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America’s Water Infrastructure Act Impacts to the PWSS program

America’s Water Infrastructure Act Impacts to the PWSS program. May 15, 2019. System Compliance. CCR. PN. Increased DWSRF funding AWIA Lengthened DWSRF Repayment Period AWIA Asset Management WIIN Small and Disadvantaged Systems Grant WIIN Lead Reduction Grant. Workforce Initiative

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America’s Water Infrastructure Act Impacts to the PWSS program

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  1. America’s Water Infrastructure Act Impacts to the PWSS program May 15, 2019

  2. System Compliance CCR PN Increased DWSRF funding AWIA Lengthened DWSRF Repayment Period AWIA Asset Management WIIN Small and Disadvantaged Systems Grant WIIN Lead Reduction Grant Workforce Initiative AWIA Risk Assessments AWIA Restructuring Assessment Rule AWIA Intractables Report AWIA DWSRF set-aside eligibility for source water AWIA Strategic Plan for Compliance Data WIIN Lead testing in Schools Grant AWIA CCR rule NCI EPA Technical Assistance Grants Water Re-Use Nutrients Infrastructure Asset Management Capacity Development Operator Certification Partnerships Technical Assistance SDWA Implementation State Program Funding DWSRF Infrastructure Loans DWSRF Set-Asides PWSS Grants AWIA increased subsidy Increased repayment period

  3. AWIA Impacts to PWSS Program

  4. Report to congress- Small systemsProject Leads: Cindy Mack & Deborah Vacsrenwick

  5. AWIA Report To Congress – Small Systems • How did AWIA amend the SDWA? • October 23, 2018, Congress added Section 1459C - Study on Intractable Water Systemsthat directs EPA to: • conduct a study on small systems that are or have been in significant noncompliance no later than two years from the enactment of the Act • identify the systems deemed as historical significant non-compliers (HSNC) that meet the definition of intractable water systems • describe the barriers these systems face in the delivery of potable water. • coordinate with US Department of Agriculture (USDA) and Health and Human Services (HHS)

  6. AWIA Report To Congress – Small Systems • AWIA defines “intractable water systems” as a community or noncommunity water system that serves fewer than 1,000 individuals and the owner or operator is: • unable or unwilling to provide safe and adequate service to those individuals; • has abandoned or effectively abandoned the community water system or noncommunity water system, as applicable; • has defaulted on a financial obligation relating to the community water system or noncommunity water system, as applicable; or • fails to maintain the facilities of the community water system or noncommunity water. • And, • The system is in significant non-compliance with SDWA or regulations [i.e., NPDWRs] prior to the Act or listed as having a history of significant non-compliance (HSNC).

  7. Methodology Used – SDWIS FED • SDWIS-Fed data queried for systems that meet the following criteria: • Serve <1,000 individuals • System currently active • HB violation (MCL or TT) “start date” after 1/1/2016 • System had an open HB violation in 3 out of 4 quarters (274 days) of each year (2016, 2017 and 2018) • Total: 334 systems found meeting criteria

  8. Breakdown of PWS by Regions & by Rules

  9. AWIA Report To Congress – Small Systems • Excel template asks, for each system: • 1. Which, if any, of the AWIA criteria (related to owner and/or operator) applies to the system. • 2. Which barriers apply to the system (space provided to input other barriers or comments):

  10. AWIA Report To Congress – Small Systems

  11. AWIA Report to Congress- Small Systems • Instructional Webinars for EPA Regional staff hosted May 1st and May 8th. • Stakeholder Involvement – EPA will host webinars in the summer to present data analysis and draft report. • Draft Final Report to Senior Management Team at EPA- Sept 2019 • Need regional (and potentially state) input: • Filling out Excel Template with barriers and criteria • Providing Best Practices to support HSNC systems

  12. AWIA Asset ManagementProject Leads: Adrienne HarrisBrooke Porter

  13. AWIA - Encouraging Asset Management via the Capacity Development Program • AWIA amends the SDWA and requires: • That the states amend the state capacity development strategy to include a description of how the state will encourage the development of asset management plans that includes best practices and include any training, technical assistance and other activities to help implement asset management plans. • That the state includes an update of these activities to encourage asset management practices in the Governor’s report. • EPA to review and update, if appropriate, asset management documents and trainings every five years.

  14. State Asset Management Initiatives • Various state initiatives involving the promotion of asset management. The categories of initiatives include: funding activities, regulatory activities, assistance activities and internal activities. • From 2012 to 2018, there was a significant increase in the number of state activities involving asset management. • Funding Regulatory Assistance Internal • 2012 21 20 34 34* • 2018 41 33 44 33 • *Internal activities for 2012 included “Participates in State/EPA AM Workgroup.” Internal activities for 2018 did not include this subcategory.

  15. Implementation Timeline • May/June 2019: EPA/ASDWA subcommittee to discuss possible AWIA Section 2012 implementation approaches. States represented: Arizona, Colorado, Connecticut, Idaho, Kansas, Kentucky, Oregon, Virginia and Wisconsin. • July 2019: Listening Session to review approach/provide feedback • Sept 2019: Release implementation guidance for state coordinators • October – December 2019: Roll-out webinars for state capacity development coordinators on guidance and available asset management tools and trainings

  16. Draft Implementation Approach  “SDWA 1420. Capacity Development (c)(2)(F) a description of how the State will, as appropriate- encourage development by public water systems of asset management plans that include best practices for asset management; and assist, including through the provision of technical assistance, public water systems in training operators or other relevant and appropriate persons in implementing such asset management plans. Areas the Act did not provide clarity on: • The Act did not define asset management. • The Act did not set a time frame when the strategy need to be updated. • The Act does not specify the level (if any) of stakeholder involvement necessary for strategy revisions. Challenges: Some states require rulemaking to update Cap Dev Strategies

  17. 1 Current State of Assets 2 Level of Service Asset Management 3 CriticalAssets 5 Long-term Funding Plan 4 Minimum Life Cycle Cost The 5 Core QuestionsAn Asset Management Framework Asset Inventory Spreadsheet Tool • Rate-setting dashboards • Asset Management Plan Requirements • Customer Service Training Class • Asset Management Plan Requirements • Capital Improvement Plan • Sanitary Survey – O&M questions Asset Inventory Spreadsheet Tool

  18. AWIA – Asset Management • AWIA did not define Asset Management • Working with AWWA to form workgroup • Documents to Update: • Handbook for Capacity Development: Developing Water System Capacity Under the SDWA guidance • Report Criteria for Annual State Capacity Development Program Implementation Reports Memo • Implementation of Capacity Development & Drinking Water State Revolving Fund Programs to Reflect AWIA Sec 2012 Memo • 2020 Governors Report Suggested Reporting Content Development of State Capacity Development Program Reports to the Governor Memo

  19. Consumer Confidence ReportProject leads: Sarah BradburyEddy Viveiros

  20. AWIA – Consumer Confidence Report Revisions • AWIA has directed EPA to revise aspects of the content, form, and manner of delivery in the consumer confidence reports (CCRs). • The statutory deadline for the revisions is October 2020. • Delivery: • CCR Reports must be provided twice per year for CWS serving > 10,000 customers. •  Codify electronic delivery options consistent with the EPA 2013 CCR Delivery Options memo: • PWSs opting to do electronic delivery of the CCR must: Include a direct URL on the bill, newsletter, postcard, etc. • PWS must provide option for receiving paper copy. SDWA CCR Rule Delivery Options memo (2013): https://www.epa.gov/ccr/how-water-utilities-can-electronically-delivery-their-ccr

  21. AWIA - Consumer Confidence Report Revisions • Content: • Include additional information related to the Lead and Copper Rule - • Corrosion control efforts of the CWS • Current requirements: provide information on violations related to LCR treatment technique requirements, corrosion control and lead service line replacement [40 CFR 141.153(f)(3)] • Identification of any action level exceedances for which corrective actions were required by the primacy agency for the monitoring period covered by the CCR. • Revise the CCR rule to increase readability, clarity, and understandability of the reports • Revise the CCR rule to increase the accuracy of information and risk communication in the reports • EPA must consult with PWSs, environmental groups, public interest groups, risk communication experts, the States, and other interested parties during the revisions.

  22. AWIA- Restructuring RulemakingProject Leads: Will BowmanBrooke Porter

  23. AWIA – Restructuring Rule • Sections 2009 and 2010 • amended SDWA 1414(h) to incentivize restructuring, including consolidation. • AWIA mandates that EPA promulgate a rule by October 2020 • amended SDWA 1413(a) and 1413(b) to redefine primacy and basis of EPA primacy approval • states must now update primacy for mandatory restructuring assessment authority. • Effectively creates a National Restructuring Assessment Program • No statutory “triggers” for primacy agencies to mandate assessments • No mandated restructuring, including consolidation

  24. AWIA – Summary of Changes to SDWA 1414(h) After Before • 4th type of restructuring plan under 1414(h)(1): contract for managerial or administrative functions • Defines who can perform an assessment (state, EPA, approved 3rd party, or self-assessment) • Requires tailoring but offers open-ended definition • Assessments eligible for DWSRF Funding • Adds liability protection for “non-responsible system” • EPA must write a regulation for all of 1414(h), including enforcement relief • 3 kinds of restructuring plan under 1414(h)(1) • Physical consolidation • Managerial consolidation • Transfer of ownership • Enforcement relief for violations identified in a primacy agency-approved plan • No EPA regulations for enforcement relief under approved restructuring plans as defined under 1414(h)(2)

  25. AWIA - Key Terms and Concepts for the Rulemaking • Tailoring a Mandatory Assessment • Size, type and “other characteristics” of the assessed PWS • Ensuring a Mandatory Assessment is “Not Overly Burdensome” • Not defined in the SDWA • Protection of Non-responsible System • Applicability – eligible violations, penalties, calculations • Enforcement Relief under Approved Restructuring Plans • Applicability • Relationship to non-responsible system liability protection • Mandatory AssessmentRelationship to Restructuring Plan • When must a plan be based on an assessment? • When is a plan effectively mandatory?

  26. Potential Candidates for Mandatory Assessment • Serve <1,000 individuals • System currently active • HB violation (MCL or TT) began after 1/1/2016 • System had a HB violation in 3 out of 4 quarters (274 days) of each year (2016-2018 time frame)

  27. Discussion and Q/A

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