1. © 2014 Lathrop & Gage LLP 1 Environmental Trends Missouri Municipal Attorneys Association

2. © 2014 Lathrop & Gage LLP 2 Principal areas of interference  Wastewater treatment, sewers  Roadway construction  Stormwater, erosion control, development, pervious surface  Drinking water  Power plants, power generation (alternative energy), ash ponds, transmission corridor, GHG  Transportation (automotive, mass, alternative, GHG)  Refuse, landfill, recycling, energy, methane, hazardous materials  Pesticides, herbicides, fertilizers, insects

3. © 2014 Lathrop & Gage LLP 3 Number 1 Issue — Water  Greatest impact to the public consumer both by quality, quantity and rate.  Greatest change in status quo in the municipal environmental arena.  All areas are dynamic, all cost the consumer directly, all hard to predict.  Majority of the changes are driven from the Federal level by USEPA.  All areas are in flux — wastewater, stormwater and drinking water. New standards, new regulations and new rules.

4. © 2014 Lathrop & Gage LLP 4 Wastewater  Ammonia  Nutrients  Waters of the US  Growth (or lack thereof)  Difficulty of lagoons to meet standards  Sewer deterioration  SSOs and basements (and the liability that may attach, and the insurance that may not)  Rates, rates, rates (consequence of “political ratemaking”)

5. © 2014 Lathrop & Gage LLP 5 Stormwater, Erosion and Run-off  Progress to rainfall as a municipal pollutant  Construction as a environmental threat  Roadway, park and municipal construction  City as regulator  MS4  TMDL

6. © 2014 Lathrop & Gage LLP 6 Drinking Water  New standards and capital expenses  Increased laboratory requirements

7. © 2014 Lathrop & Gage LLP 7 Power Generation  GHGs /Coal  Ash Ponds  Alternative energy requirements  Transmission infrastructure

8. © 2014 Lathrop & Gage LLP 8 Transportation  Automotive  Mass transit  Alternative (pedestrians, bicycles)  GHGs

9. © 2014 Lathrop & Gage LLP 9 Refuse  Landfills  Recycling  Methane  Alternative energy  Hazardous materials

10. © 2014 Lathrop & Gage LLP 10 Chemicals  Pesticides and herbicides  Fertilizers  Insects (contrary wetlands demands)

11. © 2014 Lathrop & Gage LLP 11 The cost impact of environmental regulations on municipalities will continue to increase, with no end in sight.

12. © 2014 Lathrop & Gage LLP 12 The rate impact on municipal operations will continue to increase. Political ratemaking will only increase the problem.

13. © 2014 Lathrop & Gage LLP 13 The need to increase reserves for environmental costs on projects is strongly suggested, especially when moving dirt.

14. © 2014 Lathrop & Gage LLP 14 Waters of the U.S. rule IS a threat to property rights, to state rights and therefore subdivisions of any state.

15. © 2014 Lathrop & Gage LLP 15 David A. Shorr Lathrop & Gage 314 East High Street Jefferson City, MO 65101 573-761-5005