Provided by the Water Environment Federation,
Alexandria, VA

Water Infrastructure Bill Introduced in Senate
Senate leaders introduced legislation February 15 that would provide additional funding for the clean water and safe drinking water state revolving loan funds (SRF) and provide administrative revisions to the funding program. The "Water Investment Act of 2002" would authorize $35 billion over five years equally split between both SRF programs, while allowing states the flexibility to transfer funds from the clean water SRF to the drinking water SRF and vice-versa. One provision in the bill would require potential recipients of SRF funds to demonstrate "technical, managerial, and financial capacity." Senator Jeffords (I-VT), who chairs the Environment and Public Works Committee, called the bill the "next generation" of water infrastructure investment while ranking republican Senator Bob Smith (R-NH) said the bill would "provide communities throughout the Nation with essential resources to defray the costs of federal mandates and meet their sewage and drinking water needs." Both the chair and ranking member of the Fisheries, Wildlife, and Water subcommittee, Senator Bob Graham (D-FL) and Senator Michael Crapo (R-ID) also co-sponsored the legislation. Two hearings on the bill are set for February 26 and February 28. The bill does not contain a grant component that many organizations, including the Water Infrastructure Network (WIN) and WEF have advocated, however it does provide for principal forgiveness, at the option of the state, for loans that are targeted for disadvantaged systems of all sizes. (JKS)

Congress Criticizes EPA's Recommended Level for Water Infrastructure
Both House and Senate members criticized EPA for presenting a budget for fiscal year 2003 which does not fully fund the clean water and safe drinking water state revolving loan funds (SRF) during hearings on Capitol Hill this week. As part of the President Bush budget request to Congress on February 4, 2002, the clean water SRF is set to be reduced from $1.35 billion to $1.20 billion and the safe drinking water is set to remain stagnant at $850 million for fiscal 2003. During a February 13 Senate hearing on EPA's budget, Senator Jeffords (I-VT), who subsequently introduced legislation to provide additional money for the SRF program (see separate story), said he was concerned that "clean water revolving funds are cut 10% from last year's enacted level at a time when water systems are coping with additional cost of security." Senator Max Baucus (D-MT) called both SRF programs "extremely important and highly successful as an efficient way to leverage federal dollars for maximum benefit." Republican lawmakers joined in the criticism as well. Ranking Republican on the Water, Wildlife, and Fisheries subcommittee, Senator Kit Bond (R-MO), said "I will support efforts to increase substantially authorization levels for water infrastructure financing." EPA Administrator Christine Todd Whitman responded that the President has included separate allocations for homeland defense, including water security efforts, and that EPA is initiating a new $21 million targeted watershed program that is designed to fund priority watershed restoration efforts. On the House side, new EPA deputy assistant administrator for water Ben Grumbles stated EPA is considering convening a "high level forum" of government and interest group members to discuss how to best address the infrastructure gap. During the House hearing on February 5, 2002, many House members echoed concerns raised on the Senate side that EPA was not adequately funding water infrastructure. (JKS)

Farm Bill Passes Senate; Fight Brewing for Conference Committee
Although the much anticipated Farm Bill passed the Senate on February 13, it must now go to a conference between House and Senate members who have several contentious issues to address. The Senate bill, S. 1731, allocates $44.9 billion to agriculture programs over five years including nearly $22 billion in conservation measures. Senator Tom Harkin (D-IA), Chair of the Senate Agriculture Committee and Majority Leader Tom Daschle (D-SD), called the bill a bipartisan success and an "important victory for the economy of rural America." However, the ranking republican on the Senate Agriculture Committee, Senator Richard Lugar (R-IN) voted against the bill because "it does not include good provisions that increase the U.S. commitment to conservation." Lugar vowed to lead the charge in conference to change many of the Senate bills current provisions. The major issue of contention between the House version of the bill, which passed last year, and the Senate bill, is the degree to which farm subsidies, including dairy products, would continue. According to its critics, the Senate bill would encourage overproduction of subsidized crops. The Senate and House committee is expected to meet after the President's day recess, which begins on Friday, February 15. (JKS)

EPA Administrator Requests Timely Completion of NRC Biosolids Study
EPA Administrator Christine Todd Whitman sent a letter to the executive director of the National Research Council on February 12 encouraging timely completion of the study entitled "Risks from Toxicants and Pathogens in Biosolids Applied to Land." The study was initiated at the request of EPA in January 2001 to assess the science that supports the Part 503 regulations and guide the Agency in making future decisions concerning these regulations. The study is on schedule to be released by the end of May 2002. The letter restates the Agency's intent to use the current NRC study as a key component in determining its future course on sewage sludge regulatory activities. In addition, EPA plans to provide the public with an opportunity to review the study and submit comments prior to making any regulatory or programmatic decisions on sewage sludge land application. To view the letter, visit the National Biosolids Partnership web page - http://www.biosolids.org/. (SJH)

EPA Delists Sewage Sludge Incinerators from the 112(c) CAA List of Source Categories
EPA announced in the February 12 Federal Register that the Agency is deleting sewage sludge incineration (SSI) source categories under section 112(c) of the Clean Air Act because available data indicate that there are no major sources of hazardous air pollutants (HAP) in this category. The SSI source category was initially listed in July 1992. After extensive data collection and testing conducted since the initial listing, it was concluded that SSI sources do not have the potential to emit HAP at a level approaching major source levels. To view the Federal Register notice, visit the National Biosolids Partnership web page - http://www.biosolids.org/. (SJH)

Quote of the Week:
"This bill represents a new awareness on the part of the federal government that our nation's water supply is becoming an increasingly precious resource."-- Senator Bob Graham (D-FL) upon introduction of the "Water Investment Act of 2002", February 15, 2002

This Week in Washington is provided by the Water Environment Federation, Alexandria, VA. To receive This Week in Washington by e-mail, contact Lisa Scott, (703) 684-2400 ext. 7741, lscott@wef.org. For more information on this week's stories, please contact the WEF Government Affairs staff member whose initials appear at the end of the item in which you are interested. TSW -Tim Williams (703) 684-2437, twilliams@wef.org; JKS - Jim Sullivan, (703) 684-2436, jsullivan@wef.org: SRT - Sharon Thomas, (703) 684-2423, sthomas@wef.org; SJH - Sam Hadeed (703) 684-2418, shadeed@wef.org; EDM - Eugene DeMichele, (703) 684-2438, edmichele@wef.org; AMWA - Michael Archeneaux, michael@amwa.net. This Week in Washington is available on-line at www.wef.org/GovtAffairs