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W E E K L Y  U P D A T E  October 23, 2017
In This Issue

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Senate Approves
Water Infrastructure
Flexibility Act
 
The Senate on October 5 unanimously approved S.692, the Water Infrastructure Flexibility Act. Introduced by Senator Deb Fischer (NE) and cosponsored by Northeast-Midwest Coalition members Senators Brown (OH), Portman (OH), and Klobuchar (MN), this bipartisan legislation makes it easier for municipalities to incorporate green infrastructure in their wastewater pollution control plans by streamlining the permitting process required under the Clean Water Act. The bill also directs the EPA to assess the affordability of the various investments made by municipalities in drinking water and clean water projects. This bill's House counterpart, H.R.2355, was introduced by Rep. Bob Latta (OH), and is yet to receive a Committee vote.
 
For more information, contact  Dr. Sri Vedachalam , Director for the Safe Drinking Water Research and Policy Program at the Northeast-Midwest Institute.
Bipartisan Legislation Strengthening the Regional Conservation Partnership Program (RCPP) Introduced
 
Last week, U.S. Senators Debbie Stabenow (MI) and Joni Ernst (IA) introduced the Regional Conservation Partnership Program Improvement Act, which seeks to strengthen the Regional Conservation Partnership Program (RCPP), the main federal conservation program that was first authorized in the 2014 Farm Bill. The bill proposes to increase flexibility in the RCPP to engage more diverse partnerships and expand conservation resources. The bill has received support from groups ranging from the Nature Conservancy and the Environmental Defense Fund to General Mills and Walmart. The RCPP bill will likely be part of the larger discussion on the Farm Bill as Congress looks to reauthorize the law in 2018.  More information on the bill can be found here.

For more information, contact Matthew McKenna , Director for the Great Lakes Washington Program at the Northeast-Midwest Institute.
Recent Developments Indicate the
Future of NAFTA is Uncertain

Last week the United States, Canada, and Mexico announced an extension of talks to renegotiate the North American Free Trade Agreement (NAFTA). The talks, which were originally scheduled to be concluded in November, are now scheduled to be completed sometime in the first quarter of 2018.

There are a number of issues yet to be resolved. The United States, for instance, seeks an agreement to substantially restructure Canada's dairy sector, which the White House has claimed is unfairly protectionist. Canada has repeatedly flatly denied the possibility of accepting the United States' demands with respect to this issue.

If talks reach an impasse, President Trump could follow through on his threats to exit the pact. In that case, U.S. exporters would face tariffs when sending goods to Canada and Mexico. While some tariffs would be fairly small, some parts of the agricultural sector would be hit hard. American exporters of chicken and potatoes, for example, could face tariffs of 75% when shipping to Mexico.

Members of Congress from areas that would be strongly affected by NAFTA withdrawal may pressure the President to moderate the United States' negotiating positions and find a way to remain in the agreement. Trump has previously suggested the possibility of separate bilateral agreements with each country. While this is possible, it would not resolve the sticking points that have led to the stalled negotiations.

For more information, contact Joe Vukovich , Senior Policy Analyst for the Mississippi River Basin Program at the Northeast-Midwest Institute.
NEMWI Senior Fellow
Holds Workshop on Brownfields

NEMWI Senior Fellow Charlie Bartsch discussed alternative, non-EPA federal funding tools for brownfield cleanup and redevelopment at an October 18 workshop for Illinois communities, coordinated by the Kansas State Technical Assistance for Brownfields program, and co-sponsored by the city of Ottawa, IL and the Illinois EPA.

The presentation informed participants on grants, loans, and tax incentives administered by the USDA, DOT, HUD, and other federal entities. These programs, when combined, can finance brownfield redevelopment goals as well as supplement EPA grants, and covered several case studies from across the Northeast-Midwest region to demonstrate their effectiveness. Materials used in the presentation can be found here.

In explaining the significance of the presentation, Mr. Bartsch stated: "As the federal funding climate becomes more volatile, stakeholders must become more flexible in their financing strategies and learn about funding opportunities beyond the EPA brownfields grant program."

Highlighted by the presentation were the HUD's Community Development Block Grants, the Economic Development Administration's public works grants, and the USDA's rural development funds. Each of these programs were used to redevelop brownfield sites to great effect. The Historical, New Markets, and Low-Income Housing tax credit programs were also underscored as excellent financing tools because they are not subject to budget cuts and bring more certainty to the financing process.

For more information, please contact Charlie Bartsch, Senior Fellow at the Northeast-Midwest Institute.
Some Midwest Cities Taking Action to
Replace Lead Pipe Inventory
 
The 2014 Flint water crisis and continued efforts to replace Flint's lead service lines (LSLs) has brought national attention to the region's problematic aged drinking water infrastructure. According to the American Water Works Association's 2016  estimate , 55% of the nation's LSLs are located in Midwestern states. LSLs are at risk of leaching lead when exposed to water improperly treated for corrosion, as in the case of Flint, MI. Recent developments indicate that some cities and states in the region are taking steps to overhaul LSLs and manage their water infrastructure.
 
Cincinnati, OH has adopted one of the most assertive plans in the region so far. This June, the city adopted three  ordinances  that establish a  legal framework  for replacing LSLs. Modeled after Madison, WI's 2001-2011  initiative  to replace all of its 8,000 LSLs, Cincinnati has gone a step further by mandating all property owners to begin the process of replacing their LSLs this year. The ordinances additionally established a cost sharing policy and a charity fund to help provide financial assistance to low-income households. Additionally, the city has also taken steps to protect and inform tenants and home buyers with an  interactive map  of LSL locations on both public and private property and by requiring landlords to tell tenants of the property's LSLs before the lease is signed.
 
Other Midwestern Cities have also taken positive steps towards removing LSLs in 2017. Toledo and surrounding counties are  negotiating  a plan to remove LSLs and administer an affordability program as part of a deal that would form a regional water district. East Chicago, IN has  begun  to replace lead service lines, starting in the USS Lead Super Fund site. Pittsburgh passed  legislation  in July which would facilitate the replacement of private-side lines while work is being done on public-side lead lines, and also established financial assistance for lower-income households. Complete LSL overhauls in  Detroit  and  Flint  are already well underway even after  recent  Flint water quality tests have shown the water to be safe to drink.
 
Despite these specific advances, replacing LSLs continues to be a lengthy and expensive endeavor requiring millions of dollars and years of effort. Moreover, many of these initiatives are only recent and only a few cities-- Lansing, MI  and  Madison, W I being the prime examples--have accomplished a complete overhaul of their LSLs. As such, there is no agreed-upon model dictating a funding mechanism or best practices for such initiatives. Still, these basic steps are encouraging developments.
 
For more information, contact  Dr. Sri Vedachalam , Director for the Safe Drinking Water Research and Policy Program at the Northeast-Midwest Institute.
This Week on Capitol Hill

The House is planning to consider the Senate's budget resolution which, if passed, will allow a potential tax reform bill to pass the Senate with a 50-vote threshold.

Senate leadership is continuing to negotiate a bipartisan healthcare bill which could include provisions to resume federal cost-sharing subsidies to insurers. The Senate will likely vote on a $36.5 billion disaster relief bill already passed by the House.

A list of key Congressional committee activity that impacts the region can be viewed below:

Tuesday, October 24
Wednesday, October 25
For more information, please email info@nemw.org.

NEMWI: Strengthening the Region that Sustains the Nation