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Home My WebLink About07.d.1) (Handout) Rept. of CASA Annual Conference7.d.1�(Nenc� Central Contra Costa Sanitary District September 2, 2010 TO: HONORABLE MEMBERS OF THE BOARD FROM: JAMES M. KELLY, GENERAL MANAGER SUBJECT: CALIFORNIA ASSOCIATION OF SANITATION AGENCIES 55 ANNUAL CONFERENCE (August 18 -21, 2010) The California Association of Sanitation Agencies (CASA) Annual Conference highlights included discussions about Sanitary Sewer Overflows (SSOs); Greenhouse Gas /Climate Change; Biosolids; and Joint WateNWater projects. I have attached the following handouts for your information: ➢ CASA Annual Conference Program ➢ The Annual Conference Report Slides for most presentations are available. Please let me know if you would like more information on a presentation, and I will forward it to you. The Annual Conference Report is quite complete and summarizes most regulatory and legislative matters. The Conference Keynote Speaker was Phil Isenberg, Chair of the Delta Stewardship Council. Phil gave a lively and entertaining presentation on water politics and the current issues in the Delta. He assured us at some point in the near future, there will be water agencies wanting to buy our water. Also, Board Member Barbara Hockett was elected President for CASA for the next year! Congratulations Barbara! SSOs SSOs were featured in both the Water Issue Forum and in the Joint Manager- Directors' Session. The Water issue Forum featured Jim Hanlon, Director of Wastewater Management, Office of Water, EPA HQ. Mr. Hanlon focused on the EPA's June 1, 2010 Notice on SSO Rulemaking. SSO Rulemaking. Jim Hanlon said there had been 4 listening sessions, one web cast and 215 written comments that addressed 7 questions for which the EPA is seeking input. He provided the responses from the Web Cast: 1. Should the EPA clarify its standard permit condition for SSO reporting, recordkeeping, and public notification? 81% said yes. 2. Should the EPA require asset management in the permit (Capacity, management, operations and maintenance (CMOM))? 84% said yes. are. ' Honorable Members of the Board Page 2 September 2, 2010 3. Should EPA require permit coverage for satellite systems? 80% said yes 4. What is the appropriate role of NPDES permits to address unauthorized SSOs caused by exceptional circumstances? The NPDES permit holders and NGO's were split on this one. There is an issue with the 0 SSO standard. This lead to the question of what to do with the extremes and folks who don't follow best practices as defined by WERF, the EPA audit checklist, RWQCB and SWRCB, etc. The EPA's January 2001 proposal tried to address this but the administrator did not want to just dust off the 2001 proposal and go forward; this lead to the listening sessions. Q: What options might you propose for Blending? Jim: Setting an objective to minimize blending. For example, in November 2005, the EPA proposed to deal with blending like a bypass which would allow blending under exceptional circumstances. Q: Our permits have upset/ bypass protection in them. How do you put this into the SSO Construct? Jim: The question the EPA faces it how to set up a standard to have permit holders continue to improve their performance without being in compliance jeopardy while being able to address those who are not improving. Q: Can you use TMDLs? Jim: States have used TMDLs to deal with non -point sources. There is a large case study where all federal agencies have developed a strategy re: Chesapeake Bay. The plan is prepared. Now we have to watch the process. Q: SSOs law suits /issues not good public policy; do you plan to address in the SSO initiative? Jim: We hope to provide a path, and do a SSO rule. Q There are 1200 to 1500 satellite systems in CA alone. Is there a notion of having the NPDES holder responsible to oversee them? Jim: Wisconsin has something like this now. There is a lot of variability state to state. For example, do you have a peak Q in your contract? This is an example of challenge and the issue. From a legal view, EPA's legal counsel is comfortable with imposing on the NPDES holder. Jim would hope to leave it to the States to deal with how to manage the satellite systems. Q: What about the SSOs that don't reach the waters of the US? Jim: I would like to deal with this as a performance measure; there will be a lot of more discussion on this. Honorable Members of the Board Page 3 September 2, 2010 Q: What if satellites are added to NPDES holders' permits? Jim: It would take one year to prepare regulations, and one to two years to implement them. New Strategies for Renewing Wastewater Conveyance Systems. This presentation was made by a consultant from CH2M Hill, a firm that has performed assessments of many collection systems. I will focus on the things that are additional to what we do rather that the entire presentation. He has found that 30 to 60% of the 1/1 comes from manholes, so he is a believer in manhole rehabilitation and believes they should be one of the first things investigated. He also likes to use a non - manhole entry pipe lamping when you are checking the manhole to get a glimpse of the first 10 to 20 feet of the sewer. Where there is a lot of 1 /I, he likes to use smoke testing, and has found that 30 tc 50% of the 1/1 comes from the private sector. His order of magnitude cost to prepare a program is $2 to $8 per linear foot for a system of our size. Laterals. This presentation summarized the activities of the North Bay Watershed Authority, a group of Marin County agencies that was formed to develop a county wide lateral ordinance. They developed a set of best practices and a united outreach program, which was presented at the session. Their approach was most suited for areas that have high rates of inflow into the public sewers from laterals. WATER QUALITY STANDARDS There were two presentations on water quality standards: one on an EPA rulemaking currently in progress and a second on the SWRCB application of the Marine Life Protection Act to California. EPA Rulemaking RE: Water Quality Standards Regulations. The first step is to conduct pre - proposal outreach and consultation, which is underway. There were listening sessions on 8/24 and 8/26 (Gail Chesler participated). They hope to publish the proposed rule in the summer of 2011. The Clean Water Act has either technology based or Water Quality Base Standards for setting the standards for NPDES Permits and antidegradation. The EPA has asked for input on 6 issues as part of their outreach: 1. Anti degradation: This is usually triggered upon expansion. NGO's say it should be considered when re- permitting. 2. Administrator's Determination. Hope to clarify what constitutes an Administrator's Determination. 3. Designated uses are hard to change and use attainability analysis (UAA) is hard to perform. Use is important because use drives criteria. Will the changes make it even harder to have a UAA? 4. Variances: Gives you time to deal with an issue. CA has no variances, what could be done to make variances possible? 5. Tri- annual reviews are mostly a paper exercise now. Would changes here somehow hurt us or could it be made meaningful? Honorable Members of the Board Page 4 September 2, 2010 6. Change regulations to reflect recent court decisions. This would define a WQS, address compliance schedule authorizing provisions, and revise WQS submittal requirements. More information will be provided at future CASA meetings. The Marine Life Protection Act (MLPA) and State Water Quality Protected Areas. The SWRCB has established MLPA for 4 of the 5 coastal areas of the state. The process has not begun for the San Francisco Bay Area and the San Francisco Bay. In other areas, application. of the MLPA has lead to more permit requirements and increase exposure to 3` party lawsuits. The SWRCB has not started their consideration of the Bay area; it is a process that is important to anyone who discharges to the SF Bay. BIOSOLIDS Non - incinerator biosolids issues include the solid waste local enforcement agencies wanting to permit FOG from food waste being added to digesters, potential regulation of compost due to release of volatile organic compounds that are Ozone precursors; and potential ban of biosolids application in San Lois Obispo County EPA Proposed Rule Defines Biosolids as a Solid Waste. This proposal would result in our incinerators being governed by the Clean Air Act (Section 129). We expect the regulations that would be developed under Section 129 could be significantly stricter than our current regulations. More detail on this matter can be found on Page 19 of the Annual Conference Report. This is one of two major regulatory issues facing the District. NORTH MONTEREY COUNTY COLLABORATIVE WATER PROJECT Monterey and the Salinas River are isolated from the rest of California's intertied water system. The Monterey Regional Wastewater Reclamation Plant already recycles most of its effluent most of the year to nearby farmers. Now 4 agencies are planning a group of projects that will pump and desalinate brackish groundwater, reuse the desalinated water, and either inject the reject brine into the surf zone or discharge it through the Monterey Regional Ocean Outfall. In addition, they are planning to increase the height of a dam and begin instream groundwater recharge both using a large inflatable dams /gates. This model of cooperation has been driven by necessity. GREENHOUSE GAS /CLIMATE CHANGE Jackie Kepke, Program Manager for California Wastewater Climate Change Group, which includes CASA, provided an update on climate change regulations. The main points of interest to the District were that the EPA's "Tailoring Rule" will include GHG provisions in their Title V permits (the District has a Title V permit), and it may include a Best Available Control Technology requirement. Also through the Climate Change Group's efforts, biogenic emissions will not count towards GHG emissions. And finally, it appears that an offset can be granted for connection of septic systems to centralized sewers systems. Staff will follow -up on this items. Honorable Members of the Board Page 5 September 2, 2010 There were a few other related items that came up: • Tire tread rules may apply to fleets • Some A/C chemicals are to be phased out • Ozone ground level standard is lower, and that will drive new standards • The EPA has a new guide book review re energy conservation • There is mercury in disinfectants. See Boston U study • Senator Semintian is considering introducing regulation on pharmaceuticals and need regulate and need to treat. Staff needs to follow up with Sharon green • Enforcement -EPA has largest budget ever, so expect a focus on enforcement. EPA will lead the way, with 200 more inspectors recently hired Attachments TROGRAW,'i` = j � 1 �^ *` 4^r fld r3 ».'Cqk`" M1S dp , S't0.r ✓ +s ' ti f I t } y ; r x '-t r S � " �• a Yi r �` � 5"x K `. ✓�� A4 #Zj i�'� �` M :A�£�n w .r•' F 54��,, L��, ,.,f ;y,l wroa. � C .fix y ,�,c, +. � i r e a 4 r � t� `' N� � tM � %"� pl'I�S� N` �' ijgF #�. yy� 1" ;"vim K'IS � M. 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R ..pr � 4'x,l +�7 .r fi,.. � � ^' +'� r C'.F �„ n�^4•�'as��.5� .�..Y.'ct t f'r - • ` — '. + '� � } ,r ' �i`�n''; .. ta`.,, 't ;, g' ,,. ,� � i"� �G•�`^ . FM > +�i.�. - 2 f California a ,/Dater •2 � v California Association of Sanitation Agencies casA 55 A NN UA L CONFERENCE August 18 -21, 2010 Monterey Marriott 350 Calle Principal Monterey, California Phone: 831.649.4234 ib WEDNESDAY AUGUST 18, 2010 7:00 a.m. —12:00 p.m. CSRMA Breakfast & Training Seminar Location: San Carlos Ballroom 1 -II 12:00 p.m. — 5:00 p.m. Registration Location: North Foyer 2:00 p.m. — 5:00 p.m. Executive Board Meeting Location: San Diego Room . ............................... 5:30 p.m. — 6:30 p.m. Welcome Reception — Sponsored by Water Environment Research Foundation Location: Ferrantes Bayview — Top Floor Registered guests invited Delegates and guests are required to wear name badges to meetings and receptions. THURSDAY AUGUST 19, 2010 7:30 a.m. - 9:00 a.m. Continental Breakfast Location: North Foyer 8:00 a.m. - 5:00 p.m. Registration Location: North Foyer 8:00 a.m. - 9:00 a.m. AIR ISSUES FORUM Location: Steinbeck Theater Chair Lisa Rothbart, Orange County Sanitation District • Update on Fuel Cell Technology • Environmental Compliance & Sustainability for Wastewater Treatment Plants Gary Lucks, Principal, Environmental Attorney and Scientist, Beyond Compliance ......... I .................. 9:00 a.m. - 9:15 a.m. Break Steinbeck Lobby 9:15 a.m. -10:45 a.m. WATER ISSUES FORUM Location: Steinbeck Theater Chair Ben Horenstein, East Bay Municipal Utility District • A View from the Top! Perspectives From EPA Headquarters Jim Hanlon, Director of Wastewater Management, Office of Water, EPA HQ CASA members will hear about a number of key EPA wastewater initiatives that will likely affect most wastewater collection and treatment agencies throughout the coming years. There will be an emphasis on two recently noticed EPA regulatory initiatives; the first to develop a NPDES program dealing with the wet weather issues of sanitary sewer overflows, blending and permitting of collection systems and the second dealing with water quality standards and how they are developed and implemented through the United States. Special guest Jim Hanlon, Director of Wastewater Management, will be present to support the discussion. Jim is a senior staff person in the EPA Office of Water and will share, in addition to the new regulatory initiatives, some of EPA's thoughts and approaches to nutrient issues and controls, green infrastructure and climate change adaptation /mitigation. 10:45 a.m. —11:00 a.m. Break Steinbeck Lobby .............. ............................... 11:00 a.m. —12:00 p.m. LAND ISSUES FORUM Location: Steinbeck Theater Vice Chair, Ruben Robles, Sacramento Regional County Sanitation District • Biosolids Update Greg Kesler, CASA Biosolids Program Manager • Legal Update Regarding Kern County Biosolids Ordinance and Other Issues James S. Slaughter, Attorney, Beverage & Diamond ........... ............................... 12:00 p.m. —1:30 p.m. OPENING CONFERENCE LUNCHEON Location: San Carlos Ballroom II -IV • Welcome to Monterey Sand City Mayor David Pendergrass, and Former Chair of Monterey Region Water Pollution Control Agency • President's Welcome and Executive Board Report Ronald E. Young, Elsinore Valley Municipal Water District • Introduce the Slate of Officers Harry T. Price, Nominations Committee Chair • 2010 Achievement Award Announcements Ed McCormick, Awards Committee Chair 1:45 p.m. — 4:00 p.m. JOINT DIRECTORS AND MANAGERS MEETING Location: Steinbeck Theater Directors Chair Jeff Moorhouse, Carpinteria Sanitary District Managers Chair Kevin M. Hardy, Encina Wastewater Authority 1:45 p.m. — 3:00 p.m. Governing Public Agencies in Today's World: Board and General Managers Moving the Agency Forward During Turbulent Times Moderator. Dr. Charles Beesley, Special Districts Consulting Panel. • Kevin M. Hardy, Managers Committee Chair • Jeff Moorhouse, Directors Committee Chair • Lisa Yates, Principal, ACS Quantum Strategies 3:00 p.m. — 3:15 p.m. Break Steinbeck Lobby CONCURRENT SESSIONS 3:15 p.m. — 4:00 p.m. JOINT DIRECTORS AND MANAGERS MEETING continued Location: Steinbeck Theater Innovative Water Supply Solutions: North Monterey County's Collaborative Approach • Small Community Desalination Steve Mataraao, City Administrator, Sand City Inflatable River Dam Curtis Weeks General Manager, Monterey County Water Resources Agency • Proposed Regional Desalination Project Jim Heintunan General Manager, Marina Coast Water District • Ocean Outfall for Brine Disposal Brad Hagemann P.E., Asst. General Manager, Monterey Regional Water Pollution Control Agency 3:15 p.m. — 5:15 p.m. Ethics Training for Local Government Officials Location: San Carlos Ballroom 1 -II Certification requires attendees to sign -in and sign -out Moderator. David O'Hara, Counsel, Union Sanitary District • General Ethics Principles and Fairness in District Operations John Bakker, Attorney, Meyers, Nave_, Riback Silver & Wilson • Political Reform Act and Govt. Code Section 1090 Cad P.A. Nelson, Assistant District Counsel, Dublin San Ramon Services District • Limitations While in Office John V. Tamborelli, Special Counsel, Stone Rosenblatt Cha • Construction Projects Kenton L. Alm, Attorney, Meyers, Nave, Riback Silver & Wilson • Brown Act Betty Burnett, District Counsel, South Coast Water District • Public Records Act Tony Condotti, Attorney, Atchinson, Barisone, Condotti & Kovacevich ...... ... ................ . ......... ...................... : 4:15 p.m. — 5:15 p.m. Federal Legislative & Liaison Committee Meeting Location: San Carlos Ballroom III -IV Chair Sharon Green, Los Angeles County Sanitation District 5:30 p.m. — 7:30 p.m. CSRMA Executive Board Meeting Location: San Francisco Acorn FRIDAY AUGUST 20, 2010 7:30 a.m. — 9:00 a.m. CSRMA Board of Directors Meeting Location: San Carlos Ballroom 1 -II ........................................................ ............................... 8:00 a.m. — 9:00 a.m. Slate Legislative Committee Poleeling Location: San Carlos Ballroom III -IV - Chair Tim Anderson, Sonoma County Water Agency 8:00 a.m. — 3:00 p.m. Registration Location: North Foyer 8:30 a.m. — 9:30 a.m. Continental Breakfast Location: North Foyer ......................................... ............................... 9:30 a.m. - 12:00 p.m. - GENERAL SESSION Location: Steinbeck Theater lst Vice President /President Elect, Barbara Hackett presiding 9:30 a.m. —10:00 a.m. New Strategies for Renewing Wastewater Conveyance Systems Mark G. Wade, P.E., Principal Technologist, CH2M Hill 10:00 a.m. —10:30 a.m. Developing Regional Solutions to Problems Caused by Damaged Private Sewer Laterals - Beverly James, General Manager, Novato Sanitary District - John Larson, P.E., Larson Consulting - Martin Rauch, Rauch Communications Consultants 10:30 a.m. —10:45 a.m. Break 10:45 a.m. —11:15 a.m. Climate Change Report Jackie Kepke, CWCCG Program Manager 11:15 a.m. —12:00 p.m. The Marine Life Protection Act and State Water Ouality Protected Areas: Overview and Potential Compliance Implications for Coastal /SF Bay Dischargers - Dominic Gregorio, Sr. Environmental Scientist, State Water Resources Control Board - Joseph R. Gully, Ocean Monitoring Program, Los Angeles County Sanitation Districts .................................................... ............................... 11:00 a.m. — 2:00 p.m. Communications Committee Meeting Location: Santa Monica Room Chair Michele McKinney Underwood, Western Municipal Water District ........................................................ ............................... 12:00 p.m. —1:15 p.m. Lunch On Your Own ........................................................ ............................... 12:00 p.m. —1:15 p.m. Associates Committee Meeting Location: San Carlos Ballroom 1 -II Chair Jim Graydon, Kennedy /Jenks Consultants That Which Does Not Kill You Makes You Stronger — A panel discussion on agency adaptation strategies Panel: • Kevin M. Hardy, General Manager, Encina Wastewater Authority • Brad Hagemann, Assistant General Manager, Monterey Regional Water Pollution Control Agency • Marcia Maurer, CFO, Sacramento Regional County Sanitation District 12:00 p.m. — 4:00 p.m. Attorneys Committee Meeting and Luncheon Location: San Carlos Ballroom III Chair Mark Cornelius, Law Once of Mark Cornelius CASA is a State Bar of California MCLE approved provider ........................ ............................... I .............. 1:30 p.m. — 4:30 p.m. - GENERAL SESSION Location: Steinbeck Theater 2nd Vice President Gary W. Darling presiding 1:30 p.m. —1:55 p.m. Washington Report Eric Sapirstein, CASA Legislative Advocate 1:55 p.m. — 2:15 p.m. State Legislative Report Michael F. Dillon, CASA Lobbyist 2:15 p.m. — 2:45 p.m. WERF Findings: Energy, Climate & More... Glenn Reinhardt, Executive Director, Water Environment Research Foundation 2:45 p.m. — 3:15 p.m CASA's Imaging Campaign Update Charles Gardiner, Principal, CirclePoint ............................................................ ..............................: SATURDAY AUGUST 21, 2010 ....I ....................... 3:15 p.m. — 3:30 p.m. Break 3:30 p.m. — 4:30 p.m. Top 10 Tips For working with the Media Presented by the Communications Committee Moderator. Michele McKinney Underwood, Chair and Senior Public Affairs Representative, Western Municipal Water District . Panel: • Greg Chan, East Bay Municipal Utility District • Karen Harris, Monterey Regional Water Pollution Control Agency • Lois Humphreys, TRG and Associates • Ann Kloose, City of Fresno, Dept. of Public Utilities • Angela Lowrey, Delta Diablo Sanitation District • Michelle Powell, Union Sanitary District • Susan Stephenson, Dublin San Ramon Services District ............................ : ..................................................... : 4:45 p.m. — 5:30 p.m. Program Planning Meeting Location: Los Angeles Room Chair James Kelly, Central Contra Costa Sanitary District ..................................... ............................... 6:00 p.m. — 7:00 p.m. President's Reception Location: Ferrantes Bayview Top Floor 7:30 a.m. — 9:00 a.m. Executive Board Meeting Location: Los Angeles Room ............ ............................... 8:00 a.m. — 9:00 a.m. All American Breakfast Buffet Location: San Carlos Ballroom III -IV 9:00 a.m. —11:00 a.m. CLOSING GENERAL SESSION Location: San Carlos Ballroom III -IV President Ronald E. Young presiding Keynote Speaker: Phil Isenberg, Chair, Delta Stewardship Council Closing Business • 2010 -2011 Election of Officers and Directors-At -Large • 2011 Proposed Dues Resolution • CASA Staff Reports • Committee Reports: Action Items • Last Order of Business -. Passing of the Gavel • Closing remarks by President Delegates and guests are required to wear their name badge to meeting and social functions. NOTES NOTES f_ [ California Association of Sanitation Agencies (W ) COMMON ACRONYMS L .... ACWA Assoc of California Water Agencies NPDES Nat'l Pollutant Discharge Elimination System ANPRM Advanced Notice of Proposed Rulemaking NIPS Non -Point Source APWA American Public Works Association NRDC Natural Resources Defense Council ATCM Airborne Toxic Control Measure NTR National Toxics Rule AWWA American Water Works Association ! 0M0 Office of Management and Budget BACWA Bay Area Clean Water Agencies ONRW Outstanding National Resource Water BOD Biochemical Oxygen Demand PAG Public Advisory Group CAAQS Calif Ambient Air Quality Standard PAHs Polynuclear Aromatic Hydrocarbons CalARP Calif Accidental Release Prevention Program PCBs Polychlorinated Biphenyls CARIB Calif Air Resources Board POTWs Publicly Owned Treatment Works COFA Calif Dept of Food & Agriculture PPCPs Pharmaceutical and personal Care Products CDO Cease and Desist Order i PSSEP Partnership for Sound Science In Environmental Policy CECs Constituents of Emerging Concern QA/OC Quality Assurance / Quality Control CEQA Calif Environmental Quality Act Region IX Western Region of EPA (CA, AZ, NV & HI) CFR Code of Federal Regulations RFP Request For Proposals CMOM Capacity, Management, Operation and Maintenance RMP Risk Management Program CIWMB Calif Integrated Waste Management Board RFQ Request For Qualifications CPUC Calif Public Utilities Commission RO Reverse Osmosis CSO Combined Sewer Overflow RWQCB Regional Water Quality Control Board CTR California Toxics Rule SCAP Southern California Alliance of POTWs CVCWA Central Valley Clean Water Association SEP Supplementary Environmental Projects CWA Clean Water Act SERTs Soluble or Extractable Regulatory Thresholds CWAP Clean Water Action Plan SLAPP Strategic Lawsuit Against Public Participation CWARA Clean Water Authority Restoration Act SIP State Implementation Policy (CTR/NTR criteria) CWEA Calif Water Environment Association € SRF State Revolving Fund OHS Dept of Health Services ss Suspended Solids 00 Dissolved Oxygen SSO Sanitary Sewer Overflow DTSC Dept of Toxic Substances Control [ SSMP Sewer System Management Plan EOEP Enclosed Bays and Estuaries Plan SWRCB State Water Resources Control Board EDW Effluent Dominated Waterbody TAG Toxic Air Contaminant EIS /EIR Environmental Impact Statement/Report i TCLP Federal Toxicity Characteristics Leaching Procedure EPA Environmental Protection Agency i TDS Total Dissolved Solids ERAF Educational Reserve Augmentation Fund 's TMDL Total Maximum Daily Load ESMP Electronic SeH- Monitoring Report Tri -TAC Technical Advisory Committee of CASA, CWEA, and LOCC FOG Fats, Oils and Grease TSD Total Solids Dissolved GASB Government Accounting Standards Board TSO rime Schedule Order HAP Hazardous Air Pollutant TSS Total Suspended Solids ISWP Inland Surface Waters Plan UPCCAA Uniform Public Construction Cost Accounting Act JPA Joint Powers Authority i UV Ultraviolet Treatment LA Load Allocation (non -point sources) VOCS Volatile Organic Compounds LAFCO Local Agency Formation Commission WAS Waste Activated Sludge LOCC League of California Cities i WDR Waste Discharge Requirements LHC Little Hoover Commission WEF Water Environment Federation MACT Maximum Achievable Control Technology WERF Water Environment Research Foundation (air controls) WET Whole Effluent Toxicity or Waste Extraction Test MCL Maximum Contaminant Level WESTCAS Western Coalition of Arid States MGD Million Gallons per Day 'WIN Water Infrastructure Network MMP Mandatory Minimum Penalty i VILA Waste Load Allocation (point sources) MOU Memorandum of Understanding WMI Watershed Management Initiative MON Municipal Drinking Water Use WRFP Water Recycling Funding Program NACWA National Association of Clean Water Agencies WRDA Water Resource Development Act HAS National Academy of Sciences' WWTP Wastewater Treatment Plant NGOs Non Governmental Organizations WQOEL Water Quality Based Effluent Limitation NOP Notice of Preparation WQS Water Quality Standards NOX Nitrogen Oxides V /WWIFA Water and Wastewater Infrastructure Financing Agency 2010 CASA 2010 COMMITTEE CASA EXECUTIVE BOARD CHAIRPERSONS STAFF MEMBERS Ronald E. Young, P.E., D.E.E. - President Elsinore Valley Municipal Water District Barbara D. Hackett - 1st Vice President Central Contra Costa Sanitary District (Director) Gary W. Darling - 2nd Vice President Delta Diablo Sanitation District Tom Selfridge - Secretary - Treasurer Truckee Sanitary District Pervaiz Anwar - Director -at -Large Brown and Caldwell Jeffrey G. Hansen - Director -at -Large Dublin San Ramon Services District (Director) John E. Hoagland - Director -at -Large Rancho California Water District (Director) Stephen A. Hogg Director-it-Large City of Fresno Jeff Moorhouse - Director -at -Large Carpinteria Sanitary District (Director) Margie L. Rice - Director -at -Large Midway City Sanitary District (Director) - David R. Williams - Director -at -Large East Bay Municipal Utility District - Harry T. Price - Past President Fairfield- Suisun Sewer District (Director) Kamil S. Azoury - Past President Goleta Sanitary District Jim Graydon, Associates Chair Mark Cornelius, Attorneys Chair Ed McCormick, Awards Chair Catherine Smith, Executive Director Ashley Bradley, Communications Specialist Mike Dillon, State Lobbyist Jackie Kepke, Climate Change Program Manager Greg Kesler, Biosolids Program Manager Roberta L. Larson, Director of Legal & Regulatory Affairs Justin Lewis, IT Manager Eric Sapirstein, Federal Legislative Advocate Simone Smith, Conference Staff -----.._...---- -- Debbie Welch, Conference Coordinator /Executive Assistant Fiona Young, D.C. Conference/Admin. Assistant UPCONAING CASA CONFERENCE MEETINGS 2011 MID YEAR CONFERENCE Wed. - Fri. January 12-14,2011 JW Marriott, Palm Desert 2011 D.C. CONFERENCE Mon. - Wed. March 14 -16, 2011 Hotel Monaco - Washington D.C. Tom Selfridge, Budget & Audit Chair Robert R. Reid, Bylaws Chair Michele McKinney Underwood, Communications Chair Jeff Moorhouse, Directors Chair Ronald E. Young, Evaluation Chair Sharon Green, Federal Liaison & Legislative Chair Kevin Hardy, Managers Chair Harry T. Price, Nominations Chair James Kelly, Program Planning Chair Tim Anderson, State Legislative Chair Joyce Gwidt, Conference Arrangements Chair Lisa Rothbart, Air Issues Forum Chair Mike Sullivan, Land Issues Forum Chair Ben Horenstein, Water Issues Forum Chair Richard Althouse; SWRCB - WW Treatment Plant Operator Certification Advisory Committee Representative Wyatt Troxel, SWRCB - WW Treatment Plant Operator Certification Advisory Committee Representative Ben Horenstein, Tri-TAC Chair 2011 SPRING CONFERENCE Wed. - Fri. April 27-29,2011 Hyatt Regency, Sacramento CA 2011 ANNUAL CONFERENCE Wed. - Sat., August 10-13,2011 Mission Bay Hilton By Roberta Larson, Director of Legal & Regulatory Affairs As a prelude to beginning the formal regulatory process, the State Water Resources Control Board released for informal comment a preliminary draft Policy For Whole Effluent Toxicity Assessment and Control. CASA was among those entities that submitted comments by the informal August 7, 2010 deadline. The preliminary draft policy would establish effluent limitations for whole effluent toxicity (WET) applicable to all inland surface waters and enclosed bays and estuaries, as well as implementation procedures for specified categories of dischargers. Toxicity tests measure the acute (mortality) effects of effluent on a group of test organisms during specified exposure periods, or the chronic (reduced growth or reproduction) effects on those organisms. At the time of this writing, CASA and Tri -TAC were continuing to review and evaluate the preliminary draft policy. The initial assessment of the State Water Board staff proposal is that it will place publicly owned treatment works (POTWs) in compliance jeopardy and lacks a sufficiently reliable scientific continued on page 3 August 2010 Executive Director's Message Under the leadership of the CASA Executive Board, CASA continues to kick up its involvement in a number of issues that may impact our members and expand - � CASA's position as the statewide leader for California's wastewater community. Attendees will receive updates on a number of these efforts at the conference but I wanted to highlight a few: Wastewater Image Campaign: The CASA Executive Board will be receiving a presentation by CirclePoint, the firm that developed a comprehensive proposal for CASA's statewide communications and image campaign. This is the first step in what may be a multi -step process if the Executive Board decides to move forward with the recommendations made in the proposal. The development of this communication plan began with one -on -one interviews with member agency staff, stakeholders and opinion leaders. The effort was lead by an Ad Hoc Committee appointed by President Ron Young. The Ad Hoc Committee represents members from northern and southern California, both large and small agencies, in the process of developing the wastewater image campaign. CirclePoint's principal, Charles Gardiner, will speak to the Executive Board on Wednesday and follow up with a presentation to the Council at Friday's General Session. CirclePoint discovered that beyond the industry experts and staff, there is a clear lack of familiarity with wastewater and wastewater related issues — in particular our role in renewable resources, clean energy and addressing climate change. CWCCG: Clean Water Climate Change Group (CWCCG), through a CASA contract, had a very successful year with Climate Change Program Manager Jackie Kepke. The contract with CH2MHill that allows Jackie to work with the CWCCG is up for renewal in August and will be discussed at this conference. Jackie and the CWCCG have been actively involved in both state and federal issues relating to climate change and POTWs. A ballot measure to repeal AB 32 is on the November ballot but regardless of the outcome of that election, there appears a lot of work still remains to be done on behalf of our agencies. This program is funded through collaboration with CASA, CVCWA, SCAP and BACWA. The Bell Tolls: Just when there appears to be a "lull" in controversy, an unexpected issue arises. That certainly happened for those of us working with local government when the scandal over high salaries paid to the City of Bell officials recently unfolded in the media and prompted widespread public outrage. I think the fallout of this situation will be with us for a while. For those of us who have lived through Senator Deborah Ortiz's special district oversight legislation, which stemmed from the actions of one Sacramento - area water district, ultimately gave us AB 1234 ethics training. These individual agency crises bring a cloud of doubt and suspicion over all local government. If it happened there, is it happening here? Even if all CASA members embrace full transparency with its constituents and set justifiable salary and compensation packages for its employees, we will still likely be involved in new legislation or requirements for publishing additional information on public employee salaries and benefits. Following the City of Bell . investigation, State Controller John Chiang announced that he will require new reporting by cities and counties that will clearly identify salaries of public employees and elected officials. This move was supported by both the League of California Cities and the California State Association of Counties. I wouldn't be surprised if there are other initiatives introduced by the local government gel cornrnunity to help ease the public's concerns about public employee compensation. Even those who have been doing everything right will need to build back the public's trust in some manner. CASA will continue to work with our local government partners on good governance practices and transparency — the public deserves no less. State Capitol: As we move toward November, we prepare to say goodbye to Governor Arnold Schwazenegger and welcome a new administration in January. We will see more than 30 new faces in the State Senate and Assembly after the election. With these newly elected officials, we will need to once again take it upon ourselves to introduce our agencies, services and issues as they begin their new legislative session. It is imperative that all CASA members take the time to meet the new decision makers and reconnect with the veterans to ensure our voice is heard in Sacramento. Conference: The Program Committee has once again put together an incredible agenda for our annual conference and I am sure each of you will take away a lot of great new information on wastewater and governance issues that will help you lead your agency — that is always our goal! Enjoy your learning experience in Monterey! @ Numeric Effluent Limitations for Whole Effluent Toxicity continued basis for establishing enforceable effluent limitations. The proposed approach would convert WET tests, which have been demonstrated to be highly variable, from a diagnostic tool to a fixed numeric effluent limit. Some of the major problems with the preliminary draft policy are: • The preliminary policy presumes POTWs with permitted flows of 1 million gallons per day or higher have reasonable potential to cause or contribute to exceedances of both the chronic and acute WET objectives, meaning that WET limits will be included in all permits. • The Policy limits compliance schedules to two years in duration, despite the fact that the required investigations of the causes of toxicity may take many months or years and do not always confirm the toxicant. • The statistical approach used in the preliminary draft policy would significantly increase the false positive rate for WET tests. An evaluation of U.S. EPA data revealed a 15 percent error rate for one test species (ceriodaphnia) and 8 percent for fathead minnows. The policy is intended to set minimum requirements, allowing regional water boards to impose more stringent requirements on a case -by -case basis. If adopted, the policy will supersede the toxicity control provisions in the Policy for Implementation of Toxics Standards for Inland Surface Waters, Enclosed Bays, and Estuaries of California (the SIP) and any conflicting provisions in regional Basin Plans. There will be additional opportunity to provide comments and information when the policy is released for formal public comment in the fall. Regulatory Report continued on page 4 Stakeholder Group Unable to Reach Consensus on New NPDES Permit Fee Approach A Stakeholder Group has been meeting since December 2009 in an effort to develop a consensus approach to establishing annual NPDES permit fees assessed by the State Water Resources Control Board to fund its core regulatory programs. The formation of the Workgroup was prompted by fee payer concerns regarding the significant changes over the past few years in the manner in which fees are determined. One of the first tasks of the workgroup was to establish "Guiding Principles" against which to evaluate different fee structures. These include: • Widely fluctuating annual fees for NPDES dischargers are undesirable because of the difficulty in budgeting and raising revenue. • The Workgroup does not support or expect that fees a specific discharger pays will be exactly proportional to the effort spent by the State Board staff on that discharger. • The goal of the Workgroup is to develop a methodology that is a fair and stable allocation of the current and near term future revenue requirements. Since its formation, the Workgroup has considered the merits and feasibility of alternative fee structures. These ranged from a "fee for service" concept, in which a fee is based on the cost of providing services to the specific fee payer, to a regulatory fee in which the fee levels are set to account for threat to water quality and other similar factors. Consistent with the guiding principles, the Workgroup initially agreed that the best approach would be a fee structure that assesses each member of a regulated sector a fee based on that sector's portion of the approved fee revenue target roughly proportional to the share of the State Water Board's workload associated with regulating that sector. Four sectors were used for this allocation process: • Municipal (publicly owned and domestic treatment works): 42 percent • Industrial: 29 percent • SEPP (Steam Electric Power Plants): 4 percent • General (de minimis discharges such as utility vaults, dewatering, etc.): 25 percent Given that the sector approach offers the benefit of relative stability and equity, the CASA Executive Board agreed to support the sector approach. Despite significant efforts, however, the Workgroup has not yet reached consensus on the sector structure. Some members of the Workgroup are most concerned about long -term stability and equity with regard to fees, and believe that the sector approach has a sound basis that will result in fees with a reasonable, though admittedly not precise, relationship to the State Water Board's costs of implementing the program. Other members of the workgroup are very concerned about the ever - increasing fee burden that permittees are being asked to shoulder in these difficult times, resulting in fees that are 200 percent to 300 percent higher than fees paid in prior years. For example, the revenue target under the proposed state budget is approximately $20.7 million, which is a 22 percent increase over the $17 million target for FY 2009 -10. (This total does not reflect the one time fee discount of approximately $1.9 million due to furlough savings, nor does it account for the separate ambient monitoring surcharge.) If the sector approach were implemented, the fees for some discharger types —in particular, SEPPs —would decrease significantly from current levels, while others, such as industrial permittees, would face large increases. While municipal fees have historically accounted for about 42 percent of the fee revenue, individual POTW fees would increase above current levels due to the higher revenue amounts contained in the proposed State budget. These concerns have prevented the Workgroup from reaching consensus to date. Regardless of whether agreement is reached, the Workgroup is scheduled to present a status report to the State Water Board in early August. In the absence of a consensus recommendation, the State Water Board will look to its staff to propose a FY 2010 -11 fee schedule for all discharger categories. ................._............ .................. ._ ... ..__..___ CASA and TH -TAC Provide Input to U.S. EPA Regarding Possible Federal SSO Regulations On June 1, 2010, the United States Environmental Protection Agency (U.S. EPA) published a notice in the Federal Register seeking public input on wet weather issues that affect sanitary sewer systems, including sanitary sewer overflows (SSOs) and blending. U.S. EPA is considering "whether to propose to modify the National Pollutant Discharge Elimination System (NPDES) regulations as they apply to municipal sanitary sewer collection systems and sanitary sewer overflows." Among the issues under review is whether to develop broad -based SSO regulations under the NPDES program, including standard permit conditions for publicly owned treatment works (POTWs) and collection systems that may include reporting, recordkeeping, and public notification; capacity assurance, management, operation, and maintenance requirements (CMOM) for collection systems; and whether to require satellite collection systems to obtain NPDES permits. U.S. EPA held several public "listening" sessions in June and July, and accepted written comments through August 2, 2010. CASA, along with other California clean water associations, submitted comments emphasizing the following: • Regulation of collection systems should focus on the integrity of sewer systems and the adequacy of infrastructure, not on chasing an impossible "zero spill" target. To be effective and yield real benefits for the environment and public health, any new federal program must establish a structure where collection system compliance is defined and measured by the implementation of best management practices (BMPs) and maintenance, management and operation (MOM) programs. • A national EPA - administered NPDES program for SSOs would best be conducted by the states through delegated authority to allow for the incorporation of local concerns and the ability to tailor programs to regional conditions. • In the event that the U.S. EPA decides to require permits for satellite collection systems, the mechanism for doing so should be permits issued directly to the satellite by the states and not the inclusion of independent satellite systems in permits issued to POTWs. • There is no legal basis for extending federal regulatory jurisdiction to SSOs that do not reach waters of the United States. SSOs into basements or other buildings or properties can raise public health issues, but these SSOs are properly within the purview of state and local public health or environmental agencies. At this time, it is not clear whether U.S. EPA will proceed with a rulemaking on SSOs or blending, and if so, the schedule for developing and finalizing the regulations. CASA will continue to work with other clean water associations to ensure that the successes of California's statewide collection system general order are recognized and that any new federal program is consistent with and not duplicative of existing requirements. ' State Water Board Reviewing J `Y 9 i Recommendations of Expert Panel on Constituents of Emerging Concern (CECs) in Recycled Water In late June, the expert Science Advisory Panel convened pursuant to the State Water Board's Recycled Water Policy completed its work and submitted its final report, "Monitoring Strategies for Chemicals of Emerging Concern in Recycled Water." CASA, the Association of California Water Agencies and WateReuse California had submitted detailed comments on the initial draft of the panel report, and are supportive of implementing the final recommendations. The associations agree the panelists are highly qualified experts and, while some minor clarifications and refinements may be appropriate, amendments to that deviate substantially from the panel recommendations would be cause for concern. The panel recommended monitoring of caffeine, triclosan (an antimicrobial), NDMA (N- nitrosodimethlyamine) (a disinfection byproduct) and 17b- estradiol (a steroid hormone) in recycled water used for groundwater recharge. In addition, the panel recommended monitoring a number of additional CECs as indicators of treatment process performance. Based on the very low risk to human health, the panel did not recommend monitoring any CECs in recycled water used for landscape irrigation, and concluded that the Title 22 monitoring requirements for chlorine residual, coliform and turbidity were sufficient to verify treatment efficacy. The Recycled Water Policy provides that "[w]ithin six months receipt of the panel's report the State Water Board, in coordination with CDPH, shall hold a public hearing to consider recommendations from staff and shall endorse the recommendations, as appropriate, after making any necessary modifications." The State Water Board staff intends to conduct a workshop to receive input on the panel's recommendations, - -' then formulate a resolution to implement the recommendations for consideration by the State Water Board in fall 2010. o (ai 1 1VASHRENGT r 'IN IEEPOR CASA Washington, D.C. Office - 1101 14th Street, N.W. Suite 350 Washington, D.C. 20005 - 202.466.3755 By Eric Sapirstein Federal Legislative Advocate The annual budget making process continues in Washington and the gridlock that has characterized much of the past year's legislative calendar remains the dominant factor against passage of domestic spending bills. As Congress left Washington for the August recess, both the House and Senate Committees on Appropriations approved several spending bills. The actions included approval of the U.S. Environmental Protection Agency's budget by the House committee. As part of the approved bill, the committee would fund the clean water and safe drinking water SRF programs collectively at $3.2 billion or $1.9 billion for clean water and $1.2 billion for drinking water. The committee also provided for a continuation of enhanced subsidies such as loan forgiveness and green technology grants assistance. Overall, $271 million compared with fiscal year 2010 appropriations maintaining an Administration priority to reduce spending reduced the U.S. EPA budget. The committee increased funding of the National Estuary Program that supports planning activities for San Francisco Bay, Santa Monica Bay, and Monterey Bay, among other estuaries throughout the nation that are considered priority estuaries. The committee also took action to fund studies into the challenges posed to natural resources (fish) that are related to endocrine disrupting chemicals. In keeping with the goal of reducing congressionally directed spending, the bill provides for only a limited number of project set -aside spending within the SRF program. On the matter of climate change, the committee approved significant funding to support a number of climate - related initiatives at several agencies. The U.S. EPA would receive $42 million to continue developing research related to responses to climate change impacts and $159 million to support state grants assistance. Also funded is $168 million to support the Department of the Interior's climate research programs. Despite the actions approving an U.S. EPA spending bill for the upcoming fiscal year 2011, the end game on finalizing any budget remains by most congressional budget officials to be the Lame Duck Session in December. Until that time, Congress is expected to pass a stop gap spending resolution to continue governmental operations and programs through November /December when it returns to work in September. Chemical Security Mandates a Maze of Options Congressional efforts to renew the expired Chemical Facilities Anti- Terrorism Standards Program ( CFATS) that establishes security measures that need to be taken at facilities saw a flurry of action in the Senate as Congress prepared to leave for the summer, The House approved its version, the Chemical and Water Security Act (H.R. 2868) last year. H.R. 2868 would, among other mandates, require a tiering of facility risks for purposes of ensuring security upgrades. Facilities for the first time include POTWs. Water facilities have already been subject under CFATS to vulnerability assessments and security upgrade mandates. In a concession to POTWs and drinking water agencies, H.R. 2868 provides oversight to the U.S. EPA instead of the Department of Homeland Security. There is no mandate for Inherently Safer Technologies (IST), but a state can review a POTW, for example, and consider requiring IST transition, if it believes a threat to the public exists. ' In the Senate, action is proceeding on a two -track basis. First, the Committee on Homeland Security approved an amended H.R. 2868. Under the amended bill, the existing CFATS program would remain in place for an additional three years. In the course of taking this action, the committee agreed that imposing IST mandates without first understanding the risk and costs of such a policy would be unwise. At the same time, the Committee on Environment and Public Works is considering Senator Frank Lautenberg's (D -NJ) bill, the Secure Water Facilities Act (S. 3598). Lautenberg is the chair of the subcommittee with jurisdiction over chemicals and environmental health. S. 3598 incorporates most of the provisions of the House - passed bill. However, it vests oversight of the law with the Department Carl of Homeland Security. The bill contains an important difference from H.R. 2868 that would impose a significant impact if adopted. For the first time, a standard would be imposed requiring the U.S. EPA or the state to review a facility's Levin (D -MI) introduced a second bill; H.R. 5893 to position a smaller measure for consideration should the original legislation fail to be passed by the Senate. H.R. 5893's provisions remain identical to the Small Business proximity to population centers and Infrastructure Jobs Tax to determine the threat to public Act of 2010 (H.R. 4849), that health from chemicals used to contains the Build America comply with the Clean Water Act, for example. Based upon the review, the U.S. EPA or a state would have the authority to mandate IST S. 3598 has only received a hearing and it is unlikely to see Senate action before the end of September. This suggests that the limited time remaining in the session may force a simple extension of the existing mandates, delaying for at least year efforts to impose IST mandates on POTWs and drinking water agencies. Additionally, POTWs would be excluded from any mandates to conduct vulnerability assessments or subsequent security upgrades. Alternative Financing of Wastewater Infrastructure Proceeds in Congress The U.S. Senate continues to debate legislation that would put in place an extension of an important financing tool that was first employed as part of the American Recovery and Reinvestment Act (ARRA). As a result of the continued gridlock in the Senate, House Committee on Ways and Means Chairman Sander Bonds program (BAB) extension for an additional three years. Under both measures, the BABs provision would provide public agencies with access to the taxable bond market by providing cash subsidies to the public agencies of as much as 35 percent of the interest rate the bonds carry. Under the proposed approach, a sliding scale based on the year of issuance would determine how large a subsidy would be provided. The subsidy is intended to reduce the economic costs of using taxable securities to fund wastewater infrastructure among other uses. The program has been a success in helping fund infrastructure during the economic recession by opening up an otherwise unavailable revenue source. In addition to the BAB extension, the bill also would exclude from state bond volume caps private activity bonds (PABs) that are used to construct water and wastewater treatment infrastructure. Should the PAB provision be enacted, it could lend itself to projects that might be financed under a public - private partnership. Pharmaceutical Take -Back Bills Advance in Congress A key CASA legislative priority began to gain momentum when House and Senate committees jump- started the long delayed consideration of bills to address the disposal of prescription drugs into the environment. Just a week away from recessing for the summer, the Safe Drug Disposal Act of 2010 (H.R. 5809) and the Secure and Responsible Drug Disposal Act (S. 3397), received committee approvals. Both bills amend the Controlled Substances Act and would amend the Act to allow end users of controlled substances greater flexibility to dispose of the unused substances. Specifically, users could return pharmaceuticals to officials other than law enforcement officials if the Attorney General issues regulations creating such opportunities. The House bill also requires an "awareness" campaign to educate the public on the importance of safe disposal practices. It also directs the Government Accountability Office to monitor the effectiveness of any program changes to foster better management and disposal of drugg. The bill also requires the U.S. EPA to examine the environmental impacts of controlled substance disposal and formulate appropriate recommendations to eliminate the impacts. The U.S. EPA must report on this study within 18 months after the enactment of the Act. Unfortunately, because of jurisdictional committee concerns, provisions that CASA advocated, including a new mandate that all pharmaceuticals be labeled to advise consumers not to dispose of unused drugs down toilets, were deleted from the House measure. As a result, CASA will be working with the California congressional delegation and the bills' sponsors to amend the bills if and when the House and Senate consider them later this year for debate and passage. continued on page 3 17 WASHINGTON REPORT CONTINUED Defining Waters Subject to Clean Water Act Regulation May Move to Rulemaking A legislative response to the Supreme Court decisions that threw into question how the U.S. EPA and the Army Corps of Engineers permit navigable waters of the U.S. under the Clean Water Act remains frozen legislatively. The Senate and House membership remain fractured over how - to address the uncertainty created by the Supreme Court's decisions to toss out how waters are defined for permitting purposes. In the House, Chairman James Oberstar's (D -MN) bill, America's Commitment to Clean Water Act (H.R. 5088), is locked up in the Committee on Transportation and Infrastructure where differences between agricultural interests and the chairman have precluded committee markup of the bill. In the Senate, the companion bill, S. 787, was approved by the Committee on Environment and Public Works. S. 787 contained language preserving the regulatory waste treatment facility exemption that addressed CASA concerns that any redefinition avoids imposing needless permitting mandates. The bill's provisions also addressed CASA's concerns that any legislative fix avoid expanding the federal government's authority over groundwater supplies. CASA and others have expressed a desire to prevent the imposition of new mandates on point sources in an area of water pollution control that is reserved to the states. Unfortunately, due to a drafting error preserving the waste treatment exemption, the bill provides for precisely the opposite impact, capturing and imposing permit conditions on facilities that may have enjoyed the existing exemption. Consequently, this circumstance, along with opposition from western Senators that are concerned about potential impacts upon water systems being subject to permitting mandates, has conspired to block action in the Senate. Because of the legislative gridlock, speculation is rife that the U.S. EPA is planning to issue a new policy to guide its interpretation of the Supreme Court decision. In December 2008, the U.S. EPA issued guidance stating that only traditional waters would fall under the law's mandates with nontraditional waters such as ephemeral streams determined on a case -by -case basis. One revision may involve expanding the U.S. EPA's definition of precisely which waters will be subject to regulation under the Clean Water Act. This action, if taken, would likely precipitate a new round of litigation. Lack of Consensus On Climate Approach Drives Senate to "Energy Only" Legislation On July 27, Senate Majority Leader Harry Reid (D -N%o unveiled a limited energy proposal targeting the Gulf of Mexico oil spill response and energy efficiency measures. The initiative focuses on addressing liability for oil spills, home appliance energy efficiency, funding the land and water conservation fund, and promoting production of natural gas powered vehicles. It does not contain controversial climate change provisions, including a modified cap and trade greenhouse gas emission reductions mandate. Debate on the bill when it begins will likely carry over through most of September when the Senate returns from its summer recess. Hopes for a scaled -back greenhouse gas emissions reductions bill that would have addressed only electric utilities unraveled when Democratic Senators could not agree on a compromise approach. Instead of coming together to debate the bill in the face of almost unified Republican opposition to any such effort, the regional differences within the Democratic caucus derailed the effort, forcing Reid to fashion a bill that avoided emissions reductions and renewable energy standards mandates. Shortly after introducing the revamped approach, the bill was thrust into the proverbial crosshairs for provisions imposing new environmental controls to protect water supplies during the use of the natural gas exploration process known as fracturing. Because of this new policy wrinkle, it is unclear whether the minimalist approach embodied by the measure will garner enough support to be approved by the Senate in the few weeks that remain in the session. icy Clean Water SRF Reauthorization Remains Frozen in Senate Renewal of the Clean Water Act's state revolving loan fund program (SRF) remains in gridlock over mandates to impose prevailing wage mandates (Davis- Bacon) on SRF funded projects. The Senate Committee on Environment and Public Works approved a five -year renewal of the program as part of S. 1005 months ago. However, the bill was promptly held from receiving Senate floor passage when Members objected to the mandate. Since this dispute arose, the bill's progress has been further stymied by the U.S. EPA's recently published Needs Survey that details the level of POTW construction needs throughout the country. As a result, the carefully crafted state SRF allocation formula is now subject to debate from states that believe the survey illustrates the need to readjust the formula to account for the increased funding needs at the state level that were unknown when S. 1005 was approved by the Committee on Environment and Public Works earlier this year. Despite the hurdles, Chairman Barbara Boxer and Ranking Republican James Inhofe (R -OK) are on record on the - priority to pass the bill, Inhofe, who has consistently opposed Davis - Bacon, is committed to finding a solution to the dispute. Efforts to address the funding allocation formula may prove more difficult and any final formula will be decided in consultation with the House Committee on Transportation and Infrastructure when a conference committee is convened. The House approved its version of an SRF rewrite last year as part of H.R. STATE LEMLATNE ' SO T By Mike Dillon State Lobbyist Budget D' All Over Again The State Constitution requires the California legislature and Governor to have a Budget signed and in place by July 1, the start of the fiscal year. Once again the legislature has missed the annual deadline, and to add insult to injury, the legislature then left town to embark on a month -long "summer recess." The four legislative leaders and members of the Budget Conference Committee remained in Sacramento to continue brokering the terms of a possible budget deal to close the $19 billion deficit, but several legislators involved in the negotiations called one of the meetings, "a waste of time, with talks that are getting us nowhere." At issue is the highly partisan nature of the talks, with Democrats protesting Governor Schwarzenegger's attempts to severely cut health and human services programs and K -12 education, while Republicans will resist any calls for tax increases or the suspension of tax breaks for corporations. In late July came rumors that the two leaders of the Senate - Senate President pro Tem Darrell Steinberg and Senate Republican Leader Dennis Hollingsworth - had been making progress in formulating a Budget proposal. It was suggested that the two leaders had become frustrated with the intransigence of their leadership colleagues in the Assembly and decided to produce a package themselves that would be voted on in the Senate and then sent to the Assembly for a vote. The Sacramento Bee recently reported, "As for the Assembly, Republicans - and some Democrats, privately - have criticized Assembly Speaker John Perez for adhering to a union - backed proposal that relies on dubious borrowing." The Speaker's complex proposal seeks to borrow approximately $9 billion by securitizing (borrowing against) the California Beverage Recycling Fund, and then enacting a $900 million annual oil severance tax in order to pay back Wall Street. Even the state's Attorney General, Jerry Brown, opined that the plan likely wouldn't pass constitutional muster. In the meantime, as long as there is no Budget in place, certain state vendors are not getting paid and IOUs could be issued in late August to schools and local governments when the cash flow of the state becomes dire. On July 28, the Governor, in his frustration, issued an Executive Order ordering state employees to be furloughed again three days out of the month. The Governor has also stated that he will not sign any budget that does not include pension reform and tax structure reform, thus potentially delaying even further an agreement with Democrat and Republican leaders. Appearing before the Los Angeles Chamber of Commerce recently, Governor Schwarzenegger stated that he would not sign a Budget that did not include reforms he requested, and added that he would rather wait to let a new Governor sign a Budget if his terms were not met. 110) l j[1. Bills have continued to move in both houses, and must reach �C�'1- �•��{, the Governor by the bill deadline of August 31 for consideration. Following is a number of bills CASA has actively monitored f,a�9t�Qr., throughout the 2010 Legislative Session. The End Of Session Looms Near On August 2, the legislature returned from the "summer recess," and the Appropriations Committees in both houses began processing hundreds of bills with fiscal implications. The Senate Appropriations Committee, for example, considered 324 bills total at its August 2 hearing, and due to the state's fiscal condition, the majority of those bills requiring state General Fund appropriations, will not go forward this year. The bills that are successful in passing out of the fiscal committees will then head to their respective Floors, along with other policy bills that are currently scheduled, for Floor votes. It is important to note, however, that the legislature will adjourn and must conclude business for the two -year 2009 -2010 session, on Tuesday, August 31. The two houses must gavel down at midnight on the 31 and they cannot return to consider additional bills, such as Budget related legislation, unless they convene a "special session" of the legislature. AB 815 (Caballero) - Complete and Accurate Plans and Specs - Next Year? This bill, originally authored by Assemblywoman Fiona Ma, previously related to public contracts, and required full, complete, and accurate plans and specifications, and was strongly opposed by CASA. The bill had been introduced, passed, and vetoed in 2008 as AB 983 (Me), pending the outcome of an outstanding court case (LA Unified School District v Great American Insurance). Because the lawsuit remains unsettled, AB 815 was "gutted and amended" in late June, and is now a completely different bill, with a different author, and is unrelated to the initial content of the bill. CASA suspects that the language regarding full, complete and accurate plans will resurface upon the conclusion of the pending court case, with legislation likely to be introduced again next year. AB 846 ITorrico) - Civil Penalties Subject to Inflation - OPPOSE This bill would require numerous state agencies, including the State Water Resources Control Board, to update the maximum and minimum amounts of specified civil and administrative penalties for inflation. The bill is sponsored by the Natural Resources Defense Council. CASA has testified in strong opposition to the measure, and argued that AB 846s one - size- fits -all approach would fundamentally alter how the State and Regional Water Boards calculate penalties without any corresponding environmental benefit. The bill failed the Senate Governmental Organization Committee on June 29. The committee consists of 11 members, but Assemblyman Torrico could only secure five "aye" votes. AB 1975 (Fong) - Water Charges and Meters for Multiunits - WATCH, IF AMENDED This bill in its original form would have required all water purveyors to install water sub - meters in individual apartment dwellings as a condition for new water service, and include sewer service as a metered charge CASA actively opposed the bill in its original form, and after explaining the complications of metering sewer service to the author, amendments were taken to exclude sewer service from the bill. The bill has already been amended five times, and as of this writing, significant new amendments are proposed. Specifically, the amendments would: 1) Require meters or submeters in newly constructed multiunit residential structures; 2) Require the Department of Housing and Community Development (DHCD) to convene a task force to develop recommendations for legislation to establish standards and procedures governing the practice of assessing and charging occupants of multiunit rental structures for water and sewer usage by building owners 3) Prohibit an owner of a rental structure in which a water submeter was installed after the effective date of the bill from charging occupants for water usage or sewer services based upon the water charge, until legislation is enacted based on the DHCD regulations. While most CASA members strongly object to "volumetric pricing," AB 1975, as amended, does not place any additional requirements on wastewater agencies. CASA has taken a "watch, if amended" position on the bill. The author and sponsors have agreed to CASA's request to add a wastewater representative on the task force that will develop recommendations for legislation. The bill is sponsored by the Sierra Club, and is supported by the Association of California Water Agencies, the California Municipal Utilities Association, and many individual water agencies. AS 2182 (Huffman) - Contractual Assessments for Septic and Sewer Improvements - SUPPORT This bill would allow for financing for residential septic and sewer improvements via contractual assessments. continued on page 12 �j1 STATE LEGISLATIVE REPORT CONTINUED While the bill easily passed all policy and fiscal committees in the Assembly, concerns were raised in the Senate Local Government Committee on the grounds that tacking additional taxes on distressed properties could significantly decrease the value of the residence. At the time, the committee was considering a similar measure, allowing for assessment agreements to be used for seismic safety improvements. Current law already allows for contractual assessments to be utilized for both water and energy efficiency improvements. Committee Vice Chair, Senator Kehoe, argued for some sort of mechanism to make sure that a homeowner didn't compound too many of these assessments. Subsequent to the Senator and other committee members raising these concerns, amendments were taken in the bill to limit the amount allowed for contractual assessment to not exceed 5 percent of the total assessed value of the property. The bill passed out of the Senate Local Government Committee and will next be heard in the Senate Appropriations Committee. CASA has been in strong support of the measure throughout the legislative season. AS 2256 (Huffman) - Product Labeling - Flushable Products - SUPPORT As we have reported throughout the year, this bill would require consumer products labeled as "sewer and septic safe," to be tested and documented as such, based on industry standards. In the Senate Business and Professions Committee, CASA and the League of Cities testified in strong support and explained the growing problems facing treatment facilities related to these products. Unfortunately, the bill continues to be opposed by Kimberly - Clark, the Chamber of Commerce, and INDA (Association of the Nonwoven Fabrics Industry). The bill had some trouble in this business friendly committee and failed passage on a vote of three to three. "Reconsideration" was granted and the bill eventually passed out of committee in a subsequent hearing a week later on a vote of 5 -2, after more talks with Senators. Unfortunately, the bill was "double- referred" in the Senate and time ran out before the bill could be heard in the Senate Environmental Quality Committee. Assemblyman Huffman and his staff have indicated they will again address the issue next year. CASA, in the meantime, has been working collaboratively with Southern California Alliance of Publicly Owned Treatment Works (SCAP), INDA, and Kimberly - Clark, and has facilitated dialogue between industry representatives and CASA member agencies. Central Contra Costa Sanitary District (CCCSD) and Kimberly - Clark, working in conjunction with the University of California, Berkeley, have begun preliminary sampling of materials causing issues with clogged screens, "ragging" of pumps, and other problems attempting to be addressed by this measure. Interestingly, according to CCCSD's General Manager Jim Kelly, the preliminary sampling seems to indicate that while 10 percent to 15 percent of the problems stem from so called "flushable" products, the majority of the problem is the result of disposable, but non- flushable, products in the waste stream (i.e. household cleaning wipes, paper hand towels, etc.). It is possible that the focus of the problem, and.potential legislation, may shift to the marking of non- flushable products in future discussions. Thank you to all of the agencies who responded to our request for information relating to problems with " flushable" products. Many of the examples and pictures we-received were used during our testimony. SS 972 IWolk) - Design Professionals: Indemnity - OPPOSE This highly controversial bill is sponsored by the American Council of Engineering Companies, which expressed strong concerns that existing contractual indemnity obligations, routinely included in public works contracts, are impossible or costly to insure because of the nature of the commercial insurance products available to them. CASA, along with other local government organizations, and numerous private contractor and subcontractor organizations, have been actively opposing the measure. Recently, Senator Wolk substantially amended SIB 972 to a skeletal form in order to meet the June 2 policy committee deadline and to allow the opposing parties to continue discussing the issue. While local government organizations went "neutral" on the bill as amended, and pledged to continue working with the author and sponsor, the construction employers association, engineering contractors, sheet metal contractors, and others continued to oppose the bill in committee, with one lobbyist commenting that the sponsors of the bill, "Carve out one party and stick it to everybody else." Consequently, while the bill has been completely amended to a skeletal form, it is still considered a "work in progress," and stakeholders have indicated that acceptable amendments are being discussed that may eventually be included in the bill. CASA's position remains "oppose," based on the previous version of the bill, and will be revisited when the aforementioned amendments become available. The bill passed out of the Assembly Judiciary Committee on a 9 -1 vote with the Chair indicating that if the bill is subsequently amended, the author has pledged to return for a special hearing on the bill in the Assembly Judiciary Committee. SB 1284 fDuchenv) - Mandatory Minimum Penalties - SUPPORT This bill makes several changes to current mandatory minimum penalty laws. ACWA, along with CASA's Legal and Regulatory Affairs Director, Bobbi Larson and others have been heavily involved in crafting the legislation and getting it passed through policy and fiscal committees. The bill most recently passed out of the Assembly Judiciary Committee and next heads to the Assembly Appropriations Committee. Of benefit to CASA members is a revision to the current law that would allow a Regional Water Quality Control Board (RWQCB), after a public hearing, to extend the time schedule for bringing a waste discharger into compliance for an additional five years, to a possible total time schedule of ten years if the discharger can demonstrate that additional time is necessary in order to reach compliance with effluent limits. Thanks to the strong authorship of Senator Denise Ducheny, the bill has received bi- partisan support and is expected to reach the Governor's desk. AS 2283 (Miller) - Alkaline Hydrolysis (Rio - Cremation) - WATCH This bill was brought to the attention of Assemblyman Miller by a mortuary in his district. The bill, with the support of the California Funeral Directors Association, went through the Assembly unnoticed until an article in the Sacramento Bee called attention to the Alkaline Hydrolysis (also known as Bio- cremation) process. Without going into a lot of detail, which our readers would likely prefer, the new process involves placing a body in a sealed container with Potassium Hydroxide (KOH), with approximately 100 -120 gallons of water. Under pressure, steam coils heat the water to 300 degrees with water jets creating a "whirlpool effect" inside the unit. After several hours, the effluent is drained into the community sewer, and the remains put through a cremation process, similar to the traditional cremation process. CASA initiated discussions with the Senate Environmental Quality Committee consultant who was seeking input as to how the disposal of the caustic chemicals may affect the wastewater treatment process. After referring the bill to the CASA Legislative Committee, the consensus was that a "watch" position was appropriate, with the understanding that any problems created by mortuaries could be regulated by local pre- treatment requirements. Subsequently, the Senate Environmental Quality Committee felt that the bill raised a number of issues and recommended the bill be held over for further review and a possible Interim hearing this fall. Recently, the committee consultants put together a meeting of various stakeholders, including CASA, to discuss issues ranging from PH14, worker safety, and bio- ethics. . Ruben Robles, Professional Civil Engineer with Sacramento Regional County Sanitation District, attended the meeting at CASA's request to assist with technical issues. SB 722 (Simitian) - Utilities: Renewable Resources - SUPPORT, IF AMENDED This bill, among other things, increases California's Renewables Portfolio Standard (RPS) goal from 20 percent by 2010 to 33 percent by 2020 and revises specified provisions of the existing FPS statutes. This controversial bill, similar to legislation vetoed by the Governor last year, was exhaustively vetted in June in the Assembly Utilities and Commerce Committee, where the author agreed to take amendments to alleviate some of the concerns of groups such as Sempra Energy and San Diego Gas & Electric. However, business groups such as the California Manufacturers and Technology Association remain opposed. Recently, Sharon Green and Mark McDaniel from LACSD and I, held a series of meetings with the author's staff and key legislative consultants regarding amendments for the bill. The amendments being requested will ensure that in- state distributed generation is fully eligible to participate in the Renewable Energy Credit (REC) program for Renewable Portfolio Standards compliance. If the amendments are accepted, and the bill is signed by the Governor, more than 30 CASA agencies that currently generate renewable energy that is used on- site (known as distributed generation or self generation) to power their treatment plants, would benefit. 0 PDWE By Roberta Larson Director of Legal & Regulatory Affairs Ordinance United States District Court Judge Gary Feess has scheduled a Status Conference in early August to allow the parties to advocate their preferred courses of action for resolving the challenge to the Kern County ordinance banning biosolids land application, known as "Measure E." The case is back before Judge Feess in the wake of the Ninth Circuit's dismissal of the federal Commerce Clause claims on prudential standing grounds. The District Court had invalidated the ordinance on a second ground —that Measure E violated the California Integrated Waste Management Act (CIWMA). Because the second ruling involves a State law claim, Judge Feess must now decide whether to exercise federal jurisdiction and reaffirm his determination the California statute preempts Measure E. CASA and its fellow plaintiffs are urging the Court to exercise supplemental jurisdiction over the State law claim and reaffirm its holding that the ordinance is invalid. If the Court adopts this course, Kern County likely appeal that ruling to the Ninth Circuit. Though Kern previously appealed the District Court decision that the ordinance is preempted by the CIWMA, and it was fully briefed and argued, the Ninth Circuit did not rule on the merits of that issue, instead remanding the case to Judge Feess to decide whether to exercise jurisdiction. Kern County will ask the judge to decline to retain the case, and instead allow the State law issue to be determined by the California courts. The District Court has the discretion to decide the state law claim in cases such as this, but may decline to exercise supplemental jurisdiction if the claim raises a novel or complex issue of State law. While the Ninth Circuit suggested in its remand order that the CIWMA preemption claims are "complex ", at least one of the judges on the panel expressed the view at oral argument that the issues were fairly straightforward. Moreover, nothing in Judge Feess' well reasoned opinion invalidating Measure E suggests that he found the state law issues particularly complex or unsettled. The District Court concluded "Measure E is inimical to the goals of the CIWMA, contradicts it, and is therefore preempted." Ninth Circuit Seeks Clarification from CA Supreme Court in Case Involving Retiree Medical Benefits A coalition of local government associations, including CASA, filed an amicus brief in the Ninth Circuit in October 2009 in support of the County of Orange in a challenge to the County's decision to alter its approach to retiree medical benefits. (Retired Employees Association of Orange County v. County of Orange.) For a number of years, the County of Orange allowed retirees to enroll in one of its group health plans upon retirement. Retirees paid the health insurance premiums at a rate determined each year by the Board of Supervisors. During this time, the Board "pooled" active employees with retirees, such that retirees would be subject to the same premiums as active employees. This had the effect of impliedly subsidizing retiree health premiums, which would otherwise (in general, and with various exceptions) be higher than active premiums. In January 2008, the Orange County Board of Supervisors decided to "split the pool," such that retirees were rated separately for health insurance purposes. The Retired Employees Association sued the County in federal court, arguing they had a vested right to have their premiums subsidized by pooling. iaj The District Court ruled against the retirees and agreed with the County's argument that because the Board of Supervisors never made an express commitment to subsidize retiree rates through pooling, there was no enforceable contract right or "vested" right. The Court rejected the retirees' theory that such rights could be proven by implication, and the Retired Employees Association appealed. On June 29, the Ninth Circuit panel considering the appeal stayed further proceedings in the federal Court of Appeals and certified the following question to the California Supreme Court: "Whether, as a matter of California law, a California county and its employees can form an implied contract that confers vested rights to health benefits on retired county employees." The retirees contend that the County's revocation of the pooling arrangement that had prevailed from 1985 through 2007 violates the constitutional prohibition on the impairment of the obligation of contracts. In the certification order, the Ninth Circuit panel noted that to assert a successful Contract Clause claim, the plaintiff must establish that the County entered into an enforceable contract giving retirees a right to the pooling subsidy and that the County substantially impaired that right. Because the federal courts look to state law to determine the existence of a contract, and in light of the "great practical importance of the question," the Ninth Circuit indicated it would be more appropriate for California's highest court to answer this key question. CASA agrees that the case represents an issue of considerable importance to public sector employers, which prompted CASA to join the League of California Cities and the California Association of Counties in fling the amicus brief in support of the County. CASXs amicus brief asserted that commitments regarding compensation, both during employment and post employment, are subject to approval by the legislative body, and they must be approved - expressly - by the legislative body. The brief also noted that the public agencies represented by the associations have a genuine concern for the future health care needs of their retirees, but in an era of skyrocketing health care costs and severely diminished resources, public agencies must have the ability to adjust benefit plans to preserve the plans, while simultaneously balancing the preservation of other critical public needs. Califomia Supreme Court Rules Public Entities May be Liable for Failure to Disclose Material Facts h ✓"�' *r'r The California Supreme Y 9, 0! f , 4 � jir Court has held that a public entity may be r ''" obligated to pay additional compensation to a contractor for work that the public agency failed to disclose in the construction contract or other documents if the totality of the circumstances show that the school district knew or had reason to know that "a responsible contractor acting diligently would be unlikely to discover the condition that materially increased the cost of performance." (Los Angeles Unified School District v. Great American Insurance Company, ( - -- Cal.3d - - - -, Cal., July 12, 2010).) CASA had joined the League of California Cities and other local government associations in an amicus brief on behalf of the appellant school district, arguing that in order to prevail on a claim for breach of implied warranty for nondisclosure, a contractor would have to prove affirmative misrepresentation or active concealment on the part of the public entity. The Court's opinion staked out something of a middle ground between the position urged by LAUSD and local government amid and the opinion of the Court of Appeal, which broadly held a contractor need show only that the public entity knew material facts concerning the project that would affect the contractor's bid or performance and failed to disclose those facts to the contractor. The Supreme Court found that "a public entity may be required to provide extra compensation if it knew, but failed to disclose, material facts that would affect the contractor's bid or performance." Instead of adopting either of the "bright line" rules advocated by the parties, the Supreme Court crafted a multi- factor test under which a public entity may be held liable for nondisclosure only if all four of the following conditions are met: "(1) the contractor submitted its bid or undertook to perform without material information that affected performance costs; (2) the public entity was in possession of the information and was aware the contractor had no knowledge of, nor any reason to obtain, such information; (3) any contract specifications or other information furnished by the public entity to the contractor misled the contractor or did not put it on notice to inquire; and (4) the public entity failed to provide the relevant information." continued on page 16 LEGAL AFFAIRS UPDATE CONTINUED Thus, whether the contractor may recover for a public entity's non - disclosure of information that would affect the contractor's bid or performance depends upon the particular facts and circumstances of the case, including warranties or disclaimers, the information provided by the plans and specifications and related documents, the difficulty of detecting the material information, time constraints imposed on proposed bidders and whether the contractor made "unwarranted assumptions." Put another way, a public entity may be found liable for failing to disclose information when the "totality of the circumstances" is such that the public entity knows, or has reason to know, a responsible contractor acting diligently would be unlikely to discover the condition that materially increased the cost of performance. Challenge to Vacaville Order Proceeds in California Court of Appeal The State Water Resources Control Board was scheduled to file on August 12, 2010 its brief in opposition to the appeal filed by CASA and the City of Vacaville challenging the superior court decision upholding the Board's precedential order regarding interpretation and application of several water quality regulations, including the so- called "Tributary Statement." At issue in the appeal are: • Unlawful application of the "Tributary Statement" to set beneficial uses; • Unlawful use of the "Sources of Drinking Water Policy" to establish a blanket drinking water beneficial use; • Unlawful prospective incorporation by reference of drinking water maximum contaminant levels and pesticide analytical techniques. The theme of the CASA and Vacaville opening brief is that the State and Regional Water Boards have abandoned their statutory mandate to balance competing factors and interests in establishing water quality standards. Instead, for reasons of administrative convenience, the Boards have institutionalized short cuts that circumvent their responsibilities to the people of the State. CASA and Vacaville urged the Court of Appeal to (1) require the Regional Water Board to cease applying the unlawful water quality objectives and beneficial uses until the Boards have complied with the Water Code and other applicable laws, and (2) require the State Water Board to vacate the relevant provisions of the precedential Vacaville Order. CASA and Vacaville will have an opportunity to reply to the State's brief, and oral argument in the case will follow this winter. COMMUNICATIONS CORNER Social Media & Your Public By Lois Humphreys, Principal, TRG & Associates The evolution of social media (Facebook, Twitter, Linkedln) as outreach tools have brought new opportunities to public agencies to connect with their constituencies. Instead of relying upon traditional media outlets, you can reach stakeholders without gatekeepers carrying your message. If traditional media isn't covering your story or. disseminating misinformation, you have a forum with social media to control your own message. Participating in social media networks indicates a willingness to engage in a two -way conversation, openness to feedback and dialog. It brands your organization as trusting and transparent. Your agency can share helpful information while providing a forum to allow you to get to know your constituencies. You can ask questions, post surveys and interact. Information might include specifics about disposing of pharmaceuticals and fats, oils and grease, and information about community events, beach cleanups or even nature walks at a lagoon. Tips like proper disposal of hazardous wastes and chemicals, and who to call if your sink or toilet backs up, can help your ratepayers learn about important safety information. Don't forget to publicize the fact that you have a presence on Facebook or another social network. Link your Facebook page directly from your website, advertisements, bill inserts and on printed materials. It takes a while for followers to grow but if people find your information interesting and useful, they'll continue to check back. You'll need a central point person to funnel postings, but it's more interesting if numerous people in your organization contribute. It's important to have that point person monitoring the interactions frequently, to respond to criticisms, illuminate misunderstood information, or remove abusive postings. We find that a minimum of weekly postings and maintenance is necessary to keep fans coming back - you may need to spend about 30 minutes or so per day to stay current. To maintain transparency, you shouldn't remove every single complaint or negative posting, but you should be checking the site often to respond quickly in such cases. The interactive nature of social networking is what makes it work. You'll need to think carefully about how to use social networks before jumping in, but once you're there, you'll reap the benefits of improving communications with the constituencies you serve. o �I'I Ill:; 8 k � t 3� 1101 �AlE TfiN By Greg Kester Biosofids Program Manager 'it ase not.; ii,at a9# ct <he itern:a dicc0ssa7 tadlota: hnve been presented in moro detail via th CASH biosolids listse i. Should YOU wish to be subscriht:d to that communication tool please .simply send an e -m ul request to meat gkasrer@ casaweb.org) San Francisco PUC Update on Compost Giveaway Program San Francisco PUC analyzed seven off the shelf compost products along with its own biosolids compost, for 127 different constituents to offer a comparative perspective of product quality. Analyses' were performed by labs certifed by the California Department of Public Health (CDPH) Environmental Laboratory Accreditation Program (ELAP). The test results showed all products to be comparable and most constituents were not detected. All results were far below federal, state, and world health organization standards. This is the latest step as the PUC responds to allegations from organizations opposed to their compost giveaway program. Next up will be a special meeting of their Commissioners where this and other data will be presented so a decision can be made regarding the future of the giveaway program. Alexis Strauss, Water Division Director for U.S. EPA Region 9, CASA, and several University Researchers are expected to testify before the Commission in late August. CASA had requested EPA support and reaffirmation of its land application and public distribution program, in a letter to Assistant Administrator (AA) for Water Pete Silva. A disappointing response was received from AA Silva while he did reiterate that all regulated management options were equally supported by the U.S. EPA. Support in the form of letters from across the state and nation has continued to be received by San Francisco Mayor Gavin Newsom. Water Environment Federation, at the request of California Water Environment Association, released a positive fact sheet on the benefits of biosolids compost. U.S. EPA Proposed New Cancer Slope Factor for Inorganic Arsenic CASA provided comments opposing the U.S. EPA's proposed new Cancer Slope Factor (CSF) for inorganic arsenic on April 20. The new CSF would represent a 17 fold increase and would likely have significant adverse impacts to recycled water, effluent, drinking water and biosolids standards. CASA's view was that the scientific basis for the proposal was flawed and mis- represented. The Science Advisory Board (SAB) held a special meeting April 6 and 7 and heard testimonies from a number of scientific experts opposing the proposal. The SAB had released a draft report prior to the April meeting expressing support for the proposal but at its subsequent June meeting, declined to finalize that report and will take up the matter again at a September meeting. This would seem to indicate that the experts who testified in April as well as the comments received by the U.S. EPA have had some influence on the SAB. The proposal remains in limbo for the time being and we remain hopeful that it will be re- evaluated. California Department of Food and Agriculture Proposed Regulations CASA provided comments to the California Department of Food and Agriculture (CDFA) in July on its proposed regulations for renderers, collection centers, dead animal haulers, and transporters of inedible kitchen grease. The proposed regulations could be interpreted as requiring POTWs or compost facilities who accept fats, oils, and grease (FOG) or food waste (especially from meat processing) to obtain a renderer license from CDFA, CASA therefore suggested language to explicitly exempt POTWs and composters from these requirements and also requested a public hearing. We understand that public hearings will be scheduled and remain hopeful that CDFA will articulate that it was not their intent to license POTWs or composters. (ri1 U.S. EPA Proposed Definition of Non - Hazardous Secondary Materials That Are Solid Waste The U.S. EPA published the proposed definition of solid waste which includes "sewage sludge." CASA along with many affected entities and stakeholders submitted comments in opposition to their approach. If adopted as proposed the definition would have the following key impacts: 1. Defines sewage sludge as non - hazardous solid waste. This means that combustion units fie. incinerators) which combust sewage sludge will be regulated under Section 129 of the Clean Air Act rather than Section 112. Sewage Sludge Incinerators (SSI) have historically been regulated under Section 112 through the risk based Part 503. NOTE: Section 129 requires the U.S. EPA to define Maximum Achievable Control Technology (MACT) standards for SSIs. This will come under a separate proposal expected sometime this summer and finalized by December 2010. As of now, we believe that the U.S. EPA will develop separate MACT standards for Fluidized Bed and Multiple Hearth Incinerators. However, the U.S. EPA is limited to only nine facilities from which it can request information. They did so and have received data from five Fluidized Bed and four Multiple Hearth incinerators. This is a minute subset on which to base MACT standards. The U.S. EPA is accepting further information being provided by the National Association of Clean Water Agencies from some of the other 225 SSI's operating in the nation. The U.S. EPA is forced to develop the MACT standards based on the 12 percent of the highest performing units. The conclusion on whether to classify a material as a non - hazardous solid waste is based on whether the material fails to meet any one of three sets of 'Legitimacy Criteria' as follow: a. Managed as a valuable commodity. b. Have meaningful heating value and be used as a fuel in a combustion unit that recovers energy. c. Contain contaminants at levels comparable to those in traditional fuels that the combustion unit is designed to burn. In the U.S. EPA's proposal, they opine that sewage sludge FAILS each of the three legitimacy criteria for the following reasons: a. The U.S. EPA believes sewage sludge burned without energy recovery (see b.) in an incinerator is discarded and not handled as a valuable commodity. b. The U.S. EPA believes that energy is recovered in the form of usable heat from SSI's via waste heat boilers. However, they do not consider waste heat boilers legitimate energy recovery devices because they receive their energy input from the combustion of off -gases via a separate combustion chamber, even though they acknowledge waste heat boilers are useful in providing energy in the form of steam. To be a legitimate energy recovery device they argue the combustion unit and primary energy recovery system must be of integral design and thus a combustion chamber that is connected by a duct to a waste heat boiler or heat exchanger does not qualify as a legitimate energy recovery unit. They further argue that even if heat and /or energy are recovered, the primary purpose of the incinerator is to burn waste for disposal purposes. c. The U.S. EPA compares contaminant levels in sewage sludge to coal and concludes that contaminant levels are higher in sewage sludge. It should be noted that they use the 1982 40 City Study and the 1988 National Sewage Sludge Survey as the basis for the contaminant levels in sewage sludge. It is inexplicable why they did not use the 2006 -2007 Targeted National Sewage Sludge Survey for this purpose. Further, they do not provide a reference for the coal contaminant levels to which they make the comparison. 3. They do explicitly state that this definition applies only to sewage sludge that is combusted and they are making no determinations that cover other management practices such as land application. Thus, I do not believe there will be any impact to other biosolids management practices. Comments were still made to request verification of this assumption. 4. They do not define gasification units as incinerators and thus this definition does not apply to them. 5. It is unclear whether they consider methane from anaerobic digestion or from landfills to be legitimate secondary fuel so comments were made to request explicit articulation that biogas and landfill gas are legitimate fuels. In addition to the obvious impacts to the two SSI's in California, this proposal could also have negative ramifications on the many of the continued on page 20 BIOSOLIDS BULLETIN%Oi`l !d ongoing or planned biosolids to energy projects. Such impacts would primarily be perceptual in nature since this proposal goes to great length to distinguish "legitimate" alternative fuels from "sham recycling." Since sewage sludge is deemed not to be a legitimate fuel, it falls under the category of sham recycling, which negates the energy recovery potential we know exists in biosolids. UC Davis Biosolids Compost Speciation of VOCs and Reactivity Determination Underway The research summarized in the January conference program to be conducted by UC Davis has begun. Dr. Peter Green is looking at different Volatile Organic Compounds (VOC) that are emitted during the compost process to determine each ones reactivity or ability to act as precursor to the ground level formation of ozone. The work is being funded by CASA members including Orange County Sanitation District, City of Santa Rosa, Los Angeles County Sanitation District, City of Los Angeles, City of Fresno, Napa Sanitation District, and Synagro, as well as the Bay Area Clean Water Agencies and the Water Environment Research Foundation (WERF). A Project Sub Committee (PSC) has been formed, consisting of myself (Chair), Stan Tong (U.S. EPA Region 9 Air Division), Jim Swaney (San Joaquin Valley Air Management District), Alan Hais (WERF), Dr. Sally Brown, University of Washington, Peggy Leonard (King County Washington), and Geoffrey Kuter (AgreResource). The work plan was slightly modified based on review comments from the PSC. Dr. Green took samples at the first of two facilities during the week of July 19. The second sampling event will take place in late August. A final report will be submitted in early 2010. We are especially pleased to have key regulators on the PSC. ...................................................... ............................... San Luis Obispo County Ordinance Update The San Luis Obispo County Board of Supervisors adopted very favorable language, which we had advocated for, with respect to biosolids use on open space land in their approval of the Conservation and Open Space Element County master plan in late April. The County Health Department is now seeking input from wastewater agencies within the county and CASA as they develop a permanent ordinance for biosolids use in the county. We are arguing that the State General Order be the basis for their ordinance and to allow all biosolids generated in the county to be used therein. The opportunity to provide such input and to have open communication with county officials is truly appreciated and we remain hopeful that a very workable and reasonable ordinance will be developed. ......._...... __.....__.........._._.__ ...... ........................11.1.1. CalRecycle Tours Wastewater Plants with CASA In an ongoing effort to inform CalRecycle about wastewater treatment plant operations and how FOG and food waste is received at them, a tour was held on July 21. CASA took two representatives from CalRecycle to San Francisco PUCs Oceanside plant to view their BioDiesel pilot plant, where vehicle grade fuel is produced from brown grease. We also went to meet with and view the FOG receiving stations in Millbrae and Watsonville, as well as the food waste receiving facility located in Watsonville. Plant managers and personnel provided the tours and exceedingly valuable information to the regulators. This was an invaluably important opportunity and all three facilities should be warmly thanked for their efforts. The plants were immaculate and a very favorable impression was presented. We believe this will pay dividends In how CalRecycle will regulate such receiving stations and their communication to Local Enforcement Agencies (LEAs) on whether or not Process Facility/Transfer Station permits are necessary. Our hope is that they will definitively conclude they are not necessary and communicate this to LEAs. Statewide training sessions for LEAs will be held by CalRecycle this fall and you will be invited. Please stay tuned for more detail on the training and how to register. Pacific Southwest Organic Residuals Symposium The Annual Pacific Southwest Organic Residuals Symposium (PORS) Conference will be held this year September 14 and 15 in Sacramento. It will again be sponsored by U.S. EPA Region 9, UC Davis, CASA, the Central Valley Regional Water Board, the San Joaquin Valley Air Management District, Western United Dairymen, the U.S. Department of Agriculture —the Natural Resource Conservation Service, and a number of other stakeholders in organic residuals management. A featured area of coverage will be focused on finding solutions to cross media regulatory impacts in an effort to find net environmental benefits. o ! zj p� .. California Association of Sanitation Agencies c AsA A AWARD APPLICANTS Thank you for participating in the 2010 CASA Achievement Awards Program. The awards program recognizes achievements of public agencies and associates in furthering the mission of the wastewater industry and. CASA. The program is designed to honor flour categories of achievement and /or performances each calendar year. CASA recognizes the rapidly growing importance of sustainability in our industry. Technical Innovation and Achievement Award • East Bay Municipal Utility District - Characterizing the Quality of Effluent and Other Contributory Sources during Peak Wet Weather Events • Encina Wastewater Authority - Installation of a Triple -Pass Rotary Drum Heat Dryer That Produces Class A Biosolids Pellets • City of Los Angeles, Department of Public Works, Bureau of Sanitation - Terminal Island Renewable Energy Project (T. I. R. E) • Rancho California Water District - Santa Rosa Water Reclamation Facility Solar Power Project • Truckee Sanitary District - Photovoltaic Power Project • Ventura Regional Sanitation District - Biosolids Drying and Renewable Power Generation Facility • Western Riverside County Regional Wastewater Authority - 1 MW Solar PV System Public Outreach /Education Award • Costa Mesa Sanitary District - Telephone Book Recycling Program for Schools • Irvine Ranch Water District - Student Education Program • Leucadia Wastewater District - District's 50'h Anniversary and Dedication Event • Midway City Sanitary District - School Recycling Outreach Program • Sacramento Area Sewer District - Central Trunk Sewer Rehabilitation Project • Stege Sanitary District - Environmental Education Program in Partnership with Kids For The Bay • Veolia Water & City of Richmond - Richmond STAR Job Training Program (Safety, Training, Accountability, Reliability) Organizational Excellence Award • South Bayside System Authority - Capital Improvement. Owner Controlled Insurance Program Outstanding Capital ProjectAward • East Bay Municipal Utility District - Richmond Advanced Recycled Expansion (RARE) Water Project • Encina Wastewater Authority - Heat Dryer • City of Petaluma - Ellis Creek Water Recycling Facility • Sacramento Area Sewer District - Central Trunk Sewer Rehabilitation Project • San Elijo Joint Powers Authority - Performance Optimization of the Activated Sludge System • Truckee Sanitary District - Donner Lake Lift Station Overflow Mitigation Project • Vallecitos Water District - Meadowlark Water Reclamation Facility Expansion 2010 CASA Achievement Awards Committee • Chair Ed McCormick, East Bay Municipal Utility District • Vice Chair Jeff Reinhardt, Las Virgenes Municipal Water District • Be T Than, Central Contra Cost Sanitary District • Kathy Hopkins, Fairfield- Suisun Sewer District • E.J. Shalaby, West County Wastewater District l i� . ,•I iT., `il "_uJiil CLIMATE CHP By Jackie Kepke, CWCCG Program Manager Updated Draft Regulation for California Greenhouse Gas Cap and Trade Program Expected Soon On November 24, 1 2009, the California Air Resources Board (CARB) released their Cap and Trade Preliminary Draft Regulation, and we are still expecting an updated draft. Cap and trade is a market - based regulatory framework in which regulated entities are given "allowances" for their CO emissions. To meet compliance obligations, regulated parties can reduce their own emissions, purchase allowances from other entities within the cap, or purchase 'offsets," or emission reductions made by entities outside the cap. The current draft regulation limits how much an entity can rely on offsets for compliance. This topic has generated much discussion in regulatory workshops. What constitutes an offset and how offsets will be regulated is an area of focus for the California Wastewater Climate Change Group (CWCCG), as we are looking to preserve all opportunities for wastewater agencies to play in this market by developing CO reducing projects. In a recent workshop focused on offsets, CARB staff listed the wastewater sector as a potential source of offsets. In order for a project to qualify as an offset, it must be done according to an approved protocol. CARB is still fleshing out their thinking with respect to how these protocols are derived. It is likely that CARB will link to protocols developed by groups such as the Climate Action Reserve and the Clean Development Mechanism in addition to developing their own offset protocols. As a result of our communication efforts, CARB has identified the wastewater sector as an area for potential protocol development in 2011. CWCCG is continuing to work with CARB staff to promote the development of protocols that will be helpful to the wastewater community. Protocols we are recommending for development include: • Carbon sequestration resulting from land application of biosolids • Avoidance of fossil fuel use in the production of inorganic nitrogen fertilizer when replaced with biosolids as a soil amendment • Replacement of fossil fuel with digester gas for heating and energy generation. While the use of digester gas for cogeneration is practiced at many wastewater plants, there are still many others that flare their digester gas. With the added financial incentive of an offset, these facilities could use cogen systems instead of flares, displacing natural gas. • Connection of septic system communities to centralized sewer systems. Data shows that septic systems release considerably more methane than centralized wastewater collection and treatment. We are hoping to meet with CARB staff shortly to lay out a path for development of one or more wastewater protocols. The draft cap and trade regulation contains a provision to exclude emissions from biomass from compliance obligations under cap and trade. This means that emissions from combustion of digester or landfill gas would not count toward the 25,000 metric ton CO, threshold set forth in the regulation. This is a win for CASA and CWCCG, as very few wastewater agencies would trigger into cap and trade based on their fossil fuel combustion alone. Only entities outside the cap can generate and sell offsets as described. The latest information on the draft regulation can be found at htto: / /www.arb. ca.gov/cc/capandtrade/capandtrade.htm The public release of the final draft cap - and trade regulation is planned for October 2010, with Board hearing in November. The cap and trade program would be launched in the beginning of 2012. EPA Tailoring Rule and Call for Information on Biogenic Sources On May 13, the U.S. EPA published their final Tailoring Rule. This rule lays out Prevention of Significant Deterioration (PSD) and Title V Major Source permitting requirements for greenhouse gases (GHGs) under the Federal Clean Air Act. It is called the Tailoring Rule because it "tailors' the thresholds from the usual 100 or 250 tons/ year thresholds used in the Clean Air Act for criteria pollutants to higher thresholds that are more implementable for GHGs. CWCCG submitted comments on the draft rule in December. While some changes were made along the lines of our comments (for example, increasing the tons /year threshold), unfortunately, the U.S. EPA has not distinguished between anthropogenic and biogenic emissions in the rule. This means that all emissions count toward the thresholds and requirements, regardless of whether they stem from fossil fuels or biomass fuels. This rule has potentially significant implications for wastewater agencies. In the first step, which will begin in January 2011, agencies that already operate under Title V permits will now have to address GHGs as they renew or revise their permits. Requirements may include monitoring and Best Available Control Technology (BACT) limitations. BACT for GHGs has not yet been defined. In the next step, which takes effect July 2011, a change in the method of operation of an existing major source that results in a net increase of at least 75,000 tons/ year of CO2e will be subject to PSD review for GHGs. Step 2 will also add to Title V coverage any GHG source with CO2e emissions of 100,000 tonsyear or more that did not previously have a Title V permit. More information on the rule can be found at htto: / /www.er)a.gov /nsr /actions. html #mav10 This rule is extremely controversial, and lawsuits have been filed by both environmental and industry advocates. In addition, several Federal legislators, most notably Senator Rockefeller, have proposed legislation preventing EPA from implementing the rule. CWCCG will continue to track these developments, as well as any efforts to define BACT. In the meantime, recognizing the potential concerns with their approach of lumping biogenic emissions in with anthropogenic emissions, the U.S. EPA has issued a Call for Information on approaches to accounting for GHG emissions from bioenergy and biogenic sources. Their intention is to use this information in developing an approach for these emissions under the PSD and Title V Programs. The U.S. EPA is soliciting two types of infor- mation: (1) Technical comments and data sub- missions related to the accounting for GHG emissions from bioenergy and other biogenic sources with respect specifically to the PSD and Title V Programs, and (2) more general technical comments and data submissions related to accounting for GHG emissions from bioenergy and other biogenic sources without reference to specific rulemaking efforts. Their interest includes the following questions of great interest to the wastewater community: • What criteria might be used to consider biomass fuels differently with regard to the Best Available Control Technology (BACT) review process under PSD? • How could the process of determining BACT under the. PSD program allow for adequate consideration of the impacts and benefits of using biomass fuels? Comments to EPA are due 60 days from the Federal Register notice, or Sept. 13. CWCCG will be preparing comments for submittal and also encourages CASA agencies to submit their own data and comments. If your agency will be submitting comments, you are asked to please provide '.. a copy to Jackie Kepke. ................................................. ............................... Renewable Electricity Standard In Executive Order 5- 21 -09, Governor Schwarzenegger directed CARB to adopt a regulation by July 31, 2010 requiring the state's energy utilities to meet a 33 percent renewable energy target by 2020. The proposed regulation and supporting Information can be found on the web at htto7//www.arb.ca.gov/reciacU201 0/res201 0 / res2010.htm In the Renewable Electricity Standard (RES) regulation, CARE plans to maintain the same eligible resources or fuels currently allowed under the existing Renewable Portfolio Standard (RPS). This is a good thing for the wastewater community, as eligible resources currently include biodiesel, biomass, digester gas, and landfill gas. Wastewater agencies are not directly subject to this regulation, which targets energy utilities. CWCCG's primary interest in the RES is the issue of renewable energy credits (RECs). At present, there is a lot of red tape surrounding who owns the RECs as a new project is developed. Under the CARB proposal, RECs i traded separately from energy generation would be eligible for the RES, thus un- bundling the RECs from the electricity itself and allowing wastewater agencies to sell l RECs generated by their renewable energy projects. Un- bundling of RECs is a very controversial topic, as it influences how out-of- state renewable energy can be used to satisfy California requirements. CWCCG will continue to advocate for a tradable REC market as a way to incentivize development of renewable energy at water and wastewater agencies. CARB had proposed its RES regulation for adoption at the July 22 Board meeting, however the politics regarding renewable energy policy have now come more directly into play. In a letter dated August 15, Governor Schwarzenegger requested that the Board delay hearings on the RES until its September meeting. The letter states, "I am encouraged that the approach you have developed will effectively further California's efforts to secure at least one -third of our energy needs from clean and renewable resources by 2020. In light, however, of ongoing discussions with legislative leaders to develop a bill that I can sign, I am requesting that the Air Resources Board postpone consideration of the proposal until your scheduled September hearing. If no legislation is enacted by that time the Board will be ready and able to adopt the regulations at that time." The letter refers to continuing efforts to get the Governor's office and the legislature to agree to renewable energy legislation. CWCCG is tracking several bills, most notably SB 722, that would set renewable energy policy. 0 California Association of Sanitation Agencies CASA 1215 K Street, Suite 2290 Sacramento, CA 95814 916.446.0388 phone 916.231.2141 fax wv4w.casaweb.org