NGWA Washington Update November 6, 2013 Table of Contents Drinking Water Infrastructure News New lead law effective January 4, 2014; EPA releases FAQs on implementation Water and energy provisions to be worked out in farm bill conference Other news Geothermal Heat Pump News NGWA continues push to recognize GHPs under federal purchase requirements Possible peek at what renewable energy tax reform debate might look like Other news Groundwater Availability, Protection, and Remediation News U.S. EPA releases letter clarifying UIC application to ASR projects NGWA working to provide funding source for managed aquifer recharge projects Other news Hydraulic Fracturing and Energy News NGWA updating position paper; providing input to EPA study EPA is seeking data for their study of hydraulic fracturing impacts on drinking water Transportation and Safety News NGWA readies comments on OSHA proposed silica rule; agency extends comment deadline FMCSA incorporates transportation law changes into rules Other News Chairs asks for FY 2014 federal discretionary funding top line number to avoid January shutdown 2014 Congressional Drive-In – Mark your calendars for March 3 Webinar to find out more Page 1 Drinking Water Infrastructure News Don’t forget the new lead requirements become effective January 4, 2014. U.S. EPA posted a revised list of frequently-asked-questions (FAQs) to assist manufactures, retailers, regulators and the general public in complying with and understanding the requirements of the Reduction of Lead in Drinking Water Act. The FAQs address the definition of lead free, the effective date, calculating lead content, third party certification, product labeling, repair and replacement parts, and exemptions. The Reduction of Lead in Drinking Water Act was enacted on January 4, 2011, to amend Section 1417 of the Safe Drinking Water Act, which covers the use and introduction into commerce of lead pipes, plumbing fittings or fixtures, solder and flux. The Reduction of Lead in Drinking Water Act changes the Safe Drinking Water Act definition of “lead free” and creates exemptions from the Lead Free requirements for plumbing products that are not used for drinking water. The Reduction of Lead in Drinking Water Act established an effective date of January 4, 2014. An information sheet on third party certification, which is not mandated by the Reduction of Lead in Drinking Water Act but may be required under other laws, was also released by EPA. Farm bill conferees held their first public meeting on Wednesday, October 30. In the water supply area, the Senate bill would reauthorize the water and wastewater revolving loan fund at $30 million subject to annual appropriations. The House would stop funding authorization for the program. The House bill would also reduce from $30 million to $15 million the rural water and wastewater grant program. The Senate would not change the grant funding level but would prioritize funds to rural communities of 5,500 or fewer residents. Overall, the House bill would encourage a greater role for private and cooperative lenders deemphasizing federal government funding support. The House bill reauthorizes the household water well financing program at $5 million; while the Senate version has no comparable provision. The Senate version would authorize rural water and wastewater technical assistance and training grants for FY 2014 through FY2018. The House bill has no similar provision. On the energy front, both the House and Senate bills would reauthorize the Rural Energy for American Program (REAP). This program has funded geothermal heat pump systems for rural small business and agricultural producers. The House bill would authorize appropriators to provide up to $45 million annually for REAP. In the Senate bill, REAP would receive an assured $68.2 million annually in mandatory spending and Congressional members could decide to add up to $20 million more through annual funding bills. The Congressional Research Service report provides a table comparing current law, the Senate, and House versions of the Farm bill. A Rural and Small Systems Guidebook to Sustainable Utility Management was released by U.S. EPA and the Department of Agriculture. Additionally, a “Workshop in a Box” contains a series of materials and instruction for holding a workshop based on the Guidebook. Both items are Page 2 intended to help rural and small water and wastewater systems provide sustainable services to their communities. Brookfield, Connecticut is considering an ordinance that would require testing new wells and wells at property transfer for arsenic and uranium. The state also recommends five year testing for existing wells. Geothermal Heat Pump News NGWA is working to push the Shaheen-Portman energy efficiency bill, S. 1392, through the Senate. NGWA members in selected states sent email messages asking their Senators to support the overall bill and a provision that would recognize geothermal heat pumps as renewable energy. NGWA thanks its member for their quick response. It has had a very positive impact on discussions with Senate offices. However, because of issues beyond any GHP language, it remains uncertain whether the energy efficiency bill will pass the Senate this year. While currently focused on the wind production tax credits, the House Committee on Oversight and Government Reform’s October 2 hearing provided a preview of points that may come up over extending or maintaining any renewable energy tax credits. Some hearing participants questioned the number of clean energy jobs cited in some studies, whether a technology has moved beyond research and warrants a tax credit, and whether state renewable portfolio standards offset the need for federal tax credits. Other hearing participants supported the tax credits, citing the benefits of a diverse energy mix, the long-term incentives offered to other energy sources, and the external environmental costs of fossil fuels that are not accounted for in their pricing. One speaker outlined a framework for transitioning away from the production tax credits. The plan would include extending the current production tax credits for multiple years to provide adequate time for Congress to adopt the Master Limited Partnership Parity Act (MLP) and the IRS to develop a Revenue Ruling expanding Real Estate Investment Trust (REIT) to include renewable energy. The idea is that MLPs and REITS, which are used now for fossil fuel projects, could eventually provide alternative private sector financing to renewable energy projects rather than federal tax credits. Whether such a transition plan gathers any supporters and is extended to the investment tax credits that include geothermal heat pumps remains to be seen. NGWA continues to monitor the debate and proactively educate congressional offices about the benefits of GHPs. NGWA’s Geothermal Heat Pump Subcommittee has discussed many of the topics raised and will meet again at the NGWA Expo. The Department of Energy’s Building Technologies Office (BTO) is seeking feedback on a Prioritization Tool which will be used for programmatic decision-making. Currently, commercial and residential geothermal heat pump systems are rated high from a technical aspect but they Page 3 drop when other factors, such as cost, are included. The BTO specifically is seeking feedback on data, assumptions and outputs of the various energy efficiency technologies and activities analyzed by the Prioritization Tool. For details, see the RFI announcement DE-FOA-0001024 or e-mail questions about the RFI to BTO_P_Tool_RFI@go.doe.gov. Responses must be received no later than 5:00 p.m. EDT on December 24, 2013. Bills to establish a federal renewable electricity standard were introduced in late October. Senator Tom Udall (D-NM) introduced S. 1595. Senator Ed Markey (D-MA) introduced S. 1627 (bill yet to be posted). Both bills were referred to the Senate Energy and Natural Resources Committee. The outlook for their passage is doubtful, but the bills continue efforts by some Senators to bring attention to climate change. The Massachusetts Clean Energy Center, in partnership with the Massachusetts Department of Energy Resources is seeking construction grant applications for qualifying commercial-scale biomass boiler, geothermal heating and cooling and district energy projects. Grants are also available for feasibility, design and engineering studies. Applications can be submitted by: (1) public, private, vocational and regional schools serving any subset of grades K-12; (2) municipal buildings; (3) greenhouses and (4) not-for-profit organizations. Further information is available on the solicitation page. Maine Efficiency launched a new rebate program to reduce home heating costs. Within days of its announcement, the 50 rebates of up to $5,000 for the purchase of wood pellet or geothermal heat pump systems were gone Groundwater Availability, Protection, and Remediation News U.S. EPA issued a letter to the Florida Department of Environmental Protection clarifying the application of the Safe Drinking Water Act’s Underground Injection Control rules to aquifer storage and recovery projects. Overall the letter recognized the growing need for “innovative water management tools” to sustain water availability. The agency specifically recognized that using ASR can be “an important component of a long-term water management strategy.” The letter walks through the various rule provisions and provides a framework for the use of ASR in situations where there is the potential for constituents, such as arsenic, to be released. NGWA joined with other water organizations and the U.S. Conference of Mayors in a letter urging the House to pass the Water Infrastructure Finance and Innovation Act (WIFIA) this year. The bill would establish a way to finance large water infrastructure projects or bundled small projects. NGWA successfully got language included in a Senate bill so that managed aquifer recharge projects would be included under a WIFIA pilot scale financing program. NGWA is working to do the same in the House. Page 4 On October 31, the Senate rejected the House-passed version of the Water Resources Development Act and called for a conference committee to resolve the differences. The Senate WRDA bill includes the NGWA language that would make managed aquifer recharge projects eligible for funding under a new pilot financing program. Moving to a conference committee is a positive sign that there may be final action on WRDA this congress. Environmental groups and others are pushing back against U.S. EPA’s announcement that clean-up standards could be eased. As reported in Inside EPA, one environmentalist believes that communities will react negatively to any broad move away from drinking water standards from the current practice of looking at case-by-case exceptions. A state official is also quoted in the article as saying that he expects states will be very cautious given groundwater is a drinking water source. Some groups are also raising questions about potential negative repercussions to technology development and pollution prevention, according to the newsletter. See NGWA’s October 2013 Washington Update for additional background on the initial EPA announcement Science, Space, and Technology Committee Chairman Lamar Smith (R-TX) and Environment Subcommittee Chairman Chris Stewart (R-UT) on October 18 sent a letter to the Environmental Protection Agency (EPA) raising concerns over a new draft rule that they believe would greatly expand the agency’s regulatory authority under the Clean Water Act (CWA). “A sweeping reinterpretation of EPA jurisdiction would give the agency unprecedented control over private property across the nation,” the Chairmen wrote. “Any attempt to issue a proposed rule before completing an independent examination by the agency’s own science advisors would be to put the cart before the horse.” See the October 2013 Washington Update for information on groundwater’s treatment. EPA's WaterSense program released a Draft WaterSense Professional Certification Program Labeling System and three draft revised specifications for professional certification programs for public comment. EPA established specifications in 2006 to recognize certification programs for irrigation professionals in three areas: system design, installation and maintenance, and system auditing. The draft documents create a consolidated set of requirements that complement and streamline each WaterSense program specification and are intended to provide a more sustainable framework for program growth. The changes will also expand the benefits of WaterSense partnership to all professionals certified through WaterSense labeled programs and phase out the individual partnership designation. Written comments must be received by November 19, 2013 and should be directed to watersense-programs@erg.com. President Obama released an executive order on November 1 directing federal agencies to prepare the nation for the impacts of climate change. In the water area, the executive order specifically directs agencies to complete an inventory and assessment of “proposed and Page 5 completed changes to land and water-related policies, programs and regulations necessary to make the Nation’s watersheds, natural resources and ecosystems, and the communities and economies that depend on them, more resilient in the face of a changing climate.” NGWA member Mike Block serves on the Advisory Committee for Water Information’s Climate Change Adaptation Work Group that is focused on adaptation within the water sector. The House Subcommittee on Water and Power held a hearing on October 10 focused on reauthorization of the Reclamation States Emergency Drought Relief Act, H.R. 3176. The hearing also addressed H.R. 3189. This bill would prohibit placing a condition on any federal permit, lease, or other use agreement that requires the transfer, relinquishment, or impairment of any water right to the Department of Interior or the U.S. Department of Agriculture. Senator Barrasso (R-WY) joined by others introduced a similar bill, S. 1630, dealing with water rights on October 31. The text of the bill has not yet been posted. Idaho is considering legislation that would establish a state-run aquifer recharge program in the Eastern Snake River Plain. The program would award credits to private parties who recharge the aquifer. The credits could be sold to groundwater irrigators to meet mitigation requirement or potentially to allow new groundwater withdrawals, which are currently subject to an aquifer-wide moratorium. Capital Press, October 11, 2013. In mid-October, a moratorium was placed on new well drilling and expansion of Nebraska’s Lower Platte North Natural Resources District. The recent action mirrors a Lower Platte South NRD moratorium that went into effect September 19, according to the Banner-Press Hydraulic Fracturing and Energy News The NGWA Hydraulic Fracturing Position Paper is out for review by member volunteers. Recently published Groundwater papers and other relevant research are incorporated into the update. NGWA will also be providing a bibliographic listing of relevant Groundwater articles to U.S. EPA as part of their call for data and peer reviewed articles for the agency’s ongoing study of the potential impacts of hydraulic fracturing on drinking water (see item below). (Note: If you are an NGWA member with relevant expertise, please consider volunteering for the NGWA Hydraulic Fracturing Task Force) U.S. EPA is soliciting relevant data and scientific literature specific to the potential impacts of hydraulic fracturing on drinking water resources. While EPA is conducting a thorough literature search, they are especially seeking studies or other primary technical sources that are not available through the open literature. Interested persons may provide scientific analyses, studies, and other pertinent scientific information, preferably information which has undergone scientific peer review. The EPA will consider all submissions but will give preference to all peer Page 6 reviewed data and literature sources. EPA’s Federal Register Request for Information to Inform Hydraulic Fracturing Research Related to Drinking Water Resources will be closing on Friday, November 15, 2013. Transportation and Safety News The Federal Motor Carrier Safety Administration issued a final rule on October 1 incorporating changes made in the Moving Ahead for Progress in the 21st Century (MAP-21) law. Among the provisions are those related to safety fitness for new operators, increased penalties for operating without a registration, employer responsibilities related to drivers with revoked or suspended CDLs and others. A complete summary list is available from FMCSA. OSHA extended its deadline for comments on crystalline silica proposed rule to January 27, 2014. NGWA’s DOT/OSHA Subcommittee will be developing comments to ensure OSHA is aware of current industry practices and to recommend any needed changes before the rule becomes final. Other News In the bipartisan plea, Senate Appropriations Chairwoman Barbara A. Mikulski (D-MD) and her House counterpart, Harold Rogers (R-KY) asked the budget conference committee to settle on a FY 2014 top line spending figure no later than December 2, but preferably by November 22. The appropriations committee would then try to develop an omnibus spending bill before the FY 2014 stop gap funding measure expires January 15. The omnibus bill may include some individual spending plans but would likely just continue funding at current levels for many agencies and departments. U.S. EPA and Interior would likely fall into the category of receiving funding at current levels. The chairs also requested that as part of the budget conference final agreement a FY 2015 overall discretionary spending number be set to facilitate moving appropriations bill through the normal process next year. Something new is coming in 2014 - the First-Ever NGWA Congressional Drive-in. How is the Congressional Drive-in different from a typical NGWA Washington Fly-in? Congressional Drivein meetings will take place in your State. NGWA will provide tips and information on scheduling meetings during a March 3 noon Eastern brown bag webinar, but participants will make their own meeting appointments. The week of March 17 is the target timeframe for you to schedule your meetings, as Congress will be on recess and many Congressional members will be back in their States. However, unlike the NGWA Washington Fly-in, if that week doesn’t work for your schedule, you can arrange a meeting with your Congressional members or their staff at an alternate time. Also, unlike a Washington Fly-in, there are no airfare or hotel arrangements to make – you’ll be driving to the meetings from your home or office. Like the Washington Fly-in, Page 7 NGWA will provide you, during the March 3 brown bag webinar, with the necessary background information to make your meetings productive. We’ll go over the key parts of a meeting, what issues you may want to discuss, and what handouts are available from NGWA for your use. So the 2014 Congressional Drive-in will cost you $0, it can take place at a time convenient to you, and you’ll get materials and information from NGWA at the March 3 brownbag – what a deal or at least we hope many of you will think so!!! Note: the 2014 Congressional Drive-in will take the place of the NGWA Washington Fly-in for next year. We’ll reassess hosting a 2015 NGWA Washington Fly-in after we see what unfolds on the Hill next year and how the election season is moving forward. Newsletter edited by: Christine Reimer, NGWA Government Affairs, creimer@ngwa.org, 800.551.7379, ext. 560 Page 8