This Week in Washington is a weekly publication of the Water Environment Federation’s Government Affairs department. It provides updates on the latest legislative and regulatory developments that affect the water and wastewater communities.

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February 9, 2007

Provided by the Water Environment Federation, Alexandria, VA

House Transportation & Infrastructure Committee Closer to Boosting FY08 SRF Funding
The Clean Water State Revolving Loan Fund (SRF), facing severe cuts in the White House fiscal 2008 budget, could see a $20 billion boost over the next five years based on legislation that sailed through the House Transportation and Infrastructure Committee on February 7. The "Water Quality Financing Act," or H.R. 720, now goes before the full House, where it is expected to pass.  The bill seeks to reauthorize the SRF program at $20 billion over fiscal 2008 to fiscal 2012 and would help close the existing gap between wastewater infrastructure needs and current spending levels, according to its advocates.  The fund has suffered serious budget cuts over the years and faces a nearly $400 million cut in President Bush's fiscal 2008 request -- the largest cut in the U.S. Environmental Protection Agency (EPA) budget. The agency predicts it will take more than $380 billion to meet the nation's wastewater needs over the next two decades, while the nonpartisan Congressional Budget Office estimates that the clean water SRF's annual funding gap ranges anywhere from $3.2 billion to $11.1 billion. To view H.R. 720, visit: http://www.eenews.net/features/bills/110/House/070207140557.pdf.  (SJH)

House Committee Passes Bills to Address Sewer Overflow, Alternative Water Source Projects
The House Transportation & Infrastructure Committee also on February 7 passed H.R. 569, the "Water Quality Investment Act of 2007," which would authorize $1.8 billion in grants from fiscal year 2008 through 2012 for sewer overflow grants nationwide.  In fiscal 2008, the bill authorizes the federal government to dole out grants to municipalities on a competitive basis to control combined and sanitary sewer overflows. Afterwards, grants would be given out via a funding formula that allocates cash for each state, which in turn provides grants to municipalities. The Committee also passed H.R. 700, the first piece of legislation offered by Rep. Jerry McNerney (D-CA), who unseated Rep. Richard Pombo (R-CA) in November. The "Healthy Communities Water Supply Act" would authorize $125 million to boost investment in alternative water supplies through reclamation, reuse, and conservation. To view H.R. 569, visit: http://www.eenews.net/features/bills/110/House/070207142141.pdf. To view H.R. 700, visit: http://www.eenews.net/features/bills/110/House/070207141647.pdf. (SJH)

EPA Releases FY 2008 Budget
U.S. Environmental Protection Agency (EPA) Administrator Stephen Johnson released his agency's $7.2 billion fiscal year 2008 budget on February 5.  The new budget cuts EPA funding by nearly 4 percent in FY08, providing $7.2 billion for EPA, which is $294 million below the estimated level for the current fiscal year.  The Clean Water State Revolving Fund (SRF) would be funded at $687.6 million, unchanged from the estimated amount for FY07, but below the $831 million provided in FY06.  The proposed budget includes $842 million for the drinking water SRF, the same as FY07 and up from $837 million in FY06.  The State and Tribal Assistance Grants (STAG) program would get $2.7 billion under the proposed budget, down from $2.8 billion in FY07 and $3.1 billion in FY06.  EPA’s estimates for 2007 are based on a temporary spending measure that will expire next week since Congress has not enacted an appropriations bill for EPA for the current fiscal year.

The proposed 2008 spending plan includes $549.5 million for enforcement operations, the largest amount ever dedicated to enforcement and a $9.1 million increase over the FY07 amount.  This budget also features funding to restore, improve and protect four regional water assets: Chesapeake Bay ($28.8 million), Puget Sound ($1 million), Gulf of Mexico ($4.5 million), and Great Lakes ($56.8 million).   With a focus on improving air quality, the president's budget includes: $117.9 million for EPA's climate change programs; $44 million for Energy Star programs; $5 million for the Asia Pacific Partnership to support international efforts to reduce greenhouse gas emissions, and $4.4 million for Methane to Markets to promote methane recovery and use.  In the area of promoting scientific research, the president's budget includes $10.2 million for Nanotechnology Research, an increase of $1.6 million to identify potential uses and study nano-scale materials that are subject to Toxic Substances Control Act requirements. In addition, the budget requests a total of $1.245 billion for Superfund, an increase of $25 million, and $162.2 million for the Brownfields program.  For more information on the President's FY 2008 budget request for EPA, visit: http://www.epa.gov/ocfo/budget/index.htm.  (SJH)

EPA Soliciting Stakeholder Comment on Proposed National Enforcement and Compliance Assurance Priorities for FY 2008-2010
EPA announced in the February 9 Federal Register that it is requesting public comment and recommendations on triennial national enforcement and compliance assurance priorities to be addressed for fiscal years 2008-2010. EPA's Office of Enforcement and Compliance Assurance (OECA) selects multi-year national priorities focusing on specific environmental problems, risks, or patterns of noncompliance.  A performance-based strategy is developed for each national priority to characterize the problem and set goals for addressing it.  EPA intends to consider public comments during the priority identification process. Final priority selections are generally incorporated into the OECA Workplanning Guidance. These priorities also affect implementation of the enforcement and compliance goals and objectives outlined in the EPA Strategic Plan.  Comments are due to EPA by March 12. To view the Federal Register notice, visit: http://www.epa.gov/fedrgstr/EPA-GENERAL/2007/February/Day-09/g2179.htm.  (SJH)

U.S. and EU Sign Pact on Common Environmental Challenges
U.S. and European Union scientists and researchers plan to work more closely in solving common environmental problems and sharing information on emerging issues such as nanotechnology under a new agreement finalized on February 9 in Brussels. EPA Administrator Stephen Johnson and Director General for Research Jose Manuel Silva Rodriguez of the European Commission (the executive body of the European Union) have signed an “Implementing Arrangement on Environmental Research and Ecoinformatics.”  Ecoinformatics is advanced computer and information technology necessary for environmental research.  Cooperation under the EPA-EC Implementing Arrangement is expected to take many forms, including direct collaboration between U.S. and European researchers and associations; joint sponsorship of conferences, workshops and meetings; coordinated calls for proposals and mutual participation in peer reviews; and exchanges of information, methodologies, and data.  To view the agreement, visit: http://www.epa.gov/international/regions/Europe/index.html.  (SJH)

$2.7 Million Available to Local Communities to Reduce Toxic Exposure
EPA announced on February 9 that it is making $2.7 million available to support community-based partnerships in reducing risks from toxics in local communities in two types of cooperative agreements through the Community Action for a Renewed Environment (CARE) program.  Level I cooperative agreements will help establish community-based partnerships and set priorities for reducing risks from toxics in a community. EPA anticipates awarding 8 to 10 cooperative agreements under Level I, ranging from $75,000 to $100,000.  Level II cooperative agreements are for communities that already have undertaken a comprehensive process to assess risks from all sources of toxics, formed a broad-based collaborative, have identified risk reduction priorities, and are ready to implement risk reduction strategies. EPA expects to award six to eight cooperative agreements, ranging from $150,000 to $300,000.  Applications are due April 9.  For additional information and how to apply for the cooperative agreements, visit: http://www.epa.gov/care/agreements.htm.  (SJH)

This Week in Washington is provided by the Water Environment Federation, Alexandria, VA. To receive This Week in Washington by e-mail, contact Lisa Jones, (703) 684-2400 ext. 7741, ljones@wef.org. For more information on this week's stories, please contact the WEF staff whose initials appear at the end of the item in which you are interested. TW –Tim Williams (703) 684-2437, twilliams@wef.org; SRT - Sharon Thomas, (703) 684-2423, sthomas@wef.org; SJH - Sam Hadeed (703) 684-2418, shadeed@wef.org; PS-Patricia Sinicropi (703) 684-2416, psinicropi@wef.org. This Week in Washington is available on-line at http://www.wef.org/GovernmentAffairs/TWIW/.