[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] THE PRESIDENT'S FISCAL YEAR 2014 BUDGET: ADMINISTRATION PRIORITIES FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY ======================================================================= (113-19) HEARING BEFORE THE SUBCOMMITTEE ON WATER RESOURCES AND ENVIRONMENT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ MAY 22, 2013 __________ Printed for the use of the Committee on Transportation and Infrastructure Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation U.S. GOVERNMENT PRINTING OFFICE 81-151 WASHINGTON : 2014 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska NICK J. RAHALL, II, West Virginia THOMAS E. PETRI, Wisconsin PETER A. DeFAZIO, Oregon HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, Jr., Tennessee, Columbia Vice Chair JERROLD NADLER, New York JOHN L. MICA, Florida CORRINE BROWN, Florida FRANK A. LoBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas GARY G. MILLER, California ELIJAH E. CUMMINGS, Maryland SAM GRAVES, Missouri RICK LARSEN, Washington SHELLEY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts CANDICE S. MILLER, Michigan TIMOTHY H. BISHOP, New York DUNCAN HUNTER, California MICHAEL H. MICHAUD, Maine ERIC A. ``RICK'' CRAWFORD, Arkansas GRACE F. NAPOLITANO, California LOU BARLETTA, Pennsylvania DANIEL LIPINSKI, Illinois BLAKE FARENTHOLD, Texas TIMOTHY J. WALZ, Minnesota LARRY BUCSHON, Indiana STEVE COHEN, Tennessee BOB GIBBS, Ohio ALBIO SIRES, New Jersey PATRICK MEEHAN, Pennsylvania DONNA F. EDWARDS, Maryland RICHARD L. HANNA, New York JOHN GARAMENDI, California DANIEL WEBSTER, Florida ANDRE CARSON, Indiana STEVE SOUTHERLAND, II, Florida JANICE HAHN, California JEFF DENHAM, California RICHARD M. NOLAN, Minnesota REID J. RIBBLE, Wisconsin ANN KIRKPATRICK, Arizona THOMAS MASSIE, Kentucky DINA TITUS, Nevada STEVE DAINES, Montana SEAN PATRICK MALONEY, New York TOM RICE, South Carolina ELIZABETH H. ESTY, Connecticut MARKWAYNE MULLIN, Oklahoma LOIS FRANKEL, Florida ROGER WILLIAMS, Texas CHERI BUSTOS, Illinois TREY RADEL, Florida MARK MEADOWS, North Carolina SCOTT PERRY, Pennsylvania RODNEY DAVIS, Illinois VACANCY (ii) Subcommittee on Water Resources and Environment BOB GIBBS, Ohio, Chairman DON YOUNG, Alaska TIMOTHY H. BISHOP, New York GARY G. MILLER, California DONNA F. EDWARDS, Maryland SHELLEY MOORE CAPITO, West Virginia JOHN GARAMENDI, California CANDICE S. MILLER, Michigan ANN KIRKPATRICK, Arizona ERIC A. ``RICK'' CRAWFORD, LOIS FRANKEL, Florida Arkansas, ELEANOR HOLMES NORTON, District of Vice Chair Columbia RICHARD L. HANNA, New York EDDIE BERNICE JOHNSON, Texas DANIEL WEBSTER, Florida GRACE F. NAPOLITANO, California JEFF DENHAM, California ELIZABETH H. ESTY, Connecticut REID J. RIBBLE, Wisconsin MICHAEL H. MICHAUD, Maine THOMAS MASSIE, Kentucky RICHARD M. NOLAN, Minnesota STEVE DAINES, Montana JANICE HAHN, California TOM RICE, South Carolina SEAN PATRICK MALONEY, New York MARKWAYNE MULLIN, Oklahoma NICK J. RAHALL, II, West Virginia MARK MEADOWS, North Carolina (Ex Officio) RODNEY DAVIS, Illinois VACANCY BILL SHUSTER, Pennsylvania (Ex Officio) (iii) CONTENTS Page Summary of Subject Matter........................................ vi TESTIMONY Nancy K. Stoner, Acting Assistant Administrator, Office of Water, U.S. Environmental Protection Agency........................... 5 Mathy Stanislaus, Assistant Administrator, Office of Solid Waste and Emergency Response, U.S. Environmental Protection Agency... 5 PREPARED STATEMENTS SUBMITTED BY WITNESSES Nancy K. Stoner.................................................. 32 Mathy Stanislaus................................................. 39 SUBMISSIONS FOR THE RECORD Hon. Timothy H. Bishop, a Representative in Congress from the State of New York, request to submit the following report: U.S. Government Accountability Office, Funding for 10 States' Programs Supported by Four Environmental Protection Agency Categorical Grants, GAO-13-504R (May 6, 2013).................. 58 Hon. Bob Gibbs, a Representative in Congress from the State of Ohio, request to submit a letter that he and 16 other Members of Congress signed and sent to Hon. Bob Perciasepe, Acting Administrator, U.S. Environmental Protection Agency, that expressed concern over EPA's release of farmers' private information to environmental groups, April 17, 2013............ 11 U.S. Environmental Protection Agency, responses to questions for the record from the following Representatives: Hon. Bob Gibbs, of Ohio...................................... 49 Hon. Duncan Hunter, of California............................ 52 Hon. Don Young, of Alaska.................................... 55 Hon. Eric A. ``Rick'' Crawford, of Arkansas.................. 57 [GRAPHIC] [TIFF OMITTED] 81151.001 [GRAPHIC] [TIFF OMITTED] 81151.002 [GRAPHIC] [TIFF OMITTED] 81151.003 [GRAPHIC] [TIFF OMITTED] 81151.004 [GRAPHIC] [TIFF OMITTED] 81151.005 [GRAPHIC] [TIFF OMITTED] 81151.006 [GRAPHIC] [TIFF OMITTED] 81151.007 [GRAPHIC] [TIFF OMITTED] 81151.008 [GRAPHIC] [TIFF OMITTED] 81151.009 THE PRESIDENT'S FISCAL YEAR 2014 BUDGET: ADMINISTRATION PRIORITIES FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY ---------- WEDNESDAY, MAY 22, 2013 House of Representatives, Subcommittee on Water Resources and Environment, Committee on Transportation and Infrastructure, Washington, DC. The subcommittee met, pursuant to call, at 2:25 p.m., in Room 2167, Rayburn House Office Building, Hon. Bob Gibbs (Chairman of the subcommittee) presiding. Mr. Gibbs. The Subcommittee on Water Resources and Environment of the Committee on Transportation and Infrastructure will come to order. Today, we are having a hearing on ``The President's Fiscal Year 2014 Budget: Administration Priorities for the U.S. Environmental Protection Agency.'' We have two witnesses on our first and only panel. First, I want to just do a unanimous consent for any followup for the records that we may have. Seeing no objection, so ordered for that. And I will start with my opening statement. First of all, I would like to thank everybody for coming to the hearing today. When Congress wrote the Clean Water Act and other Federal environmental statutes some 40 years ago, it envisioned the Federal Government and the States would be equal partners in solving the Nation's environmental problems. For many years, that Federal-State partnership has worked well. However, in the past few years, we have seen a substantial change in the approach taken by the Environmental Protection Agency that is now serving to undermine the balance of the Federal-State partnership that has long existed. EPA is now insisting on imposing its Federal will on States, local government, and the private regulatory community with a heavy- handed, Federal, top-down, one-size-fits-all policy, regulatory approach that is taking away the flexibility they need to address their environmental issues. EPA is aggressively moving forward on several regulatory fronts simultaneously, with the result that States and local governments all across the Nation, as well as the private regulating community, are facing increasing regulatory enforcement and financial pressures to address a multitude of burdensome regulatory requirements that recently have become EPA priorities. There has been an exponential increase in regulations coming out of the EPA related to this subcommittee's jurisdiction. These include more stringent and widespread regulation of stormwater discharges, nutrients, and other pollutants, which could lead to many communities having to install and operate, at great expense, state-of-the-art treatment, removal, and prevention technologies. I am particularly concerned about the EPA's use of so- called guidance as a means of short-circuiting the process for changing Agency policy without following a proper transparent and unbiased rulemaking process. Much of this so-called guidance amounts to being de facto rules instead of advisory guidelines. Many of these regulatory efforts are based on questionable science and questionable authority under the law. Many of the efforts stand to substantially increase the regulatory burdens for States and local governments, as well as businesses, especially small businesses. All of these initiatives are piling up additional layers of regulatory requirements and economic burdens that our communities are having to somehow deal with. This is making a mockery of the administration's regulatory review initiative to reduce regulatory burdens in our country. A large portion of these regulatory mandates are going unfunded by the Federal Government, with the result that many local communities and private entities are now increasingly struggling with how to pay for complying with these mandates. EPA's aggressive actions have created financial pressures and regulatory uncertainty for States, local governments, and the regulator community and have a chilling effect on the Nation's economy and job creation. The EPA budget put forth from the administration for fiscal year 2014 does nothing to alleviate my concerns. While the EPA is imposing more unfunded regulatory burdens on communities, businesses, and citizens, the administration at the same time is calling for a reduction in spending for many of the programs that assist communities in their efforts to come into compliance with these regulations. While the administration is willing to increase enforcement spending, it is cutting spending for compliance assistance efforts. And while the administration is willing to allow the EPA to continue imposing regulatory mandates, the administration is willing to cut financial assistance to our communities through the Clean Water SRF and other programs needed to help pay for complying with these mandates. Hence, what we have here is a Federal agency that will add to the burden of rules and regulations and reduce programs to help folks come into compliance but will also put more boots on the ground to track down those who cannot come into compliance, with little or no benefit to the environment. And what we have is an agency that has a reckless disregard for the privacy interests of both individual citizens and businesses. The EPA has amply demonstrated this recently when it leaked personal and confidential business information related to farmers not just once but twice. This is Government at its worst. I want clean water as much as anyone, but I recognize that we have to have a strong economy so we can be able to afford to invest in new programs that regulations require. Today is not the day to put more burdens on the American people. We need to make significant progress in creating long-term jobs and a stronger economy before we can tolerate more expensive regulations. At this time, I would like to recognize Mr. Bishop for any remarks he may have. Mr. Bishop. Thank you very much, Mr. Chairman. I appreciate you holding this hearing on the Environmental Protection Agency's fiscal year 2014 budget request. Very few Federal agencies are as praised or as vilified as the EPA. Depending on your point of view, this agency, which was created by a Republican administration and charged by Congress with safeguarding the health of the public and the environment, is often portrayed either as the last safeguard of the natural environment or an overzealous impediment to unfettered industrial growth. I suppose the reality is somewhere in the middle, where this agency takes concerted effort in reaching a sustainable balance between the health of the public and the health of the environment and the health of the economy. I have long made the case that you do not have to choose between economic growth and protection of public health and the environment. In my congressional district along the eastern tip of Long Island, the health of the economy and the health of the environment are one and the same. People and businesses are drawn to my district when the quality of the environment improves, whether through visits to our Long Island beaches or through supporting a robust fishing industry. Yet when the overall health of the Long Island environment declines, so, too, does the health of our local economy. I hope we can agree on the need to balance healthy economic growth and protecting the health of the public and the environment. Unfortunately, ensuring this careful balance will be more difficult now that the EPA must face the budgetary cuts dictated by the recently passed Republican budget. Just yesterday, the House Appropriations Committee released its 302(b) allocation for EPA's appropriations bill that mandated an 18-percent cut below the fiscal year 2013 appropriated levels. And the slide shows these cuts relative to fiscal 2013. The number is about 20 percent below the President's request for the Agency for fiscal year 2014 and about 14 percent below current sequestered funding levels. An 18-percent cut to EPA's budget will result in over $1.4 billion less for the Agency for fiscal year 2014. To put this in perspective, this would decrease the EPA's overall budget to the actual level it received in fiscal year 1997, not reflecting adjustments for inflation. But it gets worse. Over the remaining years of the House Republican budget, the EPA would face additional annual cuts ranging between 12 to 16 percent below the fiscal year 2013 CBO budget baseline. It is without question that withholding resources from EPA will have an impact on the Agency's ability to carry out its statutory obligations. As the Agency witnesses will later testify, it has had to prioritize where to place its declining resources and has had to make tough choices in not funding programs and policies that are important to our businesses, our industries, and our communities. For example, as we discussed in our April budget hearing related to the Corps of Engineers, a significant number of businesses and industries petitioned Federal regulatory agencies for Clean Water Act permits. However, under the Republican budget and the proposed appropriations level, both the regulatory office of the Corps and the permits division of the EPA would face potentially significant budget cuts. As a result, we should expect that Clean Water Act permit review times will take longer as a result of underfunded staffs. Similarly, if the Republican budget discretionary cuts are implemented uniformly, we should expect continued cuts to other programs with widespread support from our communities, such as the Clean Water and Drinking Water State Revolving Funds, the Superfund cleanup program, and the Brownfields remediation program. In each example, our communities can point to specific projects that, if implemented, would improve the overall health of the community and protection of the environment. However, these projects continue to languish for lack of available funding. I have heard others say that cutting the budget of EPA will not have an adverse impact on the environment because any decreases in Federal protection of the environment will be more than made up for by individual States. However, a report that I recently received from the Government Accountability Office reveals that quite the opposite is often true. For example, GAO found that cuts to Federal grants that support State programs, such as section 106 of the Clean Water Act, can have equal adverse impacts on State environmental program implementation and are especially problematic in those States where local budgetary challenges are even more pronounced than the Nation's. In specific examples, GAO identified several States where cuts to the Federal environmental grant programs will result in reductions to State environmental staff, cutting less critical programs, and increasing State fees. State officials noted that the effect from these cuts will include additional State permitting backlogs, decreased capacity to conduct permitting and monitoring activities, and the loss of compliance outreach and technical assistance activities. Mr. Chairman, I ask unanimous consent to make this GAO report part of today's hearing. Mr. Gibbs. So ordered. [The report entitled ``Funding for 10 States' Programs Supported by Four Environmental Protection Agency Categorical Grants,'' can be found on page 58.] Mr. Bishop. Thank you, Mr. Chairman. In conclusion, Mr. Chairman, it seems that we are at a crossroads on finding the proper balance in protecting the health of our communities, our environment, and our local economies. One path would place fiscal austerity over all other priorities and would have a significant and adverse impact on our communities, our local economies, and our industries, and place at risk the improvements we have made over the decades in protecting public health and the environment. The other path would call for tough choices but would recognize that wise investments in our Nation's infrastructure and our communities will have lasting rewards. I welcome our witnesses here this afternoon, and I look forward to their testimony. I yield back, Mr. Chairman. Thank you. Mr. Gibbs. OK. At this time, I want to welcome our two witnesses. Our first witness is Ms. Nancy Stoner. She is the Acting Assistant Administrator, Office of Water, the United States Environmental Protection Agency. And our second witness is Mr. Mathy Stanislaus, Assistant Administrator of the Office of Solid Waste and Emergency Response, United States Environmental Protection Agency. At this time, Ms. Stoner, the floor is yours. Welcome. TESTIMONY OF NANCY K. STONER, ACTING ASSISTANT ADMINISTRATOR, OFFICE OF WATER, U.S. ENVIRONMENTAL PROTECTION AGENCY; AND MATHY STANISLAUS, ASSISTANT ADMINISTRATOR, OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE, U.S. ENVIRONMENTAL PROTECTION AGENCY Ms. Stoner. Good afternoon, Chairman Gibbs, Ranking Member Bishop, and members of the subcommittee. I am Nancy Stoner. I am the Acting Assistant Administrator for the Office of Water at the U.S. EPA. Thank you for the opportunity to speak with you today about the President's fiscal year 2014 budget request for EPA's National Water Program. The President's request reflects the EPA's ongoing efforts to protect the Nation's clean water and identify opportunities for savings in these challenging economic times. The requested level of $3.3 billion allows the National Water Program to continue to spur communities, improve infrastructure, drive innovation, spur technology, increase sustainability, and strengthen partnerships with States, tribes, and local governments. One of the EPA's highest priorities is supporting communities in meeting their clean water and drinking water goals. One way we do this is through EPA's Clean Water and Drinking Water State Revolving Funds, or SRFs. These funds provide critical funding to States and local entities to improve wastewater and drinking water infrastructure and reduce water pollution. The President's fiscal year 2014 budget request includes $1.095 billion for the Clean Water SRF and $817 million for the Drinking Water SRF. This funding will enable States and tribes to begin approximately 450 clean water and approximately 370 drinking water projects nationally. The President's request, when combined with enacted appropriations, including the American Recovery and Reinvestment Act, totals approximately $20 billion invested by the Federal Government in the SRFs over the last 6 years. The EPA is also working with municipalities across the country to expand and institutionalize the use of integrated planning that considers a full range of infrastructure alternatives, including green infrastructure, so that priority investments are made first and at the lowest lifecycle cost. Despite the fiscal challenges we face, supporting our State and tribal partners, the primary implementers of environmental programs, remains a priority for EPA. Funding for States and tribes through the State and Tribal Assistance Grants account, or STAG, is once again the largest percentage of the EPA's budget request, at nearly 40 percent in 2014. Total National Water Program categorical grant funding for the fiscal year 2014 budget request is $558.9 million, a $14.9 million increase from the fiscal year 2012 enacted level. The fiscal year 2014 request includes $258.7 million for water pollution control grants to States, tribes, and interstate agencies, an increase of $20 million over fiscal year 2012 levels. In fiscal year 2014, the EPA will designate $15 million of this increase for States to strengthen their nutrient management efforts. This will help States tackle nutrient pollution, which has caused serious environmental and human health issues while harming the economy. These additional funds will help ensure the effectiveness of State environmental programs and support economic growth. Finally, the President's budget also requests continued funding for critical regional restoration and community programs in which the EPA works in close coordination with States and other stakeholders. These include programs working to restore the Chesapeake Bay, the Great Lakes, and America's urban waters. Thank you, Chairman Gibbs, Ranking Member Bishop, and members of the subcommittee, for this opportunity to discuss the President's fiscal year 2014 budget request for EPA's National Water Program. The President's budget reflects the EPA's ongoing efforts to identify potential savings while continuing our commitment to the core mission of sustaining water quality, public health, and our economy. We look forward to continuing our work with the subcommittee to ensure clean and safe water for all Americans. I will be happy to answer any questions you may have. Mr. Gibbs. Thank you. Mr. Stanislaus, the floor is yours. Welcome. Mr. Stanislaus. Good afternoon, Chairman Gibbs, Ranking Member Bishop, and members of the subcommittee. I am Mathy Stanislaus, Assistant Administrator for the Office of Solid Waste and Emergency Response at the United States Environmental Protection Agency. Thank you for the opportunity to appear today to discuss EPA's proposed budget for OSWER's programs falling under the subcommittee's jurisdiction. The President's fiscal year 2014 budget demonstrates that we can make critical investments to strengthen the middle class, create jobs, and grow the economy, while continuing to cut the deficit in a balanced way. The President's budget reinforces our firm commitment to keep America's communities clean and healthy, while also taking into consideration the difficult fiscal situation facing State, local, and tribal programs. To clean up our communities, the President is proposing investments that clean up contamination and promote economic development and job creation. The President's fiscal year 2014 budget proposes $156.3 million for OSWER's Brownfields program to support State and tribal cleanup programs and to support planning, cleanup, job training, and redevelopment of brownfields properties, especially in underserved and disadvantaged communities. EPA's Brownfields program use this funding to successfully leverage economic investment. On average, nearly $18 is leveraged in private and public funding for every EPA dollar expended. And more than 85,000 jobs have been leveraged through brownfields project funding since the inception of the Brownfields program. Another effort to help turn formerly contaminated sites into community assets and provide economic development and job creation opportunities is our RE-Powering America's Land Initiative, which was recently recognized by Harvard's Kennedy School as one of the top 25 innovations in the American Government. This is an initiative to work with energy developers and financiers to site renewable energy on contaminated properties. This has resulted in the installation of 250 megawatts of installed capacity, which can power approximately 35,000 homes across the United States. The budget also requests $1.18 billion for Superfund cleanup efforts across the country, which represents a reduction from fiscal year 2012 enacted levels and reflects the hard budget choices that are being made. Superfund removal and homeland security program funding levels are maintained, with focused reductions associated with long-term remediation in the Superfund remedial program. The value and benefit of Superfund resources are significant. Academic research published in the American Economic Review found Superfund cleanups reduced the incidence of congenital abnormalities by roughly 20 to 25 percent for those living within 5,000 meters of a site. And a study completed by researchers at Duke University and the University of Pittsburgh found that the deletion of sites from the national priority list of Superfund sites significantly raises the value of owner-occupied housing within 3 miles of a site by approximately 18.6 percent to 24.5 percent. A reduction in the Superfund remedial program will result in only a limited number of new EPA-lead construction project starts in fiscal year 2014. EPA will balance its Superfund remedial pipeline while focusing on the completion of ongoing projects rather than new starts. The cumulative effect of funding reductions in the recent years will potentially delay construction work at approximately 40 to 45 new construction projects by the end of fiscal year 2014. Notwithstanding the constraints on the appropriated funding levels, we have been particularly successful in leveraging cleanup funding through the use of responsible party settlements to establish site-specific special accounts. Through the end of fiscal year 2012, EPA has collected more than $4 billion, including interest, in more than 1,000 site- specific special accounts. Of this amount, EPA has disbursed or obligated more than $2.5 billion for site response actions and developed a multiyear plan for nearly 100 percent of the remaining funds in the special accounts available. In total, through fiscal year 2012, EPA has secured more than $37 billion in responsible- party commitments for site cleanup and reimbursement of past costs. The Superfund removal and emergency response programs conducted or provided oversight for 428 EPA-led and responsible-party cleanup actions in fiscal year 2012. The fiscal year 2014 target for EPA-led removal actions is 170 and is the target for responsible-party removal actions, as well. EPA's emergency response programs will continue to maintain capability to respond to imminent threats to human health, including incidents of national significance. EPA's oil spill program is designed to protect inland waterways through oil spill prevention, preparedness, and enforcement activities associated with more than 600,000 nontransportation-related oil storage facilities that EPA regulates. There are approximately 20,000 oil spills reported to the Federal Government on a yearly basis. Recognizing the importance that this sector has brought to our economy and to our environment, the fiscal year 2014 budget requests a $2.5 million increase for OSWER's oil spill program, which would fund efforts to broaden and expand prevention and preparedness activities, particularly with respect to the inspection of high-risk facilities and the development and implementation of a third-party audit program. Thank you, Mr. Chairman, and I look forward to your questions. Mr. Gibbs. Thank you. I will yield myself 5 minutes for the first questions. Ms. Stoner, I am really concerned about the EPA's release, twice now, of animal livestock farmers around the country, I think about 18,000 of them, of their private emails, their private information, contact information, to environmental groups such as Earth Justice and the Natural Resources Defense Council and others. And I know that the EPA has requested that the information be sent back, that your agency has admitted they made a mistake. I sent a letter, along with 16 other congressmen here, earlier in April requesting what your agency is doing to make sure this doesn't happen again. Of course, after I sent the letter, it happened again. And I haven't had a response, we haven't had a response back to the letter. But, also, in the letter, we requested that a full investigation be held and people held accountable. Because, you know, these livestock farmers have to have trust in your agency with this information. And this could really be dangerous to their operations and their personal security and the security of their operations, because some of these groups sometimes are radicalized. And that is a concern. So my first question is, you know, what are you doing about that to make sure it doesn't happen again? And are you holding an investigation? And will there be people held accountable? Ms. Stoner. Thank you, Mr. Chairman. I appreciate the opportunity to discuss this issue with you. As you know, what did happen is that the Agency released information that we believed at the time was publicly available information. We had asked States only for publicly available information. Under the FOIA, all requesters are treated equally, in terms of the data being requested to them. And we did release that information. And we believed, upon careful scrutiny of the information, that there was some information in there that there were privacy concerns associated with. We have been in discussions with the agricultural community ever since then about that and have made redactions to that release to address those privacy concerns that they raised and that we take very seriously. We also requested the information back and have received it. We are continuing to work to make sure that we have very thorough, proper FOIA training for everyone in the Office of Water, including on privacy issues like those that you asked about today, and have set up a regular group to meet with the agricultural community to discuss the data and how we should move forward together. Mr. Gibbs. You said you asked for the information back? Ms. Stoner. That is correct. Mr. Gibbs. OK. That is a little preposterous. I am sure that this information was probably sent out, copies were made, probably sent out to other organizations. Just be aware of that, that there might be instances of concerns. But you are looking into it, are you actually doing a full investigation to make sure your personnel will have FOIA training, but I think it goes far beyond training. Is anybody being held accountable? Are there going to be any disciplinary actions or anything like that? Ms. Stoner. We believe we have dealt appropriately with this specific incident at issue, at this point. And we have redacted the information that we believe to be appropriate to be redacted at this time and have received back the earlier information. So we will be looking prospectively---- Mr. Gibbs. What did you do to handle it? You say you believe you handled it appropriately. What did you do? Ms. Stoner. Very carefully reviewed all of that information, discussed it with the agricultural stakeholders, among others---- Mr. Gibbs. Agricultural stakeholders. How about the people who work for you that disseminated that information? Ms. Stoner. Absolutely. We have had many discussions about that to ensure that the concerns that were raised by the agricultural stakeholders were ones that our staff is very cognizant of. And we will be ensuring, moving forward, that we take those types of concerns into account. Mr. Gibbs. I think you should do as much as you can, because it is obvious what is going on in some other agencies. And there is a real lack of public trust and confidence in our Government right now, and things like this make people feel uneasy. And it can be, like I said, a very dangerous situation for those producers out there. Ms. Stoner. Yes. The public trust is very important to us, and we will be making sure that we are treating everyone fairly at EPA under the FOIA, as we are required to do. Mr. Gibbs. And along those lines, also came up the issue about some of the Freedom of Information requests, that I saw some reports that some groups are being charged for those requests and some groups aren't. Is that a practice that the EPA is doing? Ms. Stoner. Again, we have policies under the FOIA about when to grant a fee waiver. And that will be part of the training, to ensure that everyone is fully briefed on those policies to make sure, again, that we treat everyone fairly. Mr. Gibbs. OK. Quickly--and my time is up, but I want to follow through on this. What are those policies to make sure that everybody is treated fairly? I mean, if some groups come in and ask for a Freedom of Information request and you deem it that is in the public interest, will you still charge a fee for those requests, for the paperwork? Do you have a set program, or everybody gets charged? Ms. Stoner. I believe that there are policies about treating, for example, the media differently than others. But we will be making sure that the policies that exist, which, in general, treat---- Mr. Gibbs. Could you send to the committee a copy of those policies? Ms. Stoner. We would be happy to follow up with you on that. Mr. Gibbs. OK. Appreciate that. Just before I yield to my ranking member, the letter that myself and 16 other Members of Congress sent to the Acting Administrator, I ask unanimous consent to put in the record. Seeing none, so ordered. [The information follows:] [GRAPHIC] [TIFF OMITTED] 81151.010 [GRAPHIC] [TIFF OMITTED] 81151.011 Mr. Gibbs. And I yield to Mr. Bishop. Mr. Bishop. Thank you, Mr. Chairman. Mr. Stanislaus, I am going to start with you. I am very concerned about the Superfund and the inadequacy of funding to the Superfund. I mean, just to review, we have stopped taxing industries that manufacture and sell hazardous substances in 1995. Superfund was fully spent down in 2004. And since 2004, all Superfund cleanup activities have been funded by General Fund taxpayer-generated revenue. And it seems to me we have an analogous situation; we have something, as you know, called the Oil Spill Liability Trust Fund. We tax those industries that refine and import petroleum. We tax them 8 cents a barrel. And so we are saying that if you are going to profit from the importation or sale of petroleum- related projects, you have to bear the burden of the cleanup if something goes awry. It is something that the Congress has authorized, something that the Congress leaves in place. And so my question, I guess, to you but also to my colleagues is, why is it that we are willing to give the companies that manufacture and sell hazardous materials, why are we willing to give them a free pass and we are not willing to give other elements of the industry that same free pass? So that is question number one to you, as I say, but I really am also asking it rhetorically of my colleagues. And the second question is, what is the ongoing impact of the inadequacy of funding? My understanding is that we have 40 to 45 Superfund sites ready to go for construction, but we don't have sufficient funds to go there. And we have some 1,600 identified Superfund sites across the country that we are not addressing because of inadequate funding. So if you could answer both those questions. Mr. Stanislaus. Sure. With respect to those parties who are responsible for contamination of the site, within our program we pursue responsible parties as the path of first course. The President has also proposed the reinstatement of the Superfund tax, focusing on those entities that are associated with the creation of Superfund sites. Thirdly, we are working on putting in place a financial assurance mechanism. And we have identified a number of categories of industry, so that entities that have been associated with the contamination of Superfund sites and where Superfund has been used to clean up those sites, that those industries would have a financial assurance mechanism in place that, should contamination happen, we would have a private instrument to do the cleanup. Mr. Bishop. If I could interrupt you? Mr. Stanislaus. Yes, sure. Mr. Bishop. There exists, we all know, these so-called orphan sites---- Mr. Stanislaus. Yes. Mr. Bishop [continuing]. Sites for whom we cannot either identify or pursue a responsible party. Of the 1,600 Superfund sites that have been identified, can you estimate how many of them are so-called orphan sites? Mr. Stanislaus. I don't have that number here, but I can get that to you. What I can say, of the backlog at the end of this fiscal year, those all would be in the orphan category. Mr. Bishop. They are all orphan sites, and if we are going to act on them, we are going to act on them with taxpayer- generated General Fund revenue, correct? Mr. Stanislaus. That is correct. Mr. Bishop. And whoever created the mess is going to walk away--well, has already walked away. Mr. Stanislaus. Well, I mean, though, the reason why---- Mr. Bishop. Yes. The answer is yes. Mr. Stanislaus. Yes. And the reason why they are orphan sites, the responsible party is not around anymore for them to take responsibility for the cleanup. Mr. Bishop. Precisely. Mr. Stanislaus. Yes. Mr. Bishop. OK. Thank you. All right. Ms. Stoner, you indicated in your testimony that even with reduced expenditures brought on by the fiscal climate we find ourselves in, that--and your measure of reduced expenditures was the President's budget. Ms. Stoner. Yes. Mr. Bishop. If that number were to be reduced an additional--by 18 percent, which is what the 302(b) allocation is that came out of the Interior Appropriations Subcommittee yesterday, would the department be able to continue to pursue and accomplish its core mission? Ms. Stoner. Obviously, that would be very difficult for us. And the programs that we run that are so important to the American public in ensuring that they have clean waters to swim in and safe drinking water, fish that they can eat, all of those programs that are so important to the American public, to the economy, and so forth. And we would have very serious difficulties. There was a lot of concern expressed about our ability to work with our State partners, and we made a lot of choices in the President's budget for this year to continue programs uncut, like the 319 Nonpoint Source Program, or to actually increase programs, like the 106 program that gives money to the States to run their clean water programs, or the PWSS, which gives money to States to run drinking water programs. With cuts like that, I don't know how we could continue to support that great work that our State partners do, working with the Agency to implement the Clean Water Act and Safe Drinking Water---- Mr. Bishop. I have exceeded my time, but if I could just ask one more question. If I could ask each of you to provide the committee, with as much specificity as possible, the impact that implementation of an across-the-board 18-percent cut would have on the ability of the department to pursue its core mission. Ms. Stoner. Of course. Mr. Stanislaus. Yes. Mr. Bishop. Thank you very much. I yield back, Mr. Chairman. Thank you very much. Mr. Gibbs. Mrs. Capito? Mrs. Capito. Thank you. And I want to thank the witnesses for being here. Ms. Stoner, the October 6th, 2011, and July 31st, 2012, NMA v. Jackson decision struck down the interagency memorandum of understanding and guidance and made clear that such attempts were outside of EPA's statutory authority and that the Corps alone can implement. I am wondering, are you--and I have asked you this question before, but I would like an update. How is the EPA working to ensure that this is being implemented? Where are you on that? Ms. Stoner. So we are no longer relying on that document and on the implementation procedures that we had worked out with other Federal agencies that the Federal court struck down. That case is, of course, on appeal and is a matter in litigation. We continue to work closely with other agencies, however, under the authorities of the Clean Water Act that authorize us to do so. Mrs. Capito. OK. Thank you. Guidance documents also have had significant impact on the issuance of the 402 permits. In West Virginia, for instance, we have 724 applications for NPDES permits for mining activities pending in January of 2013. To put that in perspective, we only had 306 applications pending in 2008. What do you feel is a reasonable amount of time that a permit applicant should have to wait in order to secure a permit? Ms. Stoner. Some are more complex than others, but it is very important that the agencies work together effectively to issue those permits as rapidly as possible after ensuring they meet the requirements of the law. Mrs. Capito. Are you doing anything to help with the backlog that exists right now to speed that up? Ms. Stoner. We absolutely are working very closely with our colleagues at the Corps and with our State colleagues, because, as you know, through Appalachia, the States are issuing the NPDES permits, to ensure that those permits are issued in compliance with the law. Mrs. Capito. Well, you may be aware that I introduced a bill to try to make definitive the length of the process so we could have some predictability and stability in this. So I am not sure what the future of that is, but that is something that we will be talking about hopefully in this subcommittee, sir. The other court case that I would like to talk about is the EPA v. Mingo Logan. Ms. Stoner. Yes. Mrs. Capito. And, as you know, I disagree with this decision, but the U.S. Court of Appeals upheld EPA's authority to retroactively veto a permit. As you know, this opinion has created widespread anxiety in the coal-mining industry. And EPA argued successfully that it has the authority to take away a 404 permit irrespective of whether the permit holder is complying with the terms of the permit. But if we look back to the deliberations on the Clean Water Act originally, there were three hallmarks for permitting regulations that exist: One is uniformity, one is finality, and one is enforceability. Do you agree that finality is an important consideration for permits? In other words, when they have been finally issued, are they finally issued? Ms. Stoner. So the court held that the 404(c) authority allows the withdrawal of a specification, so a particular location for the discharge of material, when certain findings are made. So the permit remains, and the permit allows continued mining at that operation as at others. But those specifications that we had moved to withdraw, the court found was appropriate under the statute itself. It was an interpretation of the statute itself, the Clean Water Act. It is important to keep in mind, of course, that we use the 404(c) authority extremely rarely. So it is about 13 times ever in the history of the Clean Water Act, which has been 40-some years now, 41 this year I guess. So we use it very rarely, and we would only use it for particular instances of grave concern. Mrs. Capito. Well, as you can imagine, this isn't just coal mining, it is other entities that are seeking these types of permits. And the chill of investment--if you feel that you have put 10 years, which this company did, into securing a permit, working it and reworking it, working under the permit, and then having it yanked out from under them after probably millions and millions of dollars of investment, you can imagine what that does to chill the investment in anything, not just coal mining, in the area. I have a final question. In 2002, the EPA and Corps of Engineers adopted a joint regulatory definition of fill material. The current rule includes fill materials that, when placed in the waters of the U.S., had the effect of raising the bottom elevation or filling the water, and maintains the proper legal distinction between discharges between the 404 and the 402. However, EPA and the Corps have stated that they are now considering revising that definition. What specific problems with the current rule is the EPA having? Ms. Stoner. We have no active discussions with the Corps on revising that rule at this time. Mrs. Capito. OK. Thank you. Mr. Gibbs. Ms. Kirkpatrick? Mrs. Kirkpatrick. Thank you, Mr. Chairman. Ms. Stoner, the Navajo Nation EPA obtained primacy for the public water supply supervision program in 2000, and the Navajo Nation EPA has done a tremendous job of maintaining compliance over 164 drinking water systems. Grants in fiscal year 2014 are slated for reductions, although we hope that does not happen. So I have two questions, but I am going to ask them together so you can answer them together. The first one is, how can EPA apply appropriate discretion to maintain resource investments in the continuation of the Navajo Nation EPA public water supply supervision? And then, what can be done to elevate the resource issues to support the establishment of base funding allocations for the Navajo Nation public water supply supervision program? Ms. Stoner. So the cuts that we have taken under the sequester are across-the-board cuts designated for particular programs, so we have very limited discretion to protect particular programs. We do continue to work closely with the tribes on those programs, and including with the Navajo, and have put particular attention on ensuring that the drinking water systems and the compliance is as good on tribal lands as on other lands. And we actually have a measure to measure how well we are doing on that. So it is a priority for the Agency. Mrs. Kirkpatrick. Do you see another source of funds to continue that project? Ms. Stoner. I think that if we continue to have continued funding under the PWSS program, there is a specific amount of that that goes to the tribes. So the more funding in that program generally, the more funding we will have available for tribes. Mrs. Kirkpatrick. Thank you, Mr. Chairman. I yield back. Mr. Gibbs. Mr. Hanna? Mr. Hanna. Thank you. Ms. Stoner, do you believe the EPA jurisdictional authority to regulate water is limited or unlimited--and this isn't meant to be an accusation or any inference whatsoever--limited or unlimited under the Clean Water Act? Ms. Stoner. It is limited. And it is actually more limited than it used to be under the two Supreme Court decisions addressing the scope of Clean Water Act jurisdiction. Mr. Hanna. To that end, Congress has expressly opposed legislative attempts to remove the word ``navigable'' from the law and replace it with a new term, ``waters of the United States,'' as broadly defined by the EPA. Isn't this exactly what the EPA's so-called guidance attempts to accomplish? Ms. Stoner. The guidance that was put out in proposal and as a draft is currently pending, would seek greater clarity about the question that you ask. So it is currently somewhat muddled as to where the scope of jurisdiction lies and where the line lies that you ask about---- Mr. Hanna. What is your opinion about what you would like to see in the language? What would you like to see, ultimately, that language to be? Ms. Stoner. We would like to see greater clarity that helps the Federal, State, local agencies and local entities---- Mr. Hanna. What does that mean to you, though? Which way would you go, ``navigable'' or ``waters of the United States''? Ms. Stoner. Well, both are currently in the Clean Water Act, but what we would like to do is to interpret the language of the Clean Water Act in light of those Supreme Court cases to provide greater clarity on that question. Mr. Hanna. I understand that numerous stakeholders, including the U.S. Conference of Mayors, National Association of Counties, League of Cities, National Association of Clean Water Agencies, are strongly urging the EPA to update its affordability guidelines to better reflect the financial needs that communities are facing in trying to meet multiple unfunded regulatory mandates. What are the EPA's plans to amend the affordability guidelines, if any? And why does the EPA, if it is, why does it seem to be so resistant to these changes? Ms. Stoner. We are actually in very productive discussions with the National League of Cities, Conference of Mayors, and the National Association of Counties, on issues of financial capability. I would not say we are resistant at all. In fact, what we are doing is working out a range of factors that can be considered on financial capability to address those concerns. And it is a very productive dialogue that---- Mr. Hanna. Can you break that down a little bit more? Can you say what that might look like and what kind of timeline we are looking at? Ms. Stoner. Well, the discussions are occurring now, and I believe--we just had one meeting, and I believe there are two more ahead to discuss this in more detail. Cynthia Giles, my colleague in the enforcement office, and I already issued a memo explaining the general idea about financial capability and considering a broader range of factors. And what we are working on now is what further detail on that would include. Mr. Hanna. All right. Well, thank you. Mr. Stanislaus, since 1995, thousands of brownfields sites have been assessed, and well over 2,000 properties have been made ready for reuse. Can you talk a little bit about the progress for that reuse and how successful it has been? Not just the cleanup, of course, but there are 2,000 sitting out there. What kind of actions are you taking to dispose of these properties and to facilitate new companies, new use of these properties? Mr. Stanislaus. Sure. And I actually think the program is very successful, but we have lots of challenges. On a yearly basis, we are only able to fund about one-quarter of all requests. And the tools that we provide are generally in the category of grants for investigating a site to determine how contaminated the site is. We provide cleanup resources, we provide redevelopment resources. And, generally, it is led by local governments. Mr. Hanna. How many of these sites, can you give me an estimate of how many are actually being used for some other purpose? Mr. Stanislaus. Yes, I can give you a comprehensive list, but let me give you an overall summary. Mr. Hanna. OK. Mr. Stanislaus. Roughly, every dollar of U.S. grants leverages about $18 of private and public investment. And the reason for that is, because particularly on the site assessment side, it provides more certainty so the private sector can underwrite these projects. And, in fact, I got together with a number of local leaders and developers just last week at our semiannual meeting to bring actors together to redevelop---- Mr. Hanna. My time is almost up, but do you think that there is enough certainty? Do you imagine, after working through this, there are ways that the Government can either take on more legal responsibility or relieve the downside potential to companies in order to facilitate their interest in these properties? Mr. Stanislaus. Well, I would have to consider more the liability question. What we have done is to provide even further liability clarification. For example, we recently had a conversation with those who were interested in siting clean energy on contaminated properties. You remember, developers and financiers. And they thought that we needed to provide further liability clarification for lessees. Under the Brownfields Law that was passed a number of years ago, it provided certainty for owners but not lessees. So we have recently issued further clarification, which can be used in the underwriting process to provide that kind of certainty. Mr. Hanna. Thank you. My time has expired, long past. Thank you. Mr. Gibbs. Representative Hahn? Ms. Hahn. Thank you, Mr. Chairman, Ranking Member Bishop. I am glad we are having this hearing. I just wanted to start by going on the record, and I know everybody doesn't have the same experience that I have, but I have really found in the areas that I represent out in Los Angeles that we never really had to choose between protecting our environment and creating jobs. In fact, what I found was cleaning up the air and cleaning up the water at the Port of Los Angeles actually created jobs. And, with our insistence that the Port of L.A. clean up its act, we actually created a laboratory where we had just numerous small businesses and entrepreneurs who were able to start up businesses that helped to clean up the port and gave them a consistent and reliable reason to create businesses and products and technology that would continue to support that mandate. So I never had to choose between clean air and good jobs. I think we can do both. I am going to follow up on my friend and colleague, Mr. Hanna's line of questioning about brownfields. And many of the communities that I represent have significant brownfields, and, you know, they are the recipient of decades of being used as a dumping ground for a lot of the rest of Los Angeles. The city of Carson is one of those, and they are discovering that these brownfields sites represent significant development opportunities on valuable, well-located land. And what they are doing now to clean, remediate this is impressive. It is creating jobs and growth and opportunity. But, Mr. Stanislaus, in what you just said, that every dollar of EPA brownfields spending leverages nearly $18 in private and public funding, of course I am sitting here troubled by the administration proposing to cut brownfields grants by $9 million. And, by your math, you know, cutting this $9.1 million is really a $173 million cut to brownfields projects that are creating jobs, rejuvenating communities, and figuring out a way to deal with these brownfields. So when we are so desperately in need of jobs and opportunity that these brownfields remediations have provided, how can the EPA ensure that this proposed cut does not adversely impact the progress of brownfields remediation activities across our country and in my district? And how can we leverage more private funding when we are losing a significant leverage tool in this grant money? Mr. Stanislaus. Well, thank you. And, you know, ideally, we would not have that cut. You know, we are in this constrained budget time that we have right now. And so we tried to minimize the cut to the greatest extent we can. So it will have impact in terms of the total numbers of grants that we can give and reduce the number of communities that we can touch. But despite that, you know, we will try to aggressively, one, get the money out as quickly as possible, shrinking that time period to get the money out as quickly as possible. When I have had a series of discussions with local leaders around the country, in these budget-constrained times, the single most important activity they underscored in today's climate is technical assistance, on-the-ground technical assistance, probably even more than grants in a lot of cases. So we are really ramping up our technical assistance, both our direct technical assistance in terms of staff time, our contractor assistance. We recently awarded an independent technical assistance provider to provide capacity to local governments so they can compete for resources in a way that we cannot. So those are some of the things we are trying to do. The other things--in fact, last week, when we brought together probably about 28,000 various folks from around the country, you know, we continue to want to provide resources and technical assistance to them to advance their projects. And that is some of the various things that we are trying to do. And I should also underscore, which I always like to do, the increase of property values. Ms. Hahn. Uh-huh. Mr. Stanislaus. So it is not only the direct leveraging. Our studies show that within a mile of a cleanup of brownfield sites increasing property values from 5.1 percent to 12.8 percent. So it directly relates to increases in local tax revenue, you know, property values. So there is a lot of stimulative effects of brownfield sites. That is why I am a big champion of that. Mr. Gibbs. Mr. Crawford? Mr. Crawford. Thank you, Mr. Chairman. And thank the witnesses for being here today. Ms. Stoner, I want to focus on EPA's regulations of on-farm fuel storage. It has been a source of constant frustration for farmers in my district and, I suspect, across the country, as well. The most recent continuing resolution, H.R. 933, included a provision, section 1416, that bars the EPA from enforcing the Spill Prevention Control and Countermeasure Rule that went into effect on May 10th. If your agency can't legally enforce these rules at this time, then why does the EPA's SPCC Web site still direct farmers to be in compliance by May 10th? Mr. Stanislaus. So---- Ms. Stoner. I am going to direct that question to my colleague. Mr. Stanislaus. That is actually my question. Mr. Crawford. My apologies. Mr. Stanislaus. Sure. So, you know, we have done extensive outreach with the farmers, going back probably, I would say, 10 years or so, to put in place the proper balance of the protections to prevent oil spills. And I think we, I think the farmers, the farm bureaus, we all agree that preventing oil spills is a good thing and limits, prevents impacts on farmland, it prevents impacts on local community water sources. So, given that, we have tried to make it as lean as possible. And just to be clear, the SPCC rules only cover farms that have a significant size of oil tank. So, of the total farm universe, it is less than 10 percent. And, of that 10 percent, 95 percent is basically self-implementing. So basically they put together their own plans, they have a file so that they can ensure that oil spills do not happen. And so, we believe we have done a lot to really accommodate the farmers and the farmers' compliance. And, actually, we have had a great exchange with the farming community in terms of the rules themselves. Mr. Crawford. OK. Well, with all due respect, you haven't answered my question. What I want to find out is, why are you directing them to be in compliance when you don't have the authority to enforce the compliance based on the section 1416 of H.R. 933, which extended that beyond May 10th? So I am just wondering why you would direct them on your Web site to be in compliance on May 10th. I guess my followup question would be, when the CR expires, is the EPA retroactively going to enforce those regulations if farmers weren't in compliance by May 10th? Mr. Stanislaus. Well, again, our primary objective is to work with farmers to put in the protections necessary. So that is what we will continue to do. And we continue to have exchanges with the farming community to do that. And I think it is a win-win for us to be doing that. Mr. Crawford. OK. So you will not, then, enforce retroactively for those farmers that are not currently in compliance? Mr. Stanislaus. Well, let me get back to you in terms of that. You know, again, our primary role here is not lead with enforcement; our primary role is to lead with compliance. And that is why we have done lots of outreach with the farming community, going back multiple of years. We have actually developed informational materials with the farm bureaus to distribute to the farmers. We have really worked on making sure during the nongrowing season that we do a lot of outreach to them. So I think we are really working hard to work with the farming community. Mr. Crawford. Well, I appreciate that, but you just said you lead with compliance, and a key component to compliance is enforcement. My concern is that farmers won't be retroactively penalized based on a compliance date that was superceded by the current CR that is in effect right now. So I am concerned about that. And I just want to restate for the subcommittee here, I hope that we do something about this very soon because there are a whole lot of small farmers out there, and the thresholds that you have prescribed under the Clean Water Act really are unreasonable, 1,320 gallons. And hopefully we can address that. I want to switch gears real quick, as my time is limited here. Along with Chairman Gibbs, I also sent a letter on March 12th requesting some information regarding the EPA release of sensitive information to environmental groups. Have not yet received a response to that letter. So I am also very frustrated with that, as well. But can you tell me and tell the committee what the process used by the EPA was to acquire released information from State agencies? Ms. Stoner. So we contacted States directly and asked them for publicly available information to help us implement the Clean Water Act's requirements---- Mr. Crawford. OK, let me ask you this: Do you know, was there any information such as a Social Security number possibly, GPS coordinates, and so on that would identify the exact locations of any of these production facilities? Ms. Stoner. I am not aware of seeing any Social Security numbers. There were some addresses that were part of the information. And, as you know, we have taken steps to redact the information, where there were privacy concerns having to do with individuals, and have taken that step and have asked for the other data back, which we have received. Mr. Crawford. Well, thank you. I am out of time. But, unfortunately, redacting after the fact does little to protect those farmers in question. I yield back. Mr. Gibbs. Mr. Mullin? Mr. Mullin. Real quick, I want to reiterate what Mr. Crawford was saying. As an active farm operator, it is absurd to me that the EPA is going to start coming on our land trying to tell us how to take care of stuff we have been doing for years. I can assure you, you are not going to find anybody that has more pride in their property than someone like myself that has been on the same land for four generations. We don't need the EPA to come in and start telling us how to take care of something we have been doing for years. That is not my question. That is just me venting. Now, my question is, though, the EPA Scientific Advisory Board recently announced their independent panel of 31 experts to study the EPA's conduct on--or conducting on hydraulic fracturing. And how did these experts get chosen? Ms. Stoner. I believe you are asking about a question of the study being done by the Office of Research and Development. So that is not a study that we are doing out of my office, but we would be happy to provide that information to you. Mr. Mullin. So you guys don't know how the panel was put together? Mr. Stanislaus. It was set up, as Nancy noted, by another office. We can get you that information, how the experts were selected. Mr. Mullin. Well, I mean, I think that would be pretty important, just for the simple fact--and I just want to point out something here. The panel, 60 percent of those, of the 31 that are on that panel, 60 percent of them had direct funding from the EPA, 60 percent of them. Now, out of that, Missouri is on there, Washington is on there, North Carolina has three universities on there, Penn State has two, Colorado has four. Oklahoma, who has, as we speak, 149 active fracking sites. We gave out 10,000 permits last year alone, not on there. North Dakota, where we are hearing all this stuff going on, not one person is on there. Something needs to be checked in on this panel. I really hope this doesn't have to do with an agenda. I would really hope that this panel was put together for the purpose of truly giving an independent study point of view. But everything we are seeing, that is not going on. What we are seeing is the EPA once again has their own agenda, has nothing do with getting it right. It has their own agenda. And so I would appreciate it if you guys could bring that to my office or at least get it sent to me. Mr. Speaker, I yield back. Thank you. Mr. Gibbs. Mr. Davis? Mr. Davis. Thank you, Mr. Chairman. First off, thank you both for coming in today. You know, if you are a farmer or a producer and you look at the news for the last few years, you are kind of concerned with your agency. You had proposals to further regulate farm dust, proposals to treat milk spills like oil spills. I know there has been a lot of discussion about the ``navigable'' term out of ``navigable waterways.'' And, also, your agency admits to releasing personal information on over 80,000 livestock producers to activist groups. As you can see the hits, they keep on coming to the agricultural community. And I must ask, are you personally aware of the disconnect between the agency you work for and the people that I represent in the agricultural community? Ms. Stoner? Ms. Stoner. So we have set up a group to supplement the usual group that we have to periodically discuss issues with the agricultural community to try to improve the communication and understanding on issues like the ones that you raise. We are well aware of the benefits to clean water from having land in farming, particularly, as opposed to developed. And we also recognize what good stewards of the land farmers are in the United States. So we are actively working with those groups to improve communication on issues on which we have had some difficulties. And I will acknowledge that we have had some, and we are doing the very best we can to improve that situation. Mr. Davis. Ms. Stoner, thank you. I had an idea, and I successfully included an amendment to the farm bill that would provide agriculture with a place at the table whenever EPA is proposing a new regulation that deals with ag. My amendment does three simple things. It increases the USDA review of the EPA regs that just affect the agriculture industry. It sets up a mechanism where farmers can just provide you input on these regulations. And then it summons an ag review panel that submits a report and recommendations to EPA on the concerns of the ag community. Given the principles that I have outlined, does the EPA support this type of involvement by the agricultural community and the USDA? Ms. Stoner. I am not familiar with the details of your specific legislation, and I don't believe the administration has a position on it right now. I will note, though, that every person in the United States has the opportunity to comment on proposed rules and that there also is a process under which USDA and other agencies work through the clearance process that we go through with OMB on every rule, so that those opportunities exist now under current law. Mr. Davis. OK. Well, I mean, you are saying that the farmers and the agriculture industry is already involved in the regulatory process. I just can't fathom, then, how the EPA explains some of the issues that have come out of your agency that I mentioned earlier. I just think there is a disconnect, and I think it demonstrates a lack of understanding that I was just discussing. I think the EPA needs to provide better access to the agricultural community so that we are not--we are dealing with issues so that your agency understands the ag sector on the front end, rather than having to fight back those proposed rules and regulations on the back end. I urge you to take my message back to your agency. And if there is any way I can help facilitate that and facilitate that type of message with the EPA and with the USDA, I am more than willing to do that so that we don't have hearings like this or future hearings to discuss what I consider adversarial rules and regulations to the many constituents that I represent in central and southwestern Illinois. But, again, I do want to thank both of you for your time today. I know it is long and arduous to sit in one of these hearings. I commend you for doing so. And I want to say thank you again on behalf of this subcommittee. And, Mr. Chairman, thank you for your leadership on this issue. And I would like to yield back my time. Ms. Stoner. Thank you. Mr. Gibbs. I will start giving myself some time here for questions. Ms. Stoner, back on spending and spending priorities, it has come to my attention there is a $12 million request to design a new federally owned facility in Las Vegas. And I guess I want to know about that. Is this going to be--in a time when we have budget restraints and there are more pressing needs than to build new facilities, I hope this isn't a start of a new construction program. So can you address a little bit what the priorities are? And are you getting into the building business? Ms. Stoner. My understanding is that what you are referring to is a lab that is not part of the Office of Water budget, so I am not familiar with the request that you are asking about. Mr. Gibbs. OK. Because I believe it is going to be referred to as the Harry Reid building, if that stimulates any---- Mr. Stanislaus. Yes. We will get back to you. I am not familiar with it either. Mr. Gibbs. OK. OK. I wanted to talk a little bit about how the past subcommittee hearings in the last Congress, we had some good discussion, I think, on the integrated permitting initiative. Ms. Stoner. Uh-huh. Mr. Gibbs. And since then, we have had some other hearings, some of the local stakeholders in, and concern that it is not really functioning. I am not so sure that your agency has really been aggressive enough to get that program going, help the municipalities, and craft an acceptable integrated plan. What is the status? Are you looking at maybe doing 15 or 20 pilot projects? Because this is an area where I think we can really help on the cost side and actually get something done to improve the environment. Ms. Stoner. Yeah, we appreciate your support for that program, and it is moving forward. The goal of it is to work with communities to prioritize their investments so that they can achieve as much as possible with the dollar, given the difficult fiscal times in which we find ourselves. And that program is moving forward. There is a lot of interest in it across the country. We have not had to turn away anyone yet, so we are not actually in the pilot project mode, in the sense that we are talking to everyone who is interested in it. It is voluntary for them to decide whether they would like to participate in integrated planning. And those who do are working with their State and with EPA to move forward to do so. We are also making sure it is implemented consistently throughout the country through regular calls with the regions as well as quarterly meetings between Cynthia Giles and the enforcement office and myself to go through the docket of where these discussions are occurring to make sure they are moving forward smoothly. Mr. Gibbs. Just a suggestion, since we were just talking about the $12 million construction project in Las Vegas, maybe that might be well better spent on pilot projects for this integrated permitting. A question on that. Is your agency putting out to the local authorities what you would like to see, what kind of projects? Are you trying to stimulate the thought process to try to stimulate the interest? I know there is interest at the local level, but maybe they need some parameters or some guidance. Ms. Stoner. Right. So we actually did put out a document that helps communities identify what elements of an integrated plan would like look. And we have urged them to come in early to talk with both us and the State permitting authority to figure out how to do that together constructively, to develop an integrated plan that can move through the system. So that is how we are addressing that. Mr. Gibbs. OK. We have also heard that there are some EPA regional offices where certain cities with the combined sewer overflows promised to keep on spending in the limit where they can afford to solve the combined sewer overflow problems, even if spending more money will not result in meaningful water quality improvements and substantially less costly controls are available that will meet water quality standards. I thought the EPA Deputy Administrator and you both have said that the EPA would not make cities spend the limits of their affordability without getting meaningful water quality benefits. My question is, what is your policy in spending to the limit of affordability? And why aren't all the regions listening to the DC office? Ms. Stoner. There is no required spending amount, but it is often expensive to address combined sewer overflows. And so part of what we are trying to do is to make sure we are identifying the most cost-effective approaches and working on those with communities to make sure every dollar is well-spent and achieves improved water quality. Mr. Gibbs. Do you have affordability guidelines that you work with with local municipalities? Ms. Stoner. Right, so we are currently working--in addition to integrated planning, we are working with local governments on identifying a broader array of factors to be considered on financial capability, as well, to ensure that there is a good understanding on that. But there has never been a minimum spending amount. Mr. Gibbs. My understanding is that you have guidelines and you are trying to revise them. Are you working through a revision of those guidelines for affordability? Ms. Stoner. We are working to do something on financial capability similar to what we did on integrated planning. And so that would be some kind of a framework or strategy document that we would work on with the Conference of Majors, National League of Cities, and National Association of Counties. Mr. Gibbs. I hope it progresses quicker because I think we had this discussion 2 years ago, and it doesn't seem like we have moved far and fast enough. So maybe we ought to try to prioritize that. Because I think that would really help municipalities meet their clean water standards and do it in a way they can afford to do it. Ms. Stoner. Again, thank you for your support. Mr. Gibbs. Mr. Bishop? Mr. Bishop. Thank you, Mr. Chairman. Very briefly, I share the concern that Congresswoman Capito has with respect to the length of time that it takes for permits to be reviewed and granted, and I indicated that in my opening statement. My question is, I am assuming that if there is an 18- percent cut across the board to EPA that that means some people who currently work for the EPA will lose their jobs. Is that correct? Ms. Stoner. I can't tell you specifically how we would take such a cut, but it would certainly impair our ability to do our job, including working with States on permitting---- Mr. Bishop. And so, if there were fewer people available to review permits, it is reasonable to assume that an already- lengthy permitting process would become even more so; is that correct? Ms. Stoner. I think that is fair to assume. Mr. Bishop. OK. Thank you. And I thank you very much for the work that you do under pretty adverse circumstances, and I thank you for your testimony today. I yield back, Mr. Chairman. Mr. Gibbs. OK. I think I have just a couple more questions. On stormwater, the EPA has initiated a controversial national rulemaking to establish a potentially far-reaching and costly program to regulate stormwater discharges. What is the status of rulemaking? And when can we expect to see a proposal? And how long will the public comment period be? Ms. Stoner. So I don't have answers to all of the details that you are asking me about. We are working on a stormwater rule which we actually think will, again, address these cost- effectiveness issues that we have been talking about in terms of the problems associated with water pollution that cities face, many of which have to do with population growth and urbanization and so forth. So this is part of the approach that we are taking to help to bring down those costs. And we are continuing to work on that. And I actually have been doing a series of roundtables across the country to get more input from cities and others on the proposals we are developing now. Mr. Gibbs. OK. Also, I know the question came up earlier, but I wanted to follow up a little bit more, because there has been so much concern out in the country, especially in the rural areas with agriculture. What do you believe the EPA's jurisdictional authority to regulate water is? Is it limited or unlimited of the Clean Water Act? Where do you think that authority ends? When you talk about navigable waters, just where do you see the Agency? Ms. Stoner. So that is exactly why we would like to put out a clarification, because that question is one that comes up often across the country by individuals who are trying to determine whether they need permits or not. So many of them are concerned that the jurisdiction is unclear, that they just assume there is jurisdiction and move ahead with the permitting process. So we think it would be better to clarify the scope of the Clean Water Act and the limitations that do exist. And there are limitations. And so we would like to get that clarified. Mr. Gibbs. Would you agree that in, I guess it was 1972, when the Clean Water Act was enacted into law--it has always been my understanding, it was enacted into law under the constitutional authority of the interstate Commerce Clause because the word ``navigable'' was in there. Would you agree that ``navigable'' is a key word to the constitutionality of the Clean Water Act? Ms. Stoner. What I would say is that there was a broader scope of jurisdiction under the Clean Water Act earlier than there is now. And some of that was based on the Commerce Clause and the use of waters by migratory birds. And the Supreme Court has indicated that use by migratory birds is not sufficient. There is a narrower scope of jurisdiction under the Clean Water Act that---- Mr. Gibbs. That would be your opinion, right? That you think there is--because I would---- Ms. Stoner. I think it is pretty well-recognized, but, yes, it is my opinion that the Supreme Court narrowed the scope of jurisdiction that was previously recognized across the country under the Clean Water Act. Mr. Gibbs. Interesting. I just want to also ask, we talk about the nutrients in the numerical versus narrative standard. Can you tell me where the EPA is on setting criteria? Are you moving more toward the numeric in some areas? Are we still using more of the narrative? Or where are we at? Ms. Stoner. So I appreciate you asking that, particularly in light of your opening remarks about partnerships. So we have indicated that our approach is to work with States on statewide nutrient reduction strategies and on criteria. So numeric criteria do help States implement programs to help address problems associated with nutrient pollution, like algal blooms and nitrate contamination of drinking water and so forth. And so what we have been doing is working with those States that are interested in doing numeric nutrient criteria to help them with the science, with technical assistance, to have criteria that work for them in their program. Mr. Gibbs. Are there some issues with your own science advisory board? I think they have expressed concerns about using the numerical standard. Ms. Stoner. I think that there was a document at one point that they made comments on. That was some period of time ago. I think we have already addressed those comments. But what we are doing is making sure that we have a sound scientific basis for all the work that we do with our State partners on developing numeric criteria. Mr. Gibbs. Did I understand you correctly to say that some States are moving forward, mostly using the numeric? Ms. Stoner. Yes. There are some States that are currently developing numeric criteria, and we have approved a number of criteria---- Mr. Gibbs. About how many States would that be? Ms. Stoner. I will have to get back to you on the specific answer on that, Mr. Chairman. Mr. Gibbs. OK. My understanding, you could have a high nitrogen or phosphorus content in some areas that causes a big problem, obviously, with algae blooms and what else. But there are some instances where you could still have a high phosphorous standard and maybe not have a problem, but it would exceed the numeric standard. So I don't know, if you move totally to a numeric standard and don't use the narrative, will you take in all that is going on in that watershed or that water body or river, the pH, the water flow, the biology. We just have to be careful we don't get constricted to this one-size-fits-all policy that is going to cause problems. Because there are different things going on all across the country in different water bodies. Is that---- Ms. Stoner. You are correct that there is no one national number that applies to everyone. And that is actually true of water quality standards generally. They are set by the States based on the uses of the waters. But for nutrient pollution, different water bodies naturally have different amount of nutrients in them. And so that is one of the factors to be taken into account. And we do that in developing the science, working with the States to set criteria that are appropriate for them. Mr. Gibbs. OK. There is a provision in the Clean Water Act that aims to prevent conflicts of interest with people that get appointed to State water quality boards overseeing the administration of Clean Water Act permits. EPA's long-existing rules have a 10- percent income restriction, which has led to problems over the years in many States being able to get qualified people to serve on such, quote, ``citizens boards.'' Some have attempted to use these provisions, in maybe Florida and Maine, as a weapon to try to disqualify political appointees from environmental agencies. Section 304 of the Clean Water Act directed U.S. EPA to develop regulations to prevent an individual that receives significant income from a permittee or permit applicant from sitting on a water quality authority that reviews and issues NPDES permits. U.S. EPA has defined ``significant'' to be income in excess of 10 percent of an individual's annual income. This test applies to immediate family members also. Please explain the basis of this decision that led to the determination that a 10-percent income threshold was the appropriate way to protect against conflicts? Ms. Stoner. I believe we are working on a revision associated with that. Mr. Gibbs. OK. It has comes to the committee's attention that EPA's Office of Water is considering ways in which it might revise the income restriction rule to better reflect the realities and complexities of implementing the NPDES permit program, the reach of which has greatly expanded over the years since passage of the Clean Water Act. Can you explain how the Agency envisions developing alternatives that would ensure that qualified individuals can be appointed to water quality authorities using true conflict- of-interest tests? And that probably is in your vision, I am assume you are going to tell me. Ms. Stoner. Yeah. Those are the issues that we are looking at in the revision, yes, sir. Mr. Gibbs. What about timing? You are working on the revision. Do you have a timetable? Ms. Stoner. Not one that I can share with you now, but we would be happy to get back to you on that. Mr. Gibbs. OK. I do have another issue here that I guess I might as well bring up, since nobody else is going to ask a question. Apparently, there is, in Region 9, in the San Diego area, a continue to push permit users in California to impose a numeric influence standard for bacteria in permits based on EPA's November 2010 memorandum that is still not approved and finalized through the OMB review process. In light of the recent Eighth Circuit opinion in the Iowa League of Cities case finding the practice to violate Administrative Procedures Act requirements, does the EPA intend to withdraw the November 2010 memorandum? Ms. Stoner. So the water-quality-based effluent limits that are in MS4 permits are not reliant on that memo. They are actually reliant on the regulations and the findings that States make that waters are impaired and that they are impaired by stormwater. So the memo is not actually critical to that decisionmaking, which is an authority that the Ninth Circuit has found that the Agency has under the stormwater program to implement water-quality-based effluent limits to protect water quality. And that is what is being addressed in those permits that you are asking about. Mr. Gibbs. OK. Well, I guess we will conclude, and I appreciate---- Mr. Davis. Mr. Chairman? Mr. Gibbs. Oh, yes? Go ahead. Yes. Mr. Davis. Thank you, thank you. And I apologize, but I am glad the chairman brought up the NPDES permit process. A few years ago in my previous job, I was working with many stakeholders in rural areas who were concerned about the EPA regional office that covers Illinois, their attempt to work with the Illinois EPA to regulate and require testing of above- ground septic system discharge systems, commonly known as aeration systems. Is there a national push by your agency to require an NPDES permit for individual systems, above-ground discharge systems? Ms. Stoner. No. Mr. Davis. OK. OK. So that was a regional push and---- Ms. Stoner. Septic systems are problems in some areas. They are covered by the Nonpoint Source Program. And when they are problematic, we work with States to use the 319 funds that we can provide or other State authorities. And States may have different authorities than we do to address septic system pollution. It can be a big problem in some areas, and so we do like to work to address that. Sometimes it can be addressed by something as simple as helping people clean out their septic systems. So if you have one, you should make sure you clean it out periodically. But they can cause some bacterial kinds of contamination and nutrient pollution of waterways nearby. Mr. Davis. Well, thank you. And I do have one, and I do clean it out periodically. There was a big concern, though, that the State and the regional office were going to require in Illinois testing of discharge on each and every above-ground septic system, aeration system, throughout the State, which would inordinately hurt some of the most rural and poorest areas of the State of Illinois. I know that that push was a few years ago. I am glad to hear that there is not a national push from the EPA to do that. And I would encourage your agency to work with those regional offices in the States to understand the impact that a proposed rule like this might have. And the fact, in Illinois, where I live, we didn't have the testing facilities that would be able to take the tests and figure out whether or not someone passed. There were no further rules about how many tests is it going to take to actually prove, if you failed, if you are now up to your standards. It was an issue that was big a couple of years ago. It is one that I hope doesn't become a major issue again. And I hope all of the septic system owners like myself do clean their systems out and do take advantage of the technology that is out there, because it is not a permit that should be needed on an individual basis in rural States like mine. So thank you for clarifying that. Thank you again for your time today. And I yield back, Mr. Chairman. Mr. Gibbs. Thank you. I just wanted to close by just kind of a statement that I think today we learned that--I am happy to see you recognize that agriculture can play a key role in enhancing water quality. I am a firm believer of that, especially with a lot of the new technologies that are being used, with no-till and min- tillage practices and grass waterways and all that. I am concerned, obviously, we had the issue about public disclosure of private information. Hopefully that stays at the top your radar screen and is addressed appropriately. And, also, we are working--we have challenges out there in infrastructure. And I get a lot of people coming into local municipalities; they are all under, most of them, some EPA edict, combined sewer overflow or overcapacity in the sewage treatment plant. And that is why I think the integrated permit process, which I know you support, I think would be a key initiative to help them. Because there is not just enough money to go around. And, hopefully, we can do some things here legislatively. One thing I have been working on is a private- public partnership to bring some resources in, especially in that area, that I think could make a lot of sense for both the private and public sectors. So, encouraged by that. But I think it is also worth mentioning that--I am sure my ranking member gets it, too, a lot of his constituents and local businesses are concerned about how sometimes the EPA operates. I think everybody wants clean air and clean water. And I think it is important that as much as we can do to help them come into compliance and do the right thing, instead of go out and beat them over the head. Sometimes that doesn't always work as well either. So I think that is always important, as we work as public servants. So I want to thank you for both being here. And we will conclude this hearing. Adjourned. [Whereupon, at 3:55 p.m., the subcommittee was adjourned.]