Oct 25, 2018   SOURCE: BusinessWire

NAWC Applauds Signing of Water Infrastructure Legislation That Addresses Need for Consolidation

The National Association of Water Companies (NAWC) applauds the signing of the “America’s Water Infrastructure Act” into law. In addition to reauthorizing the “Water Resources Development Act,” the Act contains several provisions to improve drinking water systems by encouraging partnerships and consolidation within the highly fragmented U.S. water sector to address chronic noncompliance.

“The U.S. water sector is enormously fragmented with over 53,000 community drinking water systems. To put that number in perspective, nationwide there are only 3,300 energy utilities. As a result, many smaller and municipally-owned water systems find themselves struggling to meet water quality standards, which puts community health at risk,” said NAWC president and CEO Robert Powelson. “Increasingly, some systems lack expertise and financial resources to operate and invest in their systems. Consolidation, partnerships and a more integrated approach can help achieve economies of scale and facilitate capital attraction, as well as technological and financial viability. The ‘America’s Water Infrastructure Act’ is a step in the right direction.”

NAWC is pleased that the following provisions were included:

  • A provision to permit owners or operators of public water systems to enter into a contractual agreement to correct water quality and environmental violations. Other options to address violations are consolidation and transfer of ownership.
  • A provision that calls on owners and operators of public water systems to assess their options for consolidation, transfer of ownership and other activities to bring their system into compliance 1) if their systems are likely to adversely impact human health, 2) if the system is unwilling to take actions that would put the system back into compliance, and 3) if consolidation and transfer of ownership is feasible and could result in compliance with national drinking water regulations.
  • New requirements for the Environmental Protection Agency (EPA), in coordination with the states, to improve the accuracy and availability of monitoring data; and for states to encourage greater use of asset management plans.

Passage of these provisions is significant because it demonstrates that Congress recognizes that many distressed systems exist. NAWC looks forward to working with Congress and EPA to address the issue of non-compliant water systems in 2019.

About the NAWC

The National Association of Water Companies (NAWC) represents regulated water and wastewater companies, as well as ones engaging in partnerships with municipal utilities. NAWC members provide 73 million Americans with safe and reliable water service every day and have an exceptional record of compliance with federal and state health and environmental regulations. Ensuring this high standard of quality requires extraordinary amounts of capital investment. NAWC estimates that its six largest members alone are collectively investing $2.7 billion each year in their water and wastewater systems.