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HomeMy WebLinkAbout10. Update on pending legislative matters and potential ballot propositions Page 1 of 48 Item 10. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: MARCH 15, 2018 SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERS AND POTENTIAL BALLOT PROPOSITIONSAND PROVIDE DIRECTION ON PRIORITY LEGISLATION SUBMITTED BY: INITIATING DEPARTMENT: EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION-COMM SVCS AND INTERGOVERNMENTAL RELATIONS INTERGOV REL MANAGER Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to staff on positions related to priority legislation. The 2018 legislative session is underway, and staff is seeking Board direction on pending priority legislation. BACKGROUND Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special significance to the Board, the General Manager will present information to the Board on priority legislation. The Board may then provide direction as to Central San's position on the legislation. Staff has reviewed pending legislation and worked with member associations to identify possible direct impacts on Central San. The process to create and pass legislation is constantly in flux; the priority March 15, 2018 Regular Board Meeting Agenda Packet- Page 151 of 275 Page 2 of 48 legislation presented in this Position Paper represents the most confident analysis and due diligence research at this time. As new information becomes available, it will be presented at future Board meetings. Attached is an updated Priority Legislative Tracking Sheet and other attachments of interest. At this meeting, staff is recommending that the Board take action or provide direction on the priority legislation listed on the Priority Legislative Tracking Sheet based on staff recommendations listed in the Board Legislative Summary Table. ALTERNATIVES/CONSIDERATIONS The Board may choose from the following positions on each piece of legislation: • Support • Support if Amended • Neutral • Oppose Unless Amended • Oppose. FINANCIAL IMPACTS None. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Take one of the following actions on Priority Legislative Tracking Sheet Items Numbers 1 - 6: 1) Adopt staff recommended position(s) on the priority legislation; or 2) Adopt a different position on one or more pieces of the priority legislation; or 3) Take no action. Strategic Plan re-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Foster Customer Engagement and Awareness ATTACHMENTS: 1. 2018 Central San Priority Legislation Tracking Sheet as of 3-7-18 2. WateReuse Multi-agency Letter Opposing Cuts to Title XVI Water Reuse Program 3. WateReuse Agency Template Letter Opposing Title XVI cuts 4. CASA Washington DC Conference Program 5. CASA SRF Support Letter to Senator Feinstein 1-29-18 6. President's Legislative Outline for Rebuilding Infrastructure in America 7. American Society of Civil Engineers 2017 Infrastructure Report Card (permission to share obtained by ASCE) March 15, 2018 Regular Board Meeting Agenda Packet- Page 152 of 275 Page 3 of 48 Central San 2018 Priority Legislative Tracking Sheet as of 3/7/2018 Federal/ Also Known Industry Position Date of Board Author Legislation Summary Or anization s PriorityRecommended by Board Notes State As ListlPosition Staff Direction Decision 1 Federal President President's Protect Cuts to The President's FY19 budget request WateReuse - oppose 03/15/18 3/6/18 - Call to action received by WateReuse to FY19 budget Title XVI and included an over 90% cut to the Bureau of cuts sign onto WateReuse multiagency letter by COB request Increase Reclamation's Title XVI water reuse program March 12. WateReuse Association is asking funding for from $34.5M in FY17 to $3M. Title XVI is the Congress to reject these cuts and provide at least WaterSMART only federal program that specifically level funding for Title XVI in FY19. Letter deadline and Title XVI supports water recycling efforts. The for House is March 16 and Senate is March 30. programs program has invested $692 million in direct federal spending while leveraging at least an additional $2.07 billion of local investment to provide a sustainable long-term reliable supply of water for residents and businesses in the West. 2 Federal Napolitano (D- H. R. 5127 Water Establishes a grant program for the funding Western Recycled Water Support 03/15/18 Introduced on 2/27/18. In both House Committee 32) Los Angeles Recycling of water recycling and reuse projects. Coalition - Support, on Natural Resources and Committee on area Investment WateReuse - Support Transportation and Infrastructure and Improvement Act 3 Federal Katko (R-NY 24) H. R. 4902 Drinking Water Amends the Water Infrastructure Finance (CASA - Support Support 03/15/18 11/31/18 Introduced and in House Committee on and Clean and Innovation Act of 2014; provides to state Transportation & Infrastructure: Referred to Water Loans infrastructure financing authorities additional Subcommittee on Water Resources and opportunities to receive loans under that Act Environment. to support drinking water and clean water state revolving funds to deliver water infrastructure to communities across the United States. I 4 Federal Boozman (R- S. 2364 Drinking Water Amends the Water Infrastructure Finance CASA - Support Support 03/15/18 1/30/18 Introduced in Senate Committee on AR), Co-Author (Identical bill to and Clean and Innovation Act of 2014; provides to state Environment and Public Works Feinstein (D-CA) H.R. 4902) Water Loans infrastructure financing authorities additional opportunities to receive loans under that Act to support drinking water and clean water state revolving funds to deliver water infrastructure to communities across the United States. March 15, 2018 Regular Board Meeting Agenda Packet- Page 153 of 275 Page 4 of 48 Central San 2018 Priority Legislative Tracking Sheet as of 3/7/2018 5 State Wieckowski SB 831 ADUs update Would prohibit the imposition of any fees, CASA - recommending 03/15/18 CASA will discuss further at 3/16 Legislative including connection or capacity fees, for the Oppose meeting. CASA concerns: Eliminating fee authority construction of an accessory dwelling unit. for one particular type of residential construction is The bill is attached for your review. contrary to our obligations to assess proportional fees under Propositions 218 and 26. It could lead to one class of ratepayers subsidizing rates for another class, which is prohibited by Prop 218. Finally, CASA believes that there has not been sufficient time to evaluate the impact of the fee restrictions agreed to in SB 1069 in 2016 and SB 229 in 2017. For special districts, the new ADU fee restrictions have only been in effect for 2 months. 6 State Bloom AB 2379 Waste Requires that clothing made from fabric that Californians Against Support 03/15/18 Some BAPPG members suggesting support. Management: is more than a specified percentage of Waste - Support 2/14/18 introduced. Polyester polyester bear a conspicuous label stating Microfiber that the garment sheds plastic microfibers when washed and recommending hand washing. Prohibits a person from selling or offering for sale clothing made from fabric that is more than a specified percentage polyester that does not bear that label. March 15, 2018 Regular Board Meeting Agenda Packet- Page 154 of 275 Page 5 of 48 Central San 2018 Priority legislative Tracking Sheet as of 3/7/2018 7 State Chiu AB 3037 Community Would establish a new version of redevelopment CSDA -Watch Watch AB 1792 Fraiser spot bill is similar Redevelopmen agencies (re-termed redevelopment housing and t Law of 2018 infrastructure agencies). 1. Uses the Enhanced Infrastructure Financing District(EIFD) law as a model in many ways; however, like former RDAs,the new redevelopment housing and infrastructure agencies do not require voter approval and they are able to access the school/State share of the property tax increment. Their access to the school/State share of the property tax increment requires approval from the California Department of Finance and will be capped at a yet-to-be-determined amount. 2. As with EIFDs, each affected taxing entity(each special district and typically the county) within the jurisdiction of the redevelopment agency would be given one seat on the board of the redevelopment agency;the city creating the agency would have two seats total;there would also be two public seats., 3. Similar to EIFDs and former RDAs, the proposed redevelopment housing and infrastructure agencies would require a certain percentage of all revenue to go toward affordable housing projects. The current draft requires 30 percent,which is more than what EIFDs and former RDAs were required to set aside. 4. Unlike former RDAs,the stated intent is to keep affected taxing entities (special districts and counties)"whole"in terms of property tax revenue. The bill attempts to achieve this by establishing a"passthrough" equivalent to the amount of property tax increment diverted from the county and special districts. The passthrough is primarily funded with ERAF dollars. March 15, 2018 Regular Board Meeting Agenda Packet- Page 155 of 275 Page 6 of 48 March XX, 2018 The Honorable Lamar Alexander The Honorable Dianne Feinstein Chairman Ranking Member Subcommittee Appropriations on Energy and Subcommittee Appropriations on Energy and Water Development Water Development U.S. Senate U.S. Senate 184 Dirksen Senate Office Building 188 Dirksen Senate Office Building Washington, D.C. 20510 Washington, D.C. 20510 The Honorable Mike Simpson The Honorable Marcy Kaptur Chairman Ranking Member Subcommittee Appropriations on Energy and Subcommittee Appropriations on Energy and Water Development, and Related Agencies Water Development, and Related Agencies U.S. House of Representatives U.S. House of Representatives 2362-B Rayburn House Office Building 2362-B Rayburn House Office Building Washington, DC 20515 Washington, DC 20515 Dear Chairman Alexander, Ranking Member Feinstein, Chairman Simpson, and Ranking Member Kaptur: As stakeholders representing utilities and other entities that provide clean and safe water daily to American households, businesses and institutions, we urge you to reject any proposed spending cut to the Bureau of Reclamation's (BOR)Title XVI water recycling program in the Fiscal Year(FY) 2019 budget for the U.S. Department of Interior. Water recycling is a reliable and critical tool that communities throughout the arid West are using to meet their water supply needs. It is critical that Congress remains a partner by funding the only federal funding program specifically designed to support municipal water reuse projects. The BOR's Title XVI water recycling program is a highly successful federal cost-share program that since 1992 has invested $692 million in direct spending while leveraging at least an additional $2.07 billion of local investment to provide a sustainable long-term reliable supply of water for residents and businesses. Currently,seventeen communities in Arizona, California, Kansas, Nevada, Oklahoma, and Texas facing serious water challenges have been approved to receive nearly$270 million in Title XVI funding to help them complete critical water recycling projects. In addition to these authorized projects, 41 newly approved water reuse projects are also eligible for Title XVI funding due to program revisions Congress enacted in the 2016 Water Infrastructure Improvements for the Nation (WIIN)Act. If Congress does not reject the Administration's drastic cuts to the program, ratepayers in these communities could face significant increases in project costs and an increased risk of inadequate water supply. Recycled water is a drought-proof, secure source of water that provides potable and non-potable water for residential, commercial, agriculture and industrial customers. For regions experiencing water quality and water quantity challenges, beneficially reusing water rather than discharging it helps communities improve surface and groundwater quality, optimize freshwater sources for drinking water supply, create opportunity for agriculture, and provide for environmental resiliency while ensuring continued March 15, 2018 Regular Board Meeting Agenda Packet- Page 156 of 275 Page 7 of 48 economic growth. For example,the State of Idaho,which has been permitting water recycling facilities since 1989, recycles more than 6 billion gallons of water annually, 75%of which is used by agricultural operations for irrigation and food processing. Idaho's agricultural industry contributes an average of$27 billion annually to the State's economy. Further, Idaho's adoption of water recycling practices has prevented over 2,000 tons of nitrogen and 500 tons of phosphorus from being discharged into the State's pristine waters. According to a 2015 municipal wastewater recycling survey, California, which recently emerged from a 10-year drought and potentially facing another extended period of drought, recycles over 230 billion gallons of water annually meeting potable and non-potable water supply needs—and Title XVI has been critical to this effort. For example,Title XVI provided $20 million in initial support for the Orange County Water District's Groundwater Replenishment System (GRWS),the world's largest potable water reuse facility. Since it began operation a decade ago, GRWS has supplied more than 245 billion gallons of ultra- pure water and by 2023 it will supply enough potable water for 1 million people daily. However, California continues to discharge over 1.3 trillion gallons of treated wastewater every year representing the significant potential to increase the use of water recycling as a reliable source of water for the state. Many other states in the West are also engaging in significant water recycling efforts through support from Title XVI. For example, in BOR's Oklahoma-Kansas-Texas region, 19 water recycling construction projects, feasibility and research studies totaling$5.8 million were funded by Title XVI during the previous seven years. Water recycling is critical for communities throughout the West to ensure a safe and sustainable supply of water and Title XVI is key to their efforts. We urge you to reject the Administration's Budget Request and provide at least level funding at FY18 levels for the Title XVI program. Sincerely, WateReuse Association March 15, 2018 Regular Board Meeting Agenda Packet- Page 157 of 275 Page 8 of 48 March XX,2018 The Honorable[YOUR MEMBER NAME] U.S.House of Representatives/U.S.Senate Member Office(Eg:1201 Rayburn House Office Building) Washington,DC 20515/20510 Dear Representative/Senator[NAME}: As a municipal utility that provides essential clean and safe water services daily to your constituents,we urge you to reject any proposed spending cut to the Bureau of Reclamation's(BOR)Title XVI water recycling program in the Fiscal Year(FY)2019 budget for the U.S.Department of Interior.Water recycling is a critical tool that the[Utility Name]utilizes to meet our community's water supply needs.It is critical that Congress remains a partner in supporting communities like us by funding the only federal funding program specifically designed to support municipal water reuse projects. The BOR's Title XVI water recycling program is a highly successful federal cost-share program that since 1992 has invested$692 million in direct spending while leveraging at least an additional$2.07 billion of local investment to provide a sustainable long-term reliable supply of water for residents and businesses.Currently,seventeen communities in Arizona,California,Kansas,Nevada,Oklahoma,and Texas facing serious water challenges have been approved to receive nearly$270 million in Title XVI funding to help them complete critical water recycling projects.In addition to these authorized projects, 41 newly approved water reuse projects are also eligible for Title XVI funding due to program revisions Congress enacted in the 2016 Water Infrastructure Improvements for the Nation(WIIN)Act. If Congress does not reject the Administration's drastic cuts to the program,ratepayers in these communities could face significant increases in project costs and an increased risk of inadequate water supply. [If your utility has one of these authorized projects,please edit to talk about it] Recycled water is a drought-proof,secure source of water that provides potable and non-potable water for residential,commercial,agriculture and industrial customers.For regions experiencing water quality and water quantity challenges,beneficially reusing wastewater rather than discharging it helps communities improve surface and groundwater quality,optimize freshwater sources for drinking water supply,and ensure continued economic growth. For example,[PERSONALIZE:Tell your community's story and about your water reuse project.Fill in with water recycling needs and statistics of your community/state;the types,number,and total$amounts of title xvi projects and studies funded in your district/state,etc.] (According to a 2015 municipal wastewater recycling survey,California,which recently emerged from a 10-year drought and potentially facing another extended period of drought,recycles over 230 billion gallons of water annually meeting potable and non-potable water supply needs—and Title XVI has been critical to this effort. For example,Title XVI provided$20 million in initial support for the Orange County Water District's Groundwater Replenishment System(GRWS),the world's largest potable water reuse facility.Since it began operation a decade ago,GRWS has supplied more than 245 billion gallons of ultra- pure water and by 2023 it will supply enough potable water for 1 million people daily. However, March 15, 2018 Regular Board Meeting Agenda Packet- Page 158 of 275 Page 9 of 48 California continues to discharge over 1.3 trillion gallons of treated wastewater every year representing the significant potential to increase the use of water recycling as a reliable source of water for the state. Many other states in the West are also engaging in significant water recycling efforts through support from Title XVI. For example,in BOR's Oklahoma-Kansas-Texas region,19 water recycling construction projects,feasibility and research studies totaling$5.8 million were funded by Title XVI during the previous Seven years.L / Commented[AK1]:Included in case useful for CA utilities —please use if helpful;remove if not Water recycling is critical for communities throughout the West including[YOUR COMMUNITY]to ensure a safe and sustainable supply of water and Title XVI is key to our efforts. We urge you to reject the Administration's Budget Request and provide at least level funding at FY18 levels for the Title XVI program. Sincerely, March 15, 2018 Regular Board Meeting Agenda Packet- Page 159 of 275 Page 10 of 48 PROGRAM GUIDE w - JS,�" x .!" �sti. �rr .t I -v n�E'.. - �"L -r `�i] 9 7 •, � 5 y t�5�r•� �....J C 1^ Sy�- .( X.e�wl:> li .� !1 14��I � a' r 1. 17,y � .{ �b Y � n o> r A � ""� � }-r^� Kj �:?`'r -.w 3. r �+. r ;1, ,� r• ; .,y�v �x s A{, E� Y Y i - �. s 4 � J The St. 5 Regis • • D.C. 923 1 6th • • K Streets, N.W. Washington, www.casaweb.org d Meeting Agenda Packet- Page 160 of 275 Page 11 of 48 WASHINGTON DC POLICY FORUM CASA -28, 2018 i FEBRUARY WASHINGTON,THE ST REGIS , Astor Ballroom, Lobby 8:30 — 9:15 a.m. Breakfast Location:Salon Room 9:15 — 9:30 a.m. Welcome and Introductions President Paul Bushee, presiding 9:30 — 10:15 a.m. Opening Address Norman Ornstein,Scholar,American Enterprise Institute 10:15 — 11:45 a.m. Congressional Outlook: Infrastructure Policymaking (Closed to members of the media) Moderator. Jim Colston, Orange County Sanitation District • Joe Brown, Professional Staff, Committee on Environment and Public Works, U.S. Senate • Camille Calimlim Touton, Professional Staff, Committee on Energy and Natural Resources • Mike Brain, Counsel, Committee on Transportation & Infrastructure, U.S. House of Representatives • Jonathan Pawlow, Counsel, Subcommittee on Water Resources and Environment, Committee on Transportation and Infrastructure, U.S. House of Representatives 11:45 — 12:15 p.m. Break 12:15 — 1:45 p.m. Luncheon Director Tim Becker, presiding Speaker: Edward-Isaac Dovere, Chief Washington Correspondent, Politico March 15, 2018 Regular Board Meeting Agenda Packet- Page 161 of 275 Page 12 of 48 CASA Monday, - . . • 11 11 . (continued) A • ••m, Lobby Level 1:45 — 3:00 p.m. U.S. EPA Environmental Actions and Administration Infrastructure Initiatives Moderator. Traci Minamide, City of Los Angeles, LA San • Andrew Sawyers, Director, Office of Wastewater Management, USEPA • Deborah Nagle, Director, Office of Science and Technology • Adam Krantz, Chief Executive Officer, NACWA • Mary Grant, Campaign Director, Public Water for All 3:00 — 3:45 p.m. Infrastructure Initiatives for 2018: 5:00 — 6:00 p.m. Networking Session/Dinner on your own 8.30 — 9.00 a.m. Breakfast 9:00 — 9:30 a.m. The Honorable Alan Lowenthal 9.30 — 10:30 a.m. Group Preparation for Capitol Hill Visits 11.00 — 5:00 p.m. Capitol Hill Congressional Visits 6:00 — 8:00 p.m. California Water Congressional Reception Location: U.S. Botanic Garden Conservatory Hosted by. CASA and ACWA March 15, 2018 Regular Board Meeting Agenda Packet- Page 162 of 275 Page 13 of 48 CASA AstorBallroom, •b• • 8:00 — 9:00 a.m. Closing Breakfast 9:00 — 11:00 a.m. Joint Session ACWA and CASA Opening Presentation The Honorable Dianne Feinstein (Invited) Political Prognostications: What does the crystal ball hold for 2018 elections? • John Ashford, The Hawthorn Group, L.C. 11:00 a.m. Adjourn t U.S.CAPITOL MAP __ • _ O Russell Senate Office Building Q Cannon House Office Building © Dirksen Senate Office Building 0 Longworth House Office Buildin © Hart senate office Building (D Rayburn House Office Building O Supreme court of the United States Ford House Office Building r 8 Jefferson Building:Library of Congress ® O'Neill House Office Building .rr 8 Adams Building:Library of Congress ® U.S.Botanic Garden t r 0 Madison Building:Library of Congress ® Capitol Visitor Center ° IMI • �✓�� _FUni� qui F •' t i1111Y ..� - � _. •, , it.. mrra► / / �••••• � ' «rr««rr« �rrrrm �••Y1 _ , .: - rr«rrrr«r«r«rrrrr OPP K=r�'i n u n l` •• !I�!CfRC fI!►fl!!l '-• -• - Orr rrrr 1 l ..t1 a rtrrt r'fr�ru � , ►�� y►�Yt Yltlt tII1MMl ��� - .,.,,.. lt/ ►11111►ltlll ltllllt IIL - eo 71, Support 1 1Reform1Streamlining Initiatives CASA supports reasonal5le regulatory reform and streamlining that wi improve implementation o federal environmental laws. BACKGROUND AND ISSUE STATEMENT California's wastewater agencies must frequently obtain a myriad of permits from federal agencies, including but not limited to the USEPA, U.S. Fish and Wildlife Service,and the U.S. Army Corps of Engineers.These permits cover construction activities,water quality compliance,environmental mitigation,air quality considerations,and endangered species protection.The often disjointed and unpredictable manner in which permits are administered by federal agencies can be problematic or local wastewater projects,and the associated delays,slow turnaround times,and unreasonable mitigation requirements can delay necessary infrastructure projects by months or even years. SOLUTION CASA has several specific suggestions for regulatory reform and streamlining efforts that could be included as part of an infrastructure package. Many of these were included in the Trump Administration's recent infrastructure proposal.These suggestions align with many of the goals that have been highlighted by the Administration and Congress for consideration in a future infrastructure package, including: • Expediting the federal permitting process for local agencies engaging in necessary infrastructure upgrades and other projects designed to protect public health and safety. • Mandating inclusion of realistic cost-benefit analyses and net environmental benefit considerations when mitigation requirements are part of the permit approval process. • Pursuing the concept of"one federal decision,"where agencies collaborate on permitting for a single project to ensure permitting is streamlined and centralized,and the development of a more holistic or"one-stop-shop" permitting approach. • Modernizing the federal agency permitting process through an efficient online application process for most permits,online appointments for consultations with agency staff,and an online submittal portal for reports. ACTION Congress should seek to incorporate many of the above regulatory reform and streamlining suggestions in an infrastructure package. i California Association of Sanitation Agencies • 916.446.0388 • www.casaweb.or • 2018 March 15, 2018 Regular Board Meeting Agenda Packet- Page 164 of 275 Cf _ CASA supports the extension of National Pollutant Discharge Elimination System (NPDES) permit terms from five to ten years.This change would significantly benefit local public agencies by allowing for enhanced planning and efficient permitting of facilities and,give agencies the time needed to comply with existing regulatory requirements before imposition of new mandates.The Trump Administration's recent infrastructure proposal calls for extending NPDES permit terms from 5 to 15 years,a concept which CASA fully supports as a reasonable approach to reflect today's challenges and priorities for Clean Water Act compliance. BACKGROUND AND ISSUE STATEMENT Today's water quality needs require new ways of doing business and innovation in the way we achieve water quality improvements. NPDES permits are increasingly stringent,and the treatment technologies and approaches necessary to meet permit limits have become exceedingly expensive and time intensive to implement. Project construction timelines can extend more than a decade,as public agencies seek to implement massive clean water infrastructure projects.These improvements require extensive environmental review,as well as compliance with labor agreements,project design,scheduling,and technology acquisition. Given this reality, in many cases local public agencies have not yet completed the upgrades necessary to comply with their prior permit when they are hit with new terms and requirements. At the same time, it is widely understood that the nation's most challenging water quality problems do not derive from traditional point source discharges. The five-year renewal cycle also results in resource burdens on local agencies,USEPA and the state permitting authorities,which must prepare and issue the permits. SOLUTION Congress should update NPDES permit terms to reflect the realities of today. • Extended NPDES permit terms would allow for enhanced planning and efficient permitting of facilities. With this change,states could direct more resources to nonpoint and watershed-based solutions. • This change would benefit local public agencies,states and the public. Agencies would have adequate time to comply with existing regulatory requirements before imposition of new mandates. Agencies could better plan and more efficiently construct new technologies and facilities. States could direct more resources to nonpoint and watershed-based solutions. • Existing permit reopener provisions allow for new conditions to be inserted where needed to protect water quality prior to permit expiration. ACTION CASA encourages incorporation of the Trump Administration's proposal to extend NDPES permit terms as part of any forthcoming infrastructure package. In the alternative,we encourage introduction of an amendment to Clean Water Act Section 402(b)(1)(B) extending NPDES permit terms from five to ten years. California Association of Sanitation Agencies 916.446.0388 www.casaweb.org 2018 March 15, 2018 Regular Board Meeting Agenda Packet- Page 165 of 275 111 1 ' r CASA strongly supports the continued availability of direct federal assistance through grants and loans as a guiding principle in infrastructure policy discussions. Rebuilding our nation's water infrastructure requires a clear and ongoing commitment of federal assistance,coupled with the preservation of local financing tools and including the continued,unrestricted availability of municipal tax-exempt financing. Increasing investment in water and wastewater infrastructure is essential for public health,beneficial for the environment,and important to our economic future. BACKGROUND AND ISSUE STATEMENT USEPA estimates that America's water and wastewater infrastructure requires more than $650 billion worth of investment over the next 20 years just to maintain current levels of service. Other estimates place this figure at over$1 trillion. California alone faces$30 billion in new infrastructure needs. We have historically relied upon a robust federal partnership of direct assistance to meet these needs, but the last two decades have seen under investment by the federal government,even as federal mandates have increased demands on limited state and local budgets. SOLUTION Congress should pursue enhanced infrastructure funding in the form of new grant and loan programs for water and wastewater agencies and, preserve and enhance financing of the Clean Water State Revolving Loan Fund (SRF) program.The SRF program is one of the most important and effective clean water infrastructure financing tools available today and serves as the backbone of wastewater infrastructure financing. • CASA supports funding the existing Water Infrastructure Finance and Innovation Act(WIFIA) program.We also support a larger state-focused WIFIA program that could be leveraged to help address clean water project backlogs,provided the SRF program is not adversely impacted and is funded at no less than FY 2018 levels. • CASA supports other sources of funding to address the problems faced by California and the arid west,including climate resiliency funding,water recycling funding through Title XVI,and funding for the use of biosolids to restore fire-ravaged lands. Investing in water and wastewater infrastructure creates jobs and supports the economy. Studies show that the US economy would gain $220 billion in annual economic activity and 1.3 million jobs over a 10- year period by meeting its water and wastewater infrastructure needs.' ACTION CASA urges passage of a federal infrastructure policy and funding package that increases direct federal support to local communities through the SRF program,and funds other existing and new important programs including WIFIA. 'Source: The Economic Benefits of Investing in Water Infrastructure,the Value of Water Campaign(2017) r. California Association of Sanitation Agencies • 916.446.0388 • www.casaweb.org • 2018 March 15, 2018 Regular Board Meeting Agenda Packet- Page 166 of 275 Page 17 of 48 rJ SA CALIFORNIA ASSOCIATION of SANITATION AGENCIES 1225 81"Street,Suite 595•Sacramento,CA 95814•TEL: (916)446-0388•www.casaweb.org January 30, 2018 The Honorable Dianne Feinstein U.S. Senate Washington, DC 20510 Dear Senator Feinstein: The California Association of Sanitation Agencies (CASA) supports your efforts to bridge the construction funding gap for publicly owned clean water infrastructure projects. As the leading voice for California's public wastewater agencies, CASA wants to ensure that Congress is dedicated to maintaining a robust federal partnership under the Clean Water State Revolving Loan Fund (CWSRF) Program and to ensure that any new programs of assistance do not disadvantage this vital program. It is our understanding, from your staff, that bipartisan legislation might be introduced that would establish a new water infrastructure program to provide direct assistance to states that could be leveraged, in a manner consistent with the existing WIFIA program, to help address clean water project backlogs within individual states. California has a significant backlog of clean water projects, and existing CWSRF financial resources are inadequate to address these needs. Our preference would be for increased direct grant funding to the Clean Water SRF program. However, provided the SRF program would not be adversely impacted by a new source of revenue to the states, and that the CWSRF would be fully funded at not less than fiscal year 2018 levels, an approach like the one contemplated in the draft proposal holds promise. The State of California currently has approximately $2 billion in completed project applications awaiting funding under the CWSRF program and another $5.6 billion in projects under development that will need funding. We understand that the proposed legislation envisions providing states with funding assistance that could be leveraged using U.S. Treasury-rated bonds. It is important that this legislation provide California with a sufficient share of any appropriated assistance to construct up to $7 billion in clean water infrastructure projects. This amount is vital to address our population and overwhelming project needs. As you and your colleagues consider legislative options to help address the substantial funding need within the water sector, we look forward to working with you to advance a balanced and effective investment in water infrastructure. Sincerely, Adam D. Link Director of Government Affairs March 15, 2018 Regular Board Meeting Agenda Packet- Page 167 of 275 Page 18 of 48 y1 �QWRIBUSUNUM yT T Ty T YY� T V y Legislative Outline for Rebuilding Infrastructure in America THE WHITE HOUSE March 15, 2018 Regular Board Meeting Agenda Packet- Page 168 of 275 Page 19 of 48 Water Infrastructure Sections March 15, 2018 Regular Board Meeting Agenda Packet- Page 169 of 275 Page 20 of 48 • This oversight sometimes causes delays in sponsors receiving funds assigned to their airports. • Revising the statutory requirements for AIP to shift FAA oversight from grant applications to post-expenditure audits would expedite conveyance of funds to sponsors. II.WATER INFRASTRUCTURE The below water infrastructure provisions would incentivize the development of effective and efficient water infrastructure, outcome-based procurement, and full life-cycle asset management to improve water infrastructure. These changes would provide greater flexibilities for USACE and its non-Federal partners to use available Federal and non-Federal funds, generate new revenues and retain certain revenues in support of project requirements, make greater use of contributed funds, and allow for innovative use of contracting tools. A. Financing 1. Authorize Clean Water Revolving Fund for Privately Owned Public-purpose Treatment Works • Current law allows the DWSRF to lend to private owners. However, the Clean Water State Revolving Fund(CWSRF) is generally restricted to publicly owned wastewater projects. • Privately owned public-purpose treatment works are not eligible for CWSRF funding at the Federal level. • Authorizing the CWSRF(33 U.S.C. 1383) to provide financial assistance to publicly owned and privately owned public-purpose treatment works would make more funding available for treatment works. 2. Provide New Flexibility for Water Projects with De Minimis Federal Share • Under current law, even when a State or private sector entity provides the majority of the funding for a project, a project must still obtain review and approval under the laws of any Federal agency with jurisdiction. • The additional procedures, costs, and time delays associated with Federal requirements discourage infrastructure investments by State and local entities and private investors. These legal restrictions also contribute to delays in delivering needed projects even when the Federal interest is small. • Amending the law to provide targeted flexibility pertaining to the application of Federal requirements where the project funding is primarily non-Federal and the Federal share is minimal would increase investments in water infrastructure and reduce project delays and costs. B. Water Programs 2'7 March 15, 2018 Regular Board Meeting Agenda Packet- Page 170 of 275 Page 21 of 48 1. Provide EPA Infrastructure Programs with "SEP-15"Authorizing Language • Currently, the EPA Administrator has limited authority to test and experiment within its programs. • This limits the EPA's ability to explore new approaches that might increase project management flexibility, increase innovation, improve efficiency, assure timely project implementation, and develop new revenue streams. • Providing the EPA Administrator authority(similar to 23 U.S.C. 502) to encourage tests and experimentation in the water projects development process to permit the Administrator to explore alternative and innovative approaches to the overall project development process and to develop more effective approaches to project planning, project development, finance, design, construction, maintenance, and operations. 2. Apply Identical Regulatory Requirements to Privately Owned Public-purpose Treatment Works and Publicly Owned Treatment Works • Currently, different requirements may apply to privately versus publicly owned treatment works. • This creates an unnecessary market distortion that puts private treatment works under more stringent and costly regulatory requirements than public sector equivalents, despite both serving public communities. • Modifying the Clean Water Act to ensure identical requirements apply to privately owned public-purpose treatment works and privately owned treatment works would provide a level playing field for all service providers. C. Inland Waterways 1. Expand Authority Related to Non-Federal Construction and Operation of Inland Waterways Projects • Currently, Congress individually authorizes inland waterways projects to be constructed, maintained and operated by USACE. Only USACE is authorized to use funds appropriated from the Inland Waterways Trust Fund (IWTF) or from the General Fund (GF) of the Treasury for construction, repair, rehabilitation, maintenance, and operation of inland waterways projects. Fuel taxes paid by commercial users of the inland waterway system contribute to the IWTF,which pays for 50 percent of construction and major rehabilitation on the system, with the rest coming from the General Fund; once completed, project maintenance and operations are entirely paid for from the General Fund. • This means that only USACE can perform construction and operations, even if there is a less costly alternative. In addition, this constrains projects to USACE operational capacity limits,which has resulted in a backlog of projects and deferred maintenance, lower operational effectiveness, and increased down time of waterway assets. 28 March 15, 2018 Regular Board Meeting Agenda Packet- Page 171 of 275 Page 22 of 48 • Authorizing the Secretary of the Army to execute agreements with non-Federal public or private entities to use IWTF and GF funds for construction, repair, rehabilitation, maintenance and operation activities, and the ability to enter into third party contracts, concessions, and operating agreements,would enable greater innovation and efficiency by allowing non-Federal entities a greater role in performing work on these projects. D. Water Infrastructure Resources 1. Authorize User Fee Collection and Retention under the WRRDA Section 5014 Pilot Program and Recreation User Fees for Operation and Maintenance of Public Facilities • Currently, neither the Federal Government nor non-Federal service providers have authority to impose user fees under the water infrastructure pilot program authorized under Section 5014 of the Water Resources Reform and Development Act (WRRDA) of 2014. When user fees are permitted, they are sent to Treasury once collected, not returned to operate and maintain the site from which they were generated. • Without a dedicated revenue source, innovative partnerships are nearly impossible to execute because third parties would be subject to appropriation risk. This risk makes transactions uneconomical and highly unlikely to close. Aging infrastructure at USACE-managed recreation sites is in need of significant repair and rehabilitation, and annual USACE appropriations have not been sufficient to address long-term operation and maintenance needs and safety concerns. • Authorizing the Federal Government and third party service providers to impose and retain fees under WRRDA to use or defray costs associated with carrying out a project would enable effective infrastructure partnerships. This proposal would limit application to no more than ten projects and would specify that the respective non-Federal interests indemnify and hold the Federal Government harmless as a result of non-Federal actions, including that the Federal Government assumes no responsibility for costs of said non- Federal actions. Amending the law(16 U.S.C. 46od-3) to provide USACE the authority to retain recreation user fees generated at USACE-managed recreation sites and facilities would enable USACE to address the backlog of infrastructure, public safety and visitor use management needs at sites where user fees are collected. 2. Expand U.S.Army Corps of Engineers'Authority to Engage in Long-term Contracts • Current law generally restricts the award of multi-year contracts to a period of no more than five years. • Infrastructure asset contracts typically are much longer than five years, and therefore the cost and risk associated with five-year contracts creates a cost and resource prohibitive barrier to successful transactions. 29 March 15, 2018 Regular Board Meeting Agenda Packet- Page 172 of 275 Page 23 of 48 • Extending the contract period to allow the Secretary of the Army to enter into contracts for a period up to 50 years would enable USACE to enter into long- term contracts that encompass the full life-cycle management of infrastructure assets in the program (Section 5014 of WRRDA). This amendment would specify that the respective non-Federal interests indemnify and hold the Federal Government harmless as a result of non-Federal actions, including that the Federal Government assumes no responsibility for costs of said non- Federal actions. 3. Authorize Commercial Operation and Maintenance Activities at Hydropower Facilities • Current law defines operation and maintenance activities at hydropower facilities undertaken by Civil Works personnel as of the date of enactment of the Water Resources Development Act of 19 go as inherently governmental and not commercial activities. (Section 314 of the Water Resources Development Act Of 1990; 33 U.S.C. 2321). • This designation creates unnecessary bureaucracy and restricts open competition that leads to excess costs for operations that can easily be done at a lower cost and more efficiently. • Amending the law to restore the authority of the Secretary of the Army to determine whether operation and maintenance functions at hydropower facilities on USACE projects are commercial activities and appropriate for performance by non-Federal entities would increase the opportunity for open competition and lead to more efficient operations and maintenance. 4. Deauthorize Certain Federal Civil Works Projects • Currently, all USACE projects remain authorized in perpetuity. This includes completed projects that are under USACE control but are approaching the end of their service life, as well as projects that were built by USACE but are operated and maintained by non-Federal entities. Extensive regulatory and statutory compliance provisions apply to non-Federal sponsors associated with USACE projects, including Section 14 of the Rivers and Harbors Act of 1899, as amended (33 U.S.C. 408, commonly referred to as "Section 408"). . • These provisions can make local alterations to federally constructed projects expensive and difficult, as even simple modifications to a Federal project by an applicant trigger a Section 408 review,which increases the costs to both the Government and the applicant. • Amending the law to establish a streamlined deauthorization process that allows for those USACE projects approaching the end of their service life and for those projects operated and maintained by non-Federal interests that do not require Federal oversight would release Federal and non-Federal resources to be used for other purposes. 5. Expand Authority for Acceptance of Contributed and Advanced Funds 30 March 15, 2018 Regular Board Meeting Agenda Packet- Page 173 of 275 Page 24 of 48 • A non-Federal sponsor can provide non-Federal funds to the Federal Government through contributed and advanced funds, to advance investments in infrastructure. However, under current law, the process to accept contributed and advanced funds is protracted and limited by several factors. • Projects therefore suffer years of delay, unable to take full benefit of a willing sponsor to provide non-Federal funds. • Amending the law(33 U.S.C. 7o1h) to expand authority for the acceptance of contributed funds even if no Federal funds have been appropriated for the authorized project, changing individual notifications to an annual reporting requirement, and expanding applicability of advanced funds authority to all authorized water resources development studies and projects would increase non-Federal spending and expedite project execution. 6. Amend Water Resources Development Act to Allow for Waiver of Cost Limits • Current law provides a maximum total cost for congressionally authorized projects. • Projects that exceed the cost limitation (Section 902 of the Water Resources Development Act of 1986) require authorization by Congress to raise the maximum total project cost,which can add significant delays in delivering infrastructure projects. • Amending the law to allow the maximum total cost limitation to be waived upon the recommendation of the Secretary of the Army would provide flexibility to avoid delays in delivering infrastructure projects. III.VETERANS AFFAIRS The following provisions would provide flexibility to the Department of Veterans Affairs (VA) to use the value of its existing assets to provide our Nation's veterans the state-of-the-art facilities they deserve. The VA has a nationwide physical footprint that includes aging facilities. While the physical assets owned by the VA are growing outdated, the underlying property values continue to increase. A. Provide VA Real Property Flexibilities • Authorize VA to retain proceeds from sales of properties and exchange existing facilities for construction of new facilities. Under current law, the VA cannot retain the proceeds from sales of its properties, nor can the VA exchange its existing facilities for the construction of new facilities. This hinders the VA's ability to make needed capital improvements, including new construction and renovations. Authorizing the VA to retain proceeds from sales of its properties and exchange its existing facilities or land for new construction would provide the VA flexibility to better fulfill its mission, including making capital improvements for new construction and renovations and for funding lease or service costs in a facility. 31 March 15, 2018 Regular Board Meeting Agenda Packet- Page 174 of 275 Page 25 of 48 Regulatory Reform 0 Sections March 15, 2018 Regular Board Meeting Agenda Packet- Page 175 of 275 Page 26 of 48 C. Protecting Clean Water with Greater Efficiency 1. Eliminate Redundancy,Duplication, and Inconsistency in the Application of Clean Water Provisions These provisions would make the following reforms to create greater efficiencies in the application of clean water provisions: a. Authorize Federal agencies to select and use nationwide permits without additional USACE review. Currently, Federal agencies are required to submit permit applications to USACE for some projects that meet nationwide permit (NWP) requirements, including general and regional conditions. Federal agencies employ staff who are environmental experts and review these projects before submitting the application to determine whether they meet the criteria for the applicable NWP. Eliminating the additional USACE review and allowing Federal agencies to move forward on NWP projects, subject to permit conditions,would streamline the process and allow USACE to focus on projects that do not qualify for NWPs,which have greater environmental impacts. USACE would retain the right to reinitiate its review for any agency that it finds has incorrectly determined that NWP criteria were met. b. Consolidate authority to make jurisdictional determinations for 404 permits. Under current interpretation of the Clean Water Act, the EPA Administrator, not the Secretary of the Army, has final authority to construe the jurisdictional term "navigable waters" under Section 404 of the Clean Water Act. USACE has decades of experience and expertise in jurisdictional matters, providing the public approximately 59,000 written jurisdictional determinations per year. Establishing the Secretary of the Army's authority to make jurisdictional determinations under the Clean Water Act would eliminate duplication of work and streamline permit decisions. EPA and USACE would continue to coordinate on rulemaking to ensure consistency in the definition of "waters of the U.S." under the Clean Water Act and to reconcile differences in determinations under other sections of the Clean Water Act. C. Eliminate duplicative oversight by removing EPA's authority to veto a 404 permit under Section 404(c). The Secretary of the Army, acting through the Chief of Engineers, has authority to grant permits for the discharge of dredged or fill material under Section 404 of the Clean Water Act. EPA can exercise veto authority prior to, during, and after permit decisions. The threat of the veto creates significant uncertainty and delays permit decisions, because project proponents and USACE address perceived concerns to avoid elevation or veto. Removing EPA's authority to veto a 404 permit would make the permitting process more efficient and predictable. d. Allow use of one NEPA document for both Section 404 and Section 408 actions. Section 408 authorizes the Secretary of the Army to grant permission for the 42 March 15, 2018 Regular Board Meeting Agenda Packet- Page 176 of 275 Page 27 of 48 alteration, occupation, or use of a USACE civil works project if the activity will not be injurious to the public interest and will not impair the usefulness of the project(33 U.S.C. 408). To make this determination, Section 408 requires a very similar environmental review to the review required for a Section 404 permit. For actions where both Sections 404 and 408 apply, two independent environmental reviews are required, creating unnecessary duplication of work and delays in issuing permitting decisions. e. Eliminate duplication in environmental documentation for authorized USACE projects pursued by non-Federal interests. Under current law, if a non-Federal entity intends to implement an authorized USACE civil works project without an executed project partnership agreement, the non-Federal entity would need a permit from the Department of the Army prior to construction (33 U.S.C. 403 and 33 U.S.C. 1344)• To authorize the same civil works project, the USACE also would prepare an environmental review and compliance document. Allowing the non-Federal interest to use the completed USACE environmental compliance documentation and decision (e.g., ROD or FONSI) as the environmental review for the Federal permit decision would reduce duplication without removing environmental protections. 2. Clarify Time Frames and Reduce Delays for Section 401 Certification Decisions • Current law requires receipt of a State Water Quality Certification (Section 401 Certification) prior to USACE issuing a Department of the Army(DA) permit (Section 404 and Section 10) decision. Under current law, a State is given a period not to exceed one year to issue its Water Quality Certification, or the requirement is waived. • In spite of the statutory time frame, States increasingly do not issue permits within the applicable time frames, or they require applicants to re-file prior to the one-year lapse,which produces a loop of repeated lack of issuance and re- filing. • Amending the Clean Water Act to change the time period for issuance of a State 401 Certification by addressing the time periods for making a completeness determination and the time for a State decision would reduce this delay. 3. Stabilize Utility Investments by Lengthening the Term of a National Pollutant Discharge Elimination System Permit and Providing for Automatic Renewals • Currently, the Clean Water Act places a five-year limitation on the term of permits granted. • This limitation serves as a disincentive to public and private investments in investor-owned and publicly owned utilities when major investments typically are financed over 20 to 30 years. Moreover, administrative resources in granting permit renewals can significantly impact the timeliness of permit renewal requests. 43 March 15, 2018 Regular Board Meeting Agenda Packet- Page 177 of 275 Page 28 of 48 • Lengthening the permit time limit from five years to fifteen years and providing for automatic renewals of such permits, if the water quality needs do not require more stringent permit limits,would bring more stability to such investments. D. Reducing Inefficiencies in the Magnuson Stevens Act 1. Require Timelines to be Met under the Magnuson Stevens Act orAllow Agency to Proceed with Action • The Magnuson Stevens Act allows for both an abbreviated consultation process (National Marine Fisheries Service (NMFS) must respond within 3o days) and an expanded consultation process (NMFS must respond within 6o days)when evaluating effects to Essential Fish Habitat. • Even with these relatively short time frames, consultations tend to take much longer to complete, and thus impact the delivery of infrastructure projects. • Requiring NMFS to respond to all consultations within 3o days in all cases (unless a 3o-day request for extension is received from NMFS and approved by the action agency)would improve time frames and eliminate delays. If no response were received from NMFS within the required time frame, the action agency could then move to final agency action. E. Reducing Inefficiencies in Protecting Clean Air 1. Eliminate Confusion by Clarifying that Metropolitan Planning Organizations Need only Conform to the Most Recent National Ambient Air Quality Standard • Currently, the Clean Air Act requires EPA to establish National Ambient Air Quality Standards (NAAQS) for certain pollutants. It also requires EPA to periodically review and, if necessary, update these standards. • This creates a problem every time EPA promulgates newly updated NAAQS before prior standards are revoked. State DOTS and metropolitan planning organizations (MPOs) may be required to demonstrate conformity to both the old and new standards for the same pollutant, creating redundancy and uncertainty, and causing State DOTs and MPOs to spend their limited resources unnecessarily. • Amending the Clean Air Act to clarify that conformity requirements apply only to the latest NAAQS for the same pollutant would avoid this confusion and reduce legal challenges. 2. Reduce Uncertainty by Establishing Motor Vehicle Emissions Budgets before Requiring Initial Transportation Conformity Determinations for Newly Designated Areas • Currently, the Clean Air Act requires a newly designated area to comply with conformity requirements one year after the effective date of the final 44 March 15, 2018 Regular Board Meeting Agenda Packet- Page 178 of 275 ASCE A *.;36 TV A A� -rov UUA INFRASTRUCTURE REPORTCARD A COMPREHENSIVE ASSESSMENT OFAMERICA'S INFRASTRUCTURE ABOUT THE INFRASTRUCTURE REPORT CARD Every four years,America's civil engineers provide a comprehensive assessment of the nation's 16 major infrastructure categories in ASCE's Infrastructure Report Card.Using a simple A to F school report card format,the Report Card examines current infrastructure conditions and needs,assigning grades and making recommendations to raise them. The ASCE Committee on America's Infrastructure, CE made up of 28 dedicated civil engineers from ASacross the country with decades of expertise in all categories,volunteers their time to work with ASCE Infrastructure Initiatives staff to prepare the Report The American Society of Civil Engineers, Card.The Committee assesses all relevant data and founded in 1852,is the country's oldest reports,consults with technical and industry experts, national civil engineering organization. and assigns grades using the following criteria: It represents more than 150,000 civil engineers in private practice,government, Does the infrastructure's capacity meet industry,and academia who are dedicated current and future demands? to advancing the science and profession What is the infrastructure's existing of civil engineering. and near-future physical condition? What is the current level of funding from all levels of government for the infrastructure category as compared to the estimated funding need? What is the cost to improve the infrastructure?Will future funding prospects address the need? What is the owners'ability to operate and maintain the infrastructure properly?Is the infrastructure in com liance with government regulations? o what extent is the public's safety jeopardized by the condition of the infrastructure and what could be the consequences of failure? What is the infrastructure system's capability to prevent or protect against significant multi-hazard threats and incidents?How able is it to quickly recover and reconstitute critical services with minimum consequences for public safety and health, the economy,and national security? What new and innovative techniques, materials,technologies,and delivery methods are being implemented to improve the infrastructure? In addition to this national Report Card,ASCE's sections and branches also prepare state and regional Infrastructure Report Cards on a rolling basis.Visit InfrastructureReportCard.org to learn about your ©Copyright 2017 by the American Society of C;.J E„gin«n.All rights reserved. state's infrastructure. WE MUST COMMIT TODAY TO REALIZE AN AMERICAN INFRASTRUCTURE SYSTEM THAT SECURES OUR NATION'S SHARED PROSPERITY. Our nation is at a crossroads. Deteriorating infrastructure is impeding our ability to compete in the thriving global economy, and improvements are necessary to ensure our country is built for the future. While we have made some progress, reversing the trajectory after decades of underinvestment in our infrastructure requires transformative action from Congress, states, infrastructure owners, and the American people. Our nation's infrastructure challenges are To achieve this,leaders on both sides of the significant but solvable.Through strategic, political aisle need to make good on promises sustained investment,bold leadership, they have made to improve our nation's comprehensive planning,and careful infrastructure and ensure these pledges don't preparation for the needs of the future,America's fall by the wayside after each election cycle. infrastructure will be improved and restored. Infrastructure is the foundation that connects For the U.S.economy to be the most competitive the nation's businesses,communities,and in the world,we need a first-class infrastructure people,driving our economy,improving system—transport systems that move people our quality of life,and ensuring our public and goods efficiently and at reasonable cost health and safety.Now is the time to renew, by land,water,and air;power transmission modernize,and invest in our infrastructure to systems that deliver reliable,low-cost power maintain our international competitiveness. from a sustainable range of energy sources;and The longer we wait,the more it will cost. water systems that protect public health. Visit InfrastructureReportCard.org to explore the full Report Card and download the Infrastructure Report Card app. 2017 INFRASTRUCTURE REPORT CARD www.infrastructurereportcard.org 1 March 15, 2018 Regular Board Meeting Agenda Packet- Page 181 of 275 AMERICA'S CUMULATIVE INFRASTRUCTURE GPA The 2017 Infrastructure Report Card GRADING SCALE reveals that we have made some incremental A progresstoward restoring our nation's /""� EXCEPTIONAL,FIT FOR THE FUTURE The infrastructure in the system or network is infrastructure.But it has not been enough. generally in excellent condition,typically new or As in 2013,America's cumulative GPA recently rehabilitated,and meets capacity needs for is once again a D+, the future.A few elements show signs of general deterioration that require attention.Facilities meet The 2017 grades range from a B for Rail to a modern standards for functionality and are resilient D-for Transit,illustrating the clear impact of to withstand most disasters and severe weather events. investment—or lack thereof—on the grades. B GOOD,ADEQUATE FOR NOW Three categories—Parks,Solid Waste,and The infrastructure in the system or network is in good Transit—received a decline in grade this to excellent condition;some elements show signs of year,while seven—Hazardous Waste,Inland general deterioration that require attention.A few Waterways,Levees,Ports,Rail,Schools,and elements exhibit significant deficiencies.Safe and Wastewater—saw slight improvements. reliable,with minimal capacity issues and minimal risk. Six categories'grades remain unchanged from ('` 2013—Aviation,Bridges,Dams,Drinking v MEDIOCRE,REQUIRES ATTENTION Water,Energy,and Roads. The infrastructure in the system or network is in fair to good condition;it shows general signs of deterioration and requires attention.Some elements The areas of infrastructure that improved exhibit significant deficiencies in conditions and benefited from vocal leadership,thoughtful functionality,increasing vulnerability to risk. policymaking,and investments that garnered results.These improvements D POOR,AT RISK demonstrate what can be accomplished The infrastructure is in fair to poor condition and mostly when solutions that move projects forward below standard,with many elements approaching the are approved and implemented. end of their service life.A large portion of the system exhibits significant deterioration.Condition and capacity are of serious concern with strong risk of failure. F FAILING/CRITICAL,UNFIT FOR PURPOSE The infrastructure in the system is in unacceptable condition with widespread,advanced signs of deterioration.Many of the components of the system exhibit signs of imminent failure. 2 1 www.infrastrueturereportcard.o,, AMERICAN SOCIETY OF CIVIL ENGINEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 182 of 275 2017 ` INFRASTRUCTURE REPORTCARD Over the last four years,several infrastructure categories showed progress, resulting in grade increases.However,the 2017 Report Card's cumulative GPA of D+reflects the significant backlog of needs facing our nation's infrastructure writ large.Underperforming,aging infrastructure remains a drag on the national economy,and costs every American family$3,400 a year. .NW 4x >� AVIATION D WRECREATI..,. D+ BRIDGES PORTS C CANISOB_ RAIL DRINKING ROADS WATER ENERGY � _ �. � __ D+ :. HAZARDOUS SOLID WASTE WASTE INLAND RANSIT WATERWAYS LEVEES WASTEWATER. INFRASTRUCTURE INVESTMENT NEEDS Infrastructure is the backbone of the U.S. economy and a necessary input to every economic output. It is critical to the nation's prosperity and the public's health and welfare. Infrastructure's condition has a cascading impact on our nation's economy, impacting business productivity, gross domestic product (GDP), employment, personal income, and international competitiveness. America's infrastructure bill is long overdue. As ASCE discovered in its 2016 economic Every four years,ASCE estimates the study,Failure to Act.Closing the Infrastructure investment needed in each infrastructure Investment Gap forAmerica's Economic Future, category to maintain a state of good repair and failing to close this infrastructure investment earn a grade of B.The most recent analysis gap brings serious economic consequences: reveals the U.S.has only been paying half of its $3.9 trillion in losses to the infrastructure bill for some time and failing U.S.GDP by 2025; to close that gap risks rising costs,falling business productivity,plummeting GDP, $7 trillion in lost business lost jobs,and ultimately,reduced disposable sales by 2025;and income for every American family. 2.5 million lost American jobs in 2025. Even though the U.S.Congress and some states have recently made efforts to invest more in On top of those costs,hardworking infrastructure,these efforts do not come close American families will lose upwards to the$2.0 trillion in needs.The good news of$3,400 in disposable income each is that closing America's infrastructure gap year—about$9 each day. is possible if Congress,states,infrastructure owners,and voters commit to increasing The time to invest in our nation's infrastructure our investment.To raise the overall is now.The longer we wait,the more it costs. infrastructure grade and maintain our global Investing now will save our country more in competitiveness,Congress and the states must the long run while also creating economic invest an additional$206 billion each year. opportunity,enhancing quality of life,and ensuring public health and safety. 4 1 www.infrastructurerep,_ AMERICAN SOCIETY OF CIVIL ENGINEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 184 of 275 Cumulative Infrastructure Needs by System Based on Current Trends, Extended to 2025 2016-2025(10 YEARS) Infrastructure Systems Total Needs Estimated Funding Funding Gap Surface Transportation' $2,042 $941 $1,101 Water/Wastewater Infrastructure' $150 $45 $105 Electricity' $934 $757 $177 Airports' $157 $115 $42 Inland Waterways&Marine Ports' $37 $22 $15 Dams2 $45 $5.6 $39.4 Hazardous&Solid Waste' $7 $4 $3 Levees' $80 $10 $70 Public Parks&Recreations $114.4 $12.1 $102.3 Rails $154.1 $124.7 $29.4 Schools" $870 $490 $380 TOTALS $4,590 $2,526 $2,064 1 Data taken from ASCE's Failure to Act:Closing the Infrastructure Investment Gap forAmerica's Economic Future(2016). 2 Total needs are federal and non-federal high-hazard dams. 3 Funding only includes publicly funded remediation,not funds from private sector. 4 Total needs number based on discussions with the National Committee on Levee Safety 5 Does not include backlog and estimated spending for U.S.Army Corps of Engineers and city parks. 6 Needs and funding estimates based on market projections and current investment trends. 7 Data from State o f Our Schools:America's K-12 Facilities(2016).21st Century School Fund,Inc.,U.S.Green Building Council,Inc., and the National Council on Schools Facilities. 'numbers may not add up due to rounding Visit InfrastructureReportCard.org/failure-to-act-report/ to learn more about ASCE's economic study,Failure to Act. 2017 INFRASTRUCTURE REPORT CARD www.infrastructurereportcard.org 5 March 15, 2018 Regular Board Meeting Agenda Packet- Page 185 of 275 SOLUTIONS TO RAISE THE GRADES To raise the national infrastructure grade over the next four years, ASCE urges the following starting points, so that every American family, community, and business can thrive. Through strategic, sustained investment, bold leadership, thoughtful planning, and careful preparation for the needs of the future, America's infrastructure will be improved and restored. INVESTMENT 1.Put the"trust"back into"trust funds." If the United States is serious about Dedicated public funding sources on the local, achieving an infrastructure system fit for state,and federal levels need to be consistently the 211t century,some specific steps must be and sufficiently funded from user-generated fees, taken,beginning with increased,long-term, with infrastructure trust funds never used to consistent investment.To continue to delay pay for or offset other parts of a budget. such investment only escalates the costs and 2.Fix the Highway Trust Fund by raising risks of an aging infrastructure system—an the federal motor fuels tax.To ensure long- option the country,the economy,and families term,sustainable funding for the federal surface can no longer afford.To close the$2.0 trillion transportation program the current user fee 10-year investment gap,meet future need, must be raised and tied to inflation to restore its and restore our global competitive advantage, purchasing power,fill the funding deficit,and we must increase investment from all levels ensure reliable funding for the future. of government and the private sector from 2.5%to 3.5%of U.S.Gross Domestic Product 3.Authorize and fund programs to improve (GDP)by 2025.This investment must be specific categories of deficient infrastructure consistently and wisely allocated,and must and support that commitment by fully funding begin with the following steps: them in an expedient,prioritized manner. 4.Infrastructure owners and operators must charge,and Americans must be willing to pay, rates and fees that reflect the true cost of using, maintaining,and improving infrastructure. 6 1 www.infrastructurereportcard.or AMERICAN SOCIETY OF CIVIL ENGINEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 186 of 275 LEADERSHIP & PLANNING PREPARING FOR THE FUTURE Smart investment will only be possible with We must utilize new approaches,materials, leadership,planning,and a clear vision for our and technologies to ensure our infrastructure nation's infrastructure.Leaders from all levels is more resilient—to more quickly recover of government,business,labor,and nonprofit from significant weather and other hazard organizations must come together to ensure events—and sustainable—improving the all investments are spent wisely,prioritizing "triple bottom line"with clear economic, projects with critical benefits to the economy, social,and environmental benefits. public safety,and quality of life,while also 1.Develop active community resilience planning for the costs of building,operating, programs for severe weather and seismic and maintaining the infrastructure for its events to establish communications systems entire lifespan.To do so,we must: and recovery plans to reduce impacts on the 1.Require all projects greater than$5 million local economy,quality of life,and environment. that receive federal funding use life cycle 2.Consider emerging technologies cost analysis and develop a plan for funding and shifting social and economic trends— the project,including its maintenance and such as autonomous vehicles,distributed operation,until the end of its service life. power generation and storage,and larger 2.Create incentives for state and local ships—when building new infrastructure, governments and the private sector to invest to assure long-term utility. in maintenance. 3.Improve land use planning at the local 3.Develop tools to ensure that projects most level to consider the function of existing in need of investment and maintenance are and new infrastructure,the balance between prioritized,to leverage limited funding wisely. the built and natural environments,and 4.Streamline the project permitting process population trends in communities of all across infrastructure sectors,with safeguards sizes,now and into the future, to protect the natural environment,to provide 4.Support research and development greater clarity to regulatory requirements,bring into innovative new materials,technologies, priority projects to reality more quickly,and and processes to modernize and extend the secure cost savings. life of infrastructure,expedite repairs or 5.Identify a pipeline of infrastructure projects replacement,and promote cost savings. attractive to private sector investment and public-private partnerships. ASCE recognizes civil engineers'unique leadership role in addressing our infrastructure challenges.ASCE issued its"Grand Challenge," a call to action for the entire civil engineering profession to increase the value and capacity To learn more,visit ASCEGrandChallenge.com. of infrastructure and increase and optimize infrastructure investments by transforming the way we plan,deliver,operate,and maintain our nation's infrastructure. 2017 INFRASTRUCTURE REPORT CARD .org 1 7 March 15, 2018 Regular Board Meeting Agenda Packet- Page 187 of 275 "IATION BRIDGES .II I1. .II I1. him[ D Mi ow C Eli U.S.airports serve more than two million The U.S.has 614,387 bridges,almost four in 10 passengers every day.The aviation industry of which are 50 years or older.56,007—9.1%—of is marked by technologically advanced and the nation's bridges were structurally deficient economically efficient aircraft,however,the in 2016,and on average there were 188 million associated infrastructure of airports and trips across a structurally deficient bridge each air traffic control systems is not keeping up. day.While the number of bridges that are in such Congestion at airports is growing;it is expected poor condition as to be considered structurally that 24 of the top 30 major airports may deficient is decreasing,the average age of soon experience"Thanksgiving-peak traffic America's bridges keeps going up and many of volume"at least one day every week.With a the nation's bridges are approaching the end of federally mandated cap on how much airports their design life.The most recent estimate puts can charge passengers for facility expansion the nation's backlog of bridge rehabilitation and renovation,airports struggle to keep up needs at$123 billion. with investment needs,creating a$42 billion funding gap between 2016 and 2025. .111 II.. rued ed daily at U.S.airports - - structurally deficien 8 1 www.infrastructurez:,.....-,rd.or6 AMERICAN SOCIETY OF CIVIL ENGINEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 188 of 275 DAMS DRINKING WATER D D Dams provide vital service and protection Drinking water is delivered via one million to our communities and economy.The miles of pipes across the country.Many of average age of the 90,580 dams in the country those pipes were laid in the early to mid-20th is 56 years.As our population grows and century with a lifespan of 75 to 100 years. development continues,the overall number of The quality of drinking water in the United high-hazard potential dams is increasing,with States remains high,but legacy and emerging the number climbing to nearly 15,500 in 2016. contaminants continue to require close Due to the lack of investment,the number of attention.While water consumption is down, deficient high-hazard potential dams has also there are still an estimated 240,000 water main climbed to an estimated 2,170 or more.It is breaks per year in the United States,wasting estimated that it will require an investment of over two trillion gallons of treated drinking nearly$45 billion to repair aging,yet critical, water.According to the American Water high-hazard potential dams. Works Association,an estimated$1 trillion is necessary to maintain and expand service to meet demands over the next 25 years. d identified s hr nud potential a Joni 6F tree'e wa er are lost everyday 2017 INFRASTRUCTURE REPORT CARD w..: .onfrastructurereportcard.org 9 March 15, 2018 Regular Board Meeting Agenda Packet- Page 189 of 275 ENERGY HAZARDOUS WASTE via D+ Much of the U.S.energy system predates the turn Over 18,000 sites and an associated 22 million of the 20th century.Most electric transmission acres of land are related to the primary and distribution lines were constructed in the hazardous waste programs that comprise much 1950s and 1960s with a 50-year life expectancy, of the nation's hazardous waste infrastructure, and the more than 640,000 miles of high-voltage and more than half of the U.S.population lives transmission lines in the lower 48 states'power within three miles of a hazardous waste site. grids are at full capacity.Energy infrastructure is The current capacity of the nation's hazardous undergoing increased investment to ensure long- waste infrastructure is generally adequate, term capacity and sustainability;in 2015,40%of owing in no small measure to significant additional power generation came from natural gas improvements in managing materials through and renewable systems.Without greater attention recycling and reuse,rather than disposal. There to aging equipment,capacity bottlenecks,and have also been significant improvements in increased demand,as well as increasing storm and remediation technologies,resulting in faster and climate impacts,Americans will likely experience less resource-intensive cleanup approaches. longer and more frequent power interruptions. ►moi 10 1 www.infrastruetu:erel; r �MERICAN SOCIETY OF CIVIL ENGINEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 190 of 275 D D The United States'25,000 miles of inland Anationwide network of 30,000 documented waterways and 239 locks form the freight miles oflevees protects communities,critical network's"water highway."This intricate infrastructure,and valuable property,with system,operated and maintained by the U.S. levees in the U.S.Army Corps of Engineers Levee Army Corps of Engineers,supports more than Safety Program protecting over 300 colleges half a million jobs and delivers more than 600 and universities,30 professional sports venues, million tons of cargo each year,about 14%of all 100 breweries,and an estimated$1.3 trillion in domestic freight.Most locks and dams on the property.As development continues to encroach system are well beyond their 50-year design in floodplains along rivers and coastal areas,an life,and nearly half of vessels experience delays. estimated$80 billion is needed in the next 10 Investment in the waterways system has years to maintain and improve the nation's system increased in recent years,but upgrades on the oflevees.In 2014 Congress passed the Water system still take decades to complete. Resources Reform and Development Act,which expanded the levee safety program nationwide,but the program has not yet received any funding. $1.93T • IMorethan 2017 INFRASTRUCIUktkEi'Ok"iCAP Nww.infrastructurereportcard.org 1 11 March 15, 2018 Regular Board Meeting Agenda Packet- Page 191 of 275 PARKS • PORTS D+ C+ him _RW - -Mli Avast network of infrastructure goes into The United States'926 ports are essential to supporting more than seven billion outdoor the nation's competitiveness,serving as the recreational outings.Americans enjoy park gateway through which 99%of overseas trade and recreation facilities maintained by entities passes.Ports are responsible for$4.6 trillion at all levels of government.At the federal level, in economic activity—roughly 26%of the U.S. the National Park Service,U.S.Forest Service, economy.As ships get bigger,congestion at and U.S.Army Corps of Engineers are the main landside connections to other components of providers of park facilities.States and localities the freight network increasingly hinders ports' provide the bulk of park and recreational facilities productivity.Similarly,on the water side,larger that seven in 10 Americans use on a regular basis. ships require deeper navigation channels, National forests and grasslands capture and filter which only a few U.S.ports currently have. drinking water for 180 million people.America's To remain competitive globally and with one parks and public lands also support industries another,ports have been investing in expansion, such as lodging,restaurants and bars,grocery modernization,and repair. and convenience stores,and gas stations. -11HIF ® trade passes 4111 through ports' 12 1 www.infrastructurereportcard.orr March 15, 2018 Regular Board Meeting Agenda Packet- Page 192 of 275 ROADS For more than 150 years the rail network America's roads are often crowded,frequently has been a critical component of the U.S. in poor condition,chronically underfunded, transportation system and economy.Today it and are becoming more dangerous.More than carries approximately one-third of U.S.exports two out of every five miles of America's urban and delivers five million tons of freight and interstates are congested and traffic delays approximately 85,000 passengers each day. cost the country$160 billion in wasted time The private freight rail industry owns the vast and fuel in 2014.One out of every five miles majority of the nation's rail infrastructure, of highway pavement is in poor condition and and continues to make significant capital our roads have a significant and increasing investment—$27.1 billion in 2015—to ensure backlog of rehabilitation needs.After years of the network's good condition.U.S.rail still faces decline,traffic fatalities increased by 7%from clear challenges,most notably in passenger 2014 to 2015,with 35,092 people dying on rail,which faces the dual problems of aging America's roads. infrastructure and insufficient funding. in improvements in one year by the freight railroads 2017 INFRASTRUCTURE REPORT CARD www.infrastructurereportcard.org 13 March 15, 2018 Regular Board Meeting Agenda Packet- Page 193 of 275 SCHOOLS SOLID A D+ C+ Every school day,nearly 50 million K-12 students Overall management of municipal solid waste and six million adults occupy close to 100,000 (MSW)across America is currently in fair public school buildings on an estimated two condition.In many cases,the transport and million acres of land.The nation continues disposal of MSW is self-funded and managed by to underinvest in school facilities,leaving an the private sector,and therefore is sufficiently estimated$38 billion annual gap.As a result, funded.Americans generate about 258 million tons 24%of public school buildings were rated as of MSW annually,of which approximately 53%is being in fair or poor condition.While there have deposited in landfills—a share that has plateaued been a number of insightful reports in recent in recent years.Currently,34.6%of MSW is years,state and local governments are plagued recycled and 12.8%is combusted for energy by a lack of comprehensive data on public production.There is a need to change the way we school infrastructure as they seek to fund,plan, think of how solid waste is generated,managed, construct,and maintain quality school facilities. and potentially used as a resource.Americans need to recognize that what is routinely discarded may in fact be a reusable resource. E sc improvements to reach"good"conditio 14 www.infrastructurereportcard.or AMER[CAN SOCIETYOFCIVILENGINEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 194 of 275 TRANSIT WASTEWATER I;r D D Transit in America continues to grow,carrying The nation's 14,748 wastewater treatment plants 10.5 billion trips in 2015,and adding new lines protect public health and the environment. and systems every year.Yet the symptoms of Years of treatment plant upgrades and more overdue maintenance and underinvestment stringent federal and state regulations have have never been clearer.Despite increasing significantly reduced untreated releases demand,the nation's transit systems have been and improved water quality nationwide.It is chronically underfunded,resulting in aging expected that more than 56 million new users infrastructure and a$90 billion rehabilitation will be connected to centralized treatment backlog.While some communities are systems over the next two decades,and an experiencing a transit boom,many Americans estimated$271 billion is needed to meet current still have inadequate access to public transit. and future demands.Through new methods and technologies that turn waste into energy,the nation's 1,269 biogas plants help communities better manage waste through reuse. 2017 INFRASTRUCTURE REPORT CARD iww.infrastructurereportcard.org I IF March 15, 2018 Regular Board Meeting Agenda Packet- Page 195 of 275 GAME CHANGERS While all categories of American infrastructure require modernization and improvement, civil engineers, local communities, all levels of government, and the private sector have already started to develop innovative approaches to address our nation's significant infrastructure needs. To spotlight these efforts, ASCE seeks to continually identify infrastructure Game Changers—groundbreaking infrastructure projects that are transforming the way we plan and build projects across the country and the Report Card's 16 categories. 4VmGAMECHANGERS To learn more about Game Changers in each infrastructure category and in your state, visit InfrastructureReportCard.org/GameChangers 16 1 www.infrastructurereportcard.orr AMER ICAN SOC IETYOFCIVIL ENG INEERS March 15, 2018 Regular Board Meeting Agenda Packet- Page 196 of 275 HELP RESTORE AMERICA'S INFRASTRUCTURE Infrastructure plays a critical but often forgotten role in the daily lives of all Americans, securing public health and safety and improving quality of life. Aging, underperforming infrastructure costs hardworking families and businesses of all sizes, through wasted time and fuel, higher prices, vehicle repair costs, lost work hours due to power or water disruptions, and drained disposable income. All Americans share a role in renewing the nation's infrastructure, beginning with learning about and appreciating the infrastructure all around them,sharing this Report Card,and advocating for long- term investment,visionary leadership,thoughtful planning,and thorough preparation for the future.We can't afford not to act. Take the first step by visiting InfrastructureReportCard.org and downloading the Infrastructure Report Card app. Explore the Report Card,videos,infographics,and interactive content.Share it on social media.Then contact your elected officials at all levels of government to urge them to raise America's infrastructure grades. Visit InfrastructureReportCard.org to explore JIM the full Report Card and download the Infrastructure Report Card app. TM Visit InfrastructureReportCard.org to explore the full Report Card and download the Infrastructure Report Card alp. ASCE American Society of Civil Engineers The 2017 Infrastructure Report Card is made possible with support from the ASCE Foundation. Make your donation at www.ascefoundation.org or call 703-295-6342. World Headquarters 1801 Alexander Bell Drive Reston,Virginia 20191-4400 Washington,D.C.Office 101 Constitution Avenue,NW Suite 375 East Washington,DC 20001 reportcard@asce.org www.infrastructureportcard.org 9i www.facebook.com/SaveUSAlnfrastructure @ASCEGovRel www.infrastructurereportcard.oEg/news