SPI President & CEO Mary Scott Nabers
Here’s a frightening statistic! More than $600 billion will be required over the next 20 years to maintain and improve water infrastructure for people living in the United States. That’s $30 billion a year! The U.S. Environmental Protection Agency (EPA) says we’ll need every bit that much – and probably more.
Federal, state and local government officials are quick to say they don’t have that kind of funding available. In spite of a lack of public funding, something has to be done. America is at a critical juncture – water resources are essential and these types of needs cannot be ignored.
This realization is not new and it’s hard to understand why public officials are moving so slowly. Critical water needs and the staggering costs associated with addressing them will only increase as time passes. The fix will require the launching of hundreds of public projects and none of them can be completed quickly.
The federal government, in an attempt to jump-start public initiatives, has launched the Water Infrastructure and Resiliency Finance Center which is located at the EPA. The Center is part of the White House Build America Investment Initiative and its purpose is to help communities improve water and wastewater systems. It will provide assistance through a number of programs related to water resources, energy efficiency, water reuse, green infrastructure, etc. Public-private partnerships, or P3s, will be one of the alternative funding options promoted by the Center. That’s understandable because the funding has to come from somewhere and with inadequate public funding, the private sector will be required to participate.
Projects eligible for assistance will include various types of local and regional initiatives. Water treatment plants and pipelines will qualify, but also projects related to drains, municipal storm sewer systems, public water systems, private wells and decentralized, onsite and septic systems.
California ranks first out of all states when it comes to costs estimated for water infrastructure needs. The state’s estimated total costs are $74.8 billion. Ranking second on the list is New York, where total costs are projected to be $51.9 billion. Texas ranks third and the state will need at least $45.3 billion, including $33.8 billion for drinking water projects and $11.5 billion for clean water projects.
An EPA report which lists individual state needs actually totals $674.7 billion. That is staggering data that cries out for immediate attention.
The Center has been designed to serve as a link between the public and private sectors. Some of its mandates include education through workshops, the development of case studies to incentivize public leaders and assistance with various types of funding options. Additionally, the center will educate public officials about the more than $3 billion in annual federal water investment funding that is available through grants.
Small and rural communities often feel shortchanged. The elected officials don’t have resources to chase grant funding and private-sector investors are not as interested in their needs. The Center will help these communities through financial training and technical assistance. Let’s hope that efforts like these will result in projects to resolve the nation’s very serious needs. The clock is ticking for America!