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. June 18, 1993 :' ',' l!lS4e No. 996 . -./ '~,j ./_l~, WESTERN 1/(p,Fft~((,~ fJ/ <> ,tn-: , 'J \-- STATES W ATER".~"c~=~~!:~;~~~v ~ (tj " i. .L . TIIE WEEKLY NEWSLETfER OF TIIE WESTERN STATES WATER COUNCIL Creekview Plaza, Suite A-201/942 East 7145 So./ Midvale, Uiah 84047 / (801) 561-5300 / FAX (801) 255-%42 editor - Tony Willardson typist - carrie Curvin WATER QUAUTY Safe Drinking Water Act-fleauthorization . Two House committees have approved competing legislation to create a state revolving loan fund (SRF) under the Safe Drinking Water Act (SDWA, WSW #992). The bills are similar in their overall funding authorizations - some $600M for FY94, and $1 Beach for FY95 and FY96, plus one version authorizes an additional $1 B for FY97 - but have a number of other differences. The jurisdictional dispute between two committees requires House leaders to sort out differences between the bills. As part of this. effort, House speaker Thomas Foley (D-WA) requested the views of EPA Administrator Carol Browner on SDWA issues. The result was a reply from Browner to Foley containing an EPA statement of principles concerning the need for an SDWA SRF. . The EPA statement advises that funding of some $600M in FY94, with $1B each for FY95-98, be provided for the SDWA SRF. The SRF funds would be available for a number of purposes to assist in construction or capital improvement projects including the arrangement of guarantees for local bonds or other debt obligations, various loan guarantees, and different types of loans, including some with no interest. Disbursement of funds would be on a letter- of-credit basis, rather than cash. Allocation to states would be made using a formula similar to that used for SDWA Public Water System Supervision state grant funds, with a 1.5% set-aside for Indian tribes and Alaska native villages. One important provision in the EPA statement of principles is a recommendation that states be denied SDWA SRF capitalization grants if they do not have SDWA primacy. Although almost all states have such primacy, some have recently questioned whether to continue to hold it. The EPA . chairman - Dave Kennedy executive director - Craig Bell document notes, 'Providing capitalization grants only to States with primacy would prOVide 'States with a, tremendousincentivetoinaintain'and~dequately fund primacy and:::encourage State legislatures to adopt fee bills and increases to the' States' general appropriations to operate state public water supply system primacy programs.' WATER RESOURCES Water ConservationJWashington Washington has enacted legislation expanding its water conservation law. Since 1989, beginning in the Yakima River Basin only, the state has offered funds to irrigation districts and other public entities to implement conservation measures. . Conserved water becomes a 'trust water right' that is conveyed to the state Department of Ecology to enhance the state's overall effectiveness in water management. In 1991, the program was expanded beyond the Yakima Basin (WSW #887), but was carried out on a limited basis using regional pilot planning areas while the state developed implementing guidelines. The guidelines were adopted in. September 1992. During the recent legislative session, the program and guidelines were applied statewide. The state had solicited suggeStions on designating water resource . inventory areas under the 1991 expansion of the program. These areas will now be high priority for implementing the trust water rights. program throughout the state. Ina related matter, the legislature passed a bill directing the state Department of Ecology, in cooperation with Indian tribes and the Department of Fisheries and Wildlife, to develop, by the end of this year, a statewide list of priorities for evaluating