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July 3

AWWA and Private Water – as AWWA continues to align itself with the private water industry’s agenda on small community issues (private activity bonds, affordability, sustainability, SRF grants to private systems, SRF set-asides for large less needy systems, etc.), one of your colleagues provided us with the following comment: as a small system, I can not agree with the concept of authorizing private companies to be able to subsidize their corporations with public money. Also, this dilutes the dwindling pile of what ever is available to the public entities. My little water system was 27 years old this spring. There are NO plans or operable meters, and flushing hydrants but no valves to turn them off for repair. The entire system must be shut down to repair a break or leak. However, we did not get any of the stimulus money… Why do we even care, when our mentors are not supporting rural America water?

Private Water CEO Tells His Regulators - that private water utilities can play a large and beneficial role in addressing the deteriorating state of the nation's water infrastructure. And that this can be accomplished by allowing private water more access to low interest tax-exempt financing and state revolving loan funds. Would this result in more profits for their shareholders? The CEO says these policies have "helped Aqua America maintain a low cost of debt capital (below five-and-a-half percent)." A few years ago during a television interview, the same CEO was asked how his company will make profit in the water business. The CEO had only one response, to “consolidate” the over 50K water systems in the country.

Consolidation is the Solution to Expensive Regulation – Instead of fixing EPA’s variance policy (which EPA has acknowledged is flawed), the EPA is looking at the idea of encouraging consolidation among water utility systems to establish larger rate bases for financing regulatory compliance. Washington State’s Top Environmental Official says EPA has drafted a report on small system variances that notes Alabama has been having some success with consolidation of small water utilities. Such an approach could avoid what EPA has referred to as the “sustainability” problem in government financial assistance—the problem that budgeting of federal and state assistance may fall short of what small systems need over the long term (see full article).

Reclamation Stimulus Funding - the Bureau of Reclamation has identified 27 water reclamation and reuse projects that will share in a total of $134.3 million under the American Recovery and Reinvestment Act of 2009 (ARRA). These 27 projects will team non-federal sponsors with local communities and the federal government to provide growing communities with new sources of clean water while promoting water and energy efficiency and environmental stewardship.

GAO Study Released on Water Tax – released this week, the report lists options for a federal Clean Water Trust Fund. GAO's report explores multiple revenue-raising options such as excise taxes on beverages, pesticides, and pharmaceuticals; corporate income taxes; and water use taxes. The House Transportation and Infrastructure Subcommittee on Water Resources and Environment will be holding a hearing at 2pm on July 15th entitled, "Opportunities and Challenges in the Creation of a Clean Water Trust Fund".

Section 1926(b) and Lawyers’ Fees – in the hotly contested federal court case in rural Kansas, the municipality lost the case in district court, and now they are going to have to reimburse the rural water district for the cost of the district’s lawyers. The district has filed a motion for over $600,000 in legal charges (news article). Lesson: understand this law (section 1926(b) before spending millions in court. The city water system also has to pay their legal fees in addition to the district’s legal fees.

EPA Funding Bill Moving Through Congress – The House passed the FY 2010 Interior and Environment Appropriations bill that will give $2.3 billion to the Clean Water State Revolving Fund and $1.4 billion for the Drinking Water State Revolving Fund. The Senate Interior and Environment Appropriations panel would provide similar increases: $2.1 billion for the Clean Water State Revolving Fund and $1.39 billion for the Drinking Water State Revolving Fund. These numbers would reflect a $1.4 billion and $558 million increase over the FY 2009 appropriations for the two funds. The House version of the FY 2010 spending bill would continue provisions that were created in the American Recovery and Reinvestment Act earlier this year – for a set aside for green infrastructure and, a portion of the funds could be distributed with further subsidization such as no interest loans.

The Law of Unintended Consequences – a school in Ohio receives enforcement action from state of 11 parts per bill arsenic (arsenic is regulated on the health effects for 70 years of consumption – and this is a temporary source of water). Town is Missouri is reported to have contaminated water with 82 part per billion (PPB) of disinfection byproducts when the MCL is 80 ppb. The U.S. EPA has no problem with the public being told that “EPA reports that people drinking water exceeding the standards for trihalomethanes also might experience problems with their liver, kidneys or central nervous system” for this situation. However, state governments feel compelled to tell the public the EPA information is not appropriate.

June 21

DHS, EPA, and USDA Appropriations Update – (click it)

The President Recognizes the USDA’s Success with the Rural Water Stimulus – “the Agriculture Department will begin 200 new rural waste and water system projects” (article).

Regulatory Update (latest on the EPA effort to define what makes a water system sustainable and other topical issues).

EPA Stimulus Funding Being Used to Refinance USDA Projects – Nebraska has recently released its list of the projects that the SRF plans to fund under the Recovery Act (Stimulus Act). A number of the communities were already approved (obligated) for USDA funding packages including the following communities: Bridgeport – $5,830,650; Sutherland – $1,911,487; Alda – $277,425; Minatare – $438,750; and Henry – $99,509. Two of EPA’s policy priorities are “full-cost pricing” and “sustainability” which contents that federal funding should not subsidize the financial responsibility of the local ratepayers.

Private Water Happenings – AWWA’s Water Utility Council, overwhelmingly, put their support behind legislation to allow more taxpayer subsidies to be available to private water companies. The motion accepted during AWWA’s annual conference this past week, by a private water company representative on AWWA’s policy making committee. ¶ A private water supply just won the best tasting water at the Delaware Rural Water annual conference (see announcement). ¶ The private water association is promoting their participation with their regulators – at the regulators annual conference. The private water representatives have been invited by the regulators to discuss the following topics: affordability, small water systems, and pending federal water legislation. ¶ The Senate is expected to vote on a reauthorization bill to allow private water system more access to the SRF’s subsidized funding.

Clean Water Act Expansion – the Senate Environment and Public Works Committee Thursday approved by a vote of 12-7 a compromise version of the controversial Clean Water Restoration Act (S. 787). The legislation reinstates the power of the Clean Water Act to protect all "waters of the United States," replacing the term "navigable waters" and thus vastly expanding protection to the nation's surface waters (article).

June 17

House Chemical Security Legislation in 3-Way Committee Clash – three House Committees of jurisdiction are working on chemical security legislation. Until recently, the House Homeland Security Committee and Energy and Commerce Committee were in a jurisdictional stalemate over attempts to rewrite the nation's chemical facility security laws. But the Committees worked out a compromise in which EPA retained oversight over drinking water utilities and the DHS control over wastewater facilities. However, it got more complicated this week when the House Transportation and Infrastructure Committee (the third committee) announced it wants to keep EPA in charge of security measures at wastewater facilities, a move likely to renew the jurisdictional fight over reauthorizing the chemical facility security law. The Chairman of this Committee introduced legislation to follow-up on the committee’s intent – HR 2883, introduced yesterday by Chairman Oberstar (MN), would ensure that EPA retains oversight of security at wastewater facilities. DHS Committee Chairman Thompson (MS) said the three committees would continue to discuss ways to work out the jurisdictional question. He his Committee has been working on crafting a bill that would facilitate jurisdictional conflicts between the three committees, and that his bill (HR 2868) is a collaborative effort that identifies vulnerabilities in the current regulations and seeks to address them. The Energy and Commerce panel has not yet introduced its part of the bill to regulate water systems. It is unclear how this latest jurisdictional question will work itself out. Beyond the jurisdictional and reauthorization question, there are likely to be two main contentions as the bill moves forward -- safer technology language and a provision allowing third parties to sue either facilities or DHS if the regulations are not met. See rural water comments on this issue.

Small City of Newdale, Idaho – enforcement for less than 1 part per billion of arsenic and less than one part per million fluoride. Treatment to cost $1.2 million. (news article). EPA will not declare that the water is a dangerous (risk to public health), leading many to conclude it is not. Texas allows communities in similar situations to not treat for such de minis violations of standards. EPA declared that enforcement of these standards is unfair for small communities, however, has not proposed to change the standards or provide any enforcement relief.

June 5

Appropriations Cometh This Week! This week the House is scheduled to begin mark-ups of the appropriations bills. We should see some initial funding levels by the end of the week. The bills will still have a long way to go after this initial House consideration, which should take all summer and into the fall. The House Appropriations Committee this week is expected to unveil its FY10 302(b) allocations for the 12 appropriations bills. On Wednesday the Interior (EPA) Appropriations Subcommittee will meet to mark-up its spending bill and the Agriculture Appropriations Subcommittee will mark-up its bill Thursday. We have been discussing a new security assistance initiative with the DHS appropriations committees for the last few years – see our recent summary of rural water security initiatives that could be implemented immediately if funding were provided.

EPA Is Crafting a New Sustainability Policy for Water Supplies – see EPA’s charter for this initiative, and rural water’s initial comments on EPA’s effort to define sustainability (comments). EPA’s Sustainability Working Group will meet this week to begin to tackle the amorphous topic of sustainability. Over the past few decades we have participated in the effort to define “viability” and “capacity” – and now “sustainability.” Mel Aust with CA Rural Water will represent rural water for the deliberations (starting Wed.). For your review: NRWA’s thoughts on SRF sustainability from Elmer Ronnebaum, LRWA’s Mayor Brasseaux, and Russ Donohue, rural water on SDWA sustainability with EPA and SBA comments.

Should USDA Be Crafting a Sustainability Policy Too – since that agency has more contact, experience, knowledge, and outreach assistance than any other? See recent memo to USDA offering to help.

Private Water Hires former Bush Administration EPA Official to Head Association (see announcement) – during his tenure as principal advisor to the EPA on infrastructure financing in the former Administration, EPA became a strong proponent of privatization and supporter of changes in the law to favor private water.

Irish Town Reduces Aluminum That They Voluntarily Put in Water (news from the emerald island)- the EPA’s DBP Rules have resulted in many communities increasing the amount of aluminum they put in their water. For example, this town explains how the EPA rule is forcing them to look at adding aluminum to their drinking water. EPA reports that 16,000 U.S. water supplies are also out of compliance with their rule for 2008. “In the past, studies in Canada and other countries have pointed to links between aluminum and Alzheimer's. A Canadian gerontologist demonstrated an apparent connection between mental impairment and aluminum in about 100 Ontario communities’ water supplies.” (source) The U.S. EPA does not regulate aluminum and only considers it a possible “atheistic” concern in drinking water (source). This website has received state aluminum monitoring data showing an increase in aluminum occurrence in that state’s water supplies.

Survey on Technology - you are invited to participate in a survey on the adoption of new technologies in the water and wastewater marketplace (see survey). This survey is intended to obtain information from water/wastewater utilities, federal/state water regulatory or permitting agencies and State Revolving Fund (SRF)/other funding entities on their use of technology evaluation data in the selection, permitting and funding of new technology applications.

Kansas City Loses 1926(b) Suit – the City of Eudora lost their territorial dispute with their neighboring rural water district in U.S. District. The judge is to decide on the amount of legal fees reimbursed. This week the Eudora city council voted to take the case to the U.S. appeals court. This could cost the city many tens of thousands of dollars more in legal fees with no guarantee of success (see news article).

June 2

What’s Going on with Rural Water on Regulatory Policy (see memo to Regulatory Committee).

EPA asked to intervene in Wyoming water permits where a District Court says feds have failed to consider impact on humans, “the human residents of the Central Valley must be taken into consideration when the federal government comes up with water allocation rulings to protect an endangered fish, U.S. District Judge says.” (news article)

May 29

The EPA National Drinking Water Advisory Council – just concluded its 2-day deliberations in Seattle. Rural water has a representative on the panel (David Saddler with AZ rural water), and current rural water President Fred Sheldon made a presentation to the panel on small community issues. Some key highlights:

· EPA will again be looking at the issue of small system variances. Of the 20+ members on the EPA panel, rural water is the only organization advocating the use of small system variances. All other (environmentalists, AWWA, RCAP, ASDWA, private water inc., etc. are opposed implementing the law they way it was written by Congress). EPA’s “objective” presentations on the issue only included the detailed views of comments opposed utilizing variances. Supporters’ views (including 6 U.S. Senators and NRWA’s comments made during the formal EPA NDWAC deliberations) were not mentioned… EPA did present comments of an environmental groups’ post-card writing campaign and a technology organization that were made outside of the formal EPA NDWAC deliberations. EPA did not explain how they decided to only present only some opinions on the issue and not others. EPA did make this quote about their decision not to allow small communities to have access to more affordable compliance options, “it is the law, but there are real concerns about it.”

· NRWA’s representative on the panel provided the most compelling presentation on the adverse impacts of over-regulation on low-income consumers. Our representative was incited to repost to the AWWA representative’s comments that small community operators are not smart. NRWA’s rep. countered this conclusion by listing his accomplishments, accreditations and licenses as a small community operator and claimed that this is the typical experience in his interactions with hundreds/thousands of small community operators in his career. The AWWA rep. also told the panel that rural water membership was prohibitively expensive and that only systems that pay rural water receive assistance. This caused an incredulous Evergreen Rural Water Executive Director to reply to set the record straight to the panel – that, in fact, all communities are eligible for rural water assistance free of charge, and that in Washington state they tell communities seeking membership that assistance is provided with or without membership.

· The private water representative on the panel explained how it is unfair that for-profit companies are not getting more of the grants under the recent national stimulus funding, but the companies are getting low-interest loans. The rep. explained that while the companies make profits off selling water, these profits are not realized by the companies getting grants or subsidized loans from the government.

New EPA Arsenic Assessment Under Consideration Could Result in MCL of 0.1 ppb – see news article on the issue, an industry letter in opposition, and a leading toxicologist’s objections.

Milwaukee Going Private? Scrambling for cash simply to fund basic city services, Milwaukee is looking into turning its state-of-the-art water treatment system over to a for-profit company. Cities such as Buffalo, Indianapolis and Atlanta have dipped their toes into the water-for-profit business by signing deals with private companies to run their systems for periods ranging from five to 20 years, with varying degrees of success - and failure. Atlanta ripped up its 20-year contract after four years of customers grumbling about boil orders, brown tap water and fire hydrants in disrepair. Milwaukee is pondering a 75- to 99-year lease. Water experts say the length of the deal Milwaukee is considering and the half-billion dollars it hopes to net make it unlike any other ever done in the U.S. (article).

Highly Watch KS 1926(b) Case Decided in Favor of RW District - the judge will award costs, including attorney fees, to rural water district. RWD's case handled by State Harris. The RWD had acquired a USDA loan, which made it illegal for any municipality to annex the land or prevent the district from serving the territory. The U.S. District Judge noted that the RWD couldn't acquire a federal loan just to protect its territory, but the loan must also help the district maintain its facilities (news article). The city had argued that the USDA provided a loan when it was not necessary and therefore 1926(b) does not apply to this district. On the other hand, a source within USDA said that all a district needs to eligible for a guaranteed loan is a letter from a local lender that declares they would not provide a loan without the federal guarantee. In previous ruling in this case, the federal district court published this order in March that held that guaranteed loans (guaranteed by USDA) qualify for 1926(b) protection (first decision that has definitively addressed that issue) and (2) the “unreasonable, excessive, confiscatory” issue described in the 10th Circuit’s City of Wilson case has been definitively deemed a “defense for which the municipality carries the burden of proof.” According to Steve Harris, “the Douglas County RWD No. 4 v. City of Eudora case proceeded to jury trial in federal court in Topeka, Kansas on 5/18/09. I served as lead trial counsel for the water district. After 9 trial days, the jury rendered a verdict (on 5/28) in favor of the rural water district on 100% of all issues and claims raised by the water district. There were 4 municipal annexations of district territory involved in the case (total of 113 acres). The uncontroverted evidence in the case showed that the anticipated future net revenue for water sales to the annexed areas (discounted to present day value) was $4,900,000. ($4,900,00 represents present day discounted net revenue the water district would lose if the city served water to the 113 acres rather than the water district.) The jury concluded that the city had ‘curtailed and limited’ the service made available relative to each of the 4 annexations in violation of 1926(b). The jury also entered a judgment for damages ‘related to engineering expense incurred by the district as a result of the controversy.’ There were no actual sales of water made by the city inside the annexed areas, however the evidence showed that the actions of the city resulted in curtailment of the ‘service made available’ by the district and water service being provided by the district (suit was filed prior to the city’s plan to connect a development to city water service). We will be proceeding with the attorney fee application pursuant to 42 U.S.C. Section 1988 (the suit involved claims for violations of 7 USC 1926(b) and 42 USC 1983). The Court is also expected to enter a permanent injunction against Eudora within the next 30 days based on the jury verdict. The trial judge was U.S. District Judge Julie Robinson - District of Kansas (in Topeka). This is the first case to directly address the legal issue of whether a guaranteed loan provides the same 1926(b) protection that a direct USDA loan provides. The court concluded that a loan from a private lender which has been guaranteed by USDA provides the same protection as a direct loan from USDA.”

May 25

Help Our Friends at WWEMA by Completing a Simple Survey – WWEMA is interested in your thoughts on water technology evaluation/adoption. WWEMA and AWWA, have produced a simple survey, and are planning to send it out in the next week. The purpose of this survey is to get a baseline understanding of what criteria is used by state regulators, permitting and funding agencies, and utilities in evaluating, approving and/or purchasing new technologies for deployment in the water and wastewater industry. WWEMA want to make sure water and wastewater utilities, large and small, are part of this undertaking.

EPA’s Drinking Water Advisory Council – meets in Seattle this week to discuss small system variances and other topics. Rural Water’s president will be on the agenda, to present small community perspectives to this eminent panel of experts (see agenda for this week’s meetings).

Rural Water Ed Has Been Quite Busy – juggling your agenda, see his latest update on all this

Leading Toxicologist Highlights EPA’s Injudicious Arsenic Decisions (see letter) which could lead to a lower arsenic level.

Kansas Leads Trend in Communities Suing Manufacturers of Chemicals Showing Up in Their Water Supply (full story).

A New EPA Science Advisory Board (SAB) Committee on Science Integration for Decision Making is charged to develop recommendations for EPA to improve the integration of scientific assessments in decision making (see AWWA comments).

EPA Focuses on Enforcement – Wyoming, Montana, and Utah

A Wisconsin Municipal Water Organization Against New Fees – the group is raising concerns about new fees the governor is proposing to fund staff to oversee the implementation of the Great Lakes water compact that would raise the estimated $1 million needed annually to run the compact. The group is urging the state legislature to set the fees by statute so any increase would have to be subsequently approved by lawmakers. They also are urging that if a cap is placed on fee payments, that it be high enough so it won't unfairly benefit power companies that are far greater water users than most municipal utilities (article).

May 21

Chairman Waxman Shows Legislation to Regulate Chemical Supplies in Water Supplies – asks Rural Water if this is something we might be able to support. Chairman is open to additional suggestions, but will be reluctant to make major policy changes. Any comments on the bill should be sent to the Chairman by May 27th. If you would like to comment to Chairman Waxman, please let us know and we will put you in touch with the appropriate people (draft legislation).

Asymmetrical Analysis – Rural Water Key Topic At EPA’s Budget Hearing – EPA comes before Congress each year to defend and explain their $10.5 billion budget request, as they did this week. Who would think that a main focus of such a hearing would be a $11.5 million rural water technical assistance initiative that EPA does not think should receive any funding. Apparently Congress sees this small portion of funding (about a tenth of 1% of EPA’s budget) as making a major impact on environmental protection across the country – and needs to be raised at the hearing. EPA continues to resist the local, state, and Congressional support for this assistance to small communities (full article).

Water in the News:

EPA Stimulus Funds Growth, Sprawl, and Economic Development in Maryland (a state know for its anti-sprawl ethos), but locals reject the offer (Washington Post).
New York Times OP/ED Supporting Chemical Security Legislation (article).
Times on CA Drought Causing 50 ft. Subsidence Drops in Land Levels (article).
NPR Covers Water Supply Battles and Restrictions in CA (article).
Times Covers Newest $320 Mill Desalination Plant for Regional CA Drinking Water (article).

May 7

USDA Budget Good for Rural Water – the new Administration’s USDA budget includes the largest rural water request ever (see budget released today). Full funding requested for SWP and specifically mentions NRWA (for the first time) – thank you USDA.

EPA Still Undecided on Drinking Water Variances – more than 10 years since the this law was passed, with thousands of communities being mandated to comply without an affordable compliance option, and more than three years since EPA declared what had been obvious; that small communities are being treated unfairly (and harmed) by EPA’s regulations, the Agency has announced the following: Federal Register: May 7, 2009, “EPA is giving notice of a public meeting to discuss policies to assure equitable treatment of small drinking water system customers” on May 20, 2009. Praise to the new Administration for today’s declaration in the EPA budget which stated, “EPA is to work with State and local governments to address Federal drinking water policy in order to provide equitable consideration of small system customers.'' FYI – rural water comments on the current EPA policy.

May 4

AWWA’s Proposal for National Water Bank (see report). Key findings: eliminate restrictions on arbitrage earnings for SRF bonds, exempt guaranteed bonds from federal taxes, and public/private banks & GSEs would NOT be beneficial.

Jihadist Discussions on Targeting Water Supplies of Western Countries – available intelligence and recent events indicate that terrorists have the capability to mount an attack. TAM-C has identified jihadists' request for information on "poisoning reservoirs or water pipelines in the lands of the infidels." Specifically, the communication requested information on poisonous substances such as: their potency and effectiveness; how long it takes them to kill; their cost; and where they can be obtained. Recent al-Qaeda recordings have made a point of noting that "a small quantity of dioxin could successfully poison the water supply of New York City."

EPA Mandates Power Plants to Remove Toxins from Smokestacks – toxins end up in waterways (full article). Not that this article is inaccurate, however, the industry comment is limited to the last paragraph – and very short. When we spent the better part of a day briefing this reporter on EPA’s water program – she limited our comments to the last paragraph and quoted us out of context. On the other hand, our antagonists were treated differently.

NY Times Covers New Wrinkle in ESA Law – Environmentalists have been trying through lawsuits to force regulation of greenhouse gases to protect endangered species citing global warming to force the protection of polar bears and other species. Now, the groups see EPA's proposed, "endangerment finding" -- which could lead to regulation of greenhouse gases as a tool to make this happen. EPA's proposal is recognition that existing law can and should be used to address the climate crisis (NYTimes).

April 30

USDA Opens the Tap for Rural Water Stimulus Projects (announcement) - The USDA Secretary announced $615.8 million in water projects to 193 projects. This page had reported on delays in awarding grants last week. We were told by TN & SD rural water that USDA has a new policy on awarding water grants. The USDA process is as follows: state RD develops list of recommended projects - forwards to USDA, DC. USDA Administrator and Secretary review ALL projects and forwards to OMB. OMB reviews and forwards to White House. White House reviews and advises USDA. State RD makes the project award. The state RD office is not allowed to discuss the status of pending projects until a decision has been made. It seems apparent that the new process is resulting in new delays. Side note – the City of Ruidoso Downs, NM has been awarded $9.7 million to build a wastewater treatment plant to comply with EPA's TMDL program. Locals report that this new treatment system is unwarranted, excessive, and only a result of an arbitrary state TMDL program. However, don’t fault USDA, they have nothing to do with EPA compliance determinations.

EPA Raids Town for SDWA Violations (full article).

1926 Inspection & Guaranteed Loans – one short paragraph of federal law has become a canon of federal statutory interpretation. Two current questions of 1926(b) parsing (in the long-running KS case of Douglas Rural Water v. the City of Eudora, court published this order) including the coverage of guaranteed loans and the definition of “unreasonable, excessive, confiscatory.” According to a source in KS, the USDA provided a loan when it was not necessary and therefore 1926(b) does not apply to this district. On the other hand, a source within USDA says, “au contraire,” that all a district needs to eligible for a guaranteed loan is a letter from a local lender that declares they would not provide a loan without the federal guarantee.

KS Rural Water Joins EPA’s Water Sense Initiatives (KRWA announcement).

Bottled Water Sickens – a dozen students at California junior high (headaches, nausea and dizziness after drinking Aquafina water (news).

Defining Waters of the United States – the Senate Environment & Public Works Committee is slated to mark up S. 787 May 7. However, just days before a planned Senate environment committee markup of legislation to clarify the scope of the Clean Water Act (CWA), Senator Baucus (MT) is floating an alternative proposal that could split committee Democrats over the issue. Baucus’ plan would, for the first time, codify EPA regulatory exemptions for waste treatment facilities and prior converted croplands. S. 787 is written to clarify the scope of the water act in the wake of several Supreme Court rulings that critics say have narrowed the law’s jurisdiction over isolated wetlands, intermittent streams and other marginal waters. Senator Feingold (WI) and Rep. Oberstar (MN) introduced versions of the bill in the last Congress but faced stiff opposition from industry and Republicans, as well as Democrats from rural districts. As President Obama marks his 100th-day in office, environmentalists are publicly praising his administration despite growing private concerns that the administration is not moving quickly enough to address climate change, the scope of the Clean Water Act and chemicals management, while also raising concerns about some nominees. Green groups have not raised any public concerns over the administration’s approach, with most of the major environmental groups -- including Sierra Club, League of Conservation Voter (LCV) and the Natural Resources Defense Council (NRDC) -- issuing statements this week lauding President Obama and EPA at the 100-day mark.

Senate SRF Rewrite – the Senate environment committee is to consider legislation reauthorizing EPA’s key clean water and drinking water programs but the draft bill is still silent on several key policy and funding provisions that could create differences with the House-passed version of the bill. The committee is preparing to markup the water-funding bill, as well as legislation addressing the scope of the Clean Water Act at a markup that may be held around May 7.

Buy American – EPA appears to be strictly implementing the “Buy American” provisions in the economic stimulus law, issuing guidance that sets a high bar for waiving the rules at stimulus-funded water projects. States and some industry officials have long been concerned that the stimulus law’s “Buy American” provision -- which generally requires all procurement at stimulus-funded projects to meet a 100-percent domestic content requirement -- may hamper project development because of limited domestically manufactured supplies. The law provides agencies with authority to waive the ‘Buy American” provisions, if it is deemed “in the public interest,” or if the use of American-made iron, steel, or manufactured goods would increase the cost of the overall project by 25 percent or if the materials are not available in sufficient quantity or satisfactory quality.

Big Communities Flummoxed By Federal Targeting of Resources to Most Needy Communities – the economic stimulus bill included $2 billion for drinking water systems, but most of that money is not going to large metropolitan water systems, despite their great infrastructure needs, according to large water utility officials. In some states, the city systems are for all practical purposes locked out of the stimulus funds because of the rules governing state revolving funds, water utility officials said April 20 at a conference of the Association of Metropolitan Water Agencies (AMWA). The large water systems told EPA that for many of them, the rules governing the revolving funds, for both grants and loans, are written to favor small and rural utilities. A Newport News Waterworks (VA) representative said his state is one of three that completely block large metropolitan areas from receiving assistance through state revolving funds.

Bill to Create Water Trust Fund Planned – Representative Blumenauer (OR) said April 21 that he hopes to release a draft of a bill to establish a water trust fund in “a matter of weeks,” timed to accompany a Government Accountability Office report on possible revenue sources. Blumenauer said he and other supporters of the water trust fund idea plan to propose a bill that would expand eligibility for federal assistance through the state revolving funds for drinking water and clean water. Many on the Hill are looking at the idea of user fees, although details were not offered for general fees. A more specific “corporate water tax,” based on the superfund tax model, is one of the various fee ideas being considered.

April 27

Appropriations Update – (click it)

PBS Frontline, Newest Health Hazards in Nation's Contaminated Waterways – PBS is aired a documentary titled “Poisoned Waters” on Tuesday, April 21, which examined the “growing hazards to human health and the ecosystem.” PBS revealed startling new evidence that today’s growing environmental threat comes not from the giant industrial polluters of old, but from chemicals in consumers’ face creams, deodorants, prescription medicines and household cleaners that find their way into sewers, storm drains, and eventually into America’s waterways and drinking water. AP news reports that factories dumping drugs into sewers (4/19/09). WEF and other expert resources can be found on their website.

USDA Stimulus Money for Rural Water Grants and Loans in Gridlock – for reasons our investigative team has not been able to uncover, the USDA stimulus money is effectively paralyzed. We have no reports of ANY funding being release to date. Typically USDA would have distributed funding by now. The President approved the funding on February 18^th, however the funding is stalled. EPA has distributed much of its funding for water grants provided in the same legislation. USDA has hundreds of projects already approved for funding. It appears that new federal policies over review and approval are causing this delay, but we have not been able to identify the policy or anyone in charge of administering the policy. USDA’s backlog of projects continues to grow – now over $5 billion.

Congressman To Rewrite SDWA Technical Assistance – NC’s Congressman Etheridge has drafted legislation to change the way EPA “must” utilize technical assistance. The legislation seeks to overcome EPA’s unwillingness to fund assistance that is most helpful to small communities attempting to comply with EPA mandates (see announcement and bill).

The Senate Environment Committee Rewriting Water & Wastewater SRFs – the Senate Committee is finalizing their initial draft of legislation to rewrite the processes and priorities for both SRFs. Senator Cardin (MD) is leading the charge. The Senator is opposed to including a technical assistance provision that would require EPA to fund assistance that is most helpful to small communities. The bill includes numerous provisions to steer subsidized federal funding to private for-profit companies. The bill also includes a provision to allow millions in SRF dollars to be used by non-governmental organizations to established separate and independent SRFs in each state that can operate outside of governmental authorities (see draft of legislation).

AWWA’s Water Utility Council’s Agenda – for their June meeting. AWWA graciously provides rural water with a seat on this committee (Joe Liles from KY RWA). This meeting is always one of the most thorough and protean water policy discussions around (see agenda).

From Wisconsin Rural Water’s Weekly Newsletter (www.wrwa.org) -

SENATOR KOHL RECEIVES NATIONAL AWARD, At this week’s annual National Rural Water Association (NRWA) Water Rally in Washington DC, Wisconsin’s own Senator Herb Kohl received the prestigious “Rural Water Star Award’ award during a ceremony involving water professionals from across the country. Wisconsin Rural Water Association (WRWA) Executive Director Ken Blomberg, who introduced Senator Kohl, remarked, “Senator Kohl, along with being a strong supporter of Rural Water programs for two decades, is also responsible for bringing much needed infrastructure stimulus dollars to water and wastewater systems in Wisconsin and across the country.” Senator Kohl, Chairman of the Senate Agriculture Appropriations Subcommittee, sought federal funding for the United States Department of Agriculture’s (USDA) Water and Waste program in the American Recovery and Reinvestment Act of 2009. This was the first time in the history of these programs at the USDA that they have had the resources to erase their entire backlog of competitively awarded projects (Senator Kohl’s news release).

RADIUM REMOVAL - A test to rid drinking water of potentially cancer-causing radium has shown a measure of success, but it has yet to clear a major hurdle: affordable disposal of its byproduct pellets. The removal captured radium in water from a Waukesha deep well, yet scientists continue to wonder whether the pellets are too radioactive to be reused as aggregate, a component of concrete, a research engineer said. Last winter, the Waukesha Water Utility, along with two Milwaukee colleges, tested an emerging technology that in trials was effective in reducing radium by 60% to 90%, water officials said. Utility officials had hoped the technology would provide a temporary fix for the city in reducing radium in drinking water until a replacement water source is found, possibly Lake Michigan (full article). The Water Utility has a new well in service that provides up to 1 million gallons of radium-free drinking water a day, Utility General Manager Dan Duchniak said Tuesday. With the addition of the new well, the utility provides 8.89 million gallons of radium-free water a day to its customers, Duchniak said. Since daily water consumption here averages about 7 million gallons, the new well ensures that the city can comply with its agreement with the state to provide radium-free water most months of the year, he said. Duchniak says city water consumption has shown steady decreases in recent years as the city pursues conservation measures, including summer lawn and garden sprinkling restrictions. The city also has implemented a water rate structure that penalizes residences with higher consumption and is seeking state permission to expand the rate structure. The city's efforts to meet safe water requirements have been expensive. Waukesha agreed to pay $55,000 in penalties for violating the state's deadline to reduce radium levels in its water and has spent $13.5 million to fix its problems with radium, a naturally occurring substance often found in aging deep wells. In past years, radium concentration had exceeded twice the legal limit (news article).

Update on HR 1145 (reporting on Matheson committees, status of bill, and rural water policy).

April 17

What Did the Bard Say About Lawyers? KS Rural Water warns membership about class action lawyers’ offer to make towns some money (KRWA memo).

April 14

All Water Security National Organization Lament – that DHS/EPA bureaucracy is hindering security, in writing. (see letter to DHS). We suspect this is the only such letter ever generated by this federally chartered advisory panel.

Congress Releases Names of Senators Who Supported Rural Water EPA Funding (disclosure).

Yankee Pollution - One of the country’s smallest states has the most polluted waters in the country. According to EPA, New Hampshire has 5,211 “impaired waters.” Second only to Pennsylvania that has 6,957 impaired waters. Further analysis of New Hampshire’s data published on the net by EPA shows that 100% of waters assessed by the EPA water quality system were found to be impaired, 99% of New Hampshire’s lakes, reservoirs, and ponds are impaired (185,878 acres) and 89% of rivers and streams have been assessed and ALL were found to be impaired. No water in New Hampshire has been found to be not impaired. Other states have very few impaired waters, some states have none – no explanation has been identified how those states keep all the pollution from their waters or how they stop the pollution at their state’s boarders.

More Fun with EPA Numbers – According to EPA Rhode Isle, Oklahoma, and Pennsylvania have the most contaminated drinking water in the country in 2008. And MD, CT and DE have the least contaminated drinking water in the country (based on EPA’s reporting, analysis, and comparison).

Confusing the Public – this town has contamination, or maybe not? Could you tell by this news coverage? If no contamination, why are the newspapers and public notified? Furthermore, the solution to this “contamination” is not remediation, but to simple not take any more samples from that tap.

Texas Trial Lawyers in Kansas – to bring class actions suits against corn herbicide manufacturers. The lawyers have signed up some rural communities to being suits against the herbicide companies, claiming the corn herbicide is ending up in their drinking water. The cities of Hillsboro and Marion were selected by a group of Texas trial lawyers, which will reportedly collect a third of any winnings of the lawsuit. If the level of the substance in the water is below the EPA regulated level (the federal standard), can this be a defense in a civil suit? There was a precedent case in California a few years back that said no (Hartwell). Water testing shows that both communities fall well below the 3 parts per billion standard for atrazine in drinking water (news report).

April 12

Appropriations Update – a click away.

Is the Arsenic Standard Going Far Lower? (we can’t find out, no one is talking)

CDC Says DC Children Poisoned by Drinking Water – and did not notify public, elevated lead levels in Washington, D.C., water between 2001 and 2004 contained enough lead to be classified as hazardous waste. The CDC also found in 2007 that many young D.C. children living in homes with lead pipes had been poisoned by drinking water, but did not notify public health officials in D.C. or federal regulatory agencies, and did not publicize the findings (Salon).

1926 Happenings – Update from KS on their state mediation program and how various systems are cooperating to solve controversies. “Hey, let’s stop this madness and reach a cooperative agreement amicable to both parties.” Anatomy of an Agreement - Paola and RWD 2 requested assistance - and ground rules were established including neither party’s attorneys would be part of the mediation team. An agreement was finalized within a few meetings, and the group celebrated their first success by hosting a barbecue for the mediation team, city council and board of directors. Both parties will keep the customers currently being served and for every meter installed within the water district’s current service area, a fee of $500 will be paid to the district by the city, as well as $2 for every 1,000 gal sold to residents and $1 for every 1,000 gal sold to a business.

Another Kansas 1926(b) Case – that looks like it strengthens protection of indebted districts – in this long-running KS case of Douglas Rural Water v. the City of Eudora, the federal district court published this order in March. Attorney Steve Harris tells us that the court held that guaranteed loans (guaranteed by USDA) qualify for 1926(b) protection (first decision that has definitively addressed that issue) and (2) the “unreasonable, excessive, confiscatory” issue described in the 10th Circuit’s City of Wilson case has been definitively deemed a “defense for which the municipality carries the burden of proof.”

House Chairman to Regulate Drinking Water Supplies’ Chemicals – the new House environmental committee chairman is drafting up legislation to expand EPA regulatory authority over the chemical supplies in drinking water systems. The draft exempts systems under 3,300 person, but does include new EPA review authority over plans and new authority to fine communities. What determines an adequate security plan for any water systems is left up to the EPA’s interpretation. EPA had commented by in 2002 that they could not make such determinations. AWWA calls for grassroots action to address issue of inherently safe technologies. See rural water policy. We will release our Regulatory Chairman’s comments on the bill later this week. MD Steve noticed this on the TV show, The Unit - terrorists used cl2 gas to attack an Army base by superchlorinating the water distribution system. When irrigation sprinklers turned on, faucets were opened, etc., clouds of cl2 gas were released killing many of the base personnel. Industry interests are raising major concerns over a provision in draft chemical security legislation that would grant individual citizens the right to sue the government or industry over violations of any requirements of the bill, saying the addition of citizen suit language could spur a host of expensive suits against industry. Staff for Chairman Thompson (MS) and House Energy & Commerce Committee Chairman Waxman (CA) are drafting security legislation for the 111th Congress that would create a permanent DHS security program to replace interim department security rules set to expire in October, while expanding the scope of the program. Thompson’s committee is taking the lead on writing parts of the draft bill under which DHS would regulate chemical facilities and also wastewater treatment facilities, ending the wastewater industry’s current exemption from the department’s standards. The energy committee is separately drafting provisions to end the drinking water industry’s exemption by creating a new security program at EPA to regulate drinking water facilities. The title proscribing standards for chemical facilities and wastewater plants includes a section on civil actions that says any person may commence a civil action “against any person” including the secretary of DHS and anyone else alleged to be violating “any standard, regulation, condition, requirement, prohibition, or order” in the bill. One industry source warns that the citizen suit provision could trigger a host of lawsuits from activists and others who want to force companies to use inherently safer technologies (IST) -- for example switching from using chlorine to “safer” chemicals. The source says that citizen suits could seek to compel IST in the event a company proposes a security plan under the bill’s requirements that fails to satisfy activists.

Global Perspective – 4,000 dead in Zimbabwe from the easily treatable cholera (BBC). In rural Pakistan’s tribal region children have no water, endemic Hepatitis C, bath in the animal troths, have raw sewage in the streets, continue to drink the contaminated water, and experience the highest infant mortality highest in the world. A new village drinking water well goes online in rural Burkina Faso, Africa thanks to IRWA. Water operator affiliated with Iowa Rural Water makes simple invention (relying on salt, dirty water, and the sun) to make chlorine in 100s of needy water supplies over of the globe.

Engineer Ed’s Reg Update – featured in this update, the Water Sector Coordination Council has drafted a letter to the Homeland Security Secretary expressing frustration that the federal government has almost completed work on VSAT and RAM-W, however, they have not provided any support for the tool used by the majority of utilities.

EPA Calls For Legislative Fix To Expand Water Act Jurisdiction - EPA Administrator is for the first time calling for a legislative clarification of Clean Water Act (CWA) jurisdiction -- including the possibility of supporting legislation that would expand EPA's permitting authority -- to aid the agency's efforts to ensure protection of a wide range of waterbodies. “The country benefits from something broader rather than narrower,” said Jackson. Legislation in the House and Senate called the Clean Water Restoration Act, seeks to clarify the scope of the water act in the wake of several Supreme Court rulings that critics say have narrowed the law’s jurisdiction over isolated wetlands, intermittent streams and other marginal waters, but faces stiff opposition from industry and Republicans, as well as Democrats from rural districts. As introduced, S. 787 largely retains language allowing EPA and the Corps to regulate waters “to the maximum extent” they are subject to Congress’ legislative authorities under the Constitution, while eliminating the law’s current application to “navigable” waters.

New EPA Office of Water Chief - The Obama administration recently announced his intent to nominate former California water official Peter Silva as the agency’s next assistant administrator in the Office of Water. Silva has won support from both California Republican and Democratic governors who appointed him to top water department slots. Silva, whose pending nomination the White House announced April 3, is a civil engineer with nearly 32 years of experience in the water and wastewater fields.

Rewriting the Total Coliform Rule - A stakeholder panel last year crafted an agreement in principle (AIP) to amend the rule to allow the agency to use E. coli monitoring, rather than testing for total coliforms (TCs), to determine fecal contamination in drinking water systems and comply with an enforceable standard known as a maximum contaminant level (MCL). At the April 3 meeting, EPA said they want to “ensure consistency in microbial monitoring requirement” between the TCR revisions and monitoring provisions in existing rules and EPA’s groundwater rule, which requires monitoring and remediation aimed at protecting against microbial pathogens in drinking water systems that rely on groundwater. The agency is now considering whether there is or should be a difference between samples taken under the groundwater rule and under the TCR, and wants to know what the states will look at beyond the AIP criteria, and whether the groundwater rule’s existing guidance manual for performing sanitary surveys will need to be modified, or another guidance written.

EPA Is Waiving the Economic Stimulus Law’s “Buy American” Requirements - to allow some already-funded water infrastructure projects to refinance loans to access the stimulus laws’ more attractive financing options. The waiver does not apply to projects that have not yet been funded or were funded prior to the start of the current fiscal year last October, some of which are facing delays due to the law’s procurement rules. But it is the agency’s first formal step to provide flexibility to the “Buy American” requirement that states and industry say is difficult, if not impossible, to meet. The law limited the refinancing option to debts incurred after Oct. 1, limiting SRF managers’ ability to take advantage of the stimulus law’s “window” to refinance existing projects. SRF managers had been told the stimulus bill’s additional requirements would not apply to projects that received SRF loans between Oct. 1 and Feb. 17 -- loans now eligible for attractive refinancing with stimulus bill dollars but begun before the stimulus bill’s requirements were known.