NGWA Washington Update September 2012 In this issue: Drinking Water and Infrastructure News Perchlorate drinking water standard development update And more…. Geothermal Heat Pump News Senate passes NGWA-supported measure recognizing GHPs as renewable energy And more… Groundwater Availability, Protection and Remediation News Senate Subcommittee releases Interior, EPA 2013 funding bill And more… Hydraulic Fracturing News House bill would limit federal authority over hydraulic fracturing And more… Transportation and Safety News House panel takes FMCSA to task over truck safety tracking system Other News Groundwater professionals are optimistic about future business prospects Save the Date: NGWA Washington Fly-in, February 25-26, 2013. Newsletter Contact: Christine Reimer, National Ground Water Association, creimer@ngwa.org ***** Drinking Water and Infrastructure News EPA scientists discussed analytical methods and treatment options for its upcoming perchlorate drinking water standard at a September 20 meeting. During the meeting, participants raised concerns about a “low level” standard being set. In particular, commenters highlighted cost implications, the natural occurrence of perchlorate, the potential for large groundwater basins that have been recharged with Colorado River water or generally for systems drawing from the Colorado River to be affected, the disinfection process as a perchlorate source, and whether the public health risk from very low level exposure has been sufficiently documented. Copies of the meeting presentations are available from Chris Reimer, NGWA, at creimer@ngwa.org. Separately, EPA’s Science Advisory Board Perchlorate Advisory Panel held a September 25 call to discuss perchlorate’s health risks and a draft report reviewing an Agency White Paper. Both activities are moving toward an early 2013 statutory deadline for a proposed rule. Most Farm bill programs, including Rural Development Programs, will not be affected until early spring by Congressional failure to enact a new Farm bill. Congress returned to campaigning without agreeing on extension of the Farm bill, which expired on September 30. Rural Development programs, including water and wastewater funding programs, are permanently authorized and are funded through annual appropriations (see later articles in this newsletter on FY 2013 funding measures). Funding for pending rural development loan and grant applications may be affected, however. The Congressional Research Service released in late July a related report. See recent news article also. U.S. EPA’s Technical Support Center hosted a webinar on implementation of the third Unregulated Contaminant Monitoring Rule (UCMR 3) rule. The rule was signed by EPA Administrator, Lisa P. Jackson on April 16, 2012. As finalized, UCMR 3 will require monitoring for 30 contaminants using EPA and/or consensus organization analytical methods during 20132015. Copies of the presentations are available for attendees (see link provided to NGWA) and will soon be posted on the UCMR website. General compliance and implementation questions should be sent to UCMR3@glec.com. Questions related to the applicability of this rule to a specific system can be sent to: UCMR_Sampling_Coordinator@epa.gov. EPA released an updated Drinking Water Treatability Database. The data base contains information on contaminants and treatment options. “It’s potentially the largest single compilation of referenced drinking water treatment data in one place,” remarked EPA’s Richard Miltner, an environmental engineer and the database administrator. EPA awarded funding in September for drinking water treatment methods research and technical assistance. Almost $1.5 million in funding is going to three universities to develop sustainable drinking water treatment methods. The grantees include: University of Nevada, Reno – quantifying the range of drinking water contaminants and contaminant classes that can be removed by membrane distillation, and developing and testing a small-scale pilot system that operates using waste heat University of Florida, Gainesville and University of South Florida, Tampa – identifying, testing, and evaluating the sustainability of ion exchange processes that can treat entire groups of chemical contaminants. Clarkson University, Potsdam, N.Y. – engineering, developing, and demonstrating an integrated process comprised of membrane technology and electrical discharge plasma generated via a novel reticulated vitreous carbon (RVC) electrode material. Also, the Agency awarded nearly $15 million in funding for training and technical assistance to small drinking and wastewater systems (serving fewer than 10,000 people) and to private well owners. Recipients include the National Rural Water Association, the Texas Engineering Extension Service, the New Mexico Environmental Finance Center, and the Rural Community Assistance Partnership. Geothermal Heat Pump News The Senate on September 22 passed legislation, H.R. 4850, defining geothermal heat pumps (GHPs) as renewable energy under the Energy Policy Act’s (EPAct). EPAct requires that in 2012 not less than 5% of electricity used by the federal government comes from renewable sources. In 2013, the percentage rises to 7.5%. The passage of legislation out of the Senate Energy and Natural Resources Committee and the full Senate approval is a HUGE step forward. The Association thanks Senators Shaheen (DNH), Portman (R-OH), and Sanders (I-VT), among others, for their interest and support. Also, Senate passage would not have been possible without the help of NGWA Washington Fly-in attendees and the many other Congressional visits and contacts made throughout the year by NGWA’s Washington Representatives, members and others. The House-passed version of H.R. 4850 does not contain the GHP provision. Both the House and Senate have left Washington until after the election. NGWA is reaching out to Congressional offices to assess next steps for moving the measure forward. If ultimately signed into law, the change would increase opportunities not only in the federal government renewable energy marketplace, but also advance GHP inclusion in other future energy legislation. Two Congressional Research Service (CRS) reports released in September highlight ongoing policy discussions on whether to renew or continue renewable energy tax incentives. The debate is prompted in part by the expiration of some renewable energy provisions, e.g. wind energy production tax credits at the end of 2012, as well wider energy and tax reform discussions. A September 18 CRS report, Energy Tax Incentives: Measuring Value Across Different Types of Energy Resources, concluded that relative to their domestic production levels, current federal support for renewable energy exceeds funding for fossil fuels. Fossil fuels accounted for 78 percent of total energy production and received 12.6 percent of tax incentives. Renewable energy, including renewable fuels, accounted for 10.7 percent of energy and received 68 percent of the energy related tax incentives. Nearly half of the 68 percent went toward biofuels. According to the CRS report, the renewable energy tax incentives are expected to decline by nearly 50% from 2011 to 2015. In the second report, Residential Energy Tax Credits: Overview and Analysis, DRS reviews the residential energy efficiency tax credit, which expired at the end of 2011, and the residential renewable energy tax credit available through 2016, under which GHP residential installations fall. Among the policy options discussed in this report are letting the tax credits expire, extending or modifying them or replacing them with a grant or rebate, which could make them “more widely available, and not be limited to taxpayers with tax liability.” The GHP tax incentives do not expire until 2016, but NGWA is following the debate as a preemptive measure. New renewable energy investment outpaced fossil fuel generation investment in 2011 worldwide. According to a Bloomberg New Energy Finance report, $237 billion was invested in renewable versus $223 billion for additional fossil fuel generation. The web site also reported on survey results showing that 85% of consumers want more renewable energy and 49% show a willingness to pay more for products made with renewable energy, while corporations are continuing to show preference for investing in renewable energy. U.S. EPA will extend its ENERGY STAR Most Efficient recognition into 2013. Proposed criteria for gaining the recognition were released for 11 product areas, one of which includes GHPs. Comments are accepted on the proposed criteria until Friday, October 12, 2012 at mostefficient@energystar.gov. A bill, AB 2339, signed into California law on September 27, requires the state Energy Commission, working with others, to evaluate and recommend policies and strategies that overcome GHP deployment barriers. The review will also include identifying the impact of GHP use on reaching the goals under the California Global Warming Solution Act of 2006 and achieving the state’s energy efficiency goals. The Energy Commission must include the evaluations and recommendations in the integrated energy policy report for calendar year 2013. Groundwater Availability, Protection, and Remediation News The Senate Interior and Environment Appropriations Subcommittee released a draft FY 2013 bill on September 25. The move was somewhat unexpected given the passage of the continuing resolution (see below). Senators Reed (D-RI) and Murkowski (R-AK), subcommittee chair and ranking members, said in a written statement that they want to move ahead with the appropriations process. Also, released was a table showing FY 2012 levels, budget estimates, and the Senate subcommittee’s proposed FY 2013 levels. Under the Senate Subcommittee proposal, USGS would receive a $15 million increase in FY 2013 over FY 2012. The USGS water resources area would receive a $1.1-million increase, with the Ground Water Resources account receiving a $3.7 million increase over FY 2012 funding levels. U.S. EPA would receive a $66 million increase over FY 2012 when looking at appropriations and recissions. Specific EPA program areas include: a $2.4 million decrease from FY 2012 for the Leaking Underground Storage Tank Trust Fund, a $87.2 million decrease for Superfund of which $76 million comes from the Superfund remedial account, the clean water state revolving fund and drinking water state revolving fund would remain level at the FY 2012 funding amounts. The President signed a stop-gap spending bill that keeps the federal government funded through March 27 unless appropriation measures are finalized sooner. Overall discretionary spending is kept within the $1.047 trillion limit negotiated in the Budget Control Act. This level represents an $8 billion increase overall from FY 2012 spending. The majority of the additional discretionary funding ($5.937 billion) would be appropriated in a .621 percent across-the-board increase covering all 12 annual spending bills, with the remainder marked for specific programs. The FY 2013 funding debate could be revisited after the election in the lame duck or pushed off until the next Congress. The Administration released on September 14 a report detailing the projected impacts to government programs of automatic across-the-board spending cuts (sequestration) scheduled to begin on January 2, 2013 unless alternative action is taken. The $109-billion in automatic reductions for 2013 are a result of the congressional committee, formed as a result of the debt limit law, failure to identify a plan to shave $1.20 trillion in ten years from the deficit. The report estimates sequestration would result in a 9.4 percent cut in non-exempt defense discretionary funding, and 8.2 percent in non-defense, non-exempt discretionary funding. It would also cut 2 percent to Medicare, 7.6 percent to other non-exempt non-defense mandatory programs, and 10 percent to non-exempt, mandatory defense programs. Congress is expected to discuss alternatives to sequestration during its packed lame duck session. U.S. EPA is seeking applications for the Brownfields FY13 Assessment, Revolving Loan Fund and Cleanup grants. See: FY13 Guidelines for Brownfields Assessment Grants FY13 Guidelines for Brownfields Revolving Loan Fund Grants FY13 Guidelines for Brownfields Cleanup Grants The National Academy has formed a committee on Subsurface Characterization, Modeling, Monitoring, and Remediation of Fractured Rocks. According to the announcement, the ad hoc committee will conduct a study to address issues relevant to subsurface flow and contaminant transport in fractured media, including low permeability and low porosity media, as well as in deep (3 to 5 kilometers) fracture systems. A September 19 U.S. EPA workshop brought together technical experts from around the country to discuss the challenges decisions makers face in managing and using water resources, methods and tools to support decision-making, and gaps in information that would improve management and use of water resources. Representing NGWA, Dr. Venki Uddameri, was an expert panelist, providing input on groundwater’s role, value and management. The workshop was part of EPA’s study of the importance of water in the U.S. economy aimed at: Summarizing existing knowledge about the role and importance of water to the U.S. economy; Providing information that supports private and public sector decision-making, and Identifying areas where additional research would be useful. Side by side comparisons of Presidential candidates’ answers to science-related questions are posted at http://www.sciencedebate.org/debate12/. Among the questions posed are those related to fresh water resources, climate change, energy, and science education. The American Geoscience Institute (AGI) is a partner in the project. AGI includes 50 professional geoscience societies, including NGWA. In September, AGI also released Critical Needs for the Twenty-first Century: the Role of the Geosciences. Providing sufficient supplies of water is one of eight critical needs identified in the report. Within that need the report specifically recommends, “Monitoring of surface and subsurface water quantity and quality with a focus on enhancing the National Streamflow Information Program and building the National Ground Water Monitoring Network.” NGWA has been a long-time advocate of the National Ground Water Monitoring Network and participated in development of the AGI report. Irrigated agriculture accounts for 80-90 percent of consumptive water use in the United States, according to a recently released Department of Agriculture report. Irrigated farms accounted for 40 percent ($118.5 billion) of the value of U.S. agricultural production nationwide. Nearly 57 million acres were irrigated across the United States in 2007, or 7.5 percent of all cropland and pastureland. Roughly three-quarters of U.S. irrigated agriculture occurred in the 17 Western States, although irrigation has been expanding in the more humid Eastern States. The House Water Resources and Environment Subcommittee held a September 20 hearing to discuss the barriers to greater state authority over the Clean Water Act Section 404 dredge and fill (wetlands) permit program. Currently only two states, Michigan and New Jersey, administer the CWA Section 404 program, rather than the 46 states that have assumed authority under the CWA’s Section 402 National Pollutant Discharge Elimination System permit program. Questions have arisen especially since U.S. EPA revoked a Section 404 permit in 2011. The hearing brought together U.S. EPA, the Army Corps of Engineers, which has lead responsibility for administering the Section 404 wetlands permit program, and state representatives. The Senate Energy and Natural Resources Committee held a September 12 hearing on S. 3469, the Nuclear Waste Administration Act of 2012. The hearing highlighted the Blue Ribbon Commission on America’s Nuclear Future 2010 report. Among the report’s recommendations were building one or more geologic repositories where nuclear waste can be permanently buried and building temporary storage facilities until a permanent repository is available. While no action is expected this Congress, the hearing was intended to set the stage for discussions next year, including establishing S. 3469 as the beginning point for those talks. U.S. EPA added 12 hazardous waste sites to the Superfund National Priorities List in September. Additionally, the Agency proposed adding another eight sites to the list. Since 1983, 1,676 sites have been listed on the NPL. Of these sites, 360 sites have been cleaned up resulting in 1,316 sites currently on the NPL (including the 12 sites added). There are 54 proposed sites (including the eight announced in September) awaiting final agency action. Hydraulic Fracturing News Senator John Hoeven (R-ND) introduced the Empower States Act, S. 3573, to establish states as the primary regulators of hydraulic fracturing. Every state’s geology is different and nobody knows better than local experts and authorities how best to protect their own environment, Hoeven said in introducing the bill. Under the legislation, before a federal department or agency drafts any new regulations relating to oil and gas development, including hydraulic fracturing, the agency must hold a hearing and consult with the state, tribe and local state agency within the state or reservation that will be impacted by the new regulation. The agency must also develop a Statement of Energy and Economic Impact that identifies any adverse effects on energy supply, reliability, price, and the potential for job and revenue losses to the individual states’ general and education funds. In addition, the agency must show a state or tribe does not have an existing alternative and that the new regulation is needed to prevent immediate harm to human health or the environment. Finally, the Empower States Act allows a state or tribe to seek redress in a federal court located within its own state or the District of Columbia and requires the court to thoroughly review the decision and not just rely on the EPA’s findings. USGS released two reports related to groundwater-quality, quality-control, and well yield data for two monitoring wells near Pavillion, Wyo. The first USGS report describes the sampling and analysis plan that was developed to collect groundwater data. A second report provides the raw data and information from the groundwater-quality samples. USGS conducted the sampling at the request of the State of Wyoming and in coordination with the U.S. Environmental Protection Agency as follow up to questions about potential contamination from oil and gas operations in this particular area. USGS did not interpret the data as part of this sampling effort. The two reports can be found at http://pubs.usgs.gov/ds/718/ and http://pubs.usgs.gov/of/2012/1197/. In earlier preliminary findings, U.S. EPA had indicated that groundwater and water wells appeared to have been impacted by hydraulic fracturing operations in this particular area of Wyoming. Opponents of a natural gas pipeline are arguing that the required Environmental Impact Statement must consider the effects of hydraulic fracturing, as a reasonably foreseeable result of pipeline construction. For the complete discussion of developments, see the September 25 Marten Law article for further discussion. Transportation and Safety News The effectiveness of the Federal Motor Carrier Safety Administration’s (FMCSA) truck and business safety program was examined at a September 13 House Subcommittee on Highways and Transit hearing. The hearing focused on the Compliance, Safety, Accountability (CSA) program and the factors used to identify carrier safety. Both Republican and Democratic Subcommittee members took FMCSA to task during the hearing. Congressional members questioned FMCSA over the use of equipment factors, e.g. having a blanket in a sleeper berth, as a measure of potential accident risk. Problems were especially noted for small firms where one violation can significantly affect the safety rating, given the lack of inspection data for these small firms. FMCSA suggested small firms go through weigh stations to get inspections and build up their records. FMCSA was asked to explain why crashes, where the truck driver was not at fault, affect a firm’s record. FMCSA response was that studies have shown crashes of any kind are indicative of future crash risk. Congressional members did not appear swayed. Congressman Duncan, Subcommittee chair, instead cited a study by Wells Fargo done for the American Trucking Association that found no meaningful correlation between BASIC scores and crash risks. At the hearing, the FMCSA official mentioned the upcoming carrier safety fitness determination proposed rule. NGWA will be monitoring developments, including this proposed rule action, and providing input to FMCSA and alerting the industry. Other News: Groundwater professionals (57%) are generally optimistic about their business prospects over the next three years. 31% believe the business outlook will remain much the same going forward, while 11% are somewhat or highly pessimistic. Site assessment and remediation as well as groundwater resource monitoring, assessment and management work were the top revenue generation sources in 2011 for private-sector NGWA members. Business growth over the next three years is expected in the energy sector and water conservation, reuse and wastewater market segments, according to September 2012 NGWA-member survey respondents. Survey respondents believe groundwater sustainability and groundwater protection are the top federal issues on which NGWA should focus. Remediation, household water well system, and research issues round out the top five NGWA member concerns. NGWA’s Government Affairs Committee will use the survey results to inform their 2013 plans. Survey respondents receiving the $50 VISA gift cards are: Owen Goodenkauf, Kent Cordry, Mark Malander, Joshua Brownlow, Tom Deister, Herbert Vogler, Timothy Ray and three individuals who asked to remain anonymous. Survey respondents, who requested a copy, will receive a complete survey summary over the next several days. Thanks goes out to the more than 1600 members who completed the survey. Time is short these days, and NGWA really appreciates you sharing some of yours with us.