CCWD Federal Affairs Report

Marcus G. Faust, Attorney and Counselor at Law October 2020

AGENDA ITEM NO. 2 BOARD STUDY SESSION OCTOBER 16, 2020  Supreme Court Nomination hearings begin in October; there are 13 voting days left in the House of CONGRESSIONAL Representatives

SCHEDULE  Lame Duck Session - Congress will return the week of November 16th and stay through mid – December

2 Bill Introduction & Law Passage in the 115th Congress

115th Congress - Number of Bills Introduced and Laws Passed 12.00 House Bills Senate Bills Laws 10.59 Number of 7,116 3,609 278 10.00 Bills/Laws

Regular Number of 8.00 672 672 672 Session Days

Number per 6.00 5.37 10.59 5.37 0.41 4.85 Day

4.00 3.32 Number of 286 196 165 2.80 Bills/Laws

2.00 Lame

Average Number of Bills/Laws per Day Number of Duck 59 59 59 0.41 Days Session 0.00 Number per House Bills Senate Bills Laws 4.85 3.32 2.80 Day ■ Regular Session ■ Lame-Duck Session

 Greater number of bills introduced in both chambers in the regular session, but greater number of laws passed in the lame-duck session (per day on average)

3 Comparing the 115th and 116th Congress

Average Number of Bills/Laws per Day - 115th vs 116th Congress Regular Session Lame-Duck Session 14.00 12.73 House Senate House Senate Laws Laws Bills Bills Bills Bills 12.00 10.59 Number of 7,116 3,609 278 286 196 165 10.00 Bills/Laws

8.00 7.16 115th Number of 672 672 672 59 59 59 Congress Days 6.00 5.37 4.85 Average 10.59 5.37 0.41 4.85 3.32 2.80 4.00 3.32 per Day 2.80

2.00 Number of

Average Number of Bills/Laws per Day 8,528 4,795 163 TBD TBD TBD Bills/Laws 0.41 0.24 0.00 I I 116th Number of House Bills - Senate Bills - Laws - Regular House Bills - Lame- Senate Bills - Laws - Lame-Duck 670 670 670 62 62 62 Congress Days Regular Session Regular Session -Session- Duck Session Lame-Duck Session Session Average 12.73 7.16 0.24 TBD TBD TBD ■ 115th Congress ■ 116th Congress per Day

 There have been more bills introduced in both chambers during the 116th Congress compared to the 115th Congress, but fewer laws passed 4 Comparing the 115th and 116th Congress (cont.)

 Potential Reasons for Differences  116th Congress: Democratic House, Republican Senate; President Trump [R] – divided government, making it more difficult to pass laws  COVID-19  Remaining Bills for the 116th Congress  FY 2021 Appropriations bills – Continuing Resolution expires December 11  FY 2021 National Defense Authorization Act  Energy bill (could become vehicle for water legislation)  COVID Relief package?

5 United States Department of the Interior OFFICE OF THE SECRETA RY Washington, D 202 40

June 22, 2020 94-30000 2.2.4.21

The Honorable Chairwoman Subcommittee on Energy and Water Development, and Related Agencies Committee on Appropriations House of Representatives Washington, DC 20515

Dear Chai rwoman Kaptur:

Enclosed are the Bureau of Reclamation's (Reclamation) funding recommendations for Water Infrastructure Improvements for the Nation (WIIN) Act of2016 (Public Law 114-322) storage projects, eligible under Section 4007 oftbe WUN Act.

The conference report accompanying the FY 20 19 Consolidated Appropriations Act specified that "Of the additional funding provided under the heading 'Water Conservation and Delivery,' $134,000,000 shall be for water storage projects as authorized under section 4007 of Public Law 114-322."

Enclosed, please find the summary table detailing how a total of$108,795,000 of the section 4007 designated funds are recommended to be allocated within Reclamation for FY 2021 for water storage projects. Five constrnction or pre-construction projects (totaling $98,845,000) and five studies (totaling $9,950,000) are recommended to be named in appropriations legislation. Reclamation will proceed with expenditure of construction funding once a project has been found feasible and a cost sharing agreement has been signed with a non-federal partner for a construction project. This recommendation is consistent with the Explanato1y Statement and section 4007 of the WllN Act.

If you have any questions or need additional information, please contact Mr. Robe1t Wolf, Director, Program & Budget, Bureau of Reclamation, at (202) 513-0642.

Sincerely, ~~, Assi slant Secretaiy 6 for Water and Science

Enclosures Bureau of Reclamation FY 2017, FY 2018 & FY 2019 Funding for WIIN Act Section 4007 Storage Projects FY 17/18/19 WIIN State Category Project (Study) Title Project Description Rec.ommended Funding to be Spent in FY 21 This project will enlarge Shast.a Dam and Reservoir, creating an additional 634,000 ac1e-feet of stornge to benefit anad10mous fish cold water supply (191,000 acre-feet) and watei supply reliability, improve Uppei Sacramento Rivei habitat, increase power generntion, and increase/improve recreation opportunities. Funds will Shasta Dam and P1e-Constrnction / be used for preconstruction activities related to Shasta Dam rnise., rec1eation facilities planning/coordination, CA ReseivoiI Enlargement $ 15,000,000 Construction and reseIVoir infrastructure modifications. Pie-construction and design activities include: field explorntions; Prnject contracts for culturnl resource activities to support the required Historic Pioperties T1eatment Plan development, suIVey data collection, seismic and hydrnlogic studies. and consult.ant contracts; and project management. Funds vtill also be used to begin construction once WIIN 1equirements aJe met.

Address the issue of Friant-Kem Canal (FKC) subsidence; 3,000 ac1e-feet/day conveyance restored. which would allow significant increase in storage capacity in Millerton Reservoir during key times. Restoring FKC Friant-K= Canal capacity would inc1ease annual average surlace watei deliveiies by 8,000 acre-feet. FY 2021 funding will be Pie-Constrnction / Capacity Correction CA used to complete NEPA EIS, develop a Biological Assessment, and establish agreement to preserve historic sites $ 71,000,000 Construction Resulting from ($1.9M); preconstruction activities to include land acquisition document development, land sUIVeys, geologic Subsidence oveisight, engineering oveisight, and p1oject management ($2.3M); and initial awa1d funding for construction of $66.8M.

Phase 2 of Los Vaqueios ReseIVoir Expansion would increase storage up to 115,000 acre-feet in Contra Costa Los Vaqueros ReservoiI Watei District (CCWD). and would add a pipeline to the Aqueduct. Federal benefits include CA Pre-Construction Phase 2 Expansion delivering Incremental Level 4 watei to federally recognized wildlife refuge aJeas south of the Sacramento-Sau $ 7,845,000 Prnject Joaquin Delta. Funding will be used for critical pre-construction activities to include operntions agreement development. design, geotechnical investigations, peimitting, and water and conveyance rights.

Address the issue of Delta-Mendota Canal (DMC) subsidence. Subsidence in the DMC has led to reduced Delta Mendota Canal capacity of the DMC. This reduced capacity has led to reduction in storage in the San Luis ReseIVoir and the CA Study $ 3,000,000 Subsidence Correction Mendota Pool. In order to fully optimize storage in both. the capacity of the DMC must be restored. $3M w ill be used to complete the feasibility report activities, and environmental and cultural resource compliance.

The proposed p10ject includes up to au additional 1.8 million acre-feet of off-stream surlace storage to restore North-of-the-Delta Off Study / Pre- flexibility and a.daptability to Central Valley Pioject (CVP) and State Watei Project (SWP) operations. Funding CA stream Storage (Sites $ 4,000,000 Construction will be used for feasibility activities including opeiational agreements as well as ESA revisions, water rights, Reservoir Pioject) and watei modeling.

7

Page 1 of 2 June 22, 2020 JULY 31 FY2021 – LOS VAQUEROS RESERVOIR EXPANSION

 CCWD requested $83 million for FY 2021 and $7.845 million was recommended. Congress has not passed the FY 2021 federal budget but did pass a Continuing Resolution to keep the government funded through December 11.  The House of Representatives’ FY 21 Energy/Water bill provided $79 million for water storage projects under the WIIN Act. The bill included the following language: Provided further, That in accordance with section 4007 of PL 114-322 and as recommended by the Secretary of the Interior in a letter dated June 22, 2020, funding provided for such purposes in fiscal years 2017, 2018, and 2019 may be made available to the Friant-Kern Canal Capacity Correction Resulting from Subsidence, the Los Vaqueros Reservoir Phase 2 Expansion Project, the Delta Mendota Canal Subsidence Correction, the North- of-the-Delta Off stream Storage (Sites Reservoir Project), the Del Puerto Water District, the San Luis Low point Improvement Project, the Sacramento Regional Water Bank, the Boise River Feasibility Study, and the Cle Elum Pool Raise: Provided further, That no funds may be obligated or expended for the projects specified in the preceding proviso until the Secretary of the Interior transmits recommendations to Congress for projects authorized under sections 4009(a) and 4009(c) of the Water Infrastructure Improvements for the Nation Act (Public Law 114–322) and the Congress enacts a subsequent appropriations act making appropriations for energy and water development.

8 SEC. 4009. OTHER WATE,R SUPPLY PROJECTS. (a) WATER DESALINATION ACT AMENDMENTS,.- Section 4 of the Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is amended- (1) in subsection (a)- (A) by redesignating paragraphs (2) and (3) as para­ graphs (3) and (4), respectively; and (B) by inserting after paragraph ( 1) the following: "(1) PROJECTS.- "(A) IN GENERAL.- ,Subject to the requirements of this subsection, the Secretary of the Interior may participate in an eligible desalination project in an amount equal to not more than 25 percent of the total cost of the eligible desalination project.

9 (c) AUTHORIZATION OF NEW WATER RECYCLING AND REUSE PROJECTS.-Section 1602 of the Reclamation Wastewater and Groundwater Study and Facilities Act (title XVI of Public Law 102-575; 43 U.S.C. 390h et. seq.) is amended by adding at the end the following new subsections: "(e) AUTHORIZATION OF NEW WATER RECYCLING AND REUSE PROJECTS.- "(l) SUBMISSION TO THE SECRETARY.- "(A) IN GENERAL.-Non-Federal interests may submit proposals for projects eligible to be authorized pursuant to this section in the form of completed feasibility studies to the Secretary. "(B) ELIGIBLE PROJECTS.-A project shall be considered eligible for consideration under this section if the project reclaims and reuses- "(i) municipal, industrial, domestic, or agricultural wastewater· or ' 10 Trump Administration advances plan to increase water reliability in Bay Area and Central Valley

Los Vaqueros Reservoir Expansion Project would increase storage capacity by more than 100,000 acre­ feet, add new conveyance facilities

Media Contact: Mary Lee Knecht, 916-978-5100, [email protected]

For Release: August 13, 2020

SACRAMENTO, Calif. - The Bureau of Reclamation has released the Final Feasibility Report, which documents potential costs and benefits of the Los Vaqueros Reservoir Expansion Project. As part of a continuing effort to increase storage capability throughout California, Reclamation and the Contra Costa Water District worked together on Phase 2 of the project to increase the capacity from 160,000 acre-feet up to 275,000 acre-feet and adding new conveyance facilities.

In October 2018, President Trump issued the Memorandum on Promoting the Reliable Supply and Delivery of Water in the West. Reclamation, together with its partners, is acting on that call and taking Los Vaqueros Reservoir (photo credit CCWD) action to improve water supply reliability throughout the state. WATER STORAGE & INFRASTRUCTURE BILLS

The WIIN Act expires January 2021. Efforts to reauthorize the WIIN Act are as follows:  H.R. 2 - Moving Forward Act – July 1 The House passed H.R. 2 that contains numerous water infrastructure and water related proposals. It includes Cong. Huffman’s legislation (FUTURE Drought Resiliency Act) that grandfathers WIIN Act process for state-led Prop 1 approved projects, which includes LVE.

 Senator Feinstein is still working on the “Compromise Language” between S. 1932 and Huffman’s FUTURE drought bill. It would keep Huffman’s provision authorizing water storage funding at $750 million. The WIIN Act project process would become a competitive grant program and establishes different Congressional authorization processes for new federal and non-federal projects.

12 FY2021 & FY2022 LOS VAQUEROS RESERVOIR EXPANSION REQUEST

FY21 Request ($67 million total):  $5 million – Permitting, water rights modifications, and operations plan/agreements  $13 million – Transfer-Bethany Pipeline final design and geotechnical investigations  $49 million – Pumping Plant 1 / Canal Segment 5 final design and construction FY22 Request ($20 million total):  $12 million – Transfer-Bethany land acquisition  $6 million - Neroly High-lift and Transfer Facility pump stations final design  $2 million – Los Vaqueros Pipeline and Transfer Pipeline inspections

13 WIFIA IMPROVEMENT ACT OF 2020

 Cong. (D-CA3) introduced the WIFIA Improvement Act of 2020 (H.R. 8217) on September 14, 2020  Co-Sponsors: TJ Cox (D-CA21), (D-CA10), (D-CA16), Doug LaMalfa (R- CA1), (R-WA4)  The bill extends the finance term of EPA’s WIFIA loan program from 35 years to 55 years for public water projects.  If enacted, projects like CCWD Canal Enclosure, and Sites Reservoir Project could be eligible to receive a low interest loan.  Reclamation owned but locally maintained projects (CVP) are also made eligible.  Endorsements: CCWD, Family Farm Alliance, American Society of Civil Engineers, American Public Works Association, National Water Resources Association, Sites Project Joint Powers Authority, Friant Water Authority, San Joaquin River Exchange Contractors Water Authority

14  Status of Election  Anticipated Legislative Agenda for THINGS TO 2021 WATCH IN THE  Changes in Committee NEW YEAR Chairmanships/Ranking Member Slots  Procedural Changes – Elimination of the Senate Filibuster Rule

15 2020 SENATE RACES 46 Democrats 8 Toss Ups 46 Republicans

Toss Up Races: Arizona, Georgia, Iowa, Maine, Michigan, Montana, North Carolina, South Carolina

2020 HOUSE RACES 214 Democrats 31 Toss Ups 190 Republicans

There are 19 D and 11 R seats that are close. Toss Up California Races: TJ Cox v. (CA-21); Christy Smith (D) v. (R)(CA-25); (D) v. (R)(CA-39). The race between Josh Harder (D) v. Ted Howze (R)(CA-10) is leaning Democrat as of today.

16 ELECTORAL COLLEGE – COOK POLITICAL REPORT

Better states for Biden Toss Up states Better states for Trump .. (308 EV), (43 EV) (187 EV) ..

270

1/.1111 II,, Wi_.41KJ 1 ... 111 fl I II -"'III ,, I' ti,, .I N,,11 ·I [)'-',11 Hd,-r f~.'I I 270 ··11·1. ')I, I I r.l I ''J' v JI • , ,t · 11,,, "11tri J r q 1;1-Qlr ·~ ., ~~

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17

This chart was Inspired·by 538's 2ot6 Winding PatJJ chart an r1·Priorities USA 's snake ch art.  Economic Relief  COVID-19 Package  Stimulus Initiatives  Disaster Relief – Emergency Appropriations for states impacted by wildfires and hurricanes  Infrastructure (water, transportation)  Civil Rights H.R. 4 The John R. Lewis Voting Rights Act 2021  Climate Change  House and Senate proposals by House/Senate Select Committees LEGISLATIVE  A Biden Administration would roll back Trump Administration Executive Orders related to environment and immediately rejoin the Paris Climate Agreement; water AGENDA issues including regulation of PFAS and emerging contaminates of concern would become a priority  Healthcare  Depends on Supreme Court decision in the Spring of ACA and if a legislative replacement needed  Trade

 Immigration 18 PROCEDURAL CHANGE - ELIMINATION OF SENATE FILIBUSTER RULE  Filibuster Rule –it requires 60 votes to bring legislation up for a vote by the Senate.  Eliminating this rule would allow a simple majority (51 votes) to bring legislation to the Senate Floor and pass it – this is currently used by the Senate for judicial nominations  This new procedure would apply to all legislation, political nominees and judicial nominees.  Our analysis if the change is adopted by a new Senate majority -  The Committee process will become more integral in making final changes to bills that CCWD supports or opposes.  Some staff have mentioned the House of Representatives will have to be more careful what it now sends to the Senate (can’t just pass “messaging” bills because they could become law).  Despite the efficiency gained, it will facilitate more party-line votes on traditionally bi-partisan bills like appropriation bills. That works okay for the majority party especially if the President and the Senate are the same party. Otherwise, it further empowers the Presidential veto if the Presidency is held by a different party than the Senate.

19 CHANGES UNDER A NEW SENATE MAJORITY

 If election were held today, Senate Ratio would be close (~51 Democrats; 49 Republicans)  Senator is eligible to become Chairwoman of Judiciary Committee and/or Chair of the Energy/Water Appropriations Subcommittee. With Senator Tom Udall retiring she is next in line to Chair the Interior-Environment subcommittee and high up on the Defense appropriations subcommittee.  Senate Environment and Public Works Committee – Senator Tom Carper (Delaware) is in position to be Chairman. However, a Biden Administration would consider him for head of EPA. If selected and nominated, then Senator Ben Cardin (Maryland) is next in line.  Senate Energy and Natural Resources Committee  Senator Joe Manchin (West Virginia) is the current Ranking Member on the committee and is a moderate Democrat on environmental issues coming from a coal state. He would likely be Chairman unless Leadership does not embrace his moderated stance on climate issues.  Senator Catherine Cortez Masto (Nevada) would become Chair of the Water and Power Subcommittee.

20 Republican Term Limits  House and Senate Republicans imposed a 6-year term limit on committee leadership positions CHANGES IN  Democrats do not have term limits-Challenges by COMMITTEE Progressives expected  Chairs/Ranking Members are voted on by the Democrat and Republican Conference - members that obtain those CHAIRMANSHIP posts are usually viewed as an ally with Leadership, help with fundraising opportunities, and are willing to advance AND RANKING the agenda of the Republican and Democratic Steering MEMBER SLOTS Committees 116th Congressional Retirements  House of Representatives - 12 Democrats; 33 Republicans  Senate – 1 Democrat; 4 Republicans

21 RELATIONSHIPS IN A NEW CONGRESS

CCWD’s relationships with the following offices and committees of jurisdiction that will help going into a new Congress no matter the Election outcome:  Senators Dianne Feinstein and  Representatives Mark DeSaulnier, Mike Thompson, Jerry McNerney, , TJ Cox and Josh Harder  Senate Energy and Natural Resources Committee (covers Reclamation), Senate Environment and Public Works Committee (covers EPA regulation and U.S. Army Corps), Senate Energy and Water Development Appropriations Subcommittee (over Reclamation’s budget) and Senate Interior Appropriations Committee (over EPA’s budget)  House Natural Resources Committee (covers Reclamation), House Transportation and Infrastructure Committee (over Army Corps), House Energy and Commerce Environment Subcommittee (over Energy/EPA), House Energy and Water Development Appropriations Subcommittee (over Reclamation’s budget)) and House Interior-Environment

Appropriations Subcommittee (over EPA’s budget) 22 CHANGES FROM RETIREMENTS/TERM LIMITS Senate (assuming Republicans maintain majority)  Senate Energy and Natural Resources Committee - Senator John Barrasso (Wyoming) is slated to be Chairman as Senator Lisa Murkowski (Alaska) has reached her term limit.  Senate Environment and Public Works Committee – Senator Shelly Moore Capito (West Virginia) is next in line to Chair the committee; Senator Barrasso would leave his post as current EPW Chairman to head the Energy and Natural Resources Committee.  Senate Energy and Water Appropriations Subcommittee – If Senator Collins (Maine) wins, then she is next in line. If defeated, Sen. Lisa Murkowski or Senator John Hoeven (North Dakota) could be viable options to lead the subcommittee.  Senate Interior-Environment Appropriations Subcommittee – Senator Lisa Murkowski is the the current Chair and would likely remain there unless she elected to vie for Energy/Water. House of Representatives (most committee leadership posts remains the same)  House Natural Resources Committee – Cong. Jared Huffman would remain Chairman of Water subcommittee and Chairman Grijalva would stay on the Full Committee unless a Biden Administration has other plans. Cong. TJ Cox currently chairs Oversight and Investigations (unless defeated). The Republican Ranking Member slot is open due to Cong. Rob Bishop retirement – rumors are that (Virginia) has ability to jump over others due to fundraising chops.  House Energy and Water Appropriations – Cong. Marcy Kaptur (Ohio) is slated to leave and take over Chairmanship of Full Committee. That leaves Debbie Wasserman Shultz (Florida) or Anne Kirkpatrick (Arizona) as likely to become subcommittee chair if Peter Visclosky stays Chairman of Defense. 23  Whether the Senate flips or there is a new administration, CCWD remains in a strong position to advance its priorities. CCWD has established relationships with the California members in its delegation and their advancement in leadership positions on key committees is helpful. WHAT DO THESE  Cong. Huffman and Senator Feinstein will be especially helpful given their leadership positions CHANGES MEAN on their respective funding and authorizing FOR CCWD? committees as we seek funding for Los Vaqueros.  Under a new Senate majority or new Administration, climate change legislation is expected to be a top priority. This elevates the importance of funding and environmental support for water projects. CCWD’s position is secured on Phase II of the Los Vaqueros Reservoir

Expansion Project. 24 EXISTING WIIN ACT PROCESS State-Led Water Storage Projects

State determines DOI develops project feasibility; and transmits DOI issues California projects Governor Federal Congress approves Record of must comply with CA requests federal Feasibility project by name in Decision to Water Bond; must participation Report to appropriations bill proceed with have Federal Congress construction environmental benefits *includes EIS

I I I Federally-Owned Water Storage Projects I I

Secretary determines project feasibility; DOI develops Upon request by and transmits DOI issues Record signs agreement for Congress approves entity or state, Feasibility of Decision to non-federal cost project by name in DOI enters Report to proceed with share; project must appropriations bill agreement have federal Congress construction environmental *includes EIS benefits FUTURE DROUGHT RESILIIENCY ACT (Huffman)

Sec. 103: Funding for Water Storage and Supporting Projects.  Authorizes $750 million for water storage funding through 2024.  Maintains federal cost-share breakout of 25% for non-federal projects; 50% for federal projects. Sec. 104: Extension of Existing Requirements for Grandfathered Storage Projects. Extends WIIN Act storage project approval requirements to those storage projects that are currently in the WIIN Act project approval process.

 Requirements - A project is grandfathered if it has already been recommended for funding under Sec. 4007 – WIIN Act by the Governor or the Secretary prior to February 28, 2019. This does not apply to projects that received a funding award less than $200 million by the CWC and on-stream projects that have not been evaluated by the CWC.

 Grandfathered storage projects are eligible for the $750 million of authorized storage funding in Sec. 103 through demonstrated compliance with WIIN Act requirements.

 The Secretary is directed to prioritize funding among grandfathered storage projects to those that provide greater and more reliable water supply benefits during dry years to wildlife refuges, endangered species, or commercially harvested salmon species.

26 CALIFORNIA WATER BILLS

Elements of Rep. Huffman’s Discussion Draft also include the bills noted below. These bills passed the House Natural Resources Committee. There are no provisions for water storage in these bills.  Desalination Development Act (HR 3723, Levin and Huffman). The bill support a grant program for desalination projects and raises the existing desalination program funding authorization to $240 million through 2024.  Securing Access for the Central Valley and Enhancing Water Resources Act (HR 2473, Harder). Establishes a water infrastructure and drought solutions fund to build new surface or groundwater storage and water reclamation and reuse projects. The Secretary would also use a portion of the fund to issue grants under the Bureau of Reclamation's WaterSMART program that funds reuse and reclamation projects.  Western Water Security Act (HR 4891, Torres Small (NM)). The bill increases funding for Western states and Native American tribal governments to improve water infrastructure and drought resilience.  Water Recycling Investment and Improvement Act (HR 1162 , Napolitano). The bill provides $500 million in funding to address a backlog in already-approved water recycling and reuse projects. 27 COMPROMISE LANGUAGE  New Process Threshold: Establishes a requirement to obtain a separate congressional authorization similar to WRDA for federal projects and “major” non-federal projects. Otherwise, “standard” non- federal projects that need less than $700 M in federal funding can be named in an appropriations bill for an initial grant.  Funding Breakout Similar to WIIN Act: The federal cost-share for non-federal projects is 25% or 50% for federally-owned projects.  Establishes Different Process for Federal and Non-Federal Water Storage Projects: LVE would be defined as a “standard non-federal project” and would NOT need separate congressional authorization. It would need to complete the criteria for selection under the bill. Overview of Grant Program Process for Storage Projects

DOI makes Once a Federal and Non- Criteria for funding determination is Secretary Federal Projects selection differs determination made, DOI has 30 establishes grant Each year, the must have requisite for federal and after days to notify program for design, Secretary will Congressional non-federal feasibility and House/Senate study, construction, issue grant blessing projects, but a compliance Committees and expansion, solicitations for (authorization or federal with all list funding upgrade, or capital eligible entities named in environmental environmental award on the repair appropriations bill) benefit is crucial laws internet NON-FEDERAL PROJECT CRITERIA IN COMPROMISE BILL (FEINSTEIN)

Major Non-Federal Projects Standard Non-Federal Projects (Ex. Sites) (Ex. LVE)

 Application submission  Application submission  Governor support  Governor support  Technically and financially feasible  Technically and financially feasible  Entity can pay non-federal cost – share  Entity can pay non-federal cost – share (75%) (75%)  Federal Benefit: Reclamation Laws &  Federal Benefit: Reclamation Laws & dedicated water supplies for fish, wildlife dedicated water supplies for fish, wildlife protection/restoration and refuges protection/restoration and refuges  Congressional Authorization legislation  No Congressional authorization needed; must required if project requires more than have initial grant for construction listed in $700 million in federal funding appropriations bill 29 FEDERAL PROJECT CRITERIA IN COMPROMISE BILL (FEINSTEIN)

Federal Project Major Non-Federal Project (Ex. Shasta) (Ex: Old Sites)  Agreement between Secretary and Entity  Application submission  Technically and financially feasible:  Governor support Feasibility Reports must be authorized by Congress  Technically and financially feasible  Agreement for upfront funding of non-  Entity can pay non-federal cost – share federal share (50%) (75%)  Federal Benefit: Reclamation Laws &  Federal Benefit: Reclamation Laws & dedicated water supplies for fish, wildlife dedicated water supplies for fish, wildlife protection/restoration and refuges protection/restoration and refuges  Congressional authorization required for construction for any federal storage  Congressional Authorization Required if project project requires more than $700 million in federal funding 30 INFRASTRUCTURE BILLS

U.S. SENATE  America’s Water Infrastructure Act of 2020 (passed EPW committee on May 6)  Drinking Water Infrastructure Act of 2020 (passed EPW committee on May 6)  America’s Transportation Infrastructure Act of 2019 (passed EPW committee last July; waiting action by Senate Banking and Senate Commerce Committees)

U.S. HOUSE OF REPRESENTATIVES BILLS  INVEST in America Act of 2020 (introduced by House T&I committee on June 3)

COMING SOON  The House of Representatives is expected to introduce water resources legislation this summer  The Senate is putting together energy, water, and natural resources legislation

31  The Water Infrastructure Finance and (WIFIA) of 2014  Federal credit program administered by EPA for eligible water and wastewater infrastructure projects  Provides long-term, low-cost supplemental loans for WHAT IS WIFIA? development and implementation of significant projects

 Projects can be paid back over the course of 35 years at low interest

 Total federal assistance cannot exceed 80% of total project cost with limited exception

32 ELIGIBLE PROJECTS

 Wastewater conveyance and treatment projects

 Drinking water treatment and distribution projects

 Enhanced energy efficiency projects at drinking and wastewater facilities

 Desalination, aquifer recharge, and water recycling projects

 Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project

 A combination of eligible projects secured by a common security pledge or sub

33 FY 2020 NOTICE OF FUNDING AVAILABILITY (NOFA) FOR WIFIA  When EPA receives its appropriation, the WIFIA program issues a Notice of Funding Availability (NOFA) to solicit letters of interest from prospective borrowers  EPA received 62 letters of interest requesting $9.1 billion in loans for the FY 2018 NOFA; EPA invited 39 projects totaling $5.5 billion in 16 states and D.C.  The FY 2019 NOFA attracted 51 letters of interest totaling $13.9 billion; EPA invited 34 projects totaling $6.6 billion.  For FY2020, EPA will have approximately $5.5 billion in WIFIA loans to finance approximately $11 billion in water infrastructure investment  Congress provided $55 million in budget authority for the WIFIA program  EPA will hold webinar (7/14) and will publish a NOFA in July 2020

34

$11 IN BILLION INFRASTRUCTURE $55 $5.5 INVESTMENT IN IN MILLION BILLION APPROPRIATIONS • LOANS FY 2020 NOTICE OF FUNDING AVAILABILITY (NOFA) FOR WIFIA

 When EPA receives its appropriation, the WIFIA program issues a Notice of Funding Availability (NOFA) to solicit letters of interest from prospective borrowers  EPA received 62 letters of interest requesting $9.1 billion in loans for the FY 2018 NOFA; EPA invited 39 projects totaling $5.5 billion in 16 states and D.C. The FY 2019 NOFA attracted 51 letters of interest totaling $13.9 billion; EPA invited 34 projects totaling $6.6 billion.  For FY2020, EPA will have approximately $5.5 billion in WIFIA loans to finance approximately $11 billion in water infrastructure investment  Congress provided $55 million in budget authority for the WIFIA program  EPA estimates that it will publicly publish a NOFA for both programs in May 2020

35

$11 IN BILLION INFRASTRUCTURE $55 $5.5 INVESTMENT IN IN MILLION BILLION APPROPRIATIONS • LOANS