FWEA Focus—Ronald R. Cavalieri

FWEA FOCUS Investing in U.S. Water Infrastructure

Ronald R. Cavalieri, P.E., BCEE

President, FWEA

Water Infrastructure is Fundamental to Our Nation’s Economic Health and Competitiveness

America’s clean water infrastructure is massive. By keeping the nation’s water infrastructure in a state of good repair, we strengthen our economy and invest in the future. Local, state, and federal action to increase investment in our water infrastructure today will lead to a resilient, efficient, and reliable water future and protect public health for generations to come.

In my July column it was noted that America’s water infrastructure is failing. The American Society of Civil Engineers (ASCE) created an Infrastructure Report Card to assign grades for infrastructure in the United States based on condition, safety, capacity, and other factors. The most-recent report card assigned drinking water and wastewater infrastructure a C- and D+, respectively. The recently enacted Infrastructure Investment and Jobs Act (Act) will provide significant funding for the nation’s critical water infrastructure.

The U.S. Infrastructure and Investment Jobs Act

The Act was passed by Congress and signed into law on Nov. 15, 2021. It will provide significant public investment in U.S. transportation networks, broadband, and public works projects. The Act allocates an estimated $1.2 trillion in total funding over 10 years, including $550 billion in new spending over the next five years. The new spending will be split between improving the transportation network ($284 billion) and the nation’s core infrastructure ($263 billion). Funding for core infrastructure includes the power grid, broadband, water, environmental resiliency, and environmental remediation.

The Act includes funding for a range of issues and seeks to embed sustainability and equity in new infrastructure investments. The passage of the legislation is a once-in-a-generation opportunity to improve our nation’s aging infrastructure.

Funding for Drinking Water and Wastewater Infrastructure

The Act includes the Senate Drinking Water and Wastewater Infrastructure Bill (S. 914) passed by the Senate on April 29, 2021. The bill reauthorizes existing programs and creates new programs to support drinking water and wastewater infrastructure projects. Most of this funding is allocated to the existing Drinking Water State Revolving Fund (SRF) and the Clean Water State Revolving Fund SRF, both administered by the U.S. Environmental Protection Agency (EPA).

The bill provides $55 billion in new spending, including: S $43.4 billion in SRF S $15 billion for lead service line replacement through the SRF S $10 billion to address per- and polyfluoroalkyl substances (PFAS) contamination S $3.5 billion for the Indian Health Service

Sanitation Facilities Construction Program

Here is a summary of the funding authorized under this legislation.

Drinking Water State Revolving Funds

These funds authorize funding through Fiscal Year (FY) 2026 for the SRF, which provides capitalization grants to states for loans supporting water infrastructure projects. It authorizes $2.4 billion for FY 2022, $2.75 billion for FY 2023, $3 billion for FY 2024, and $3.25 billion for FYs 2025 and 2026.

Clean Water State Revolving Funds

These funds are authorized through FY 2026 for the Clean Water SRF, which provides capitalization grants to states for loans supporting water quality improvement projects. They authorize $2.4 billion for FY 2022, $2.75 billion

for FY 2023, $3 billion for FY 2024, and $3.25 billion for each of FYs 2025 and 2026.

Drinking Water Assistance for Small and Disadvantaged Communities

This authorizes funding for the Assistance for Small and Disadvantaged Communities Drinking Water Grant Program, which helps public water systems in underserved and disadvantaged communities meet Safe Drinking Water Act requirements, in the amounts of $70 million for FY 2022, $80 million for FY 2023, $100 million for FY 2024, $120 million for FY 2025, and $140 million for FY 2026.

Addressing Lead Contamination in School Drinking Water Systems

This authorizes funding to address lead in school drinking water systems in the amounts of $30 million for FY 2022, $35 million for FY 2023, $40 million for FY 2024, $45 million for FY 2025, and $50 million for FY 2026.

Resiliency and Sustainability Grants

These grants authorize $50 million annually for the Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Grant Program and create a corresponding $25 million per year for the Clean Water Infrastructure Resiliency and Sustainability Program for small communities. Both of these programs would provide financing for resiliency projects, including conservation and supply augmentation projects.

Addressing Sanitary Sewer Overflows and Stormwater Reuse

This authorizes funding for the sanitary sewer overflow and stormwater reuse municipal grants at $280 million annually for FYs 2022 through 2026, with requirements to allocate at least 25 percent of such funds toward systems serving rural or otherwise disadvantaged communities.

Reauthorization and/or Creation of Additional Grant and Loan Programs

These programs authorize and fund several other specific grant and loan programs, including: S $50 million annually through FY 2026 for reauthorization of the Water Infrastructure

Finance and Innovation Act (WIFIA) loan program, which provides low-cost loans for a variety of water infrastructure projects. S $35 million annually through FY 2026 for technical assistance and grants for emergencies affecting public water systems, with an additional $15 million annually for technical assistance to small public water systems. S $20 million annually through FY 2026 to create the Wastewater Efficiency Grant Pilot

Program for projects by publicly owned treatments works (POTWs) that seek to

improve waste-to-energy systems, with individual grants capped at $4 million. S $25 million annually through FY 2026 to reauthorize an existing pilot program for alternative water source projects, including potable water reuse, wastewater and stormwater capture and treatment, and groundwater recharge projects. S Research into water infrastructure technologies and community needs, which requires EPA to study safe drinking water technologies and community needs in the year following the bill enactment. It provides $75 million annually through FY 2026 for research, investigations, training, and informational grants authorized under Section 104 of the Clean Water Act. S The Water Data Sharing Pilot Program requires EPA to facilitate sharing of information among stakeholders by creating a water-data-sharing pilot program and directs

EPA to create a Water Reuse Interagency

Working Group. It authorizes appropriations for the grant program for FYs 2022 through 2026.

A Generational Opportunity and a Challenge References

S Bipartisan Infrastructure Investment and Jobs

Act Summary: A Road to Stronger Economic

Growth. Maria Cantwell, U.S. Senator for the

State of Washington. S The U.S. Infrastructure Investment and

Jobs Act: Breaking it Down. McKinsey and

Company, November 2021. S U.S. Water Infrastructure: Making Funding

Count. McKinsey and Company, November 2021. S

The influx of capital for water infrastructure projects will put increased demand on the utility infrastructure market. Utility managers, operators, consultants, contractors, and equipment and material suppliers will need to be prepared to meet this challenge. Effective capital planning and execution will be needed to make the most of the available dollars, especially considering the current inflationary and supply chain issues.

The market will drive the development of new techniques to improve efficiency and effectiveness of project delivery. Equipment and material suppliers must prepare their supply chains for the increased demand. New technology companies will have an opportunity to bring innovative solutions for a more resilient and sustainable future. The industry needs to adopt operational best practices in maintenance and prioritize capital to the highest-risk and mostcritically-needed assets.

As water professionals we look forward to this challenge to restore our nation’s water infrastructure.