Legislative & Regulatory Update

Transcription

1 Legislative & Regulatory Update APWA Stormwater Division Annual Conference September 15, 2014 Erin Wynia, Legislative & Regulatory Issues Manager Sarah Collins, Regulatory Affairs Associate N.C. League of Municipalities

2 Agenda 2014 Political Climate Legislative Issues Regulatory Issues Looking Ahead 2

3 2014 Political Climate

4 2014 General Assembly Still many new faces Senate: 28 members in 1st or 2nd legislative term 17 freshman legislators House: 67 members in 1st or 2nd legislative term 41 freshman legislators Powerful sophomore class Many 2nd-term legislators in committee leadership positions Some new members were sworn in first day of the Short Session to replace various legislators 4

5 2014 General Assembly Session began with a rapid pace; legislators promised a true short session As budget negotiations stalled in July, it became a wait-and-see game as bills were displaced and skeleton sessions held 5

6 End of 2014 General Assembly Various adjournment resolutions proposed and weeks of adjournment speculation. House and Senate formally adjourned sine die August 20 NCLM joined other groups publicly requesting that the Governor call the General Assembly back for an economic incentives special session 6

7 2014 Elections Entire General Assembly up for re-election Outside PAC money likely to play large role in the state s few contested legislative races Redistricting favors majority party by large margins, which are unlikely to change this fall 20 of 50 Senate seats already decided 59 of 120 House seats already decided; another two House seats feature only a Libertarian challenger to a Republican 7

8 2014 General Assembly Cities had friends (in both parties!) Sen. Tom Apodaca HB 1145, HB 150 Sen. Thom Goolsby HB 369 Sen. Floyd McKissick HB 369 Sen. Andrew Brock SB 797, SB 38 Sen. Trudy Wade SB 734, HB 761 Sen. Brent Jackson SB 734 Sen. Chad Barefoot SB 797 Sen. Jerry Tillman SB 105 Sen. Neal Hunt HB 1043 Sen. Bob Rucho HB 1191 Sen. Wesley Meredith HB 773 Sen. Mike Woodard SB 734 8

9 2014 General Assembly Cities had friends (in both parties!) Rep. Phil Shepard HB 1145 Rep. Jeff Collins HB 1195 Rep. Steve Ross HB 1195 Rep. Andy Wells SB 163, SB 734 Rep. Jason Saine SB 797 Rep. Ruth Samuelson SB 729 Rep. Chuck McGrady SB 729, SB 38 Rep. Becky Carney SB 38, HB 1224 Rep. David Lewis SB 403 Rep. Dean Arp SB 744, HB 1043 Rep. Rayne Brown HB 1145 Rep. Harry Warren HB 369 9

10 2014 General Assembly Cities had friends (in both parties!) Rep. Charlie Jeter SB 105 Rep. Winkie Wilkins SB 734 Rep. Tom Murry SB 744 Rep. Chris Millis SB 744 Rep. Mike Hager HB 1224 Rep. Skip Stam HB 1224, HB 369 Rep. Michele Presnell HB 1224 Rep. Bob Steinburg SB

11 Legislative Issues

12 Advocacy Goals Achieved Mopeds: HB 1145 Insurance & Registration Required for Mopeds Pension Spiking: HB 1195 Fiscal Integrity/Pension- Spiking Prevention Reclaimed Water: SB 163 Reclaimed Water as a Source Water 12

13 Other League Victories Backup PSAPs: SB Board/Back-up PSAP Rental Registration (did not move): HB 773 Local Gov ts/bldgs/structures/inspections E-Verify: HB 369 Various Criminal Law Changes Expiration of environmental ordinance preemption on the date the reg reform bill (SB 734) becomes effective/upon Governor s signature. Property Tax Revenue Cap (converted to study): SB 786 Energy Modernization Act Tree Ordinances (did not advance): HB 1191 Authority to Adopt Local Ordinances 13

14 Six omnibus reg reform bills SB 734, ed. 4 (SENATE): passed May 29 Environment & administrative procedure Local government & business SB 38 (HOUSE): passed June 23 Environment SB 493 (HOUSE): passed June 25 Health SB 734, ed. 6 (HOUSE): passed June 25 Local government & business HB 761 (SENATE): passed July 30 Environment & administrative procedure SB 734, ratified (HOUSE + SENATE): passed August 15 Environment & administrative procedure Local government & business 14

15 Regulatory Reforms -Senate Senate took lead, passing SB 734 Regulatory Reform Act of 2014 Senate provisions Local government environment ordinance-making authority Water supply reclassification Fertilizer Isolated wetlands mitigation ratios Jordan Lake buffers/stream piping Rulemaking process reforms Environment program self-audits IBT study W/s system study Development review protocols 15

16 Regulatory Reforms -House House debuted its regulatory reform package in SB Regulatory Reform Act on June 18 Attempted to move bill through two committees and onto the floor that day, but some legislators objected to the process Eventually returned to committee and split into multiple bills, with local government provisions going in SB 734 Regulatory Reform Act of 2014 & environment provisions in SB 38 Amend Environmental Laws

17 Regulatory Reforms -Senate Senate debuted a new bill HB 761 Regulatory Reform Act of 2014 on July 30 Local government-related provisions include: Electronic notice for Guilford and Mecklenburg counties Study of authority granted to local building inspectors Local government-related provisions not included: Definition of gravel Extension of terms of renewable energy leases Senate did not take up its version of HB 761 on the floor 17

18 Regulatory Reforms Passed Both chambers passed a conference report on SB 734 on August 15 Currently awaiting the Governor s signature Includes: o Rule Review o Local government renewable energy lease term o Isolated wetlands o Local government environment ordinance authority o Review of engineering work o Gravel o USPS cluster mailbox units o Minimum design criteria report date o Study use of contaminated property o Permit choice o Enforce floodplain ordinances in ETJ o Hardison amendment clarification o Coastal Stormwater 18

19 Individual stormwater bills that became law in 2014 SB 294 Allow Use of DOT Stormwater BMPs (S.L ) Allows municipal stormwater systems to use standards in the NCDOT BMP manual to fulfill construction requirements for linear transportation projects Request of City of Winston-Salem Projects that could benefit include road widening projects and greenways SB 883 Disapprove EMC Buffer Rule (S.L ) Redirects a 15-year effort by EMC to update State s buffer mitigation rules Directs EMC to adopt language identical to a report issued by a group that included DENR staff and private mitigation banking interests Should allow more mitigation to occur, especially in urban areas 19

20 Individual stormwater bills that became law in 2014 HB 201 Building Reutilization for Economic Dev. Act (S.L ) Relaxes state stormwater regulations Statewide application, but passed to benefit Ashley Furniture project in Davie County Affects how existing development programs in Falls and Jordan watersheds is implemented Affects stormwater controls needed for redevelopment projects MUCH to be sorted out legally future legislation likely HB 573 Stormwater Management Fee Uses (S.L ) Allows counties with a population above 910,000 to use fees collected in a stormwater enterprise for specific flood control purposes State law already allows these fees to be used for flood control purposes minimal effect 20

21 Fertilizer HB 366 N.C. Farm Act of 2014 (S.L ) Includes provision restricting local regulation of fertilizer League responded to agricultural interests concern about local governments trying to restrict nutrients in their jurisdictions Compromise language allows local government regulation for: Water quality purposes, if done pursuant to an agency-approved plan Fire & safety purposes Local governments regulate fertilizer pursuant to stormwater management plans Illicit discharge detection & elimination Good housekeeping/application on government-owned land Ensuring its passage in some form this session, the fertilizer provision included in the Farm Act was a result of the League's work also appeared in: various versions of SB 734 Regulatory Reform Act of 2014, and SB 38 Amend Environmental Laws 21

22 Reclaimed Water S.L Reclaimed Water as a Source Water, expanded the ability of municipalities to recycle reclaimed water to supplement potable public water supplies under limited circumstances. To meet the new law's standards, water systems must treat the combined water to drinking water standards. Reclaimed water is a highly treated wastewater and is safely utilized in other U.S. states and countries to augment existing water supplies; North Carolina has now joined states such as Virginia, Colorado, Texas, Florida and California in allowing this practice. 22

23 Source Water Protection Plans Original bill applied only to "unfiltered" surface water systems One provision in the 58-page technical corrections bill struck the word unfiltered from the statute. All surface water systems will now become subject to this requirement. The planning requirement will take effect after rulemaking by the N.C. Commission for Public Health CPH will develop a template for water systems to use in this new planning mandate. Extent of requirements of N.C. water systems due to this new law will depend upon the rules developed The requirement is a response to the January contamination of the Charleston, W. Va., water supply. 23

24 Ecological Flows HB 1057 DENR Study IBT/EMC Eco Flow Study would task the EMC with further the ecological flows component of the state's hydrologic models, which simulate the flow of all waters in a river basin. When inserted into these models, ecological flow is a percentage of the river's flow set aside to maintain aquatic life. would allow the EMC to create a science advisory board to assist its investigation. allowing the EMC to recommend amendments to the state law that required consideration of ecological flow in the first place, if the EMC determined that the original ecological flow law was infeasible to implement. While the study was underway, the legislation would allow the EMC to continue approving hydrologic models so long as the models did not include ecological flow data. However, this proposed legislation did not pass this session. 24

25 Coal Ash Management Act SB 729 passed on August 21 (awaiting governor s signature) Bans construction/expansion of impoundments, Oct. 1 In January, Duke must test private wells/ replace contaminated drinking water supplies By end of 2015, DENR will classify coal ash sites as high, intermediate, and low-risk High-risk sites must be excavated and placed in a lined landfill by end of 2019; intermediate by end of 2024 Low-risk sites can be capped Establishes Coal Ash Management Commission to prioritize/develop a response plan (Dept. of Public Safety) Other issues of interest: Wastewater spill notification (1000 gallon spill 24 hour reporting requirement included) Groundwater contamination outside compliance boundary requires corrective action 25

26 Tree Ordinances HB 1191 Authority to Adopt Local Ordinances Local officials and concerned citizens flooded legislators after initial proposal in study committee Assurances from legislators in both chambers that idea would not advance this session Agriculture and Forestry Awareness Committee Interim study committee recommended 2014 legislation to remove all local government authority over trees No municipal regulation of the removal, replacement, and preservation of trees on private property within its jurisdiction Requested by N.C. Homebuilders Association in other interim study committee meetings Brock (in Charlotte Observer, May 2): Issue is whether cities have overstepped their bounds or can come around to something reasonable where cities are not fining churches $4,700 for trimming their trees 26

27 Infrastructure Needs Study New provision in HB 1043 Prequalification Update, signed into law late June Panel of legislators and public members, including NCLM, would: Examine the State s building and infrastructure needs, including new repairs, renovations, expansion, and new construction Assess w/s needs of cities and counties Prioritize all infrastructure needs, emphasizing projects that met public safety and economic development goals Goal: lay the groundwork for future funding requests to meet these unmet capital projects NCLM advocacy goal prioritizes a statewide infrastructure capital needs funding program 27

28 Senate Budget Senate took lead, passing SB 744 Appropriations Act of 2014 Senate provisions include: To access water and wastewater infrastructure funding programs, local w/s systems must certify that no funds have been transferred from the enterprise fund to subsidize the General Fund NCLM proposed edits to original language that were accepted Powell Bill funds for FY allocated at $146.3 million (increase due to revised motor fuel tax collection projections) Additional $73.7 million to Strategic Transportation Investments program To pay for teacher raises, took fund balances and interest from following funds: SRF funds Clean Water Management Trust Fund Parks & Recreation Trust Fund Main Street program 28

29 House Budget House responded with several changes to the Senate s proposal House provisions include: Changes to Medicaid and teacher pay Replaces existing historic rehabilitation tax credits, which are currently set to expire, with additional requirements Film tax credit, which is also set to expire at the end of the year, was replaced by a grant program that has a current allocation of $5 No changes to Powell Bill funding versus the Senate plan Strategic Transportation Investments allocation $5.7 million less than Senate plan Sets aside $1 million for the Clean Water Management Trust Fund on a one-time basis Transfers ABC Commission to Department of Public Safety Earned interest from the Clean Water Management Trust Fund and Parks and Recreation Trust Fund would not revert to the state General Fund, unlike Senate plan 29

30 Privilege License Tax Reform contained in HB 1050 Omnibus Tax Law Changes Signed into law late May Full package debated for less than two weeks League members prioritized reform of this tax and had worked with legislative finance leadership for months on various proposals This tax is one of two municipal-controlled revenue streams Sets up fiscal cliff for city finances Allows cities to continue collecting tax through July 1, 2015 Authority to levy tax removed effective July 1, 2015; would cost cities at least $62 million No replacement revenue in bill, though legislators committed to the League and made public statements that they would find solutions next session 30

31 Property Tax Revenue Cap Cap on annual property tax revenue increase at 8% Included in Energy Modernization Act proposed May 8 by Joint Legislative Energy Policy Oversight Committee No prior discussion of proposal during previous meetings Three minutes of debate before passage Would apply to all property taxes levied by local governments in all cities and counties statewide Unprecedented no other limitations on property tax growth in state statutes Would limit local officials ability to provide increase in service commensurate with increase in growth/development Following a flood of contacts from local elected officials, legislators converted this proposal to a study Conducted by Joint Legislative Energy Policy Oversight Committee after session 31

32 Historic Rehabilitation Tax Credits After extensive debate in session s final days, various bills had different historic rehab tax credit positions SB 763 Revenue Laws Tech. Changes and Other Changes contains extension of credits similar to Governor s proposal HB 1224 Local Sales Tax Options/Econ. Devpt. Changes contains a study of the tax credits and language allowing local governments to give historic rehab grants Unless the House or Senate addresses the credit during a special session, the credits will expire on Jan. 1 32

33 Regulatory Issues

34 Consolidated Buffer Rules S.L redirected a 15-year effort by EMC to update State s buffer mitigation rules o Directs EMC to adopt language identical to a report issued by a group that included DENR staff and private mitigation banking interests o Should allow more mitigation to occur, especially in urban areas EMC expressed displeasure with the fact that they were not informed that a stakeholder group was working on rules for which they were responsible o Voted to proceed to public comment for the temporary rulemaking DWR said the EMC would not be required to adopt the stakeholder report for its permanent rulemaking 34

35 Nutrient BMP Approval Process In July, DENR released a guidance outlining a proposed approval process to establish new alternative nutrient load reduction measures NSAB oversaw development of the approval process Could give municipalities more flexibility in complying with nutrient regulations Additional tools to meet retrofit targets would ease cities' ability to comply existing development regulations. If devices capture excess nutrients beyond regulatory requirements, they could be eligible for trading The League submitted comments Final guidelines due this month 35

36 Nutrient Criteria Development Plan NCDP is a work plan for DWR regarding nutrients DENR submitted the Plan based on stakeholder involvement to EPA in March: Prioritized site-specific nutrient criteria Three water bodies in plan: 1) High Rock Lake 2) Albemarle Pamlico Sound 3) Middle Cape Fear DENR submitted an updated draft of the Plan to EPA in June Proposed development of statewide numeric nutrient criteria for certain bodies of water opposed by the League Changes to Scientific Advisory Council Increase in Division of Water Resources (DWR) staffing levels League requested adding a definition of numeric nutrient criteriathat includes causal and response variables expressed as narrative standards EPA approved that version of the NCDP on June 27 36

37 NCDP -Scientific Advisory Council Nutrient Criteria Development Plan requires the establishment of a Scientific Advisory Council (SAC) Established to assist the DWR and stakeholder groups with the development of nutrient criteria Members will be individuals with expertise in areas related specifically to water quality, nutrient response variables, nutrient management, and point and non-point source nutrient abatement The SAC will be responsible for: Reviewing the quality and relevance of nutrient data. Identifying data gaps Recommending additional monitoring and data collection. Helping develop the management approaches Reviewing proposed nutrient criteria, including revised chlorophyll-a criteria for new (not existing) nutrient management strategies. Advising the DWR on social and economic issues pertaining to nutrient management and implementation Deadline November 2014/should see charter soon 37

38 Review of Rules Process Mandated by HB 74 Regulatory Reform Act of 2013 Biggest regulatory reform in years Will force state agencies to re-adopt nearly every rule in the N.C. Administrative Code within 10 years The EMC voted in March To send out for public comment the categorization of 375 of the state s surface water and wetland rules (2B, 2H, 2T, 2U) Categorized them all as necessary with substantive public interest" Comment period regarding those categorizations ended May 21 The EMC will have to readopt each necessary with substantive public interest rule 38

39 Oil & Gas Extraction Mining & Energy Commission MEC is currently making rules related to on-shore oil & gas extraction; topics of interest to local governments include: Baseline testing of groundwater and surface water supplies Water management Waste management Setbacks Voted on whole rule package at June 5/6 meeting Accepting public comments until Sept. 15, 2014 Public hearings set for: Raleigh -Aug 20, Sanford Aug 22, Reidsville Aug 25, Cullowhee September 12 Environmental Management Commission EMC voted in May to proceed to public hearings regarding stormwater rules related to hydraulic fracturing 39

40 Oil & Gas Extraction Energy Modernization Act: SB 786 Energy Modernization Actsigned into law in early June Reiterates that the disposal of waste from oil and gas exploration by injection into subsurface or ground waters by means of wells is prohibited in the state Invalidates local ordinances that prohibit or have the effect of prohibiting hydraulic fracturing activities Mirrors current statutory provisions that preempt local governments' regulation of hazardous waste facilities Provides that a local zoning and land-use ordinance is presumed valid to the extent it is generally applicable to all development Unless there is a finding of fact by the MEC to the contrary Study capping local government property tax revenues 40

41 303(d) List Listing of Impaired Waters that EPA requires DENR to revise every two years Several local governments submitted comments on individual listings in their jurisdiction (DWR has replied) EPA has its own authority to list streams & override State s list EPA announced its plan to disapprove part of the state's list of impaired waters, which would result in adding 52 waters back to the 303(d) impaired waters list Explaining that EPA favored a so-called one in three listing methodology for toxic parameters such as metals over new 90% confidence limit methodology Most new listings were for copper Comments due October 14(?) 41

42 MDC Team & Fast-Track Permitting Minimum Design Criteria Team (MDC) is a workgroup that will develop the minimum "criteria," or standards, for stormwater control devices This stakeholder group was a result of 2013 legislation, which mandated the creation of minimum design criteria (MDC) for certain stormwater devices in an effort to speed up development plan approvals. Began meeting in March Monthly meetings Includes representatives from NCLM, SWANC Will provide recommendations to the EMC, which must adopt a rule regarding this fast-track permitting process by July 1,

43 Triennial Review NCLM Municipal Advocacy Goal: flexibility when implementing programs guided by the water quality standards set under the triennial review Occurs every three years N.C. is at least five years behind Standards affect limits in wastewater discharge permits The EMC voted in May to allow DWR to proceed to public hearings regarding the proposed amendments to 15A NCAC 02B water quality standards regulations and the accompanying fiscal note Noticed for comment in the NC RegisterJune 16 Public hearings were held in Raleigh and Statesville in July League submitted written comments 43

44 Federal Issues: WOTUS Clean Water Act Proposed Jurisdictional Rule EPA and the U.S. Army Corps of Engineers proposed a rule regarding the jurisdictional reach of the Clean Water Act (CWA) Hoped to clarify which wetlands and smaller waters were considered "waters of the United States" (WOTUS) and therefore "jurisdictional," or subject to federal permitting and other regulatory actions The jurisdiction issue has long been in dispute and uncertain because of competing U.S. Supreme Court tests and conflicting EPA guidance Proposed rule was published in the Federal Registeron April 21 Public comment period will close on October 20 44

45 Looking Ahead Beyond the 2014 Short Session

46 Looking Ahead Key Issues Privilege license: Continue discussions with your legislators regarding the privilege license fiscal cliff Legislators have promised to find a replacement revenue Control of municipal utilities Interim study committee will be examining transfers between utility and general funds, among other issues Transportation funding Likely a conversation coming regarding generating increased revenues for transportation projects in the future 46

47 Looking Ahead Stormwater Gravel Issues Stormwater/redevelopment outside Jordan & Falls Plan review Development review generally 47

48 Bill tracking Provides NCLM staff summaries of key legislation, with links to NCLM bulletins and memos for more information Look up bills by number or topic View the priority of the issue for the League See up-to-date information on each bill, pulled from the N.C. General Assembly website 48

49 NCLM Updates Sign up for the League s weekly publications by ing LeagueLINC@nclm.org Sign up for the League s monthly environmental publication, EcoLINC, by ing ecolinc@nclm.org 49

50 Questions and Comments? Erin Wynia Legislative & Regulatory Issues Manager O: M: Sarah Collins Regulatory Affairs Associate O: M: