TEXAS WATER ENVIRONMENT HORIZON November 13, 2012 Amanda Waters - - PowerPoint PPT Presentation

TEXAS WATER ENVIRONMENT HORIZON November 13, 2012 Amanda Waters WEF Government Affairs Counsel

WEF Government Affairs Program

• WEF’s Strategic Plan Defines/Drives the

Program

• Critical Objective - Increase Awareness of

the Value of Water

– Expand WEF’s commitment to public advocacy for clean water and public health – Inspire respect for water and water professionals

• Team: Staff & Government Affairs Committee

WEF’s GA Hot Topics

• Congress

– 112th Congress; Lame Duck Session – 113th Congress

• Legislative Update

– WEF’s National Legislative Priorities/Bill Watch – Grassroots Advocacy – Water Puts America to Work Campaign

• Regulatory Update
• WEF/AWWA DC Fly-In

Let us Reflect on the 112th Congress

• The Legislative Branch at its finest
• Trivia – The 112th Congress:
• A. Will go down in history as the most productive

Congress in the Nation’s History

• B. Is at least more popular than BP during the

Gulf oil spill (according to Gallup)

• C. Passed fewer bills than any Congress in

recorded history including Truman’s “Do Nothing” Congress of 1947-1948

Source: Washington Post "14 Reasons Why this is the Worst Congress Ever" July 13, 2012

Washington Post: "14 Reasons Why this is the Worst Congress Ever" July 13, 2012

Why so unpopular?

• Extreme Polarization/Gridlock

– Need to govern more and campaign less – “No legislation is good legislation”

• Set back recovery

– Debt ceiling debacle – credit rating downgrade

• Budget
• Appropriations

Source: National Journal Research, 2012

High Turnover

2013 Will Bring Lots of New Freshman Faces

Served 2- 6 years Served 0- 2 years

Distribution of Congress by Tenure NJ Research Forecast: Jan 2013

Served more than 6 years

* 2013 figures are NJ Research forecast based on open seats to date (includes announced retirements), projected retirements, and projected incumbent losses (based on a re-election rate of 90%).

46%

34%

• House
• At least 79 new members

44 Dems, 35 Reps

• Knocked out 20

incumbents

• Retirements/Redistricting

responsible for others

• Senate
• 12 new members

A House Divided

• House of Representatives

– Republicans 234 seats – Democrats 196 seats – 5 Uncalled Races (AZ’s 2nd, CA’s 7th, CA’s 52nd, FL’s 18th, NC’s 7th)

• Democrats leading in all 5 – will hold 201
• Would amount to net gain of 8 house seats for

Democrats (112th Congress - 242:193)

• Senate

– Democrats 55 seats (gain of 2) – Republicans 45 seats (loss of 2)

Lame Duck Priorities

• Commences Today – likely adjourn end of Dec

– Not much work until after Thanksgiving

• Fiscal Cliff/Sequestration – January 2 Budget

Control Act of 2011 takes effect

– Congress will likely reach agreement on 4-6 month extension

Why is this information important?

• Helps shape strategy and expectations

Legislative Update

• 1. Funding Bills
• 2. Blocking CWA Jurisdiction
• 3. Farm Bill: Healthy Watersheds

Coalition

• 4. “Buy America” provisions
• 5. USGS NAWQA program support
• 6. Energy and Water Bills
• 7. Federal, EPA Budget Outlook

• 1. Summary of Funding Bills
• WIFIA
• Boxer/Inhofe bill
• Merkley bill
• Blumenauer bill
• SRF/WIFIA-like program
• Private Activity Bonds
• National Infrastructure Bill
• Brown Affordability Bill

• 1. WIFIA: Water Infrastructure

Financing Innovation Authority

• Modeled after existing, successful TIFIA
• Would supplement and not compete with SRF

– provide direct lending for large projects not served by SRF

• Help states leverage SRF programs through direct lending

– 27 states already leverage SRF programs on bond markets; WIFIA loans would offer another mechanism

• Would borrow Treasury funds at low rates

– $30 million WIFIA loan = savings of ~$10 million in interest

• Funded by loans/loan guarantees: minimal impact on federal

budget

• AWWA spearheading, with WEF support

• 1. Water Resources

Development Act (WIFIA)

• Senate Environment & Public Works Committee

Chair Sen. Barbara Boxer (D-CA) and Ranking member James Inhofe (R-OK) will introduce a WRDA bill with WIFIA pilot component

– 5-year pilot – WEF is currently reviewing and will be submitting comments to Boxer’s staff this week

• 1. Merkley WIFIA Bill
• Senator Merkley (D-OR) may be introduce

WIFIA legislation during lame duck

• WEF reviewed draft
• Submitted letter of support and suggested

changes on 11/2

– Draft bill defined technologies (too limited; some not considered advanced)

• Technology is rapidly changing; should not limit

– Buy America provision – manufactured goods

• 1. Blumenauer: Water Protection and

Reinvestment Act

• Rep. Blumenauer (D-OR) - Clean

Water Trust Fund bill

– H.R. 6249 introduced on August 1, 2012

• Funding through tax on flushables

and Rx = $9B annually

• WIFIA provision funded at 10% of

revenue generated

• 1. Private Activity Bonds
• H.R. 1802 [Pascrell/Davis]; S. 939[Menendez/Crapo]

– Sustainable Water Infrastructure Investment Act of 2011

• Amend IRS Code - volume cap for private

activity bonds shall not apply to bonds for water and wastewater facilities

• Helps privately-owned facilities

– Publicly-owned utilities can already sell tax-free bonds

• WEF has joined coalition to try to support

• 1. National Infrastructure Bank

Proposals

• Sen. Sherrod Brown (D-OH) and Rep. Rosa

DeLauro (D-CT) have similar bills

• S. 1550 has 1 cosponsor; H.R. 402 has 77

cosponsors

• Provides bonds for energy, environmental,

telecommunications, and transportation infrastructure projects

• Funded at $1B/year for five years

• 1. Water Quality Protection

and Job Creation Act of 2011

• HR 3145 introduced on October 11, 2011 by
• Reps. Rahall, Bishop, Petri, LaTourette
• Reauthorize CWSRF: $13.8B for 5 yrs
• Reauthorize Sewer Overflow Grants: $2.5B, 5 yr
• Establish Clean Water Trust Fund; study “fees”
• Authorize WIFIA-like program of loans, loan

guarantees for SRF support and large projects

• Currently “blocked” by Republicans

• 1. Integrated Permitting &

Affordability Bill

• Clean Water Affordability Act of 2012

– S 2094, by Sen. Sherrod Brown (D-OH), and HR1189, by

• Rep. Robert Latta (R-OH)

– One cosponsor in Senate; 3 in House

• $1.8B for 5 yrs of grant program funding for infrastructure

upgrades in financially distressed communities

• 75–25 cost share for the planning design and construction of

treatment works to control combined sewer overflows

• requirement that EPA tailor mandates to meet the financial

needs of individual communities

• an extension of loan repayments from 20 to 30 yrs

• 2. Blocking CWA Jurisdiction
• June 6 - House passed energy & water spending bill that

prevents USACE from enforcing proposed EPA CWA jurisdictional guidance for streams and wetlands [HR 5325]

• June 7 - House T&I Committee passed bill to prohibit EPA

and USACE from finalizing the CWA jurisdiction guidance [H.R. 4965] – Prohibits the Administration from approving any regulatory guidance to CWA without a thorough rule-making process – Has broad bi-partisan support with 88 co-sponsors

• EPA/USACE has committed to formal rulemaking

– House seems intent on blocking EPA

• 2. Blocking CWA Jurisdiction
• Sept. 20, House passed Clean Water

Cooperative Federalism Act of 2011 (enrolled as HR 3409)

• Restricts EPA’s ability to revise existing WQ

standard or promulgate new ones unless state concurs

• Senate unlikely to consider the bill during lame

duck session

• 3. 2012 Farm Bill
• Healthy Waters Coalition: recommendations to ensure water

quality programs adequately supported and funded

• HWC recommendations not specifically adopted in Senate bill

and not in House bill

• Nutrient management is eligible for conservation funding in

Senate version of Farm Bill

• 2008 Farm Bill expired on Oct. 1, 2012 but minimal impacts

are expected for several months

• Congress will likely work on Farm Bill during lame duck

session

• 4. “Buy America” Provisions
• Rep. Robert Aderholt (R-AL) “Buy America”

amendment included in FY’13 EPA appropriations bill

– DWSRF projects only

• Construction must use American “iron and steel

products”

– includes lined, unlined pipes, fittings, manhole covers, other municipal castings, hydrants, tanks, flanges, pipe clamps, restraints, valves, structural steel, reinforced precast concrete, construction and building materials – Original amendment included “manufactured goods”

• WEF, AWWA and AMWA sent a letter to Approp Comm

asking that the issue be determined by Transportation & Infrastructure instead

• 5. USGS National Water Quality

Assessment Program (NAWQA)

• Program Objectives:

– Assess status of Nation’s water quality – Link science to water management and protection – Inform decision makers

• WEF sponsored letter to Senate that was co-signed by 31

NGOs in support of increased funding for NAWQA program

• WEF-hosted Webcasts/USGS presentations and participation

at WEF/MA meetings and conferences – Nutrients, Chlorides

• Joint USGS/WEF Briefing on Effects of Urbanization on

Stream Ecosystems – Nov. 30, 10:00 -12:00

• 6. Energy and Water Bills
• HR 5826: Coordinating Water Research for a CW Future

Act of 2012

• Raises importance of water research within the White

House's Office of Science and Technology

• Pools funding from other federal agencies for research
• HR 5827: Energy and Water Research Integration Act of

2012

• Instructs the Dept. of Energy to include

water/energy research in funding. Provides $60M annually for research

• 7. Status of EPA Appropriations
• House Budget Committee FY13 budget plan [aka,

Ryan budget] proposes significant discretionary programs cuts, including $3.5B reduction in environment and natural resources

• EPA Jackson “very concerned” about House budget
• EPA now operating under another CR until March

2013 passed by Congress prior to adjourning [after election]

• Jan 2, 2013: Sequestration would cut EPA

additional 8.2%

• Final 2013 appropriations: ???, debt ceiling debate

• 7. President’s Proposed 2013

EPA Budget [2/13/12]

• $8.3B
• $105M decrease from prior budget

– achieved via cuts to CW and DWSRFs offsetting increases in State grants

–CWSRF: $1.18 billion [$1.47B in 2012] –DWSRF: $850 million [$918M in 2012]

Grassroots Advocacy

Xylem Value of Water Survey

Inalienable Rights: Life, Liberty, Pursuit of Happiness and Clean Water

Taken for granted but still a concern

2/3 of American voters willing to pay average of $6.20 more/month

We Need Bold Leadership

• Survey results demonstrates we have

agreement on the need to invest in water infrastructure

• Need renewed political leadership to help

drive sustainable and resilient solutions

• Our Role – must first help connect the dots

– Educate elected officials – vast amounts of data to support our case – What motivates them? Votes, Job Creation

Water = Jobs

• Investment of $1B

= 26,000 jobs

• Every job in water

and sewer creates 3.68 new jobs

• Each dollar spent

yields $2.62 in economic output

• National ASCE Infrastructure Report Card
• D- Grade for drinking water and wastewater

infrastructure

• Delayed maintenance and chronic underfunding

Texas ASCE Section

• Drinking Water given D- (got a D in 2008)

– about $212B will be needed by 2060 for water supply demand – Must have to attract and retain business and industry

• Wastewater given C- (same score as in 2008)

– Large investments by urban centers have improved wastewater infrastructure – due to population growth and aging infrastructure, Texas needs to invest $11.2B over the next 20 yrs to upgrade facilities.

• Crespin Guzman, ED – invest now or pay more later; “we

cannot continue to build things and not fund or maintain them”

Investment Gap

• As gap grows, impacts
• n jobs, lost business

sales and GDP worsens

• Failure to make

investments ‐ unreliable water delivery and wastewater treatment

• Unless gap is

addressed by 2040, 1.4 million jobs could be at risk

More Costly to be Reactive

• Drastic increase in water main breaks and

pipe failures

• Broken and leaking pipes cause loss of ~

two trillion gallons of drinking water per year

– annual cost of $2.6 billion

Bridging the Gap Will Drive Innovation

• Drives research/innovation leading

to new technologies

– Keep America competitive in global market

• 2010, US environmental industry

generated ~$312B in revenues

– Global market of >$800B

• Water equipment and chemicals -

largest component of the environmental sector

– 37% of exports; ~$10B annual exports

Water Investment Safeguards Public Health and Quality of Life

• Increase in Water-born

illnesses

• Monetary burden of

$413 million over next 9 years

• Recent study in

Environmental Science & Technology - AGI

New Sense of Urgency - Race to Resilience

• Do not have decades

before next “Sandy” strikes

• “New Normal” weather

patterns

• Cost/Benefit/Risk

Analysis – Make best tradeoffs

Unified Voice for Water Investment Campaign Overview

• WEF, our MAs and partnering organizations

are utilizing our combined power and reach to raise awareness, educate and advocate

• Core Message - Water Puts America to

Work - Investment in Water Infrastructure Creates Jobs, Drives Innovation, and Safeguards Public Health

Campaign Overview

• Campaign is not advocating for

any one solution or legislative proposal

– Not a Democratic or Republican issue – It is an American issue

• Objectives

– Get the attention of decision makers – Raise awareness of critical need for water infrastructure investment and indisputable link between investment and jobs – Send message that investment in water infrastructure must be a national priority

Campaign Progress

• 2012 Republican and Democratic National

Platforms include water infrastructure investment language

– reference the positive impact on job creation, economic growth, and health – GOP Platform, We Believe in America (pp. 1, 5)

http://www.gop.com/wpcontent/uploads/2012/08/2012GOPPlatform.pdf

– Democratic Platform, Moving America Forward (pp. 40-41, 34, 49) http://assets.dstatic.org/dnc-platform/2012-

National-Platform.pdf

Campaign Progress

• Congress

– Importance of Grassroots Advocacy

• Partnerships

– 31 Member Associations representing over 28,000 members (WEAT) – National water organizations and companies

• APWA, American Water, AWWA, Associated

General Contractors of America, Black & Veatch, CH2M Hill, GE Water & Power, NACWA, National Association of Water Companies, United Water, Veolia, Xylem

Campaign Progress - Op-Eds

• Op-Eds placed in major state

newspapers across the country

Campaign Website

• www.waterforjobs.org
• Campaign Overview, Statistics, News
• Partners
• Advocacy Toolkit/Templates

Campaign Dialogue and Information

• Join LinkedIn Group

– Water4Jobs

• Made over 179,000 impressions

during 3 Presidential Debates

• Send Your Own or Retweet from

WEF

– @WEForg / Water Environment Federation – @waters4wef / Amanda Waters

Next Steps

• Outreach to new/existing Members of

Congress

• Aftermath of Hurricane Sandy

– Dialogue re: resiliency and water infrastructure – Target national media outlets (Broadcast, print, radio)

• Host Infrastructure Summit

Support the Campaign

• Ask elected officials what they intend to do to

address our nation’s water infrastructure crisis

– Ask them to put America to work by making water a top priority – Election may be over but next one is just around the corner

• Outreach and Message Delivery

– Put campaign blurb and website link on you’re your website – Visit elected officials or write letters – Contact media – Op-Eds/Letters to Editor – Use social media

• Visit www.waterforjobs.org

Water Advocates Program

• Jobs Campaign Water Advocates Program
• 36,000 members – create grassroots network of water

professionals in every state

• Work together to more effectively promote sound

legislative and regulatory policy on issues affecting the water sector

– Will seek input on national priorities; want to learn/assist with state priorities

• WEF will provide advocacy training

– Advocacy Guide and training materials – Who, when and how to reach out to decision makers and target audiences (elected officials, media, business and community organizations)

Regulatory Update

• 1. Administration/Cabinet/EPA Changes
• 2. Integrated Permitting
• 3. Water Quality Trading
• 4. EPA NPDES e-reporting
• 5. Stormwater Rulemaking

• 1. EPA/OW Leadership Changes
• EPA Administrator Lisa Jackson – speculation

– Difficult confirmation fight for her replacement – Bob Perciasepe, current deputy – Kathleen McGinty, former White House and PA environmental official

• Current EPA Office of Water Leadership:

– Nancy Stoner acting AA for Water – Ken Kopocis, former Hill staffer, nomination still blocked by Senate Republicans – Will expire when Congress adjourns – 210 day limit

• 2. EPA Integrated Planning
• Guidance – recognizes existing tools & flexibility in

CWA to offer some relief

– Unprecedented flexibility

• Prioritize and sequence CWA-related

requirements/projects (stormwater and source water protection projects can be included)

• Affordability Analysis – can consider all water related

costs (asset management/drinking water)

• Voluntary
• Permit/Enforcement Context

• 2. EPA Integrated Planning
• Final Framework Released June 12
• June 14 – WEF hosted webcast
• July 25 - WEF participated in House Water

Resources & Environment Subcommittee Meeting

• Effect of Obama’s re-election on IP?
• Widespread implementation?
• WEF’s Role

• 3. Water Quality Trading
• WEF is part of NACWA’s WQ Trading Group
• EPA, World Resources Institute and WEF
• 2-day free web-based WQ Trading Workshop
• November 28-29, 2012
• Day 1: Hosted by EPA - policy issues
• stakeholders to discuss status and next steps in

advancing environmental markets as tool to achieve WQ improvement under CWA

• Day 2: Hosted by WEF/WRI – technical
• baselines, pollution “hot spots,” water quality standards,

stormwater and MS4 trading

• 4. EPA NPDES e-reporting
• EPA will be proposing NPDES e-reporting rule in

near future

• Employing user-friendly interface [think

TurboTax]

• Will require all NPDES permittees to e-report

directly

• Eliminates paper [~DMRs]
• Will hopefully marry to existing State e-systems

• 5. EPA Stormwater Rulemaking
• Release of proposed rule delayed several times
• EPA completing economic analysis and

alternative selection soon

• Will send to OMB with 90-day review period
• Proposed rule to be released to public on June

10, 2013 (open for public comment for 90 days)

• Final rule to be released December 10, 2014
• WEF will submit comments

WEF-AWWA 2013 Washington DC Fly-In

• Build on past two years of success
• April 17-18, 2013

– Arlington Hilton Hotel

• Will work with MAs to determine theme/

focus area

– 2012 = WIFIA – 2013 will include Water Puts America to Work theme

WEF Provides Assistance During Sandy

• Staff and volunteers helping to get equipment

to affected systems in northern NJ

• Also helping to identify options for solids

management

• Don’t forget to show gratitude to water quality

professionals

Questions

Amanda Waters Government Affairs Counsel Water Environment Federation awaters@wef.org 703-684-2432