Tightening the faucet? New water regs seen as potential drag on economic development
Paul Matthews of the 495/MetroWest Partnership: 'Sweeping' changes could impact development.
Rep. Matthew Beaton said he had concerns over how the regulations would impact water access.
The economic futures of cities and towns in Central Massachusetts can either be enhanced or undermined by a single element: water. At least that's the premise of some of the stakeholders who were involved in a recent reinvention of state drinking water management standards.
At least that's the premise of some of the stakeholders who were involved in a recent reinvention of state drinking water management standards under the Sustainable Water Management Initiative (SWMI).
Under the Massachusetts Department of Environmental Protection (MassDEP), which manages drinking water, the state's Water Resources Commission last month finished a five-year-long process of writing new standards to protect the state's 27 river basins, while ensuring adequate groundwater supply.
While the SWMI changes were approved with little fanfare, Paul Matthews, executive director of the 495/MetroWest Partnership, a regional advocacy and development group, said the implications of the changes shouldn't be underestimated. That includes their potential impact on economic development.
“They're the most sweeping changes to the state's water policy regulations in a generation,” Matthews said.
The SWMI regulations are robust and full of environmental jargon, but essentially, the goal is to foster “safe yield” — the most water suppliers can draw without harming fish habitats — and adequate “stream flow,” which ensures that steps are taken to recharge the basins to protect the habitats, according to Beth Card, assistant commissioner for the Bureau of Resource Protection at MassDEP.
But Card said the regulations are also important in ensuring that river basins are managed in a way that protects the drinking water supply for commercial and residential use. She said that's especially important since climate change has caused an increase in peak flooding followed by longer dry periods.
All of this may seem reasonable, but some fear that SWMI will cap economic development in cities and towns that are already at or near capacity on their water permits.
Now, municipalities and private water suppliers will be subject to these new regulations when they seek to renew their permits from the state or increase their water-drawing capacity. In many cases, they'll be on the hook for costly mitigation projects required by SWMI.
The cost of those projects could be passed on to ratepayers, according to Jennifer Pederson, executive director of the Massachusetts Water Works Association, which represents water suppliers throughout the state. Pederson predicts SWMI could cause rates to increase, along with federal storm water mitigation requirements.
Most of the communities that could be impacted lie outside Greater Boston, where the regulations don't apply because that region is regulated separately.
Pederson said towns in MetroWest and near I-495 may find it challenging to adhere to new standards because their economies are growing and water demand has increased since 2005. She explained that suppliers that are withdrawing more water than they were then are subject to SWMI regulations.
“I think it's going to catch a lot of people by surprise,” Pederson said.
Worcester weighs critical decision
In light of SWMI, Phil Guerin, Worcester's director of environmental systems, said officials are weighing whether renewing the city's water permit is worth the potential expense.
Worcester, with a 24-million-gallon capacity, is operating below that limit. In fact, Guerin said water use has declined over the last 20 years as industrial use fell. But that may soon change amid ongoing downtown development. And, since Worcester is a regional supplier, Guerin said the city is receiving more inquiries from nearby towns for water.
The question is whether to let the permit expire in 2017, and, as a result, cap development prospects, or pay more to boost capacity.
Worcester and Central Massachusetts have plenty of water, Guerin said, as the area receives more rainfall than most eastern parts of the state. But delivering water under new regulations may be difficult. The city's public works department will likely make a recommendation on renewing Worcester's water permit in 2015, Guerin said.
While limited capacity for new businesses with large water needs — such as in health care and biotech — could hinder economic development, Guerin said it's more likely that water rate hikes brought on by SWMI will impact existing companies that want to grow.
“They might say, 'You know what, we're not going to expand in this town,” Guerin said.
Peterson said she and others in the water industry feel some of the regulations are too broad, and she's unconvinced that SWMI will have a measurable impact on the environment.
Pederson and Matthews, of the 495/MetroWest Partnership, also complained that the final version of the regulations were not subject to a customary month-long review before the Water Resources Commission approved SWMI, a move that could be construed as an attempt to finalize regulations before the Patrick administration leaves office next month.
“We hope (that) as the new administration comes in, this is one of the regulations they will look at,” Pederson said.
Card, from the MassDEP, said the only reason the commission, comprised mostly of state officials, pushed the regulations was that many suppliers will see their permits expire in the next two years, and MassDEP wanted to begin outreach as soon as possible. She also said the transparency of the process was “unprecedented,” with MassDEP holding six public hearings on the draft regulations, and publishing comments from 160 stakeholders.
She added that SWMI regulations allow for considerable flexibility when it comes to mitigation and withdrawal requirements, so that decisions can be made based on a community's existing mitigation efforts and the needs of individual river basins.
Shrewsbury looks for more water
One town that's already operating under SWMI standards is Shrewsbury, which participated in a SWMI pilot program as the regulations were being drafted.
Town Manger Daniel Morgado declined to comment on the new regulations, as the town is seeking approval for additional water capacity. The MassDEP approved it, but a group of environmental advocates appealed that decision in court.
Still, Shrewsbury's situation illustrates the importance of adequate capacity in attracting new businesses. Morgado said the town is near its 2.91-million-gallon-per-day cap, and wants an additional 440,000.
In the meantime, if a commercial user needs more than 100,000 gallons a day, town officials must think carefully about whether they can accommodate it.
“We have had instances where we have taken a pass when we sit down and talk to folks about potential projects in town,” Morgado said. “We always have to start that conversation with 'How much water do you need?'”
Beaton: We'll take a fresh look
One of Shrewsbury's own will soon be in a position to influence the regulations if he and Governor-elect Charlie Baker see fit. State Rep. Matthew Beaton, who holds a degree in environmental science, is set to become Baker's secretary of energy and environmental affairs.
Beaton said he acted as an “intervener” between stakeholders and state officials as SWMI was drafted, and he expressed concern over how the regulations will impact water access. Beaton said he and Baker will take a “fresh look” at the regulations once they take office by talking again with stakeholders and reviewing the science behind them.
“I think there's an opportunity to make sure we're properly using science to promote sound policy,” Beaton said.
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