NGWA Washington Update July 2012 Contact: Christine Reimer, National Ground Water Association, creimer@ngwa.org Save that Date: NGWA Washington Fly-in is scheduled for February 25-26, 2013, at the Washington Court Hotel. Drinking Water and Infrastructure News U.S. EPA will host a Thursday, August 16, stakeholders meeting to discuss implementation of updated "lead-free" standards for drinking water products. The meeting will be held from 1:00 p.m. to 4:30 p.m., EDT at U.S. EPA’s facilities in Arlington, VA. The Agency is also providing access to the meeting by conference call line and webcast. The Reduction of Lead in Drinking Water Act passed and was signed into law on January 4, 2011. Under the new law, "lead free" will now mean: not containing more than 0.2 percent lead when used with respect to solder and flux; and not more than a weighted average of 0.25 percent lead when used with respect to the wetted surfaces of pipes, pipe fittings, plumbing fittings and fixtures used as part of drinking water systems. The Agency is holding the meeting in advance of an expected rule proposal this fall and the January 2014 effective date of the law. According to the Agency announcement, the purpose of the meeting is to "discuss and solicit input from States, manufacturers, drinking water systems, other interested groups and consumers on the implementation of the Reduction of Lead in Drinking Water Act of 2011." Those wishing to participate in person, by teleconference or via webcast must register by contacting Junie Percy of IntelliTech at (937) 427-4148 ext. 210, or by email junie.percy@itsysteminc.com no later than August 15, 2012. See U.S. EPA announcement for more information on the August 16, 2012 stakeholders meeting. Click here for Frequently Asked Questions regarding the Reduction of Lead in Drinking Water Act. The FAQ was prepared by NGWA for its members’ benefit. A July 31 Senate Energy and Natural Resources Committee hearing focused on S. 3385 and efforts to move rural water project construction in the west forward. The “Authorized Rural Water Projects Completion Act” would establish an $80 million spending pool for rural water projects using receipts going to the Reclamation Fund. The receipts come from water and energy purchases, loan repayments, and other sources. While expressing support for the goal of safe drinking water in the west, the Administration opposed setting up additional mandatory spending given the current financial situation. Nathan Bracken, representing the Western States Water Council, supported S. 3385, noting a recent draft assessment report that estimated $5-8 billion was needed for potable water supply systems in rural areas of the 17 western states. An additional $1.2 billion was identified for specific Indian water supply projects. The bill was sponsored by Senator Baucus (D-MT), as well as Senators Bingaman (D-NM), Tester (D-MT), Harkin (D-IA), Udall (D-NM), Klobuchar (D-MN), Franken (D-MN), Johnson (D-SD), and Conrad (D-ND). USEPA and USDA released a first-ever microbial risk assessment guidance to determine health risks from food and waterborne pathogens. Formal risk assessments for food, water, and environmentally-relevant chemicals have been undertaken for decades. However, an overarching microbial risk assessment guideline has not been available until now. The Guideline applies to viruses, bacteria, protozoa, and fungi that are or maybe pathogenic to humans. Visit this link for more information on the guideline. The Rural Utilities Service issued a final rule giving additional priority points to colonias that lack access to water or waste disposal systems in funding decisions. The change affects the Section 306C Water and Waste Disposal Loan and Grant Program which provides water and waste disposal facilities and services to low-income rural communities whose residents face “significant health risks.” The rule becomes effective August 23, 2012. An EPA report concludes that if Congress is interested in a single standard for radon in drinking water only an MCL of 4,000 pCi/L could be adopted given current law. Existing law does not allow the MCL to be less than atmospheric background unless an Alternate Maximum Contaminant Level is also proposed. 4,000 pCi/L of radon in water matches the average natural background level of radon in outdoor air. At this time, EPA has proposed but not finalized a national primary drinking water standard for radon applicable to public water systems under the Safe Drinking Water Act. (Note: NGWA members have free access to Reducing Problematic Concentrations of Radon in Residential Well Systems for further information on radon, its occurrence and treatment) The House floated in late July the idea of voting for a one-year Farm bill but later changed course, moving instead to a stand-alone drought bill to assist farmers. In June, the Senate passed a five-year Farm bill, S. 3240, including provisions authorizing rural water system loan and grant programs. The House Agriculture Committee passed H.R. 6083 on July 11. The House bill includes funding for rural water systems, although at lower levels than past years; and additionally reauthorizes the household water well financing program for an additional five years. The current law expires at the end of September, putting pressure on both Houses of Congress to reach an agreement prior to that date. Highlights of Drinking Water-Related Activity in the States: Free arsenic testing for private well owners is being offered to residents of Licking County, Ohio. The testing is part of a study to identify arsenic occurrence patterns in the groundwater system. The project is a collaboration of the U.S. Geological Survey, Licking County Health Department, Ohio Water Development Authority, Ohio EPA, Ohio Department of Health, Ohio Department of Natural Resources and the U.S. EPA. Kentucky’s Division of Water is beginning a study on the impacts to domestic water wells from human and natural contamination. The agency is currently seeking volunteers who will allow their wells to be tested for E. coli and total coliform and nuisance bacteria as well as caffeine. In Michigan, the Berrien Conservation District and Michigan Agriculture Environmental Assurance Program sponsored free well water screening for nitrates in early July. Funding for the program came from Michigan pesticide and fertilizer registration and tonnage fees. The Alabama legislature passed the Irrigation Incentive Bill that provides a state income tax credit of 20 percent of the cost to purchase and install irrigation systems. The bill also allows the tax credit to be used for the development of water wells. Missouri Governor Jay Nixon is adding $5-million to the $2-million already available to help Missouri farmers deepen water wells, drill new ones or expand irrigation systems. The funding will cover 90 percent of the cost instead of the typical 75 percent cost share. More than 600 applications have been received at the state level with additional requests submitted to local officials. Applications must be submitted by Aug. 6 to a soil or water district or through the state's website at www.mo.gov Geothermal Heat Pump News NGWA continues efforts to achieve recognition of geothermal heat pumps as renewable energy technology under the Energy Policy Act’s federal purchase requirements. EPACT requires that a certain percentage of federal energy must be from renewable sources with that amount rising to 7.5% in 2013. NGWA is actively looking at S. 1000 in the Senate and the Smart Energy Act in the House, as possible vehicles to move forward. On July 12, the House Subcommittee on Energy and Power and the Subcommittee on Oversight and Investigations held a hearing on the Smart Energy Act, among other bills. The Smart Energy Act is bipartisan legislation authored by Reps. Charlie Bass (R-NH) and Jim Matheson (D-UT) aimed at increasing energy efficiency in both the federal government and private sector. Senators Shaheen (D-NH) and Portman (R-OH), co-sponsors of S. 1000, are trying to get floor time for the bill, which passed the Senate Energy and Natural Resources Committee in September 2011. An agreement to bring S. 1000 before the full Senate is proving elusive, because of concerns that unrelated amendments may come up that drag out the timeline or require difficult votes. Senator Shaheen has announced her intention to propose S. 1000 as an amendment to any bill moving through the Senate. Independent of either S. 1000 or the Smart Energy Act, NGWA is working to get support for a stand-alone measure focused solely on adding geothermal heat pumps as renewable energy technology for federal purchase requirements – Stay Tuned…. On the tax side, NGWA is carefully following other renewable energy tax provisions that expire earlier than the GHP 2016 expiration date as a potential harbinger of things to come. Of note, the Senate Finance Committee passed a package of tax extenders on August 2 before heading out for break. The original draft did not include an extension of the production tax credit for wind, which expire at the end of this year. However, the extension was added into the final bill coming out of Senate Finance Committee. At the same time, the House passed H.R. 8 that, among other things, provides an expedited process for moving comprehensive tax reform. While not expected to pass the Senate, the bill lays out a roadmap to achieving comprehensive tax reform in the next Congress. Comprehensive tax reform would potentially put everything on the table for discussion next year. The United States has made “limited or little progress” toward greater energy efficiency in the last decade, according to a first-ever International Energy Efficiency Scorecard. The report, published in early July by the nonprofit American Council for an Energy-Efficient Economy, ranks the United Kingdom first in energy efficiency among the world's major economies, followed closely by Germany, Italy, and Japan. The United States stands in 9th place out of the 12 economies reviewed. The report also includes policy recommendations on how to improve the U.S. ranking, including establishing metrics, adopting more stringent building codes, and providing incentives among others. The USDA Rural Utilities Service issued a proposed rule July 26 dealing with loan and guarantee financial assistance to support rural electric energy efficiency programs. Energy Efficiency Programs at rural electrics that could be funded under this program include those that increase energy efficiency at the end user level, modify electric load such that there is a reduction in overall system demand, effect a more efficient use of current electric distribution, transmission and generation facilities, attract new business and create jobs or encourage the use of renewable energy fuels for both demand side management and the reduction of conventional fossil fuel use. The proposed loan program is estimated to have a maximum funding level of $250 million annually. According to a news release from USDA Secretary Tom Vilsack: …ninety six percent of rural cooperatives (RUS primary borrowers) have some form of an energy efficiency program. This proposed rule will help leverage and expand those programs for existing borrowers to include a relending program that enables rural utilities and cooperatives to lend to homeowners and businesses. Eligible projects include consumer energy efficiency improvements, energy audits, small scale renewable energy systems, demand side management investments, and consumer education and outreach programs. This proposed regulation stems from the 2008 Farm Bill, which explicitly identified energy efficiency as an eligible purpose for USDA funding. Rural utility companies participating in the program would submit an energy efficiency work plan and seek reimbursement for costs. A Request for Proposals for Large Scale Renewable Energy Production for Federal Installations is expected to be released shortly. The proposal is part of an Army initiative to attract over $7 billion in investments for renewable energy projects over the next 10 years. The law firm of Baker Botts provides more background on the initiative and suggestions on steps industry participants can take to get ready to bid, including finding subcontractors. Highlights of Geothermal Heat Pump-Related Activity in the States: New Hampshire is the first state in the nation to allow renewable heat energy, from geothermal and other thermal resources, to receive the same incentives as renewable electricity. The program begins in January 2013. Hats off to the New England Geothermal Professional Association on passage of SB-218. The Nebraska Well Drillers Association has formed a Geothermal Division. For more information contact Lee Orton at 402.476-1101 or Lee@h2oboy.net For a list of state incentives for geothermal heat pumps, use this link. Groundwater Availability, Protection and Remediation News A congressional briefing led by the U.S. Geological Survey on Friday (July 27) spotlighted the importance of monitoring the nation’s groundwater levels and quality. NGWA staff served as master of ceremonies for the briefing, which attracted House and Senate staff, Agency officials and key water organizations. NGWA and its members have long championed a National Ground Water Monitoring Network and the briefing provided an opportunity to highlight its importance before this audience. U.S. Representative Betty McCollum (D-MN) along with Congressman Lamborn (R-CO) sponsored the briefing. Representative McCollum echoed the need to monitor the nation’s groundwater resources. "Every day, millions of Americans rely on groundwater sources for their drinking water, including nearly 80 percent of Minnesotans. The National Groundwater Monitoring Network is a critical resource," she said. "Congress must continue to do everything possible to ensure our nation's drinking water remains a safe and plentiful resource." Given the current drought situation, there was considerable interest in groundwater, its current status, its potential to sustain water supplies during drought, and ways to recharge groundwater in times when there is excess water for later use. Senators Pryor (D-AR) and Moran (R-KS) announced the formation of a bipartisan Senate Water Caucus “to help build momentum in addressing our nation’s water challenges.” The caucus will work with experts in the private and public sector to identify issues affecting water quantity and quality, as well as develop long-term strategies to ensure a sustainable water supply. As part of these efforts, the Senate Water Caucus will explore emerging technologies; financing options; best management practices; conservation opportunities; and greater coordination of water infrastructure projects among local, state and federal governments. NGWA will be reaching out to the Senators to find out additional information on the Water Caucus and offering NGWA’s assistance. Congressional leaders in both parties appear to have reached agreement to extend funding for the federal government for six months at the level agreed to in last year’s debt deal, $1.047 trillion. No riders restricting U.S. EPA or Energy Department policies would be attached to the measure. The proposed extension is seen as a way to avoid a government shutdown and contentious debate over policy riders prior to the election. Both parties may also be factoring in their expectations of the election outcome. EPA sought nominees to attend a technical workshop on determining the importance of water to the U.S. economy. The workshop will be held in Washington, DC on September 19, 2012. EPA withdrew a proposed rule that would have required information to be submitted to the agency about concentrated animal feeding operations (CAFOs). EPA will instead use existing federal, state, and local sources of information to gather data about CAFOs and help ensure that CAFOs are implementing practices that protect water quality. EPA also signed a memorandum of understanding with the Association of Clean Water Administrators (ACWA) to facilitate the exchange of information. EPA recently corrected Table 10 (on page 51) of the technical report entitled EPA's Vapor Intrusion Database: Evaluation and Characterization of Attenuation Factors for Chlorinated Volatile Organic Compounds and Residential Buildings, which is posted on OSWER's website, EPA released fact sheets, case studies and other information on projects that have been undertaken using the Clean Water State Revolving Fund’s (CWSRF) Green Project Reserve. The Green Project Reserve requires all CWSRF programs to direct a portion of their capitalization grant toward projects that address green infrastructure, water or energy efficiency, or other environmentally-innovative activities. A USDA report finds that farmers have considerable flexibility to adapt to changes in local weather, resource conditions and price signals by adjusting crops, rotations and productions. The report suggests that such adaptation, using existing crop production technologies, can partially mitigate the impacts of climate change on national agricultural markets. However, the authors note that adaptive redistribution of production may have significant implications for both regional land use and environmental quality. The Senate Environment and Public Works Committee held a hearing August 1 to examine the latest climate change science and location adaptation measures. Chairman Boxer (D-CA) pointed to the growing body of evidence regarding climate change and the need for action to reduce emissions. Ranking member Inhofe (R-OK) countered that the “global warming movement has completely collapsed and cap-and-trade is dead and gone.” He suggests that what drove the collapse was that “the science of the United Nations Intergovernmental Panel on Climate Change (IPCC) was finally exposed. For years I had warned that the United Nations was a political body, not a scientific body…” The Department of Energy announced on July 26 that $7 million will go to eight projects to improve the efficiency and reduce the costs associated with carbon capture. The projects’ goal is to achieve at least 90 percent carbon dioxide removal while delivering carbon dioxide at a capture cost of less than $25 per ton. The Phase 1 projects will focus on an engineering and economic analysis of the technologies while identifying the Phase 2 research and development needs to bring the technology closer to commercialization. The selection of Phase 2 projects will occur next year based upon Phase 1 results. The National Research Council will undertake a project to look at Trends and Opportunities in Federal Earth Science Education and Workforce Training. The study will: 1. Examine and assess ongoing and previous programmatic efforts in Earth science-related education and workforce training at Federal research and development agencies. As part of this examination, the legislative authority granted to the various federal agencies for STEM education and training will be described. 2. Discuss criteria for "successful" Earth science-related education and workforce training efforts and identify successful Federal programs and activities based on these criteria. 3. Identify the effective approaches used in these successful programs or activities. 4. Identify the critical skill sets and the gaps in Earth science education and workforce training that could have most significant impact to enhance the recruitment and retention of diverse and skilled scientists in this field. 5. Identify opportunities for Federal research and development agencies to leverage ongoing education and workforce training efforts to increase the recruitment of a diverse Earth science student population and workforce and identify gaps which may hinder agencies' abilities to leverage these efforts. 6. Identify ways that the Federal Government can strengthen its Earth science education and training activities. Highlights of Groundwater Availability, Protection and Remediation-Related Activity in the States: A New Jersey court invalidated the NJDEP cleanup rule that applicants for the de minimus quantity exemptions certify that the property is clean. The court found that the requirement went beyond the Industrial Site Recovery Act. Contrary to news reports that the ruling is a “big win for business,” Gerard Giodano, with the law firm of Cole Schotz Meisel Forman & Leonard, notes that if there is contamination present other state laws may come into play. Hydraulic Fracturing News The U.S. Environmental Protection Agency announced on July 25 that it completed its sampling of private drinking water wells in Dimock, PA and concluded that the contaminant concentration levels present do not require additional Agency action. EPA did find hazardous substances, specifically arsenic, barium or manganese, in well water at five homes at levels that could present a health concern. These constituents can occur naturally in groundwater. In all cases the residents have now or will have their own treatment systems that can reduce concentrations of those hazardous substances to acceptable levels at the tap. EPA provided the residents with all of their sampling results and has no further plans to conduct additional drinking water sampling in Dimock. Between January and June 2012, EPA sampled private drinking water wells serving 64 homes, including two rounds of sampling at four wells where EPA was delivering temporary water supplies as a precautionary step in response to prior data indicating the well water contained levels of contaminants that pose a health concern. At one of those wells EPA did find an elevated level of manganese in untreated well water. The two residences serviced by the well each have water treatment systems that can reduce manganese to levels that do not present a health concern. For more information on the results of sampling, visit this link. (Note: NGWA members have free access to best suggested practices for reducing arsenic or manganese in residential well systems.) The U.S. EPA extended its deadline for comments on the draft Guidance for Permitting Oil and Gas Hydraulic Fracturing Using Diesel Fuels to August 23, 2012. NGWA’s Hydraulic Fracturing Task Force is finalizing the Association’s comments to meet the new deadline. U.S. Senator Lisa Murkowski (R-AK) questioned Bureau of Land Management (BLM) officials about the agency’s failure to properly seal abandoned federally drilled oil and natural gas exploration wells in the National Petroleum Reserve-Alaska (NPR-A). The exchange took place during a July 12 Senate Energy and Natural Resources hearing. Federal agencies drilled 136 exploratory oil and gas wells in the NPRA between 1944 and 1982. Only 16 of the 136 wells have been properly sealed, and seven of those were taken care of by the North Slope Borough, not BLM. The remaining 120 wells are in various conditions of non-compliance with state law. The drill sites, many of which are contaminated by wood, metal, plastic, glass and concrete debris are also littered with rusting barrels once filled with contaminants, according to the Senator. “Addressing this issue may require me to seek a solution through the Appropriations Committee to direct the BLM to appropriately prioritize the importance of cleaning up these legacy wells,” Murkowski said. NGWA has a long-held position paper on the importance of properly sealing abandoned wells of all types. The need for proper sealing of abandoned wells was reiterated in the recent position paper on unconventional oil and gas development using hydraulic fracturing. A Duke University study of well water in northeastern Pennsylvania suggests that naturally occurring pathways could have allowed salts and gases from the Marcellus shale formation deep underground to migrate up into shallow drinking water aquifers. The study found elevated levels of salinity with similar geochemistry to deep Marcellus brine in drinking water samples from three groundwater aquifers, but no direct links between the salinity and shale gas exploration in the region. See Duke University release for summary and author’s comments about the “good news-bad news” that he sees in the study findings. The Natural Resources Defense Council released a best practices document for hydraulic fracturing. The BSP addresses several areas including well construction, water use, operation and maintenance, and site characterization. Highlights of Hydraulic Fracturing-Related Activity in the States The Pennsylvania Department of Environmental Protection Secretary in a letter to the Clean Air Council, an environmental group, stated that methane may have leaked through perforations in a Bradford gas well resulting in impacts to private wells and streams in the area. Pennsylvania Representative George’s H.B. 2556 would require pre-drilling testing of private water wells at the request of a landowner residing within 5,500 feet of a proposed Marcellus shale gas well. For news coverage, see this link. Resources for the Future (RFF) released a study comparing 31 states’ regulations to the American Petroleum Institute's (API) best practice guidelines for conducting safe oil and gas drilling and fracturing operations. RFF acknowledged difficulty in compiling the results because states address some crucial safety concerns through a well-by-well permitting process, rather than through regulations. An example of a critical concern that may not be adequately addressed, according to RFF, is pre-drill testing of water wells. The study found that regulations in 22 states do not mention pre-drilling water quality testing, including major producers such as Texas, Arkansas, Michigan and Pennsylvania, four of the five largest U.S. shale gas producers in 2009. API says best practice is to test water samples from any water sources near a well before drilling or fracturing. The North Carolina legislature “accidentally” passed a law allowing oil and gas hydraulic fracturing to take place in the state. The law’s passage came when Representative Becky Camey hit the wrong button and unintentionally voted to override Governor Perdue’s veto of legislation banning the practice in the state. Transportation News President Obama signed a new two-year highway bill on July 6. Among other provisions, the new law requires the U.S. Department of Transportation to develop regulations requiring electronic-on-board recorders for commercial motor vehicles involved in interstate commerce and operated by a driver subject to the hours of service and record of duty status under 40 CFR 395. Separately efforts are being made through the appropriations process to withhold funding for that rulemaking. The new law also requires a study by March 31, 2013 of the hours of duty restart provisions in the December 2011 Federal Motor Carrier Safety regulations. Of note, neither the December 2011 regulations nor the new Highway bill makes changes to the groundwater industry’s limited relief that allows the clock to restart following “an off-duty period of 24 or more consecutive hours.” H.R. 4348 (Public Law 112-141) funds highway projects through the end of fiscal year 2014. NGWA submitted comments in July to the Federal Motor Carrier Safety Administration highlighting impacts to the industry’s specialized vehicle operators and employers from agency action. In particular, the letter addressed concerns with the Compliance Safety Accountability (CSA) Program and its Safety Management System (SMS), including problems in removing erroneous information from the system, holding employers responsible for unauthorized employee hand-held cell phone use while driving, recording of accident data, correction of potential out-of- service violations at the site, and lack of a “no contest” option for violations. The House Small Business Committee held a hearing July 11 titled “Is FMCSA’s CSA Driving Small Businesses Off the Road? The hearing focused on flaws in the SMS that potentially identify safe operators as unsafe. Small businesses comprise the majority of regulated firms.