Job Creation

Water Infrastructure Projects Under Way

Work is well under way on a number of water infrastruture projects across the country using funds provided under the American Recovery and Reinvestment Act, reports AWWA Streamlines.

This act, also known as the Stimulus Bill which President Obama signed into law on February 17, contained $2 billion in new funds for the Drinking Water State Revolving Fund (SRF) program and $4 billion for the wastewater SRF program. The US Environmental Protection Agency (USEPA) administers the SRF programs and publishes weekly reports on the funds it distributes.

The agency also provides other related information, such as funding allocations for states, guidance on "Buy American" provisions of the act, "Buy American" waivers, guidance on "Green" infrastructure and information on Native American and Alaska Native projects.

During congressional discussions leading up to passage of the Recovery Act, AWWA had identified more than $10 billion in "shovel-ready" drinking water projects that the stimulus funds could benefit. The expenditure of $10 billion on repairs and improvements to water mains, leaking pipes, water treatment plants, pumping stations, storage reservoirs, elevated tanks, security safeguards, and similar projects would create work for more than 400,000 Americans throughout the economy, including almost 90,000 direct construction jobs.

In addition to directly putting people to work, investments in drinking water infrastructure highly stimulate other economic activity. Water projects depend on American pipe, fittings, cement, aggregates, and other products. The U.S. Conference of Mayors estimates that every job created in rebuilding our water systems creates nearly 3.7 jobs elsewhere, and every dollar invested in water infrastructure adds $6.35 to the national economy. The investments in water infrastructure also create lasting benefits by strengthening public health, safety, and our quality of life.

AWWA stands ready to provide further information and assistance to policymakers as the country addresses water infrastructure finance. Beyond the stimulus, a study by AWWA has produced a model for a federal water infrastructure bank that would provide low-cost financing to water utilities and have minimal impact on the federal budget.

Contact Deputy Executive Director Tom Curtis or Legislative Director Tommy Holmes for additional information at (202) 628-8303.

Links to background and supporting documents:

AWWA, the Association of California Water Agencies, Association of Metropolitan Water Agencies, National Assoication of Water Companies and the National Water Resources Association sent a joint letter on February 4 to Sen. Barbara Boxer, D-Calif., and chair of the Senate Environment and Public Works Committee, and Sen. James Inhofe, R-Okla., ranking member of the committee, endorsing an amendment they planned to introduce to H.R. 1, the economic stimulus bill. The amendment would move stimulus funds unobligated after a year into infrastructure projects.
AWWA sent a document to Senate staff on February 2 describing how drinking water utilities could make use of economic stimulus funds in the time frames being proposed by Congress.
AWWA, the Association of Metropolitan Water Agencies and the National Association of Water Companies sent a joint letter to Senate leadership on January 26, seeking the $10 billion for drinking water infrastructure in stimulus legislation. The letter again pointed out that drinking water and wastewater infrastructure needs are equal.
AWWA's Government Affairs Office sent a legislative alert to its members on January 22, asking them to contact their senators in regard to S. 1, the economic stimulus bill. A draft letter template was provided. This parallels an alert sent regarding the House stimulus bill, H.R. 1.
AWWA sent a letter to all members of Congress on December 11, 2008, urging them to allocate at least $10 billion in economic stimulus funding toward drinking water infrastructure.
On December 16, 2008, AWWA, the Association of Metropolitan Water Agencies, National Association of Water Companies, and the National Rural Water Association sent joint letters to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid saying that drinking water utilities were ready to invest $10 billion in ready-to-go drinking water infrastructure projects.
U.S. Rep. Gene Green of Texas, chair of the House Subcommittee on Environment and Hazardous Materials sent a letter - with 35 other members of Congress - seeking $10 billion in drinking water infrastructure funding in the upcoming economic stimulus bill to U.S. Rep. David Obey of Wisconsin, chair of the House Committee on Appropriations, and U.S. Rep. Jerry Lewis of California, ranking member of that committee.
AWWA, the Association of Metropolitan Water Agencies, National Association of Water Companies, and the National Rural Water Association jointly assembled a booklet to help guide the administration of President-Elect Obama in drinking water policy. Issues included economic stimulus, long-term infrastructure financing, drinking water standards, source water protection, climate change research and adaptation, and security.
AWWA describes its survey and analysis determing that there are at least $10 billion in drinking water infrastructure projects that could begin within 120 days of receiving funding.
In 2001, AWWA published "Dawn of the Replacement Era: Reinvesting in Drinking Water Infrastructure," which documented that expenditures totaling $250 billion will be needed in the next 30 years for replacement of worn-out drinking water pipes and associated structures.
See more AWWA resources at our Work for Water website.