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Secretary Salazar Defends Proposed Interior Budget
On Wednesday, March 3, Secretary of the Interior Ken Salazar testified before the Senate Energy and Natural Resources committee outlining accomplishments for 2009 and defending his proposed budget for Fiscal Year 2011. With regard to California’s ongoing water crisis, Salazar said a highlight for 2009 was “Coming to the aid of drought-stricken California with emergency aid and infrastructure investments.” In providing an overview of the proposed FY 2011 budget, Salazar said “Interior’s 2011 budget reflects an aggressive agenda in the context of challenging fiscal times.” The 2011 Interior budget request for current appropriations is $12.2 billion, $38.7 million or 0.3 percent below the level enacted by Congress for 2010 .Within this amount, the budget proposes investments for high priority goals and initiatives, including:
•Confront the realities of climate change by launching an integrated strategy for Climate Change Adaptation. An increase of $35.4 million is requested to implement the Department’s integrated program.
•Tackle the water challenges facing the Country with a new strategy to Sustain and Manage America’s Resources for Tomorrow. The Department’s WaterSMART sustainability agenda includes increases of $36.4 million.
In written comments, Secretary Salazar focused on the proposed WaterSMART Program. “The 2011 budget proposes a sustainable water strategy to assist local communities to stretch water supplies and improve water management. A High Priority Performance Goal is established to enable capacity to increase water supply for agricultural, municipal, industrial, and environmental uses in the western United States up to 350,000 acre-feet by the end of 2011 through the Bureau of Reclamation’s conservation programs including water reuse and recycling and WaterSMART (formerly challenge) grants.
The budget for the WaterSMART program – Sustain and Manage America’s Resources for Tomorrow – includes $72.9 million, an increase of $36.4 million over the 2010 enacted level for sustainability programs in Reclamation and USGS. Reclamation will use $62.0 million, an increase of $27.4 million, to improve water management by encouraging voluntary water banks; reduce demand; implement water conservation and water reclamation and reuse projects; and take action to improve energy efficiency and reduce environmental conflicts. The USGS will use $10.9 million, an increase of $9.0 million, for a multi-year, nationwide water availability and use assessment program.”
The full text of Secretary Salazar’s testimony can be found here.
 Senator Feinstein Questions Administrator Jackson on EPA Budget, Bay-Delta Water Quality
Senator Feinstein (D-Calif.), Chairman of the Appropriations Subcommittee on Interior & the Environment questioned the EPA Administrator on the President’s 2011 Proposed Budget. In her opening statement, Senator Feinstein commended “the Administration for shifting resources within this tight budget to provide increases for other critical priorities – starting with climate change.” She also commented that despite the 5 percent cut to the Drinking Water and Clean Water State Revolving Funds, “I would like to point out that this Subcommittee provided a 35 percent increase to EPA’s budget for Fiscal Year 2010.”
Senator Feinstein questioned Jackson on the EPA’s role to restore the Bay-Delta. She asked what the EPA can do to address water quality, particularly, ammonia and pyrethoid discharges. Jackson responded that the EPA is committed to working on the water quality side of the problem in the Delta – to look at the discharges and the Bay-Delta as an ecosystem.
Senator Lamar Alexander (R-Tenn.) questioned the Administrator on the designation of coal ash as hazardous waste. He agreed there is a need for the regulation, but wants to make sure the designation does not stifle the 50% of coal ash that is reused. Jackson agreed with the Senator that the coal ash needs to be regulated, but that her concern is the effect coal ash leeching out of impoundments on groundwater, not stifling reuse.
 Senate Homeland Security Committee Holds Chemical Security Hearing
The Senate Homeland Security Committee held a hearing on chemical security March 3. Authorization for the current Department of Homeland Security program expires in October and the hearing was designed to assess the program and explore various legislative options for reauthorizations. The current DHS program does not apply to water and wastewater facilities.
Currently, there are two chemical security bills before the Committee: the Chemical and Water Facilities Security Bill, H.R. 2868, that passed the House last November; and S.2996 extending the current DHS security program for an additional 5 years.
Mr. Peter Silva, EPA’s Administrator for Water; and Mr. Rand Beers, Under Secretary for the National Protection and Programs Directorate at the Department of Homeland Security, testified on behalf of the Obama Administration. At the hearing, they outlined the Administration’s principals for chemical security legislation including the following statements:
•EPA should be the lead agency for chemical security for both drinking water and wastewater systems, with DHS supporting EPA’s efforts. •To address chemical security in the water sector, EPA would utilize, with modifications as appropriate given statutory requirements and the uniqueness of the sector, DHS’ existing risk assessment tools and performance standards for chemical facilities. •DHS should be responsible for ensuring consistency of high-risk chemical facility security across all 18 critical infrastructure sectors. •Where possible, the Administration supports using safer technology, such as less toxic chemicals, to enhance the security of the nation’s high-risk chemical storing facilities. Facilities posing the highest degree of risk should be required to implement IST method(s) if such methods enhance overall security, are feasible, and consider public health and environmental requirements.
The Administration anticipates providing the Committee with suggested legislative language in the next 2-3 months. Administration officials took no position on the House bill and are seeking a 1 year extension of the current program while they develop their legislative proposal.
On a second panel of witnesses, Dr. Darius Sivin, a Legislative Representative for the UAW testified on behalf of the “Blue-Green Coalition” an alliance of union and environmental organizations. In his testimony, he was highly critical of security at drinking water and wastewater facilities. Specifically, he stated that there was no public health justification for water treatment facilities to refuse to switch from chlorine gas to liquid chlorine. He cited a recent Center for American Progress study that concluded it would cost ratepayers less than $1.50 per year for water agencies to switch to “safer technology.”
This appeared to be the first of several hearings the Senate Homeland Security Committee will have on this topic as it decides what bill it would like to move forward. Additionally, Committee members seemed receptive to waiting for 2-3 months for a more concrete proposal from the Obama Administration. If legislation regulating security at drinking water and wastewater facilities does move forward, the Senate Environment and Public Works Committee, Chaired by Senator Boxer (D-CA), will also become involved. ACWA will continue to track this issue.
 WRDA 2007: Congress Unhappy with Army Corps
On Wednesday, March 3, the House Transportation & Infrastructure committee held an oversight hearing on the Army Corps’ implementation of WRDA 2007 and the results weren’t pretty. Chairman James Oberstar (D-Minn) began the hearing by saying, “Rather than swiftly and quickly embracing the reforms of WRDA ’07, the Corps has been slow to implement and has not followed the right minding of the statute and congressional intent”. Oberstar reminded the Corps that WRDA 2007 had taken seven years to craft and while President Bush vetoed the legislation congress overwhelmingly overrode his veto. Subcommittee on Water Resources and Environment Ranking Member John Boozman (R-AK) supported Oberstar by saying, “WRDA 2007 is now the law of the land and we all support it. If the Administration finds that some provisions are unworkable, it is their responsibility to come to us.”
Testifying on behalf of the Water Resources Coalition (WRC), of which ACWA is a member, was Brian Pallasch, the coalition’s co-chair. Pallasch expressed concern that the ongoing review of Principles and Guidelines (P&G) for water projects, which started with the Corps but is now being handled by the White House Council on Environmental Quality (CEQ), had moved from a transparent process to more a matter of correspondence. Regarding CEQ’s proposed revisions, now out for public comment and required by WRDA 2007, Pallasch said while the WRC welcomed the elevation of environmental considerations in project analysis, it is equally important to consider public safety concerns and the resilience of water projects. He urged that such provisions be given equal footing to economic development and environmental impacts.
A video of the hearing and full witness testimonies can be found here.
A Majority Report released after the hearing can be found here.
 NEPA Hindering Dispersal of DOE Stimulus Funds
The Senate Energy and Natural Resources Committee held a hearing to examine the Department of Energy’s implementation of American Recovery and Reinvestment Act programs on March 4. According to a recent Inspector General’s report, only 7% of the DOE’s $37 billion in ARRA funding had been expended by the end of February.
Mathew Rodgers, the Senior Advisor to the Secretary for Recovery Act Implementation at DOE, testified at the hearing and informed Senators that DOE is working through most of the bottle necks and will be able to expend funds more rapidly in the coming months. The ARRA greatly expanded funding many DOE programs that had only received limited support in the past so the agency needed to develop more robust program guidelines before proceeding.
Michelle Nellenbach, Director for the Natural Resources Committee of the National Governors Associations, testified about the State’s experiences with DOE programs. According to her testimony, NEPA reviews, Davis Bacon prevailing wage requirements, and historic preservation requirements were creating most of the delays. While problems associated with implementation of Davis-Bacon rules have largely been overcome, “NEPA reviews are still a problem and concern moving forward” she said.
Mathew Rodgers informed Committee members that DOE was deploying “SWAT teams” around the country to help state and local jurisdiction navigate the NEPA process and work through other application difficulties.
Other witnesses testifying at the hearing included Patricia Dalton, Managing Director, Natural Resources and Environment, Government Accountability Office; and Malcolm Woolf, Director of Maryland’s Energy Administration and Vice-Chair of the National Association of State Energy Officials.
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NWRA's 2010 Federal Water Issues Conference
 NWRA's Federal Water Issues Conference is March 22-24, 2010 in Washington, D.C.
To download the meeting schedule and registration form, please click here.
 ACWA's 2010 Spring Conference & Exhibition
 ACWA's 2010 Spring Conference & Exhibition
May 4-7, 2010 Portola & Marriott Hotels, Monterey, CA
To register, please click here.
 Rep. Moran Voted Chair of Interior Appropriations
On Thursday, March 4, House Appropriations Committee Democrats chose Rep. Jim Moran (D-Va.) to chair the Interior, Environment and Related Agencies subcommittee, which funds the Interior Department and Environmental Protection Agency. Moran is replacing Rep. Norm Dicks (D-Wash.), who was elected chairman of the Defense subcommittee. The moves come after the recent death of Rep. John Murtha (D-Pa.), who had chaired the Defense subpanel. The moves still must be approved by the House Democratic Steering and Policy Committee and the full Democratic caucus, likely next week.
The announcement was praised by Environmental advocates saying Moran has been a longtime champion of their causes.
 D.C. Conference Wrap Up
About one-hundred ACWA members traveled to Washington, D.C. last week for ACWA’s 2010 D.C. Conference.
ACWA members heard from the Honorable Pete Silva, EPA Assistant Administrator for Water; the Honorable Jim Ziglar, Senior Counsel, Van Ness Feldman; Congressman Calvert (R-44); Congressman McClintock (R-4); Congressman Nunes (R-21); and Congressman Costa (D-20).
Look for a full review of the conference in the next edition of ACWA News.
 CEQ Extends P&G Comment Deadline
The White House Council on Environmental Quality (CEQ) extended the comment period deadline on the proposed ‘Economic and Environmental Principles and Guidelines (P&Gs) revisions from March 5 to April 5, 2010.
The P&Gs, once finalized, will apply to Federal water resources implementation studies including project reevaluations and modifications except those commenced prior to the issuance of the revised guidance.
To read CEQ’s proposed revisions, please click here.
 House Hearing Focuses on Endocrine Disrupting Chemicals in Drinking Water
The House Energy and Commerce Subcommittee on Energy and Environment held a hearing entitled “Endocrine Disrupting Chemicals in Drinking Water: Risks to Human Health and the Environment” on February 25. This was an information gathering hearing to examine the science and regulation of endocrine disruptors and no specific legislation was considered.
Representative Jim Moran (D-VA), the new Chairman of the House Appropriations Subcommittee on Interior and Environment, appeared to testify at the hearing. The new Appropriations Subcommittee Chairman oversees EPA budget and he expressed his view that “endocrine disrupting chemicals are seriously undermining the health of our nation”. Other witnesses testifying at the hearing included Jim Jones, Deputy Assistant Administrator for the Office of Prevention, Pesticides and Toxic Substances at EPA; Linda S. Birnbaum, Director of the National Institutes of Environmental Health Sciences; Gina Solomon, Senior Scientist at the Natural Resources Defense Council; and Christopher J. Borgert, President and Principal Scientist, Applied Pharmacology and Toxicology, Inc.
Both Dr. Birnbaum and Dr. Solomon emphasized the effects of low doses of endocrine disrupting chemicals on hormone function. For many of these chemicals, increasing exposure levels produced no observable impacts. This result is the opposite of the usual dose response curve, showing greater impacts at higher concentrations, around which drinking water regulations are based. Dr. Solomon suggested a new regulatory scheme might be necessary to protect against the low dose impact endocrine disruptors.
Dr. Solomon called for immediate regulatory action on perchlorate, phthalates, Bisphenol A, steroid hormones, and Concentrated Animal Feeding Operations. She described these as just a few examples of issues “crying out for EPA action”. Democratic Representatives attending the hearing, including Lois Capps (D-Calif), expressed dismay over the length of time it takes to proceed from EPA’s decision to regulate a contaminant to an actual drinking water standard is enforced.


Written and Designed by Association of California Water Agencies. ACWA Washington Report is a free, bi-weekly email publication.
916.441.4545 • Fax 916.325.4849 910 K Street, Suite 100 • Sacramento, CA 95814 www.acwa.com
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