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<title> - SMALL BUSINESS PERSPECTIVES ON THE IMPACTS OF THE BIDEN ADMINISTRATION'S WATERS OF THE UNITED STATES (WOTUS) RULE</title> |
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[House Hearing, 118 Congress] |
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[From the U.S. Government Publishing Office] |
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SMALL BUSINESS PERSPECTIVES ON THE IMPACTS |
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OF THE BIDEN ADMINISTRATION'S WATERS |
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OF THE UNITED STATES (WOTUS) RULE |
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HEARING |
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BEFORE THE |
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COMMITTEE ON SMALL BUSINESS |
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UNITED STATES |
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HOUSE OF REPRESENTATIVES |
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ONE HUNDRED EIGHTEENTH CONGRESS |
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FIRST SESSION |
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HEARING HELD |
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MARCH 8, 2023 |
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[GRAPHIC NOT AVAILABLE IN TIFF FORMAT] |
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Small Business Committee Document Number 118-004 |
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Available via the GPO Website: www.govinfo.gov |
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U.S. GOVERNMENT PUBLISHING OFFICE |
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51-287 WASHINGTON : 2023 |
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HOUSE COMMITTEE ON SMALL BUSINESS |
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ROGER WILLIAMS, Texas, Chairman |
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BLAINE LUETKEMEYER, Missouri |
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PETE STAUBER, Minnesota |
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DAN MEUSER, Pennsylvania |
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BETH VAN DUYNE, Texas |
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MARIA SALAZAR, Florida |
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TRACEY MANN, Kansas |
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JACK ELLZEY, Texas |
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MARC MOLINARO, New York |
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MARK ALFORD, Missouri |
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ELI CRANE, Arizona |
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AARON BEAN, Florida |
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WESLEY HUNT, Texas |
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NICK LALOTA, New York |
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NYDIA VELAZQUEZ, New York, Ranking Member |
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JARED GOLDEN, Maine |
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KWEISI MFUME, Maryland |
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DEAN PHILLIPS, Minnesota |
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GREG LANDSMAN, Ohio |
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MORGAN MCGARVEY, Kentucky |
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MARIE GLUESENKAMP PEREZ, Washington |
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HILLARY SCHOLTEN, Michigan |
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SHRI THANEDAR, Michigan |
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JUDY CHU, California |
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SHARICE DAVIDS, Kansas |
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CHRIS PAPPAS, New Hampshire |
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Ben Johnson, Majority Staff Director |
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Melissa Jung, Minority Staff Director |
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C O N T E N T S |
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OPENING STATEMENTS |
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Page |
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Hon. Roger Williams.............................................. 1 |
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Hon. Nydia Velazquez............................................. 2 |
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WITNESSES |
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Mr. Frank Murphy, Senior Vice President/CFO/COO, Wynne Jackson, |
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Inc............................................................ 5 |
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Ms. Katherine R. English, Owner, English Family Limited |
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Partnership.................................................... 7 |
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Mr. Rick Baumann, Founder, Murrells Inlet Seafood................ 9 |
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APPENDIX |
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Prepared Statements: |
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Mr. Frank Murphy, Senior Vice President/CFO/COO, Wynne |
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Jackson Inc................................................ 30 |
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Ms. Katherine R. English, Owner, English Family Limited |
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Partnership................................................ 44 |
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Mr. Rick Baumann, Founder, Murrells Inlet Seafood............ 57 |
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Questions for the Record: |
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None. |
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Answers for the Record: |
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None. |
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Additional Material for the Record: |
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NFIB......................................................... 60 |
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Statement of Clean Water-Dependent Businesses................ 63 |
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U.S. Chamber of Commerce..................................... 78 |
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SMALL BUSINESS PERSPECTIVES ON THE |
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IMPACTS OF THE BIDEN ADMINISTRATION'S WATERS OF THE UNITED STATES |
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(WOTUS) RULE |
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WEDNESDAY, MARCH 8, 2023 |
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House of Representatives, |
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Committee on Small Business, |
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Washington, DC. |
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The Committee met, pursuant to call, at 2:10 p.m., in Room |
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2360, Rayburn House Office Building, Hon. Roger Williams |
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[chairman of the Committee] presiding. |
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Present: Representatives Williams, Luetkemeyer, Alford, |
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Stauber, Crane, Meuser, Bean, Van Duyne, Ellzey, Mann, LaLota, |
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Velazquez, Scholten, Thanedat, Davids, McGarvey, and |
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Gluesenkamp Perez. |
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Chairman WILLIAMS. Before we get started, I want to ask Mr. |
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Mann to lead us in prayer. |
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Please stand. |
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All. I pledge allegiance to the Flag of the United States |
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of America, and to the Republic for which it stands, one |
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nation, under God, indivisible, with liberty and justice for |
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all. |
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Mr. MANN. Bow your heads with me. |
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Thank you, Dear God, that we get to live in the greatest |
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country in the history in the world. Thank you for all the |
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small businesses that provide work and goods and services all |
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over our great land. We pray for the ability to distinguish |
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between right and wrong. And give us wisdom and continue to |
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bless our great country. |
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In the name of Jesus. Amen. |
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Chairman WILLIAMS. Good afternoon, everyone. |
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I now call the Committee on Small Business to order. |
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I will turn my mike on. |
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Without objection, the Chair is authorized to declare a |
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recess of the Committee at any time. |
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The Committee is here today to hear testimony about the |
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harmful impact of the Biden administration's Waters of the |
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United States Rule on small businesses. |
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I now recognize myself for my opening statement. |
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And first I want to thank our witnesses for joining us |
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today. I understand that all of you have traveled a long way to |
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be here, and we appreciate it. I know how hard it is to step |
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away from your day-to-day operations, and I am extremely |
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grateful that you chose to give us your time today. |
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Since President Biden was sworn into office, the regulatory |
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actions of this administration has cost the private sector |
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nearly $360 billion in compliance costs, an estimated 220 |
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million hours in our new paperwork requirements to meet those |
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compliance costs. |
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Later this month, the Biden administration will increase |
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these costs by finalizing the new Waters of the United States |
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Rule. For any business, certainty is key, and enforcing the |
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rule is leaving many people in the dark on if they will be in |
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compliance with the new regulations. |
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For the last decade, small businesses have hoped for |
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clarity around what is the definition of a waterway that is |
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subject to regulations by the federal government. |
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Unfortunately, this rule fails to resolve these issues and will |
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leave business owners wondering if they need to get permission |
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from the federal government before they make even minor |
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adjustments on their private property. |
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There are laws on the books that are supposed to protect |
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small businesses from regulatory overreach from the federal |
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government. Specifically, the Regulatory Flexibility Act is in |
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place to ensure agencies are conducting analysis on how their |
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actions will affect small entities and propose alternatives. |
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However, the EPA certified that this rule would not have |
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any impact on small businesses and, therefore, unilaterally |
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decided that they do not need to conduct any further analysis |
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on the rule. |
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According to the SBA's Office of Advocacy, which is charged |
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with speaking out against overly burdensome regulations, this |
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determination by the EPA was not based on any factual analysis. |
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Today we listen to the small businesses whose opinions have |
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been disregarded by agencies far too long, and we will hear how |
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this rule will have a significant impact on many types of small |
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businesses, such as farming, ranching, mining, and real estate |
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development, just to name a few. |
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The past several years have caused tremendous hardship for |
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Main Street America. Whether it be the COVID-19 pandemic, out- |
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of-control inflation, broken supply chains, high interest |
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rates, or a national labor shortage, the federal government |
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should not be giving small businesses yet another challenge to |
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overcome. |
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I want to thank you all again for being here with us today, |
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and I'm looking forward to today's conversation. |
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And lastly, without objection, I would like to submit |
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letters for the record from the National Federation of |
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Independent Business and the U.S. Chamber of Commerce. |
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So with that, I will yield to our distinguished and my |
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friend the Ranking Member from New York, Ms. Velazquez. |
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Ms. VELAZQUEZ. Thank you, Mr. Chairman. |
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I'd like to welcome all of the witnesses. Thank you for |
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being here. |
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Clean water is an essential building block of any |
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functioning economy. We depend on it for drinking, bathing, |
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cooking, farming, fishing, manufacturing, tourism, recreation, |
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and many other activities. Without clean water, our health, |
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environment, and economy will be at serious risk. |
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For the past 50 years, the Clean Water Act has safeguarded |
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our rivers, streams, and wetlands from pollution and |
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degradation. Since its inception, it has prevented billions of |
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pounds of pollutants from entering our waters and restored |
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thousands of miles of impaired rivers and streams. |
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This environmental benefit has saved billions of dollars in |
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health care costs by reducing water-borne diseases and |
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supported millions of jobs in industries that rely on clean |
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water. Whether it is our growing craft beer industry, which |
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brings investment to communities across the country, or our |
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behemoth outdoor recreation economy, which provides $862 |
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billion in economic output, robust federal protection for clean |
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water is a prerequisite for the success of a variety of |
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industries. |
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Unfortunately, the 2006 Supreme Court ruling in the Rapanos |
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case upended longstanding protections for many of our nation's |
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precious rivers, streams, and wetlands. As a result, many |
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stakeholders have faced confusion and uncertainty as industries |
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seeking to pollute have attacked the scope of the Clean Water |
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Act. |
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In 2020, the Trump administration imposed the Navigable |
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Waters Protection Rule, which significantly limited federal |
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protection for clean water by excluding safeguards for many |
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wetlands and streams. This rule allowed industries to pollute |
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our waters, and was shifting the cost of pollution to the |
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families, businesses, and communities downstream. |
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Fortunately, this rule was struck down by courts as it |
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largely failed to recognize the scientific evidence on the |
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interconnectedness of our water systems. As a result, the Biden |
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administration has worked to revise the WOTUS rule and provide |
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greater clarity to stakeholders while codifying important |
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exclusions for prior converted cropland, ditches, and |
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artificial ponds. |
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Over the past two years, the EPA has conducted extensive |
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meetings with stakeholders, including many small businesses, |
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and I believe the final product adequately reflects that. |
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This rule demonstrates a clear middle ground between the |
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2015 clean water rule and the 2020 rule. It makes clear that we |
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cannot sacrifice the economy for environmental protection, nor |
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sacrifice the environment for economic growth. As you will hear |
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from our witness today, those two things go hand in hand. |
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Nobody here wants small businesses to deal with excessive, |
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burdensome regulations. However, we must recognize that many |
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regulations, especially those safeguarding our waters, serve an |
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essential purpose in protecting families, communities, and |
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entrepreneurs. In fact, a national survey of small businesses |
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found that 80 percent of small business owners favor federal |
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rules to protect upstream headwaters and wetland. |
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To that end, I want to take this opportunity to announce my |
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opposition to the resolution of this approval filed by |
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Republicans under the Congressional Review Act. Not only will |
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this resolution not achieve the outcome Republicans seek, but |
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it could also actively harm the exclusions they are seeking to |
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protect. It only adds to the confusion and uncertainty that |
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stakeholders are currently experiencing. |
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I advise my colleagues to carefully consider the costs that |
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blanket deregulation could have on businesses that rely on |
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clean water to function. |
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With that, Mr. Chair, I would like to ask unanimous consent |
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that this letter in support of the new revised definition of |
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Waters of the U.S., signed by over 400 businesses that are |
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dependent on clean water, be submitted to the record. |
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Chairman WILLIAMS. So ordered. |
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Ms. VELAZQUEZ. Thank you. I yield back. |
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Chairman WILLIAMS. I will now introduce our witnesses. |
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It is my privilege to introduce a fellow Texan as our first |
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witness, Mr. Frank Murphy, for today's hearing. |
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Mr. Murphy is the Senior Vice President and CFO and COO of |
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Wynne/Jackson, Inc., a real estate development firm and small |
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business based in Dallas that employs eight people. |
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Starting in the early 1970s, by its name sake, Clyde C. |
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Jackson and Toddie L. Wynne, Wynne/Jackson now has a presence |
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throughout Texas, Oklahoma, and New Mexico. And since joining |
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the company in 1985, Mr. Murphy has played a role in over $2 |
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billion worth of projects encompassing everything from |
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apartments to retail space to golf courses, hotels, marinas, |
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and storage facilities. These projects not only have helped |
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spur economic development in countless communities but have |
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also served as the actual foundations for where families live, |
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work, and make lasting memories. |
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In addition to real estate development, Wynne/Jackson has |
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also a long history of participating in philanthropic |
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initiatives, including religious education centers, institutes |
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promoting the responsible use of land, and several |
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international projects. |
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Mr. Murphy's experience in all types of development make |
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him exceptionally qualified to speak about the regulatory |
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burdens facing businesses, such as Wynne/Jackson. He |
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understands the real-world implications of what happens when |
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vital projects that would otherwise benefit whole communities |
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cannot be started due to bureaucratic uncertainty and red tape. |
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So, Mr. Murphy, thank you for joining the Committee today, |
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and I look forward to today's conversation. |
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I now yield my time to Mr. Bean to introduce our next |
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witness. |
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Mr. BEAN. A very good afternoon, Mr. Chairman, to you and |
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the Committee Members, everybody here, small business family. |
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What an honor it is to introduce a fellow Floridian, Ms. |
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Katherine English, for today's hearing. |
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A native of Southwest Florida, Ms. English has worked at |
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the Pavese Law Firm since 1994 and became partner in the year |
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2000. Her law practice focuses on agriculture, environmental, |
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and land use law, which should be no surprise considering her |
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primary occupation is overseeing her family farm, which has |
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been in the English family for over 100 years. |
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It is no exaggeration to say that Ms. English is one of the |
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most qualified people in America to speak with us today about |
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the impact that cumbersome and unclear regulations have on |
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family farms, such as her own. |
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Her legal work has been recognized by her being selected as |
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one of the--you ready for this, Committee Members?--best |
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lawyers in America for 2021 due to her expertise in land use |
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and zoning law. |
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And in addition to family farming and law, it also should |
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be no surprise to any Committee Member here that Ms. English is |
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a community superstar because she has served just so many: |
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Chair of the Farm Bureau Association, the Natural Resource |
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Advisory Committee, a past Chair of the American Farm Bureau of |
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Federation, National Issue Advisory Committee, on Water and |
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Water Quality. And yes, the United Way is blessed with her |
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presence on the Board of Directors for Lee, Hendry, and Glades |
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Counties. |
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Ms. English, welcome to Washington, D.C., the House of |
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Representatives, and to the Small Business Committee. Thank you |
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for joining us, and I'm looking forward to today's |
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conversation. |
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Chairman WILLIAMS. Thank you very much. |
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And I now recognize the Ranking Member, Ms. Velazquez, to |
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introduce her witness for today's hearing. |
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Ms. VELAZQUEZ. Thank you, Mr. Chairman. |
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Our final witness today is Mr. Rick Baumann, a business |
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leader, veteran, and environmental advocate from Murrells |
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Inlet, South Carolina. |
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He was born in New York City in 1948 and went on to enlist |
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in the military in 1966. During his military service he studied |
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at American University. After his honorable discharge in 1969, |
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he founded the business he continues to run today, Murrells |
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Inlet Seafood. |
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In 2012, he founded a non-profit, Trees For Tomorrow. In |
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2019, he became a Riley Fellow at Furman University. |
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Throughout his career he has been a tireless advocate for |
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wildlife, the environment, and clean water. |
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Thank you for being here, and you are welcome. |
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I yield back. |
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Chairman WILLIAMS. Thank you, Ranking Member Velazquez. |
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And I want to say today we appreciate all of you being here |
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today, as I said earlier. |
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Before recognizing the witnesses, I would like to remind |
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them that their oral testimony is restricted to five minutes in |
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length. If you see the light in front of you turn red in front |
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of you, it means your five minutes has concluded, and you |
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should wrap it up as quickly as possible. |
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I now recognize Mr. Murphy for his 5-minute opening |
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remarks. |
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STATEMENTS OF FRANK MURPHY, CHAIRMAN OF THE ENVIRONMENTAL |
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ISSUES COMMITTEE OF THE NATIONAL ASSOCIATION OF HOME BUILDERS; |
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KATHERINE ENGLISH, ON BEHALF OF THE AMERICAN FARM BUREAU |
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FEDERATION; AND RICK BAUMANN. FOUNDER, MURRELLS INLET SEAFOOD, |
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BOARD OF DIRECTORS, SOUTH CAROLINA SMALL BUSINESS CHAMBER OF |
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COMMERCE |
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STATEMENT OF FRANK MURPHY |
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Mr. MURPHY. Mr. Chairman, thank you for the kind |
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introduction, sir. |
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Chairman Williams, Ranking Member Velazquez, and Members of |
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the Committee, on behalf of more than 140,000 Members of the |
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National Association of Home Builders, I appreciate the |
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opportunity to testify today on the 2023 WOTUS rule's impacts |
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on small businesses. |
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My name is Frank Murphy, and I am the Chief Operating |
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Officer at Wynne/Jackson, a small business in Dallas, Texas, |
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with eight employees. I have been employed in the real estate |
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industry for nearly 40 years and am currently honored to serve |
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as the NAHB's Chairman of its Environmental Issues Committee. |
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As to the new WOTUS Rule, it is difficult to overstate the |
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impacts of regulations on small businesses and our ability to |
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provide affordable housing. An NAHB study found that |
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governmental regulations already account for up to 25 percent |
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of the price of a new single family home and over 40 percent of |
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multi-family development. So for every $1,000 of increase in a |
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medium-priced home, it will price out over of 117,000 |
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households from being able to afford such home. |
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EPA has indicated that the new 2023 rule will not have a |
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significant economic impact on small entities. In contrast, the |
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Small Business Administration determined just the exact |
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opposite, acknowledging that the rule would have significant |
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direct impacts on a substantial number of small entities. |
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As an example of this, the 2023 rule inappropriately |
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expands federal authority by relying on undefined regulatory |
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terms and concepts, such as relatively permanent, material |
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influence and its reliance on a more stringent definition and |
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nexus test to assert federal control over otherwise isolated |
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features. |
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This rule increases federal control in wetlands permitting |
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requirements over private property and, thus, increases delays |
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to small businesses awaiting jurisdictional determinations. |
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Ironically, the agencies rushed to finalize this rule |
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before the U.S. Supreme Court issues its Sackett v. EPA, which |
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focuses on the legality of the significant nexus test. |
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As to issues with the new rule itself, I have three main |
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concerns. First, the rule's heavy reliance on the usage of the |
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significant nexus test will cause delays to small businesses |
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awaiting jurisdictional determinations. NAHB Members already |
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report waiting for a year or more for the Corps to to complete |
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such determinations today. |
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Further, under the significant nexus test, the rule |
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authorizes the agencies to base determinations of WOTUS on my |
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property by considering isolated wetlands and tributaries |
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outside the boundaries of my land. Such an approach is just not |
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feasible in practice because I can normally not obtain legal |
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access to the adjoining properties in order to conduct such |
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studies and determinations. I can't do it. |
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I cannot afford the cost nor the time to hire third-party |
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consultants to analyze these waters similarly situated in the |
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region to determine if my property collectively has an impact |
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on the Waters of the U.S. as navigable waters out here. |
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Overall, as a result of the complexity and delays inherent |
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in the significant nexus test, many small businesses will |
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simply give up. Instead, they will opt for preliminary |
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jurisdiction or determination, which allows the agencies to |
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assume a feature is WOTUS. This would then allow a property |
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owner to advance directly to the permitting stages. |
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The usual result of this is that more land will then be |
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classified as WOTUS and reduce the amount of developable land |
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associated therewith. |
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Second, the rule includes many undefined concepts and lacks |
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clear guidance. Instead, small businesses and their consultants |
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must interpret conflicts within the final rule's preamble, |
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regulatory text, and scientific technical documents. Such an |
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approach by the agencies ensures confusion and uncertainty for |
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small businesses seeking to comply with the law. |
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Third, the agencies have cast doubt by stating that |
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determinations issued under the Navigable Waters Protection |
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Rule are no longer valued. As a result, land owners are forced |
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to start over if they want a valid determination. These |
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determinations are supposed to be valid for five years. |
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Further, with the final rule's preamble, the agencies state |
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that even when prior determination found that no permit was |
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required, land owners could now risk violations of the law if |
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they move ahead with a project without obtaining a new |
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determination. This is a clear example of moving the goalposts |
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on small businesses. |
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In closing, I want to thank the Members of the T and I |
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Committee for reporting out the CRA to rescind the Biden WOTUS |
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rule last week. I look forward to a swift passage on the House |
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floor. |
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Until the CRA is passed or enacted, I encourage Congress to |
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direct the agencies to delay this rule until the Supreme Court |
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decides Sackett. NAHB believes there should be no WOTUS before |
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SCOTUS. |
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Thank you for the opportunity, Mr. Chairman and Committee |
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Members, to testify before you, and I look forward to your |
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questions. |
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Chairman WILLIAMS. Thank you, Mr. Murphy. |
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And now I recognize Ms. English for her 5-minute opening |
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remarks. |
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STATEMENT OF KATHERINE ENGLISH |
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Ms. ENGLISH. Thank you, sir. |
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Chairman Williams and Ranking Member Velazquez, thank you |
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for the opportunity to testify today. |
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My name is Katherine English, and I am a farmer, rancher, |
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small business owner, and environmental lawyer from Fort Myers, |
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Florida. It is an honor today for me to represent the American |
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Farm Bureau Federation, and I speak on behalf of the thousands |
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of hardworking farmers and ranchers who produce the food, |
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fiber, and renewable fuel that our nation and the world depend |
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upon. |
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Farmers and ranchers' livelihoods depend on healthy soil |
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and clean water. We support the Clean Water Act and its goals. |
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What we cannot support is a Waters of the United States rule |
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that is so ambiguous, it creates unmanageable risk and |
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confusion for farmers, farmers who struggled with uncertainty |
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for decades with near constant rulemaking in litigation |
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regarding WOTUS. |
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A workable definition of WOTUS is critically important to |
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our Members, and they are extremely disappointed that the Biden |
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administration's new WOTUS rules fail to provide that. This new |
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rule greatly expands the federal government's reach over |
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private property, asserting jurisdiction over ephemeral |
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drainages, ditches, swales, and low spots in farm fields and |
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pastures. |
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The significant nexus test allows the agencies to aggregate |
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and regulate waters that would not otherwise be subject to |
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permit, relying on vague language vulnerable to subjective |
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interpretation to do so. It is impossible with this new rule |
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for any farmer or rancher to know whether their irrigation and |
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drainage infrastructure and fields are jurisdictional waters |
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requiring Clean Water Act permits. |
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Considering these features as jurisdictional waters risk |
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federal regulation of everyday farm and ranch activities that |
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move dirt and apply products to the land, such as planting, |
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cultivating, fence building, or ditch maintenance. Doing work |
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in or near these features without a jurisdictional |
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determination or a permit risks triggering the Clean Water |
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Act's harsh civil and even harsher criminal penalties. This is |
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the experience that farmers will have with this new definition |
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of WOTUS. |
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Before the 2020 WOTUS rule went into effect, I worked with |
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a Florida farmer seeking authorization to insert earth blocks |
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totaling less than a half an acre of fill into existing upland |
|
cut ditches on a farm that had been in operation for decades. |
|
The ditch blocks were needed to hydrate an existing wetland |
|
mitigation area. |
|
The farmer waited for more than a year for a nationwide |
|
permit only to be told an archeological study of the farm was |
|
needed to comply with the federal historical preservation |
|
requirements for the permit, even though the property had an |
|
archeological study that had previously been completed, |
|
reviewed, and accepted by the State's historical preservation |
|
agency. |
|
The Army Corps of Engineers' archeologist decided the |
|
existing study was insufficient and wanted a new study that |
|
would cost tens of thousands of dollars and months of delays to |
|
resolve his concerns. Shortly thereafter, the 2020 rule went |
|
into effect, and the Corps' staff determined that the project |
|
no longer required a permit since the proposed work affected |
|
only upland cut ditches upstream of the project's State |
|
permanent outfall structure. |
|
Also frustrating to our Members is the agency's claim that |
|
the costs associated with this rule are de minimis. The only |
|
way this conclusion is possible is to ignore all the costs that |
|
farmers incur to comply with the rule. The agencies ignore the |
|
cost of the team of experts required to successfully navigate |
|
the permitting process, biologists, hydrogeologists, attorneys, |
|
and engineers. |
|
The agencies also ignore the cost of mitigating impacts and |
|
the lost opportunity cost caused by years of delay. These |
|
permits are beyond the means of many farmers who already |
|
operate on thin margins and discourage the kinds of |
|
agricultural innovation we need to remain competitive and |
|
sustainable. |
|
A key factor in the WOTUS debate centers around the Supreme |
|
Court's consideration of the highly consequential Sackett v. |
|
EPA case. This case should provide clarity regarding the |
|
appropriate scope of a WOTUS definition. By finalizing this |
|
rule before the Supreme Court issues its decision, the agencies |
|
reinforce the perception that they want this rule in place |
|
before the court clarifies the significant nexus test. |
|
Farmers and ranchers are extremely frustrated that our |
|
concerns were ignored in the final rule, as were our efforts at |
|
participation in the process. This new rule creates confusion, |
|
more legal and financial risk, discouraging the entrepreneurial |
|
spirit that small family farms and ranchers rely on to survive. |
|
This rule may well result in irreparable harm to our rural |
|
communities who rely on these small businesses who are being |
|
disproportionately burdened by this overreaching rule. |
|
Thank you for the opportunity to share our perspective on |
|
this important issue, and I look forward to taking your |
|
questions. |
|
Chairman WILLIAMS. Thank you, Ms. English. |
|
And next I want to recognize Mr. Baumann for his 5-minute |
|
opening remarks. |
|
|
|
STATEMENT OF RICK BAUMANN |
|
|
|
Mr. BAUMANN. Thank you, Mr. Chairman. |
|
Before I push my button, I just want to compliment the |
|
previous speakers, and I respect their views very much, and I |
|
understand them. |
|
Here is my statement: Good afternoon, Chairman Williams, |
|
Ms. Velazquez, and distinguished Committee Members. |
|
I am Rick Baumann from the fishing village of Murrells |
|
Inlet in the seafood capital of South Carolina. |
|
Thank you for this opportunity to speak to you today. |
|
I would like to begin with a very short dedication to the |
|
testimony I am about to give to my late friend and mentor Dr. |
|
Ian W. Marceau, Ph.D. |
|
Ian was from Australia, but he spent many years of his life |
|
in the United States, both in Washington and as an advisor to |
|
the Governor of New York before he retired to South Carolina. |
|
In his lifetime, Mr. Marceau did a lot of great work, both |
|
for the environment and agriculture. He had a Ph.D. on either |
|
side there. All over the world he worked, but his proudest days |
|
were spent here in D.C. helping to write and negotiate the |
|
Clean Water Act into law to fulfill President Nixon's vision of |
|
clean air and water for all Americans. |
|
During our many days spent together enjoying the outdoors, |
|
Ian and I talked a lot about clean water. He tempered his pride |
|
about the Clean Water Act while lamenting the fact that so much |
|
more had been learned since the Act was written that |
|
desperately needed to be addressed. |
|
So many new chemicals of convenience had come into |
|
existence: Pesticides and fertilizers and so many others, and |
|
we were just beginning to understand their negative impacts on |
|
land, water, wildlife, and human beings. We were starting to |
|
learn the profound impacts of non-point source pollution, how |
|
toxic man-made compounds and chemicals spread on the land were |
|
ending up in the wetlands, streams, and rivers, and how they |
|
were being found in our drinking water. |
|
In 2004, when I was appointed to my county's Stormwater |
|
Advisory Committee, I was fortunate to have two geniuses |
|
advising me at every meeting, Dr. Marceau and Dr. Kraner, |
|
Ph.D., formerly of Brookhaven National Laboratory on Long |
|
Island. And together, using only the facts, we were easily able |
|
to make a very strong case that our fast-developing area was |
|
threatening our small business economy by failing to address |
|
non-point source pollution and its effects on that economy, |
|
which so specifically require clean water to survive and |
|
thrive. |
|
As those meetings progressed, we received a great deal of |
|
pushback from the exact name special interest and industries |
|
that we've heard from today. I have often seen this scenario |
|
play out in many areas of the country. |
|
When I was young, I worked on a Black Angus farm in Upstate |
|
New York, and I have been a waterfowl hunting guide in many |
|
areas of the country, in the agricultural Eastern Shore of |
|
Maryland to the Rice Belt in Texas and everywhere in between. I |
|
am keenly aware of the challenges facing today's farmers. They |
|
are immense. And I am a Member of the South Carolina Farm |
|
Bureau. |
|
Like farmers, I am in the business of feeding people, too. |
|
Since 1967, I have fed many millions of folks with their |
|
seafood dinners, but I am not just speaking for the seafood |
|
industry. I am speaking for all the small businesses, which |
|
exist in the vicinity of watersheds all across America. |
|
When we think of a recreational and commercial fishery, we |
|
need to realize that there is a very large group of small |
|
businesses which are intertwined with that fishery. We have ice |
|
companies, boat mechanics, dry docks, and marinas. Plus, there |
|
are assorted rental businesses. We have boat companies, |
|
fiberglass works, tour guides, bait shops, bait catchers, rig |
|
and tackle shops, crabbers, oystermen, clammers, wholesale |
|
seafood processors, charter fishing guides, commercial |
|
fishermen, retail stores like mine. |
|
In the secondary market are the restaurants that purvey |
|
local seafood and all of their employees, right down to the |
|
dishwashers. Then you have the gift shops, cafes, breakfast |
|
houses, the Airbnb's, rental cottages and condos, convenience |
|
stores and more. |
|
Also, in the secondary market requiring clean water are the |
|
campers, hunters, birders, and recreational anglers who are |
|
part of the $887 billion outdoor recreation economy. On and on |
|
I could go with examples. |
|
I can assure you folks, without a doubt, that anywhere in |
|
our great country where there is navigable water, there is |
|
another plethora of small businesses which relies on clean |
|
water for their businesses to thrive. I can also assure you |
|
that wherever there is navigable water, there are wetlands, |
|
sometimes isolated. There are ditches, creeks, and ephemeral |
|
streams that flow into those navigable waters at various times, |
|
if not perpetually. |
|
The credible science speaks much louder than the fallacious |
|
disinformation. These waters absolutely need CWA protection if |
|
we are to ensure President Nixon's vision of clean water, land, |
|
and air for all Americans. |
|
Thank you so much for your kind attention. |
|
Chairman WILLIAMS. Well, I want to thank all of you. You |
|
all hit your number right on, all three of you. You don't see |
|
that too often. Thank you. |
|
We will now move to the Member questions and the 5-minute |
|
rule. |
|
And I now recognize myself for five minutes. |
|
As a business owner of over 50 years, I know what happens |
|
when uncertainty is added to a business, and I still own my |
|
businesses. Some of you might not know this, but I operate a |
|
small calf/cow operation in Texas, Angus. And I remember when |
|
this rule initially came out under the Obama administration, |
|
people in the industry were asking me if a ditch on their |
|
property would now be subject to EPA and regulations. |
|
So Ms. English, you have been in the business for long |
|
enough to know the legal battles with the different iterations |
|
of this rule. So my question is: Can you describe how this new |
|
WOTUS rule adds more uncertainty, and could it be even worse |
|
than the Obama era rule? |
|
Ms. ENGLISH. Thank you, Mr. Chairman. Yes, I think I can |
|
help with that. |
|
The biggest problem that we have with this rule is its |
|
uncertainty. The Obama rule was clear about what it covered, |
|
which was essentially everything even though that is not what |
|
was contemplated under the Clean Water Act. Specifically, |
|
101(b) of the Clean Water Act talks about the fact that this is |
|
an exercise in cooperative federalism where some waters are |
|
protected by the federal government for those that are |
|
important to them, and the others can be regulated by the |
|
States. |
|
This rule is simply unknowable. Unless you have hired a |
|
lawyer, a biologist, an engineer, and, in some instances, a |
|
geologist, you have no idea of knowing what your jurisdiction |
|
is, and you won't know then until you actually file an |
|
authorized jurisdictional determination with the Army Corps of |
|
Engineers. |
|
Chairman WILLIAMS. Thank you for that. |
|
Last week we held a hearing with small business owners from |
|
a wide variety of industries, from different corners of the |
|
country, and every one of our witnesses discussed how inflation |
|
is affecting their operations. Something that I am very |
|
concerned about is how this rule could add fuel to the fire and |
|
make inflation even worse for all Americans. |
|
Many business owners have no choice but to pass the high |
|
cost of compliance with new rules like WOTUS on to their |
|
consumers, but in many cases you can't do that. |
|
So Mr. Murphy, in your testimony, you discussed how this |
|
new rule could force you to hire more environmental compliance |
|
officers, and it could lead to permitting delays for projects. |
|
So the question would be: Can you discuss your business' |
|
ability to absorb these costs and some of the changes that you |
|
are considering making in order to comply with the confusing |
|
new EPA guidelines? |
|
Mr. MURPHY. That is a very detailed question. So I am going |
|
to try to keep it very simple in deference to time, Mr. |
|
Chairman. |
|
Yes. First off, it will have significant impact because we |
|
have to go through the additional determinations on already |
|
existing jurisdictional JDs to have them redone and validated. |
|
We presently have projects that are in the development pipeline |
|
that have existing JDs. We have to stop the process now, as we |
|
are going through the engineering, construction, and permitting |
|
process, while we re-determine under the new WOTUS rules |
|
whether those projects are subject to WOTUS or not. We don't |
|
know. |
|
Now, consultants may not know it either, based upon some of |
|
the criteria set forth. So what do we do? We stop; we pause; we |
|
reconsider, which has the impact of delaying projects. |
|
We are already facing inflationary issues, as you have |
|
already addressed here, which leads to compounding of |
|
affordability, housing shortages, and so forth. |
|
So by delaying this while we reconsider the impacts |
|
associated, and we receive new JDs, we are going to shut |
|
projects down, and that will lead directly to increased housing |
|
costs, increased lack of affordability, and shortages of homes |
|
and lots. |
|
Chairman WILLIAMS. And jobs, too. |
|
Mr. MURPHY. And jobs, too, sir, yes. Good point. |
|
Chairman WILLIAMS. Thank you. |
|
There are always laws in the books that are supposed to |
|
protect small businesses from some of the worst regulations |
|
coming out of Washington. Unfortunately, it appears many of |
|
these required checks against regulatory overreach are not |
|
being taken seriously by the agencies, and I am proud to say |
|
this Committee sent out 25 letters seeking more information on |
|
how they are complying with the laws in the books. We want to |
|
know how they are helping us. |
|
Now, Ms. English, I want to ask you about any suggestions |
|
you might have to force these agencies that we are talking |
|
about to seriously consider small business interests as they |
|
make these large rules. |
|
Ms. ENGLISH. The Small Business Administration has already |
|
sent a scathing letter exercising its concern with EPA about |
|
their failure to comply with your rules. I would suggest to you |
|
that, perhaps, at this point, the most effective tool is the |
|
pocketbook. I would consider removing authorization for |
|
expending funds for enforcement of this rule or, in the |
|
alternative, remove appropriations that were intended for the |
|
enforcement of this rule. |
|
I am not sure that anything else would help. |
|
Chairman WILLIAMS. Thank you. |
|
With that, I yield my time back. |
|
And I now recognize the Ranking Member, Ms. Velazquez, for |
|
5 minutes of questions. |
|
Ms. VELAZQUEZ. Thank you. |
|
This question I will ask each Member of the panel to please |
|
answer yes or no. |
|
Tomorrow the House is scheduled to vote on a CRA resolution |
|
to block implementation of the 2023 revised WOTUS rule. Do you |
|
believe that enactment of this CRA will reinstate the Trump |
|
administration's Navigable Waters Protection Rule that was |
|
vacated by a federal district court in 2021? |
|
Mr. MURPHY. I assume you want me to answer first. |
|
I hate to say yes but good chance, yes. |
|
Ms. VELAZQUEZ. Ms. English? |
|
Ms. ENGLISH. The House resolution will not re-implement the |
|
notice of the Trump era rule. |
|
Ms. VELAZQUEZ. Mr. Baumann? |
|
Mr. BAUMANN. As I understand it, the new rule, the Biden |
|
rule will pretty much mirror what was on the books prior to |
|
2015. What I would like to point out is that from 1986 until |
|
2015, there were no lawsuits. There was no arguing. There was |
|
no hearing. Everybody got along. I don't understand what the |
|
big deal is, but I am being enlightened somewhat. |
|
Ms. VELAZQUEZ. When the court vacated the Trump rule in |
|
2021, the federal agencies reverted back to using the pre-2015 |
|
rule approved by former President Reagan and later defined by |
|
President Bush. |
|
If this resolution is enacted it will not only do away with |
|
the Biden rule, it will also prevent agencies from interpreting |
|
any new rule that is substantially the same meaning that this |
|
will likely tie the hands of the Corps and EPA from further |
|
clarifying the scope of WOTUS unless Congress enacts some |
|
additional law. |
|
Do you believe that indefinitely tying the hands of the |
|
agencies to further clarify the WOTUS issue is good for small |
|
businesses' clarity and certainty? |
|
Mr. Murphy? |
|
Mr. MURPHY. We need clarity at the end of the day. The new |
|
Biden rule basically expands the definition of significant |
|
nexus test, which is much more cumbersome than the pre-2015 |
|
rule. |
|
Do I believe it should bind the hands of the Corps |
|
ultimately? No. But we need some guidance by which to establish |
|
the certainty of the rule and not be subject to continual |
|
changes every time a new administration comes in and takes |
|
issues with the existing rule. |
|
Ms. VELAZQUEZ. Ms. English, do you believe that |
|
indefinitely tying the hands of the agencies to further clarify |
|
the WOTUS issue is good for small businesses' clarity and |
|
certainty? |
|
Ms. ENGLISH. I don't believe that the resolution will tie |
|
the hands of the Corps and EPA. |
|
Ms. VELAZQUEZ. Okay. |
|
Ms. ENGLISH. Frequently, in dealing with the Corps staff |
|
now, I am struggling with being back in the 1980s. |
|
Ms. VELAZQUEZ. Thank you. |
|
And Mr. Baumann? |
|
Mr. BAUMANN. You know, lawyerese is not my forte, but I am |
|
concerned about the drinking water and the fishing water and so |
|
forth for my grandchildren and great grandchildren. |
|
Ms. VELAZQUEZ. Thank you. Thank you, Mr. Baumann. |
|
I would like to ask another follow-up question. Under the |
|
Trump WOTUS rule, EPA estimated 50 percent of wetlands and up |
|
to 70 percent of rivers, lakes, and streams lost protection |
|
under the Clean Water Act. How did this impact your business? |
|
Mr. BAUMANN. Honestly, until it was struck down, it didn't |
|
have a profound impact, but it had a lot of impact from Mr. |
|
Murphy's business in my area because so much land that was |
|
under water, so much land that was swampland was filled and |
|
built with very small lots and houses close together, taking |
|
natural ground that absorbs the water and looks after our |
|
drinking water and absorbs rainwater, trees, and so forth that |
|
sequester rainwater and pollutants. Okay? |
|
These were--clearcut houses were built, and, you know, the |
|
swamps were filled. And when it rained, when we had a tropical |
|
storm or a hurricane or even just a hard summer thunderstorm, |
|
we had profound runoff and flooding. |
|
Ms. VELAZQUEZ. Thank you. |
|
I yield back. |
|
Chairman WILLIAMS. Thank you, Ms. Velazquez. |
|
I now recognize Mr. Luetkemeyer. |
|
Before I do that, reminding myself and all of you, make |
|
sure your button is on when you speak. Okay? |
|
Mr. Luetkemeyer from Missouri. |
|
Mr. LUETKEMEYER. Thank you, Mr. Chairman. |
|
And, yes, I have heard from a lot of my constituents from |
|
Missouri with regards to the Navigable Waters Protection Rule |
|
of the Trump administration, and they believed that it gave |
|
certainty and predictable, at least more than what we have now. |
|
Ms. English, could you compare that rule with what is being |
|
proposed today? Just give me three or four differences that you |
|
can point to that are problematic. |
|
Ms. ENGLISH. Certainly. |
|
Under the Navigable Waters Protection Rule, it was clear |
|
that upland cut ditches were not included in the rule in places |
|
where a permanent outfall structure and a surface water |
|
management system was authorized behind that structure. It was |
|
clear that there was no intention for the Clean Water Act to |
|
apply to that; that that was an area that had already been |
|
permitted and maintenance in that area, and that is the example |
|
that I gave you specifically. |
|
Under the present rule, the proposed rule, all of that |
|
would be jurisdictional, and I would be going through the |
|
entire process. |
|
What I think is important to remember is the uncertainty of |
|
this rule drives the fact that I can't ever look at something |
|
with certainty and tell my family or tell a client or tell a |
|
friend that I know for certain they are not dealing with Waters |
|
of the United States. |
|
The benefit of the Navigable Waters Protection Rule was I |
|
could answer that question straight. |
|
Mr. LUETKEMEYER. One of the things that is concerning to me |
|
is I come from Missouri, and the Farm Bureau there in Missouri |
|
says that this rule would affect 99.9 percent of the land in |
|
our State. That means the federal government has control over |
|
whatever you want to do on 99.9 percent of the land in my |
|
State. That is unconscionable. That can't happen. |
|
You know, I understand. I am not against clean water. I am |
|
not against clear air, but there is a limit to the Government's |
|
overreach and authority to be able to come out and control what |
|
goes on. |
|
You know, Mr. Murphy, you talked about the cost. Have you |
|
looked at this rule itself and what the average cost per home |
|
that you would build would be incurred by you as a builder or |
|
the person who purchased the home from you? What percentage of |
|
the cost would increase as a result of that? |
|
Mr. MURPHY. I can't give you the percentage or the cost per |
|
individual home because it varies based upon the individual |
|
projects, but I can tell you what we looked at, potential price |
|
impact or cost impact in total. |
|
Mr. LUETKEMEYER. Okay. |
|
Mr. MURPHY. So for existing jurisdictions that we have, we |
|
have to go redo those, and the cost of a new jurisdictional |
|
study itself is usually $10 to $20,000 just for the study. Then |
|
if we have to go through the individual permitting process, not |
|
even talking about time delays but the individual permitting |
|
process is usually 50 to 75,000. |
|
Then if we wish to proceed with development impacting the |
|
Waters of the U.S. with the mitigation, mitigation costs on two |
|
projects we studied recently of our own could be upwards of |
|
$600 to $1.5 million per project. |
|
Mr. LUETKEMEYER. That is per home? |
|
Mr. MURPHY. Per project. |
|
Mr. LUETKEMEYER. Per project. |
|
Mr. MURPHY. One of these is a 500-acre project, and the |
|
other one is about a 300-acre project. So a significant cost. |
|
So we then have to take that cost, mark it up by interest |
|
and debt, carry cost, and associated delay factors, and then |
|
pass it through. Ultimately, what we are limited to passing |
|
through cost-wise is what the market will accept. |
|
We can't just unilaterally increase the price of the lot, |
|
increase the price of the home $10,000, because it may not be |
|
marketable. If that is the case, we have to simply shut down |
|
and stop development on that project. |
|
Mr. LUETKEMEYER. Wow! That is mind-blowing. |
|
Ms. English, you talked a little bit about the cost to |
|
farmers to be able to comply. You know, Mr. Murphy just blew a |
|
hole in all of the trying to build new homes here and develop a |
|
whole new subdivision. |
|
If a farmer is wanting to do something on his ground or |
|
they come out and say that there is some navigable waters on |
|
his property and he has to comply, it would seem to me that it |
|
would hurt the value of his property, hurt his ability to |
|
market and sell that property. Is that a fair assessment? |
|
Ms. ENGLISH. That is absolutely the case. I'm sorry. That |
|
is absolutely the case. If you fail to resolve that issue, it |
|
will affect the value of your property. |
|
Mr. LUETKEMEYER. So what we are looking at here is |
|
devaluing farmers' property, raising the cost to individuals |
|
who want to purchase a home or rent an apartment from a multi- |
|
family unit development perhaps out of their price range. |
|
Right now we already have a problem with affordability. I |
|
mean, I sat on another committee and that is all we talk about |
|
all the time is the unaffordability of housing today. And now |
|
we are going to add this as one more cost to drive people away |
|
from being able to buy their dream home. |
|
Thank you so much for your testimony today. |
|
Mr. Chairman, I yield back the balance of my time. |
|
Chairman WILLIAMS. Thank you very much. |
|
And next I would like to recognize Congressman Thanedar of |
|
Michigan for five minutes. |
|
Mr. THANEDAR. Chairman Williams and Ranking Member |
|
Velazquez, thank you for convening this hearing on the Waters |
|
of the United States. |
|
I want to thank everyone who came to testify before our |
|
Committee. Your firsthand knowledge of our country's |
|
environment enables our body to contribute more to the work we |
|
do in Congress. |
|
There is no doubt of the importance of Clean Water Act. In |
|
Michigan, our citizens rely on clean water to protect public |
|
health. It has been critical to the significant progress we |
|
have made as a State in improving the quality and health of our |
|
rivers, streams, lakes, wetlands, and watersheds. |
|
Furthermore, clean water is a basic need for families and |
|
businesses across the United States, particularly in Michigan. |
|
The Great Lakes support over 1.3 million jobs generating 82 |
|
billion in wages annually. It is critical to discuss the |
|
importance of Great Lakes as a water source and the worlds most |
|
extensive fresh water system, which extends to the Detroit |
|
River. |
|
As a result, it is vital to ensure the safety and quality |
|
of waters that are the lifeblood of our district. Any repeal of |
|
the Clean Water Act would represent a step back in protecting |
|
our water resources. |
|
Wetlands and other critical habitats could be destroyed, |
|
affecting human health and the environment. This is a disaster |
|
for small businesses, as 80 percent of owners support federal |
|
regulations to protect upstream headwaters and wetlands. Our |
|
companies rely on the Clean Water Act. |
|
Now, I do appreciate your viewpoints, every one of you. I |
|
am a former small business owner, and we have small businesses |
|
on both sides of this debate. Quite frankly, I am sympathetic |
|
to potential regulatory burden, but I am also struggling to see |
|
how we can protect our clean waters while also being mindful of |
|
additional cost. |
|
Does anyone on the panel have any proposals on how to help |
|
fishermen and oyster farmers like Mr. Baumann and farmers and |
|
builders like Mr. Murphy and Ms. English? I'm willing to |
|
listen, and I am interested in finding some sort of middle |
|
ground and hope today we can help lead to that. |
|
A specific question, Mr. Baumann, to you is: How is this |
|
reduced regulation affecting our tourism, say, for example, or |
|
recreation? |
|
Mr. BAUMANN. It can be profound at times. |
|
But I would like to, if you don't mind, address the general |
|
statement you made and some of the remarks that were recently |
|
made about cost to farms and to developers. |
|
The EPI was promulgated a few years ago when our |
|
illustrious President appointed a coal lobbyist to head the |
|
EPA, a coal lobbyist, and they started the environmental |
|
integrity think tank and watchdog. And the EPI has tested |
|
700,000 miles of river in realtime. The EPA, on the other hand, |
|
hasn't--and they are required to by the Clean Water Act, has |
|
not upgraded their evaluation of our waters in over 30 years. |
|
Can you imagine how much has changed in that much time? |
|
And it is important to know that the Mississippi River |
|
alone carries an estimated 1.5 metric tons of nitrogen |
|
pollution from agriculture into the Gulf, nearly creating a |
|
dead zone each summer the size of New Jersey. |
|
Now, you want to talk about cost? Gulf shrimp? Oysters? |
|
Let's think also parallel to that. The BP oil spill and the |
|
dreaded Corps exit that they used before they tested. That is |
|
what a lot of our problem is. We get out ahead of the science |
|
with some human activity. We get out ahead of the science. They |
|
used the Corps exit before they found out there was 30 |
|
carcinogens in it. All right? |
|
And the agricultural--I mean, the farmers don't mean to do |
|
this, but it is a consequence of feeding America. But they are |
|
not as careful as they claim to be. It is just that simple. And |
|
they are quick to portray a pastoral image of the family |
|
farmer. And God bless the family farmer. I have worked for |
|
them. |
|
But our problem in our area that is affecting the waters |
|
that flow through our State and the conditions of those waters |
|
and the cost of cleaning up such things is the fact that we |
|
have these big mega farms. |
|
Chairman WILLIAMS. Mr. Baumann, your time has expired. |
|
Mr. BAUMANN. Excuse me. |
|
Mr. THANEDAR. Thank you, Mr. Baumann. |
|
I yield back. |
|
Chairman WILLIAMS. Next I would like to recognize Mr. |
|
Meuser from Pennsylvania for five minutes. |
|
Mr. MEUSER. Thank you very much, Mr. Chairman. |
|
Thank you to all of our witnesses. Mr. Murphy, Ms. English, |
|
and Mr. Baumann, we appreciate your passion on this issue very, |
|
very much, actually. |
|
In eastern Central Pennsylvania, we have thousands of |
|
family farms. Every one of them that I speak to, and I speak to |
|
a lot of them, is very, very concerned about this new Biden |
|
WOTUS regulation going back to what existed before. They were |
|
generally pleased with the Clean Water Act prior because there |
|
was a certain level of certainty. |
|
But when you start talking about this WOTUS, where there |
|
are no nexus limits set, no distance limits set, what is |
|
considered navigable, what isn't, removing the word navigable. |
|
So does that mean heavy rains create new requirements? And then |
|
when the rains aren't there, it doesn't so much? |
|
You know, most family farms have their creeks and streams |
|
lead into other family farms, particularly up in my neck of the |
|
woods. So there are great conservationists. |
|
Now, being a great conservationist and being an |
|
environmentalist, as I certainly classify myself, doesn't |
|
necessarily mean you are going to always follow the most--the |
|
rules established, but when you have a family farm for 100 |
|
years, it tends to do that. |
|
So, you know, when you are dealing with a WOTUS rule like |
|
that, as Vice Chair Luetkemeyer brought up, where 99.8 percent |
|
of the private property is going to come under federal |
|
jurisdiction, I agree with my colleague who was just speaking |
|
that, boy, there needs to be a middle ground here. |
|
And just the fact that this is going to be overturned by |
|
SCOTUS, because it can't possibly. I mean, I have more notes |
|
here of what I can talk about on all the legal problems that |
|
exist with Attorney English. I am sure you could go on, and I |
|
would yield to you, and we would hear a lot of that. |
|
So it is going to be overturned and for a good reason, that |
|
it is a profound overreach. I mean, I have more quotes from |
|
farmers. I couldn't get them off the phone when I asked them to |
|
comment on this hearing, as well as all these other quotes from |
|
people from Zippy Duvall, to the NFIB, to the president of the |
|
Pennsylvania Farm Bureau, home builders. I mean, it just goes |
|
on that it is way too nebulous and troubling and potential high |
|
levels of costs and unnecessary regulations. |
|
So we need to come up with a fix, and we are the body. You |
|
know, the Small Business Committee is the only Committee in the |
|
old Congress that is here advocating for small business. So |
|
that is what we have to do. |
|
So I will just ask a question. I will go to Ms. English |
|
first. Where do you see--we just go back to what we currently |
|
have. What do you see as a solution that we should try to focus |
|
on? |
|
Ms. ENGLISH. I would encourage Congress to look to the |
|
congressional intent that is already expressed in the Clean |
|
Water Act. The fact that this was intended to be an exercise of |
|
federalism, that there is responsibility, and there are spaces |
|
that require the attention and focus and the power of the |
|
federal government to protect. But that is not all the waters |
|
in the United States. It was not intended to be all of the |
|
water bodies that existed in the United States. |
|
The States, many States have vigorous regulatory programs |
|
to protect what they see as State waters that encompass |
|
everything from the interior to the isolated to the coastal. |
|
The EPA has been very successful in using the Clean Water |
|
Act to encourage States to adopt reasonable water quality |
|
standards to protect the water uses in that State. I would |
|
suggest gently that Congress has told EPA how to do this and |
|
that, perhaps, EPA needs to re-focus on the language in the |
|
statute that Congress has given it. |
|
Mr. MEUSER. Excellent. |
|
Mr. Murphy, and then if I have time, I will go to Mr. |
|
Baumann. |
|
Mr. MURPHY. Same question, sir? |
|
Mr. MEUSER. Same question. |
|
Mr. MURPHY. I am not an expert in legal affairs, especially |
|
regarding Congress. |
|
Mr. MEUSER. You are on the ground field for it. |
|
Mr. MURPHY. We need certainty. Interact directly with the |
|
Corps, EPA, to establish a level of certainty that is not going |
|
to be subject to change upon each administration's change. We |
|
can't afford to change every four years or some other time |
|
because that forces us to go back to the JD process and start |
|
over. |
|
Mr. MEUSER. I appreciate that. |
|
I am going to have to yield back. But thank you. |
|
Mr. LUETKEMEYER. [Presiding.] The gentlemen yields back. |
|
I am glad you are trying to minimize your concern there. |
|
With that, we go to--I now recognize the gentleman from |
|
Kentucky, Mr. McGarvey, for five minutes. |
|
Mr. MCGARVEY. Thank you, Mr. Chairman. I appreciate that. |
|
I appreciate the panel for being here and telling us about |
|
your experiences. |
|
And the Chairman mentioned, I am from Kentucky. You all |
|
might not know too much about our State but might have heard a |
|
little bit about one of our products that we make there, and I |
|
can tell you that the four sort of core ingredients of bourbon |
|
are corn, yeast. You have to have a new charred white oak |
|
barrel and, of course, water. |
|
So bourbon. I won't go into a dissertation on bourbon today |
|
for the small business community. It gets its flavor from a lot |
|
of things, including the barrel, including the corn, including |
|
the products that go into it. But a lot of it does come from |
|
the water and from Kentucky's limestone water and from a lot of |
|
the properties we possess in our clean water. |
|
We have heard today a lot about the negative impacts that |
|
these regulations can have on farmers, on developers, on |
|
communities. And I agree. We deserve a clear and |
|
straightforward framework. |
|
But I think it is also important to acknowledge the |
|
negative impacts that weak water standards have and how they |
|
would devastate some industries. Whether it is breweries, |
|
whether it is fishing, whether it is my State's home industry |
|
of bourbon, these are entries that rely on clean water. |
|
And so, Mr. Baumann, I just wanted to hear from you a |
|
little bit about those kinds of benefits that those businesses |
|
that benefit from the regulations that we have ensure clean, |
|
safe water, and what kinds of small businesses are harmed when |
|
these water standards are relaxed. |
|
Mr. BAUMANN. There is so much I can answer that with. I |
|
will begin by telling you that we have a lot of beautiful |
|
rivers in South Carolina. We have a multi-billion dollar |
|
tourist industry. We have billions of dollars in the fisheries |
|
and in the outdoor recreation, and all that gets hurt. |
|
I will give you an example. We have polluters. We have coal |
|
fired power plants. We have agriculture. We have the |
|
aforementioned situations with the fill and build, fill in the |
|
wetlands and building on it and causing runoff and flooding and |
|
non-point source solution to our estuaries, which are the |
|
nursery grounds for everything we catch, you know. So it is |
|
really profound. |
|
And in South Carolina, to give you an idea about our |
|
recreational fishing and our ocean fishing and commercial |
|
fishing, there are health advisories now and have been for |
|
years during the EPA and the clean water rule in my view that |
|
is just not being addressed properly because we have health |
|
advisories telling us that we can't eat the fish we catch. |
|
I mean, that has got to--people go fishing to filet the |
|
fish and fry it for dinner. And when you can't eat the fish you |
|
catch because of mercury poisoning or some other heavy metal or |
|
whatever, it has to have profound impact on how many people go |
|
fishing, the money they spend in the community, in restaurants |
|
and hotels and everything else like that. It is an economic |
|
wheel that is being disrupted by a lack of good water quality. |
|
Our estuary now is an impaired estuary according to the |
|
EPA. The reason is non-point source pollution. It is just a |
|
small inlet. There is no major fresh water creeks going into |
|
it. It is from rain runoff, all of it. |
|
Mr. MCGARVEY. And you bring up something I think is worth |
|
noting in this hearing. I think this is something we all |
|
inherently know, but I think it is worth pointing out, our |
|
waters are connected. |
|
Mr. BAUMANN. All water is connected. |
|
Mr. MCGARVEY. You can't pollute water in one place and not |
|
feel the effects somewhere else. We are low on time, Mr. |
|
Baumann. I appreciate your testimony. |
|
But, Ms. English and Mr. Murphy, I would like to give you a |
|
chance to chime in. I am sympathetic, again, to needing a |
|
clear, straightforward framework and the real-life impacts of |
|
regulations. What kind of middle ground do you think we can |
|
pursue that would address your concerns and those of Mr. |
|
Baumann about the need for clean water? |
|
Ms. ENGLISH. Thank you. |
|
Again, I think the idea that the only solution here is at a |
|
federal level is very concerning to me. I think a bright line |
|
test for where the federal interest stops and where the State |
|
responsibility begins would be an important step, because it |
|
would then allow the discussion to take place about the kinds |
|
of protections that need to take place locally. It is with that |
|
local knowledge I think the middle ground can be found. |
|
Mr. MCGARVEY. And unfortunately, we are out of time, so I |
|
am going to yield back. |
|
Chairman WILLIAMS. [Presiding.] The gentleman yields back. |
|
I now recognize Mr. Alford from Missouri for 5 minutes. |
|
Mr. ALFORD. Thank you, Mr. Chairman. Thank you for holding |
|
this important hearing about how the Biden administration's |
|
WOTUS rule really impacts small businesses. That is why we are |
|
here today. |
|
Uncertainty is not a part of the equation for success for |
|
small businesses. That is exactly what this WOTUS rule has |
|
created for small business. This backwards rule would force |
|
family farmers to jump through hoops and likely retain legal |
|
counsel before developing or farming their land. I guess, the |
|
Biden administration forgot that most small business owners-- |
|
most farmers are small business owners. |
|
What also concerns me about this haphazard policy is that |
|
the EPA and Army Corps have said that the WOTUS rule would not |
|
have a significant impact on a substantial number of small |
|
entities, despite the Small Business Administration's Office of |
|
Advocacy sending a letter to the EPA and Army Corps last |
|
February stating the exact opposite. |
|
The decision was a calculated attempt by these groups to |
|
circumvent their obligations under the Regulatory Flexibility |
|
Act so that they did not have to conduct an initial regulatory |
|
flexibility analysis, which would prove just how dangerous this |
|
policy is for small businesses across the country. |
|
The Biden administration's failure to look at this rule and |
|
how it affects small businesses is just another shameful |
|
example that this administration will push its agenda at all |
|
costs, including at the cost of our small businesses and |
|
hardworking Americans. |
|
I want to begin my questions with you, Ms. English, because |
|
we have 95,000 farms in the State of Missouri. I, too, like our |
|
Vice Chairman, am from Missouri, and I am honored to represent |
|
those, not just here but on the Ag Committee as well. |
|
This has been a large focus that I have heard from farmers |
|
for the last 2 years in the 24 counties that I represent. One |
|
farmer in Cass County told me this incredulous story, but it is |
|
true, that he had to shut down part of his farm because they |
|
found the water standing in his cornfield. And until he could |
|
prove that it was not a navigable waterway, it turned out to be |
|
ruts from his combine and farming equipment that had filled in |
|
with water. Where is the commonsense in this ruling? |
|
I want to know from your standpoint, do you have any |
|
stories like that that you could share with us of the lack of |
|
commonsense of this, and what economic impact has it had on |
|
your family farm so far? |
|
Ms. ENGLISH. In regard to a story that is very similar to |
|
this, I practice a great deal with the Army Corps of Engineers, |
|
and I know the reviewers there. There is one who lives in a |
|
home that is not far from our family farm, and he called me to |
|
tell me that I needed to make sure that I filled in a bull |
|
hole. For those of you who don't know, bulls like to roll in |
|
dirt and get dirty. |
|
And we had a bull hole in front of a gate that was near the |
|
road, and he noticed that it was puddling during our rainy |
|
season in Florida, which is between May and September-October. |
|
And he warned me that I needed to backfill my bull hole before |
|
it became a jurisdictional wetland, and that if anything came |
|
up that that would be a concern. When an agency staff person |
|
uses my personal cell phone and does not send an email to tell |
|
me I need to backfill a bull hole, that should tell you that |
|
there is a concern in this space. |
|
The only reason I went to law school was having worked for |
|
a citrus growers co-op for 5 years--4 years, and watching what |
|
had happened with the regulatory creep in that timeframe. I |
|
became convinced that the only way my family could continue to |
|
farm, to continue to be the good stewards of the land and have |
|
the legacy of handing this property down to my children and |
|
grandchildren was for us to have a lawyer who understood it. It |
|
defined my entire professional life. |
|
Mr. ALFORD. I would submit to you that we don't need to be |
|
backfilling bull holes. We need to backfill the BS in WOTUS. |
|
And we need to come to the aid of farmers who are |
|
conservationists, who are doing everything they can to protect |
|
their farms. |
|
And, Mr. Baumann, I agree, you know, I try to listen to |
|
people I agree with. I really try to hear people I disagree |
|
with. I hear you, brother. I understand, we want clean water. I |
|
used to be an environmental reporter in south Florida. I know |
|
that pollution does cause bad effects on our seafood and our |
|
fishing industries, but we have got to find a way to work |
|
together in America that we can have great fisheries, great |
|
farms, and be a productive society that has commonsense. |
|
And with that, I yield. |
|
Chairman WILLIAMS. Thank you very much. |
|
Next, we recognize Mr. Ellzey from Texas for 5 minutes. |
|
Mr. ELLZEY. Thank you, Mr. Chairman. |
|
Thanks, everybody, for coming in today. |
|
One of the benefits of being very junior is to get to hear |
|
some of the arguments before you get to ask a question, and |
|
this is really a fascinating discussion. And as it comes down |
|
to it, as I see in my three witnesses here, not a single one of |
|
them wants dirty water. We all want clean water. We all depend |
|
on clean water. We all depend on it for our food. |
|
Mr. Baumann, I look forward to eating at your place |
|
sometime and sampling some of that fine seafood. |
|
And, Mr. Murphy, you build homes in my area. |
|
So I think what it comes down to at the end of the day, the |
|
reality is this is about power from agencies that don't answer |
|
to anybody else and the agenda of individual administrations. I |
|
didn't say what party they were from. Everybody has got their |
|
own agenda. |
|
Mr. Baumann, I do have a--this isn't a ``stump the chump,'' |
|
and I don't mean it as such. Can you define for me--since we |
|
have got some land folks here and then a water guy, can you |
|
define for me, in your opinion, what a navigable waterway is? |
|
Mr. BAUMANN. Let me answer that by something that has been |
|
left out by everybody who has brought up navigable water, and |
|
the phrasing is something to the effect of ``or substantially |
|
affects navigable waters.'' Water moves. It don't stay where it |
|
is at. It is either going to go down into the aquifer, or it is |
|
going to, you know, move with environmental conditions or with |
|
weather and so forth like that. |
|
So I don't have the exact definition of navigable water. I |
|
have read a few--like you say, it has changed over the years, |
|
and I do think it needs to be adopted at a certain level where |
|
everybody can count on it, you know. Mr. Murphy, Ms. English, |
|
myself, we need to know what the parameters are, but we are |
|
getting the short end of the stick in my business, I can tell |
|
you. |
|
And it is not just my business. I am speaking for that |
|
myriad, that plethora of people who I spoke about that rely on |
|
the fishing industry. Our whole town relies on the fishing |
|
industry and virtually every business in it. 99.9 percent of |
|
the businesses in this country are small businesses. And |
|
polluted water, regardless of how it happens, it has |
|
consequences for everybody except the people that cause the |
|
pollution. Nobody is getting accountability, you know, |
|
especially, with all due respect, the big mega farms, you know. |
|
Mr. ELLZEY. Okay. Let me ask you--in my time left, let me |
|
ask you another question. In your opinion, who should define |
|
navigable waterway? Is it the Congress or is it the EPA and the |
|
Corps? Real quick. Real quick. |
|
Mr. BAUMANN. Is it one of those three, who should define? |
|
Mr. ELLZEY. Who should, in your opinion? Real quick. 15 |
|
seconds. |
|
Mr. BAUMANN. You can't do it by the States because the |
|
States don't have the money or the purview. |
|
Mr. ELLZEY. All right. |
|
Mr. BAUMANN. That has been proven. |
|
Mr. ELLZEY. Okay. All right. |
|
Mr. Murphy, every administration has done its own thing. |
|
What would the homebuilders like to see in predictability, and |
|
who should define navigable waterway? Who should define these |
|
rules, Congress or an agency? |
|
Mr. MURPHY. We need certainty. Homebuilders and developers |
|
are adaptable, but we can't adapt to something we don't know. |
|
If you provide us certainty, we will deal with it somehow, some |
|
way. But as we go to contract to purchase land today, we cannot |
|
ascertain with any level of certainty whether we have WOTUS in |
|
or not, which forces us to either drop contracts, delay them, |
|
or incur the additional cost I testified to earlier. |
|
What is the solution? Give us certainty. Put it in the |
|
hands of an independent body. The Corps and the EPA, in my |
|
position, have more of a different take on it because they have |
|
been dealing with this for years. Put it with Congress, is my |
|
suggestion. Put it into an independent body, a committee of |
|
Congress, to study it and come up with some type of rule that |
|
will provide certainty beyond this single administration. That |
|
would be my recommendation, sir. |
|
Mr. ELLZEY. Okay. Ms. English? |
|
Ms. ENGLISH. I am always wary of a special study group. I |
|
believe that we need to honor the Constitution and the commerce |
|
clause. I believe that we need to honor the concept that was |
|
originally written into the Clean Water Act about the |
|
separation and the cooperative nature of our governmental |
|
associations between the federal government and States. |
|
I think that we need to have a bright line test. Just |
|
exactly what Mr. Murphy said, we need certainty and clarity. |
|
But by the same token, you are overlooking the power and |
|
responsibility of local governments and local States to protect |
|
their citizens, and they have the most direct knowledge. |
|
Mr. ELLZEY. Thank you all very much for your testimony. |
|
I yield back. Thank you, Mr. Chairman. |
|
Chairman WILLIAMS. Thank you very much. |
|
And now I recognize Ms. Van Duyne from Texas for 5 minutes. |
|
Ms. VAN DUYNE. Thank you so much, Mr. Chairman. And thank |
|
you for holding this important hearing on the persistent threat |
|
Waters of the U.S. poses to small businesses across the nation. |
|
I have heard from many small businesses just about how |
|
starting--they are just starting to now bounce back from |
|
government and post lockdowns and closures, and now this |
|
administration is reviving a threat of a vague and very |
|
confusing, as we have heard today, regulation that grants the |
|
federal government broad authority to regulate nearly every |
|
stream, pond, wetland. |
|
I mean, I think, Ms. English, you said it perfectly: |
|
Anything that comes on the land is basically--is how they are |
|
defining it. And even worse, the agency charged with enforcing |
|
this regulation doesn't even understand what they are |
|
executing, which in turn causes small businesses and farmers to |
|
be susceptible to fines and legal action even if they |
|
unknowingly violate these regulations. And honestly, the |
|
renewed approach to WOTUS seems designed not to protect the |
|
environment but really only to satisfy the administration's |
|
unending desire to regulate our job creators out of business. |
|
In the 117th Congress, I, along with all of my Republican |
|
Committee Members, sent a letter requesting that the Army Corps |
|
of Engineers and the EPA look at how this role will be |
|
determined and how it will be detrimental to small businesses. |
|
And while all of those questions remain unanswered, I look |
|
forward to holding the Biden administration accountable and |
|
working to ensure that this harmful rule does not go into |
|
effect. |
|
Mr. Murphy, you have provided some great testimony today. |
|
You had said--when asked by the Chairman and others what impact |
|
this is going to have, you said that basically you are going to |
|
have to abandon some projects. You have already had to abandon |
|
some projects. You said that as costs increase, and this does |
|
add additional cost, that the cost not only increases for the |
|
building for your company but that is having to be passed |
|
along---- |
|
Mr. MURPHY. Right. |
|
Ms. VAN DUYNE.--to your customers as well. Have you had to |
|
hire any additional staff? Have you had to hire consultants to |
|
help with this compliance? |
|
Mr. MURPHY. Not yet. We have not, because this is brand |
|
new. I was speaking to one of our consultants, a third party |
|
that we engage, just the other day. And I asked him, under the |
|
new 2023 WOTUS rule, how would you interpret this, especially |
|
regarding the significant nexus test, which now takes the |
|
combination of chemical, physical, and biological tests, along |
|
with the culmination of all upstream, i.e., catchment basin, |
|
similarly situated properties. How do you calculate that? This |
|
is a gentleman who used to be in the Corps office himself. He |
|
told me, I don't know. |
|
Ms. VAN DUYNE. Yeah, that is a problem. |
|
Mr. MURPHY. So if our investigative experts can't tell us, |
|
how can we understand what to do going forward on projects? We |
|
just basically shut projects down. We haven't yet, because |
|
everything we have under construction was basically permitted |
|
before. This only pertains to projects that haven't yet started |
|
construction. |
|
So we are dealing with shutdown on these. This is the first |
|
time in my career, not just related to WOTUS, but overall |
|
economic situation that we do not have any properties to |
|
acquire under contract right now. To sit here today and be |
|
faced with compounding the cost and delays associated with this |
|
may just force us to discontinue development for some period of |
|
time. How long, I don't know. |
|
Ms. VAN DUYNE. I mean, that is a grim look. If you had to |
|
estimate--I know you said, you know, this hasn't happened yet, |
|
but if you had to estimate, how much time do you think is going |
|
to be spent on working on compliance? |
|
Mr. MURPHY. Oh, Lordy. |
|
Ms. VAN DUYNE. Taking away from actually what you do do as |
|
part of your business model. |
|
Mr. MURPHY. Yes. We hired third-party consultants to advise |
|
us. We also engage third-party engineering, investigative firms |
|
to prepare the plans and items associated with it. Let me give |
|
you an example of a jurisdictional permit we have. Once we have |
|
that jurisdictional determination, that gives us the clarity |
|
and the certainty that we can proceed ahead with the |
|
development on that project without risk of intruding into |
|
WOTUS and incurring civil and criminal penalties. So we rely |
|
upon that. |
|
Under the new rule, they basically have noticed us that |
|
they will no longer consider existing JDs. That forces us to |
|
stop our engineering process, reconsider the impacts of the new |
|
WOTUS rule on that particular phase of development or the new |
|
development. That, in itself could result in months of delay, |
|
redoing the engineering plans, loss of land that we could |
|
otherwise develop because we can no longer wait for the |
|
timeframe for the agencies to determine jurisdictional |
|
determination, which could be, you know, 2, 3, 5 years. We |
|
don't know. So it is a significant impact to us. |
|
Ms. VAN DUYNE. Can you tell me--and this is just another-- |
|
another problem being dumped onto an industry that is already |
|
suffering from a whole list of issues. |
|
Mr. MURPHY. Yes. |
|
Ms. VAN DUYNE. Can you tell me the context now in which you |
|
guys are working, everything that is like building up. And |
|
really, we talk about the importance of having affordable |
|
housing. |
|
Mr. MURPHY. Yes. |
|
Ms. VAN DUYNE. Tell me what is happening in your district. |
|
Mr. MURPHY. In just a few seconds, you have got inflation; |
|
you have got interest rates; you have got electrification; you |
|
have got the shortages of transformers, which are going to be |
|
compounded by additional items out there; you have got |
|
shortages of houses already; you have got the overall issues |
|
with inflation and cost. There is no lack of demand. It is a |
|
lack of availability and cost. |
|
Ms. VAN DUYNE. I appreciate that very much and yield back. |
|
Chairman WILLIAMS. Thank you very much. |
|
I now recognize Mr. Bean from Florida for 5 minutes. |
|
Mr. BEAN. Mr. Chairman, a very good afternoon once again. |
|
And thank you so much. I am still learning. I am still |
|
learning how vastly it affects a small business. We already |
|
know in this committee how hard it is to run a small business |
|
already without government interference. But then when you |
|
throw government interference, uncertainty, a cloudy future, |
|
then it is really hard, especially if you own a family farm for |
|
over 100 years, as the English family has. |
|
Ms. English, what is it going to mean should this go |
|
forward? And you are an attorney, so you are used to |
|
understanding complex things. I understand this rule is hazy |
|
and complex, but what does it mean to your family having to |
|
deal with another rule such as this? |
|
Ms. ENGLISH. Well, you may be familiar with citrus |
|
greening, which has affected citrus groves across the State of |
|
Florida decimating the industry. We have pushed the groves on |
|
our property, and we are preparing to go back with varieties |
|
that are more tolerant of the disease. For those of you that |
|
don't know, citrus greening is sort of an autoimmune disease |
|
for orange trees. It is deadly. It has decimated the industry. |
|
Under the new rule, I don't know that the groves that we |
|
had planted for 140 years aren't actually jurisdictional to the |
|
Corps, that I am not going to be required to go get a permit |
|
for them, and mitigate if we are going to plant. We are a small |
|
family farm. None of us rely entirely on the farm income. |
|
Again, my husband teases me that I farm to support--or I |
|
practice law to support my farming habit. But the issue here is |
|
it is hundreds of thousands of dollars and it is years. We |
|
would be looking--if this is jurisdictional, and it appears to |
|
me from the rule that maybe it might be, we would be looking at |
|
hiring engineers--I would, of course, be the lawyer, but all of |
|
the other consultants that Mr. Murphy needs in order to |
|
successfully proceed through a permit or a jurisdictional |
|
determination so that we had that protection. Hundreds of |
|
thousands of dollars and years of delay, I don't know that we |
|
can withstand that. |
|
Mr. BEAN. Has your farm shrunk over the years, the 100 |
|
years? Has it grown or has it shrunk or stayed the same? |
|
Ms. ENGLISH. No. We last acquired a piece of property from |
|
a cousin, I believe, in the mid 1980s. But since that time, it |
|
has been relatively stable at about 880 acres. |
|
Mr. BEAN. I gotcha. But you have seen it--because we are |
|
both from the free State of Florida. You have seen the massive |
|
influx of people who have voted with their feet, they are |
|
coming to Florida. But you have seen farming threatened in |
|
Florida. Is that correct? Have you said you have seen farms |
|
close or sell out? |
|
Ms. ENGLISH. Absolutely. And any farm that is within an |
|
hour or an hour and a half of an urban area in Florida is under |
|
dire threat of development, simply because farmers are price |
|
takers not price makers. We compete in a global market. We |
|
produce commodities that we can't raise the price on. |
|
So when you reach a point where you can no longer be |
|
economically viable, the hard choices for legacy farm families |
|
have to be are you selling this to the government or are you |
|
selling it to Mr. Murphy's friends, because those are our |
|
options. Case in point, I have lost probably 10 percent of my |
|
clients over the last year, and how I lost them was I helped |
|
them sell their property. |
|
Mr. BEAN. Gotcha. Would you say--some say that growing a |
|
nation's--feeding a nation, feeding a nation and for a nation |
|
to be able to grow its own food is national security. Would you |
|
agree with that statement? |
|
Ms. ENGLISH. I would agree with that 100 percent. I just |
|
object to the fact that I have to have an entire herd of |
|
consultants in order to successfully do that. |
|
Mr. BEAN. How would a small business--how would a small |
|
farmer navigate the waters of running a farm with this new |
|
environment of uncertainty, of regulations from the current |
|
administration? |
|
Ms. ENGLISH. With great respect, Congressman, I don't think |
|
they can. |
|
Mr. BEAN. Mr. Chairman, I yield back. Thank you so much. |
|
Chairman WILLIAMS. Next, we have--I want to recognize Mr. |
|
Stauber from Minnesota for 5 minutes. |
|
Mr. STAUBER. Thank you very much, Mr. Chair. |
|
And to the witnesses, thanks for your testimony. |
|
We have a big fight on our hands. As a former small |
|
business owner of 31 years, this WOTUS rule, our small |
|
businesses, our farmers are against it, and this administration |
|
just pushes it and tries to push it upon the American people. |
|
Mr. Murphy, what is the cost of--what does it cost you to |
|
hire these consultants to figure out this WOTUS rule and what |
|
goes with it? What is the cost for your company? |
|
Mr. MURPHY. The initial cost for a study depending upon the |
|
size and complexity of the individual project will usually |
|
range from $10,000, $15,000, maybe $20,000. That is the initial |
|
study. Then if you have to go through a formal submission to |
|
the Corps for a jurisdictional determination, that cost is |
|
being priced right now to us between $50,000 to $75,000. And |
|
this is under the existing rule, not the new rule. |
|
We don't have the ability to project what the increase in |
|
cost may be, because my consultants are telling me they don't |
|
know how to enforce it yet or do the inspection. And that is |
|
just the cost to do the determination and jurisdictional. If |
|
you go through the individual permitting, you have got |
|
significant additional costs beyond that. |
|
Mr. STAUBER. So in 30 seconds, you just said that these |
|
rules that the government put forward have cost you a minimum |
|
of $100,000. In just 30 seconds, that is the minimum. So my |
|
question to you is, let's say it is $300,000, and I don't think |
|
that is out of the question once push comes to shove with this |
|
ridiculous ruling, who do you pass that onto? |
|
Mr. MURPHY. Well, if we can pass it on, it is to the |
|
ultimate home buyer through purchases of the homes from the |
|
individual homebuilder. If we can't pass it on---- |
|
Mr. STAUBER. So if you pass it on to the home---- |
|
Mr. MURPHY. If we could---- |
|
Mr. STAUBER. If you could. |
|
Mr. MURPHY. Subject to market acceptability. |
|
Mr. STAUBER. Right. Okay. |
|
Mr. MURPHY. That is who it would go to. But in many cases |
|
we can't. So we are forced then to pretty much just mothball |
|
this particular development because we can't recover the cost |
|
through increases in housing prices, or we have to resize the |
|
project, which basically means shrinking the developable land |
|
to stay way away from what may be considered significant nexus |
|
under the WOTUS test to basically proceed ahead and not run the |
|
civil and liability risk associated with it. |
|
So that would allow us to proceed ahead without incurring |
|
significant costs, but what it does is have the same effect. It |
|
increases the cost of the remaining land and lots and therefore |
|
has a direct increase on the remaining homes to be built. |
|
Mr. STAUBER. If it wasn't so devastating, I would find it |
|
laughable that the EPA and the Army Corps claim that the WOTUS |
|
rule won't significantly impact our American small businesses. |
|
That is just simply not true. It is just simply not true. I |
|
think it is disingenuous for them to tell the American people. |
|
I know the farmers, manufacturers, miners, and homebuilders in |
|
northern Minnesota would have had a different story to tell if |
|
they were asked. |
|
Ms. English, I have heard from farmers in my great State of |
|
Minnesota that are struggling to comply with the strict water |
|
regulations already in place in our State. Can you tell me more |
|
about the jobs and projects that this rule will make harder for |
|
farmers to get done? |
|
Ms. ENGLISH. And I actually have talked with some of my |
|
cousins who farm in and around Hawley, Minnesota. |
|
Mr. STAUBER. Yeah. |
|
Ms. ENGLISH. So we have compared notes and cried in each |
|
other's beer over some of these issues. |
|
Mr. STAUBER. Yes. |
|
Ms. ENGLISH. But here is what doesn't happen, you can't-- |
|
you begin not to maintain portions of the systems that need to |
|
be maintained because you are afraid of incurring jurisdiction. |
|
Catchment basins that you use to capture soils or to treat for |
|
water quality don't happen. The improvement projects, like the |
|
one I referred to in my testimony, where you are trying to do |
|
something that is going to improve the water quality, |
|
ultimately being discharged from the property, aren't being |
|
addressed and aren't being done. |
|
It is one thing to make a rule to protect water quality; it |
|
is another thing if that rule cuts both ways and actually |
|
impairs water quality because you could no longer repair the |
|
infrastructure or maintain it that treats water quality. |
|
Mr. STAUBER. I will just tell you, in my last 30 seconds, |
|
this rule is devastating. I will tell you that the Obama |
|
administration, when Joe Biden was Vice President, they allowed |
|
a water permit in a mine in Minnesota. The water came out more |
|
pure. They had to add sediments to it. And this administration |
|
just remanded that same water permit to stop mining. You can't |
|
make this up. You just can't make it up. |
|
And I think this WOTUS rule is going to be devastating for |
|
small businesses and farmers. And those--the bureaucrats that |
|
are getting paid to do this, like your EPA neighbor who calls |
|
you and says the bull hole needs to be filled or changed, or my |
|
colleague over here who says that the tractor tires--the water |
|
and the tractor tire and the groove and the dirt needs to be-- |
|
something needs to be dealt with, can you imagine? |
|
Ms. ENGLISH. Uh-huh. |
|
Mr. STAUBER. I mean, can you imagine this? |
|
Ms. ENGLISH. Yes. |
|
Mr. STAUBER. And by the way, $320 billion--that is with a |
|
``B''--$320 billion of additional regulations this |
|
administration has put on our small businesses in just 2 years. |
|
I yield back. |
|
Chairman WILLIAMS. Thank you. |
|
Now, I recognize Mr. Crane from Arizona for 5 minutes. |
|
Mr. CRANE. Thank you, Mr. Chairman. I appreciate it. |
|
Thank you to the witnesses for showing up today. I |
|
appreciate it. Sorry I was tardy. We were in a Homeland |
|
Security meeting. It is one of the tough things about this town |
|
is you just get thrown around all over the place. |
|
But real quick, I wanted to start with you, Mr. Murphy, |
|
have you ever voted for an official at the EPA in your life |
|
that you can remember? |
|
Mr. MURPHY. Voted for an official at the EPA, no, sir. |
|
Mr. CRANE. Okay. Let's see, Ms. English, have you ever |
|
voted for an official at the EPA? |
|
Ms. ENGLISH. No, sir. |
|
Mr. CRANE. Mr. Baumann, have you ever voted for an official |
|
at the EPA? |
|
Ms. ENGLISH. No, sir. |
|
Mr. CRANE. No, sir. All three of them, no, no, no. Does |
|
that bother you guys? Follow-on question to all three of you: |
|
Does it bother you that unelected bureaucrats are making |
|
rulings and judgments that are affecting your business and |
|
lifestyle? We will start with you, Mr. Murphy. |
|
Mr. MURPHY. I would prefer to have a say in that, yes. But |
|
I also look to my elected Congressman to help enforce the Clean |
|
Water Act and provide the regulatory guidance that provides |
|
clarity to what we do. |
|
Mr. CRANE. Yes, sir. And you just made a key word there, |
|
``elected.'' My point was, right now, you guys, your lifestyle, |
|
your businesses, and many others across this country are being |
|
affected because of unelected bureaucrats, and therefore you |
|
have no recourse, right? You can't go--take me, for example. I |
|
am a freshman here in Congress. If I screw up really bad, and |
|
some of the folks in my district would probably, you know, say |
|
that I am, but if I screwed up really bad, they have a |
|
recourse. They can get rid of me in 2 years, right? But you |
|
guys can't go and fire somebody at the EPA, can you? |
|
Mr. MURPHY. That is correct. We have recourse, not under |
|
what is called a preliminary jurisdiction because that is non- |
|
contestable, but there is a jurisdictional determination out |
|
that we may have recourse---- |
|
Mr. CRANE. Okay. |
|
Mr. MURPHY.--so contested. But directly to answer your |
|
question, no, we don't have any authority to approve, vote, or |
|
try to oust Members of the EPA or the Corps. |
|
Mr. CRANE. Thank you. |
|
Ms. Bau--or, excuse me, Ms. English, does that bother you? |
|
Ms. ENGLISH. It is a terrible concern when it appears that |
|
the agency perspective appears to deviate substantially from |
|
the law that has been handed down by Congress and signed by a |
|
President. |
|
Mr. CRANE. Thank you. |
|
And the last thing I have to say is just a statement real |
|
quick, because I know we are never--we are all never going to |
|
agree on, you know, everything that goes on here. But I am just |
|
going to tell you guys, my vote will be cast in a manner that |
|
acknowledges your private property and keeps unelected |
|
bureaucrats and government officials out of your lives as much |
|
as possible. And I want to see local officials making these |
|
rules and regulations, because I think that they have the best |
|
eyes on and the best capability of making sound judgments that |
|
are the best for your lives. Okay? |
|
Thank you guys again for coming. I yield back. |
|
Chairman WILLIAMS. Thank you very much. |
|
And I would like to thank our witnesses for their testimony |
|
today and for appearing before us. |
|
Without objection, Members have 5 legislative days to |
|
submit additional materials and written questions for the |
|
witnesses to the Chair, which will be forwarded to the |
|
witnesses. I would ask the witnesses to please respond promptly |
|
if that happens. |
|
There being no further business, without objection, the |
|
committee is adjourned. |
|
[Whereupon, at 3:43 p.m., the committee was adjourned.] |
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