J. Alan Roberson, P.E. ASDWA Executive Director Regulatory Implementation and Infrastructure Financing The States’ Perspective J. Alan Roberson, P.E. ASDWA Executive Director Association of State Drinking Water Administrators 1401 Wilson Blvd. - Suite 1225 - Arlington, VA 22209 - (703) 812-9505 - www.ASDWA.org

Association of State Drinking Water Administrators Presentation Outline Short SDWA & regulatory history The good news about the regulations National compliance costs of past regulations What regulations you may see from EPA soon(?) Financing Infrastructure States’ drinking water program Conclusions Association of State Drinking Water Administrators 1401 Wilson Blvd. - Suite 1225 - Arlington, VA 22209 - (703) 812-9505 - www.ASDWA.org

Three Iterations of the SDWA Initial 1974 SDWA set up the federal standard setting process Only a few regulations developed Congress grew frustrated & acted 1986 SDWA – prescriptive regulatory schedule EPA couldn’t meet deadlines 1996 SDWA - refined contaminant identification and risk management processes

Regulatory History 19 regulations for 91 contaminants from 1975-2013 Costs - $4.2 Billion/yr. (2013 $) Nine prior to 1996 Amendments Primarily numerical MCLs based on annual average of quarterly samples Some Treatment Techniques (TTs) Ten after 1996 Amendments Harder to treat contaminants and/or more complex regulations

Regulatory History (cont.) AWWA Webcast Program: 5/19/04 Regulatory History (cont.) Number of Regulated Contaminants EPA finalized 18 drinking water regulations between 1975-2006 Nine prior to 1996 SDWA Amendments NIPDWRs, Fluoride, TTHMs, VOCs, TCR, SWTR, Phase II & V Rules, and LCR Most regulations based on numerical MCLs using annual average of quarterly samples Nine after 1996 SDWA Amendments Arsenic, Radionuclides, SFBR, M/DBP Cluster - M/DBP Cluster – Stage 1 and 2 DBPRs, IESWTR, LT1 and LT2ESWTRs, and GWR Generally more complex regulations No new “contaminants” but significant burden Courtesy of Steve Via, AWWA

The Good News about the Regs Most of the major risks that we know about in drinking water have already been addressed 91 contaminants are regulated Initial disinfection requirements in 1989 to address bacteria, viruses, and Giardia Strengthened in 2006 to address Cryptosporidium Arsenic standard lowered from 50 ppb to 10 ppb in 2001 1991 Lead and Copper Rule lowered lead levels in water Disinfection by-products (DBPs) regulations are tighter and apply to all system sizes Lot of other common chemicals are already regulated National compliance is 92%-93%

Cost of Past SDWA Regulations Annualized Capital and O&M Cost ($ M/yr., 2013$, 3% discount rate) Surface Water Treatment Rule 1,007 Lead and Copper Rule 937 Stage 1 Disinfection By-Products Rule 872 Interim Enhanced Surface Water Treatment Rule 388 Arsenic 251 (Skip to #18 and #19) Filter Backwash 8 Fluoride 7 Total Compliance Costs for 19 Regulations - $4.62 Billion/yr. in 2013$, 3% discount rate

EPA’s Two Regulatory Priorities Lead Fallout from Flint is still ongoing Perchlorate Consent decree for proposal and final rule

Challenges with Lead Lead is #1 regulatory issue for EPA Fallout from Flint is still ongoing Ongoing sampling and public perception issues Sampling at schools is an ongoing issue Division of work between PWS, state, and school district 2016 – EPA Sampling Guidance Clarified some ambiguities EPA Guidance on Material Inventory Different from “representative sites” in 1991 LCR Some pushback from water systems

Lead (cont.) NDWAC Workgroup on Long-Term Revisions to the Lead and Copper Rule (LCR) EPA is working to incorporate recommendations into a proposal for 2017 What should systems & states do in the meantime? Some states moving forward with their own revisions now Are we going to see any more EPA guidance? Lead Service Line Collaborative More details in second presentation

Perchlorate Perchlorate has been on EPA’s “radar screen” since the 1996 SDWA Amendments Included in UCMR1 EPA worked with FDA to develop BBDR model Ongoing peer review EPA’s court deadlines Proposal in October 2018 Final in December 2019

Infrastructure Financing DWSRF looks to be OK in 3/16 “skinny budget” proposal DWSRF set-asides have become “core $” for state drinking water programs Any increase in DWSRF should carry over the set-asides DWSRF & CWSRF can point to job creation Will help in the budget battle in Congress

$ for State Programs Challenging to determine impacts from 3/16 “skinny budget” proposal Categorical grants proposed to be reduced But PWSS grants may be part of “Sophie’s Choice” Will have to see how the budget battle plays out in Congress Preserving PWSS grants & set-asides are ASDWA’s top two priorities

Conclusions Potential budget cuts to EPA Office of Water are problematic for all in the water sector Continuing to manage both SRFs Continuing to stand up WIFIA Developing regulations based on sound science The budget battle in Congress is going to get ugly “We live in interesting times”

Association of State Drinking Water Administrators Questions? Contact information arorberson@asdwa.org Direct line: (703) 812-9507 Association of State Drinking Water Administrators 1401 Wilson Blvd. - Suite 1225 - Arlington, VA 22209 - (703) 812-9505 - www.ASDWA.org