” by the OTC and could be considered for controls in the future. NACWA will continue to follow the OTC’s activities to ensure that POTWs are not subject to impractical and expensive emission control requirements.

NACWA Tracking, Preparing to Comment on Upcoming Greenhouse Gas Inventory
NACWA staff and leaders of its Air Quality Committee met with EPA on September 11 to discuss EPA’s estimates of greenhouse gas emissions from wastewater treatment facilities. EPA has compiled an annual U.S. Greenhouse Gas Emissions Inventory (http://yosemite.epa.gov/oar/globalwarming.nsf/content/ResourceCenterPublicationsGHGEmissions.html), as required by the United Nations Framework Convention on Climate Change, for more than a decade. The inventory is currently used only for information purposes, not for developing regulations. However, with California and several states in the Northeast developing their own greenhouse gas reduction programs, the inventory may become more significant in the future. With wastewater treatment listed as the fifth largest source of nitrous oxide and the sixth largest source of methane in the most recently published inventory (2004), clean water agencies could potentially be targeted for state or national greenhouse gas controls. NACWA and its Air Quality Committee will review the 2005 inventory draft when it is released and provide EPA with comments. NACWA will continue to work with EPA to refine and improve the methods used for future estimates of wastewater treatment greenhouse gas emissions.

Biosolids

NACWA Meets With EPA on THC/CO Limits for Biosolids Incinerators
Following up on a survey conducted by NACWA and the Water Environment Research Foundation (WERF) in 2005 (http://www.nacwa.org/private/regalerts/ra05-05.cfm), NACWA met with EPA biosolids officials September 19 to discuss some of the findings from the survey. Responding to concerns raised by several NACWA members who operate incinerators, NACWA and WERF conducted the survey through the CleanWater Central database (www.cleanwatercentral.org) to collect information on how agencies were complying with requirements to continuously monitor their total hydrocarbon (THC) or carbon monoxide (CO) emissions. The top concern raised by survey respondents was the operation and maintenance (O&M) issues they were encountering with the monitoring systems, including frequent breakdown, high repair costs of older models, and durability issues. Most of the difficulty seemed to be associated with monitoring for compliance with the 100 ppm limit for THC. During the meeting with EPA, NACWA discussed the possibility of using a surrogate parameter to demonstrate compliance with the THC limit – one that would be easier to monitor on a continuous basis. EPA indicated that it would consider such an approach if NACWA could provide data demonstrating that an alternative parameter(s) would provide an adequate indication of THC limit compliance. NACWA also discussed the need for a more realistic CO limit and the need for more training on the use of continuous emissions monitors and the incinerator regulations in general. NACWA’s Incineration Issue Leader will be following up with the Association’s incinerator members to determine next steps.

Conferences

Online Registration Now Available for NACWA’s 2006 Clean Water Law Seminar
Online registration is now available for NACWA’s 2006 Developments in Clean Water Law: A Seminar for Public Agency Attorneys & Managers, scheduled for November 15-17 at the Sheraton Boston Hotel in Boston. Join your colleagues for a discussion of cutting-edge developments in the regulatory and legal aspects of the Clean Water Act. Seminar panels will cover issues ranging from traditional and non-traditional defensive tools and relationships between in-house and outside counsel to how regional facilities have worked with satellite systems to make environmental progress. Other topics will include citizen suit trends; management of electronic information; and water quality models for public agencies. Professor Jody Freeman, Director of the Harvard Law School Environmental Law Program, will keynote the 2006 Seminar. Continuing Legal Education (CLE) credits will be available. More information is available on NACWA’s website (http://www.nacwa.org/meetings/06law/). The hotel registration deadline is October 24, so register today!

Join NACWA During WEFTEC for its Annual Hot Topics Breakfast
NACWA’s annual Hot Topics Breakfast will be held in conjunction with WEFTEC 2006 on Tuesday, October 24, from 8:00 am – 10:30 am, at the Hyatt Regency in Dallas, Texas. The Breakfast will take place in the Reunion A & B rooms on the lobby level of the Hyatt Regency, which is the WEFTEC headquarters hotel. The first hour will be dedicated to a discussion with our guests from EPA on issues that will include EPA’s response to a D.C. Circuit Court decision defining the word “daily” in total maximum daily loads, the current status of the Agency’s proposed peak wet weather flows policy, next steps toward a viable sanitary sewer overflow (SSO) policy, the Agency’s ongoing efforts in the wastewater security and sustainable infrastructure arenas, and more.

This discussion will be followed by an in-depth session titled Succession Planning at the Top....Lessons Learned, which will explore successful succession planning strategies for public agency executive-level staff. This session will feature a facilitated discussion of lessons learned by several utility leaders and Board members who have undertaken succession planning processes for executive-level staff, including case studies from Cleveland, Houston, Cincinnati, and St. Louis. These presentations will focus on the critical issue of whether to stay in house or conduct external searches for executive replacements.

Facility and Collection Systems

NACWA Sends Letter to EPA Urging Action on SSO Rule
On September 14, NACWA sent a letter (http://www.nacwa.org/getfile.cfm?fn=SSOLetter.pdf) to Ben Grumbles, EPA Assistant Administrator for Water, requesting that EPA commit significant resources to establish a national policy for sanitary sewer overflows (SSOs). “Absent a meaningful commitment to move forward from EPA, NACWA intends to formally petition the Agency to initiate an SSO rulemaking,” the letter stated. A comprehensive national program for SSOs will eliminate the current uncertainty about SSO control requirements that discourages communities from improving their sewer infrastructure. With national standards, communities will be able to plan appropriately to establish or maintain funding for managing and operating their sewer systems, with less concern about defending haphazard enforcement actions. A national program will also allow satellite collection systems to be brought under Clean Water Act jurisdiction. Several years ago, EPA expressed its intent to refocus efforts on a national SSO policy after completion of a peak flow management policy. With the peak flow policy nearing finalization, NACWA now intends to hold EPA to its word to renew its commitment to an SSO policy.

NACWA Meets with White House to Address Concerns Over Peak Flows Policy
NACWA and NRDC met with the White House Office of Management and Budget (OMB) September 20 to address cost concerns regarding EPA’s draft peak excess flows policy. Specifically, OMB expressed concern that the proposal has no accompanying cost-benefit evaluation. NACWA addressed this matter by providing OMB with member agency information on cost while also emphasizing the critical need for the policy as another tool for managing the rising cost of cleaning up the nation’s waters. NACWA also reiterated EPA’s assertion that it would like to move quickly to release the policy in final form. OMB expressed its appreciation for the work done by NACWA and NRDC in laying the foundation for the policy. Both groups will continue to work together to ensure finalization of this policy as quickly as possible.

Utility Management

NACWA Meets with EPA on Efforts to Revise 1997 Financial Capability Guidance
NACWA met with key EPA officials September 25 to discuss the Agency’s ongoing efforts to revisit its 1997 document, Combined Sewer Overflows - Guidance for Financial Capability Assessment and Schedule of Development. In July, NACWA’s Board of Directors approved Targeted Action Funds (TAF) for the Association to build on its 2005 White Paper, Financial Capability and Affordability in Wet Weather Negotiations, and further develop a more reasonable approach to assessing a community’s ability to pay for environmental obligations. NACWA intended to use the TAF project to influence EPA’s decisionmaking process with regard to revising the 1997 guidance. EPA has finished a review of the underlying economic assumptions in the 1997 guidance and was scheduled to present the findings from that review to Wastewater Management Office Chief, Jim Hanlon last week. Based on this briefing, Hanlon will recommend to Ben Grumbles, Assistant Administrator for Water, on the Agency’s next steps for revising the guidance. NACWA does not expect major changes to the document, but hopes its new, at press time, TAF effort will continue to put pressure on EPA to take a more holistic approach to evaluating the financial capability of the nation’s municipalities to undertake major environmental improvement programs. NACWA’s TAF effort will be completed by the end of the year.

Water Quality

NACWA Meets with EPA as Agency Prepares Supreme Court Filing on TMDLs
NACWA, along with other clean water stakeholders, met September 7 with EPA officials on their ongoing efforts to respond to the U.S. Court of Appeals for the D.C. Circuit’s April 25 decision on the meaning of "daily" in total maximum daily loads (TMDLs). EPA continues to work on a memorandum intended to provide guidance to states and regions on implementing TMDLs in light of the decision. It now appears that EPA will use the memorandum as a component of the government’s filing in the continuing legal fight over the decision. As reported in last month’s Regulatory Update, the D.C. Water and Sewer Authority (D.C. WASA), a NACWA member agency, has petitioned the Supreme Court for review of the April 25 decision, and NACWA and the Wet Weather Partnership (WWP) filed a joint brief August 24 (http://www.nacwa.org/getfile.cfm?fn=2006-08-24WWPUSSCAmicus.pdf) supporting D.C. WASA’s request. EPA, represented in the case by the U.S. Department of Justice (DOJ), filed a letter (http://www.nacwa.org/getfile.cfm?fn=2006-09-06scltrsg.pdf) September 6 with the Supreme Court asking for the additional time to respond to the petition for Supreme Court review of the case. The government now has until October 25.

NACWA submitted comments (http://www.nacwa.org/getfile.cfm?fn=2006-07-27DLcmts.pdf) on EPA’s draft memorandum and continues to have concerns with EPA’s proposed approach, which draws a tenuous distinction between TMDL development and permit limit implementation. The Association will keep members apprised of additional developments with the case.

NACWA Plans Intervention in BEACH Act Case
NACWA’s Board of Directors has approved the Association’s intervention in litigation surrounding the BEACH Act to ensure the Association has a seat at the table in anticipated negotiations. NRDC is suing U.S. EPA over its failure to meet BEACH Act deadlines for conducting key studies and for developing new bacteria criteria for coastal waters. The Association is currently evaluating whether to intervene on the side of NRDC to ensure that EPA moves forward with developing new or revised criteria. At the same time, NACWA’s anticipated involvement in the case will also help ensure EPA has adequate time to conduct the necessary studies to establish reasonable, scientifically-based criteria.

NACWA Weighs in on Proposed National Laboratory Accreditation Program
NACWA sent a letter (http://www.nacwa.org/getfile.cfm?fn=2006-09-06Grumbles.pdf) September 6, to Benjamin Grumbles, EPA Assistant Administrator for Water, regarding an initiative by the National Environmental Laboratory Accreditation Conference (NELAC) to partner with the Agency on a national lab accreditation program. Representatives of NELAC met with EPA to request that the Agency mandate a national accreditation program, based on the existing NELAC standard, requiring that all Clean Water Act-related analyses be conducted by nationally accredited laboratories. NACWA’s letter urged EPA not to consider NELAC’s proposal at this time given the lack of municipal input into the current NELAC accreditation standard and other issues associated with the standard itself. NACWA also requested that public wastewater treatment utility representatives be included in any future discussions regarding national laboratory accreditation to ensure that local government perspectives and concerns are adequately incorporated. In its meeting with key officials from the Office of Science and Technology (see related story above), NACWA learned that NELAC representatives had been told that EPA was not likely to mandate national accreditation. NACWA will pass along any additional information regarding lab accreditation issues to the membership as it becomes available.