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DRINKING WATERConditionsThe nation's 54,000 drinking water systems face staggering infrastructure funding needs over the next 20 years. Although America spends billions on infrastructure each year, drinking water faces an annual shortfall of at least $11 billion to replace aging facilities that are near the end of their useful life and to comply with existing and future federal water regulations. The shortfall does not account for any growth in the demand for drinking water over the next 20 years.
In a study released in February 2001, the Environmental Protection Agency (EPA) reported that the nation should invest $151 billion over 20 years in new drinking-water infrastructure. A year and a half later, the investment needs increased to an estimated $274 billion over the next 20 years. Despite the great need for replacement pipes and related infrastructure, however, health-based violations of federal drinking-water standards are declining steadily according to data from the EPA. Most Americans received drinking water from public water systems that recorded no significant violations in 2000. Nevertheless, without a significantly enhanced federal role in providing assistance to drinking water infrastructure, critical investments will not occur. Possible solutions include grants, trust funds, loans, and incentives for private investment. The question is not whether the federal government should take more responsibility for drinking water improvements, but how. Policy OptionsNew solutions are needed to what amounts to a nearly trillion dollars uncritical drinking water and wastewater investments over the next two decades. Not meeting the investment needs of the next 20 years risks reversing the public health, environmental, and economic gains of the last three decades. The case for federal investment is compelling. Needs are large and unprecedented; in many locations, local sources cannot be expected to meet this challenge alone; and because waters are shared across local and state boundaries, the benefits of federal help will accrue to the entire nation. Clean and safe water is no less a national priority than are national defense, an adequate system of interstate highways, and a safe and efficient aviation system. These latter infrastructure programs enjoy sustainable, long-term federal grant programs; under current policy, water and wastewater infrastructure do not. Equally compelling is the case for flexibility in the forms of federal investment including grants, loans, and other forms of assistance. Grants will be needed for many communities that simply cannot afford to meet public health, environmental, and/or service-level requirements. Loans and credit enhancements may be sufficient for other types of communities with greater economies of scale, wealthier populations, and/or fewer assets per capita to replace. The American Society of Civil Engineers (ASCE) recommends that funding for water infrastructure system improvements and associated operations be provided by a comprehensive program. Specific Recommendations Supported by ASCE:
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