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WASWD Update for November 24, 2025

WASWD publishes this bi-weekly e-newsletter to convey current information about legislative and regulatory issues, other issues of importance to districts, and upcoming training and other events
WASWD Updates Archive
Legislative Look Ahead
Department of Ecology
Biosolids Permit Fees
Ecology Draft Policy
DOH Fee Rulemaking
WASWD News
Trainings, Conferences & Events
Associate Member Spotlight

  
 Legislative Look Ahead
Price Controls, Affordability Politics, and the Emerging Shift Away From “Growth Pays for Growth
Background: A Changing Political Landscape on Rates & Fees
The 2025 election cycle marked a decisive turn: voters increasingly rewarded candidates who promised quick, visible price relief—from rent freezes to caps on electricity rates to promises to reduce or slow local fee increases. Utility prices, including water and sewer, are now being drawn directly into this broader affordability movement.

At the same time, legislators and housing advocates are rethinking the long-standing assumption that “growth pays for growth.” Where utilities have traditionally relied on General Facility Charges (GFCs), connection charges, and developer fees to fund system expansions, a new narrative has emerged: these charges supposedly drive-up housing prices—and by extension, affordability problems across the state.

These two trends—price-control politics and a push to socialize growth costs—are converging in ways that could fundamentally reshape utility financing and keeping rates affordable.

The Affordability Conundrum
Washington faces an increasingly vocal political demand for immediate affordability. Price controls, fee freezes, and limits on utility rate growth are attractive to policymakers because they deliver fast, tangible savings to households.
But these short-term political wins conflict with long-term infrastructure realities:
  • Water and sewer utilities are capital-intensive.
  • Regulatory requirements (DOH, Ecology, EPA) continue to rise.
  • Construction inflation continues to outpace CPI.
  • Growth is accelerating in high-pressure service areas.
This creates a political and structural paradox that undermines the investments needed to protect public health and maintain system reliability.

The Emerging Challenge to "Growth Pays for Growth"
For decades, Washington has relied on a straightforward framework: new development should pay for the infrastructure capacity it requires.

But the 2025–26 debate is shifting:
  • Housing advocates argue that GFCs and connection charges increase housing costs, especially for starter homes and apartments.
  • Some legislators suggest existing ratepayers should absorb a greater share of growth-related capital, spreading costs across all accounts.
  • Proposals have surfaced to cap or limit GFCs, utility connection charges, and other development-related fees.
If this trend continues, utilities may be forced to backfill growth costs through general rate revenue—a significant departure from current practice.

Risks for Water & Sewer Districts
1. Reduced Capacity to Finance Growth
If development charges are capped or restricted, districts will be expected to build additional system capacity without dedicated revenue from developers.
2. Structural Deficits
When combined with political pressure to limit rate increases, districts could face persistent funding gaps—undermining long-term financial stability.
3. Increased Regulatory Exposure
Capital shortfalls will compromise compliance with DOH, Ecology, and EPA requirements including redundancy, fire flow, treatment capacity, seismic resilience, and PFAS rules.
4. Ratepayer Inequity
Shifting costs to existing customers effectively forces current households to subsidize private development, creating fairness and governance concerns for elected commissioners.
Why These Proposals are Politically Attractive
  • Immediate savings for NEW households, especially in high-cost markets.
  • Simple messaging for legislators seeking affordability wins.
  • Misaligned blame: development advocates often overstate the role of GFCs in housing costs, while the true financial complexities of water/sewer capital planning are rarely visible to the public.
WASWD Advocacy Position Framework
1. Preserve cost-of-service rate setting
  • Oppose measures that interfere with standard utility rate methodologies or impose statewide rate caps.
2. Maintain “growth pays for growth” as a foundational financing principle
  • Even under a reduced-fee framework, developers must continue to fund direct construction costs (extensions, onsite improvements, frontage, meter sets, etc.), preventing cost-shifting to existing ratepayers.
3. Protect financial capacity for essential infrastructure
  • Ensure that affordability initiatives do not undermine critical investments in treatment, fire flow, redundancy, climate resilience, or regulatory compliance.
4. Support State-funded affordability programs
  • Back targeted assistance for low-income or fixed-income households, rather than broad, across-the-board price controls that distort system economics.
5. Advance a balanced affordability narrative
  • Educate policymakers that affordability solutions must not compromise public health systems, and that infrastructure must be funded sustainably as Washington grows.
 Department of Ecology
Ecology Launches Two Rulemakings on Nutrients and Harmful Algal Blooms
Ecology has announced two major rulemakings that will update Washington's freshwater quality standards for lakes and reservoirs. These rules will influence how waters are assessed, when they are listed as impaired, how cleanup priorities are set, and how utilities qualify for funding.

Read Ecology's full announcement: Taking steps to tackle nutrient pollution and harmful algal blooms – Washington State Department of Ecology

What Ecology Is Doing
1. Harmful Algal Bloom (HAB) Criteria
Draft expected: Fall 2026
Creates new statewide numeric thresholds for algal toxins (microcystins, cylindrospermopsin, and possibly others) that determine when a waterbody is unsafe for recreation or must be listed as impaired.

2. Nutrient Criteria for Lakes & Reservoirs
Draft expected: Fall 2027
Establishes numeric criteria for total nitrogen, total phosphorus, and chlorophyll-a to determine when nutrient pollution is impairing aquatic life, drinking water supplies, or recreation.

Why This Matters for Water & Sewer Districts
More Waterbodies Could Be Listed as Impaired
  • Numeric criteria may place more lakes and reservoirs—including drinking water sources—into TMDLs or cleanup plans.
Greater Scrutiny on Nutrient Sources
  • Districts may face new expectations tied to:
    • Wastewater treatment plant nutrient loads
    • Inflow & infiltration and watershed contributions
    • Impacts on reservoirs used for drinking water
New Funding Opportunities
  • Numeric criteria help utilities qualify for:
    • Clean Water SRF and Centennial grants
    • Freshwater algae control grants
    • Federal climate resilience/drinking water protection funds
Next Steps
Ecology will conduct a multi-year process, including a public webinar in early 2026. WASWD will monitor both rulemakings and coordinate opportunities for district input.
 Biosolids Permit Fees & Reporting Requirements - 2026 Scheduled Released
Ecology has released the 2026 biosolids permit fee schedule and updated reporting guidance. Program cost pressures indicate additional fee increases are likely in future years.

2026 Permit Fee Schedule
New Facilities
  • Permit application review: $3,409.03
All Facilities
  • First residential equivalent (RE): $1,136.34
  • Additional REs up to 100,000: $0.40
  • Additional REs above 100,000: $0.30
How Fees Are Determined
  • Fees are based on RE values set by the Water Quality Program or facility data.
  • Annual adjustments may include the Fiscal Growth Factor (FGF) if approved by OFM.
  • Any increase above the FGF requires Legislative approval.
Special Facility Types
• Receiving-only facilities: Fees are proportional to each sender's RE share.
• Septage-only facilities: 1 RE per 1,250 gallons.

Program Funding & Trends — Future Fee Pressure Likely
 
Fiscal Year Fee Revenue Expenditures
FY 2022 $1.145M $0.993M
FY 2023 $1.245M $1.208M
FY 2024 $1.251M $1.391M
FY 2025 $1.274M $1.396M
  • Program expenditures exceed revenues in FY 2024-2025 driving the update.
What This Means for Districts
  • Expect ongoing fee pressure beyond 2026 as Ecology seeks to close its funding gap.
  • Large RE systems, high-volume biosolids generators, and receiving-only facilities may see the largest increases.
  • Ensure SAW access and reporting procedures are in place to avoid compliance issues.
  • WASWD will monitor upcoming discussions and advocate for predictability and equity.
 Ecology Draft Policy on Consumptive vs. Non-Consumptive Use
Ecology has released another draft policy, this one is updating how consumptive and non-consumptive water use is defined. This may have far-reaching implications for municipal water rights, hydropower operations, and environmental projects.

Context and Legal Background
The update follows the 2015 Foster Decision, which restricted Ecology's authority to permit new groundwater withdrawals that impair instream flows—even if fully mitigated. Ecology is now revisiting how it determines consumptiveness.

WASWD is concerned that the policy:
  • Effectively redefines “consumptive use,” and
  • Could be applied retroactively to existing rights.
Key Issues and Concerns
1. Retroactivity and Legal Authority - Potential re-evaluation of existing water rights classified as non-consumptive.
2. Binary vs. “Dimmer Switch” Approach - Consumptiveness varies with hydrology and operations; a binary “on/off” model doesn't reflect real-world systems.
3. Water Quality vs. Quantity - Introducing temperature or water quality into consumptiveness determinations conflates two separate legal frameworks (RCW 90.48 vs. water quantity law).
4. Hatcheries & Environmental Projects - Removing exemptions could inadvertently classify fish facilities or restoration activities as “consumptive,” discouraging beneficial projects.
5. Municipal Water Rights & Development - Ambiguous language could affect how Ecology interprets municipal build-out schedules or certified quantities.

WASWD Position & Next Steps
WASWD supports clarity but is urging Ecology to:
  1. Avoid retroactive impacts to existing rights
  2. Recognize the variable nature of consumptiveness
  3. Keep water quality separate from quantity determinations
  4. Maintain exemptions for environmental and hatchery projects
  5. Clarify protections for municipal water rights
How Districts Can Engage
Districts with municipal, reuse, or complex water rights are invited to share examples or operational concerns with WASWD to support our comment development.
 DOH Announces Fee Rulemaking for Drinking Water Programs
The Washington State Department of Health (DOH) has filed a CR-101 to begin revising fees for multiple Office of Drinking Water (ODW) programs.

DOH cites insufficient fee revenue due to declining state funds and increased personnel costs in the 2025–27 budget. Fee increases are being evaluated for:
  • Engineering review & project approval (WAC 246-290-990)
  • Operator certification (WAC 246-292-995)
  • Operating permits for Group A systems (WAC 246-294-070)
Why This Matters for Water & Sewer Districts
  1. Higher regulatory costs for project reviews, permits, and certifications beginning next biennium.
  2. Budget impacts for both large and small districts.
  3. Disproportionate burden on small systems if fee structures aren't scaled.
Rulemaking Timeline
  • CR-101 filed: July 2025
  • Draft rule language: Early–Mid 2026
  • CR-102 / Public comment: Mid–Late 2026
  • Final rule adoption: Late 2026 / Early 2027
  • Implementation: Start of 2027–29 biennium
WASWD Next Steps
WASWD will track the rulemaking, coordinate member feedback, and share engagement opportunities. Districts are encouraged to provide early concerns or examples to help inform WASWD's comments.
 WASWD News
WASWD Members Forum
The WASWD Online Forum has a new member question regarding - Delinquencies Maximum Interest. "We are reviewing our policies to update our Small Water System Management Plan and I've been tasked with confirming the maximum percent of interest that can be added to delinquencies." You can respond to their question here.

Join the conversation, share your knowledge, and check out others' responses. Don't forget to follow the forum's Member District Seeks Information topic to be notified of future inquiries and answers. Learn how to do that here.
 
WASWD Webinars:
Missed a Webinar? Catch Up Anytime!

Retrospective Rating Program Webinar
Led by Tim Lundin, Director of Retro & ReClaim at Archbright, this session provides an in-depth overview of the voluntary Retrospective Rating Program. Learn how participating members can earn refunds on workers' compensation premiums and what to expect from the application process.

State Tax Law Changes: Direct and Indirect Impacts on Utilities
Speakers Linda Gallagher and Eric J. Lowell from MRSC offer a high-level review of key 2025 Washington State tax legislation. Topics include service-related sales taxes, storage unit taxation, B&O exposure, fuel tax increases, contractor cost changes, capital gains implications, and procurement considerations. 

Visit our website to watch both webinars at your convenience and stay up to date on these important topics.
Upcoming Meetings
Links to all virtual meetings are available on the Committee Documents webpage of the members only section of the WASWD website.

Section I & II Meeting

December 4, 2025 @6:00PM
Location: Virtual Zoom

Membership Committee

December 9, 2025 @10:00AM
Location: Virtual Zoom

Section III

December 9, 2025 @6:00PM
Location: Bob's Burgers & Brews

Workforce Development Committee

December 10, 2025 @1:30PM
Location: Virtual Zoom

Government Relations Committee

December 11, 2025 @10:00AM
Location: Virtual Zoom

Board of Directors Meeting
(Moved due to holiday)

December 15, 2025 @10:30AM
Location: Hybrid at WASWD Office

Board Workshop
(Moved due to holiday)

December 15, 2025 @1:00PM
Location: Hybrid at WASWD Office

Section IV Meeting

December 15, 2025 @7:00PM
Location: Virtual Zoom

Conference & Training Meeting

December 18, 2025 @10:00AM
Location: Hybrid at WASWD Office
 
 Trainings, Conferences & Events

Calling All HR Leaders - Registration Now Open for the HR Heroes Summit 2026!
Presented by Archbright, $700. Registration Link

Tuesday, February 10, 2026, 8:00AM to 4:00PM

With the launch of the new WASWD HR Group, this is a great opportunity for district HR leaders to learn, connect, and share strategies with peers across the region.

Hosted by Archbright, the HR Heroes Summit 2026 is a full-day event designed to help HR professionals and organizational leaders rise to today's challenges—from compliance and culture to leadership and performance management.

Event Highlights

  • Keynote Inspiration celebrating HR leadership and courage.
  • Breakout Workshops on compliance, culture, and performance.
  • LIVE HR Hotline with Archbright Advisors solving real HR dilemmas.
  • Networking Opportunities with peers and consultants.
  • Recertification Credits (HRCI & SHRM).
 Associate Member Spotlight
Legacy Group Interiors
In need of furniture or flooring? Locally owned for 20 years, Legacy Group strives to provide our customers with beautiful, functional and healthy interiors based on your design, performance and budget expectations. Our customer driven team can help with your interior workspace needs, including budget guidance, space planning and ergonomic assessments as well as office moves, reconfigures, and new installation of both Flooring and Furniture. Contact Michael Lanthier at michael@legacygroupinteriors.com or 206.794.7034 to learn more about how we can be local resource to your organization.

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