1. Safe Drinking Water - Regulatory Update Public Health Division Sept 2015

2. Current Events – 2014-15 Drought declarations! 2015 SRF Needs Survey! Milton-Freewater health hazard abatement action Coast forestry/herbicides public concerns LT2 - Unfiltered systems/open reservoirs: –Baker City temporary UV light, permanent UV light installation –Portland E. coli boil water advisory –Bend membrane filtration construction start West Virginia chemical spill Toledo Ohio algal bloom/EPA health advisories Ebola wastewater worker concerns Clean Water Services wastewater beer brewing pilot proposal OHA/PHD leadership changes

3. Safe drinking water and regulatory roles Public water suppliers – supply safe drinking water State/tribal drinking water programs – supervise public water systems under rules no less stringent than EPA (“Primacy”) U.S. EPA – establish national safe drinking water standards and regulations, oversee and evaluate state primacy programs

4. Public water systems in Oregon Provide safe drinking water to everyone! Over 2,500 public water systems subject to EPA regulations (25 or more people) 900 known public water systems subject only to state regulations (10-24 people) Public systems serve entire state population 90% of water systems serve fewer than 500 people 2,800 certified water system operators 100 certified drinking water labs 91 EPA regulated contaminants,19 regulations 125,000+ test results per year

6. EPA regulates drinking water contaminants 6 microbials (bacteria, viruses, Giardia, Cryptosporidium) 9 disinfection by-products (trihalomethanes, haloacetic acids) 21 inorganic chemicals (nitrate, arsenic, lead) 51 organic chemicals (solvents, pesticides) 4 radiologic contaminants (uranium) Some have short-term acute health effects, most have long-term chronic effects

7. Regulatory update Current: –Revised Total Coliform Rule –New “lead-free” definition –LT2 source water monitoring for Crypto, round 1 results Future outlook: –Current issues and initiatives –New contaminant regulations –Regulatory determinations for future contaminant regulations –Six-year review of current rules

8. Revised Total Coliform Rule - RTCR Final EPA rule: 2/13/13, compliance date: 4/1/16 MCL for E. coli only! No MCL for total coliforms. PWSs with TC presence must “find and fix” problems Rule applies to all 154,000 PWSs nationally EPA Quick Reference Guide available

9. Revised Total Coliform Rule - RTCR Draft state rule presentation to Drinking Water Advisory Committee on 7/16/14, to EPA in August Adopt allowable monitoring reductions? Like TCR - no Final draft to DWAC in Jan. 2015 State rule adoption during fall 2015, winter 2016 State Primacy applications due to EPA 2/13/15, Oregon extension to 4/1/16 EPA/states emphasis now is on preparing for implementation, guidance documents, data systems State information and outreach to prepare water suppliers well in advance of 4/1/16 effective date, stay tuned…..

10. Reduction of Lead in Drinking Water Act Public Law 111-380 (2011) Definition of “lead free”: –Was <8.0% –Now <0.25% effective 1/1/14 Saddles, meters, parts have to meet new definition – warehouse parts inventories! Fire hydrants excluded! (big issue for AWWA) No federal rules until LT-LCR rule adoption States expected to adopt new definition and modify plumbing code (Oregon is done!) Proposed rule August 2016, final rule TBD

11. Unregulated Contaminant Monitoring Rule 3 Monitoring during 2013-15, 4 consecutive quarters Low detection limits = more detections Most detected at PWSs: Strontium, Chromium 6, Vanadium, Chromium, Chlorate, 1,4-dioxane (solvent) EPA developed reference dose (RfD) info for water utility public outreach and communication Most detected at PWSs at > RfD: Chlorate, 1,4-dioxane, Strontium, Vanadium, 1,2,3-trichloropropane (fumigant) Results posted periodically (last is June 2015)

12. LT2 Round 1 source Crypto results (U.S.) More non-detects than expected (93% of samples) More WTPs had all non-detects (51% of WTPs) Actual average was 0.016 oocysts/L vs. 0.053 oocysts/L anticipated Fewer sources were > 0.075 oocysts/L, the Bin 1 boundary for no add’l treatment (Only 4.7% of sources, Oregon has 2)

13. EPA Regulatory Actions (March 2015, AWWA) Coming out in 2015Coming out in 2016 or later Draft Fourth Contaminant List (CCL4)Proposed Long-Term Lead and Copper (LT-LCR) Revisions Proposed 4 th Unregulated Contaminant Monitoring Rule (UCMR4) Proposed Perchlorate Rule Final recommended fluoride level for drinking water (from HHS) Proposed Carcinogenic VOCs (cVOCs) Second Round of LT2ESWTR monitoring Third Six-Year Review of Existing Regulations: Microbials/DBPs Something on storage tanks: cleaning and inspection? Final CCL4 Health advisories for cyanotoxinsFinal UCMR4 Guidance on Legionella treatmentProposed Strontium Rule Final Third Regulatory Determination: Strontium Proposed Hexavalent Chromium Rule? Report from NDWAC lead and copper working group

14. Immediate key initiatives Fluoride – HHS issued final recommended community fluoridation level of 0.7 mg/L - April 2015 Algal toxins – EPA announced 10-day Health Advisory levels for children younger than school age: microcystin (0.3 ug/L)and cylindrospermopsin (0.7 ug/L) - May 2015 Legionella – Draft treatment guidance for states and facilities by Fall 2015

15. Long Term 2 Enhanced Surface Water Treatment Rule Round 2 of crypto source monitoring begins in 2015 Staggered start times by system size Method changes recommended by EPA for Round 2 source monitoring, Method 1623.1 (potential lab method issues) EPA expects states to handle Round 2, 2015-16, no national database

16. Storage tanks Concern arose from 2008 Alamosa CO Salmonella outbreak October 2014 stakeholder meeting on tank inspection and cleaning EPA evaluating available information to determine if regulation, guidance, other means needed Proposed rule January 2018, Final rule TBD

17. Regulatory Determination 3 - draft Single positive determination: strontium! –Skeletal impacts from calcium replacement, strontium is widespread in drinking water –Cost of strontium removal may be similar to arsenic! 4 negative determinations: dimethoate, 1,3- nitrobenzene, terbufos, terbufos sulfone No decision on chlorate and nitrosamines, EPA to consider in 2016 DBP rule review Final determination by 2015-16? Final rules by 2019- 20?

18. Long-term Lead and Copper Rule revisions 1984 – Oregon lead solder ban 1991 – EPA LCR 2000 & 2007 - Short-term revisions to EPA LCR 2012 – CDC lowers recommended blood-lead level NDWAC working group issues under study (report in 2015): –Sample site selection criteria –Lead sampling protocol –Public education for copper (new fixtures) –Definition of Optimized Corrosion Control Treatment and compliance criteria –Lead service line replacement Final EPA rule June 2018

19. Perchlorate Perchlorate inhibits human uptake of iodine 1999 - UCMR 1 detected perchlorate in 160 (4%) of 3,865 systems 2008 – EPA proposed “do not regulate” determination 2009 - Supplemental request for comments 2011 – Regulatory determination reversed Depth and breath of science and technical issues under debate, including sensitive life stages Oregon – Umatilla basin ordinance range Final rule September 2018

20. Carcinogenic VOCs First contaminants to be regulated “as a group”, a challenging task, complex science 8 currently regulated VOCs plus eight more from CCL3 - trichloropropane is the biggest concern Revised MCLs for TCE and PCE likely Challenges to grouping: multiple analytic methods, diverse best available treatments Final rule August 2019

21. Six-year review of drinking water standards Likely scope – microbial/disinfection by-product rules (LT2, DBP2) Chlorate, nitrosamines included Hexavalent chromium as part of total chromium rule, or separate regulation? 2016? Stay tuned…

22. EPA contaminant regulation development process Prescribed in 1996 Safe Drinking Water Act Contaminant Candidate List (CCL) Unregulated Contaminant Monitoring Rule (UCMR) Regulation Determination (RD) –EPA required to consider at least five new contaminants for regulation every five years, decide yes or no –Since 1996, EPA determined regulations not needed for 20 contaminants

23. Contaminant Candidate List 4 Draft CCL4 published 2/4/15, comments due 4/6/16 CCL4 = CCL3 + (manganese, nonylphenol) – (perchlorate, strontium) – (1,3-dinitrobenzene, dimethoate, terbufos. terbufos sulfone) 100 chemicals or chemical groups,12 microbiological contaminants Includes chemicals used in commerce, pesticides, biological toxins, disinfection by-products, pharmaceuticals, waterborne pathogens Final CCL4 in 2016?

24. Unregulated Contaminant Monitoring Rule 4 UCMR fills occurrence data gaps in CCL Cyanotoxins likely in UCMR4, summer monitoring vs. standard 4 quarters Final UCMR4 in January 2017 UCMR4 monitoring starts in 2018 Then, Regulatory Determination 4

25. Hexavalent chromium 2011 – Environmental Working Group report on Cr6 in U.S. municipal drinking water included “Bend OR” Aug 2013 - California proposed MCL at 10.0 ppb (public health goal 0.02 ppb), total cost estimated at $156M for 310 groundwater source entry points Total Cr and Cr-6 are included in UCMR3 monitoring, detected in 75% of samples so far Treatment for Cr-6 is challenging, expensive, could exceed costs of all other SDWA regs depending on final MCL! Final rule in 2019-20?

26. Questions? Public Health Division Sept. 2015

27. 2015 Legislature – Drinking Water Services SB 5526 - OHA 2015-17 Governors Recommended Budget, drinking water fee increases

29. Drinking Water Services revenue

30. Drinking Water Services expenditures

31. DWS revenues and expenditures

32. 2015-17 PHD major budget issues (3/31/15 – Ways and Means) Dependency on federal funds to support core public health programs Dependency on medical marijuana fee support for core (but unrelated) public health programs, uncertainty of sustainability Loss of some federal funds in 2013-15 Uncertainty of federal funds in 2015-17 Changes in the health care delivery system Redesign of fee-based revenue structures necessary based on current demands (Phase 2 presentation at later date – three most critical fee proposals)

33. Drinking Water Services Fees – (4/22/15, W&M Phase 2) ProposalRaise fees for 4 essential DWS functions (ORS 448) 1) Certify water system operators 2) Certify backflow testers 3) Inspect water systems 4) Review water system construction plans RationaleMaintains current staffing and service level for fee-supported work through 2017-19. Current fees now support less than half of needed FTE to fulfill responsibilities prescribed in statute ORS 448.131, 448.150, 448.279, and 448.450 Last fee increase1) Certify water system operators - 2006 2) Certify backflow testers -1994, 2006 3) Inspect water systems - 2008 4) Review water system construction plans -2006 Who is impactedWater system operators, backflow testers, water systems Risks of not moving forward Safety of public drinking water, reduced services, and increased wait times to businesses and individuals requiring licensure, inspection, or review Effective dateBy January 1, 2016

34. Needed fee revenue to fully support workload Fee typeWork- load (FTE) Current fee revenue (2013-15) Fee revenue needed (2015-17) 18 months Fee revenue needed (2017-19) 24 months Percent revenue increase over current Operator certification 1.8$260,070$407,618$543,491110% Backflow tester and specialist certification 1.8$252,220$414,445$552,593120% Water system survey inspections 3.4$351,165$877,913$1,170,551230% Plan review 2.2$122,535$536,099$714,799480%

35. Legislative actions on fees June 11, 2015 – Joint Committee on Ways and Means, Subcommittee on Human Services referred OHA budget with fee increases on to full committee with “do pass” recommendation June 26, 2015 - Joint Committee on Ways and Means referred OHA budget with fee increases to the floor with “do pass” recommendation June 30, 2015 – OHA budget passed Senate 18-10 July 2, 2015 – OHA budget passed House 46-14 Awaiting Governor’s signature

36. Fee increase adoption schedule July 15, 2015 – Drinking Water Advisory Committee reviewed draft fee increase rule, recommended OHA proceed with rulemaking as presented August 14, 2015 – file notice of proposed rulemaking with Secretary of State Public hearings: –Sept. 22, Bend –Sept. 23, Portland –Sept. 29, Springfield –Sept. 30, last day for written comments Nov. 16, 2015 – file final rule with Secretary of State January 1, 2016 – fee increases effective

37. Fee increase key facts Fees were last raised in 1994, 2006 and 2008, respectively. Nine current staff members perform the fee-supported work; that work has been and will continue to be constant over time; no new positions were requested. New fees are designed to fully fund the existing fee- supported work through the next two biennial periods (through June 2019). Future fee increases after June 2019 will be more frequent and small (we will keep up going forward). Past promises are kept: Small water system operators do not pay for certifications; small systems pay one- half of the cost of inspections with remainder paid from available federal grant revenue.

38. DWS revenues and expenditures (with increased fees)

39. Questions? Dave Leland Manager – Drinking Water Services 971-673-0415 david.e.leland@state.or.us