EPA has released an updated version of the nationwide de minimus waiver of Section 1605 (the Buy American provision) of the American Recovery and Reinvestment Act of 2009. EPA originally issued this waiver on June 2, 2009. The waiver was given for “de minimis incidental components” which are minor, or small-scale components that “cumulatively comprise no more than a total of 5 percent of the total cost of the materials used in and incorporated” into eligible water infrastructure projects funded by the ARRA. According to EPA, every water infrastructure project involves the use of “thousands of miscellaneous, generally low-cost components that are essential for, but incidental to, the construction and are incorporated into the physical structure of the project, such as nuts, bolts, other fasteners, tubing, gaskets, etc.” EPA said it “is not in the public interest” to impose ARRA’s Buy American requirements, as outlined in Section 1605 of the stimulus law, on these de minimis components.

This updated version, released August 11, 2009, revises the terms under which that waiver may be applied; specifically it repeals the need to identify both the country of origin and possible alternatives for these incidental components. EPA reasoned that for many of these components, “the country of manufacture and the availability of alternatives is not always readily or reasonably identifiable prior to procurement in the normal course of business.” The new terms of this waiver are effective as of July 24, 2009.

EPA regional offices also continue to issue project-specific waivers. The latest waiver was a regional waiver of the Buy American provisions for the Hooksett, N.H. Sewer Commission. They were granted a waiver for the purchase of foreign manufactured polyethylene Biofilm chip media. According to the waiver, “HSC’s proposed upgrade of its wastewater treatment facility upgrade will utilize an Integrated Fixed Film Activated Sludge (IFAS) process, in which the AnoxKaldnesTM Biochip-M IFAS media manufactured in Germany by Kruger, Inc. will meet the HSC’s design specifications.”

Individual projects must apply for a separate waivers based on project-specific circumstances even if waivers have already been granted for specific materials or equipment. EPA has left the door open for addtional national waivers and according to EPA officials no waiver requests have been rejected to date.

For more information on EPA Buy American requirements, including EPA webcasts, please click here.

For additional information, please contact Perry L. Fowler at fowlerp@agc.org or (703)837-5321.

The U.S. Department of Transportation's Pipeline and Hazardous Material Safety Administration (PHMSA) has announced that it is accepting applications for 2010 State Damage Prevention Grants.

These grants are intended for states to establish or improve the overall quality and effectiveness of their programs that are designed to prevent damage to underground pipeline facilities. Any state authority designated by the Governor (including a municipality with respect to intrastate gas pipeline transportation) that is or will be responsible for preventing damage to underground pipeline facilities is eligible to apply for these grants.

Click here to view the 2010 Grant Solicitation

AGC of America has participated in the grant review process in the past. AGC members and Chapters that are interested in working with their State Damage Prevention Authorities to enhance industry outreach and public education are encouraged to contact their State Damage Prevention Authorities and inquire about how they might incorporate AGC Chapters into their plans.  Examples of previous grant awards include the establishment of Regional Common Ground Alliance efforts, supporting One Call "811 Dial Before You Dig" programs and various other industry stakeholder education and outreach events.

• Summary of 2008 State Damage Prevention Grant Awards
• Summary of 2009 State Damage Prevention Grant Awards

The deadline for applications is August 31, 2009.

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org

The American Recovery and Reinvestment Act of 2009 (ARRA) provides significant funding for states to finance high priority infrastructure projects needed to ensure clean water and safe drinking water. The Act also includes "Buy American" provisions that require Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) projects to use domestic iron, steel and manufactured goods. 

According to EPA officials, 10 individual project-specific Buy American Waivers have been granted for water infrastructure projects using Recovery Act Funds. The following list contains Buy America Waiver notices published in the Federal Register to date.

Project/Regional Waivers

7/28/2009 - Sharon Elementary School Water System, Sharon, VT

http://www.gpo.gov/fdsys/pkg/FR-2009-07-28/pdf/E9-17931.pdf

7/28/2009 - Lewiston, ME Department of Public Services

http://edocket.access.gpo.gov/2009/pdf/E9-17937.pdf

7/9/2009 - Claywood Park Public Service District, West Virginia

http://www.epa.gov/fedrgstr/EPA-WASTE/2009/July/Day-09/f16265.pdf

6/29/2009 - State of New Hampshire Department of Environmental Services' Winnipesaukee River Basin Bureau

http://www.epa.gov/fedrgstr/EPA-GENERAL/2009/June/Day-29/g15318.pdf

6/22/2009 - Auburn, ME Sewerage District

http://www.epa.gov/fedrgstr/EPA-GENERAL/2009/June/Day-22/g14600.pdf

Nationwide Waivers

6/2/2009 - de minimis Incidental Components of Projects Financed Through the Clean or Drinking Water State Revolving Funds Using Assistance Provided Under ARRA

http://www.epa.gov/fedrgstr/EPA-WATER/2009/June/Day-02/w12792.pdf

6/2/2009 - Projects that Solicited Bids on or after October 1, 2008 and prior to February 17, 2009 that are Financed through the Clean or Drinking Water State Revolving Funds using Assistance Provided under ARRA

http://www.epa.gov/EPA-WATER/2009/June/Day-02/w12793.htm

4/7/2009 - Projects With Debt Incurred on or After October 1, 2008 and Before February 17, 2009 That Are Refinanced Through the Clean or Drinking Water State Revolving Funds Using Assistance Provided Under ARRA

http://www.epa.gov/fedrgstr/EPA-GENERAL/2009/April/Day-07/g7828.pdf

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org.

Key Senate staff has indicated that S. 1005, the Water Infrastructure Financing Act of 2009, will not come up for a vote before for the full Senate until after the August recess.

S.1005 authorizes $39.191 billion for EPA water infrastructure programs over the next five years, including: $20 billion for the Clean Water State Revolving Fund Program and $14.7 billion for the Drinking Water State Revolving Fund Program. Annual dollars for EPA SRF Programs are detailed in the chart below.

Other key programs funded in the bill include $1.8 billion for Sewer Overflow Grants, $1.43 billion for the Critical Drinking Water Infrastructure Grant Program, grants for reducing lead in drinking water and technical assistance for small, rural and disadvantaged communities.

AGC members are encouraged to contact their Senators to urge support of S.1005 using AGC's Legislative Action Center.

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org. Re

To date the U.S. Department of Agriculture (USDA) has announced several rounds of funding for rural water and waste water projects and has announced that projects totaling over $800 million dollars are ready to proceed to bid.

Click here for a list of projects provided by USDA Rural Utilities Service (RUS).

For USDA RUS contacts in your state, please visit http://www.rurdev.usda.gov/scrty/sdirs.html

USDA Press Releases by Date

August 3. 2009

AGRICULTURE DEPUTY SECRETARY MERRIGAN ANNOUNCES $154.8 MILLION FOR RURAL WATER PROJECTS

July 15, 2009

AGRICULTURE SECRETARY VILSACK ANNOUNCES $250 MILLION IN RECOVERY ACT FUNDS FOR RURAL WATER PROJECTS

June 17, 2009

AGRICULTURE SECRETARY VILSACK ANNOUNCES $123 MILLION FOR RURAL WATER PROJECTS IN 24 STATES

May 28, 2009

AGRICULTURE SECRETARY VILSACK ANNOUNCES $143 MILLION FOR RURAL WATER PROJECTS

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org

Trey Pebley, Vice President of McAllen Construction, Inc., of McAllen, Texas, testified Wednesday July 22, before the House Small Business Committee on the impact of federal regulation over water and wetlands on small businesses and family farmers.

The Committee conducted the hearing to gather testimony on the impact of legislative efforts to remove the term "navigable waters" from the Clean Water Act.  Pebley, an elected Trustee of the McAllen Public Utilities Board, explained to the Committee that such a legislative change would fundamentally expand federal jurisdiction under the Clean Water Act to include all waters and wetlands and would increase the need for federal discharge permits (i.e., Section 404 permits).

Pebley also expressed concern that a bill called the Clean Water Restoration Act would also extend federal jurisdiction over groundwater, as well as all surface waters.  If the bill were enacted, underground contractors, could be required to obtain a federal permit for every project.

Pebley reiterated AGC's commitment to water quality and the protection of public health and welfare as builders.  However, he continued that the federal reach over waters and wetlands should have a limit and that states and local governments are best equipped to look after their water and land use.  To provide the long sought-after clarity that the construction industry needs to comply with the existing complex regulatory process, the U.S. Corps of Engineers and the Environmental Protection Agency should conduct an administrative rulemaking to define crucial terms to delineate federal jurisdiction, Pebley added.

Last month, the Senate Environment and Public Works Committee approved its version of the Clean Water Restoration Act, S. 787, with a so-called "compromise" amendment.  As the amended legislation would still fundamentally expand federal jurisdiction over all waters and wetlands, AGC opposes the bill.

To contact your Senators to oppose S 787, use AGC's Legislative Action Center.

To view a copy of Pebley's written statement to the House Small Business Committee, click here.

For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.

The Committee on Transportation and Infrastructure met on Friday, July 31, to examine progress to date on implementing the American Recovery and Reinvestment Act. The hearing primarily addressed implementation efforts in non-transportation programs under the Committee's jurisdiction, including environmental, inland waterways and public buildings infrastructure. 

T&I Committee members received status  updates from agencies receiving Recovery Act dollars under its jurisdiction, including the EPA , U.S. Army Corps of Engineers, the General Services Administration and Coast Guard. With the exception of the highway funds, Chairman Jim Oberstar (D-Minn.) and other members of the committee expressed deep concern with the lack of construction activity underway with Recovery Act dollars and the rate in which Recovery Act funds were translating into contracts. The committee's concerns were in line with those raised by AGC.

Click here for video and additional information about the T&I "160 Day Report Card."

Click here for a chart detailing Agency dollars.

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org

On July 27,  AGC sent letters to 27 federal agencies asking them to identify barriers to getting stimulus funds to contracts.  In a letter sent to Environmental Protection Agency Administrator Lisa Jackson, AGC CEO Steve Sandherr outlined AGC's concerns with the slow progress of funds flowing to actual projects through EPA Recovery dollars for Clean and Drinking Water State Revolving Loan Fund programs. 

To date EPA has announced awards of $5.91 billion dollars to states and as of June 30,  EPA reported that nineteen states have put 195 projects out to bid totaling $512 million.  However, by their own admission, only $20-30 million or approximately 0.5% has actually been committed to SRF-funded projects in the form of contracts.   AGC has requested that EPA identify barriers to getting funding obligated to contracts for water infrastructure projects and asked that the EPA increase assistance to state and municipal water authorities in order to expedite contracts.

Click here for a copy of the letter to EPA.

For more information, contact Perry Fowler at (703) 837-5321 or fowlerp@agc.org