The Ferguson Group Blog

"Waters of the U.S." Comment Period Extended

Yesterday, the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) announced the second extension of the public comment period for the proposed "Waters of the U.S." rulemaking.  The deadline for comments has now been moved from October 20, 2014 to November 14, 2014.  

EPA and the Corps originally released the new proposed rule on April 21 which would create a new definition for "Waters of the U.S." and greatly expand federal jurisidiction of the nation's waterways. Many local governments as well as the agriculture industry are concerned about the regulatory burden the new definition would create.  See the links below for more information about the proposed rule and the reactions from some of the leading organizations fighting it:

 

- EPA "Waters of the U.S." Website

- American Farm Bureau "Ditch the Rule" Website

- National Association of Counties Information Hub

- National League of Cities Policy Page

 

What are your thoughts on the proposed rule?  How would it impact your community?

 

Calling all Rural and Small Water and Wastewater Systems!

The EPA and USDA have rolled out two new tools to help rural and small water and wastewater systems provide sustainable services to their communities.  The first, a new Rural and Small Systems Guidebook to Sustainable Utility Management, will help those systems assess their strengths and priorities for potential improvements, and develop an action plan to address these priorities.  

The second, a "Workshop in a Box," contains a series of materials and instructions to help both rural and small systems and service providers market and conduct workshops based on the guidebook.  According to the EPA, “These tools provide utilities with useful, concise reference points for utility managers seeking to improve organization-wide performance. They include a comprehensive management framework related to operations, infrastructure, customer satisfaction, community sustainability, natural re­source stewardship and financial viability.”  Check it out.

Chairman Hosts Twitter Town Hall on Water Infrastructure and Jobs

House Transportation and Infrastructure (T&I) Committee Chairman Bill Shuster (R-PA) is hosting a Twitter Town Hall on Tuesday, September 17^th to highlight the connections between the federal government’s investment in water infrastructure and jobs and economic growth.  The T&I Committee is attempting to move the Water Resources Reform and Development Act (WRRDA) this month and the Chair hopes that expanding the understanding of how important the bill is to the economy will increase support within the House. The latest WRRDA bill includes several reforms that supporters say will streamline project approvals and cut government red tape.  Leading into Tuesday’s Town Hall, he issued a YouTube video to set the stage.  On Tuesday, he expects to field a host of questions.  The Town Hall starts at 4:30pm (EST), and the hashtag is #WRRDA.  The last time Congress passed a water resources authorization bill was in 2008, overriding a veto from then-President Bush. 

Water Resources Development Act Headed to Committee, House Floor this Fall

When the House and Senate resume session in September, House Transportation and Infrastructure Committee Chairman Bill Shuster intends to bring up consideration of the Water Resources Development Act (WRDA), a bill that authorizes federal funding for Corps of Engineers-backed water infrastructure projects nationwide. House Floor action could come as early as October. The bill will also address a number of policy issues, setting up an expedited planning process designed to get projects into construction sooner and at reduced costs.

The House bill is unlikely, however, to include a new Water Infrastructure Finance and Innovation Act (WIFIA) authority. The Senate-passed WRDA bill includes WIFIA, which would offer low-cost, long-term financing for water infrastructure projects both through the Corps of Engineers and the Environmental Protection Agency (EPA). Under the Senate WRDA bill, WIFIA-backed loans would not begin loan repayment until five years following substantial completion of a project, with a 35-year repayment period. As of August 8, 2013, the TIFIA 35-year loan rate, which the WIFIA program is likely to replicate, was 3.68 percent.

If WIFIA were in place today, would your community pursue a WIFIA loan? Would the WIFIA loan rate allow you to move forward on a project more quickly than if the assistance was not in place? How much could your community save if WIFIA were in place today?

If WIFIA would help your community, tell your congressional delegation. Request a meeting while Members of Congress are back home and tell them how important WIFIA would be to your community.

House and Senate passage of a WIFIA program is far from assured.

Bill Introduced to Promote Pilot Communities/Extend Clean Water Permit Terms in Implementing EPA Integrated Planning and Permitting Framework

On July 17th, Reps. Steve Chabot (R-OH), Mike Simpson (R-ID), and Sam Graves (R-MO) introduced H.R. 2707, the Clean Water Compliance and Ratepayer Affordability Act of 2013. The bill that would provide local communities the flexibility to use innovative and cost-effective approaches to federal Clean Water Act (CWA) compliance, either under an Environmental Protection Agency (EPA) CWA permit or court-approved consent decree. The bill would create a pilot program for 15 communities across the country to transparently work with the EPA to develop new, more flexible ways for communities to meet CWA compliance goals under the agency’s new Integrated Planning and Permitting Framework.

H.R. 2707 facilitates flexible compliance solutions by providing the EPA with the direction and authority to work cooperatively and collaboratively with pilot communities to: lengthen the terms of Clean Water Act permits to up to 20 years; adjust implementation plans under consent decrees; take into account worsening economic conditions affecting a community’s ability to afford wet weather investments; and strengthen a community’s ability to use innovative and adaptive approaches to solve wet weather problems.

The immediate need for this legislation could not be more pressing as many communities across the nation, currently reeling from the strain of high unemployment, stagnant economic conditions, and the housing crisis, grapple with unfunded federal mandates for water infrastructure improvements to meet stringent CWA requirements. While reducing and eliminating sewer overflows and ensuring stormwater flows do not pollute waterways should be our primary goal, allowing communities to use new, cost effective methods, such as “green” infrastructure and adaptive management, to accomplish these tasks can reduce costs while fixing the problems at hand. The legislation directs the EPA to provide these struggling communities with the flexibility and realistic timelines to plan, implement and assess results in a transparent, integrated process in order to inform future investments in clean water projects.

The Perfect Storm Coalition, made up of communities facing these daunting mandates, has lobbied for the introduction of H.R. 2707 for the past several years, and looks forward to congressional hearings on the legislation. The Coalition is also working with the Senate to introduce a companion bill. If your community is concerned about massive investments in clean water infrastructure required by the EPA or the courts to meet CWA regulatory mandates, please consider joining the Coalition and pushing for the bipartisan adoption and enactment of this important legislation.

Don’t Mess with Muni Bonds Tax Status Say National Water Associations

The National Association of Clean Water Agencies (NACWA) and the Association of the Metropolitan Water Agencies (AMWA) jointly issued a report showing the benefits of tax-exempt status for municipal bonds.  The groups analysis shows that ending or capping the tax-exempt status would directly result in increased costs for providing water and wastewater services to people and businesses.   The report, The Impacts of Altering Tax-Exempt Municipal Bond Financing on Public Drinking Water & Wastewater Systems, concludes that a proposed major change in over 100 years of federal tax policy would shift water and wastewater costs onto residents and businesses and NOT investors, as some of the idea’s proponents suggest.

Earlier this year, the White House issued a 2014 budget proposal that would impose a 28 percent benefit cap on tax-exempt municipal bond interest for high-income taxpayers.  The report shows that, based on the volume of bonds issued in the previous year (slightly over $39 billion for 2012), state and local governments would have had to pay $6 billion in additional expenses for water and wastewater infrastructure projects.  All but two states issued municipal bonds in 2012 to help finance needed infrastructure projects.   Had the cap been in place then, there would have been an astronomical number of projects not undertaken, fewer jobs created and sustained and less service to residents. 

The report is available on the NACWA and AMWA websites at www.nacwa.org or www.amwa.net.

 

Infrastructure Bank Bills Compete

Will this be the year that Congress moves an infrastructure bank bill forward? At a time when available federal dollars are not meeting the needs of the nation’s infrastructure projects, the concept of a federal infrastructure bank may finally be gaining much-needed momentum. Last week two separate Democratic House members promoted competing infrastructure bills.  Congresswoman Rosa DeLauro (D-Conn.) reintroduced her infrastructure bank bill, the “National Infrastructure Development Bank Act,” – a proposal she has steadfastly reintroduced annually for the past decade!  And, freshman congressman John Delaney (D-Md.) circulated a letter in support of his infrastructure bank bill, “The Partnership to Build America” (H.R. 2084).  Delaney’s bill proposes to leverage private dollars to fund large infrastructure projects. Unlike most federal infrastructure bank proposals, however, DeLaney’s bill is not initially capitalized with appropriated funds.  Instead, Delaney’s bill proposes to use tax earnings repatriated from overseas, which is a unique and controversial approach.  DeLauro’s bill proposes to capitalize the bank with $25 billion in appropriations, and then projects the bank to become self-sustaining through revenues from financed projects.  Despite support from the President and Senate Democrats, the infrastructure bank idea has yet to catch fire.  With two competing bills this year, expectations are heightened that one could gain enough momentum to finally take off. 

The Passing of a Senator

Today has been a somber day of steady rain as New Jersey Senator Frank Lautenberg was buried at Arlington National Cemetery. News reports this past week cited how his passing was notable because he was the last sitting senator of the "greatest generation," that chamber's last veteran of World War II. His death came just months after Hawaii's Senator Daniel Inouye, a wounded veteran of that war, took his resting place among the nation's noted military and civilian leaders at Arlington.

It need be said that Senator Lautenberg's death on June 3, also is notable because it marked the passing of a champion of Federal policy to making communities healthier, the environment cleaner, and industry and travel safer and better. It was a personal agenda well suited to his home State of New Jersey but carried out with no less than the nation in mind. 

In his 28 years as a senator he served on virtually every committee and subcommittee that touched on authorizing and funding transportation, civil works and environmental policy. For a period he chaired the Transportation Subcommittee on Appropriations while as a senior member of the Environment & Public Works Committee. In recent years he also chaired the Surface Transportation and Merchant Marine, Infrastructure, Safety and Security Subcommittee of the Senate Commerce, Science & Transportation Committee.  His approach to legislating was to cover all the bases, or at least as many as he could. He championed improving airports and the aviation system, expanding the use of transit and passenger rail, modernizing freight transportation, bringing American port infrastructure to world standards, and securing them all from the those who would do us harm.  

He was appointed to the President's Commission on Aviation Security and Terrorism after the tragic downing of Pan Am Flight 103 over Lockerbie, Scotland, and returned to the Senate, after a two-year hiatus, to help write and oversee anti-terrorism law after the downing of the World Trade Center towers. In those towers he had served on the Board of Commissioners for the Port Authority of New York & New Jersey before being elected senator in 1982. That--and his building the Automatic Data Processing Corporation (ADP) from scratch--were parts of his resume about which he often enjoyed telling people if the occasion would allow.

Senator Frank Lautenberg put much effort into environmental issues. He devoted considerable time to the recovery of the old industrial wasteland through brownfields initiatives and Superfund legislation and to making the Toxic Substances Control Act more effective. He was protecting the coastline whether the recreation beaches or the nurturing marshlands. In his last year he walked the Jersey Shore in the wake of Superstorm Sandy, secured bi-partisan support for his toxic substances legislation and, from his wheel chair, cast his final vote in support of tighter gun legislation.

From start-to-finish Senator Frank Lautenberg was an advocate for his New Jersey and for improving the vitality of the United States by improving the quality of its people's lives and its means of commerce.

 

Growing Support for Innovative Solution to Fund Our Infrastructure Needs

Representative John Delaney,  a freshman Member of Congress from Maryland, thinks he has the next big idea for financing infrastructure in our country and two dozen of his colleagues seem to agree.  Thirteen Democrats and thirteen Republicans have signed on as cosponsors of  the legislation, The Partnership to Build America Act, which would create an infrastructure bank funded by repatriated overseas tax income. Essentially, the legislation establishes  an entity that would sell 50-year bonds at a 1 percent interest rate. U.S. corporations would be allowed to repatriate an amount of money — to be determined by auction — tax-free from overseas for every $1 they invest in the bonds. The fund would be capitalized with $50 billion in seed money, which Delaney said can leverage up to $750 billion to finance transportation, energy, communications, water and education infrastructure projects.

While there is no shortage of disagreement over how to finance our nation’s infrastructure needs, there does seem to be consensus that the need is growing and it is good to see another innovative solution added to the discussion.

Wednesday News Roundup

Every Wednesday, The Ferguson Group blog will be posting a series of articles published over the previous week that discuss topics of interest to local governments. Learn about emerging trends and keep up on key policy issues by browsing the TFG Wednesday News Roundup!

Almost the Same Cost, Spend Differently:  Comparing Farm Bills in House, Senate Committees

Even though both the House and Senate Farm Bill drafts look to spend about $500 billion over a five-year period, there are some major differences on how the money will be allocated.  See how the different bills deal with food stamps, direct payments, crop insurance, price protection and food aid.  Read More…

On Tech Visas, Orrin Hatch Holds Some Cards

Senator Orrin Hatch (R-UT), a major tech industry advocate, has been a supporter of H-1B visas and is being seen as a potential swing vote on the Gang of Eight immigration bill.   With his leverage, Hatch is pushing for his tech-friendly amendments in the bill, and has stated that he will oppose the legislation without his provisions.  Read More…

Senate Votes to Extend Federal Law Overseeing Water Resources Projects

The Water Resources Development Act of 2013 (WRDA) has jumped its first major hurtle, sailing through the Senate on Wednesday by a vote of 83-14.  The comprehensive water bill will promote imperative investments in water infrastructure projects in the new earmark-ban era.  This bill is the first water bill to be passed by the Senate since 2007.  Read More…

House Panel Passes $73.3B Military Construction, Veterans Affairs Bill

The House Appropriations Subcommittee on Military Construction and Veterans Affairs moved its first bill from the subcommittee on May 15^th.  The $73.3 billion appropriations bill looks to provide $9.9 billion for military construction projects and $63.1 billion of discretionary spending to the Department of Veterans Affairs.  Read More…

Has High-Speed Rail Been Derailed?

In 2008, the Administration made high-speed rail a national priority.  However, with the lack of funding and differing opinions amongst Congress, the future of high-speed rail in California and the rest of the United States is slowly becoming an intangible vision.  Read More…

Lower Health Care Costs May Last

Through a recent study, Harvard economists have predicted that the lagging growth of U.S. health care costs could mean significantly less spending on Medicare, translating in $770 billion worth of savings over the next decade.   The economists point to several factors that explain the recent downshift in growth and how this relates to projected estimates of health care costs by the Congressional Budget Office and Medicare and Medicaid Services.  Read More…