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WASWD Update for December 8, 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
Update State Agencies
Clean Water SRF
Drinking Water SRF
WWUC Submit Joint Technical Comments
Federal Update
WASWD News
Trainings, Conferences & Events
Associate Member Spotlight

  
 Update State Agencies
Commerce Priorities - Director Joe Nguyen
Commerce emphasized three strategic priorities that align closely with WASWD's own policy principles:

Infrastructure must be:
  • Housing-ready – supporting units where the state is directing growth
  • Equity-driven – alleviating burdens on disadvantaged communities
  • Climate resilient – resilient to drought, wildfire, flooding, and aging assets
Director Nguyen specifically highlighted the need to break down silos across state funding programs and improve alignment between Commerce, the Public Works Board, Ecology, and DOH. He expressed a strong desire for coordinated messaging and shared strategies around infrastructure investment.

Relevance for WASWD:
This is fully aligned with WASWD's work on the 5-Year Policy Agenda, municipal water rights, PWTF protections, SRF funding stability, and affordability.
 Clean Water SRF (Ecology) - Funding Outlook & Demand
Current Cycle
  • $168.5 million available statewide
  • $610 million in applications (plus $140M in small-community pipeline requests)
  • Only about 25% of statewide need can be met this cycle
  • Two single projects (West Point & Central Kitsap) represent $343M in requests
Funding Cliff
SRF availability has dropped from $240M to ~$100M/year as Bipartisan Infrastructure Law (BIL) dollars are expended. Unless Congress increases capitalization grants:

- Expect $100M/year in future years – far below need
- WA faces a consistent $500M+ annual shortfall

Statewide Need
EPA's 20-year needs assessment:
  • $12B wastewater
  • $2B stormwater
  • $3B nonpoint
  • $2B decentralized wastewater
Relevance for Districts:
SRF underfunding will intensify competition, reduce affordability for rural and disadvantaged districts, and increase reliance on local ratepayers.
 Drinking Water SRF (DOH) - Funding Pressures & Emerging Contaminants
Current Cycle
  • 40 construction applications totaling >$200M
  • Only ~$150M available
  • 12 planning/engineering requests
  • Consolidation feasibility demand is increasing (Lewis County example)
Funding Cliff
DOH's Bipartisan Infrastructure Law (BIL) funds will run out after next year's cycle, dropping the program back to pre-BIL levels.

Small & Disadvantaged Systems
  • 50–60% of Washington qualifies as disadvantaged under DOH's criteria
  • Hundreds of small struggling systems lack technical, fiscal, and managerial capacity
  • DOH is increasingly focused on regionalization and system consolidation
Emerging Contaminants
Upcoming rulemaking and federal actions may create new unfunded capital requirements:
  • PFAS
  • Manganese
  • Fluoride – likely lower MCL
  • Microplastics – potential UCMR inclusion
Relevance for Districts:
These regulatory pressures will materially impact districts and further increase demand on SRF and PWTF programs
 WWUC Submit Joint Technical Comments on Ecology's Water-Rights Policies
WASWD partnered with the Washington Water Utilities Council (WWUC) to provide detailed, coordinated comments to the Department of Ecology on two major draft water-rights policies: POL 1280 (Development Schedules for Water Right Changes and Transfers) and POL 1020 (Consumptive & Non-Consumptive Use Definitions).
These policies, if finalized as drafted, could significantly affect how municipal water rights are administered, how development schedules are set, and how Ecology classifies consumptive vs. nonconsumptive uses across the state.

Key Points from the Joint Comments

POL 1280 – Development Schedules
The WWUC/WASWD letter urges Ecology to:
  • Correct the draft's treatment of pumps-and-pipes municipal rights, which are legally recognized as rights in good standing and already deemed perfected.
WWUC Comment Re POL 1280 Final
  • Remove ambiguous terms (“original intent,” “non-speculative”) that are not grounded in statute.
  • Provide clarity and consistency across sections to avoid unintended limitations on municipal water development.
POL 1020 – Consumptive vs. Nonconsumptive Use
The joint comments highlight concerns that the draft policy would:
  • Narrow long-standing definitions of nonconsumptive use without clear legal authority.
WWUC Comment Re POL 1020 Final
  • Introduce major uncertainty for existing water-right holders and basin rules.
  • Improperly combine water-quantity and water-quality concepts.
  • Misclassify reservoir storage and other essential municipal operations as “consumptive.”
Why This Matters
Both policies touch foundational elements of municipal water law and could shape how districts plan, implement, and protect their water rights. WASWD is committed to ensuring these policies remain aligned with statute, case law, and the realities of municipal water supply planning.

Next Steps
WASWD will continue coordinating with WWUC, Ecology, and member districts as the agency reviews public comments and considers next steps.

If you have questions or want to discuss implications for your district, please reach out anytime.
Implications for WASWD's Advocacy Work
This briefing reinforces several key WASWD priorities:

1. Protect SRF & PWTF Funding
The state faces an impending SRF cliff and escalating capital needs.
- WASWD must continue defending SRF allocations, opposing sweeps, and supporting PWTF stability.

2. Stop Unfunded Mandates
PFAS, fluoride, nutrient limits, and new HAB/nutrient criteria create major capital costs.
- WASWD should advocate for phased implementation and adequate funding.

3. Support Consolidation Tools & Small System Assistance
With 50–60% of WA “disadvantaged,” affordability challenges are only increasing.
- Strengthen state support for regional solutions and distressed system interventions.

4. Promote Infrastructure–Housing Alignment
Commerce is explicitly framing infrastructure as a housing tool.
- WASWD can leverage this to elevate district needs in legislative and budget discussions.

5. Amplify the Need for Interagency Streamlining
Members consistently face complex, inconsistent state processes.
- WASWD should support reforms that simplify funding access and permitting.
 
 Federal Update
Bipartisan Clean Water Infrastructure Bill Introduced
A bipartisan group of U.S. House members has introduced the Affordable Clean Water Infrastructure Act, aimed at helping rural, small, tribal, and low-income communities upgrade aging water, wastewater, and stormwater systems.

The bill would strengthen the Clean Water State Revolving Fund (CWSRF) by allowing states to increase their cost-share and by providing additional subsidies for disadvantaged communities. If enacted, it could lower local project costs and expand access to federal assistance for communities that struggle to finance infrastructure upgrades.

Why This Matters for WASWD Members
  • Could reduce financing burdens for districts serving small or rural areas.
  • Expands opportunities for grants, forgivable loans, and hardship subsidies.
  • Enhances federal support for aging wastewater and stormwater infrastructure.
WASWD will continue monitoring the bill and provide updates as it progresses through Congress.
 
Rising Biosolids Costs: New National Analysis Worth a Look
A new report from Bluefield Research highlights a fast-growing challenge for wastewater utilities nationwide: biosolids management costs are projected to nearly double over the next decade, driven by disposal constraints, landfill pressures, and PFAS-related restrictions.

It's a national trend with real implications for Washington's sewer districts — especially those relying on land application or limited regional facilities.

- Read the full article:
https://smartwatermagazine.com/news/bluefield-research/us-utilities-face-48-billion-biosolids-challenge-amid-rising-costs

WASWD will continue tracking cost and regulatory impacts as this issue evolves.
 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.

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).

Your Role in Effective Utility Management
Presented by AWWA PNW, $150 - $300. Registration Link

Wednesday, February 25, 2026, 8:00AM

Learn how to more efficiently operate and manage your utility. Topics include level of service goal setting, benchmarking, rates/finance, stakeholder engagement, and regulatory and reliability performance.
 Associate Member Spotlight
Databar
Databar started in 1978 and the mailing division in 2001. We provide all types of printing and mailing, specializing mainly in utility billing in the public sector. All statement processing and mailing functions are performed in Edgewood, Washington. We have considerable production capacity to add additional clients. We also work with all types of software systems. Databar currently serves 75 public sector customers ranging in size from under 1,000 utility bills to counties running over 100,000 statements per cycle. We do our best to provide great, quick, and secure service.

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