&EPA
            United States
            Environmental Protection

            Agency
            Office of Water
            and Waste Management
            Washington DC 20460
July 30, 1979
            Water
Grants and Loans
for Municipal Water Supply
and Wastewater Treatment
Systems:


Water Conservation
Provisions

Final  Report of Task Force 11

U.S. Department of Agriculture
U.S. Environmental Protection Agency
U.S. Department of Commerce
U.S. Department of Housing
and Urban Development

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GRANTS AND LOANS FOR MUNICIPAL WATER SUPPLY AND



         WATEWATER TREATMENT SYSTEMS:







         WATER CONSERVATION PROVISIONS
                 FINAL REPORT



                      OF



                 TASK FORCE 11
        U.S.  DEPARTMENT OF AGRICULTURE



        U.S.  DEPARTMENT OF COMMERCE



        U.S.  ENVIRONMENTAL PROTECTION AGENCY



        U.S.  DEPARTMENT OF HOUSING AND URBAN



               DEVELOPMENT

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                               EXECUTIVE SUMMARY

The Directive
     On ^uly 12, 1978, the President Issued a memorandum to the Administrator
of the Environmental Protection Agency (EPA), and the Secretaries of the
Departments of Agriculture (DOA), Commerce (DOC), and Housing and Urban
Development (HUD), directing them to:
               review those programs of your agency that provide
               loans and grants for municipal water supply and
               wastewater treatment systems, and modify those
               programs to remove any disincentives to water con-
               servation and to require appropriate community
               water conservation programs as a condition of such
               loans and grants.  These water conservation modifi-
               cations are to apply to all loans and grants
               awarded after September 30, 1979.
     This Directive is part of the implementation phase of the President's V'ater
Policy Message to Congress, Issued on June 6, 1978.  That message provided for a
new national emphasis on water conservation on the part of agencies.and Departments
within the Executive Branch of -the Federal government.  The President assigned the
task of seeing that these policy initiatives were fully and promptly implemented
to the Secretary of the Interior.  In turn, the Secretary established nineteen
separate task forces to assist..him in overseeing implementation of the water
policy directives.  Six of these task forces are considering various aspects of
the water policy message that relate to water conservation.

     The President's Directive for Task Force number 11 charged the Administrator
of the Environmental Protection Agency with the responsibility of coordinating the
review of appropriate programs of EPA, HUD, Commerce and Agriculture, and reporting
to the Secretary of the Interior on the results of program modifications which
would encourage water conservation in grant and lean programs for water supply
and wastewater treatment.
                                    1

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Affected Programs
     The-Task  Force reviewed the programs of each of Its agencies to determine
which programs were affected by the President's Directive.  Some of the major
affected programs are:
   Department/Agency
Agriculture
                                           Name of -Affected  Programs
   Farmers Home Administration

Commerce
  Economic Development Administration
  National Oceanic and Atmospheric
    Administration
                                           Water and Waste Disposal
                                             Systems for Rural Communities

                                           Public Works and Development Facilities
                                           State Coastal Management and Energy
                                             Impact Programs
Housing and Urban Development
Environmental Protection Agency            Construction Grants for Wastewater and
                                             Treatment Works
                                           Water Quality Management Program
                                           Water Pollution Control Regulation
                                           Research and Development Program
                                           Community Development
                                             Block Grants
                                           Small Cities Program
                                           Urban Development Action Grants
                                           Comprehensive Planning Assistance
                                             Program
     Some of the programs listed are not municipal water supply and wastewater
treatment system grant and loan programs.  Some of the Task Force agencies
included such programs because they have a substantial effect on grant and
loan programs.
                                    11

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Interim Report
     On November 27, 1978 the Task Force Issued an interim report containing
a description of each affected program, existing water conservation provisions,
potential options, and other pertinent information.  Copies of the report were
distributed and discussed at several national and regional water poltcy
implementation meetings.  Reviewers were asked to identify additional  options
and provide comments on the feasibility of the options presented.

Existing Water Conservation Measures
     Some of the Task Force Agency programs already include provisions which
encourage water conservation:
     e  Farmers Home Administration: Highest priority for funding shall be given
        to an existing community water supply system requiring immediate action
        as a result of unanticipated diminution or deterioration of its water
        supply.  Distribution system leakage shall not exceed FmHA criteria.
        Combined sanitary and storm sewers will not generally be financed.
     0  Department of Commerce
     0  Economic Development Administration:  Metered water systems are required.
     c  National Oceanic and Atmospheric Administration:   Neither the Energy
        Impact nor the Coastal Zone Management Programs contain incentives or
        disincentives for water conservation.
     8  Environmental Protection^Agency;  Flow reduction analyses are required
        as part of facility planning.  Innovative and alternative systems,
        including those resulting 1n wastewater reuse and recycling, must
        be evaluated and when selected will receive 85% instead of the normal
        75% Federal funding.  States may give a higher priority to innovative
        or alternative projects and must set aside 2% (3% in fiscalJ981) of
        the state allocation of construction grants funds for such projects.
                                       111

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        Best Management practices for control of non-point source water
        pollution often result tn water conservation.

Public Participation
     Throughout the development of the reports the Task Force conducted open
Interagency meetings.  The Department of the Interior conducted a number of
national and regional conferences on the Task Force efforts.  EPA conducted
a National Water Conservation Conference 1n November 1978.  The final report
contains copies of all letters and oral comments and detailed responses to
each.  Public comment on any option 1s stm encouraged and may be made
to the Department of the Interior or directly to the appropriate Task Force
agency.

Task Force Assumptions
     The Task Force utilized a slightly modified version of the Department of
the Interior's definition of wa^er conservation:
          Actions to implement the President's policy on water
          conservation should consist of proposed changes that
          will (a) reduce the demand for water; (b) improve
          efficiency in use and reduce losses and wastes; and
          (c) Improve land and waste management practices to
          conserve water
     The Task Force judged the benefits of water conservation to be proven and
the need for water conservation to be documented.  The Task Force relied
extensively on the December 6, 1977 report of the Interagency Water Conservation
Task Force and the Water Resources Council's "Second National Assessment of the
Nation's Water Resources" for these Judgements.
                                      i
     The Task Force found that cost savings and energy considerations generally
                                       I
argued for not limiting water conservation measures to water short areas.
                                      1v

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Major Issues
     The Task Force encountered a number of Issues in developing water conservation
options.  The most serious of these was statutory authority.  In no case was water
conservation a primary or even a secondary statutory goal.  On the other hand,
water conservation was not specifically precluded by statutory language.  In almost
all cases the statutes were silent on the issue of water conservation.  The Task
Force agencies took varying positions on the implication of statutory silence.
The Department of Housing and Urban Development took the position that since
their statutes were silent on water conservation, it could not impose any
conditions on its programs.  It would allow grant and loan funds to be used for
water conservation measures to the extent local agencies determined it to be
appropriate.
     The Economic Development Administration took the position that it would
require or encourage water conservation measures when doing so was consisttnt
with and supportive of its primary statutory goal of encouraging economic
development in depressed areas.
     The Environmental Protection Agency took the position that its statutory
goals were water quality and public health protection.  Where construction grant
assistance is involved, the evaluation of flow reduction measures to reduce
needed reserve capacity is specifically provided for by the Clean Water Act.
Additional legislation would be necessary for it to implement measures unrelated
to these goals.
     The Farmers Home Administration took the position that water conservation
was consistent with its statutory goals and that it would implement all reasonable
water conservation measures.
     Potential levels of Federal Involvement in implementing water conservation
measures included Federal funding. Federal requirements , Federal encouragement,

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 and Federal  assistance.   Recognizing  the validity and significance of geographical,
 historical,  and water resource differences,  the  need for State and local
 flexibility,  public and  congressional  concerns over red tape and program
 complexity,  Agency resources available to implement options, the Task Force
 agencies  generally selected options Involving encouragement and assistance.
 These  decisions also reflected a desire to move  incrementally; that is, to
 encourage and financially support water conservation for a time, and then
 evaluate  its  effectiveness before considering the  Imposition of water
 conservation  requirements.
     The  options selected are expected to result  in significant water conservation.
 However,  the  level  actually realized  is dependent  on a number of factors outside
 the  control of the  Task  Force agencies.   These factors include the level of
 Federal appropriations,  the responsiveness of State and local governments to
 Federal encouragement, revision of HUD minimum property standards, revision of
 national  plumbing codes,  inability of  wastewater source substitution projects
 to compete with  Federally subsidized water prices, public education, redefinition
 of water  short areas to  include those  not maintaining minimum Instream flows or
 groundwater levels, consideration of water conservation 1n lieu of Federal
 rescue projects, revision  of  water law to address use-or-lose requirements,
 coordination  of water resources and water quality programs, and Increased
 eligibility of water conservation devices, including water meters.
 Final Report
     Each Task Force agency was requested to review available options in terms
 of benefits,  costs and data needs and  report to the Task Force on which options
 it would commit to Implement.  The decisions of the Task Force agencies on each
option are briefly summarized on the following pages:
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Department of Agriculture - Farmers Jtome Administration
Water and Waste Disposal Systems for Rural Communities
           Option
1.  Water. Meters; Water Meters can provide
    an Incentive to conserve water by
    making the user more aware of the
    relationship between cost and" usage
    level.  Water meters could be required
    and made eligible for assistance 1n
    all projects.
           Implementation
FmHA regulations have been modified
to require water meters and to make
the costs of necessary meters eligible.
Exemptions possible.
2.  Leakage;  It may be cheaper to
    repair leaky water supply distri-
    bution systems than to expand system
    capacity.  FmHA could give leakage
    evaluation Increased emphasis and
    fund repairs when cost-effective.
FmHA will modify regulations to give
Increased emphasis to leakage analysis
and will fund repairs when cost-effective.
3.  Rate Structures: Water conservation
    and equity would be served by Improved
    water & sewer rate structures.  FmHA
    could require that rate structures be
    equitable.
FmHA will modify Its regulations to
require water and sewer system rate
structures to be equitable.
4.  Public Education: Water and sewer
    system authorities could inform users
FmHA will modify its regulations to
require communities receiving assistance
                                      vii

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    of water conservation measures and
    benefits.  FmHA could require systems
    to develop and Implement water conser-
    vation public education programs.
to develop water conservation public
education programs.
5.  Facility Design: Design engineers
    could Incorporate water conserving
    features more fully Into FmHA funded
    water and sewer facilities.
FmHA will require water conservation
measures to be Incorporated Into the
design and operation of proposed water
and sewer facilities whenever econo-
mically feasible.

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                 Implementation
      EDA will include water conservation
      measures 1n Its agenda of matters to
      be discussed with applicants at pre-
      applicatlon conferences.
Department of Commerce - Economic Development Administration
Public Works and Development Facilities
            Option
1.  Design Criteria: EDA could:
      8 require that a detailed 11st of
        water conservation criteria be
        Incorporated Into project design;
        or,
      0 Inform applicants of water con-
        servation criteria that could be
        Incorporated Into project design;
        or,
      0 prepare and distribute a technical
        guidance manual  which details water
        conserving project design criteria;
        or,
      0 revise regulations to specify design
        criteria, flow reduction measures,
        and maximum allowable Infiltration/
        inflow rates for sewers and leakage
        rates for water supply distribution
        systems.
2.  Water Conservation Plans;  EDA could:
      0 require water conservation plans to be  EDA will  require applicants to prepare
        prepared by all  applicants; or,         water conservation plans in water
      0 require water conservation plans to be  short areas.
        prepared by all  applicants in water-
        short areas; or,
1x

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        allow regional office discretion 1n
        determining where water conservation
        plans are required; or,
        require applicants to consider
        developing water conservation plans.
3. Assistance: Communities desiring to
    prepare a water conservation plan would
    benefit from technical assistance 1n
    the form of a Water Conservation
    Handbook.  The Handbook could provide
    Information on plan components, options,
    available devices, model ordinances,
    rate structures, public Information
    and education programs.  EDA could
    prepare this handbook Independently
    or jointly with other Federal grant
    & loan agencies.
EDA will prepare a handbook, preferably
cooperatively with other Federal grant
& loan agencies, providing general  and
technical guidance on water conservation
practices and covering all of the Federal
assistance programs providing financial
assistance for the construction of water
supply and wastewater treatment systems.
4.  Dev1oeJ:Hg1bnity; Water conservation
    plan elements providing for Installa-
    tion of water conserving devices would
    receive greater Implementation 1f the
    devices were eligible for Federal
    financial assistance.
EDA will require metering as a part
of all water and sewer projects and
will allow metering facilities as an
eligible project cost.  EDA cannot
legally fund water conservation devices
1n residences as eligible costs in
general water projects.  However, when

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EDA funds the construction of a building,
such devices may be Included as an
eligible project cost.

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 Department of Commerce - National Oceanic and Atmospheric Administration
Coastal Energy Impact Program
            Option                                    Implementation
1.  Grant and Loan Criterion: NOAA could
    include water conservation as a
    criterion in providing loans and
    grants for municipal water supply
    and wastewater facilities.
NOAA has determined that this option
would not result in any significant
conservation of water.  It will not
be Implemented.
State Coastal Management Programs
            Option
1.  Planning;  NOAA could issue policy or
    guidance to participating states
    indicating additional State responsi-
NOAA has determined that this option
 would not result in any significant
conservation of water.  It will  not
    bilities to: identify water-short areas,  be Implemented.
    conditions development permits, review
    policies and activities for consistency
    with water conservation needs in
    identified areas.
                                        xii

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Environmental Protection Agency
Construction Grant Program
            Option
1.  Reelamation/Reuse Study Area:
    EPA could encourage applicants to
    extend wastewater reclamation and
    reuse study areas beyond facility
    service areas.
        Implementation
EPA will revise facility planning
guidance to Incorporate this option.
2.  Grantee Authority: EPA could require
    States to develop priority lists such
    that construction grants would only be
    offered to agencies with the authority
    to Implement or assure Implementation
    of all aspects of projects, Including
    flow reduction measures.
EPA determined that this option could
best be addressed through the Section
208 and 106 water quality management
program.  Accordingly, 1t will not be
Implemented through the construction
grant program.
3.  Flow Reduction Analyses:  The thorough-
    ness and rigor of applicant flow
    reduction analyses could be Improved
    if EPA prepared a Flow Reduction
    Handbook.
EPA has budgeted funds so that Handbook
should be available for distribution by
October 1980.
4.  Rate Structures:  EPA could encourage
    applicants to adopt water conserving
    rate structures by preparing guidance
    on all aspects of alternative rate
EPA will provide guidance on water
conserving rate structures in its Flow
Reduction Handbook which is to be issued
by October 1980.
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    structures  1n the  Flow  Reduction  Hand-
    book and by encouraging applicants to
    evaluate surcharges and other  Innovative
    pricing policies In the development of
    their facility plans.
                                              are adequate so that this option will
                                              not be Implemented.
5.  Inflow/Infiltration Analyses;  In order   EPA has determined that Its existing
    to reduce the Infiltration of saline      regulations and guidance 1n this area
    ground water Into sewer systems, which
    may Impede wastewater reclamation and
    reuse, and to reduce the level of inflow
    into sewer system, which may negate the
    economic benefits of flow reduction
    measures, EPA could require or
    encourage more rigorous sewer subsystem
    infiltration and Inflow analyses.
6.  Sewer Ordinance Criteria: In order to
    reduce the Infiltration of saline
    ground water into sewer systems which
    may Impede wastewater reclamation and
    reuse, EPA could Issue regulations
    specifying minimum construction,
    testing and materials criteria
    for new sewer construction in high
    ground water areas.
                                              EPA has determined  that  Its  existing
                                              guidance on  new sewer  construction  is
                                              adequate and sufficient.  This option
                                              will  not be  implemented.
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7.  Training: Public acceptance of waste-     EPA will  Issue guidance implementing
    water reclamation and reuse 1s dependent  this option by October 1980.
    to a degree on well operated, Incident
    free systems.  EPA could encourage states
    to utilize a portion of their S109(b) grant
    funds to conduct  a reclamation and reuse
    training program.

8.  Public Information and Education Program; EPA will  develop an expanded program
    EPA could expand its 5214 public 1nfor-  -by October 1980.  Program elements
    mation and education program on the       will  be implemented as funds and
    land treatment, recycling and reuse of    resources permit.
    wastewater and flow reduction measures.

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                                              all assigned tasks of an approval  plan 1n
Environmental Protection Agency
State and Areawide Water Quality Management Grants
            Option                                     Implementation
1.  Management Agency Authority: Upon         EPA published revised final  water
        f
    approval of a water quality management    quality management regulations on
    plan, only management agencies deslgnat-  May 23, 1979 that require that agencies
    ed by the plan may receive construction   have sufficient authority to Implement
    grants.  EPA could revise Its water
    quality management regulations to         order to be designated.""
    require' that designated management agen-
    cies have sufficient authority to imple-
    ment or assure implementation of all
    tasks assigned them by the plan.  These
    tasks could include any flow reduction
    measures associated with a construction
    grant project.
2.  Priority Systems;  EPA could revise its
    regulations and guidance to water
    quality management agencies encouraging
    them to make recommendations to the
    States on priority systems and lists
    in such areas as study area boundaries,
    capacity expansion projects that could
    be accomplished by flow reduction, and
    projects where flow reduction and
    reclamation and reuse are particularly
    relevant.
                                              EPA issued revised final  regulations
                                              on May 23, 1979 implementing  this
                                              option*
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3.  Planning: Guidance could be Issued to
    water quality management planning
    agencies encouraging them to determine
    the boundaries of water short areas and
        4
    the relationship between water quantity
    and water quality in such areas,
    including a water quality-quantity
    budget where necessary.
4.  Water Conservation Plan:  Water quality
    management regulations and guidance
    could be revised to encourage agencies
    to prepare a water conservation plan
    whenever water quality is adversely
    affected by an inadequate quantity
    of water.
EPA issued revised regulations implement-
ing this option on May 23,  1979?
5.  Funding of Agricultural BMP's:  The
    Clean Water Act authorized funds to
    assist farmers in implementing approved
    best management practices. EPA could
    aggressively assist    the Department  of
    Agriculture in the selection of best
    management practices for fundina.
 EPA is implementing  this  option.
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6.  Permit Conditions: EPA could revise its
    water quality management regulations to
    encourage agencies to develop flow
    reduction measures for inclusion in
    discharge permits.
EPA issued revised final  regulations
implementing this option  on  Hay  23, 1979.
7.  Planning Consistency: EPA could revise    EPA issued  revised  final regulations
    its water quality management regulations  implementing  this option on May 23, 1979.
    to require facility plans to be consist-
    ent with adopted and approved water quality
    management plans.  Consistency could
    include flow reduction measures and
    per capita flows.
                                            *In  August   1979, EPA decided to focus
                                              the limited resources of the Water
                                              Quality Management  (208) program on
                                              the control of  non-point source .
                                              pollution.  Accordingly, implementation
                                              guidance initially  contemplated for
                                              municipal,  point sources pollution
                                              problems, will  not  be issued.
                                     xvm

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Environmental Protection Agency
State Pollution Control Program Grants
              Option
1.  Water Conservation Eligibility: EPA
    program grant regulations and guidance
    could be revised to state that the
    Implementation of water conservation
    measures 1s an eligible cost when
    provided for 1n the State-EPA
    agreement.
          Implementation
EPA Issued revised final regulations
Implementing this option on May 23, 1979.
If sufficient questions arise on these
regulations, EPA will  Issue additional
guidance.
2.  Coordination: EPA could require or
    encourage water quality and water
    resources agencies to coordinate In
    such areas as the quantity and quality
    aspects of water resource plans; water
    rights and allocation decisions; water
    conservation plans; and decisions
    affecting minimum Instream flows and
    ground-water elevations, reclamation
    and reuse.  EPA could address this
    Issue and develop recommendations
    through the Section 102(d) Water
    Allocation-Water Quality Coordination
    Study which 1s to be submitted to the
    Congress.
EPA has determined that 1t cannot
require such coordination; however,
the 1980 State-EPA agreement guidance
encourages coordination of environmental
programs.  Additional guidance encouraging
coordination will be issued to State water
quality agencies by October 1979.  Water
resources-water quality agency coordinatic:
will be thoroughly discussed and recommend
atlons presented in the EPA Section 102fd)
study to be published in the fall of 19§0.
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3.  Water Quantity Criteria;  EPA could
    Issue regulations or guidance requiring
    or encouraging States to adopt quantity
    criteria, such as minimum stream flows,
        *
    ground water elevations or surrogates,
    as part of water quality standards.
EPA will encourage States to adopt
water quantity criteria as part of
water quality standards.  EPA 1s
presently reviewing Its water quality
standards regulations and will determine
whether to go beyond encouragement as part
of this review.  No date for completion
of this review 1s available.
4.  Water Quality Report: EPA could revise
    Its regulations or guidance to expand
    the scope of the water quality report
    prepared biennially by each State to
    Include ground-water quality problems
    and both surface and ground-water
    quality problems caused by an
    Inadequate quantity of water.
EPA Issued guidance on March 8, 1979
encouraging States to expand the report
scope.
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Environments:! Protection Agency
Water Allocation-Water Quality Coordination Study
               Option                                     Implementation
1.  Report to Congress; The EPA Section       EPA will  address these Issues 1n the
    102(d) Water Allocation-Water Quality     study, which will be submitted to the
    Coordination Study could address the      Congress In the fall of 1980.
    relationship of water conservation to
    the water quality-water quantity Issue.
    In particular, Instream flow and ground
    water criteria and management, consumptive
    waste treatment technology, agricultural
    water use, and water law could be
    evaluated.

    Lead EPA Water Conservation Office
                               \
2.  Implementation Oversight:  EPA could       EPA has designated the Water Planning
    establish a lead office for EPA's water   Division, Office of Water  Program
    conservation activities to Insure timely  Operationsas lead EPA water conservation
    Implementation of  the water conservation  office (Mr. Peter Wise, 202 755-6965).
    measures contained 1n this report, and
    to provide a contact point for the
    public.
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Environmental Protection Agency
Clean Lakes Program
             Option
1.  Grant Conditions: EPA could condition     EPA has determined that this option
    Its Clean Lakes grants on the develop-    would yield minimal water conservation
    ment and Implementation of community      and will therefore not Implement It.
    water conservation programs.
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Environmental Protection Agency
Water Pollution Control Regulations
               Option
1.  Background
NPDES Permit Program
                  Implementation
2.  Economic Incentive: Waste collection,     Revised final  NPDES permit regulations
    conveyance, treatment and disposal costs  were Issued on June 7,  1979.
    are generally related to the volume of
    water in which the wastes are dissolved
    or suspended.  The NPDES permit program
    provides permittees with an economic
    Incentive to conserve water.
3.  Protection: The protection of surface
    and groundwater supplies from contami-
    nation by Improper waste disposal 1s a
    means of water conservation*.  The
    provision of program grants to approved
    states to Implement the NPDES permit
    program encourages such water conserva-
    tion.
        Revised final  NPDES permit regulations
        were Issued on June 7, 1979.   The
        Issuance of program grants to States to
        Implement State permit programs continues.
4.  Permit Conditions: NPDES regulations
    could provide for the Inclusion of
    those water quality management and
    facility plan flow reduction measures
    In Section 402 NPDES permits that
    would result 1n water quality benefits.
        Revised final  NPDES permit regulations
        contain such provisions.
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5.  Best Management Practices: NPDES regula-  Revised final NPDES permit regulations
    tlons could provide for the tncorpora-    contain such provisions.
    tlon of requirements for Best Management
    Practices (treatment requirements, opera-
    tion and schedule of activities ancillary
    to Industrial manufacturing or treatment
    processes which may result 1n the runoff,
    spillage, leakaqa or drainage of a toxic
    or hazardous pollutant.

6.  Effluent Guidelines: Section 301(b)(2)(A) Already Implemented.
    of the Clean Water Act states that
    effluent limitations shall require
    best available technology economi-
    cally achievable for non-publlcly
    owned treatment works.  Secftion 304
    (b)(2)(B) requires EPA to specify
    factors to be taken into account 1n
    determining the best measures and
    practices necessary to the achieve-
    ment of such limitations.  EPA could
    specify water conservation as one
    of the factors.
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7.  Standards of Performance: In developing   Already Implemented.
    National Standards of Performance for
    new sources of pollution, EPA could
    consider reducing or eliminating the
    quantity of effluent discharged.

8.  Pollutant Expression: EPA could express,  Already Implemented.   Guidance for
    where possible, NPDES permit limitations  developing new or revised effluent
    1n terms of pollutant mass and concen-    guidelines will be Issued by October 1979.
    tratlon Instead of only concentration.

9.  Conditioning Compliance Schedule: EPA     Revised final  NPDES permit regulations
    could revise NPDES permit regulations to  contain such provisions.
    provide for the conditioning of certain
    Section 301(1) Industrial permit
    compliance schedule extensions on
    Implementation of flow reduction
    measures.
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Environmental Protection Agency
Water Pollution Control Regulations - Section 404 Dredge and Ftll Permits
               Option                                   Implementation
1.  Permit Conditions; EPA could issue        This option will not be implemented
    guidance or regulations to insure that    because such regulations and guidance
    water conservation is taken into account  are beyond the statutory intent.   Other
    in any State or Corps of Engineers
    Section 404 permit or State Section
    208(b)(4)(B) regulatory program
    governing projects proposing to
    construct instream facilities to
    divert or otherwise modify stream
    flow.   Permits could be conditioned
    on an  evaluation of water conserva-
    tion measures in project planning
    and implementation of cost-effective
    measures.
means, including the National Environmental
Policy Act, are available to address
these issues.
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Environmental Protection Agency
Safe Dr-fnklng Water Act
              Option
1.  Background
         Implementation
2.  Distribution System Leakage; EPA could    EPA will  Issue guidance encouraging
    Issue guidance or regulations providing   States and EPA Regions to  Identify
    for State review of distribution system   significant leakage problems In
    leakage as part of sanitary surveys.      sanitary surveys.   The guidance will
                                              also Identify funding sources for
                                              correction.  The guidance'wHl be
                                              issued by October 1979.
3.  Economic Incentive: EPA underground
    Injection control regulations will
    Increase waste disposal costs and
    thereby provide an economic Incentive
    for water conservation.
EPA will  Issue final  underground
Injection control  program regulations
1n January 1980.   EPA Is presently
issuing grants to  States to develop
and Implement State programs.
4.  Protection; EPA underground Injection     EPA will  Issue final regulations in
    control program regulations will protect  January 1980.  EPA 1s presently issuing
    and thereby conserve ground water         grants to States to develop and
    supplies.                                 Implement State programs.

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5.  Report to Congress: EPA Is preparing
    a Water Supply-Wastewater Coordination
    Study for submission' to the Congress.
    Thls^study could examine whether water
    supply shortages win  occur, coordi-
    nated water supply-wastewater planning
    as a means of extending supplies, and,
    the availability and Implementation of
    water conservation measures.
EPA will submit this report to Congress
1n December 1980   addressing these  Issues
                                    xxvlli

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Environmental Protection Agency
Research and Development Program
             Option                                   Implementation
1.  Water Conservation: Section 104(o) of     Due to budgetary constraints, no
    the Clean Water Act provides for water    additional funds for water conservation
    conservation research and Issuance of an  research can be committed at this time.
    annual report to Congress.  EPA could     Report to Congress will  be Issued in the
    commit additional funds to water conser-  fall of 1979.
    vatlon research and issue report to
    Congress.
2.  Reclamation and Reuse: Section 105(d)
    of the Clean Water Act provides for
    wastewater reclamation and recycling
    research.  EPA could commit additional
    funds for research and demonstration
    projects.  Non-potable research funding
    is presently about $140,000/year.
Primary EPA emphasis in this area 1s
potable reuse.  Due to budgetary con-
straints, no additional funds can be
committed at this time.
3.  Agriculture; Section 105(e) of the
    Clean Water Act provides for research
    and demonstration projects to prevent,
    reduce and eliminate agricultural
    pollution.  EPA could commit additional
    funds to research and demonstration
    projects for agricultural best
    management practices.
Due to budgetary constraints no additional
funds can be committed at this tlm.e
                                       xxlx

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4.  Thermal Pollution; Section 104(f) of      The most significant of the research
    the Clean Water Act provides for          needs will be met.
    research and demonstration projects to
    evaluate methods, and their effects, for
    the control of thermal discharges.  The
    effective utilization and conservation
    of fresh water is to be considered.  EPA
    could commit additional funds for this
    research.
                                      xxx

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Department of Housing and Urban Development
Community Development Block Grant Program
Urban Development Action Grants
Small Cities Discretionary Grant Program
                Option
1.  Eligibility;  HUD regulations could be
    revised to specifically provide for the
    eligibility of water conservation
    activities.
         Implementation
HUD will Implement this option,
2.  Water Conservation Plans: HUD could
    request certification or assurance
    that water conservation plans would
    be adopted In those Instances 1n which
    HUD provides funding for water supply,
    water treatment or water collection
                               i
    systems.
HUD policy 1s to avoid the imposition
of added certification or assurance
not specifically mandated by law.
Accordingly, this option will not be
implemented.
3.  Minimum Property Standards; HUD's
    Minimum Property Standards do not
    currently include water conservation
    standards for devices, applicances,
    plumbing, and fixtures.  Where
    substantial rehabilitation and new
    construction is undertaken with block
    grant funds, HUD could implement
    Minimum Property Standard changes and
    recommendations of the Housing Task
    Force on Water Conservation.
                                      xxx 1
HUD will implement this option.

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4.  Consistent Requirements; HUD Block Grant  HUD will  implement this option.
    funds are often used to supplement
    funding from other task force agencies.
    If the requirements of the agencies
    differ on water conservation,
    implementation will be impeded.
    Where HUD block grant funds are used
    to match funds to undertake water
    conservation activities principally
    funded by other agencies, the
    guidelines of those agencies will
    be followed to the extent they are
    not inconsistent with HUD statutory
    authority or regulations.
                                      xxx ii

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Department of Housing and Urban Development
Comprehensive Planning Assistance Program (701)
             Option
1.  Planning^  Water and wastev/ater system
    planning is strongly influenced by
    comprehensive planning programs, such
    as 7Q1.  HUD could encourage or require
    states, local or regional government
    to address water conservation needs
    in plan development.
           Implementation
This matter is still  under considera-
tion.
                                                     *U S GOVERNMENT PRINTING OFFICE: 1980 311-132/68
                                     xxxiii

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