<DOC> [110th Congress House Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:46013.wais] DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY ======================================================================= HEARING before the SUBCOMMITTEE ON FEDERAL WORKFORCE, POSTAL SERVICE, AND THE DISTRICT OF COLUMBIA of the COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION __________ APRIL 15, 2008 __________ Serial No. 110-104 __________ Printed for the use of the Committee on Oversight and Government Reform Available via the World Wide Web: http://www.gpoaccess.gov/congress/ index.html http://www.house.gov/reform U.S. GOVERNMENT PRINTING OFFICE 46-013 PDF WASHINGTON DC: 2008 --------------------------------------------------------------------- For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092104 Mail: Stop IDCC, Washington, DC 20402ÿ090001 COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HENRY A. WAXMAN, California, Chairman EDOLPHUS TOWNS, New York TOM DAVIS, Virginia PAUL E. KANJORSKI, Pennsylvania DAN BURTON, Indiana CAROLYN B. MALONEY, New York CHRISTOPHER SHAYS, Connecticut ELIJAH E. CUMMINGS, Maryland JOHN M. McHUGH, New York DENNIS J. KUCINICH, Ohio JOHN L. MICA, Florida DANNY K. DAVIS, Illinois MARK E. SOUDER, Indiana JOHN F. TIERNEY, Massachusetts TODD RUSSELL PLATTS, Pennsylvania WM. LACY CLAY, Missouri CHRIS CANNON, Utah DIANE E. WATSON, California JOHN J. DUNCAN, Jr., Tennessee STEPHEN F. LYNCH, Massachusetts MICHAEL R. TURNER, Ohio BRIAN HIGGINS, New York DARRELL E. ISSA, California JOHN A. YARMUTH, Kentucky KENNY MARCHANT, Texas BRUCE L. BRALEY, Iowa LYNN A. WESTMORELAND, Georgia ELEANOR HOLMES NORTON, District of PATRICK T. McHENRY, North Carolina Columbia VIRGINIA FOXX, North Carolina BETTY McCOLLUM, Minnesota BRIAN P. BILBRAY, California JIM COOPER, Tennessee BILL SALI, Idaho CHRIS VAN HOLLEN, Maryland JIM JORDAN, Ohio PAUL W. HODES, New Hampshire CHRISTOPHER S. MURPHY, Connecticut JOHN P. SARBANES, Maryland PETER WELCH, Vermont ------ ------ Phil Schiliro, Chief of Staff Phil Barnett, Staff Director Earley Green, Chief Clerk Lawrence Halloran, Minority Staff Director Subcommittee on Federal Workforce, Postal Service, and the District of Columbia DANNY K. DAVIS, Illinois ELEANOR HOLMES NORTON, District of KENNY MARCHANT, Texas Columbia JOHN M. McHUGH, New York JOHN P. SARBANES, Maryland JOHN L. MICA, Florida ELIJAH E. CUMMINGS, Maryland DARRELL E. ISSA, California DENNIS J. KUCINICH, Ohio, Chairman JIM JORDAN, Ohio WM. LACY CLAY, Missouri STEPHEN F. LYNCH, Massachusetts Tania Shand, Staff Director C O N T E N T S ---------- Page Hearing held on April 15, 2008................................... 1 Statement of: Capacasa, Jon M., Director of Water Protection Division for Water, Environmental Protection Agency; Thomas Jacobus, general manager, Washington Aqueduct; Doug Siglin, Federal Affairs director, Chesapeake Bay Foundation; and Robert Boone, president, Anacostia Watershed Society.............. 120 Boone, Robert............................................ 144 Capacasa, Jon M.......................................... 120 Jacobus, Thomas.......................................... 126 Siglin, Doug............................................. 135 Martin, Robin B., chairman, Board of Directors, D.C. Water and Sewer Authority; and Jerry Johnson, general manager, D.C. Water and Sewer Authority............................. 82 Johnson, Jerry........................................... 90 Martin, Robin B.......................................... 82 Stephenson, John B., Director, Natural Resources and Environment, U.S. Government Accountability Office......... 59 Tangherlini, Daniel, city administrator, District of Columbia, and D.C. WASA Board member; Anthony H. Griffin, county executive, Fairfax County, and D.C. WASA Board member; Timothy Firestine, chief administrative officer, Montgomery County, and D.C. WASA Board member; and Jacqueline F. Brown, chief administrator officer, Prince George's County, and D.C. WASA Board member................ 157 Brown, Jacqueline F...................................... 172 Firestine, Timothy....................................... 167 Griffin, Anthony H....................................... 162 Tangherlini, Daniel...................................... 157 Letters, statements, etc., submitted for the record by: Boone, Robert, president, Anacostia Watershed Society, prepared statement of...................................... 146 Brown, Jacqueline F., chief administrator officer, Prince George's County, and D.C. WASA Board member, prepared statement of............................................... 174 Capacasa, Jon M., Director of Water Protection Division for Water, Environmental Protection Agency, prepared statement of......................................................... 123 Davis, Hon. Danny K., a Representative in Congress from the State of Illinois: Prepared statement of.................................... 13 Various prepared statements.............................. 3 Davis, Hon. Tom, a Representative in Congress from the State of Virginia, prepared statement of......................... 199 Firestine, Timothy, chief administrative officer, Montgomery County, and D.C. WASA Board member, prepared statement of.. 169 Griffin, Anthony H., county executive, Fairfax County, and D.C. WASA Board member, prepared statement of.............. 164 Jacobus, Thomas, general manager, Washington Aqueduct, prepared statement of...................................... 128 Johnson, Jerry, general manager, D.C. Water and Sewer Authority, prepared statement of........................... 93 Marchant, Hon. Kenny, a Representative in Congress from the State of Texas, prepared statement of...................... 201 Martin, Robin B., chairman, Board of Directors, D.C. Water and Sewer Authority, prepared statement of................. 85 Siglin, Doug, Federal Affairs director, Chesapeake Bay Foundation, prepared statement of.......................... 137 Stephenson, John B., Director, Natural Resources and Environment, U.S. Government Accountability Office, prepared statement of...................................... 61 Tangherlini, Daniel, city administrator, District of Columbia, and D.C. WASA Board member, prepared statement of 159 Van Hollen, Hon. Chris, a Representative in Congress from the State of Maryland: House Rept. 104-635...................................... 25 Prepared statement of.................................... 52 DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY ---------- TUESDAY, APRIL 15, 2008 House of Representatives, Subcommittee on Federal Workforce, Postal Service, and the District of Columbia, Committee on Oversight and Government Reform, Washington, DC. The subcommittee met, pursuant to notice, at 2:45 p.m. in room 2154, Rayburn House Office Building, Hon. Danny K. Davis (chairman of the subcommittee) presiding. Present: Representatives Davis of Illinois, Waxman, Cummings, Kucinich, Clay, Lynch, Norton, Sarbanes, Issa, Marchant, and Jordan. Also present: Representative Van Hollen. Staff present: Tania Shand, staff director; Lori Hayman, counsel; William Miles, professional staff member; Marcus A. Williams, clerk; Earley Green, chief clerk; Howie Denis, minority senior professional staff member; and Benjamin Chance and Chris Espinoza, minority professional staff members. Mr. Davis of Illinois. The subcommittee will come to order. The subcommittee would like to welcome Ranking Member Marchant, witnesses and all of those in attendance. Ladies and gentlemen, welcome to the subcommittee's first D.C. Water and Sewer Authority [WASA], oversight hearing of the 110th Congress. It has been nearly 3 years since a hearing has been held on WASA and issues pertaining to the quality of the city's drinking water and environmental conditions. Today's hearing will provide the subcommittee with the most current developments in WASA's operations, finances and infrastructure improvement efforts. Given the presence of the Federal Government in the Washington, DC, area and the reliance on WASA for the provision of water-related services to the Federal Government, today's oversight hearing is a critical part of the processes for ensuring the continual and reliable delivery of safe drinking water and wastewater treatment services to area residents, businesses, Government agencies and certain suburban jurisdictions. Since its creation as a quasi-independent regional utility agency in 1996, WASA has made significant progress in carrying out its statutory mandate of providing retail drinking water distribution, wastewater collection and wastewater treatment services to 570,000 District residential and commercial customers and providing wholesale wastewater treatment services to over 1.6 million customers in Montgomery and Prince George's Counties through the Washington Suburban Sanitary Commission and Fairfax and Loudoun Counties and the city of Vienna, VA. Over the past decade, WASA has invested over $1 billion in various infrastructure improvements, taken steps to guarantee the region's safe drinking water, attained a AA bond rating, and ensured that the Blue Plains Wastewater Treatment Plant operated in compliance with all permit requirements. In other words, we have come a long way from the boiled water alerts of the mid-1990's. Despite the apparent progress WASA and its regional partners have made over the years, a number of issues, challenges, and concerns remain to be addressed. First and foremost, the subcommittee looks forward to receiving an update on WASA's lead service line replacement program and possible alternative approaches to reducing the leakage of lead into the drinking water supply. The Coalition of Parents for Non-Toxic Alternatives, the Alliance for Healthy Homes and Clean Water Action have pointed to ongoing shortcomings in WASA's management of the District's lead in water problem. I ask unanimous consent that their statement be entered into the record. Without objection, so ordered. [The information referred to follows:] [GRAPHIC] [TIFF OMITTED] T6013.001 [GRAPHIC] [TIFF OMITTED] T6013.002 [GRAPHIC] [TIFF OMITTED] T6013.003 [GRAPHIC] [TIFF OMITTED] T6013.004 [GRAPHIC] [TIFF OMITTED] T6013.005 [GRAPHIC] [TIFF OMITTED] T6013.006 [GRAPHIC] [TIFF OMITTED] T6013.007 [GRAPHIC] [TIFF OMITTED] T6013.008 [GRAPHIC] [TIFF OMITTED] T6013.009 Mr. Davis of Illinois. With evidence of trace amounts of pharmaceuticals in the area's water supply and concerns over the health of local aquatic life, I anticipate that both the quality of the metropolitan area's drinking water and the condition of our area's waterways will be major topics of discussion this afternoon. Further, as part of a 10-year Capital Improvement Program [CIP], WASA has adopted an aggressive and somewhat ambitious time schedule for making these enhancements to the agency's aging infrastructure, equipment, and systems. Two of the most noteworthy Capital Improvement Projects currently underway include the combined sewer overflow project, a part of WASA's long-time control plan, and the Blue Plains total nitrogen program. It is my understanding that WASA and the Environmental Protection Agency [EPA] have been conducting ongoing discussions on how best to meet the Blue Plains' recently modified national pollutant discharge elimination system permit. The subcommittee looks forward to hearing about the outcome of recent negotiations on WASA's proposed plans for its Blue Plains total nitrogen program. Today's hearing will examine H.R. 5778, ``The District of Columbia's Water and Sewer Authority Independence Preservation Act,'' which would amend the D.C. Home Rule Charter Act to provide the legal authority for WASA to function as a fully independent authority by officially shifting oversight of the agency's financial operations and personnel matters to WASA's Board of Directors instead of the District of Columbia's chief financial officer. I thank you and I look forward to hearing the testimony of today's witnesses. I also ask unanimous consent that the statements of Ranking Member Marchant and full committee Member Tom Davis be entered into the record. Without objection, so ordered. [The prepared statement of Hon. Danny K. Davis follows:] [GRAPHIC] [TIFF OMITTED] T6013.010 [GRAPHIC] [TIFF OMITTED] T6013.011 [GRAPHIC] [TIFF OMITTED] T6013.012 [GRAPHIC] [TIFF OMITTED] T6013.013 [GRAPHIC] [TIFF OMITTED] T6013.014 [GRAPHIC] [TIFF OMITTED] T6013.015 [GRAPHIC] [TIFF OMITTED] T6013.016 Mr. Davis of Illinois. I now yield to Ms. Norton for an opening statement. Ms. Norton. Thank you very much, Mr. Chairman. I particularly thank you for this hearing. When Representative Tom Davis was Chair of this committee we took to holding hearings on an annual basis, particularly after WASA had significant lead in the water problems. This is a hearing I can endorse. We do not have hearings here on District of Columbia matters because we are not the Council of the District of Columbia, but this is a hybrid agency if ever there was one. It is located in the District of Columbia. It has been a District of Columbia agency since it was established. Yet, serves the region, and the region pays for its services so it is appropriate that we have these hearings. Now, because it is classified as a D.C. agency, and should be, of course, the matter goes to the Council and the Mayor, as well, but it has always been treated as what it is: an agency that, yes, chiefly serves the District of Columbia, but it also serves neighboring counties, who also pay for the service, particularly the fewer services. Before I get to the real subject matter of this hearing, I would like to get to what the hearing is not about. The hearing is not about what you discussed, Mr. Chairman, because the matter that you clarified as to changes that I have agreed upon has been done. I think it is very important, when we get the cooperation of all of us concerned--that is certainly the way I deal with most Members of Congress, especially of the region-- that we make sure we always handle matters in that way. I do want to say that there was an attempt to put something on the D.C. appropriation. You are looking for a fight if you do that. If you have a problem with the District of Columbia, they could be wrong. I would be willing to negotiate with you, because if they are wrong I am going to tell them they are wrong. But the one thing I will fight you on is to change law by fiat by doing what, frankly, is not allowed, Mr. Chairman, and that is trying to change the law on an appropriation bill. I found a very effective partner, and I am not surprised, given the way in which he and I have always operated, that he and I could sit down and come to an agreement on this matter, and so I want to acknowledge and thank my good colleague, Chris Van Hollen, for the way he has worked with me constantly so we could solve this matter and it will not become a matter of contention. I think it ought to be handled in this hearing so that it does not become a matter of contention. It became clear to me in letters I wrote to the Mayor and to the Council, who have cooperated fully with me, that members of the Council, seeing that WASA, in particular, was a D.C. agency, began to treat it, or at least one or two members did, and then proceeded to treat it as if it were just another D.C. agency. Well, they were ignorant of some of the changes that Chairman Davis and I painstakingly negotiated when WASA got into deep trouble. So it seemed to me that the way to handle this was to, in fact, inform the Council of what had happened. Mr. Chairman, I wrote two letters and sent copies of this letter to the appropriate people in the region, the Representatives and others, Senate and House, one on March 14th and another on April 10th. The one on March 14th I actually released. I am releasing and asking that the two letters be put into the record. Another letter on April 10th, when it was clear that this matter had not been settled. To just read one sentence from the letter, I say, ``Therefore, I ask the Council to move expeditiously in the Budget Support Act, using the emergency process to remove the provisions that affected the WASA personnel structure.'' Mr. Chairman, this simply involves the fact that the District had no commuter tax, has many of its agencies with members from the region, and in its frustration sometimes tries to at least see to it that D.C. residents get jobs. That is not appropriate for an agency which is regional in its span. I want to thank Mayor Fenty and Chairman Vincent Gray for cooperating with me. In the Budget Support Act is an amendment to section 213 of the D.C. Code that removes any priority for any member of the region, including the District of Columbia, for jobs. Essentially, what has been agreed upon by the Member from Maryland, Mr. Van Hollen, and me is that these are matters for the Board. This is the status quo ante. If, in fact, you have a board that has members from three regions, you have something that is unusual in this country. It is sort of like the Metro Board, but it is sort of different, because Metro is not a D.C. agency. We have done a hybrid here and we have to make sure that we re-educate officials every so often, for example: new members of the Council as to how this works, because there is nothing quite like it. Therefore, we make it clear that it is the Board, not any jurisdiction, that is to decide matters affecting finances, procurement, and personnel. You can't have a regional agreement otherwise. I hope that this matter will not become any point of contention here because, in fact, we need to move on to what this hearing must be about. We have been doing an annual hearing on WASA, and the reason we had to do it on an annual basis is we discovered lead in the water led to a huge controversy. Several hearings were held here a few years ago when that happened. It led to really path-breaking hearings on lead in the water that alerted many other jurisdictions. The chairman, then Ranking Member Mr. Waxman, and I introduced a complete revision of the Clean Water Act that he had been responsible for, even before I came to Congress. This water still is controversial in the District of Columbia, and it is one of the most important things that we have to discuss in this hearing. We are going to be discussing both water and sewer services. We are going to be discussing what I think are really important questions raised by the decision of WASA, under pressure, to do partial replacement of lead pipes. When you replace a lead pipe on the public part, the part that the public controls, and yet the private citizen does not; there is still lead in the water. Meanwhile, the Aqueduct had to respond, as well, and we will be at pains to hear whether the new chemical in the water solves the problem for all intents and purposes. Beyond questions of safety for residents of the city and the region, I have a principal reason, as the lead sponsor of the Anacostia Watershed Initiative, which was passed last year as part of the Water Resources Development Act, and my own interest in broader efforts to green the District of Columbia and the national capital region. Indeed, tomorrow I am going to be holding a hearing in the subcommittee that I chair, first of a series on greening Washington and the national capital region, because the Federal Government has the largest footprint in this region, and therefore should be the leader in greening and energy conservation in a number of ways. We should be the leader for the rest of the country. Mr. Chairman, the Anacostia River matter is particularly important to members of the region. Actually, most of the Anacostia River is in Maryland. Most of the stuff that gets into the District of Columbia starts upstream. But they are our friends and we work together. Everybody in the region works on this bill, from Mr. Hoyer on down, if I may put it that way. But there is a special advantage to the fact that the District of Columbia has a part of the Anacostia. It has enabled me to go to the President of the United States, both Democratic and Republican Presidents, to get money put in the D.C. budget for the Anacostia River. That could not have happened, Maryland and Virginia but because our budget has to go to the President anyway, he normally adds a few dollars here and there. Most of the money I have been able to get came that way or from my membership on the Water Resources Subcommittee, where we have just gotten $35 million for upgrades and $20 million to clean the Anacostia. This year the President responded by putting $14.5 million in the D.C. budget for combined sewer overflow, the major reason why the Anacostia is polluted, and he should have and the Water Resources Committee and Congress should have, because of Federal involvement in the pollution of the Anacostia. It is the Federal Government that is on the banks of the Anacostia. It is the Corps of Engineers who built the sewer system that is the problem in the first place. We just erected a new Department of Transportation that overlooks the stinking Anacostia River. We have just bought to the Navy Yard from Virginia, the Naval Sea Systems Command, to a renovated Navy Yard right there on the Anacostia. The original and most serious District side contamination came from the old Navy Yard. The Federal Government owes the region, and particularly this city, for the contamination that is there now. Yet, we have been unable to get long-term money for what is essentially a Federal problem. I am going to be seeking the help of other Members of the region. I note that in my own Water Resources Subcommittee there are members of the subcommittee who have been able to get authorizations for hundreds of millions of dollars at a time for combined sewer overflow, because this is a national problem. The difference between them and us is that the Federal Government had nothing to do with their combined sewer problem. They don't have a Federal river like the Anacostia, built by the Corps of Engineers. Yet, because of the way in which money gets distributed in this place, these people get hundreds of millions of dollars in order to deal with the problem, but we have not been as fortunate and the Anacostia is one of the most polluted rivers in the United States. So, Mr. Chairman, this is a hearing that we may be asking you to have on a regular basis, simply because, although the Council does have oversight, obviously Maryland and Virginia are not subject to their oversight. In fact, this matter was resolved continuing WASA as a D.C. agency only because then Chairman Tom Davis and I worked to get an amicable compromise. I believe that the agreement we have achieved between my good friend, Mr. Van Hollen, and me takes us back to the status quo ante, which is working quite well, thank you. Thank you very much, Mr. Chairman. Mr. Davis of Illinois. Thank you. Without objection, your request will be included in the record. Mr. Sarbanes. Mr. Sarbanes. Very briefly, Mr. Chairman, thanks for this hearing. I look forward to the testimony. I think Congresswoman Norton brings an extremely responsible perspective to the issue of the jurisdictional structure of WASA. Of course, she brings that regional perspective through the particular lens of the District of Columbia. I come to this discussion and the issue of the regional perspective through the particular lens of Maryland. I look forward to hearing from Congressman Van Hollen and hearing more about the balance that has been struck here. I would note that when we talk about the regional reach or effect or impact of WASA, it is not just the immediate region, because obviously there are impacts on the Chesapeake Bay and the wider region and I have that perspective, as well. Thank you. Mr. Davis of Illinois. Thank you very much, Mr. Sarbanes. Mr. Van Hollen. Mr. Van Hollen. Thank you, Mr. Chairman. I want to thank you and the ranking member for holding this hearing on the D.C. Water and Sewer Authority and thank you for allowing me to join with you today. I do want to thank Congresswoman Norton for being such a constructive partner in this effort as we seek to resolve some of the issues that have already been discussed today. WASA, of course, has a regional impact, as you and others have noted. It affects a lot of my constituents, both as receivers of the services and also as employees and ratepayer. As Mr. Sarbanes has noted, it also has an impact regionally on the waterways, both the Potomac River, the Anacostia River, and also the Chesapeake Bay. I am pleased that we have been able to work together on a regional basis with respect to trying to get more Federal funds to clean up the Anacostia and the Potomac and the Chesapeake Bay. In fact, the Chesapeake Bay Watershed Task Force, which is made up of Members from the entire region, is fully supporting the request for the cleanup of the Anacostia, and we want to make sure that we get those funds. WASA has come a long way from the days of earlier environmental and financial mismanagement that plagued its predecessor agency. As I think has been noted by the chairman, the Blue Plains Wastewater Treatment Plant was continually cited by the EPA and the Justice Department for contamination of local waterways back before the regional authority was created. In addition, the Justice Department cited the former agency for diversion of $96 million in fiscal year 1995 from the operations and maintenance of this regional wastewater treatment center into the general fund of the District of Columbia. It was those problems and the misuse of regional user fees that led to WASA's creation in the first place, and it was largely due to the foresight of members of this committee-- Congresswoman Norton, Congressman Tom Davis--who crafted that earlier solution to this problem. They created WASA as a utility within the District of Columbia but with independent financial personnel and procurement operations authority to be governed by an independent board of directors. This board is comprised of members from each of the participating jurisdictions, from the District of Columbia, Maryland, and Virginia. In fact, the principal board members from each participating jurisdiction are the chief administrative officers from their respective localities, and we are going to be hearing from some of them later in today's hearing. The House Report 104-635 from this committee in 1996 reflects the hard work of this committee and that of Ms. Norton and Mr. Tom Davis to establish WASA as an independent entity, and I request that it be included in the record today. 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Fortunately, those earlier problems that plagued Blue Plains are over and behind us; however, much of WASA's success can be attributed to the new regional authority and design that was established earlier by the work of the Congress to make sure that it is run as an independent, professional enterprise that is accountable to the entire region that it serves. It should be noted that the suburban jurisdictions of Maryland and Virginia contribute in excess of $100 million a year to WASA. It is important to ensure that sufficient controls are build into the system to prevent a future commingling of the funds between WASA's user fees and the funds of the participating jurisdictions. I believe, as Ms. Norton has said, that it is essential to WASA's continued success to maintain its regional autonomy. The Home Rule Act that established the District of Columbia's CFO has created ambiguity regarding the relationship between the WASA CFO and the D.C. CFO, and two recent enactments of the D.C. government served just to cloud the question of WASA's independence. I am pleased to have been working with Ms. Norton and Mr. Davis and others to resolve these conflicts and to ensure WASA's independence. I appreciate the letters and work of Ms. Norton and her communications with the D.C. Council in that regard. We need to put these conflicts regarding governance behind us so that we as a region are better able to confront the formidable undertakings that lay before us. As has been said, this subcommittee has had hearings on this subject in the past, and hopefully with the chairman's indulgence will continue to have them going forward to really address the very serious issues that confront WASA. But resolving this governance issue is essential to that success. WASA is currently contemplating massive upgrades to the region's sewage and wastewater treatment infrastructure. These are changes that are necessary to prevent raw sewage, in addition to nitrogen discharge, from contaminating our rivers and ultimately the Chesapeake Bay. In working with Ms. Norton and Mr. Davis and others, I have introduced a bill, H.R. 5778, that will clarify the independence of WASA's CFO and clarify WASA's personnel procurement and financial management powers and make it clear that they should be regulated by its regional board of directors. We look forward to working with the D.C. City Council to ensure that recently passed legislation that provides personnel preferences to D.C. residents does not apply in this regional organization, and look forward to continuing to work with them in this regard. I am looking forward to the testimony of the members of the panels that we are going to hear from today, and look forward to moving forward to address the important regional issues that we are going to be hearing about. Thank you, Mr. Chairman. [The prepared statement of Hon. Chris Van Hollen follows:] [GRAPHIC] [TIFF OMITTED] T6013.043 [GRAPHIC] [TIFF OMITTED] T6013.044 [GRAPHIC] [TIFF OMITTED] T6013.045 [GRAPHIC] [TIFF OMITTED] T6013.046 [GRAPHIC] [TIFF OMITTED] T6013.047 [GRAPHIC] [TIFF OMITTED] T6013.048 [GRAPHIC] [TIFF OMITTED] T6013.049 Mr. Davis of Illinois. Thank you very much, Mr. Van Hollen. Without objection, your request will be included in the record. We will now move to our first witness. Mr. John Stephenson is the Director of Natural Resources and Environment Issues for the U.S. Government Accountability Office. Mr. Stephenson's work focuses on diverse environmental protection issues such as clean air, clean water, safe drinking water, safe chemical controls, toxic substances, climate change, Superfund, and hazardous materials' spill prevention and cleanup, as well as critical infrastructure protection. Thank you, Mr. Stephenson. It is our tradition that witnesses before the committee be sworn in. [Witness sworn.] Mr. Davis of Illinois. The record will show that the witness answered in the affirmative. Thank you very much, Mr. Stephenson, and we will proceed. Of course, you know that we try to do this in 5 minutes, and then we will have questions. We will use the light. Please go right ahead. STATEMENT OF JOHN B. STEPHENSON, DIRECTOR, NATURAL RESOURCES AND ENVIRONMENT, U.S. GOVERNMENT ACCOUNTABILITY OFFICE Mr. Stephenson. Thank you, Mr. Chairman and members of the subcommittee. I am pleased to be here today to participate in this oversight hearing of the D.C. Water and Sewer Authority [WASA]. I will summarize GAO's reports on WASA's efforts to reduce lead exposure in drinking water, but I want to put my comments into context by summarizing other GAO work on the many challenges facing all large water utilities like WASA across the Nation. As we all remember, media reports in early 2004 about lead contamination in the District's drinking water raised serious concerns about the health risk posed from existing lead service lines and about how well local and Federal agencies were carrying out their responsibilities. After much debate, WASA ultimately signed a consent decree to improve water sampling, enhance public education, and identify and replace lead service lines. WASA undertook a $400 million program to replace roughly 35,000 lines by 2016 and provided incentives to encourage homeowners to replace their portion of the lines. It also added orthophosphate to the water supply. This treatment causes the formation of a protective coating inside the lines that helps prevent lead from leaching into the water. So where are we today? WASA has replaced their portion of 14,260 lead service lines through the first quarter of fiscal year 2008; however, of these, only 2,128 homeowners participated in the private side replacement. To be effective, homeowners must spend up to $2,500 to replace their portion of the lines, but most are, for a variety of reasons, deciding not to do so. Many questions remain about the benefits of partial lead service line replacement. Research suggests that short-term spikes in lead levels occur immediately after partial replacement, and little long-term reduction in lead levels is achieved. This, coupled with the fact that for the past 3 years the drinking water has consistently tested below the Federal action level of 15 parts per billion for lead in drinking water, largely due to the introduction of orthophosphate into the water supply in 2004, make it understandable why WASA, after spending $105 million on this program, is re-evaluating the merits of spending an additional $300 million to replace the remaining 21,000 service lines. As important as the lead contamination problem has been to WASA and its customers, it is by no means the only issue with which the utility must grapple. WASA is responsible for operation and maintenance of not only the drinking water infrastructure, but also the wastewater treatment and sanitary sewer systems. Some of the components of these systems date back to the early 19th century, and the infrastructure replacement costs are staggering. Over 700 million over the next 10 years to maintain the drinking water system, another 2.2 million over the next two decades to meet the EPA's mandate to address combined sewer overflow problems, for example. WASA's difficulties in meeting its many fiscal demands are mirrored across the country by some 53,000 drinking water utilities, 17,000 municipal wastewater facilities, and 7,000 communities served with storm sewer collection system. Water infrastructure needs nationwide are estimated to range from $485 billion to nearly $1.2 trillion over the next 20 years. A few years ago we conducted a survey over several thousand drinking water and wastewater utilities and found that 29 percent of the drinking water utilities and 41 percent of the wastewater utilities were not generating enough revenue from user rates and other local sources to cover the full cost of service. We also found that about one-third of the utility's deferred maintenance because of insufficient funding had 20 percent or more of their pipelines nearing the end of their useful life and lacked basic plans for managing their capital assets. The Federal Government has a significant impact on the Nation's drinking water and wastewater infrastructure. EPA has promulgated regulations to implement the Safe Drinking Water Act and the Clean Water Act, and the cost of compliance with these regulations are high. Last year Congress appropriated about $1.5 billion that EPA grants to the States to capitalize the revolving loan funds. Utilities can use these funds to finance improvements to drinking water and wastewater treatment facilities; however, this is only a small portion of what is needed. Some argue that because of the high cost of compliance with requirements the Federal Government should do more. Others argue that it is the customer who enjoys the benefits of clean water that should assume a larger share of the infrastructure repair and replacement costs by paying higher rates. The truth is probably somewhere in between. One thing is clear: the fiscal challenges facing water utilities are not likely to be resolved any time soon. Mr. Chairman, that concludes the summary of my statement. I will be happy to answer questions from you or any members of the subcommittee. [The prepared statement of Mr. Stephenson follows:] [GRAPHIC] [TIFF OMITTED] T6013.050 [GRAPHIC] [TIFF OMITTED] T6013.051 [GRAPHIC] [TIFF OMITTED] T6013.052 [GRAPHIC] [TIFF OMITTED] T6013.053 [GRAPHIC] [TIFF OMITTED] T6013.054 [GRAPHIC] [TIFF OMITTED] T6013.055 [GRAPHIC] [TIFF OMITTED] T6013.056 [GRAPHIC] [TIFF OMITTED] T6013.057 [GRAPHIC] [TIFF OMITTED] T6013.058 [GRAPHIC] [TIFF OMITTED] T6013.059 [GRAPHIC] [TIFF OMITTED] T6013.060 [GRAPHIC] [TIFF OMITTED] T6013.061 [GRAPHIC] [TIFF OMITTED] T6013.062 [GRAPHIC] [TIFF OMITTED] T6013.063 [GRAPHIC] [TIFF OMITTED] T6013.064 [GRAPHIC] [TIFF OMITTED] T6013.065 [GRAPHIC] [TIFF OMITTED] T6013.066 [GRAPHIC] [TIFF OMITTED] T6013.067 Mr. Davis of Illinois. Thank you very much. I will go to Ms. Norton first. Ms. Norton. Thank you very much, Mr. Chairman. I found your report from GAO, Mr. Stephenson, very helpful. Mr. Stephenson. Thank you. Ms. Norton. It gives us some context. Above all, without saying so, you make clear we are dealing with a zero sum gain here, particularly in your discussion of new chemicals in the water versus WASA's present strategy. At the hearings we had, the question was already raised, and I could never get an answer to it, and that question was: if you can only replace the public portion of the lead pipe, is there substantial benefit? Mr. Stephenson, I am co-sponsor with the chairman of the full committee of a bill that would require the replacement of the public portion. A couple years ago I began to wonder whether that made any sense, in light of what I know as a member of the Water Resources Subcommittee about the needs that you just described. In your testimony you indicate that the water now tests, and you say because of orthophosphate which has been introduced, that for that reason that the water supply ``has enabled WASA to consistently test below the Federal action level.'' The question, it seems to me, in light of the competing water needs of this and other jurisdictions, the question for me is whether it makes financial or health sense for large sums of money to go to replacing only the public portion, without any assurance that the private portion would be replaced. Let me ask you whether it would make sense if the homeowner said, here's my money for the private portion, as well, I still would ask whether that is the best place to put the money--you know what the long-term problems of WASA and combined sewer overflow are--in light of the health effects or benefits of relying only on orthophosphate to do the job? Mr. Stephenson. It is a multi-part answer, I guess. The only thing that has changed really is the orthophosphate, and it takes several months to years for that to become effective, and so that is why I attribute the success in meeting lead level standards to that. Ms. Norton. Could I just pause and ask you: have the effects been shown? You are certainly not the first and certainly not the only to use this particular chemical. Have beneficial effects been shown more definitively in other water supplies? Mr. Stephenson. Yes. It has been shown definitively in many public water supplies around the country. By the same token, research suggests that partial lead line replacement offers very little benefit, if no benefit, to the objective of getting lead out of the drinking water. It is obviously the ultimate solution to---- Ms. Norton. And that is in part, is it not, Mr. Stephenson, because not only do you leave part of it with the lead still flowing into the household, but, in order to do the work of cutting the pipes, you disturb even more lead, which may stir up lead that might not have flowed from the public section in at all if you would just let it be and rely on the chemical? Mr. Stephenson. Right. There are generally spikes in the lead levels right after you perform the replacement. So I would suggest that it has to be carefully evaluated in light of all of the other fiscal needs that a big water company like WASA faces. They get precious little money from the revolving funds from either the Clean Water Act or the Safe Drinking Water Act. The needs are great and the Federal funding that follows that is not very great. Ms. Norton. Well, suppose the private homeowner said, I want mine replaced. Does that justify the public expense, in your judgment? Mr. Stephenson. We think that is still the best solution, and that does make sense. Ms. Norton. That is the best solution even if it stirs up lead to have the public and the private replacement? Mr. Stephenson. In the long run, yes, it is better to get rid of the lead service lines, but it is a very expensive undertaking, $300 million. Ms. Norton. So it may fail a cost/benefit test, but it may be that if you were doing the Cadillac approach that is what you would do? Mr. Stephenson. Exactly. Ms. Norton. You have looked at the needs of WASA. Pretty staggering. I have described my attempts to get money, and we get a little bit of money, but you see it is a little bit of money every year that we have gotten. We haven't gotten hundreds of millions of dollars at one traunch that other jurisdictions have, and I must tell you that while we are on pay-go I can't promise that we are going to do that, whatever the Federal involvement in this particular water system is. By the way, anyone that goes to the White House and into Federal buildings, I guess they are all drinking bottled water--watch out for those bottles--in order to assure their health, but, of course, there are many in the region who rely upon the water. I have news for Members of Congress and people who go to restaurants and the White House: some of that water gets into your food. They are not taking water out of the bottles and cooking with it. Of course, we know it has its greatest affect on children and babies and pregnant women. But let me ask you, having looked at the many needs, pretty Herculean needs of the supply here and WASA, how would you categorize, how would you prioritize if you were king for a day where you would start, since you have already testified you wouldn't start here, because you don't see the cost/benefit. Mr. Stephenson. We haven't done a detailed study of WASA, per se. My experience is more with facilities like WASA around the Nation. But you would have to weigh the merits of each and every expenditure. WASA, itself, is estimating $3.1 billion in capital improvement programs over the next 10 years, I believe. That is $310 million a year. So how do you allocate that? They have huge expenses associated with the Blue Plains facility to reduce nitrogen. They have the combined sewer overflow program, which is estimated at $2.2 billion over the next two decades, let alone just normal replacement of pipes. Ms. Norton. The reason I am indicating that there is no need here, I am doing what Congress does and saying, you know, either we are going to give you money for this or we are not. In light of what you just said, that those are the needs that you described, is there any other alternative for those needs? At least we have the chemical alternative here. For the needs you have just described, providing sewer overflow and the rest, is there a substitute that we could rely on for those needs, even as you have testified the chemical has been definitively shown to be effective in other jurisdictions, even as there may be a substitute for requiring change in the public portion of the lead pipe? Mr. Stephenson. Again, we haven't studied that specifically, but for the combined sewer overflow, for example, I mean, you need huge capital expenditures to be able to build the facilities that you would need to handle combined sewer overflow in a wet weather event. So the alternative is to pollute the Anacostia River, if you don't address that. Ms. Norton. So essentially you are testifying there really isn't any other way to deal with combined sewer overflow, for example, or with the long-term control plan other than to deal with it. There is no substitute here or anywhere else. We are just spending the money there where there may be, may be a substitute for spending the money on the lead pipe, particularly when the private portion is left intact. Mr. Stephenson. That is true. The only question is where the money will come from. Ms. Norton. Thank you very much, Mr. Chairman. Mr. Davis of Illinois. Thank you very much, Ms. Norton. Mr. Sarbanes, any questions? Mr. Sarbanes. Not at this time. Mr. Davis of Illinois. Mr. Van Hollen. Mr. Van Hollen. No, Mr. Chairman. Thank you for the report though. I think it raises some important questions. Mr. Davis of Illinois. Mr. Cummings. Mr. Cummings. I don't really have any questions, Mr. Chairman. Mr. Davis of Illinois. Let me just ask one. I was struck by the amount of money that you expressed a need for. How do you see this in relationship to the needs of water systems across the country? Mr. Stephenson. It is very similar. As I said, the total estimates that aren't GAO's but are prepared by the Environmental Protection Agency and many of the water industry associations who do this for a living, are in hundreds of billions to a trillion dollars over the next several years. Obviously, the Federal Government isn't going to pay for all of that. The ratepayer has to pay for some of that. But there needs to be a balance. WASA, itself, estimates that about 45 percent of their capital improvement is to respond to Federal requirements. Mr. Davis of Illinois. So any way you cut it, we are going to need a lot of money? Mr. Stephenson. Yes. Mr. Davis of Illinois. Well, thank you very much. We appreciate your being here. Mr. Stephenson. You are welcome. Mr. Davis of Illinois. We will proceed to panel two, our second panel. While they are being set up let me just introduce them. Robin Martin is the current Chair of the D.C. Water and Sewer Authority's Board of Directors representing the District of Columbia, and Mr. Martin has served in this capacity since May 2, 2007. Mr. Jerry Johnson is the general manager of the District of Columbia's Water and Sewer Authority. As the first general manager of WASA, Mr. Johnson has guided the unrated agency with a projected $8 million deficit to an organization with an A- plus credit rating and $170 million reserve, all within a 2- year period. Gentlemen, would you join us. While you are doing that, why don't I just go ahead and swear you in. [Witnesses sworn.] Mr. Davis of Illinois. The record will show that the witnesses answered in the affirmative. Gentlemen, we thank you very much for being here. Of course, we try to do this in 5-minute spurts. If you would summarize your statement in 5 minutes, the entire statement is in the record. We will begin with you, Mr. Martin. STATEMENTS OF ROBIN B. MARTIN, CHAIRMAN, BOARD OF DIRECTORS, D.C. WATER AND SEWER AUTHORITY; AND JERRY JOHNSON, GENERAL MANAGER, D.C. WATER AND SEWER AUTHORITY STATEMENT OF ROBIN B. MARTIN Mr. Martin. Thank you, Chairman Davis and members of the subcommittee, for this opportunity to testify. My name is Robin Martin. I am a private citizen, a resident of the District of Columbia, and I have honored to have been appointed by Mayor Adrian M. Fenty to be the chairman of the Board of Directors of the District of Columbia Water and Sewer Authority. D.C. WASA was created in a compromise requiring foresight and leadership. I will share briefly my views about our opportunities and challenges. The Board of Directors is working very hard with management to build on past successes. One key objective is to allow the average citizen to turn on the tap and drink the water with confidence. I am pleased to report to this subcommittee that our water is safe to drink. Distributing drinking water is a critically important mission, having been the subject of hearings before this subcommittee. To strengthen the oversight of this critical mission area, I recently appointed Dr. Joseph Cotruvo to Chair the ad hoc Committee on D.C. Drinking Water Quality. His experience will prove invaluable. We must continue to maintain our distribution system and to strengthen our relationship with the U.S. Army Corps of Engineers' Washington Aqueduct, which provides drinking water treatment services. Most of our consumers and many policymakers are unaware of the bifurcation in the District's drinking water treatment and delivery system. The most controversial problem in D.C. WASA's history was a drinking water quality issue, the exceedance of the Lead and Copper Rule lead action level. The Board's lead service replacement program grew out of these issues in 2004. These experiences provided lessons which the Board and management have taken very seriously. Among the most prominent is the importance of transparency. As the D.C. WASA Board began to explore publicly the merits of potentially modifying the ongoing lead service replacement program last year, we have once again been subjected to criticism from certain advocates and to some negative media coverage, as well. However, there is ongoing dialog with the public about a path forward, and for some stakeholders the issue remains D.C. WASA's credibility, but for most it is reaching an understanding of what constitutes safe water and ensuring its delivery. We have an obligation and an interest in protecting the environment, particularly the Anacostia and Potomac Rivers, Rock Creek, and the Chesapeake Bay. We are proud to be in the forefront of these efforts. D.C. WASA is investing enormous sums to restore and preserve waterways. While I have confidence in management, it is the Board's responsibility to ensure that these large projects--over $2 billion for the long-term control plan and nearly $1 billion for the Chesapeake Bay nitrogen removal program--are well-planned, executed, and financed. We must also provide strategic guidance to management in its negotiations with the Environmental Protection Agency to ensure that these programs are technically achievable and affordable for all our customers. Congress and the administration have been strong partners in these efforts, providing, for example, in excess of $100 million in funding for the long-term control plan. We want to continue this partnership, which is critical to our success. In 2007, the District Council charged D.C. WASA with engaging an independent consultant to review the budget to find ways to contain rising retail rates and to review capital improvement plan disbursements and the financial plan. The Board enthusiastically supported this review, and the report found that D.C. WASA compares favorably in a variety of categories when benchmarked against other utilities. The independent review of the budget is one step along a long path we are taking to try to ensure that our development, planning, and execution of operations and the capital program are as effective and efficient as possible. We recently learned that Standard & Poor's has awarded D.C. WASA an unsolicited bond rating upgrade. In this difficult financial environment, I regard the upgrade as an endorsement not only of D.C. WASA's performance, but of its governing board and management. Nevertheless, the Board has the responsibility to ensure the continuing financial health of D.C. WASA to enable it to maintain, rebuild, and upgrade the aging infrastructure so vital to the provision of our services. The Board is also committed to maintaining fairness and equity in our retail rate structure. For example, we are now developing an impervious surface area rate to allocate more equitably the cost of the long-term control plan to the users who actually produce the stormwater runoff that contributes to the combined sewage overflows. D.C. WASA has earned a positive reputation in the industry for its financial management, administrative prowess, research, capital program planning, development, and project management and execution. We still face major challenges, but we have a solid foundation on which to build. Thank you, Mr. Chairman and Members, for this opportunity to address the subcommittee. I would be happy to respond to any questions. [The prepared statement of Mr. Martin follows:] [GRAPHIC] [TIFF OMITTED] T6013.068 [GRAPHIC] [TIFF OMITTED] T6013.069 [GRAPHIC] [TIFF OMITTED] T6013.070 [GRAPHIC] [TIFF OMITTED] T6013.071 [GRAPHIC] [TIFF OMITTED] T6013.072 Mr. Davis of Illinois. Thank you very much, Mr. Martin. We will proceed to Mr. Johnson. STATEMENT OF JERRY JOHNSON Mr. Johnson. Thank you, and good afternoon, Chairman Davis and members of the committee. I am Jerry Johnson, general manager of the District of Columbia Water and Sewer Authority. I appreciate the committee's interest in receiving an overview and update on D.C. WASA. I would like to start by briefly noting a few recent positive developments. On March 13th I had the pleasure of submitting to the D.C. WASA Board of Directors the 11th consecutive unqualified audit opinion for the year ending September 30, 2007. A clean audit is nothing less than our stakeholders deserve, and we should be providing it as they expect it. With respect to the bottom line, fiscal year 2007 ended with revenues exceeding expenditures by approximately $23 million, and with cash reserves in excess of the board's required 180-day operating and maintenance cost of $111 million. Those excess funds were used for pay-go and for rate stabilization fund. Mr. Martin mentioned the unsolicited bond upgrade, but I would like to point out that a portion of our outstanding debt issuance has included bonds known as auction rate securities. As you may know, under the current credit market conditions, these securities have experienced volatile interest swings. We took actions to refund the outstanding auction fund debt, eliminating the risk of our overall operating costs. The largest portion of this refunding, $310 million, has been successfully offered in the marketplace and will close at the end of this month at a fixed rate of 4.89 percent, which is about outstanding, given the circumstance that many jurisdictions face in not being able to get rid of those types of securities. Mr. Chairman, in 2007 the District of Columbia Council budget legislation included a provision directing the Board of Directors to engage with an independent consultant to review the budget and certain aspects of the capital program. The Board commissioned the review even before the law was enacted. The report offered several recommendations, including, for example, continuing our effort to build internal staff capacity to manage and utilize costly commodities like electricity and chemicals. Overall, the consultant stated, ``D.C. WASA is a high- performing water and sewer utility with good management practices which are, in some cases, best in class, and one of the best-kept secrets on the east coast.'' By way of background, WASUA, D.C. WASA's predecessor agency, operated as an enterprise fund, and revenues from that were segregated from the local government's general fund. As you may recall, in the late 1980's and 1990's the District of Columbia experienced significant financial challenges, and the District made use of approximately $85 million of WASUA enterprise funds for pay-go government expenses. It is important to note that these funds have since been repaid, but at a time the District-wide hiring freeze, long deferred maintenance, capital improvements, the water distribution system and wastewater collection system, and treatment systems, and a 10-year hiatus in adjusting the rates to collect revenues needed to operate and upgrade the system alternative came together in a giant crash. The demand for prudent utility operations prompted in 1996 the District of Columbia, the participants in the Blue Plains service area, and the U.S. Congress to agree to create the District of Columbia Water and Sewer Authority, an independent agency of the District of Columbia. Many policymakers took part in the negotiations, but Congresswoman Eleanor Holmes Norton's leadership in that effort was critical in building the foundation for the organization's success that exists today. In celebrating our 10th anniversary, I noted that I believed that a model for regional cooperation was created, and it stands today for others to emulate. D.C. WASA's enabling legislation also provided that the agency would have procurement, personnel system that were separated from the District, along with independent authority to establish policy in those areas. The enabling statute also granted D.C. WASA's board the authority to issue debt. Since 1996, D.C. WASA's board of directors has been solely accountable for the hiring of financial management staffs, setting financial policies, developing and adopting the organization's financial plans and practices, setting fees and charges, adopting annual operating and capital budget, the 10- year capital and financial plan, as well as setting rates. As one of the larger utilities in the United States, D.C. WASA has two critical missions: those of purchasing drinking water from our partner agency, the U.S. Corps of Engineers, and distributing it to 130,000 or so customers in the District of Columbia; and also for collecting and treating sanitary flow that is discharged into the Potomac River, and for producing about 4,400 tons of bio-solids per month for the land applied in the Commonwealth of Virginia. D.C. WASA is one of the strongest environmental stewards in the region, investing hundreds of millions of dollars in improving water quality in the Anacostia, Potomac, and the Chesapeake Bay. We are in compliance with all MPDES permit requirements. We are also in compliance with the Safe Drinking Water Act and all standards pertaining thereto,. With respect to capital improvements, WASA is responsible for the operation of utility plant assets in excess of $2.2 billion. For example, the Blue Plains Wastewater Treatment Plant, perhaps the largest in the world, streaming capacity of 370 million gallons a day. We are very proud of the national reputation that we have achieved there. But we are also responsible for thousands of miles of underground infrastructure, as was mentioned by the representative from GAO, with a number of hydrants, valves, and other larger facilities. Since D.C. WASA was created in 1996, we have invested over $1 billion in capital improvements. Through 2016, D.C. WASA plans to spend an additional $3.1 billion in capital assets. This substantial increase as compared to last year's investment of $2.2 billion for the capital improvement program is mandated by the U.S. EPA as benefiting the Chesapeake Bay. Specifically, roughly $900 million of increase is almost driven entirely by the Blue Plains total nitrogen project. This investment is required to meet the new Federal nitrogen limits imposed for the discharge at the Blue Plains Wastewater Treatment Plant. We estimate that fully 45 percent of the CIP that is currently in place is required by regulatory mandates. There are a number of other projects that are listed in the testimony that you have received, so I will not go into all of those, but we have made a commitment of $636 million over the next 10 years to maintain and enhance the water quality throughout the capital and improve operations in our water distribution system, and another $150 million going to the Washington Aqueduct for projects that will be undertaken there. We have also undertaken a comprehensive sewer assessment program in the District that spanned about 5 years that will result in major capital projects that we will have to undertake. I would be remiss if I did not note and express our appreciation for the Federal funding support that we have received since 2003. We have received about $106 million in Federal support of the $2.2 billion long-term control program to reduce combined sewage overflows into the Anacostia, Potomac Rivers, and Rock Creek. We have matched this extraordinary level of funding with 100 percent of local funds, principally from District ratepayer. Ms. Norton, you have been a leader, and it is once again that you have provided that extraordinary leadership in helping to obtain these funds, and we are truly gratified that you and other Members of Congress from around the region, like Congressman Van Hollen, have joined in seeking additional support under WRDA and additional resources to support the massive capital programs. With congressional support, we have already eliminated 33 percent of CSOs. By the end of 2008 we will have reduced it by 40 percent. The continuing challenge is that it will require nearly a decade and a half and an additional $2 billion to complete the project, and continuing Federal commitment is critically important for the District of Columbia. Building on industry leading automated systems and technology, we have begun installing a high-tech system that allows us to notify our customers when there are problems with the water bills, and we are able to do that in advance. I would also like to salute the Board's leadership that has resulted in a focused and long-term commitment to improving operational efficiency, which is important to our customers as we continue to rebuild aging infrastructure. Mr. Chairman and Members, D.C. WASA has evolved from a troubled beginning to become a respected and responsible forward-looking utility poised to successfully meet the challenges of the future. We have moved from crisis to stabilization to stability. Thank you for giving me this opportunity to give the committee an overview of D.C. WASA and its operations. I will be happy to respond to any questions you or members of the committee may have. [The prepared statement of Mr. Johnson follows:] [GRAPHIC] [TIFF OMITTED] T6013.073 [GRAPHIC] [TIFF OMITTED] T6013.074 [GRAPHIC] [TIFF OMITTED] T6013.075 [GRAPHIC] [TIFF OMITTED] T6013.076 [GRAPHIC] [TIFF OMITTED] T6013.077 [GRAPHIC] [TIFF OMITTED] T6013.078 [GRAPHIC] [TIFF OMITTED] T6013.079 [GRAPHIC] [TIFF OMITTED] T6013.080 [GRAPHIC] [TIFF OMITTED] T6013.081 [GRAPHIC] [TIFF OMITTED] T6013.082 [GRAPHIC] [TIFF OMITTED] T6013.083 Ms. Norton [presiding]. I thank both of you, Mr. Johnson and Mr. Martin, for that important and indispensable testimony to this hearing. Now, if I may say so, count yourself lucky and the District unfortunate that this is not a vote in the committee, as a whole, the only House vote on which I can cast a vote for the District of Columbia, so my colleagues, including the Chair, had to go to vote, and your humble Member is left here, much to her regret, with all apologies to you that she cannot do the important work of casting a vote for the residents of the District of Columbia. We are only three votes short in the Senate. That is the place where you need 60 votes. That is how you get a majority there. It is the only place that a majority is defined by more than 51 votes. That said, the chairman, if he were here, would have asked a question that is prescient inasmuch as I would have asked it if he hadn't, and he asked how many District residents are waiting a full-pipe replacement. How many are awaiting that in the District of Columbia, full pipe? Full pipe--that must be you get some kind of guarantee that they are going to do the other or they pay you to do both at the same time? Is that how it works? Mr. Johnson. Before we begin in a neighborhood to do the lead service line replacements, Ms. Norton, we will notify the residents and provide them with at least a 45-day lead time and an opportunity to replace the private portion while we are replacing the public portion. Ms. Norton. Sir, I am just trying to find out how that works. Do they have to do that first? Mr. Johnson. No, ma'am. We will do all of the work first using our---- Ms. Norton. So how do you know they will do it? Do they then remit an amount to you to do it and then you decide to do the private and the public all at the same time? Mr. Johnson. We have several different options for approaching that. One, they can set themselves up on a payment plan with the water and sewer authority. We have also made arrangements through Wachovia Bank for a discounted rate loan that can be made to our customers, and we work with the D.C. housing---- Ms. Norton. Thank you. I didn't hear a payment plan here, but I appreciate that detail. What I really want to know is how many residents are awaiting full-pipe replacement and decided to invest in that measure, which you heard from the previous witnesses, is the best way to remove lead from the water? Mr. Johnson. Yes, ma'am. I cannot give you a going-forward number. The number to date has been somewhere around 23 percent of the total---- Ms. Norton. That is 23 percent of what, sir? Mr. Johnson. Of the total number that we have done public side replacements. It is a rolling number because we are constantly sending---- Ms. Norton. The number I am asking for wasn't rolling at all. I am just asking how many have contacted you to say they want to do full-pipe replacement. Do you have that figure? Mr. Johnson. To date it has been about 22 percent of the 14,200 and some that we have done. Ms. Norton. So of those that have already been done, 14 percent of the replacements, the others have been public-side replacement only? Mr. Johnson. Yes, ma'am. Ms. Norton. You heard my questions to the GAO, pretty definitive, that replacement on one side may do more harm than good, but that replacement of both is the top of the mark, the gold standard. Do you have consultants that indicate to you that partial replacement, in light of the alternative, is not the best option for WASA? Mr. Johnson. I believe, Ms. Norton, that any lead that is removed certainly has some benefit, but in a case where you only replace a part of the lead service line and you still have quite a bit remaining---- Ms. Norton. Have you a consultant that says if you do only--there will be others after you. Perhaps they can testify to this, too. You say any removal. Well, the testimony before you was that it was a no statistically significant effect. Mr. Johnson. That is correct. Ms. Norton. I hate to ask these questions in this way. Remember, I am the one who cosponsored a bill to say do the whole thing, and if you can't get the private sector to do it, go do it anyway, public sector. But I also am contending with your competing priorities, and I can tell you this without fear of being contradicted: every single bill that goes to the House of Representatives is a pay-go bill, and it is going to be that way for eternity because of the huge increase in the deficit that we have built up in the last 8 years with the war and with tax cuts for wealthy people, so we are left in this zero sum gain notion of what are the priorities. If you had to answer the same question that I gave to the GAO, ranking, what would be the most important place to put money to have the greatest health affect and the greatest effect on the region? What would be first for you or, for that matter, for the Board, Mr. Martin? Mr. Martin. Let me try to answer that question. I think one of the things that we are attempting to answer is the question of whether, if there are no replacements whatsoever, public side or private side, if orthophosphate is sufficient to provide clean drinking water, and the tests that we have so far show that we are below the lead action level. So that would seem to appear to us that, in fact, would be the case. Ms. Norton. Well, more important than that, the GAO said it has been definitively shown in other jurisdictions, which use orthophosphate for a far longer time than we have. Mr. Martin. Right. Ms. Norton. Again, you know, this is what is going to happen in the Congress. You can't get a bill through here for the gold standard, so the first thing one has to do--I have already spoken to the chairman about this, and he said he would get the Chair to look at it, because he has been the standard bearer of this, and I joined him enthusiastically, and have not been convinced yet that we should change the bill. But I must say that the more the evidence rolls in--I continue to be an academic, teach one course every year, as I did before I came to Congress, and it is very hard for me, in the face of evidence that there is a cheaper way to do it, to say keep replacing the public portion. I have a problem with that. This is a free society. You can't make somebody change the private portion. One could, of course, say you must change them when the other side, the private side, says, I want them changed. Of course, still the money is coming from the taxpayers, so it is still not a free lunch. If they wanted to say, OK, I will pay for changing the public and the private, that is another story. For myself, I want to say right here, you know, the pipes that most interest me are the pipes that we found during the controversy in D.C. public schools. Those are pipes I am interested in, and those are pipes which you go to the fountain and there was a concern about lead. We dealt with that in part through other means. Can you assure me that when you turn on the water fountain in every D.C. public school and every part of the region that may be served, that you will not get out of those pipes from that water fountain lead-contaminated water? Mr. Martin. Ms. Norton, I think one of the issues is that even if the public side and the private side of the lead service line are replaced, there are still fixtures within a home, within a building, within a school that may contain lead fixtures. So the issue that---- Ms. Norton. And you think that might be the case in public schools? Mr. Martin. It very well could. Yes. Ms. Norton. This is what Democrats got accused of, spending money no matter what the effect. We refute that more often than not, but I am looking here for the evidence, the facts. As they say, nothing but the facts. My major concern, when you get to be as old as most of the people in the room, the fact is the evidence is that lead has less and less affect, and the great and horrific concern in the District was with pregnant women and with children of school age, and most particularly elementary school age, but yes, all children who are still in formation of their brains and other body structures. In 2008 there was tap water that appeared to implicate as the source of lead as a problem for 15 percent of children in the District of Columbia who had elevated lead, blood lead levels, whose water was actually tested for lead. Yet, you both have claimed that the District's water is safe to drink. How can we accept that testimony in light of these tests that were dong? Mr. Johnson. I can't say that I am familiar with those tests and how they were conducted. Ms. Norton. It was from the D.C. Department of Environment reports. It is a report from the District of Columbia Department of Environment, 2007-2008, which reported that tap water was, indeed, implicated as a source, apparently not the only source, as a source of lead for 15 percent of D.C. children. I will have to ask them the extent to which the report showed that lead in the water, but apparently it did show that lead in the water was a source for these children, for 15 percent of these children whose drinking water had actually been tested for lead. Mr. Johnson. Ms. Norton, I am not a health expert and I don't think that I would---- Ms. Norton. But you did tell me that the District's public water was safe to drink. Mr. Johnson. And I will stand behind that statement and will certainly---- Ms. Norton. I am going to make available to you this report. Mr. Johnson. OK. Ms. Norton. I can't believe that somebody in WASA hasn't seen it or at the Aqueduct, and I am going to ask you in 30 days to comment on the question I just asked about this 15 percent of the children who were actually tested. And I am the first to understand the lead may have come from multiple sources. I had a discussion with someone recently who told me that they were winning lead cases in court. I said, how can you be winning lead cases brought by children? This young man was one of my students when I was a full-time professor of law at Georgetown and he's very much about my politics. He works for a big law firm now. He said, because of cause and effect, the source problem becomes a very big problem, given the children who have lead and the varied sources of contamination. I am very evidence-oriented. I questioned him, I cross- examined him. He said they were winning cases in Mississippi. I don't know if you know the storied Mississippi juries which sit in order to award money to deep pockets. Anyway, I asked this question not because I preclude an answer one way or the other, but because this report was done, and we will make available to you the report. Many of us saw the outcry about the lead in the water, Lead and Copper Rule compliance, but because they did not include measurements that were taken in between late May and early July in 2006 and 2007. Because you are trying to regain the public trust, I wonder why those months would have been excluded rather than simply explained perhaps? Mr. Johnson. That is simply not the case, Ms. Norton. I think that we have documentation of the time of year---- Ms. Norton. You took measurements between late May and early July? Did you make them public? Mr. Johnson. Yes, ma'am. Ms. Norton. This is a period when lead in the drinking water has been documented to reach its peak. That is why I am asking the question. Mr. Johnson. Yes. We have the documentation of the times and dates that we did all of the sampling. It was done in strict compliance with the EPA requirements for sampling and identifying the evidence. Ms. Norton. Did you make those public right away, the rate? Mr. Johnson. Sure. They have been made public. Ms. Norton. No, right away. Mr. Johnson. Yes, ma'am. Ms. Norton. Mr. Johnson, within 30 days would you get your compliance with the Lead and Copper Rule during the months I have just described in 2006 and 2007, that is between May and early July, and offer evidence that you informed the public? Mr. Johnson. I am told that we do the testing in January through May. June is the reporting month, and we begin to start again in July. Ms. Norton. I am talking about 2006 and 2007. I don't want to quibble here. Just get it to me. Mr. Johnson. Sure. Ms. Norton. And then get me how you informed the public. Apparently there were errors made in your--I recall this very distinctly--your 2006 post partial pipe replacement data. Which lab made those errors? Mr. Johnson. As I recall, I don't believe that there was a laboratory error; I believe that there was a dating error that confused the date that the sample was actually taken, versus the date that the sample was analyzed. That information, the way it was represented came out as an error. And we used two laboratories, and we are determining now which one of them made the error. Ms. Norton. I ask this question because when it was known that I would have this hearing residents of the District of Columbia asked me, because they say they have been unable to get this information from you about the lab, and if it wasn't the lab error and it was the date, apparently this matter was raised in a meeting with Council Member Jim Graham on February 24, 2008, and then a written inquiry was sent. These people watch you all after lead in the water. Mr. Johnson. We are putting that data together now, and in terms of---- Ms. Norton. Would you make it available to Council Member Graham and would you make it available to me within 30 days? Mr. Johnson. Absolutely. But it simply was not available, so we couldn't actually give it to the---- Ms. Norton. Why wasn't it available? Mr. Johnson. Because we have to go back and determine where the error was made. Ms. Norton. You are talking about 2006, and people are still giving me that question here in April 2008. A written inquiry was sent to D.C. WASA on April 6, 2008. I raise this question because it is not a quibble because you have to respond to members of the public like a first priority, again because the public lost confidence. You have done a great deal to try to regain that confidence. Nothing can do it better than saying, look, here is what the real deal is, or, it will take us time to gather that information. Here is a date when it is going to be there. Mr. Johnson. I think that we have advised them that it was going to take some time to pull the data together. We have two sets of data, one set of data that is compliance data that we provide to the EPA and is posted on the Web site and is out there, and then we have some other data that we are just collecting in order to satisfy ourselves that we are doing the appropriate thing. Ms. Norton. Or to satisfy the residents that you are doing the appropriate thing, and that is what they wanted to know. This is a date, for goodness sake. How long does it take to find out? Mr. Johnson. We are researching it. It is a very recent issue. Ms. Norton. Two years of research? You can't afford that, Mr. Johnson and Mr. Martin. That is your job. Remember, I sat here and said, yes, it is not Congress' job, it is your job. I am going to hold you accountable too, sir. Mr. Martin. Right. I agree. Ms. Norton. I have a problem that I remember raising in the first hearings that lead and copper pipes join together. Here is where science and follow-through and being willing to change or not change based on the science is so important. You put the lead and the copper together and you accelerate the lead erosion. There is a device which we understand is inexpensive called a dielectric. Apparently, you do not use dielectrics. Mr. Johnson. That is correct. Ms. Norton. If you do use dielectric in order to keep from extending and accelerating lead pipe erosion, this is your time to inform the public. Mr. Johnson. Ms. Norton, the acceleration of corrosion depends on a number of factors, and it is not just whether you connect a lead and copper pipe together. It depends on soil conditions and a number of other factors, and---- Ms. Norton. Mr. Johnson, that---- Mr. Johnson. That is simply not correct, the information that you have. Ms. Norton. Let me just stop you here with respect to answers to our questions. Mr. Johnson. OK. Ms. Norton. You notice that I am not looking for zero in terms of what science can provide. I have talked about the gold standard, and I have been real clear I know nobody is going to get the gold standard. Now you are trying to tell me other sources. I am asking a direct question about mitigation here through the use of dielectric, inexpensive device. Do you or do you not use it, yes or no? Mr. Johnson. We do not. Ms. Norton. Why do you not use it? Mr. Johnson. Because we don't believe, in these soil conditions and with the pipe that we are putting together, that it is necessary. Ms. Norton. So you think that there is no acceleration and extension of lead corrosion, and you have evidence to prove that? Mr. Johnson. Yes, we do. We have an EPA report and study that was done that looked very specifically at this issue, and it indicated that there was a minuscule---- Ms. Norton. So putting lead in cooper is OK? Mr. Johnson. Yes, ma'am. Ms. Norton. All right. Submit that report within 30 days. You are under oath. Mr. Johnson. We will do that. Ms. Norton. You are under oath. Both of you are. So if there is a mistake, admit it, but don't tell me unless you can, in fact, back up what you say. I ask some of these questions because the public has not been able to get answers to them. Mr. Johnson. I am very mindful of that. Ms. Norton. Apparently this was a question that was submitted long ago, and according to the information my staff has gathered was a very exact date on February 21st. Again, at Council Member Graham's meeting an engineer did finally admit that WASA had never used dielectrics. You say it was because they were unnecessary. Last thing I am going to do is say spend money on something that you don't have to spend money on. I do note that this is inexpensive, and since it is inexpensive and most of what you have to do is not, would you also submit the cost of it? Mr. Johnson. Sure. Ms. Norton. I am told it is inexpensive. I don't want to hold anyone to that. Mr. Johnson. Along with other information related to other problems that it can cause by using that particular device. Ms. Norton. Will you say that again? I am sorry. Mr. Johnson. There are other associated problems with grounding of electricity within a residence that are caused by the use of that device, as well. Ms. Norton. Would you explain that, please? In other words, there is a harmful effect, you are testifying? Mr. Johnson. Yes. Ms. Norton. And that would be? Mr. Johnson. Well, because houses are typically grounded using the water pipe, and when you do this disconnect with the dielectric and the copper and lead fitting, it could very well break that ground and create electrical problems within the home. I will be glad to provide you with the research data associated with that, as well. Ms. Norton. I would appreciate that within 30 days, as well. Mr. Johnson. Yes, ma'am. Ms. Norton. Here is an opportunity for you to explain something that I think is important for the public to know, and that is, when you increase the rate structure, a lot of it has to do with the surface, impervious surface rate structure, and, just to be as clear as I can without getting into technical matters, those large buildings are often the source of these impervious land structures, and so the water flows into the Anacostia and they cost and they increase pollution. Let me see if I can find a neutral way to say this. Who in this region would be the No. 1--don't use the word villain, Eleanor--who would be the No. 1 land owner who is the source of the problem or problems from impervious surface runoff? Mr. Johnson. Our initial look, it appears that the Federal Government probably owns the largest number of square feet of impervious cover. Ms. Norton. And I think you are certainly right. You heard me indicate I am having a hearing even tomorrow. We were going to call you to that hearing, but it seems unnecessary to do that, especially with your coming today. I know that the rate structure is being increased. Are you saying that the largest increase will come, because the Federal Government is a ratepayer, to the Federal Government? Mr. Johnson. I think the largest shifting of cost will occur in the Federal customer category. Ms. Norton. What does that mean? Mr. Johnson. We are not adding additional cost; what we are doing is unbundling the basic sewer charge as it currently exists, because it is all based on a volumetric charge now, so you will---- Ms. Norton. But I thought there were going to be rate increases. Mr. Johnson. Well, the rate increase, which is projected at 8.5 percent, and a portion of that---- Ms. Norton. That was 8.5 percent? Mr. Johnson. Yes, ma'am. A portion of that is water and a portion of that is sewer. On the sewer charge what we are attempting to do is take out the cost that is associated with the long-term control plan and segregate that, so instead of there being an 8 percent rate increase, it would probably be something on the order of a 3 to 4 percent rate increase on the sewer side, and we would collect the balance of that in this impervious area surface charge. Ms. Norton. And that will be charged to he or she who is responsible for it? Mr. Johnson. That is what we are moving toward. Yes, ma'am. If you looked at a family of four in a house where they are washing and cooking and bathing and doing all the things that a family normally does, and they are paying their water and sewer charged based on the volume of water that they use, so we base how much you are going to pay for your sewer cost on the number of gallons of water you use. And you look across the street and let's say that there is a large big box store and that big box store has 300,000 square feet under roof and two or three acres of parking, and maybe only one or two toilets inside, then their volumetric charge is going to be disproportionate to that of the family of four. So what we are trying to do is equalize this so that the cost causers are the ones that are paying for the actual cost of this particular program, so that the single family---- Ms. Norton. Then I don't understand why this has been controversial. Do people understand? Will the average homeowner get a rate increase? Perhaps a rate reduction? Mr. Martin. Ms. Norton, I think the issue is that this is a new rate. It is a change in every customer's bill. Part of our program from the Board's perspective is to make sure that we explain this in a very transparent way so that people understand exactly---- Ms. Norton. Well, Mr. Martin, will there be an increase to the average homeowner? Mr. Martin. We don't have the impervious surface rate actually defined at this point because we are still working on it, but the preliminary numbers say no, probably not. When you add up the water rate by volume, the sewer rate by volume, and the rate for impervious surface, it is probably about the same, a few pennies one way or the other. That is the preliminary data. Let me not say that is---- Ms. Norton. I know this is hard to explain, because when you get into what most of us--certainly I didn't know anything about this division of cost or that it was all bundled. I am sure this is going to be hard to explain. When will you know for sure? Mr. Johnson. There are some new customers, too. There are people who have typically not been a customer, people who own-- -- Ms. Norton. Like who? Mr. Johnson [continuing]. Parking lots and parking decks who don't get a water bill. Ms. Norton. How in the world could they not have been customers? Mr. Martin. They don't have water service. Mr. Johnson. They don't have water service, so they are not getting---- Ms. Norton. They don't have any water service in a parking lot of any kind? Mr. Johnson. In a flat surface parking lot, typically no. Ms. Norton. Unless they are part of a building. Mr. Johnson. Right. And so those are customers that will be added. I can't say that they will be coming on willingly. Ms. Norton. When will you be able to definitively--you did the right thing to get out here early and alert people, but, of course, in the 15-second ad atmosphere and all of us are too busy, this is seen by some, I think, as a rate increase. Mr. Martin has offered very helpful and important testimony that it probably isn't, given who the source of the problem is. When, Mr. Martin or Mr. Johnson, will you have a definitive answer? Mr. Martin. We have proposed rates as of earlier this year that are---- Ms. Norton. Well, they were a rate increase. Mr. Martin [continuing]. Combined rates. They were combined rates that are not unbundled. Ms. Norton. Why would you do that? If you are trying to unbundle, why would you alarm people by giving them all a rate increase? Mr. Martin. Because that rate increase is probably going to reflect in their total bill, that same rate increase. In other words, we have a 10-year plan that---- Ms. Norton. You just said that there would not be a rate increase for the average homeowner. I asked you that. Mr. Martin. That is the total average bill for a homeowner. What we proposed back in February would reflect an 8.5 increase. When we unbundle it and then add up what the average homeowner would get, it will be about 8.5 percent with everything added up together. Ms. Norton. All right. For the record, there will be an increase to everybody? Mr. Martin. Yes. Ms. Norton. Unbundling only lets you know how much of it comes from your impervious land, and there will be an increase because of the CSO, isn't it, because of combined sewer overflow? Mr. Martin. In part, correct. Ms. Norton. I just think you have to be candid with people. There is no free lunch. And if you are trying to make the increase fall more on those who are most responsible, say that, but if you have to increase everybody's water rate tell them why. There is concern about water purity here. If you tell them why, I think people really are willing to pay. This is hard to explain, but remember it was the explanation of lead in the water that led to issues for WASA before. Now, these water rates apparently are not progressive. You may have read in the Post, I guess it was, in recent days that one-third of families in the District of Columbia are poor. Why should a poor family pay the same water rate that Eleanor Holmes Norton and Jerry Johnson and Robin Martin pay? Mr. Martin. Ms. Norton, I think that is a very good question, and that is something that, since I have been on the Board, has been on the top of mind of every District member whose responsibility is to make sure that not only do we have as reasonable rates as possible, but that they are affordable. My feeling as Chair in navigating through the rate structure is that we need to get the impervious surface rate introduced, and that the next project after that is to, in fact, look at our rate---- Ms. Norton. After the poor people have already paid, then look to see whether or not. Then, of course, you don't give them back any money. Mr. Martin. We have to understand the issues that are involved in terms of making sure the public is aware of the issue---- Ms. Norton. Mr. Martin, look, let me suggest something. Part of the problem for poor people is they often don't own the property. Calculating in some fashion--this is not rocket science--how much of what you pay comes from the price of water, as it were, is kind of elementary math. I am trying to keep these people from being socked in the middle of one of the worse recessions anyone can remember, and I don't think, given the fact that you have a pretty hefty raise, and you say everybody is going to have it, 8.5, I am going to have it and the poor lady down the street is going to have it, I must ask you if you are, in fact, going to put this rate on people, why you can't do the climate changes or a rebate? I don't even want to suggest. There are a thousand ways to say to a poor person you don't have to pay the same amount as Robin Martin does. In the District of Columbia we are famous for rebates of various kinds to poor people. We have done it with taxes here. There are multiple ways to go about this, but if you lost your job and that is what we have now, if you have no sub-prime mortgage but you are feeling all of the reverberations of the present recession, all you need is an 8.5 increase, which landlord, assuming you do not own the property, will be happy to pass along to poor tenants. So I am asking a very serious question here. I am not questioning the need for an increase. I don't think you are trying to throw rates at people. I am such a big proponent of doing something about combined sewer overflow. I think you are trying to hold the Federal Government and other big landowners in the way they should, but I don't see that you--in fact, you have testified that you will get to the poor people after they have already been socked with 8.5, because first you have to do the rate increase. You have already announced that. Then you have to do the unbundling, then you will get to them. Of course by then nobody is saying, here's your money back. Last time I saw an agency do that I cannot remember. So I have to ask you why you cannot do it, or, put another way, why you cannot walk and chew gum at the same time. Mr. Martin. Ms. Chairman, I think we are. And let me correct my statement before. I think I was responding to a question about the rate structure. There are two programs that WASA has had for a number of years that, in fact, address that exact question. One is called the splash program, in which we solicit from ratepayer and billpayers voluntary contributions which we then distribute to people who are in need. We have a customer assistance program which is tied in through the other utilities where---- Ms. Norton. Well, the one-third of families who will be hit with an 8.5 increase in their water bill have access or get a rebate through--is it a rebate they get? Is it a lower rate? Mr. Martin. Go ahead, Jerry. Mr. Johnson. In the case of the cap program, the first four CCFs, or about 3,000 gallons of water---- Mr. Martin. What's a CCF? Mr. Johnson. A CCF is 748 gallons of water, so about 3,000 gallons of water is provided at no cost to low-income customers in the District of Columbia. Ms. Norton. How do you know if a low-income customer is getting that? Mr. Johnson. We do it the same way that the power company and the LIHEAP program. If you qualify for LIHEAP---- Ms. Norton. Oh, so you could do this easily? You already do it? Mr. Johnson. Yes. Mr. Martin. We do it. Ms. Norton. OK. So the answer to my question that is are you willing to do this--I will call it a rebate. You can call it what you like--with one-third of working families who are poor in the District of Columbia with respect to this 8.5 percent increase in the water rate? Can they be included? You are telling me that some of them are already included. Are you not, or are you? Are they already included? Mr. Johnson. Yes. Mr. Martin. Some of them are, certainly. Mr. Johnson. Yes. Mr. Martin. Absolutely. Mr. Johnson. Those same people who would quality for the LIHEAP program would qualify for this same discount, and it is run by the same people who run the program for---- Ms. Norton. All right. Unfortunately we have a terrible period here. There are all kinds of people not in the LIHEAP program. My question to you is: will families who can demonstrate that they are poor--and you know what that standard is--be eligible--this would be on an annual basis. This is not forever--be eligible for this reduction, not just a LIHEAP family, the family who worked yesterday and is not working today. Will that family, if that family submits evidence that they don't have a job, have no means to pay for an increase, will that family be eligible for what you are telling me you already do for poor people? Mr. Martin. That is not something that is in the policy at this point. We have been reviewing both the CAP program and the splash program because one of the things that we are finding is a lower participation rate than we think is appropriate, or reflects what the needs are of the community. Ms. Norton. So you prove my point. You have plenty of room left in that program. Mr. Martin. But we are attempting to figure out why people aren't participating. We think more people ought to be participating and qualified to participate. Ms. Norton. I am scratching my head. OK. Given the fact that you already have some people who are not participating, how about those who would like to participate as soon as the 8.5 increase goes into affect? Is there any reason why that would be inappropriate, Mr. Martin? Mr. Martin. Ms. Norton, we would have to define what the qualifications are to be---- Ms. Norton. You already know what they are. You just testified. Mr. Martin. Well, if they qualify---- Ms. Norton. You just testified that LIHEAP---- Mr. Martin. Yes. Ms. Norton. The qualifications are defined as poor under the Federal Government's standards. I mean, we really shouldn't answer me that way. If you don't know or you are unwilling, you are not going to get away with that kind of answer to me, Mr. Martin. I am asking you a straight-out question. In the middle of what some people are defining as a recession--I certainly would not like to use that word--added on to the problems people are already having with bills for necessities such as water and heat, if there are such families and a third of them in the District of Columbia are poor, I am sure I speak for my colleagues when I speak of those who are poor in their jurisdictions, will you take an already existing program and make it available to families who, when this program goes into affect, cannot pay 8.5 using the same evidence and proof that you use on LIHEAP program? Mr. Martin. Absolutely. If they qualify under LIHEAP, they will qualify here. Ms. Norton. So I don't know what took us so long to get to that answer. I tell you what, you said if they qualified for LIHEAP but are not in LIHEAP---- Mr. Martin. No, no. I misunderstood your question. The answer is, of course. Ms. Norton. OK. They are not in LIHEAP, but they would qualify under LIHEAP or the appropriate standard, then they could, in fact, get this reduction? Mr. Martin. Yes. Absolutely. Ms. Norton. I don't know why you didn't say that in the first place. Mr. Martin. I misunderstood the question. It is my error. Ms. Norton. My fault then. Sorry, I will try to be clearer. Mr. Johnson. Ms. Norton, I think that one thing we keep in mind as we go about doing these programs is that the only source for payment are the other customers, so we are, in essence---- Ms. Norton. Have you ever heard of progressive taxation? Mr. Johnson. Yes, ma'am. Ms. Norton. Have you ever heard of the earned income tax credit? At the big dollars we are paying you, Mr. Johnson, shouldn't you be paying more than people who are now on the earned income tax credit? Mr. Johnson. I fully understand what you are saying. I just want to make sure---- Ms. Norton. There have been people who tried to repeal progressive taxation here. They haven't quite succeeded, notwithstanding tax cuts for the richest Americans. So yes, there is a shift of cost. That is why you pay more Federal income taxes than the poor people I am talking about. Mr. Johnson. I know. I had the experience yesterday. Ms. Norton. And why you should. You make a handsome living compared to people who are going from hand to mouth. I am almost through. Huge controversy about nitrogen and how you are handling nitrogen. You and I have worked together on trying to get the nitrogen out of the water. I go every year to try to get more and more money. Then I find you working at cross purposes with me. Scientists now say we won't reach our goal in reducing nitrogen by the date we had set, 2010. Do you agree? Mr. Johnson. That is correct. Ms. Norton. Why would you pursue in court or other legal strategies in the face of evidence about WASA's practices, for example, EPA regulators just this last month--and EPA will tell you they are not my favorite people--rejected, that is to say its Environmental Appeals Board, your arguments regarding nitrogen were rejected, and I understand they have been rejected twice. I understand you have yet another appeal going forward. Why are you resisting what the EPA says are your obligations to pursue efforts to reduce nitrogen, one of the most lethal and dangerous pollutants? Why are you going to court against the regulators or otherwise pursuing legal remedies through the administrative process when the regulators keep giving you the same answer and you tell me yourself that by 2010 you are not going to meet the goal that has been set for you to meet? Mr. Johnson. Well, let me start. I think that is a multi- part question, Ms. Norton. Let me start with the 2010 piece of it first. Simply because of the time that it takes to design, construct, and build these facilities, it is literally not physically possible to get it done by 2010. I mean, we have to---- Ms. Norton. Is that the argument that you are making, that it is just a time factor? Mr. Johnson. I am trying to answer the question in segments, if I may. That is the question with respect to timing. We have worked with the Environmental Protection Agency and worked with them on the technical and engineering side to understand that there is a timeframe in which we can complete this, and we have agreed tentatively that we can accomplish the construction of some $950 million worth of facilities between now---- Ms. Norton. Say that again, please. Mr. Johnson. $950 million worth of facilities that have to be constructed at the Blue Plains Wastewater Treatment Plant. Ms. Norton. Why did you file another protest on April 1st? Mr. Johnson. I am going to come to that part. So we have agreed on a date that we can get everything constructed. Assuming EPA approval of the plan, we could get it constructed by 2014, and that by 2015, January 2015, we would be in compliance. So that is getting everything in the ground. Ms. Norton. Did you say EPA has agreed to that? Mr. Johnson. Yes. Ms. Norton. Why are you filing an appeal then? Mr. Johnson. The appeal has to do with some of the technical aspects of the plan. One has to do with a Federal consent decree and the method by which they wanted to include the dates and timeframes for getting it done. Ms. Norton. Well, shame on you. You have a Federal consent decree, so you would think that you would know you had to do that anyway. Mr. Johnson. Well, if we---- Ms. Norton. If you signed it, that is what a consent decree is. Mr. Johnson. The consent decree has to do with the combined sewer overflow project, not the total nitrogen project. We---- Ms. Norton. And you don't see the two as related, intimately related? Mr. Johnson. They are related, but that, too, took a considerable amount of time working with EPA to convince them that we ought to look at the two projects together, as opposed to having a stovepipe over here for CSO and another one over here for total nitrogen, and it took some time to convince them that, from an engineering and environmental---- Ms. Norton. All right. If you convinced them, why are you appealing? Mr. Johnson. OK. I am coming to that. Ms. Norton. April 1st you filed another appeal. Mr. Johnson. So we joined. We were on the same side as the Chesapeake Bay Foundation in saying, put it in the permit, because that is the simplest, easiest, quickest way to get it done, and that is where the EAB ruled. They said yes, it should be included in the permit, so we were right on that point. The other point that we appealed had to do with the allocation of nitrogen for the wastewater treatment plant, and the allocation we believe was not done on a scientific basis, and as a result we have had certain portions of our allocation for the Blue Plains plant that has been allocated to both Virginia and to Maryland. We are simply trying to recover that so that we get the full benefit of all the allocation that we should get at the plant. Ms. Norton. Are you telling me that EPA would object to your recovering that from Maryland and Virginia? Mr. Johnson. Well, I mean, that is what the allocation appeal is all about. That is what the basis of it is. It is a very---- Ms. Norton. Why did EPA object to where you get the recovery from? Mr. Johnson. I think you would have to ask. There are some representatives here. Ms. Norton. You know why. They would not tell you by fiat without telling you why, Mr. Johnson. You can't come here and testify to something like that and say, oh, I don't know. You have to ask them. Mr. Johnson. Ms. Norton, I---- Ms. Norton. You know. They told you why. Mr. Johnson. I do not know. We firmly believe that---- Ms. Norton. Did you ask them? Mr. Johnson. They said they have a right to do it. Ms. Norton. Right to do what? Mr. Johnson. To move the allocation from Blue Plains to Maryland for the plants in Maryland. We think that allocation is rightfully ours. Ms. Norton. I want to thank both of you for your testimony. Mr. Johnson. It is a very complex issue. It also has to do with reordering the way that we operate the wastewater treatment plant, and in reordering the way that we operate the wastewater treatment plant there are a couple of outfalls there that are designated for different purposes. And if a certain loading requirement is placed on one versus the other, then it creates a whole different scenario in the way that we operate both the CSO control program and the nitrogen program. And let me say that, in working with EPA and getting them to agree on this change in technology and the way that we are operating the plant, we were able to save our ratepayer, both in the District of Columbia and the surrounding jurisdictions, over $500 million. Ms. Norton. You know, Mr. Johnson, I commend you on that. One of the things I most admire is negotiating out matters. A lawyer though I be, I hate litigation as a way, a most expensive way, to settle matters. Your testimony seems to be, see, we were able to set without, and yet you have a string of protests and other challenges to EPA where they and you end up coming to some resolution. I particularly applaud you when you come to resolutions that save money. On the other hand, do not expect me to be a continuing partner working my you know what off over here for more funds for WASA if WASA is working at cross purposes with me by opposing a regulator who I do not regard as very strict. Mr. Johnson. I assure you---- Ms. Norton. I mean, we took them to task on lead in the water more than we did you. Mr. Johnson. I assure you, Ms. Norton, that we are not working at cross purposes and that we are working diligently with EPA in order to try to resolve the outstanding issues. We have met with them as recently as last week, last Wednesday, and I believe that substantial progress was made at that meeting. We have already moved forward to--I don't want to admit this in front of Mr. Capacasa, but we have already prepared the documents to go out to bid for the project management and designer on the project. So we are moving the process forward, even though we have not gotten final approval from EPA on the design plan. And we will continue. We are very diligent and serious about the project. Ms. Norton. Mr. Martin and Mr. Johnson, because we try to have these on an annual basis, we are going to ask you difficult questions. We don't have endless hearings. I think that the region has indicated some confidence in your work with some real caveats. We understand the huge cost and cost/benefit problems you face in trying to decide what to do. We have straightened out some of your business very recently. And I do want you both to know that, speaking from the perspective of someone who saw the decline, fall, if not the collapse of WASA, at the time we essentially built a new basis for the WASA you, yourself, Mr. Johnson were chiefly responsible for improving, speaking from the perspective of knowing from whence you started at ground truly zero or below to where we have come today, you deserve some credit. Do expect that this committee will and intends to do annual oversight, and I do ask you this: when people do not get responses quickly to WASA, they call their Congresswoman. And particularly when they can't get responses through their Council member, like Jim Graham, they have to go to somebody else. I have enough work. So, just as I said that you should get responses to me within 30 days, I ask you--and I don't want to set the time period--to remember that, as part of restoring trust in WASA, a WASA that you had no part in collapsing, part of restoring trust in it, may be the most important thing you could do would be responses very quickly to questions that are asked, particularly since you seem to believe you have the answer. If you do not have the answer, Members of Congress find, because people often come to us with things--it is not our jurisdiction, we can't do anything about it. You know, the very fact that we responded promptly, heard them out, told them what our problem is gives people lots of confidence in their Member, which is how they get elected. I suggest that imitating that would erase some of the controversy that continues to swirl among some with respect to some of your work. Congratulations on the work you have done. You will find us standing behind you with the job that lies before you. Thank you very much. Mr. Martin. Thank you very much. Mr. Johnson. Thank you, Ms. Norton. Ms. Norton. Panel three, Joe Capacasa, I think, Director of Water Protection Division for the Environmental Protection Agency in Region III, responsible for the Clean Water Act, safe drinking water programs here and in the mid-Atlantic States. Thomas Jacobus, general manager of Washington Aqueduct. Doug Siglin, director of Federal Affairs, Chesapeake Bay Foundation. Robert Boon, co-founder, Anacostia Watershed Society. Would you all stand, because it is the committee's policy that all witnesses are sworn in. [Witnesses sworn.] Ms. Norton. The record will show that each witness answered in the affirmative. Your entire statement will be recorded in the record. The green light is there to indicate that your 5 minutes have passed. The yellow light, of course, is a warning light, and the red light tells you the time has expired. We don't gavel down witnesses, but you see the hour and how we certainly had to question the last witnesses, so that we ask you to stay to the greatest extent possible within the timeframes allowed. Mr. Capacasa. STATEMENTS OF JON M. CAPACASA, DIRECTOR OF WATER PROTECTION DIVISION FOR WATER, ENVIRONMENTAL PROTECTION AGENCY; THOMAS JACOBUS, GENERAL MANAGER, WASHINGTON AQUEDUCT; DOUG SIGLIN, FEDERAL AFFAIRS DIRECTOR, CHESAPEAKE BAY FOUNDATION; AND ROBERT BOONE, PRESIDENT, ANACOSTIA WATERSHED SOCIETY STATEMENT OF JON M. CAPACASA Mr. Capacasa. Thank you, Madam Chair and members of the committee, for the opportunity to update you on our activities at EPA with regard to WASA. I am Jon Capacasa. I work in the Region III office of EPA in Philadelphia. I am the Director of the Water Protection Division there and am pleased to be here today. EPA's Region III's role in relation to WASA is to serve as the Clean Water Act permitting and enforcing agency in D.C. and as the primary enforcement agent for the Federal Drinking Water Act. In addition to our regulatory role, we administer the clean water and safe drinking water State revolving fund funding programs in D.C., manage special appropriation projects for capital improvements, and work in partnership with local utilities to protect regional water quality. We are in frequent contact with D.C. WASA, and also in close cooperation with the D.C. Department of Environment, as well as D.C. government and other regional water utilities. Regarding the quality of drinking water services in District, D.C. WASA and the Washington Aqueduct report directly to EPA Region III on the results of the sampling analysis they do, and these results are audited periodically. Based on this information, EPA can report that the drinking water serving the District of Columbia meets all Federal health-based standards and the system is in compliance with all national primary drinking water regulations. A requirement of EPA regulations is that utilities notify their customers annually through something called a consumer confidence report about the quality of water served and its compliance status for regulated parameters. The latest consumer confidence report was submitted to EPA and the public by WASA in June 2007 and has been provided to the committee for your use. D.C. WASA reports that the D.C. water system has been at or below the action levels for lead and copper under the lead and cooper regulation for three consecutive years since the report in early 2005. The latest report submitted to EPA by WASA states that the 90th percentile of over 100 samples taken was 10.9 parts per billion below the action level of 15 parts per billion or greater under the Federal rule. The D.C. water system is now meeting the requirements of the Lead and Copper Rule such that additional lead service line replacements are no longer required, in accordance with Federal regulations. This spring EPA will conduct a triennial inspection of the water distribution system in the District, and we will continue to coordinate research on planned and potential water treatment changes at the Washington Aqueduct. With regard to wastewater controls on the wastewater regulatory front, EPA issues and ensures compliance with Clean Water Act permits in the District. Such permits are issued to D.C. WASA for operation of the Blue Plains facility and for the control of combined sewer overflows into local rivers. In April 2007 EPA issued an amended Clean Water Act permit to D.C. WASA which incorporates new limits for nutrient reduction to the Potomac River and Chesapeake Bay. Blue Plains is the largest point source of nutrients for the bay. I would like to point out that WASA has already achieved the 2010 Chesapeake Bay program load cap for phosphorus reductions, and the new nitrogen limit of no more than 4.6 million pounds annually will require a substantial upgrade to the facility. In 2007 WASA developed a total nitrogen wet weather plan for the Blue Plains facility to meet the new nitrogen limit. WASA presented that plan to EPA and we have commented on it extensively. The submitted plan involves major modifications to the Blue Plains facility and to the previously approved wet weather plan for control of combined sewer overflows. Given the complexity and extent of this major capital project, EPA and WASA have agreed to a 7-year compliance schedule until July 2014 for project completion. EPA intends to reissue the WASA's Blue Plains permit with year with a compliance schedule to get the job completed. This permit will be submitted for public review and comment as is required. With regard to the enforceable schedule of control of combined sewer overflows, to ensure the protection of the Anacostia River, Rock Creek, and the Potomac from the effects of discharge from the combined sewer system, EPA initiated Federal enforcement action earlier in this decade against WASA which resulted in a 2005 Federal consent decree. This decree provides WASA with a long-term enforceable compliance schedule for the completion of those controls under the national CSO policy and the Clean Water Act. We are very pleased to note that later this year WASA is on schedule to achieve a 40 percent reduction in overflows to the Anacostia River. When that plan is fully implemented, overflows to the Anacostia River are expected to be reduced by 98 percent in an average rainfall year. EPA will continue to carry out its duties in administration of the clean and safe drinking water programs in the District, in close contact and cooperation with WASA and local officials. With regard to Federal financial assistance, in D.C. clean water and drinking water State revolving fund programs provide annual grants to D.C. government. In the past 5 years in D.C. the clean and safe drinking water revolving fund programs provided grants in the amounts of $23 million under the clean water side and $39.5 million from the drinking water revolving fund. Such funds are directed to priorities established by D.C. government using an intended use plan, and typically 100 percent of those funds are directed to capital improvement projects of WASA. EPA also administers infrastructure projects authorized through special congressional appropriations, and in the last 6 years these have totaled approximately $3.5 million. I would last like to mention the fact that we are also working in partnership for watershed and source water protection. In addition to our regulatory and funding roles, we work through innovative partnerships in the D.C. area for drinking water source protection and the Potomac Basin for water security and preparedness, and, as part of the newly formed Anacostia Watershed Restoration Partnership. EPA has been a leader and active participant in the partnership efforts to restor the Anacostia River. EPA and WASA are members of what is called the Potomac River Basin Drinking Water Source Partnership, which is an organization to actively promote protection of drinking water sources in the basin. We will continue to work in close cooperation with D.C. WASA and D.C. government in addressing drinking water and wastewater issues and needs. Again, thank you for this opportunity. We will be glad to answer questions. Thank you. [The prepared statement of Mr. Capacasa follows:] [GRAPHIC] [TIFF OMITTED] T6013.084 [GRAPHIC] [TIFF OMITTED] T6013.085 [GRAPHIC] [TIFF OMITTED] T6013.086 Mr. Davis of Illinois [presiding]. Thank you very much. We will proceed to Mr. Jacobus. STATEMENT OF THOMAS JACOBUS Mr. Jacobus. Thank you, Chairman Davis and members of the subcommittee. I am Tom Jacobus, the general manager of Washington Aqueduct. Thank you for inviting me here today to discuss drinking water quality and the interaction between the Washington Aqueduct and the District of Columbia Water and Sewer Authority. Washington Aqueduct is a public water utility providing wholesale service to the District of Columbia; Arlington County, VA; and the city of Falls Church service are in northern Virginia. It is a Federal entity that is part of the U.S. Army Corps of Engineers Baltimore District. Washington Aqueduct's working relationship with D.C. WASA is sound and productive. Working together with effective oversight from EPA Region III, we provide the residents of the District of Columbia with excellent water, delivered with exceptionally high reliability at reasonable cost. Washington Aqueduct also works well with other Federal, State-level, and local agencies that have stewardship responsibilities over physical and biological resources. That, coupled with our interest in working with private advocacy groups, gives us the opportunity to contribute to solutions to environmental issues. One of the great strengths I see in both of our organizations, the Washington Aqueduct and WASA, is our willingness to continually evaluate our performance and to make improvements wherever we can. The public expects and they should receive no less. Washington Aqueduct's treatment plants employ multiple barriers to remove physical, chemical, and biological contaminants. We are fully in compliance with all drinking water regulations, and in many cases achieve standards far more conservative than the national regulations. However, as the potential contaminants become more complex and the ability to detect them in extremely low levels advances, we must continue to evaluate what changes in treatment may be needed to meet emerging Federal regulations and public health standards. We, along with Fairfax Water and the Washington Suburban Sanitary Commission, will cooperatively begin to acquire more data on pharmaceuticals and endocrine-disrupting compounds in general. The levels found to date have been extremely low, but we believe it is our responsibility to continue to look into the environment and see the water as we are using as our source water and learn more about it. We take that on willingly and we believe it is our responsibility. The Washington Aqueduct's financial needs are approved and supported by the Wholesale Customer Board. This board's principals are the general manager of D.C. Water and Sewer Authority, the Arlington County manager, and the city manager of the city of Falls Church. They are supported in that board's actions by their utility staffs. The board represents the population served by the water produced at Washington Aqueduct's Dalecarlia and McMillan water treatment plants. Its members report to their authority board or to their county or city government. In my judgment, this arrangement works very well. Thank you again for the opportunity to be here today to give testimony. I look forward to responding to any questions you may have. [The prepared statement of Mr. Jacobus follows:] [GRAPHIC] [TIFF OMITTED] T6013.087 [GRAPHIC] [TIFF OMITTED] T6013.088 [GRAPHIC] [TIFF OMITTED] T6013.089 [GRAPHIC] [TIFF OMITTED] T6013.090 [GRAPHIC] [TIFF OMITTED] T6013.091 [GRAPHIC] [TIFF OMITTED] T6013.092 [GRAPHIC] [TIFF OMITTED] T6013.093 Mr. Davis of Illinois. Thank you, Mr. Jacobus. We will now proceed to Mr. Siglin. STATEMENT OF DOUG SIGLIN Mr. Siglin. Thank you, Chairman Davis, Congresswoman Norton, Congressman Van Hollen. Mr. Chairman, my name is Doug Siglin. I am the Federal Affairs director for the Chesapeake Bay Foundation, and on behalf of our 200,000 members I thank you for the opportunity to be here today. You have my written statement. I am going to try to just summarize briefly the four points that I want to make here. First is that D.C. WASA, through its Blue Plains Wastewater Treatment Plant, is absolutely critical to the health of the Chesapeake Bay. I use a little fact in the testimony that Jerry Johnson provided for me, that if you took the daily flow from the Blue Plains Advanced Wastewater Treatment Plant and put it in gallon milk jugs in 1 day and line those milk jugs up side by side, it would go around the earth one and a half times. That is to say that it is an enormous contributor of water to the Chesapeake Bay. The concentration levels of nitrogen in the water that is discharged from the Blue Plains plant is enormously important. As Mr. Capacasa just said, it is the largest source of nutrients to the Chesapeake Bay that we have in our 64,000 mile watershed. That is to say what Blue Plains does is extremely important. The Chesapeake Bay is suffering from an overload of nitrogen, which causes a deficit of dissolved oxygen in the water. We call these dead zones. It is the same kind of dead zone that is in the Gulf of Mexico. In fact, EPA tells us there are 44 estuaries and coastal areas in the United States now that are suffering from these kinds of dead zones. There are scientists who believe that the overload of nitrogen in our water is equal on an ecological perspective to an excess of greenhouse gases in the atmosphere causing climate change. It is a worldwide problem of huge magnitude. The challenge that we have before us is how do we address that in the Chesapeake Bay. Since the Chesapeake Bay 2000 Agreement, there has been a regional process that has involved the District of Columbia, the State of Maryland, the State of Virginia, the State of Pennsylvania, and what we call our watershed headwater States, New York, Delaware, and West Virginia, to make allocations of reductions of nitrogen throughout the entire watershed. The scientists tell us that we can have no more than 175 million pounds of nitrogen in the bay to have it healthy. We have far more than that now. In order to get to 175 million pounds we have to make reductions. There was a very complex, multi-year process to create those allocations. Blue Plains was given an allocation. Blue Plains, the WASA management, has challenged the allocation from the time that EPA first offered its draft permit in 2006 and has, once again, challenged the allocation at the Environmental Appeals Board on April 1st. It is true, and I want to acknowledge the fact that they are moving ahead with plans, but at the same time they are moving ahead with plans to meet the allocation, they are challenging it legally. They are on a two-track strategy. I ask you what is going to happen if, in fact, the two-track strategy succeeds and the allocation is, in fact, rejected. That means that we are going to have to go back and reconsider that lengthy process that led to the allocation that Blue Plains has. That means that the State of Maryland and the State of Virginia are going to have to reconsider their allocations. And I would submit to you that is going to be more delay and a much longer time before we can actually get to the place where the bay is clean and healthy again. Finally, Ms. Norton, you know that I have been working with you since the year 2003, and with the appropriators, to get Federal appropriations for WASA. We have been quite successful. Because of your good work and the good work of the appropriators, we have been quite successful in that. I want to continue to work with that to get appropriations for D.C. WASA and the Blue Plains Treatment Plant. It is absolutely essential that the Federal Government do that. But what I want to do today is propose the notion that the management of WASA should voluntarily try to get past the legal minimum which is being assigned to it by this long, complicated process and EPA permit, to voluntarily go beyond, to try to get more nitrogen out of the system so that we can save the Chesapeake Bay, if you will, faster, and in return for that commitment, then it seems to me that all of us the region-- Maryland, Virginia, Pennsylvania, Delaware, West Virginia, and New York--would owe an obligation and that we all should work together to find the sources of financing that are going to make that possible. Thank you for your time. [The prepared statement of Mr. Siglin follows:] [GRAPHIC] [TIFF OMITTED] T6013.128 [GRAPHIC] [TIFF OMITTED] T6013.132 [GRAPHIC] [TIFF OMITTED] T6013.129 [GRAPHIC] [TIFF OMITTED] T6013.133 [GRAPHIC] [TIFF OMITTED] T6013.130 [GRAPHIC] [TIFF OMITTED] T6013.134 [GRAPHIC] [TIFF OMITTED] T6013.131 Mr. Davis of Illinois. Thank you very much. We will go to Mr. Boone. STATEMENT OF ROBERT BOONE Mr. Boone. Thank you, Chairman Davis, Ms. Norton, Mr. Van Hollen. I truly appreciate this opportunity to speak with you today and share the point of view of the Anacostia Watershed Society. We have been observing the performance of the discharge of sewage in the watershed since 1989, and it was sad but we had to file a lawsuit to get the attention of WASA to stop discharging sewage into the Anacostia. We have a vision for a swimmable and fishable river by-- well, we started out with the year 2000, and we are slipping now to 2010. We don't want to slip much more than that. It is pleasant outside today, but 3 months from now it would be very appropriate to see kids and myself, too, probably out refreshing and enjoying the river swimming in it. So we hope to meet that clean water mandate of a swimmable Anacostia River, but to do that we are going to have to get the sewage out of the water. I am very glad to say we have been a great supporter of WASA. You know, we don't realize it, but this is the largest wastewater treatment plant in the world, and that is words, but accomplishing that is another story. We look to WASA to solve our problem. If we can get the sewage out of the water, we can have a swimmable river, but not until we do that. I must say that I have been told today by Mr. Johnson that 40 percent of that 100 years of dumping sewage in the water, 40 percent of that will be stopped coming September of this year. That is cause for celebration right there, I must say. The ecology of the water will profoundly change with 40 percent less sewage going into it. Not swimmable yet, but much better off. We are very concerned about the pharmaceuticals and the endocrine disrupters that are ongoing now. We are finding out more about those, and it is getting to be very scary, quite frankly. We would like to see a lot more energy focused on the removal of nitrogen, but also pharmaceuticals and endocrine disrupters. There is another issue about transparency. You know, with transparency within WASA's process it would eliminate a lot of the paranoia and a lot of the scandals and so forth that are going around. I think more effort in being transparent would effectively put forward WASA's effectiveness that people don't know about at this time. It is a regional burden that WASA bears, and it should be a regional solution, and a transparent regional solution. One puzzling problem I have right now is this impervious surface tax that we strongly support, but I understand that the District government is also proposing an impervious surface tax, and so we have two proposals floating around. You know, a ratepayer receiving two bills about impervious surface is going to give impervious surface a bad name, so we need to have one combined or worked out solution to the impervious surface, because the impervious surfaces are creating the stormwater that is the major problem with the Anacostia River water quality. That is all I have to say. It is getting late. I thank you for this opportunity. [The prepared statement of Mr. Boone follows:] [GRAPHIC] [TIFF OMITTED] T6013.094 [GRAPHIC] [TIFF OMITTED] T6013.095 Mr. Davis of Illinois. Well, thank you very much. I want to thank all of you gentlemen for being here with us. Mr. Capacasa, in reference to the amended Clean Water Act permit EPA issued to WASA last year to incorporate new limits for nutrient reduction to the Potomac River and Chesapeake Bay, in your opinion, what are possible and achievable solutions or ways to bring the Blue Plains Wastewater Treatment Plant into compliance with the updated standards? Mr. Capacasa. Well, Mr. Chairman, WASA has already submitted a plan to us to achieve the job. It is a very innovative plan, very creative plan which merges two goals in one, one of reducing overflows to the rivers, and one of total nitrogen reduction. So that plan has been submitted to us. We have commended it greatly and I think the job right now is getting on with the work of implementing a plan. I heard Mr. Johnson today committing to basically take the next steps to implementation. It will take until 2014 to complete the job because of the magnitude of the upgrade, but it will be a vitally important milestone to complete in the Chesapeake Bay restoration when it is done. Mr. Davis of Illinois. Thank you very much. Mr. Jacobus, given the role of the Washington Aqueduct in ensuring the public's safe drinking water and recent concerns raised about trace amounts of pharmaceuticals, what are the Aqueduct's long-term plan for continually upgrading or improving the quality of the District's water supply to stay ahead of new industry standard regulations? Mr. Jacobus. Yes, Mr. Chairman, all water treatment plants look at their source water and design treatment that meets the needs to remove contaminants from the source water. We do that right now. In the future, as we look at contaminants such as endocrine disrupting compounds, pharmaceuticals being one of them, and if we can't find better ways to keep them out of the water and if we find that their levels are increasing to a point that treatment is required, then we will certainly be in a position to employ treatment, because we are now initiating a study to look at alternative treatment sources, but it is based on what is the contaminant, what is an appropriate treatment, and then we have to then look at the cost and then the phasing in of that. So we are going to continue to, starting now, with a new study looking at some of these emerging contaminants, to look at the long-term efficacy of our treatment plants to make sure that we will always be in compliance and that we will communicate with our customers and collaboratively deal with those we serve in the District of Columbia and our Virginia customers to make sure they understand what the potential risks are, what the potential treatment opportunities are, look at the costs and benefits of all of that, and we will work together to make a decision to make these capital investments. But it will be science-based, it will be risk based, and it will also be best practices, and we are committed to a process to determine that which will give us a suite of options. We will select from among those and do the projects that will be required to keep the drinking water safe into the future as contaminants continue to get into the watershed from other human activity. Mr. Davis of Illinois. Well, gentlemen, thank you very much. I am going to go to Ms. Norton. Ms. Norton. Thank you, Mr. Chairman. A few quick questions. If I can just get direct answers, I think we will be fine. Mr. Jacobus, you heard my concern and my understanding that there are competing priorities when, for example, Washington has to decide where to spend the money, if it is lead pipe, partial lead pipe replacement, and the alternative, orthophosphate. Now, the District has a lot of experience of others on which to rely. When can you tell us it will be appropriate to rely on orthophosphate or not in this particular jurisdiction? Mr. Jacobus. I think the orthophosphate has shown, since its induction into the system and introduction in 2004, that it is working well, and that it has brought the levels of lead-- remember, the lead comes from the lead service line pipes, and so as the water sits in those pipes it tends to leach it out. The orthophosphate puts a barrier on the inside or the pipe. That is working, and the demonstration that it is working effectively are the results that are being shown in the last several cycles of the testing. Ms. Norton. You think it has already been definitively proved? Mr. Jacobus. I think it has been very effective and it is properly protecting the citizens, as it was intended to do, and the test results show that. Ms. Norton. Given the cost benefit issues that particularly you, Mr. Siglin and Mr. Boone know and worked so hard with me and other Members of the region to address, do you think the time has come to rely on this new approach rather than to put public money into the gold standard of replacement of the public portion, whether or not--I will make the question harder--whether or not the private party wants to do its share, as well. Mr. Jacobus. Looking at my responsibilities at the Aqueduct, ma'am---- Ms. Norton. No, I am asking Mr. Siglin and Mr. Boone. Mr. Jacobus. I am sorry. Excuse me. I apologize. Ms. Norton. Given the competing priorities that they know very well, because they help me here as I try to get more money. They have heard the testimony. They have had to sit through this testimony. And they have heard me say we are on pay-go, and they have put in a lot of elbow grease. You have heard the testimony of Mr. Jacobus. You have heard testimony of GAO. You heard the testimony that other jurisdictions have even more definitively shown. In terms of the priority, do you think the priority should be in putting money, public money, into replacing the public portion of lead pipes in the District of Columbia. Mr. Siglin. Congresswoman Norton, I have become an instant expert on orthophosphates over the last 2 hours. Ms. Norton. Last two what? Mr. Siglin. Hours, sitting here in the hearing. Seriously, I can't make a judgment about lead pipes and the---- Ms. Norton. That is not what I am asking you to make a judgment about. Others who have expertise, I am asking you about where the money ought to be spent. Mr. Siglin. I understand. Ms. Norton. Do you think, if you had the choice to make that WASA should put the money into the public portion of lead pipes or should put the money into CSO or other parts of the system which are crying for money--I mean, somebody has to make that decision. I am pleased to make it; I am just looking for input from people who have credibility with us instead of simply making it. You heard the evidence. I tell you I go by the evidence. Mr. Siglin. Congresswoman, I can only repeat back to you what I think I heard today. What I think I heard today is if you only replace the public portion of the lead pipes and not the private portion it is not going to be as effective as you want it to be. I think I also heard that the orthophosphate treatment has been working and that appears to be a possible solution. That is the sum of what I know about that particular aspect. Ms. Norton. To the extent of that evidence is not contradicted, you know, the reason I put you on record on this is everybody accuses my environmental friends of wanting to spend money whether or not, and I am just giving you the opportunity to say if you prove it, and we haven't heard evidence to the contrary, and you have huge priorities otherwise, you need to advise public officials because they have to make the decision. As far as I am concerned, you answered the question, but I am going to go on. Maybe you can help me, Mr. Capacasa. I am trying to find out about all these. I asked our two prior witnesses about whether or not WASA is working at cross purposes with many of us who are trying to take nitrogen, eliminate nitrogen from the Anacostia and from the water, when they engage in attempts, protests, you set one standard, then there is a protest--and there is an appeal appearing right now, April 1st. His answer is, you know, we settled these things. Are you lowering the standard? If they are settling them, why aren't they settling them before protests and appeals happen? Mr. Capacasa. We believe, through the Chesapeake Bay program, the D.C. Mayor represents D.C. government and comes to the tale and makes agreements, and the allocation that we provided to D.c. was respective of the allocation that D.C. agreed to as part of the Chesapeake Bay Compact, if you will. So we do think it is an unnecessary delay and unnecessary challenge. The process allows for parties to exercise their rights of appeal, and that is what we have. Ms. Norton. Do you think they are doing it because these are very costly? I mean, are they trying to save money, because they obviously don't have a lot of money. Mr. Capacasa. Well, certainly it is a large cost. I think they want to get it right because if they are going to be building cap facilities for $800 million they want to get it right. I just think we spent 10 pages in our response to comments explaining a rationale for the total nitrogen limit. We think it has been thoroughly vetted and explained and very transparent to those who want to know why it is what it is. Ms. Norton. When I heard something that apparently doesn't cost money, I think your testimony found that the Lead Copper Rule, that they were in compliance. The so-called dialectics where you had to wring out of WASA that they don't use dielectrics when lead and copper pipes are joined. Should they be, particularly since it doesn't present a tremendous cost? Mr. Capacasa. Ms. Norton, e can share with you a report that is on the EPA Web site right now which looked at the specific issue of two different metal pipes joining each other in the D.C. water system. It is called galvanic corrosion. When the treatment process is working as good as it is now in D.C., this report determined that it was really a minimal benefit, a minimal effect to have this. Ms. Norton. So it is really not worth the cost? I am not trying to make anybody spend money. Mr. Capacasa. In our view it is a minimal benefit. Ms. Norton. How much does it cost? Mr. Capacasa. I can't speak to that. It may be minimal cost, but it is not---- Ms. Norton. Would you provide that information to the committee within 30 days if you don't have it. Mr. Capacasa. Sure. We will share that report with you. Yes. Ms. Norton. If it is not necessary, it is not necessary. Would you clear up this flushing problem for us. There is a lot of controversy about flushing by EPA. Now, EPA regulates the first draw of water samples, but we all know the second draw is equally, if not more, representative of how we operate, how people use water to cook and to drink. WASA seems to take advantage of the fact and has been accused of lots of flushing. The one that most disturbed me, Mr. Capacasa, was in 2007 when WASA instructed the D.C. public schools to flush every school for 45 minutes the night before sampling. Do you think that is appropriate? Mr. Capacasa. We do have protocols that apply to large buildings such as schools. The protocols are different between a residential sample method and larger buildings such as schools. The protocols do allow for the nightly---- Ms. Norton. Forty-five minutes of flushing the night before the sampling? Mr. Capacasa. If it occurs the night before and the water stays stagnant for a period of 8 hours or more---- Ms. Norton. So it is all right to flush the night before within the rules? Mr. Capacasa. Some flushing the night before is within the rules. I would be glad to share---- Ms. Norton. Why did they flush? Wy do you think that they did flush? There may be some good reason for it. Mr. Capacasa. We can double check on that, but, like I said, we have provided the appropriate protocols to the D.C. school system for the sampling of the schools. Two rounds of sampling of the schools have occurred using an EPA protocol. I would be glad to share that with the committee. Ms. Norton. Excuse me, sir. How much flushing should occur before water at a school is sampled? What does the EPA require, if anything at all? Mr. Capacasa. I think we had a recommendation of shorter time perhaps, maybe 4 or 5 minutes, but I want to be sure about that before I definitively state that is the answer. Ms. Norton. You were clearly informed. I can't believe you were not informed of this. Is there anything that EPA can do about these flushing incidents? Mr. Capacasa. We have provided quite a bit---- Ms. Norton. Which may give a completely false picture of whether or not thousands of people have contaminated water. Mr. Capacasa. I understand the concern, and certainly where school children are involved we want to make sure the best is done. We provide quite a bit of assistance to the D.C. school systems on sampling protocol, and EPA does---- Ms. Norton. They were instructed. They were instructed by WASA, so I am not asking what they would do; I am asking, if WASA tells them flush this thing for 45 minutes and that is what they do, I guess, I am asking you if EPA monitors that in any way. Mr. Capacasa. It is an area of the law where we don't have any direct authority. Ms. Norton. So maybe Congress needs to give you some? Mr. Capacasa. Large buildings and schools are not within our direct authority under the Drinking Water Act. It is primarily water as distributed in the distribution system. Ms. Norton. As a matter of fact, you are right. That is why our bill, the bill with Chairman Waxman--and before this hearing I said to him that even if we do not proceed with the whole bill, with respect to the parts having to do with children and with schools, it seems to me we ought to pull that out and try to move it. Mr. Capacasa. Ms. Norton, we are going to be sponsoring a workshop this year for owners of large buildings within D.C. to make sure they understand the proper protocols for testing and maintenance of water quality in large institutions. Ms. Norton. Remember, I am dealing with the water guys, WASA, telling them to flush, so they would presume that it had your blessing and that it was appropriate scientifically. I don't want to keep this panel. We have been here a long time. I am very concerned about what is beginning to come out on bottled water. It is a complete hazard to the environment, and now we are learning that some bottled water which people regularly drink while they are engaging in healthy activities, like water and running, may, because of the nature of the bottles--and there are some numbers, three, seven. I don't know which numbers are supposed to be worse than others. Could I ask any of you, do you think it is appropriate for people to use bottled water, even in light of all you know about water and what we are trying to do to improve water here? Mr. Capacasa. I will just start by saying that the water is delivered to the tap. Ms. Norton. Excuse me? Mr. Capacasa. The water as delivered to the tap in the District meets all Federal health-based standards. I personally don't see---- Ms. Norton. So it is not necessary? Mr. Capacasa. I personally don't see a need to---- Ms. Norton. To use these bottles which they now tell us, themselves, may be contaminated with some harmful chemical? That would be your view, Mr. Jacobus? Mr. Jacobus. Congresswoman, I would like to say that I would like to come to the next hearing you hold and find a pitcher of water with ice and glasses on the table. Ms. Norton. You won't. This is what we use. I am asking you if this is what we should be using. Mr. Jacobus. But the thing is I don't think there is anything wrong with this water, but there is also---- Ms. Norton. No, I am asking you whether there is anything wrong with this bottle. Mr. Jacobus. I suspect that concern is way overblown, but the fact that people are drinking bottled water in lieu of the city water that we have gone to all of the trouble and expense at the ratepayer' expense, and it is perfectly good to drink. The problem is not the water; the problem is the confidence that people have in their water. We are, with your help and others within the District of Columbia government, we want to work harder to find a way to get people's confidence in our water supply so that they can go to the tap and take a drink of water. This bottle is 250 times more expensive than a glass of water drawn from the tap. So while we are talking about raising water rates over here, on this hand people are buying water that is much more expensive than the cost they will incur with the increased rates. So we are working with D.C. WASA, with Jon, and everyone else. We, I believe, need to work in a way to restore the public confidence. I am here to tell you that we at the Washington Aqueduct continue to have confidence in what we do and we want to work with our partners, because we deliver great water to all of our customers that is perfectly good to drink. The trouble is that people aren't convinced of that, and that is an area that we have to find the connection, because it is a public service that we offer and people are not getting the advantage of it. Ms. Norton. We have you at the same table with Mr. Siglin and Mr. Boone because of a seamlessness of our environmental concerns. Leave aside for a moment whether number three and seven--you have to look on here to find out which number. Leave that aside for the moment and let me ask both of you: should these containers be eliminated in light of where we know they end up? Mr. Boone. I will answer first. I think absolutely yes they should be eliminated. They end up in the Anacostia River. They end up in the ocean. There is research that has confirmed that plastic doesn't disappear. It breaks down into little pieces and it ends up in the food chain, becoming an endocrine disrupter. There has been considerable research about this done on the Pacific side of the United States. And so the plastic is persistent in our environment. It is all over the place. But I must say, Congresswoman, by having it here, you affirmed its use. You set the standard that this is all right, this is good to have. Ms. Norton. You are absolutely right. Don't think I won't bring it to the attention of the chairman of the committee. We all do this just out of habit. No one thinks about it. We do have a Speaker who is greening the Capitol. I am going to suggest to her that when it comes to our offices, where they bring these great big bottles, there may be nothing else you can do, nor do I know whether lead in the pipes exists here in the Congress. It probably does. But if we didn't invest in these, I bet we would save gobs of money. I asked it in order to engage in an act of self-incrimination. Mr. Siglin, I don't know if you have a response to that. Mr. Siglin. Congresswoman Norton, my children think I am a real pain because I do everything I can to keep them from drinking bottled water. In fact, we had a couple that we refilled because I didn't want them to buy new ones, and then I read some place that wasn't a good thing to do either, so I am with you completely. Talk to the Speaker and see if we can get it out of here. Ms. Norton. Mr. Siglin, could I just thank you for your suggestion. My colleague was not here when Mr. Siglin spoke about getting more nitrogen out, in other words, rising above the EPA's standard in light of what happens to the bay and rivers and tributaries, but he also had heard testimony about competing costs, and so he didn't offer a free lunch. Why don't you folks come up with some more money to get the nitrogen done with and the standard where it should be, especially since we are missing the deadline that had been set. Mr. Siglin, you said that we should ask for a better standard, an improved standard, if the three jurisdictions in a version of win/win would also engage in financing the reduction of nitrogen, as well, was that your testimony, essentially? Mr. Siglin. Yes, I would like to be clear that I think the Federal Government ought to help, to the greatest degree possible, WASA achieve the nitrogen concentration limits that it has been given by the EPA in this draft permit. But on top of that I suggested that I thought it would be the right thing to do, since we seem to be actually failing in the big picture, which is to figure out how to get the bay clean. The Clean Water Act has given us substantial progress since 1972, but the job isn't getting done. If we continue with the regime of only doing the minimum necessary by law, and, in fact, fighting the minimum necessary by law, but ultimately only doing the minimum necessary by law, we are not going to get to the goal. So what I am suggesting is that, if it were possible, it would be a wonderful thing if the WASA Board of Directors would say, you know, WASA management, don't just take the legal minimum that has been handed to you by the EPA, but go beyond it. We, in fact, do have the capacity at Blue Plains to do that. We could go beyond that if the decision were made. Now, there is a cost involved, and, of course, a lot of this hearing to day is about how huge the cost of all these things are and where the tradeoffs are and all of that thing, but I guess that I would say it would be a wonderful thing if the world's largest advanced wastewater treatment plant, which happens to serve the Congress of the United States and the White House and the capital city of the free world, would say we are going to do more than the legal minimum, and then to have all the partners in this region say, yeah, we like that and we are going to help you pay for it. Ms. Norton. Mr. Siglin, I know you realize there is a precedent for that. We finally got all of the region to agree on the same kind of win/win if we can get the money out here for Metro. Mr. Siglin. Yes. Ms. Norton. For the capital costs for Metro in return for dedicated funding from all three sources. That is the precedent that your suggestion seems to suggest. Thank you very much, Mr. Chairman. Mr. Davis of Illinois. Thank you very much, Ms. Norton. We will go to Mr. Van Hollen. Mr. Van Hollen. Thank you, Mr. Chairman. I just have one question, and it really follows on to Ms. Norton's question about the WASA compliance with the requirements and standards set out in the Chesapeake Bay 2000 Agreement, which I understood to be no more than 4.689 million pounds annually. I guess my question is to you, Mr. Capacasa, to just comment if you would on Mr. Siglin's testimony, because he raises what I think are some important points here. While you covered a lot of the EPA's relationship with WASA, you didn't raise in your testimony this issue, which I understand from Mr. Siglin's testimony that they continue to challenge the EPA's nutrient reduction goals that you have set out. And, as he said in his statement, Mr. Siglin's statement, ``WASA provides a case study in why we are failing to achieve that goal. Rather than accepting it as a result of a detailed, legitimate process, WASA needs to pursue legal strategies to try to avoid its ecological and legal obligations. Its arguments have been rejected twice by EPA regulators and unanimously rejected last month by the EPA's Environmental Appeals Board, yet it continues to pursue this protest.'' I didn't see that in your testimony. I guess my question is: isn't this a legitimate concern? Wouldn't we all be better off trying to stick to the standard that EPA set for the benefit of trying to clean this up? And is this consuming a lot of your time, energy, and resources, this fight over the nutrient reduction standard? Mr. Capacasa. Thank you, Congressman. Yes, in short response, it is consuming a lot of time. There are three appeals to the permit that are eating up a lot of our time and, more importantly, delaying the important job of cleaning up the bay. I think, in fairness to WASA, and I do want to be fair to them, D.C. was the first jurisdiction to meet the 2000 Chesapeake Bay goal by putting BNR in place at the D.C. WASA facility. They have already well exceed the phosphorus requirement for the bay. They are well beyond the legal minimum requirement for phosphorus induction to the bay. We are working now with them cooperatively on this nitrogen project. But yes, in short answer, I wish the appeals went away because we would be able to get on with the job. I think it is unnecessary because the D.C. government had agreed to those allocations as part of the Chesapeake Bay program compact. Again, in fairness, they are exceeding the phosphorus goal already, they are well beyond the legal limit, and we think, frankly, everybody should drop the appeals so we can get on with the job of finishing the upgrades to the facility that are necessary. Mr. Van Hollen. I agree. I mean, it seems to me that we have set this goal, we have set these standards that we should do everything we can to try and meet them. As we all know, I think, we are already behind schedule with respect to the cleanup, and this delay simply puts us farther behind schedule. In the interest of time I am not going to pursue this right now, but I do think that it is important for all these entities to get on board with the agreement that was signed, as has been pointed out, by all the regional entities here. It does raise lots of concerns when, having signed an agreement and agreed to certain goals, it appears that people are trying to backtrack out of it. But we can have a longer conversation on that. Thank you, Mr. Chairman. Mr. Capacasa. Thank you. Mr. Davis of Illinois. Gentlemen, thank you very much. As we prepare for our fourth panel, I will proceed to introduce them. Mr. Dan Tangherlini is the city administrator, Deputy Mayor to Adrian Fenty, and serves as a member of WASA's Board of District railroads. Dan has served as the director of the District of Columbia Department of Transportation from June 2000 to February 2006, and is well known for his work as the interim general manager of the Washington Metropolitan Area Transit Authority. Mr. Tony Griffin is the county executive of Fairfax County and has held the position since January 2000. Mr. Griffin serves on the Board of Directors of WASA. Mr. Timothy Firestine, since 2006, Timothy Firestine has served as the chief administrative officer for Montgomery County, MD, also a member of the WASA Board of Directors. He has spent the last 28 years of his life working for Montgomery County. And Dr. Jacqueline Brown is the chief administrative officer for Prince George's County, MD. She is the first woman in the history of the county to hold this position and has the responsibility of coordinating government services for 27 municipalities in addition to her role as a member of WASA's Board of Directors. Ladies and gentlemen, thank you very much. If you would, stand and raise your right hands. [Witnesses sworn.] Mr. Davis of Illinois. The record will show that the witnesses answered in the affirmative. Let me thank you all so much for your public service and for your patience today and being here at this hour. We will begin with Mr. Dan Tangherlini. Sir, you may proceed 5 minutes to summarize your statement. Of course, your full statement, as will be the statement of all the witnesses, is included in the record. STATEMENTS OF DANIEL TANGHERLINI, CITY ADMINISTRATOR, DISTRICT OF COLUMBIA, AND D.C. WASA BOARD MEMBER; ANTHONY H. GRIFFIN, COUNTY EXECUTIVE, FAIRFAX COUNTY, AND D.C. WASA BOARD MEMBER; TIMOTHY FIRESTINE, CHIEF ADMINISTRATIVE OFFICER, MONTGOMERY COUNTY, AND D.C. WASA BOARD MEMBER; AND JACQUELINE F. BROWN, CHIEF ADMINISTRATOR OFFICER, PRINCE GEORGE'S COUNTY, AND D.C. WASA BOARD MEMBER STATEMENT OF DANIEL TANGHERLINI Mr. Tangherlini. Thank you very much and good afternoon, Mr. Chairman and members of the Subcommittee on Federal Workforce, Postal Services, and the District of Columbia. Thank you for allowing me the opportunity to speak with you today about the District of Columbia Water and Sewer Authority [D.C. WASA]. My name is Dan Tangherlini, as previously stated, and I am the city administrator for the city of the District of Columbia. In this role I am responsible for the daily operations of the D.C. agencies under mayoral control, preparing the District's annual operating budget, setting operational goals and performance measures to ensure that agencies are meeting the needs of the residents of the District of Columbia. I am also privileged to be appointed by Mayor Adrian M. Fenty as a principal member of the District of Columbia Water and Sewer Authority Board of Directors and have been serving in that capacity for the past year. D.C. WASA plays a vital role in protecting the health and safety of District of Columbia residents and visitors by providing safe drinking water and wastewater treatment services, as well as critical infrastructure needed for fire suppression and emergency response in the Nation's capital. D.C. WASA operations, from operating the largest advanced wastewater treatment plant in the world to the development and implementation of the EPA mandated long-term control plan, will also greatly impact the cleanup of the Anacostia River watershed and economic revitalization along the waterfront. It is important to recognize the history of D.C. WASA and its relationship to the District of Columbia and the greater Washington metropolitan region. In doing so, it is important to note that D.C. WASA's assets are the property of the District of Columbia, and that the predecessor organization to D.C. WASA was created as an entity to serve the Federal city and its residents, as represented by the majority it holds on the D.C. WASA Board of Directors. In my view, the three critical issues facing D.C. WASA are the same today as they were almost a year ago when I initially was nominated to the D.C. WASA Board, and that is, one, undertaking the long-term control plan; two, upgrading the Blue Plains Water Treatment Plant to comply with the newly issued EPA permit requirements; and, three, investing in and improving the water and sewer infrastructure. The first two issues will be critical in improving the water quality of the Anacostia River and surrounding ecosystem, which we can all agree has been neglected for far too long. The third affects the quality and dependability of drinking water in the District and efficient use of our sewer system. Together, these three issues present a substantial challenge to D.C. WASA's finances and will greatly impact District and regional ratepayer. Due to the fact that the District inherited its antiquated water and sewer infrastructure from the Federal Government, it is appropriate that our Federal partners remain engaged with this issue related to D.C. WASA. Further, I look forward to working with the committee and Congress to find ways to financially support our efforts to address the critical improvements that have been discussed here today. Finally, I recognize that issues related to the financial oversight of D.C. WASA are of an interest to the committee; therefore, I would like to affirm that the District remains committed to working with my fellow D.C. WASA Board members, the region, and Congress to reach an agreement on governance that will be amenable to all parties and ensure the continued strength and quality of D.C. WASA. Thank you very much for your time. I would be happy to answer any questions you may have at the appropriate time. [The prepared statement of Mr. Tangherlini follows:] [GRAPHIC] [TIFF OMITTED] T6013.096 [GRAPHIC] [TIFF OMITTED] T6013.097 [GRAPHIC] [TIFF OMITTED] T6013.098 Mr. Davis of Illinois. Thank you very much. We will go to Mr. Griffin. STATEMENT OF ANTHONY H. GRIFFIN Mr. Griffin. Good afternoon, Mr. Chairman and Mr. Ranking Member, members of the subcommittee. I am Anthony H. Griffin, county executive, Fairfax County, VA. I also have the privilege to be serving as Fairfax County's voting member to the District of Columbia Water and Sewer Authority. I appreciate the opportunity to speak to you today. I have taken the liberty to coordinate my testimony with my regional colleagues and fellow D.C. WASA Board members to minimize repetition in our comments. As the most senior in tenure on the Board, having been Fairfax County's voting member since November 1996, I will attempt to give some historical perspective and context to this hearing. My colleagues will address current issues. When the first meeting of the D.C. WASA Board of Directors was convened in October 1996, it was an organization borne of the District of Columbia Department of Public Works, saddled with debt, unreliable revenue, and a physical plant that was barely functioning. Just this past March, D.C. WASA's bond rating had been improved to AA by one rating agency. Its reserves are healthy and its overall operation is approaching premier status, with the Blue Plains facility earning the industry's Platinum Award for its quality operation. Consultants hired by the D.C. WASA Board of Directors to do a comprehensive budget review of the Authority at the behest of the City Council of the District of Columbia called D.C. WASA ``the best-kept secret on the east coast.'' The success achieved today has come about because the Board of Directors checked their jurisdictional hats at the door and committed to make D.C. WASA a world class organization. The District of Columbia and its jurisdictional neighbors can only make our metropolitan area a success if we all work together. The core cannot succeed without its neighbors, and the suburbs are diminished without the capital city state. Twice the Board of Directors has commissioned a Board committee and studies to look at the issue of governance. The first time was in response to a legislative mandate, District of Columbia Law 11-102, Section 43-1677, to include responding to the requirement of ``determining the feasibility of establishing the Authority as an independent regional authority and make recommendations for the ongoing relationship of user jurisdictions to the Authority.'' The threshold question for the first study was, ``Would sufficient benefits result from changing the current D.C. WASA governance structure to that of a regional authority model?'' At the time of the study, the Authority was believed to be independent in that D.C. WASA had established its own rate structure and operating and capital budgets, provided that the Mayor and the Council of the District of Columbia could review and comment prior to being incorporated into the annual appropriation legislation sent by the District to Congress. Water and sewer funds had been segregated from the District's general fund, and D.C. WASA had established independent bonding authority. New financial procurement and personnel systems had been created to support D.C. WASA's ability to operate. Against this 3-year record of independent operation, the tasked committee and the Board of Directors concluded that, while a wholly independent regional authority was technically feasible, no change in D.C. WASA's governance should be pursued. I was on the committee and was the maker of the motion to not change D.C. WASA's governance structure. My rationale was that the current organization, while not perfect, was sufficiently independent and accomplishing what was intended in terms of accountability. Additionally, seeking change would be politically difficult and not the best use of resources. One recommendation from the initial governance study was to revisit the question of governance no later than 2005, on the theory that there is benefit from re-examining whether the purpose of D.C. WASA is still being accomplished. The second review completed in 2006 reached a similar conclusion to the first in that the current structure was working. The additional consideration not addressed in the initial study concerned D.C. WASA's long-term interest in who operates the Washington Aqueduct currently operated by the U.S. Army Corps of Engineers. I recite this history because I believe it is important to make clear that D.C. WASA has become a success story because all the jurisdictional partners focused on making it a success. Fairfax County was looking to make sure that its investment produced accountable and reliable service, nothing less, but nothing more. D.C. WASA will not advance if it is at the expense of one or more of its member jurisdictions. I am, on the county's behalf, very sensitive to the ownership and location of the Blue Plains facility. The Board strictly adheres to voting according to joint use and non-joint use on contractual and financial issues. Retail rates are approved only by District members of the Board, but my observation is that rate increases have been balanced between the legitimate business requirement of D.C. WASA and the needs and the ability to pay of the customers being served. This balance was not always observed, requiring the creation of D.C. WASA. As long as the Board of Directors continues to be fiduciarily prudent and responsible, the financial independence that Congress intended for D.C. WASA should not be compromised. Consequently, Fairfax County supports the passage of H.R. 5778, clarifying that the chief financial officer for the District of Columbia cannot override decisions of the D.C. WASA Board of Directors. The proposed legislation is, quite frankly, the clarification that Congressman Tom Davis intended in his colloquy on H.R. 4942, fiscal year 2001 District of Columbia appropriations on water and sewer authority. Mr. Chairman, thank you again for the privilege to speak. I will be pleased to respond to the committee's questions. [The prepared statement of Mr. Griffin follows:] [GRAPHIC] [TIFF OMITTED] T6013.099 [GRAPHIC] [TIFF OMITTED] T6013.100 [GRAPHIC] [TIFF OMITTED] T6013.101 Mr. Davis of Illinois. Thank you very much. I am going to ask Ms. Norton if she would continue with the hearing while I run and vote. Ms. Norton [presiding]. Of course, Mr. Chairman. The next witness is Timothy Firestine. STATEMENT OF TIMOTHY FIRESTINE Mr. Firestine. Thank you, Congresswoman Norton and members of the subcommittee. I am Tim Firestine, the chief administrative officer for Montgomery County, MD, and a principal member of the Board of Directors of the D.C. Water and Sewer Authority. I appreciate the opportunity to speak to you today about preserving the independent regional nature of the D.C. Water and Sewer Authority. In particular, my testimony focuses on preserving the separate financial existence of WASA from District of Columbia governance. In order to accomplish this, I support passage of H.R. 5778, the District of Columbia Water and Sewer Authority Independence Preservation Act. As has been mentioned several times today, WASA was created in 1996 to respond to serious operational and financial problems at the Blue Plains Wastewater Management Plant. In a 1996 report of this committee about the District of Columbia Water and Sewer Act of 1996, it was noted that, ``A collapse of Blue Plains would be an ecological catastrophe.'' This same report made it clear that the path to recovery required that WASA finances be managed independently from the District's. It also noted that, in order for WASA to be successful, it must remain a regional authority. The report also pledges that, ``The Committee commits itself to careful monitoring of the Water and Sewer Authority as it moves forward. It will do anything it can to help or improve the prospects of the Authority, and will be vigilant in looking for problems or attempts to subvert the performance of the Authority.'' That is where we need your help. Unfortunately, the independent WASA that has flourished over the past 10 years or so is jeopardized by the possible implication of subsequent Federal legislation that established the position of chief financial officer for the District and granted far-reaching authority to the CFO. Until 2006 an MOU between WASA and the District CFO addressed this conflict between the legislation creating WASA and that which created D.C. CFO position. In 2006 an interpretation of law that created the D.C. CFO requires that position oversee WASA and is not allowed to enter into an MOU with WASA. That changes the status quo. This interpretation endangers the financial independence so desired by this committee and the regional partners when WASA was created. Since its creation, WASA has established independent systems of governance, including those for financial management, procurement, human resources, and retirement. The suburban jurisdictions or WASA's wholesale customers depend on sewage services, not water, as was noted before, provided by WASA and have an ownership stake in these joint use sewage facilities, including the Blue Plains Wastewater Treatment Plant. For over 30 years D.C.'s suburban partners have paid more than 50 percent of Blue Plains' operation and maintenance costs, amounting to about currently $55 million annually. Our share of Blue Plains' capital costs is even higher at 60 percent, and is expected to exceed $1 billion over the next 10 years as WASA embarks on the nitrogen removal wet weather plan to advance the goals of the Chesapeake Bay program. With over $100 million of resources from the suburban governments being committed to at Blue Plains annually, there is a clear interest on the part of the suburban jurisdictions to continue to share in the financial oversight of this regional utility. Over the years, WASA has been a model now of successful regional cooperation. As was noted, the bond rating agencies just recently upgraded the bond rating to a strong AA. In the report issued by the Standard & Poor's credit rating agency, ``the upgrade is based on a demonstrated track record of sound financial operations over time.'' Bond rating agencies have consistently cited the participation of the suburban jurisdictions and WASA's financial independence as key WASA strengths that have played a role in the strong bond rating that has evolved for WASA. As noted, recent actions seriously compromised the independence of this regional authority, and we hope would be reversed. Therefore, I would urge the committee to reassert its support for WASA's independent regional authority. Since this is a matter of an inadvertent conflict with Federal law, this issue cannot be remedied without congressional intervention; therefore, I would respectfully request that the committee consider the adoption of H.R. 5778, the District of Columbia Water and Sewer Authority Independence Preservation Act, which removes any ambiguity in Federal law as it relates to the authority of the D.C. CFO's fiscal authority over WASA. Thank you very much for this opportunity to testify before the committee. [The prepared statement of Mr. Firestine follows:] [GRAPHIC] [TIFF OMITTED] T6013.102 [GRAPHIC] [TIFF OMITTED] T6013.103 [GRAPHIC] [TIFF OMITTED] T6013.104 Ms. Norton. Thank you very much. My good colleague has to go to vote. Since I can't go, I asked him to vote for me and offer his statement. Mr. Van Hollen. I apologize for having to run for a vote, but I just want to do two things; thank all the members of the panel, with special thanks to those who are here representing two of the jurisdictions that I represent, Mr. Firestine and Ms. Brown. Thank you for your testimony. And thank you, Ms. Norton, for working with us to try and address this issue which, as you said, we just want to make sure that the intent that you and others put together and put on paper back in the 1990's is something that is preserved going forward. I think there has been, as Mr. Firestine just said in his testimony, other intervening Federal actions created a cloud of uncertainty here which we are now trying to resolve, and we have to do it through Federal law. So thank you for your partnership on this and I thank the witnesses. If I can get back, I will. Ms. Norton. Ms. Brown. STATEMENT OF JACQUELINE F. BROWN Ms. Brown. Good afternoon, Congresswoman. I am Dr. Jacqueline Brown, and I have served as the chief administrative officer for Prince George's County government since December 2002. Since April 5, 2006 I have served as a principal member of the Board of Directors of the D.C. Water and Sewer Authority. As a Board member, I serve on the Budget and Finance Committee and on the Human Resources Committee. I take my responsibility to meet the mission of WASA very seriously, because what happens to and with WASA affects the region. My focus today is the residential diversity of the WASA work force. I would like to start off by saying that I am extraordinarily grateful and supportive to Congresswoman Eleanor Holmes Norton for her April 10th there to Mayor Adrian Fenty and Chairman Vincent Gray that requested the D.C. City Council introduce emergency legislation which would exempt WASA from the Jobs for D.C. Residents Amendment for 2007. Very, very indicative of the support and the collegiality that has been demonstrated here today. In addition, I am very grateful for the support of Mayor Adrian Fenty's proposed language in the fiscal year 2009 Budget Support Act of 2008 that exempts WASA from the Jobs for D.C. Residents Amendment for 2007. What I would like to do in terms of that is just to take time to do a little fact-finding that, as a suburban Board member of this essentially important and regionally important authority, I want to just present some of the work force facts that are here for the record. The employees are about 923, and almost 26 percent are from the District of Columbia. Almost 65 percent are from Maryland, and 9 percent are from Virginia, and .2 percent are from somewhere else. We actually have breakdowns in some of the counties in Maryland, since Maryland has about 65 percent of the work force for WASA. In Maryland we have 20 employees from Anne Arundel, 20 from Baltimore County, Charles County has 107, Howard County has 5, Montgomery County has 50, Prince George's has 376, and other counties have 21 members. What we have here is a situation where the residentially diverse work force in WASA has actually produced one of the stellar water authorities in the Nation. I think every last one of our employees is dedicated to fulfilling the regional mission of serving all of our customers with outstanding service by providing reliable and cost effective water and wastewater services in accordance with best practices. Again, I strongly support the efforts by Congresswoman Norton and by Mayor Fenty in terms of protecting the residential diversity of the WASA work force. I also, like my colleagues, strongly support H.R. 5778, which is the District of Columbia Water and Sewer Authority Independence Preservation Act. I thank you for this opportunity to speak with you and to thank you. I will be happy to answer any questions. [The prepared statement of Ms. Brown follows:] [GRAPHIC] [TIFF OMITTED] T6013.105 [GRAPHIC] [TIFF OMITTED] T6013.106 [GRAPHIC] [TIFF OMITTED] T6013.107 [GRAPHIC] [TIFF OMITTED] T6013.108 [GRAPHIC] [TIFF OMITTED] T6013.109 [GRAPHIC] [TIFF OMITTED] T6013.110 [GRAPHIC] [TIFF OMITTED] T6013.111 [GRAPHIC] [TIFF OMITTED] T6013.112 [GRAPHIC] [TIFF OMITTED] T6013.113 [GRAPHIC] [TIFF OMITTED] T6013.114 [GRAPHIC] [TIFF OMITTED] T6013.115 [GRAPHIC] [TIFF OMITTED] T6013.116 [GRAPHIC] [TIFF OMITTED] T6013.117 [GRAPHIC] [TIFF OMITTED] T6013.118 [GRAPHIC] [TIFF OMITTED] T6013.119 [GRAPHIC] [TIFF OMITTED] T6013.120 [GRAPHIC] [TIFF OMITTED] T6013.121 [GRAPHIC] [TIFF OMITTED] T6013.122 [GRAPHIC] [TIFF OMITTED] T6013.123 Ms. Norton. Thank you, Ms. Brown. I have just a few questions. I do want to say to Ms. Brown that the District of Columbia is pleased to contribute so heftily to the gross regional product of the state of several counties in Maryland. I understand your concern. But I think the concern of the District was that these people do their job. They are unionized workers, earn their money here in the District of Columbia. The point is they earn it from the region, as well as from this city, and I appreciate the way in which Mr. Tangherlini, the Mayor, Mr. Gray, and the Board have worked with me and with Mr. Van Hollen to arrive at an amicable way to meet a resolution. Could I ask each of you, you heard a proposal much akin to the Metro proposal. We have a very big nitrogen problem here, and we are really playing games here. You heard the testimony. You know the issue enough to know that WASA feels so hard- pressed that it fights the EPA, knowing full well that EPA does not have the gold standard for getting nitrogen out of the river and out of our water, yet WASA feels all kinds of competing priorities, particularly when it comes to cost. You all, I think, now participate in a bill that the entire region has cosponsored, a win/win bill that we are trying with some success--we think we can still do it--to get the Federal Government to pay for an increased share of Metro for capital spending in return for dedicated funding from the region, since we are the only Metro that doesn't have dedicated funding. Mr. Siglin testified that the only way to get out of the nitrogen rut without pretending that we are really cleaning up the Anacostian water is to do something similar. He didn't cite that. I cite that as the precedent. If the Federal Government, which is the primary actor and the largest ratepayer, were to come forward, do you think that it would be appropriate for members of the region to increase their funding for this purpose, or do you like things the way they are? Mr. Tangherlini. I will start, and I will say that, whether we think it is appropriate or not, we are going to have to as we try to meet the standard set by EPA and the commitments we have made as a region. I think as you discuss the nitrogen problem, that is a huge problem. It is about a $900 million problem. You can't ignore the CSO problem, as well, which is about a $2 billion problem. So really as you look at the water quality issues associated with cleaning up the Anacostia and reducing the continued impacts to the Potomac, you really have to look at the two problems combined. Frankly, those problems combined are the result of the infrastructure that we inherited in the District of Columbia. We might have built it differently. Even if we didn't, we think that the Federal Government has some responsibility for that and a broader regional and national goal of maintaining these waterways and enhancing the Chesapeake Bay. So I think the fact--and I speak for one jurisdiction--this is a commitment we have already made, and we are already committing substantial resources to it. Ms. Norton. Yes, but I didn't ask about those resources, because the suggestion was that increased Federal resources in return for increased local resources, essentially. That is the suggestion. Just like you have decided to do that with respect to Metro. Mr. Tangherlini. And I think, just like we have decided to do with Metro, we will more than likely decide to do here. I don't know what the specifics are. Ms. Norton. We don't have any specifics. Mr. Tangherlini. You are just dragging a promise out of me. Ms. Norton. No, I am just dragging out how committed you are. In fact, you bring CSO into it. Good, whatever it is, because the Federal Government plays a large role. My job is to push them, and we have been doing that, and we want even more. The question is going to come back on us, OK, what are they going to do that is beyond what they are already doing. Mr. Tangherlini. I think that is reasonable, and I would like to hear the answers to the left of me, but I think the fact is that we are committed to it and it would be great, actually, if that commitment was backed up with a Federal commitment, because that is the one commitment that is missing. Ms. Norton. So you say you are contributing more money than the Federal Government is at the moment? Is that what you are saying? Mr. Tangherlini. I think that is fair to say, absolutely, through our ratepayer. Ms. Norton. So you are saying at the very least the Federal Government ought to equal what you are now doing? Mr. Tangherlini. Yes, at the very least. Ms. Norton. Mr. Griffin. Mr. Griffin. Congresswoman, Fairfax County, I believe, supports doing what we need to do to clean the Chesapeake Bay, and if that means an increased contribution for our share at Blue Plains, I am sure that my Board would support that. I would just note that Fairfax operates the largest treatment plant in the State of Virginia, and we have not enjoyed the same level of Federal support that Blue Plains has, so that if you are successful in obtaining additional Federal funds on behalf of Blue Plains, if you could expand that to include other treatment plants in the Chesapeake Bay watershed that would be greatly appreciated. Ms. Norton. Mr. Griffin, you know the one advantage of being in the Nation's Capital is the big kahuna here is the Federal Government, and that is why you are getting any CSO money in the first place, because the Federal Government is a player here and a ratepayer here. Now, unless they have that role in Virginia do not expect Uncle Sam to come up with the same kind of piddling funds--I am not very satisfied with what they have here--but I can understand your concern. Certainly through us as the Nation's Capital these funds will reverberate whatever we can get and whatever--I appreciate your testimony--you are willing to do will certainly have its affect on, of course, the masterpiece of the region, the Chesapeake Bay. Mr. Firestine. Mr. Firestine. Thank you. Well, obviously, we share the same concerns. WASA has a strong environmental stewardship role here. We understand, and that is why our emphasis on the fact that this organization and resolving the nitrogen issue is a regional issue and will require resources of the region. Certainly we are willing to commit our share to that. As you know, there is a fee that was put into place in Montgomery County, at least my county. Maybe you don't know that. That basically goes toward the collection of moneys to help with our share of funding the resolution of this issue, which is also connected to our concern about the financial issue. We know that over time our commitment is going to be greater to this entity to resolve the problems that you mentioned, and that is the reason we want to assure that the fiscal independence does remain there as more resources would flow to resolving this problem. Ms. Norton. Dr. Brown. Ms. Brown. Yes. In Prince George's County there has been a real concerted effort to make sure that the waterways are clean, both in terms of debris but also chemically and in those kinds of things, working very closely with things having to do with the Anacostia, a commitment from our government to do that. I think your analogy of WMATA and this, although there are some slight differences, share a fundamental reason for all of the members of the region to contribute. Water knows no boundaries. Water really doesn't. I think it is very foolish of us to assume that the nutrients will stop, or whatever contaminants are will stop here and they won't cross the line because of some manmade or legislative boundary. That makes no sense whatsoever. And so the commitment to what is necessary is something that would be very seriously considered by the Prince George's County government if we could see that our Federal partners would be stepping up to the plate also in terms of doing their fair share. The headset and the demonstrated commitment to that by action and by resources is already a part of what happens to Prince George's. The three rivers that surround us are critical for us, the Potomac, the Patuxent, and the Anacostia. They are critical. Ms. Norton. Thank you, Ms. Brown. I think all of you show a willingness to do our share if we can get the folks up here to finally really do what they have not done for decades. It all certainly helps us. Could I just have some indication--I don't know if you know, but I indicated in my bill, the Anacostia River Initiative, finally passed. I had it in the WRDA bill, the Water Resources bill. This is very important because it is the predicate for getting more funds for the Anacostia. It says 10- year plan with all of the actors. The Corps is the lead, so you see the Federal Government is deeply implicated, taking the lead. Within 1 year--I don't have the deadline--from enactment-- but it has been enacted several months ago now--the 10-year plan has to come forward. Do you know whether the Corps has reached out to you or any of you with respect to this plan to within a year of enactment of the Anacostia River Initiative, which is a predicate to more money for the Anacostia? Have you had any? Mr. Tangherlini. I haven't been reached out to personally and directly, but that doesn't mean we haven't been reached out to as an organization. Ms. Norton. I realize I am talking to the top. Can I ask you to do this, in terms of my own follow-through. Would you within 30 days let us know by addressing this question to the appropriate officials whether or not the Corps is at work? We intend to hold them to this deadline, and particularly in light of your testimony about funding, region willing to do its share, Uncle Sam hasn't done its, can't do anything unless there is a plan. The plan, we put in the bill 1 year so that nobody could skate off of that. Only a couple more questions. Mr. Tangherlini, we are told that the new stadium, thrills us all, had environmental issues in mind as it went up. Was it LEED or anything like LEED? Mr. Tangherlini. LEED registered. It has received a LEED certification. I am not sure what level, but it did receive a LEED certification, which makes it the only stadium to have accomplished that. Ms. Norton. In the United States? Mr. Tangherlini. As far as I know. Ms. Norton. Of course, it is the only one that has been built, but I congratulate you on that. So on the banks of the Anacostia--and you know my concern there--you are about to build on Poplar Point? Mr. Tangherlini. Yes. Ms. Norton. Never was intended for development, even more precious than what you have had to do around the stadium. Initially a green area, a National Park Service area, it took every drop of sweat to get that bill out of here. How will you preserve, in light of the massive development that may take place, how will you preserve Reservation 13 and Poplar Point, the environmental, the pristine environmental qualities of these two areas which have now been entrusted to you for which neither the framers nor anyone else ever expected that there would be development of any kind? Mr. Tangherlini. It is an excellent question. I think the District has taken a number of specific actions to improve its environmental stewardship as it seeks development. In the case of Poplar Point, roughly 35 acres of the 105 that are there would actually be preserved perpetually as open space, and the proposals that have been discussed include a much more aggressive management of that open space than is currently being happened with the National Park Service. Actually, if you look at the Poplar Point area you will see that a good chunk of the area is actually developed for a Park Service maintenance facility, helicopter landing pad, and police station. There is an old---- Ms. Norton. That is really a rather small chunk compared to what you are going to do. Mr. Tangherlini. Right. There is the old capital greenhouses there. A piece is actually under the Frederick Douglas Bridge. With your assistance, we have been moving forward with a proposal to move the Frederick Douglas Bridge and open up some of that land actually for re-redevelopment, if you will, as a park. So one of the big issues with developing Poplar Point, in particular, is to create a meaningful environmentally sensitive park, as well as then subject the entire development to the new Green Building Act standards of the District of Columbia, which requires as small a footprint as possible, environmental footprint as possible, on that development. That would also be the case with Reservation 13. Reservation 13 was, in many ways, the exact opposite of Poplar Point in the sense that it is for the most part paved parking lots without stormwater management on it. That actually could benefit from some kind of investment. Ms. Norton. As long as the river, itself, is protected and one doesn't build onto the river and one uses state-of-the-art techniques for making sure that the runoff, which is inevitable wherever people are, doesn't get to the river, making it any worse than it already is, we may have a chance. I appreciate that answer. Finally, actually this may be for all of you. You heard the testimony. I asked about water fountains. I believe this is the case, because this was an issue always in the several hearings that we had on contaminated water before. It has to do with schools and fountains. There was credible testimony at these hearings that a lot of that had to do with the fixtures and not with WASA. We got WASA then, now, and we will always hold them accountable, but how do you know that the water fountain out of which children drink is not really the responsibility of the District of Columbia or counties represented here and not WASA at all, because of lead-based fixtures? Can you tell me that there are not lead-based fixtures, internal fixtures, that children may be exposed to quite apart from anything WASA has done? Mr. Tangherlini. I can't tell you right now which of those fixtures have lead base components to them, but I can tell you this is among the reasons why the Mayor sought the Authority to have direct control over the school system, got it through the Council, and then got it through here on the Hill with your support. Having that kind of direct accountability so that problems like this can be identified and addressed, and then the Mayor can be accountable for it, is one of the reasons why we have made that a key priority of the administration. Then you support that. We support that with a $200 million investment in reconstruction of our school facilities, with one of the key components being the replacement of the drinking water infrastructure in those schools. So that is a key issue that we are looking at as we go forward with the modernization of our entire school facility structure. Ms. Norton. I don't know if this has been a problem elsewhere. I won't ask you to run through. This is a special issue for me and my own environmental work. But I have to indicate and to concede, frankly, the primary reason I am concerned about lead in the water has little to do with the average person; it has almost everything to do with children. I do not know of a child who had cancer when I was a young woman, or in college, or having my baby. I didn't know any. I have no recollection of any of these things. They certainly would have come to our attention because it was so rare. All this does is to confirm that somehow or the other we who are grown may well have escaped what for children now becomes a part of the way in which they are born into this world, that they are exposed to things that, if you are exposed to it when you are older you may get through it, but there has to be a hypothesis. You begin with that. There has to be a hypothesis that something is happening to younger people. Cancer is no longer merely the old person's disease it was when I was a kid. Children get diseases. I am not talking about people at life's end, at the beginning of life. One hypothesis may be that maybe those children wouldn't have lived in the first place. But the fact is that they were born and in elementary school and junior high school they get cancer. When we talk about nitrogen and the other contaminants, we basically, although all of us are exposed, are essentially talking about what we, in order to get the benefits of spending and whatever and the chemicals out of which the entire society is made, have essentially exposed a generation to unheard of diseases at a very young age. As I take Mr. Siglin's suggestion that maybe we all ought to buckle up and understand that it is going to take some more expenses, I would just urge you to bear in mind that we unknowingly, unwittingly may be forcing off diseases onto younger and younger generations that may have been prevented had we been willing to spend a little more money. As I close this hearing with the chairman still being fortunate enough to be voting on the floor, I must offer the apologies of the committee, but particularly apologies for myself, who have taken disproportionate amounts of time on other witnesses, and yes, even on you, and may I thank you very much for your testimony. That was indispensable to this hearing. The hearing is adjourned. [Whereupon, at 6:30 p.m., the subcommittee was adjourned.] [The prepared statements of Hon. Tom Davis and Hon. Kenny Marchant follow:] [GRAPHIC] [TIFF OMITTED] T6013.124 [GRAPHIC] [TIFF OMITTED] T6013.125 [GRAPHIC] [TIFF OMITTED] T6013.126 [GRAPHIC] [TIFF OMITTED] T6013.127 <all>