WATER ISSUE PAPER Liza Barratachea The Greater San Antonio Chamber of Commerce Vice President Public Affairs

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1 Secure $10M in the FY14 Energy and Water appropriations bill from within the U.S. Army Corps of Engineers Construction General Account for reimbursing Bexar County for advancing a portion of the federal share of the San Antonio Channel Improvement Project (Mission Reach Ecosystem Restoration and Recreation Project). The Mission Reach project will restore the ecosystem of an eight-mile stretch of the San Antonio River south of downtown previously channelized for flood control purposes. The project will plant 23,000 native trees, 334 acres of riparian woodland habitat, 113 acres of aquatic habitat, 31 riffle structures, 13 acres of embayment, and restore two river remnants while also maintaining and or increasing the flood control capabilities of the original U.S. Army Corps of Engineers (USACE) project. Secure $10 million in the FY 14 Energy and Water appropriations bill from within the USACE Construction General account for the San Antonio Channel Improvement Project (Mission Reach Ecosystem Restoration and Recreation Project) which will reimburse the non-federal interest per section 115 of P.L ; ensuring the federal government meets its financial obligation and contractual commitment to the Mission Reach Ecosystem Restoration and Recreation Project. Based on the Phase 3 construction contract and cost estimates for design, real estate, and utility relocations it is estimated that the local sponsor is eligible to be reimbursed approximately $58.4 million for advancing the federal contracted funding share. Reimbursement funding may be released to the San Antonio River Authority (SARA) when the project is substantially complete prior to implementation of monitoring and adaptive management activities per the March 31, 2010 Integral Determination Report and as authorized by Section 3154 of the Water Resources Development Act of 2007 and Section 115 of the Omnibus Appropriations Act, 2009, P.L We are requesting $10 million in FY 14 for reimbursement of the local community for advancing the federal share which kept the project on the optimum construction schedule and ensures the project will be complete in We will continue to request appropriations in $10 million increments to ensure the local funding partner is made whole for advancing the federal share.

2 Total Bexar County City SAWS Private USACE Mission Reach Project $245.7 $176.6 $6.5 $6.0 $4.7 $51.9 Bexar County s total contribution committed to the Mission Reach project of $176.6 million is made up of $75.6 million from Bexar County s Flood Tax, $39.7 million from Bexar County s Visitor Tax and an additional $61.3 million to advance federal funding to keep the project on the optimum schedule. Based on the USACE cost projections the estimated total federal funding obligation for the Mission Reach is $113.2 million, of which only $51.9 million has been funded. Bexar County will be eligible for reimbursement of the local funding advance should additional federal funding be appropriated by Congress. SARA is committed to Operation and Maintenance of the Mission Reach as construction phases are completed.

3 Chemical Facility Anti-Terrorism Standards Goal: Protect Local Control of Municipal Drinking Water Systems San Antonio Water System (SAWS) opposes efforts to remove the water and wastewater utility exemption from the Chemical Facility Anti Terrorism Standards (CFATS) program and mandate the use of disinfectants considered inherently safer technologies. Why keep municipal water futilities exempt from CFATS and under local control? Municipal water systems prepare, conduct, and submit vulnerability assessments and emergency response plans to EPA SAWS is already subject to extensive regulation under the Safe Drinking Water Act, the Clean Water Act, the Clean Air Act, the Emergency Planning and Community Right to Know Act, the Public Health Protection and Bioterrorism Preparedness and Response Act, OSHA standards, and various state and local regulations, to ensure the safe management of hazardous chemicals Chemicals used by SAWS and other Texas public water systems are already monitored by a number of local, state and federal agencies through EPA s Tier II and Risk Management Program rules SAWS complies with the Clean Air Act s Risk Management Program and is required to maintain emergency response plans for natural disasters and terrorism incidents Water systems serving more than 3,300 people are required to prepare Vulnerability Assessments and Emergency Response plans for the EPA Support local control of disinfection methods Mandating inherently safer technologies might create unintended public health consequences SAWS disinfection method is based on Edwards Aquifer water chemistry SAWS evaluations show chlorine gas to be the most effective, economical, versatile, and safe disinfectant

4 Goal: Help SAWS diversify San Antonio s water supplies to ensure healthy drinking water for the future. Brackish Groundwater Desalination Project Top legislative priority for SAWS Located on SAWS property in south Bexar County Phase 1 will desalinate up to 11,800 acre feet per year of Wilcox Aquifer brackish groundwater found in south Bexar County Total project cost: $296,807,455 (completed in three phases) Water Resources Development Act The Water Resources Development Act (WRDA) is the authorizing legislation for the Army Corps of Engineers In 2012, SAWS staff met with Army Corps of Engineers personnel, who spoke to the germaneness of the project, but stressed the need for a Congressional Authorization to participate WRDA is considered a bi-annual piece of legislation and must be considered once in every Congress. Consideration is expected to begin at some point during 2013 Water Infrastructure Finance and Innovation Authority (WIFIA) Currently a proposal similar to TIFIA Leverages federal funds with substantial private and non-federal investment in critical water infrastructure Does not add to the federal deficit and complements existing funding through SRFs Estimated that adding one new job in local water and wastewater projects creates 3.68 jobs in the national economy (US Conference of Mayors report) Chemical Facility Anti-Terrorism Act (CFATS) Continue to support local control of disinfection technology SUPPORT legislation to exempt water/wastewater utilities from CFATS OPPOSE legislation to remove water/wastewater utility exemption from CFATS

5 Goal: Support any federal participation or funding in order to be in compliance with any projects associated with the Habitat Conservation Plan For over two decades, the Edwards Aquifer (Aquifer) region has been deeply divided over how to balance the needs of species listed under the federal Endangered Species Act (ESA) that reside in the Aquifer-fed Comal and San Marcos springs with the water needs of a growing population dependent on the same Aquifer. In 2006, the United States Fish and Wildlife Service (USFWS) brought together stakeholders from throughout the region to develop a plan to protect the federally-listed species dependent upon the Edwards Aquifer. In May 2007, the Texas Legislature directed the Edwards Aquifer Authority and four state agencies to participate in this effort and to develop a plan by December 31, In January 2011, the stakeholders submitted a plan (the Edwards Aquifer Habitat Conservation Plan or EAHCP) to USFWS that satisfies the requirements of the ESA while maintaining local control of the Edwards Aquifer and bringing certainty to the region regarding continued use of the Aquifer. The USFWS approved the EAHCP on February 14, The estimated annual cost of implementing the EAHCP averages over $18.6 million. While the EAHCP contains a mechanism for funding its implementation, those costs fall disproportionately on the permitted municipal and industrial users of the Aquifer. Specifically, federal facilities, including military bases in the region that utilize the Aquifer, are not required to share in these costs. Therefore, congressional funding is sought for the implementation of one part on the EAHCP the maintenance of USFWS refugia at its National Fish Hatchery & Training Center in San Marcos, Texas, to serve as a safety net for the federally-listed species if an extraordinarily severe drought were to occur.