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 – 112 th Congress; Lame Duck Session – 113 th 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 112 th Congress • The Legislative Branch at its finest • Trivia – The 112 th 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
High Turnover 2013 Will Bring Lots of New Freshman Faces Distribution of Congress by Tenure NJ Research Forecast: Jan 2013 Served more • House than 6 years Served 2- 6 years • At least 79 new members 44 Dems, 35 Reps • Knocked out 20 34% 46% incumbents • Retirements/Redistricting responsible for others • Senate • 12 new members Served 0- 2 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%). Source: National Journal Research, 2012
A House Divided • House of Representatives – Republicans 234 seats – Democrats 196 seats – 5 Uncalled Races (AZ’s 2 nd , CA’s 7 th , CA’s 52 nd , FL’s 18 th , NC’s 7 th ) • Democrats leading in all 5 – will hold 201 • Would amount to net gain of 8 house seats for Democrats (112 th 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
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