BLUE SKIES… NOTHING BUT BLUE SKIES

SPENDING TAX POLICY INFRASTRUCTURE SENIOR REGULATORY REFORM MANAGEMENT RESILIENCY

INFRASTRUCTURE TRADITIONAL ROUTE SRF GRANTS HYBRID ROUTE WIFIA I-Bank ALTERNATIVE ROUTE PRIVATIZATION PUBLIC PRIVATE PAB’S

TRAINS, PLANES & AUTOMOBILES POLICY CHALLENGES White House LEVERAGE Private Dollars DEMOCRATS $1 TRILLION DIRECT SPENDING Budget Hawks oppose Tax Reform dictates COMPETING PRIORITIES RURAL COMMUNITIES VS. URBAN COMMUNITIES LEAD IN Drinking WATER ALTERNATIVE WATER SUPPLY WASTEWATER DRINKING WATER BUY AMERICA MANDATE TRAINS, PLANES & AUTOMOBILES

TAX REFORM IF WE DO MOVE INFRASTRUCTURE, BREADTH OF THE POLICY WILL DEPEND ON REVENUES DEDICATED TAX REFORM IS THE VEHICLE TO SECURE THOSE REVENUES IF YOU BELIEVE THE HEALTH CARE DEBATE WAS DRAMATIC, FASTEN YOUR SEAT BELTS BECAUSE TAX REFORM HITS EVERYONE AND EVERY PROGRAM FUNDING LEVEL ALSO, TIMING OF TAX REFORM IS A FUNCTION OF ARCANE BUDGET RULES THAT COMPLICATE CONSIDERATION BUT IT CARRIES RISKS — REMOTE BUT STILL THERE—AS IDENTIFIED BY THE REQUIREMENT FOR OFFSETS PROCESS REQUIRES months of negotiations OFFSET REVENUE LOSS STATE AND LOCAL TAX DEDUCTION TAX EXEMPT FINANCING REPATRIATION FOR INFRASTRUCTURE FUNDING

REGULATORY REFORM RULE REVISIONS CLEAN WATER RULE CLIMATE RULES RULE MAKING PROCESS 2 OUT AND 1 IN EXECUTIVE ORDERS Regulatory Budget REGULATORY REFORM IS THE ONE AREA THAT WE HAVE SEEN HUGE CHANGES TWO EXAMPLES CLEAN WATER RULE ROLLBACK AND REWRITE CLIMATE RULES PERHAPS EVEN MORE IMPORTANT ARE CHANGES TO RULE DEVELOPMENT AND E.O.’S E.O. ON REGULATORY BUDGET LIMITS ON NEW RULES GOVERNED BY COSTS

MANAGING THE FEDERAL BUREAUCRACY is it a BIG DEAL MANAGING THE FEDERAL BUREAUCRACY 577 KEY SENIOR POSITIONS 106 NOMINATions Pending 117 CONFIRMED 354 OPEN POSITIONS KEY APPOINTMENTS USEPA USBR OMB retirements agency reorganization I WILL NOT MINIMIZE THE IMPACTS OF PERSONNEL BEHAVIOR IN THE WHITE HOUSE BUT IS IT A BIG DEAL? FROM A POLITICAL OR MEDIA PERSPECTIVE YES, BUT ONLY BECAUSE IT HAS BEEN UNRELENTING SINCE JANUARY 20 BUT YOU NEED TO RECOGNIZE THAT WHITE HOUSE TURNOVER HAS BEEN, RELATIVELY SPEAKING, NOT MUCH OF AN OUTLIER COMPARED WITH OTHER WHITE HOUSES THE REAL MATTER IS WHY ARE WE SEEING CHALLENGES IN THE EXECUTIVE BRANCH

FISCAL YEAR 2018 BUDGET CONGRESSIONAL response ADMINISTRATION REQUEST NO CONGRESSIONAL AGREEMENT CURRENT YEAR SPENDING FOR MOST WATER PROGRAMS USEPA PROGRAM TERMINATIONS REJECTED WATER INFRASTRUCTURE PROGRAMS GENERALLY MAINTAINED IMPORTANT MESSAGE SOUGHT TRILLION IN CUTS OVER 10 YEARS $60 BILLION CUTS IN DOMESTIC $64 BILLION INCREASE DEFENSE TERMINATE DOZENS OF PROGRAMS

RESILIENCY CLIMATE REPORT BUDGETS SUPPORT INFRASTRUCTURE POLICY

LOOKING FORWARD BINARY CHOICE debt ceiling FY 2018 Budget Tax Reform Infrastructure

Upending the legislative and regulatory process Washington Update Upending the legislative and regulatory process Upending the legislative and regulatory process ENS RESOURCES, INC. ERIC SAPIRSTEIN Hilton HOTEL SAN DIEGO, CALIFORNIA AUGUST 17, 2017