Water Utility Council of the PA-Section, American Water WUC Works Association (PA-AWWA)

GOVERNMENT RELATIONS UPDATE From Gmerek Government Relations, Inc.

212 Locust Street  Suite 300  Harrisburg, PA 17101  Phone: 717-234-8525  Cell: 717-574-3963  Fax: 717-234-8812  Erik A. Ross, Senior Lobbyist  www.ggrgov.com Harrisburg, PA [email protected] March 30, 2015 -- Issue 935

PA- Section, American Water Works Association National Association of Water Companies Water Works Operators' Association of

The Presidents Award’s goals are the highest Norristown Water possible level of performance that can be achieved Treatment Plant Achieves in the four-phase program. The award recognizes achieving Phase IV’s stringent individual filter Highest Level of performance goals for turbidity (cloudiness).

Performance “Our Norristown team worked very hard to earn the Presidents Award, and this recognition is a ennsylvania American Water’s Norristown testament to their expertise and dedication to better Water Treatment Plant, which serves serve our customers,” said Paul Zielinski, senior P approximately 32,000 customers in director of water quality and environmental Montgomery County, has received the prestigious compliance for Pennsylvania American Water. Presidents Award from the Partnership for Safe “Reaching this elite status is a significant Water. The program is a volunteer initiative achievement in our ongoing efforts to not only meet developed by the U.S. EPA, Pennsylvania stringent performance goals but also improve the Department of Environmental Protection, American quality of our water.” Water Works Association (AWWA) and other organizations representing water suppliers that The Partnership for Safe Water is a voluntary continuously provide water quality that surpasses self-assessment and optimization program for water regulatory standards. treatment plant and distribution system operation. More than 250 utility subscribers, collectively Pennsylvania American Water’s facility has been serving more than 100 million people, are participating in the Partnership since 1996. The committed to the Partnership’s goals of providing Norristown plant received the Directors Award in safe, high-quality drinking water through achieving 2000, and it is the only Pennsylvania facility to earn operational excellence in water treatment. the Presidents Award this year. Only three Partnership members participate in a rigorous four- Pennsylvania water systems were recognized in phase self-assessment and peer review process, 2014 for achieving the honor. This is Pennsylvania developed by industry experts and are recognized American Water’s second plant to be recognized for their commitment to delivering safe water to with the Phase IV - Presidents Award. their communities. The Partnership for Safe Water is sponsored by homegrown fuel to more Pennsylvania businesses the American Water Works Association, and homeowners.” Association of Metropolitan Water Agencies, Association of State Drinking Water The Commission voted 5-0 to approve Peoples Administrators, United States Environmental Companies’ implementation of the Service Protection Agency, National Association of Water Expansion Tariff (SET) program, a five-year pilot Companies, and the Water Research Foundation. program intended to reduce the upfront financial barriers faced by potential customers who are Pennsylvania American Water, a subsidiary of interested in receiving natural gas services in areas American Water (NYSE: AWK), is the largest where gas is currently unavailable. The joint water utility in the state, providing high-quality and settlement was reached among the Peoples reliable water and/or wastewater services to Companies, the Commission’s Bureau of approximately 2.2 million people. Founded in 1886, Investigation and Enforcement, the Office of American Water is the largest publicly traded U.S. Consumer Advocate and the Office of Small water and wastewater utility company. With Business Advocate. headquarters in Voorhees, N.J., the company employs approximately 6,400 dedicated Under most natural gas company tariffs, a professionals who provide drinking water, customer who wishes to have natural gas service wastewater and other related services to an extended to his or her property must pay the cost of estimated 15 million people in more than 45 states that line extension as an upfront payment, which and parts of Canada. can amount to thousands of dollars.

Source: AWWA Press Release, 3/23/2015 The SET program allows eligible residential customers to pay the extension costs through a monthly fixed fee of $55 until the outstanding PUC Approves Peoples principal balance is zero, for a maximum of 25 Natural Gas SET Program to years. If necessary, a customer may pay a portion of the extension cost upfront in order to bring the Increase Affordability, financing period down to 25 years. Residential customers also will have an option to pay the costs Access to Gas Service for the service line through an additional monthly fee of $15, until the outstanding principal balance of n 3/26, 2015, the Pennsylvania Public the service line cost is zero. Utility Commission (PUC) approved a pilot O program that will change the way Peoples Similar pilot programs currently offered in the Natural Gas Company LLC, Peoples Natural Gas Commonwealth include UGI’s Pennsylvania gas Company LLC – Equitable Division and Peoples distribution utilities’ Growth Extension Tariff TWP LLC (collectively Peoples Companies) charge program, which allows eligible customers to pay customers to extend natural gas service to their extension costs over 10 years as a monthly charge; homes. and Columbia Gas of Pennsylvania’s New Area Service program, which allows eligible customers “Pennsylvania sits on top of one of the largest to pay extension costs over 20 years as a monthly natural gas reserves in the world. As a result, charge. Pennsylvania consumers and businesses should have every reasonable opportunity to take Peoples Companies provide natural gas advantage of this efficient and clean-burning natural distribution, supply and transportation service to resource,” said PUC Commissioner Pamela A. approximately 700,000 customers in western Witmer in a statement. “[We] continue to challenge Pennsylvania. other natural gas utilities operating in underserved or unserved areas of the Commonwealth to begin The Pennsylvania Public Utility Commission thinking creatively on how they, too, can bring a balances the needs of consumers and utilities; 2 ensures safe and reliable utility service at The rate reduction follows the Insurance reasonable rates; protects the public interest; Department’s approval of the Pennsylvania educates consumers to make independent and Compensation Rating Bureau’s annual loss cost informed utility choices; furthers economic filing. These loss costs are used to determine the development; and fosters new technologies and premiums businesses pay for workers’ competitive markets in an environmentally sound compensation insurance. The premium savings for manner. an individual employer will vary based on the employer’s risk classification, claims experience For recent news releases and video of select and other factors. Not all employers will see a Commission proceedings or more information about decrease. the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all This is the fourth consecutive workers’ things utility. “Like” PAPowerSwitch on Facebook compensation insurance cut in as many years, and for easy access to information on electric shopping. brings the cumulative savings to $550 million for the past four years. Workers’ compensation Docket Nos. R-2014-2429610, C-2014-2434196, C- insurance covers the cost of medical care and 2014-2435583, R-2014-2429606, C-2014-2434192, rehabilitation for injured workers, lost wages and C-2014-2435636, R-2014-2429613, C-2014- death benefits for the dependents of those killed in 2434195, C-2014-2435601 work-related accidents.

Source: PUC Press Release, 3/26/2015 “Reducing this cost helps businesses in our state be more competitive, and frees up money to spend on other priorities, such as hiring more workers,” Wolf Administration said Acting Insurance Commissioner . Announces Significant More than 10,530 state-certified workplace Workers’ Comp Insurance safety committees have been established since March 1994, protecting more than 1,396,306 Rate Cut While Maintaining workers. Additionally, employers with certified Benefit Levels for Injured workplace safety committees have saved close to $524.3 million in workers’ compensation Workers premiums. These savings in insurance costs are due solely to the five-percent premium discount n March 27, 2015, the Wolf Administration provided to businesses that have these committees. announced Pennsylvania businesses will see O a significant cut in workers’ compensation “We are proud of the role our Bureau of insurance rates while benefit levels for injured Workers’ Compensation Health & Safety division workers will be maintained. Workers’ comp plays in the keeping our workers safe,” Acting insurance rates will drop 5.99 percent, effective Labor & Industry Secretary said. April 1, reducing a key expense for many “It’s clear that employer safety programs produce companies and saving Pennsylvania businesses an tangible benefits and cost savings. Coupled with the estimated $140 million this year. reduction in premium rates, employers with safety committees get a win-win in savings and safety.” “A constant concern for business owners is reducing costs while supporting employees’ health Employers should contact their insurance and livelihood,” said Governor Wolf. “These rate company or agent for more information about how reductions will go a long way towards ensuring their workers’ compensation premiums will be business owners can continue to create and support affected. jobs that pay in Pennsylvania.” More information on Pennsylvania insurance products is available at www.insurance.pa.gov. 3 For more information on making Pennsylvania’s  Run dishwashers and washing machines only workplaces safer, visit www.dli.state.pa.us , with full loads; “Workplace and Community Safety.”  Replace older appliances with high-efficiency, front-loading models that use about 30 percent Source: Governor’s Press Office, 3/27/2015 less water and 40 to 50 percent less energy; and  Install low-flow plumbing fixtures and aerators DEP Declares Drought on faucets.

Watch for 27 Pennsylvania DEP is notifying all water suppliers in the affected areas of the need to monitor their supplies, Counties particularly those that rely upon groundwater, and update their drought contingency plans as espite the recent surge of surface water necessary. caused by snow melt, parts of the state have D below-average groundwater levels. The A drought watch declaration is the first and lack of groundwater recharge has caused the least-severe level of the state’s three drought Department of Environmental Protection (DEP) to classifications. It calls for a voluntary five percent issue a drought watch for 27 counties across reduction in non-essential water use and puts large Pennsylvania. Low groundwater levels can cause water consumers on notice to begin planning for the well-fed water supplies, both private and public, to possibility of reduced water supplies. go dry. Through a cooperative program with the U.S. The very dry fall and below-normal precipitation Geological Survey, DEP helps fund a statewide in January and February have contributed to low network of gauges to monitor groundwater levels groundwater levels in the northeast and central and stream flows. This network provides the state’s portions of the state. The increasing temperatures drought coordinator with comprehensive data that is and melting snow have helped, but groundwater used to determine drought classifications. In levels may not be back to normal before the addition to precipitation, groundwater and stream summer. flow levels, DEP monitors soil moisture and water supply storage. This data is shared with other state The 27 counties under the drought watch issued and federal agencies. today are Berks, Bradford, Cambria, Carbon, Clinton, Columbia, Indiana, Lackawanna, DEP also offers water conservation Lawrence, Luzerne, Lycoming, McKean, Mercer, recommendations and water audit procedures for Monroe, Montour, Northumberland, Pike, Potter, commercial and industrial users, such as food Schuylkill, Snyder, Sullivan, Susquehanna, Tioga, processors, hotels and educational institutions. Union, Wayne, Westmoreland, and Wyoming. These recommendations and additional drought All Pennsylvanians are advised to heed this information are available by clicking here or drought watch by conserving their water use and visiting DEP’s website, www.dep.state.pa.us , consumption. keyword: drought.

To reduce their water use, residents can: Source: DEP Press Release, 3/24/2015

 Run water only when absolutely necessary; and avoid keeping water flowing while brushing DEP Opens Comment Period teeth, or turning on the shower many minutes for Proposed Technical before use;  Check for household leaks – a leaking toilet can Guidance Documents on waste up to 200 gallons of water each day; Riparian Buffers 4 he Department of Environmental Protection Simple math shows Pennsylvania will not have a invites land developers, local governments, chance to meet those milestones with the current T environmental consultants, and the general level of effort to improve water quality. public to comment on two interim final technical guidance documents that address changes in the Last June, the U.S. Environmental Protection requirements to provide equivalency and offsetting Agency reported Pennsylvania exceeded its 2013 for riparian buffers. The comment period will last Chesapeake Bay cleanup milestone for phosphorus 60 days. by 242,000 pounds, but fell short in meeting the nitrogen goal by 2 million pounds and sediment The technical guidance documents provide reduction milestone by nearly 116 million pounds. information about changes in the requirements for installing riparian buffers when conducting earth If Pennsylvania does not meet the 2017 disturbance activities. These requirements were milestones, EPA has the authority to impose altered by Act 162, which was signed into law on additional reduction requirements directly on October 22, 2014. wastewater treatment plants and set additional controls on farmland and stormwater runoff. Riparian buffers are vegetated areas along waterways that absorb stormwater, often installed in For more information, visit the Chesapeake Bay an area where development inhibits natural Clean Water Blueprint webpage. stormwater recharge. They prevent waterways from being inundated with excess stormwater, which can Source: PA Environmental Digest, 3/30/2015 carry with it sediment and other pollutants.

The public may submit written comments by What’s The Status of May 20 to Jennifer Orr of the Bureau of Waterways Governor’s Nominees for Engineering and Wetlands, P.O. Box 8460, Harrisburg, PA 17105-8460. Electronic comments DEP, DCNR, and may be submitted via email to ep- [email protected]. Agriculture?

For more information, or to view the technical he Senate has 25 session days (not calendar guidance documents, click here (or visit days) to take a vote on the Governor’s www.dep.state.pa.us and use keywords ‘technical T nominees to fill cabinet positions. guidance open for public comment’). The Executive Calendar of the Senate shows that Source: DEP Press Release, 3/23/2015 on April 13, the next scheduled session day, the nominations for John Quigley at DEP, Cindy Dunn at DCNR and at Agriculture will PA Must Install Practices to be on day 9. (Officially, the paperwork for each nomination was accepted by the Senate on February Meet 2017 Stream Cleanup 4.) Milestone in Next 641 Days This means the Senate, based on the schedule of ennsylvania has 641 days to put the best session days, has until June 9 to take a vote on the management practices on the ground needed nominees. to eliminate 10 million pounds of nitrogen P Each of the Governor’s nominees are now in the and 212 million pounds of sediment from going into our rivers and streams to meet the 2017 Chesapeake process of meeting with each of the 49 members of Bay cleanup milestones. the Senate, which is a traditional part of the “advise and consent” process with the Senate.

5 When a nominee completes a sufficient number Spahr, Andrews and Ingersoll where he practiced of meetings with Senators, usually all of them, the environmental litigation and franchise law. oversight committee, in this case the Senate Environmental Resources and Energy Committee From 2001-04, he was an assistant counsel to the for DEP and DCNR and the Agriculture and Rural Pennsylvania Environmental Hearing Board. He is a Affairs Committee for Agriculture will hold a 1994 honors graduate of Rutgers School of Law, public hearing with the nominee. Camden.

No confirmation hearings have yet been Martha Smith, as Assistant Counsel in DCNR, scheduled by either committee. provided counseling in real property law, including acquisitions for the Bureau of Forestry and Bureau Source: PA Environmental Digest, 3/30/2015 of State Parks, boundary disputes, easements and rights-of-way, rails-to-trails matters, warrants and patents, real estate contracts, navigable rivers, Morrison, Smith Appointed grants, and litigation in both county and appellate Acting Chief Counsels for courts and the Board of Property.

DEP, DCNR She has been with the Commonwealth since 1985, working first for the Department of ichard Morrison, has been named Acting Environmental Resources until the creation of Chief Counsel at the Department of DCNR in 1995. R Environmental Protection, moving over from the Department of Conservation and Natural Prior to joining the Commonwealth, she began Resources where he served as Chief Counsel. her career clerking for The Honorable Carson V. Brown, President Judge of the Clinton County He replaces Dennis Whitaker who has been Court of Common Pleas, from 1978 to 1980. Chief Counsel since November 2013 and served previously as Chief Counsel for DCNR from 1990 From 1980 to 1985 she worked in private to May 2012. practice at Saxton and Flayhart, a general practice law firm, and as a part-time public defender and a Martha Smith, Assistant Counsel for DCNR, has member of the Zoning Hearing Board. been named Acting Chief Counsel of DCNR. She is a 1975 graduate of the Pennsylvania State Richard Morrison was named DCNR’s Chief University (B.S. Law Enforcement and Corrections) Counsel in November 2013. Prior to joining DCNR, and a 1978 graduate of the Duquesne University Mr. Morrison was acting Chief Counsel for the School of Law. Department of Environmental Protection. Source: PA Environmental Digest, 3/30/2015 He served as executive deputy chief counsel for the Department of Environmental Protection's # # # # # # # Office of Chief Counsel since May 2012. He previously served as assistant director of DEP’s This newsletter provides general information, Bureau of Regulatory Counsel. not legal advice as to any specific matter. It should not be used as a substitute for appropriate He joined DEP in January 2005 and served as legal advice. program counsel for the department’s mining program, for the Bureau of Radiation Protection and the Bureau of Waste Management.

Prior to joining DEP, Mr. Morrison was in private practice in the New Jersey office of Ballard, 6