Tackling the tenacious issue of infrastructure renewal and replacement

Infrastructure renewal and replacement is an ongoing challenge for a large number of North American water and wastewater systems. It has ranked as the top issue impacting the water community for the past decade in annual surveys conducted by the American Water Works Association (AWWA). 

The latest State of the Water Industry (SOTWI) report notes that much of this water infrastructure was built and financed by previous generations and is approaching or exceeding its useful life. The 2022 report, based on results of an AWWA survey conducted between October and December of last year, breaks down the 10 main difficulties associated with renewal and replacement (R&R) as: 

1. Infrastructure reliability
2. Financing renewal and replacements
3. Access to funding
4. Maintaining levels of service
5. Justifying R&R programs to oversight bodies
6. Justifying R&R programs to ratepayers
7. Prioritizing R&R needs
8. Coordinating with other R&R activities
9. Regulatory constraints
10. Customer expectations

On the brighter side, AWWA and other water partners have been successful in advocating for expanded infrastructure funding and access to capital, most recently with the November 2021 passage of the U.S. Infrastructure Investment & Jobs Act (IIJA). This federal law greatly increases federal funding for water infrastructure and related programs over the next five years, reauthorizes several existing drinking water programs, and commits $15 billion for lead service line replacement. 

The 2022 SOTWI report indicates that a majority of utility survey respondents – 56.5% — said their access to capital is better than or as good as five years ago.

Other successes contributing to improved funding and access to capital for water systems include the U.S. Water Infrastructure Finance and Innovation Act (WIFIA) passed in 2014, a 2018 farm bill that expanded funding for drinking water protection, and the American Rescue Plan Act of 2021 that helps utilities secure financial support for critical capital needs related to pandemic relief assistance. 

AWWA is currently asking Congress to provide the actual appropriations for the water programs authorized but not yet funded in the IIJA. The Association also is seeking continued funding for long-standing programs such as the State Revolving Fund (SRFs) loan programs. The SRFs received substantial funding in the infrastructure bill, but Congress is now working on fiscal year 2024 spending bills.

Robert Cheng, assistant general manager with Coachella Valley Water District in Southern California, said, “CVWD has benefited from various federal funds (Safe Water/Clean Water State Revolving funds) to improve water safety and supply reliability.”

“More recently,” he added, “CVWD was awarded $59 million in WIFIA funds for two storm water projects to improve system safety and reduce insurance costs for our customers.”