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. ODIGII; WESTERN ~ STATES WATER TIIE WEEKLY NEWSLETfER OF THE WESTERN STATES WATER COUNCIL Creekview Plaza, Suite A-201/942 East 7145 So./ Midvale, Utah 84047 / (801) 561-5300 / FAX (801) 255-%42 editor - Tony Willardson typist - carrie curvin WATER QUAUTY Appropriations . The House and Senate have passed H.R. 2118, the FY93 Supplemental Appropriations bill. Mhough the House recommended funding, no money lost to EPA's Clean Water Act (CWA) State Revolving Fund (SRF) with the defeat of the President's original stimulus package (WSW #992, 998) was restored in the supplemental appropriations bill (also referred to as the 'streamlined' stimulus package). However, the U,S. Department of Agriculture (USDA) received related funding. Additional appropriations were made to USDA of $3.3M for watershed and flood prevention activities, $35.5M to subsidize additional obligations under the water and sewer facility loan program of the Rural Development Assurance Fund, and $35M for rural water and waste disposal grants. . In their report on the supplemental appropriations bill, the conferees took note of the need for more SRF funding. The conference report explains: 'The... agreement does not include the $280M provided by the House...for wastewater treatment [SRFs] because there was difficulty in finding suitable offsets for these additional funds as well as the severe outlay costs associated with this expenditure for [FY94].' The report continues, 'The conferees recognize the enormous need for water infrastructure activities. The construction of wastewater facilities not only provides environmental protection, but also leads to the creation of thousands of jobs nationwide. It is hoped that during deliberations on the VA, HUD, and Independent Agencies appropriations bill for 1994 additional monies will be available for water infrastructure activities. The conferees will make every effort to provide additional funds during conference on this legislation.' chairman - Dave Kennedy executive director - Craig Bell Clean Water Act-Reauthorizalion Section 602 of S.1114 (to reauthorize the CWA; WSW #997) deals with state certification under CWA Section 401 that activities or projects affecting water quality will not result in violation of state requirements. The bill would amend Section 401 by inserting the following language: 'And that any such activity will comply with water quality standards adopted under Section 303 and allow for the protection, attainment, and maintenance of designated uses included in the standards.' The purpose of this change is to enhance state authority to control the water pollution effects of a number of activities, especially the licensing of hydroelectric power generation facilities. The Federal Power Act (FPA) contains provisions which appear to give states a substantial role in the licensing of hydropower projects. A series of Supreme Court decisions (WSW #836) beginning with the First Iowa case in the 1940's, however, have defined these provisions very narrowly. A recent Washington Supreme Court decision (WSW #987) dealt with the interplay between the narrow state role in hydrolicensing under FPA and the state certification role under CWA Section 401. The court held that the FPA did not 'preempt' the Washington Department of Ecology from including minimum streamflow conditions in a Section 401 certificate issued by the state as applied to a hydropower project licensed by the Federal Energy Regulatory Commission. Thus, the court found that the narrow definition of state authority under the FPA did not prevent state certification of compliance with water quality requirements under CWA Section 401. The language contained in Section 602 of S.1114, if enacted, would make such a result more likely in other states. Although the language is not as broad