OWM Annual Accomplishments

                          Message from the Director
        I am pleased to present the 2009 OWM Annual Accomplishments Report, which high-
        lights some of our many achievements this past year as we strive to preserve and pro-
        tect our nation's waters.

        Among our accomplishments in 2009, OWM continued to make significant progress in
        promoting sustainable infrastructure and water efficiency. OWM's Sustainable Infra-
        structure Program continued to provide critical outreach,  training, and leadership in the
        areas of effective utility management, asset management, and energy management,
        helping utilities manage the challenges facing our nation's water infrastructure.  In addi-
        tion, WaterSense, the Agency's premier program for encouraging national water effi-
        ciency, continued to expand its suite of WaterSense-labeled products to include the
        first water-efficiency specification for an entire new home and the first ever commercial
        building product—flushing urinals. WaterSense labeled products are saving Americans
        more than 36 billion gallons annually.

        In 2009, OWM and our partners also made significant progress in ensuring timely in-
        vestment  of the unprecedented $4 billion appropriation in financial assistance for
        wastewater utilities under the American Reinvestment and Recovery Act (ARRA) of
        2009. Working with the private  sector, local governments, and states, OWM has
        worked quickly to ensure that all are prepared to properly utilize the funding by Con-
        gress'  February 2010 deadline and that all projects meet ARRA requirements.

        The National Pollutant Discharge Elimination System permit program remains a criti-
        cally important tool for Clean Water Act protections. In 2009, OWM continued its efforts
        to implement the 2008 concentrated animal feeding operation (CAFO) rule, which is
        helping to  reduce nutrient and sediment loads impacting  the health of our waterways.
        OWM also undertook a significant review of surface coal mining actions in central Ap-
        palachia and the first ever scientific analysis of pollutant discharges from commercial
        fishing vessels and non-commercial fishing vessels to better evaluate the impacts of
        these sources on our nation's waters.

        Finally, OWM and our partners made great strides in implementing President Obama's
        Executive  Order on  Chesapeake  Bay Restoration and Protection, releasing, in Novem-
        ber 2009, a draft coordinated strategy for bay protection and restoration.

        As we look to the future, daunting challenges  remain—failing infrastructure, economic
        struggles  at the state and local levels, and unregulated sources of pollution. However,
        with the help and support of our partners from other federal agencies; state, tribal, and
        local governments; and nongovernmental organizations,  we continue to work to meet
        these challenges, ensuring better water quality for generations to come.
                                                           James A. Hanlon, Director
                                                    Office of Wastewater Management
Cover photos, with the exception of the center photo, courtesy of the USDA Natural Resources Conservation Service.

OWM Mission
To help meet the nation's
clean water goals by ensuring
that appropriate regulatory
standards, voluntary manage-
ment approaches, informa-
tion,  financial resources, and
technical assistance are pro-
vided to states, communities,
and  regulated entities.
                                                     Message from the Director  2
                                                                OWM Mission  3
                                                                  About OWM  4
                                                            Program Highlights  6
                                                                  Results Areas
Integrity—We aspire to
the highest levels of fiscal
and scientific reliability for
our staff, programs, and re-

Efficiency—Through stra-
tegic planning and prioritiz-
ing and establishing realistic
goals, OWM has a success-
ful track record,  delivering
substantial environmental
          Clean Water State Revolving Fund  7

                      WaterSense Program  8

          Wet Weather/Stormwater Program  9

         Sustainable Infrastructure Program 10

                           Rural Program 11
                 State & Regional Program  12
State & Tribal Water Pollution Control Grants 13
                        Industrial Program  14
                 Sustainable Communities  15
Results—Setting realistic
goals and reaching or sur-
passing those goals is the
cornerstone of OWM's stra-
tegic plan.

 OWM Leadership
James Hanlon, Director
Randy Hill, Deputy Director
Planning, Information &
Resources Management
Ben Hamm, Director
Municipal Support Division
Sheila Frace, Director
Bill Anderson, Deputy Director

Sustainable Communities
 Kellie Kubena, Chief

Sustainable Management
 Phil Zahreddine, Chief

State Revolving Fund Branch
 George Ames, Chief

WaterSense Branch
  Veronica Blette, Chief
Water Permits Division
Linda Boornazian, Director
Deborah Nagle, Deputy

State and Regional Branch
 Tom Laverty, Chief
 Martha Segall, Asst. Chief

Municipal Branch
 Connie Bosma, Chief

Rural Branch
 Allison Wiedeman, Chief

Industrial Branch
 Marcus Zobrist, Chief
About the Office  of Wastewater


Clean Water is the ultimate goal of all Office of Wastewater Management
(OWM) programs. Overall, our programs are designed to ensure that not
only is our water safe to drink, but that our surface waters and aquatic eco-
systems protect human health; support economic and recreational activi-
ties; and provide healthy habitat for fish, plants, and wildlife. Our office sup-
ports EPA's goals for clean and safe water and healthy communities and

While OWM helps regulate and promote effective and responsible waste-
water treatment, our programs consist of more than just wastewater man-

•   Since its inception, more than 20 years ago,  the Clean Water State
    Revolving Fund programs have provided more than 24,600 low-
    interest loans for wastewater treatment, control of nonpoint source pol-
    lution, and estuary protection.

•   Through WaterSense, we are helping to raise  national awareness of
    water as a scarce resource; encourage water efficiency among utilities,
    manufacturers, retailers, and consumers; and make it easy for consum-
    ers to find products and services that save water while ensuring prod-
    uct performance.

•   Our Green Infrastructure initiative focuses renewed attention on a
    blossoming approach to stormwater management and treats stormwa-
    ter as a valuable resource rather than as a problem. It promotes the
    use  of green roofs, rain gardens, porous pavements, and other tech-
    niques that result in improved water and air quality,  energy and costs
    savings, enhanced water supplies, habitat creation, and source water

•   The National Pollution Discharge Elimination System (NPDES)
    Program controls water pollution by regulating point sources that dis-
    charge pollutants into our surface waters.

•   Our Stormwater Program oversees the control of stormwater runoff
    through the issuance of NPDES stormwater permits and provides out-
    reach and support to EPA Regions and states on issuance and over-
    sight of those permits. It also educates local  governments, industries,
    builders, and the public about the impact stormwater has on our local
    waterways and how to keep  pollutants out of stormwater.

•   Under our Sustainable Infrastructure Program, OWM is  promoting
    widespread adoption of better management practices, water efficiency,
    full-cost pricing, and watershed approaches to  reduce costs and in-
    crease system investments.

•   Through our Sustainable Communities Program,  OWM is providing
    outreach and targeted technical and financial assistance to small com-
    munities and tribal communities to help find the assistance that they
    need to address their wastewater treatment needs.

How We Do Our Work
                                                                            Our Partners
The Office of Wastewater Management (OWM) and its staff of more than
110 employees promote effective and responsible water use, treatment,
disposal, and management and encourage the protection and restoration of
watersheds. OWM is comprised of an Immediate Office of the Director; the
Water Permits Division (WPD); the Municipal Support Division (MSD); and
the Planning, Information and Resources Management Staff (PIRMS).
        Source: USDA/NRCSImage Gallery

JVLSD  manages the Clean Water State Revolving Fund program; assists
small communities and Indian tribes, U.S./Mexico Border communities, and
Alaska Native Villages; and implements special appropriations acts pro-
jects. The division maintains and regularly updates inventories and cost
estimates of existing and needed  future municipal wastewater treatment
works and capital investments to meet the goals of the Clean Water Act. In
addition, the division publishes technical information about conventional
and innovative municipal wastewater collection systems and treatment
technologies and provides support and technical assistance to EPA Re-
gions and states to promote the proper management of on-site and decen-
tralized wastewater systems nationwide. Through the WaterSense pro-
gram, it also is promoting a national ethic of water efficiency and market
enhancement for water-efficient products, programs, and practices.

In 2009, MSD underwent a structural reorganization to more effectively
meet its goals and responsibilities. In addition to creating a separate branch
for the  WaterSense program, MSD has also made adjustments to the exist-
ing branches by strategically shifting several responsibilities and providing
new titles that more accurately reflect the branches' core missions. These
changes will ensure that MSD is well positioned to provide the needed sup-
port for the cost-effective management of community water resources.

>V PD provides national program direction to the National Pollutant Dis-
charge Elimination System permit, pretreatment, and sewage sludge man-
agement programs under sections 401, 402, and 405 of the Clean Water
Act, including: development of regulations, policy, and guidance; develop-
ment of national strategies; implementation management; compliance as-
surance; and overview of Regional and state operations. The division also
coordinates with the Office of Science  and Technology in the development
of national standards for point source controls, indirect dischargers, and
biosolids use and disposal.
    EPA Regional Offices

    State, Interstate, Tribal,
    and Local Programs

    Water and Wastewater


    Private Industry

    Regulated Community

    Academic Institutions

    Private Citizens

In FY 2009, OWM's programs,
including state and tribal as-
sistance (excluding American
Reinvestment and Recovery
Act funding), accounted for
more than $974 million, or
nearly 13 percent of EPA's

Through its programs and
initiatives, OWM promotes
compliance with the require-
ments of the Clean Water Act
(CWA). Under the CWA,
OWM works in partnership
with EPA's Regions, states,
local governments, and tribes
to regulate point source dis-
charges into surface waters
such as wetlands, lakes, riv-
ers,  estuaries, bays, and

   Our Work

The NPDES Permit Program

Clean Water State Revolving

Clean Watersheds Needs

Sustainable Infrastructure

WaterSense Water Efficiency

Onsite/Decentralized Waste-
water Systems Program

Innovative Management
Systems (EMS, Asset
Management,  CMOM, etc.)

Infrastructure Grants
(Congressional Earmarks)

Outreach, Technical
Assistance, and Training

State and Tribal Program
Assistance (CWA Section

Small Communities

U.S./Mexico Border

Wastewater Treatment

Water Quality  Cooperative
Agreements (104(b)(3))
Highlights —  2009 Results

Clean Water State Revolving Fund — Clean Water state Revolv-
ing Fund (CWSRF) programs provided $5.2 billion in 2009, which included
$430 million from the American Reinvestment and Recover Act (ARRA), to
fund water quality protection projects for
wastewater treatment, nonpoint source
pollution control, and watershed and estu-
ary management. To date, the CWSRFs
have provided $74 billion, funding 24,688
low-interest loans.1
                                      Source: USDA/NRCSImage Gallery
ARRA Implementation — OWM
made great strides in designing and imple-
menting policies, guidance, and training
materials to help states apply for the $4
billion in ARRA funding obligated by Con-
gress for the CWSRF programs. By the end of 2009, almost 1,400 funding
agreements had been signed in all 50 states and Puerto Rico, totaling more
than $2.96 billion, and EPA was well situated to have all funding under con-
tract by Congress' February 2010 deadline.

Green Infrastructure — OWM collaborates with ERA'S Office of Wet-
lands, Oceans, and Watersheds in the development of technical guidance for
federal facilities on implementing stormwater runoff requirements for federal
projects under Section 438 of the Energy Independence and Security Act.
This guidance will help reduce water quality problems from stormwater runoff
from development and redevelopment at federal facilities.

Implementing the Chesapeake Bay  Executive Order — OWM
worked to  help implement President Obama's May 2009 Executive Order on
Chesapeake Bay protection and restoration. OWM, participating in a cross-
Agency  effort, developed and reviewed key sections of the report,  The Next
Generation of Tools and Actions to Restore Water Quality in the Chesapeake
Bay, which indentifies recommended pollution control strategies and  actions
to protect and restore the bay watershed.

Priority Permits  — EPA and author-
ized states exceeded the national commit-
ment for issuing priority permits by 50 per-
cent, issuing more than 1,110 priority per-
mits in FY09. This is the fourth consecutive
year the national goal has been exceeded.

WaterSense — The WaterSense pro-
gram released its final single-family new
home specification, creating the first na-
tional, voluntary water-efficiency specification for an entire new home. Wa-
terSense-labeled new homes will be 20 percent more water efficient than typi-
cal new homes.
                                      Source: USDA/NRCS Image Gallery
                            Tribal Section 106 Program — OWM published a status report for
                            the Tribal Section 106 Program, highlighting tribal achievements over the pro-
                            gram's 20-year history in developing comprehensive, effective water quality
                            programs and improving and protecting water quality in Indian Country.
                             CWSRF National Information Management System. U.S. EPA, Office of Water. Data is reported on an annual
                             basis, covering the period from July 1 to June 30.

Clean Water State Revolving Fund
Clean  Water
State Revolving Fund
                         In 2009, Clean Water State Revolving Fund pro-
                         grams provided $5.2 billion, which included $430
                         million in ARRA funding, for 1,971 loans to com-
                         munities for water quality protection projects.
                         These projects included wastewater treatment,
                         nonpoint source pollution control, and watershed
                         and estuary management. CWSRFs offer low
                         interest rates, flexible terms, and assistance to a
                         variety of borrowers and partnerships with other
 funding sources. Over the last 22 years, CWSRFs have funded $74 billion
 through 24,688 low-cost loans for a variety of important water quality pro-
 jects that help communities meet environmental standards and ensure pub-
 lic health.2

 New Employee Training Workshop
 OWM is committed to providing Regional and headquarters SRF staff with
 the resources necessary for effective program management. To support this
 commitment, a training workshop was held in Chicago, Illinois, from May 5 -
 7, 2009 that provided basic training to new employees on conducting over-
 sight of the SRF programs. Participants were shown how to  review core
 SRF documents, including intended use plans and annual reports as well as
 the proper procedure for conducting annual onsite reviews.

 2009 CWSRF PISCES Awards
 The 2009 PISCES Awards (Performance and Innovation in the SRF Creat-
 ing Environmental Success) recognized states that have shown exceptional
 leadership and effectiveness in protecting water quality and financial integ-
 rity through the CWSRF program. A PISCES Award was presented to one
 state from each of the ten  EPA Regions. These  recipients demonstrated
 outstanding performance,  creativity, and integrity in the CWSRF program.
 This was the fifth consecutive year that OWM has recognized PISCES
 Award winners.  Recipients were recognized and presented with their
 awards at the national SRF workshop hosted by the Council of Infrastructure
 Financing Authorities in Seattle, Washington, in  November 2009.

 2009 CWSRF Conference
 The 2009 CWSRF conference took place on July 14 -15 in Chicago, Illinois.
 This national conference was organized to provide CWSRF managers and
 senior staff the opportunity to discuss the strategic management of the
 CWSRF programs. Participants explored how best to integrate water quality
 focused  management with CWSRF financial management and how to use
 the CWSRF to maximize public health and water quality protection benefits.
 With approximately 130 attendees from EPA headquarters and Regional
 offices as well as managers and staff from 38 states, the conference pro-
 vided an excellent opportunity for participants to network with colleagues
 from across the country and share fresh ideas about collaboration, innova-
 tion, and what the future of the CWSRF should look like.

 Sustainable Communities Partnership
 Plans are underway for the CWSRF to play a critical role in the HUD-DOT-
 EPA Interagency Partnership for Sustainable Communities by sponsoring a
 CWSRF pilot program. Under this program, several states will receive tech-
 nical assistance from EPA to modify or expand their CWSRF programs to
 encourage development under the principles of the sustainable communities
 partnership. The goal is to use the results and lessons learned from the pilot
 program to promote more widespread adoption of practices that encourage
 states to reinvest in their existing infrastructure systems. At the conclusion
 of the pilot program,  EPA will publish a best  practices guide for all CWSRF
 programs that wish to adopt the principles of sustainable development.
2  CWSRF National Information Management System. U.S. EPA, Office of Water. Data is reported on an
  annual basis, covering the period from July 1 to June 30.
3  CWSRF Benefits Reporting System. U.S. EPA, Office of Water.
                                                                      American Reinvestment
                                                                          and Recovery Act

                                                                      Signed February 17, 2009, the Ameri-
                                                                      can Recovery and Reinvestment Act
                                                                      of 2009 provided an unprecedented
                                                                      $4 billion in funding for CWSRF pro-
                                                                      grams to construct high-priority waste-
                                                                      water infrastructure projects. States
                                                                      were required to provide at least 20
                                                                      percent of their grants for projects that
                                                                      addressed green infrastructure, en-
                                                                      ergy or water efficiency, or environ-
                                                                      mentally innovative activities.

                                                                      During 2009, OWM designed and
                                                                      implemented policies, guidance, and
                                                                      training materials to assist states in
                                                                      applying for ARRA funding and to
                                                                      make modifications to its tracking and
                                                                      reporting systems to accommodate
                                                                      new ARRA and Office of Management
                                                                      and Budget requirements. OWM also
                                                                      visited 49 out of the 51 CWSRF pro-
                                                                      grams, providing additional support to
                                                                      the states' efforts in implementing

                                                                      EPA's progress in implementing
                                                                      ARRA has been significant. By the
                                                                      end of December, nearly 1,400 fund-
                                                                      ing agreements had been signed, in
                                                                      all 50 states and Puerto Rico totaling
                                                                      more than $2.96 billion. Over $700
                                                                      million went to fund green infrastruc-
                                                                      ture, energy or water efficiency, and
                                                                      environmentally innovative projects.
                                                                      The Agency is on track to have all of
                                                                      the Recovery Act Clean Water funding
                                                                      under contract by the February 2010
                                                                      Congressional deadline. OWM's ef-
                                                                      forts have been vital to ensuring that
                                                                      all of the clean water federal stimulus
                                                                      funding is reaching communities, fund-
                                                                      ing desperately needed projects to
                                                                      build and restore water utilities and
                                                                      create and save jobs.3

             OF THE YEAR
Partner of the Year
More than 1,000 WaterSense
partners help Americans save 36
billion gallons of water each year.
EPA named five of them as Wa-
terSense Partners of the Year for
2009, each in one of four catego-
ries: Promotional Partner of the
Year (Large Utility): Cobb County
Water System, Marietta, GA;
Promotional Partner of the Year
(Small Utility): James City Service
Authority, Williamsburg, VA;
Manufacturer Partner of the Year:
Kohler Co., Kohler, WS; Retailer
of the Year: Lowe's Companies,
Inc., Mooresville,  NC; and Irriga-
tion Partner of the Year: Brian
Vinchesi, Pepperell, MA.

Partnerships and
More than 1,600 organizations
and individuals have partnered
with WaterSense to help advance
its mission of saving water for
future generations. Their efforts,
combined with those of the EPA,
have increased awareness of the
need for water efficiency, in-
creased availability of Wa-
terSense-labeled products that
save water and perform well, and
raised the visibility of the Wa-
terSense brand. To spread the
word about WaterSense, the pro-
gram relies on its Website (http://
which was redesigned in Decem-
ber; public service announce-
ments; staff-authored articles in
trade and consumer publications;
and other media coverage. In
2009, our combined media out-
reach efforts  have resulted in
more than 1.6 billion media
"impressions" with a correspond-
ing advertising value totaling more
than $32.5 million, more than
doubling of the exposure earned
by the program in 2008.
WaterSense Program

WaterSense has quickly become a national symbol for
water efficiency among utilities, plumbing manufacturers,
retailers, and consumers, saving Americans more than
36 billion gallons annually. As of the end of December
2009, more than 1,500 bathroom sink faucets and faucet
accessories and 400 toilet models had earned the Wa-
terSense label, which helps consumers make informed
decisions when buying water-efficient products.

First Commercial Building Product
In October, EPA released its first WaterSense specifica-
tion for a commercial building product — flushing uri-
nals. These WaterSense-labeled urinals will use 50 percent less water than
standard urinals, which could save a business 40,000 gallons of water per year
for every model installed.

WaterSense for the Commercial and Institutional Sector
The WaterSense program sought input on a potential WaterSense commercial
and institutional program in 2009. As a first step, the program released a white
paper, "Water Efficiency in the Commercial and Institutional Sector: Considera-
tions for the WaterSense Program," which summarized the best available re-
sources that EPA can use for planning activities to support the sector.

New Homes
In December, EPA released  its final WaterSense single-family new home speci-
fication, creating the first national, voluntary, water-efficiency specification for an
entire new home. EPA worked with hundreds  of stakeholders over a three-year
period to develop the specification, which was designed to complement existing
green building programs. WaterSense-labeled new homes, which  will be 20
percent more water efficient than typical new homes, must be independently
inspected and certified by an EPA-licensed certification  provider. The new
homes will feature WaterSense-labeled plumbing fixtures, ENERGY STAR-
qualified appliances (if installed), water-efficient landscaping, and  hot water
delivery systems that deliver hot water faster,  so homeowners don't waste wa-
ter or energy waiting at the tap.
WaterSense-labeled Showerheads
In September, the Agency released a draft WaterSense
specification for showerheads for public comment. With the
specification finalized in early 2010, consumers will soon
find WaterSense-labeled showerheads and be able to reno-
vate their bathrooms with a full suite of WaterSense-labeled
products—toilets, faucets, and showerheads. As one of the
leading uses of water in the home, showering accounts for
nearly 17 percent of residential indoor water consumption.
By installing the high-efficiency showerheads, the average
household could save more than 2,300 gallons of water and
enough energy to power their television use for about a year.

Weather-Based Irrigation Controllers
In November, EPA released its draft WaterSense specification for weather-
based irrigation controllers, marking the first irrigation product to be considered
for the WaterSense label.  Once the specification is finalized, homeowners and
irrigation professionals will be able to retrofit with WaterSense-labeled irrigation
controllers, which create or modify irrigation schedules, to meet landscape wa-
ter needs based on real-time weather data. Replacing a standard timer control-
ler with a WaterSense-labeled controller could save  more than 11,000 gallons
of water annually.

Wet Weather/Stormwater Program

Urban wet weather sources remain an important EPA priority because of the
potential impacts on  human health and the environment. Urban wet weather
sources are among the most significant sources of water pollution today that
EPA can address through the Clean Water Act. Adverse effects from wet
weather are typically tied to the condition, type, and extent of the  infrastructure.
Regulatory Programs Incorporate Green Infrastructure
Increasingly, green infrastructure approaches are being incorporated into storm-
water permits.  In 2009, two stormwater permits were finalized, in Anchorage,
Alaska and in West Virginia, requiring the inclusion of green infrastructure ap-
proaches. These approaches provide enhanced environmental benefits by re-
quiring that discharges from all new development mimic natural  hydrologic con-

Also in 2009, OWM and EPA's Office of Wetlands, Oceans, and Watersheds
jointly released the Technical Guidance on Implementing the Stormwater Run-
off Requirements for Federal Projects under Section 438 of the Energy Inde-
pendence and Security Act for federal facilities stormwater management. The
technical guidance provides background information, case studies, and guid-
ance on meeting the new stormwater runoff guidelines.

Green Infrastructure Workshops and Webcasts
In 2009, OWM conducted  a series of workshops and Webcasts for municipal
managers and others on how to manage wet weather events with green infra-
structure. Nine in-person workshops were held throughout the country. In addi-
tion, a series of six Webcasts were held on a variety of topics, including the
benefits of green infrastructure; revising local, plans, codes, and ordinances;
water harvesting; models and calculators; site planning and design considera-
tions; funding and  incentives; and retrofits (i.e., green streets). All Webcasts are
available for viewing on OWM's National Pollutant Discharge Elimination Sys-
tem program training Website (www.epa.gov/npdes/training) and for download
as podcasts.

EPA Promotes Green Capitols Project
The Agency is working to promote the Green Capitols Project, which facilitates
and highlights green infrastructure retrofits in and around state capitol buildings.
EPA has provided design assistance to several state-municipal partnerships
committed to implementing wet weather management projects using green in-
frastructure approaches on capitol grounds and streets and sidewalks.
Green Infrastructure
Five installments of the Green
Infrastructure Municipal Hand-
book series were released in
2009. The series provides rela-
tively short, easy to read "how to"
information on topics of interest to
municipal managers. The topics
covered include: retrofit policies,
rainwater harvesting policies,
incentive mechanisms, green
streets, and the Water Quality
Scorecard (in partnership with
EPA's Smart Growth program), a
tool to evaluate and modify local
codes and ordinances to facilitate
implementation of green infra-
In 2009,
Green Jobs Training Catalog, the
Green Streets Conceptual Design
Guide, and electronically distrib-
uted bimonthly bulletins.

Sustainable Water
Leadership Program
EPA redesigned its long-standing
CWA Recognition Awards program
to recognize utilities that are mov-
ing toward sustainable operations.
The new "Sustainable Water Lead-
ership Program, or SWLP," will
focus on effective utility manage-
ment, water and energy efficiency,
and watershed approaches, includ-
ing source water protection. Under
the SWLP, wastewater, drinking
water, and stormwater utilities, as
well as managed decentralized
systems, will be able to earn rec-
ognition for sustainable practices
as well as awards for outstanding
efforts in topic areas, which EPA
will select for each awards cycle.
EPA will announce the first Recog-
nition of Sustainable Water Sys-
tems in fall 2010.

Sustainability Policy
Based on directions contained in
the President's FY 2010 budget,
OWM led an effort to develop a
draft SRF Sustainability Policy for
the Clean Water and Drinking
Water SRF programs. Working
with a group of leading utilities and
state SRF managers, the draft
policy was submitted to OMB in
September 2009. The draft policy
stresses the importance of ensur-
ing that projects receiving federal
SRF funds emerge from sustain-
able planning processes and em-
ploy best management practices
and are tied closely to community
Sustainability goals.

Clean Watersheds
Needs Survey (OWNS)
States, territories, and the District
of Columbia completed 2008 data
entry in April using the new CWNS
Data Entry Portal. In June, EPA
hosted state and Regional CWNS
coordinators at the CWNS 2008
End of Survey Meeting in Wash-
ington, DC. Participants provided
suggestions for improving the data
collection process, reviewed the
CWNS 2008 Report to Congress,
and began plans for CWNS 2012.
The CWNS 2012 State-EPA Work-
group was initiated in November.
The CWNS 2008 Report to Con-
gress was delivered to OMB for
review in October.
Sustainable Infrastructure Program

Our nation's water infrastructure systems are aging, and much of it will be reach-
ing the end of its useful life in the next 20 to 40 years. To address the mounting
needs, OWM is partnering with other EPA offices and across the sector. Our
Sustainable Infrastructure Program aims to change the way the country views,
values, and manages its water infrastructure. This was a year of great progress
for the program, and some of the accomplishments are highlighted below.

Effective Utility Management
Building on the ground-breaking agreement with six national associations to pro-
mote effective utility management in the water sector, OWM worked with industry
partners to release a number of tools that all parties are promoting. To accom-
pany the "Effective Utility Management: A Primer for Water and Wastewater Utili-
ties," which walks through a description of the 10 attributes of effective utility
management and a simple procedure for prioritizing those areas of most impor-
tance to a specific utility, EPA and our partners released an on-line interactive
version of the primer, which can be used both in a workshop setting and also by
individual utilities on site. In early spring 2009, the partnership released an initial
set of case studies and sponsored a pre-conference workshop on Effective Utility
Management at WEFTEC 2009 and at the WEF/AWWA Utility Management

Asset Management
OWM continued to expand its efforts to move asset management approaches
into the mainstream of utility practice. In 2009, OWM continued  its ongoing na-
tional  training program with seven two-day sessions. Workshop materials were
expanded and compiled into a stand-alone training CD, serving  as both a take
home package for workshop participants and a resource for those unable to at-
tend the sessions. During 2009,  OWM began the process of working in conjunc-
tion with a major university to present the workshop through distance  learning,
which will be available in the fall of 2010.  In  addition, OWM began development
of a more advanced course that will focus on the developing risk assessment
and optimal renewal techniques, which will be available in September 2010.

In 2009, OWM also collaborated with EPA's Office of Ground Water and  Drinking
Water as they released the Check Up Program for Small Systems (CUPSS), free
asset management software that is geared towards small drinking water and
wastewater facilities.

In addition, OWM has an ongoing collaboration with the Department of Transpor-
tation to foster the cross-sector process and practice of asset  management.
OWM worked in collaboration with its counterparts at Federal  Highways to de-
velop  and publish case studies on five communities that are leading edge exam-
ples of cross-sector asset management. Additional outreach is underway with
several other federal agencies to increase cross-agency collaboration.

Energy Management
Using the energy  management guidebook developed in partnership with  EPA
Region 1, OWM  completed three additional workshops in Regions 3, 6, and
8. To date, OWM  has sponsored a total of 11 workshops with  over 1,000 partici-
pants. As a result of these workshops, the EPA Regions are working with over
100 utilities to help them develop energy management programs based on the
energy management guidebook. This work is helping to spark both awareness
and progress towards energy efficiency across the country.

In addition, to promote the implementation of energy conservation and recovery
at wastewater treatment facilities, OWM is developing two studies that include
technical and financial information on various technology options. The first fo-
cuses on energy conservation measures and high-efficiency equipment and op-
erational modifications that result in energy savings with reasonable payback
periods. The second focuses on combined heat and power technologies for pub-
licly owned treatment works (POTWs) that utilize anaerobic digestion  to produce
digester gas. Both studies are being developed, and  final reports will be available
by fall 2010.

Rural  Program
The rural program strives to protect and improve water quality by developing
and implementing National Pollutant Discharge Elimination System (NPDES)
programs that target rural areas and rural populations. The program develops
regulations, policies, technical implementation guidance, and outreach for EPA
Regions, states, and the general public. Significant achievements in 2009 in-
clude the following:
                                 1 NPDES General Permit for Pesti-
                                  cide Discharges
                                  EPA's Aquatic Pesticides rule, promul-
                                  gated on November 27, 2006, was va-
                                  cated by the Sixth Circuit Court of Appeals
                                  on January 7, 2009. The court ruled that
                                  discharges of chemical pesticides that
                                  leave a residue and discharges of all bio-
                                  logical pesticides will be required, as of
April 9, 2011, to obtain NPDES permits. EPA estimates that the Sixth  Circuit's
ruling will affect approximately 365,000 pesticide applicators nationwide that
perform 5.6 million pesticide applications annually. The court's decision covers,
at a minimum, the following pesticide uses: mosquito and other flying insect
pest control, aquatic weed and algae control, aquatic nuisance animal  control,
and forest canopy pest control.

During the past year, OWM has worked closely with the Office of Prevention,
Pesticides, and Toxic Substances to collect and analyze data on  pesticide ap-
plications (including  labeling requirements, pesticide uses, best management
practices employed to minimize the impact of pesticides on water quality, and
existing state water quality standards for pesticides). EPA has drafted  an
NPDES Pesticides General Permit that it will issue for areas where EPA re-
mains the NPDES permitting authority. The draft permit will be available for
public review and comment in spring 2010. OWM has collaborated closely with
its co-regulators so that states will be able to develop their permits by April  2011

Implementing the 2008 CAFO
In 2009, OWM worked to provide a clear
and consistent understanding of the 2008
revised concentrated animal feeding op-
eration (CAFO) rule through various public
outreach efforts, such efforts included a
widely attended public Webcast, regular
conference calls with the Association of
State and Interstate Water Pollution Con-
trol Administrators, and many sector-
specific presentations at various national meetings, including the National Cat-
tlemen's Beef Association and the 2009 International Poultry Exposition. Addi-
tionally, OWM hosted a three-day training course for 65 Regional and state
regulatory authorities to provide information on how to review nutrient manage-
ment plans (NMPs) and include terms of the NMPs in the permit.

OWM also continued to work with EPA Regions and states to provide ongoing,
EPA-sponsored technical support through an $8 million grant that provides live-
stock operations with nutrient management plans and environmental assess-
ments at no cost to the operations. OWM assisted  authorized states with pro-
gram implementation including NPDES permit and program reviews for Illinois,
New York, Maryland, Missouri, and Pennsylvania as well as Regions 6 and 10
in their development of EPA CAFO general permits. Accordingly, in 2009, OWM
began revising existing guidance for permit writers and producers on the CAFO
regulations to reflect the 2008 revisions.
Source: USDA/NRCSImage Gallery
                                      Chesapeake  Bay
                                      Protection &
                                      On May 12, 2009, President
                                      Obama issued Executive Order
                                      13508 on Chesapeake Bay Pro-
                                      tection and Restoration. The
                                      Executive Order set 2009 dead-
                                      lines for EPA to develop a Water
                                      Quality Report, referred to as the
                                      "202(a) report," and for seven
                                      federal agencies to develop a
                                      Draft Strategy for Protecting and
                                      Restoring the Chesapeake Bay.

                                      To develop the water quality
                                      report and draft strategy, OWM
                                      led four cross-office workgroups,
                                      on animal agriculture, stormwa-
                                      ter, POTWs and onsite systems,
                                      and worked in consultation with
                                      the states, DC, and key stake-

                                      OWM assisted in developing the
                                      next generation of federal initia-
                                      tives to be included in the report
                                      and strategy to reduce pollution
                                      in the Bay watershed from con-
                                      centrated animal feeding opera-
                                      tions, municipal stormwater,
                                      wastewater treatment facilities,
                                      and onsite disposal systems.

Priority Permits
In 2009, EPA and authorized states
issued 1,118 priority permits, ex-
ceeding the national commitment of
743 permits.

Permit Backlog
For the third year in a row since
OWM began tracking the backlog in
1999, states and Regions met the
national goal of 90 percent current
for individual and non-stormwater
general permits.

Permit Quality Reviews
OWM continued to assess the
integrity of the national NPDES
program by performing permit qual-
ity review (PQRs).  In 2009, PQRs
were conducted in Regions 6 & 10.

Action Items
Since 2005, Regions, states, and
territories have committed to ap-
proximately 331 action items.
These action items were identified
during the 2004 Permitting for Envi-
ronmental Results review of state
and Regional NPDES permitting
programs and the most recent
PQRs and help improve program
integrity and effectiveness. By the
end of FY09, 229 of the action
items (69%) were completed.

Petitions to Withdraw
State NPDES Programs
The Petition Response Team man-
ages an Agency-wide effort to re-
solve petitions asking EPA to with-
draw the authority of states that
administer the NPDES permit pro-
gram. In 2009, petitions to withdraw
three state programs (in Washing-
ton, Michigan, and Pennsylvania)
were resolved. Since 2001, a total
of 23 withdrawn petitions have
been resolved.
State  & Regional Program

The State & Regional Program provides technical and policy support to help imple-
ment the NPDES program. Through coordination with states and EPA Regions, the
program guides consistent and effective translation of water quality goals and stan-
dards into permit limits and conditions. It resolves legal barriers that prevent opti-
mal program implementation and provides proactive and consistent management
of external legal drivers. It also provides timely information on the integrity of the
NPDES program implementation while working cooperatively to produce efficient
processes and measurable results.

Chesapeake Bay Executive Order
OWM has taken an active role in  implementing the Chesapeake Bay Executive
Order. OWM developed and  reviewed key sections of the report titled,  The Next
Generation of Tools and Actions to Restore Water Quality in the  Chesapeake Bay.
These sections related to challenges,  policy, and future regulatory actions in the
bay. OWM also has been providing ongoing technical expertise to the workgroups
tasked with creating guidance for implementing the Chesapeake Bay Total Maxi-
mum Daily Load (TMDL).

Mountaintop  Mining
In 2009, EPA initiated a comprehensive review of surface  coal mining in central
Appalachia focusing on Clean Water Act Section 402 and  404 permitting, stemming
from the Memorandum of Understanding among the U.S.  Department of the Army,
the U.S. Department of the Interior, and the U.S. Environmental Protection Agency
Implementing the Interagency Action Plan on Appalachian Surface Coal Mining
(June 11, 2009). Working with EPA Regions 3, 4, and 5, OWM conducted a permit
quality review for surface coal mining NPDES programs in Kentucky, West Virginia,
Ohio, and Tennessee. In addition, OWM staff worked with staff in OW, OST,
OWOW, ORD, OGC, OECA, and the Administrator's Office to develop guidance for
better environmental permitting of surface coal mines.

Climate  Change
Building upon the 2008 National Water Program's Climate Change Strategy, OWM
continued assessing how climate change will affect the NPDES permit program
and is developing a white paper to evaluate how to adapt  the current NPDES pro-
gram to address the impacts of climate change.

Urban Waters
In March 2009, EPA introduced the Urban Waters initiative to  focus on  helping
communities, particularly underserved communities, to reconnect with and revital-
ize their water environments. OWM  has  been involved in several Urban Water
workgroups and is developing workplans for such topics as integrating green infra-
structure into stormwater management plans, reducing combined sewer overflows,
and promoting wastewater operation certification training.

NPDES Permit Writers Training Course
In 2009, the NPDES  Permit Writers Training was held in five locations (Phoenix,
AZ, Portland, OR, Austin, TX, Atlanta, GA, and  Woodbridge, VA) and provided
basic NPDES training to approximately 200 students. This course is EPA's principal
tool to provide state and EPA permit writers with  a comprehensive understanding of
the core tenets of the NPDES permit program and to promote consistency across
the states and Regions. The course has expanded and evolved over the past 20
years to address program changes and is highly rated by  participants.

NPDES Permit Writers Web-Based Training
In 2009, seven modules from the classroom version of the NPDES Permit Writers
Training were converted into a narrated, Web-based training format and posted on
EPA's NPDES Website. State and EPA Regional permitting staff, as well as stake-
holders and the public, can now access this training and learn the basics of EPA's
recommended approach for developing NPDES  permits. This Web-based training
was well received by state permitting agencies that have had difficulty sending staff
out of state to attend classroom training. Efforts to convert all of the modules to the
Web-based format are continuing, and we hope to complete the series in 2010.

State &  Tribal Water Pollution  Control


Section 106 of the Clean Water Act authorizes EPA to provide federal assis-
tance to states (including territories and the District of Columbia), interstate
agencies, and  Indian tribes to establish and implement ongoing water pollution
control programs. Prevention and control measures supported by water quality
management programs include ambient water quality monitoring, water quality
standards development, total maximum daily load development, NPDES per-
mitting, enforcement, advice and assistance to local agencies, and the provi-
sion of training and public information.

State Water Pollution Control Grants
Increasingly, EPA and states are working together to develop basin-wide ap-
proaches to water quality management. The Section 106 Grant Program is
helping to foster a watershed protection approach at the state level by looking
at states' water quality problems holistically, and targeting the use of limited
finances available for effective program management.  In 2009,  more than
$175 million in Section 106 Grant funding was provided to states and interstate
agencies to help restore impaired water bodies.

                                  Tribal Water Pollution Control
                                  For tribes, Section 106 grants are a cru-
                                  cial, dedicated source of funding for de-
                                  veloping, maintaining, and expanding
                                  programs designed to control, prevent,
                                  and eliminate water pollution. Tribes be-
                                  gan receiving Section 106 funds in  1989.
                                  Since then, the tribal set-aside has grown
                                  from less than $1 million to approximately
                                  $25 million,  in 2009.  Of the 562 federally
recognized tribes, approximately 377 meet the criteria  to receive Section 106
funding, and 67% (252) of these tribes are currently eligible to receive grants.

Tribes across the country are using Section 106 grants to  identify and proac-
tively address water quality priorities and concerns. Tribes can use Section
106 grants for a wide range of water pollution control activities,  including: as-
sessing water quality on tribal lands, establishing water quality goals and ob-
jectives, conducting regular monitoring and data reporting, and  implementing
quality assurance processes to ensure data reliability.

State and Tribal Water Monitoring Initiative
In 2009, OWM continued its work with EPA's Office of Wetlands, Oceans and
Watersheds to enhance state monitoring  strategies and implement a multi-
year statistically valid survey of the nations waters. Using approximately $18.5
million per year, OWM and OWOWare working with states and tribes to en-
hance their water quality monitoring pro-    	
grams and report on water quality  monitor-
ing  data collected through the statistically
valid surveys. This will allow EPA,  states,
and tribes to continue to report on  the con-
dition of the nation's waters and make sig-
nificant progress toward assessing trends
in water condition in a scientifically defensi-
ble  manner. In 2009, the National Lakes
Assessment was completed. This assess-
ment will provide the first ever baseline
study of the condition of the nations lakes.
Tribal Section 106
Program Status
In December, the Agency published
a status report for the Tribal Section
106 Program, which highlights tribal
achievements over the program's
20-year history in developing com-
prehensive, effective water quality
programs and improving and pro-
tecting water quality on tribal lands.
         Tribal Water Quality Programs:
       Using Clean Water Act Section 106
      Funding to Protect Water Resources

                   ST.IIUS Report
The Tribal Water Quality Programs:
Using Clean Water Act Section 106
Funding to Protect Water Re-
sources Status Report:
•   Provides an overview of tribal
    water quality programs,
•   Describes the critical water
    quality activities that tribes
    fund with Section 106 grants,
•   Highlights the rapid growth of
    the program over the past 20
•   Outlines current and future
    challenges facing tribal water
    programs, and
•   Illustrates how tribes have
    used this funding to protect
    water resources across the

                                Industrial  Program
OWM, in coordination with EPA Of-
fice of Water's Office of Science and
Technology, EPA's Office of Re-
source Conservation and Recovery,
and WM Healthcare Solutions, Inc.,
sponsored two Webinars in 2009 on
emerging contaminants. The Webinar
topics included efforts to investigate
and control dental mercury amalgam
discharges to publicly owned treat-
ment works, the management of
unused Pharmaceuticals, and EPA's
proposed universal waste rule. Both
Webinars have been archived and
can be accessed at: http://
Wastewater discharges from industrial sources may contain pollutants at
levels that affect the quality of receiving waters. OWM's industrial program
works to protect and improve water quality through technology-based and
water quality-based permitting. Stormwater, pretreatment, and industrial
permitting are within its scope. As part of the NPDES permit program, it
establishes specific requirements that control the pollutant discharges from
industrial sources.

Development of Draft Report
to Congress on Vessel
On March 8, 2009, EPA proposed a
report to Congress on vessel dis-
charges, a first of its kind scientific
analysis of the level of pollutants in
wastewater discharges from commer-
cial fishing vessels and other non-
recreational vessels less than 79 feet.  The results of the study will be provided
to Congress in a report summarizing the findings as to the nature and extent of
the potential effects of the discharges,  including determinations of whether the
discharges pose a risk to human health, welfare, or the environment, and the
nature of those risks. Congress mandated that EPA evaluate the impacts of
vessel discharges subject to regulation under the NPDES Vessel General Per-
mit in July 2008. The sampling survey was required of EPA by Congress by
Public Law 110-299.

Since significant data were not available from existing data sources for most
discharges, OWM staff designed and implemented a vessel discharge sampling
program. Through this sampling program, the team collected wastewater pollut-
ant characterization data for nine vessel discharges sampled from a total of 61
vessels (one to five discharges sampled per vessel), resulting in more than
22,000 analytical results being obtained from the survey. These samples were
collected in 15 different towns and cities in nine separate states, representing
several major regions in the United States. The common vessel classes priori-
tized for evaluation were: commercial fishing vessels and tenders, tugs/towing
vessels, water taxis/small ferries, and tour boats. Another critical component of
EPA's sampling  program was gaining a better understanding of shipboard proc-
esses, equipment, materials and operations that contribute to the discharges,
as well as the discharge rates, duration, frequency, and location.

                                    I Vessel General Permit  Imple-
                                     OWM has led the effort to implement
                                     the recently issued Vessel General
                                     Permit for many vessels larger than
                                     79 feet. These efforts have included
                                     launching an electronic notice of in-
                                     tent (NOI) system for vessels and
                                    ' creating publically available search-
able  interfaces of these  NOIs (available at: http://cfpub.epa.gov/npdes/vessels/
vesselsnoisearch.cfm).  As of March 2010, over 46,000 NOIs have been re-
ceived by EPA. Additionally, outreach efforts have included OWM staff present-
ing to over 3,000 individuals at conferences and on Webcasts.

Sustainable Communities

Small, rural communities (i.e., communities with fewer than 10,000 people), Indian
reservations, and communities along the U.S./Mexico border have historically ex-
perienced difficulty in achieving Clean Water Act goals, due in part to lack of re-
sources and technical expertise. The Sustainable Communities program aims to
provide small and underserved communities with the financial and technical assis-
tance and education necessary to achieve sustainable, appropriate, and cost-
effective water infrastructure.

Rural Community Assistance Partnership (RCAP)
In FY09, RCAP continued to carry out its mission to help rural people improve the
quality of life in their communities by assisting small, lower income rural communi-
ties to resolve water supply and waste disposal problems and needs. The organi-
zation provides technical assistance, training, and information dissemination, and
coordinates community leaders and outside agencies in this effort. In FY09, RCAP
held 81 training workshops for nearly 1,309 community leaders in 33 states and
territories. RCAP served about 97,000 people through 81 technical assistance
projects in 83 communities. RCAP has successfully leveraged and combined fund-
ing from other state and federal loan programs, such that for each dollar that EPA
invested in RCAP for wastewater, about $7.17 was spent for communities to have
a wastewater system installed or updated.

U.S./Mexico Border Program
In 2009, the U.S./Mexico Water Border Infrastructure Team received an EPA Na-
tional Awards Gold Medal from Administrator Jackson for their exemplary work to
improve the quality of life for millions of residents in the U.S./Mexico Border area.
Public health and environmental concerns due to raw sewage exposure are shared
by both countries along the border. Incidence rates for dysentery and hepatitis are
significantly higher in border communities than the U.S. national average. EPA and
its partners (the Border Environment Cooperation Commission, the North American
Development Bank, CONAGUA- Mexico's Water Commission, and state and local
governments) have created the capacity to eliminate 300 million gallons per day of
raw sewage from the environment. Through FY09, the Agency has invested $535.7
million in construction funds for 84 water infrastructure projects with a total con-
struction cost of $1.6 billion.  Fifty-one of the 84 projects have completed construc-
tion and are providing often first-time drinking water and/or wastewater service to
border residents. Program investments through FY09 have provided an additional
178,950 homes with access to wastewater sanitation, exceeding the program's
long-term commitment of connecting 172,681 homes by 2012.

Water Sector Competency Model
In cooperation  with EPA's Office of Groundwater and Drinking Water, American
Waterworks Association, and Water Environment Federation, OWM worked to
develop a "water sector competency model," which defines the skill-sets for water-
sector jobs. The model is now available on the CareerOneStop Website. Compe-
tency models are used by the Department of Labor's (DOL's) Employment and
Training Administration to assess career- and skill-development needs. Submission
of the water sector model  represents a big first step towards orienting the multi-
billion dollar DOL training conduit towards water workforce development.

Partnerships to Improve Management of Septic Systems
In 2009, the decentralized program made great strides  in encouraging cooperation
among stakeholders with regard to better management and maintenance of septic
systems, which are so critical for protecting human health and the environment.
For the first time, two major stakeholders in the decentralized field, the  State Onsite
Regulators Alliance and the National Environmental Health Association, held their
annual meetings together to provide maximum opportunity for coordination and
education  for their members as well as coordination with the EPA staff that held a
Regional forum at the same meeting. In addition, the EPA Regional Coordinators
met with their respective states in order to better coordinate efforts and to offer
their assistance. The 14 decentralized  partners also held their annual face-to-face
meeting in Washington,  DC, and shared information regarding ongoing partnership
activities for the purpose of their 2010 workplan.
Alaska Native Village
(ANY) Program
With support from Region 10, the
ANV program has coordinated with
the Drinking Water and Clean Water
Indian Set-aside Programs to in-
crease the percentage of homes in
Alaska with drinking water or sewer
services from about 60 percent in
1993 to nearly 92 percent. Alaska
has also quickly processed stimulus
funds from the American Resources
and Recovery Act. As of the end of
December, three of the six com-
pleted ARRA projects are in Alaska.
The program utilized findings from
the Office of Management and
Budget's Program Assessment
Rating  Tool (PART) reassessment
to substantially improve program
accountability and ultimately re-
ceived  a significantly improved
score. A Web-based project track-
ing system has been implemented,
a program management procedure
was developed, and a more mean-
ingful program efficiency measure
was developed in coordination with

Clean Water Indian
Set-Aside (CWISA)
Grant Program
The CWISA program awarded $70
million  in grants to Indian tribes for
the planning, design, and construc-
tion of wastewater treatment facili-
ties in Indian Country in 2009, $60
million  through the American Re-
covery and Reinvestment Act. Over
19,000 homes in tribal lands re-
ceived  assistance from the CWISA
Program to meet basic wastewater
needs, and as of the end of Decem-
ber, 94 of the 95 CWISA ARRA
tribes had signed memorandums of
agreement with the Indian Health
Service (IMS) identifying ARRA
project scope and milestones. The
program continues work with the
Inter-Agency Tribal Infrastructure
Taskforce to address the United
Nation's Millennium Development
Goals and coordinates approaches
to improve access to safe drinking
water and basic sanitation in Indian
Country by working closely with
staff from EPA's Office of Ground-
water and Drinking Water and Of-
fice of International & Tribal Affairs
and IMS.

                     We welcome your comments!
Thank you for your interest in the OWM annual report. We welcome all comments
and suggestions about how we can make this report a more  useful and informative
document for our readers.  Please send comments to qude.karen@epa.qov or:
                               Karen Gude
                         Communications Coordinator
                       Office of Wastewater Management
                     U.S. Environmental Protection Agency
                        1200 Pennsylvania Avenue, NW
                             Mail Code 4201M
                           Washington, DC 20460