NLC Calls for Renewed Partnership to Reinvest in Our Water Infrastructure
This week, NLC joined local governments and water utility and industry leaders to call attention to the state of our nation's aging infrastructure, the staggering need for water infrastructure investments and the impact that such investment would have on local, regional and national economies.
"Cities depend on reliable water infrastructure. It strengthens neighborhoods and puts people to work," said San Diego Mayor Kevin Faulconer at a press briefing.
An op-ed in POLITICO by Mayors Ed Lee of San Francisco and Annise Parker of Houston addressed the urgency of improving the aging infrastructure below our cities. "In 2013 alone, Houston lost more than 22 billion gallons of water - 15 percent of the city's total water supply - due to leaking pipes. That same year, there were 100 water main breaks in San Francisco."
A report released this week by the Water Research Foundation and the Water Environment Research Foundation, National Economic and Labor Impacts of the Water Utility Sector, is the first in the industry that looks at the job creation, labor market and economic benefits of 30 of the largest water and wastewater agencies based on actual capital programs and operating budgets.
The report found that these 30 utilities contribute $52 billion in economic output annually and support more than 289,000 permanent jobs annually. Over the next decade, these the utilities will put $233 billion into the economy - $145 billion in operating spending and $88 billion in capital spending.
While these investments are substantial, they "represent only a modest proportion of the nation's unfunded water infrastructure needs," the report states. "The Environmental Protection Agency has estimated the nation's capital need over the next 20 years to be approximately $720 billion in total: $20 billion annually for drinking water infrastructure and an additional $16 billion per year for wastewater infrastructure."
A congressional briefing, moderated by NLC Executive Director Clarence Anthony, showcased the report's findings and the need for and impacts of investments in water infrastructure. Although the EPA estimates are substantial, Anthony said, "other estimates put the cost at more than $4 trillion to maintain and build a 21st Century water system. Clearly, the time is now to renew federal-local partnerships and reinvest in our water infrastructure."
The briefing panel included representatives from utilities highlighted in the report, as well as a private sector representative. Julius Ciaccia, Executive Director of the Northeast Ohio Regional Sewer District, which serves the Cleveland area, said that the agency is spending $1 billion on water infrastructure between 2012 and 2016, with most of the projects and improvements concentrated in the inner city, addressing environmental justice issues. About 80 percent of that spending has a direct economic impact on the region.
Emily Lloyd, Commissioner of the New York City Department of Environmental Protection, said the city learn the risks associated with neglecting their water supply and water infrastructure 400 years ago with the Dutch settlers of New Amsterdam. With infrastructure dating to the mid-1800s, the city recognizes the need to improve their old infrastructure, as well as the need to build new.
Local governments are responsible for the vast majority of investment in water and sewer infrastructure. In 2011 alone local governments invested over $115 billion, according to the U.S. Census Bureau.
As with many local governments and water utilities across the country, Ciaccia and Lloyd discussed how water rates have risen and will continue to rise to help address the investment need, but that affordability especially for low-income populations is an issue both communities are grappling with.
Aldie Warnock, Senior Vice President of External Affairs for American Water noted that "our water infrastructure has to be safe and reliable, but it also has to be affordable."
Alexander Quinn, Director of Sustainable Economics for AECOM, presented the findings of the report, and noted that the jobs created by water infrastructure spending offers a higher return on investment in terms of jobs created than military spending or retail spending.
As with most sectors of the economy, the water utility industry is facing an aging workforce currently eligible for retirement or eligible in the coming decade. Ciaccia and Lloyd both saw this as an opportunity to develop a diverse next generation of workers through training and education, particularly in the areas of technological innovation.
At a press conference earlier in the day, Congressman Tim Bishop, Ranking Member of the House Transportation and Infrastructure, Water Resources and Environment Subcommittee, who also spoke at the briefing, said, "investing in water infrastructure is a win for everyone - the environment, the economy, and public health."
The organizing participants of the events, including NLC, National Association of Counties, U.S. Conference of Mayors, American Society of Civil Engineers, Building America's Future, National Urban League and the Value of Water Coalition delivered a message to President Obama and Members of Congress to:
- Expand access to low-cost loan and grant programs for all water providers to accelerate water infrastructure projects across America;
- Leverage private financing and partnership opportunities; and
- Support workforce development programs that prepare the next generation of workers who will be stewards of our nation's water systems.