Engineering Inc. - July/August 2016 - (Page 4)

MarketWatch BY G E R RY D O N O H U E Flint Crisis Increasing Water Infrastructure Awareness, Not Opportunity T GEOFF ROBINS/GETTY IMAGES he lead-poisoning tragedy in Flint, Michigan, has catapulted the wretched condition of the nation's water infrastructure into the public consciousness. Federal, state and local government leaders nationwide have called for increased funding to address deteriorating water infrastructure. But will that funding materialize? And if so, how close will it come to the estimated $385 billion needed to upgrade the nation's drinking water systems? Lauren Evans, president of Pinyon Environmental, Inc., is not optimistic. "I would like to hope so, but we've seen it before where there's a big event and everyone talks about it, but then it disappears from the radar screen," she says. "News cycles tend to be 4 ENGINEERING INC. shorter than the time needed to have a conversation." Getting the Lead Out Fitch Ratings, a global credit rating and research agency, has estimated the national fallout from the Flint crisis could exceed $275 billion. "The EPA currently regulates drinking water exposure to lead based on its Lead and Copper Rule," says the Fitch report. "The EPA is considering strengthening the rule sometime later this year or next. Fitch expects any proposed rule revisions will likely move the industry toward removing all lead service lines." Fitch also notes that the current EPA estimate of $385 billion for necessary upgrades in water infrastructure through 2030 includes funding only for partially replacing lead pipes. If municipalities and utilities are required to replace all of the estimated 6.1 million lead service lines nationwide-or just speed up their current replacement pace-some of them could face financial stress. Engineering firms, however, will play a diminished role in the vast majority of that specific line replacement work. JULY / AUGUST 2016 "Most service lines are on Orth is not as optimistic. private property and are gener"Because of the public outcry, ally the responsibility of the I would like to see some sort individual homeowners," says of leadership, but I expect that Mike Orth, executive vice we'll continue to defer and president of Black & Veatch's defer." Water Business. "The work will ACEC is advocating for mostly be done by plumbers." quick passage of the Water Utilities and local governments Resources Development Act of may have to provide grants 2016, which authorizes more and no- or low-interest than $12 billion for new loans to homeownCorps of Engineers ers who cannot projects, assistance afford to replace for communitheir lead lines, ties affected by he adds. lead in drinking Evans says water and other a sliver of the critical water from Flint water resource needs. work might fall crisis to firms. "Some Four Member Firm municipalities still leaders will address have issues determining the water sector issues and oppormakeup of their delivery lines," tunities as part of a special she says. "A lot of them might panel during the upcoming need help from engineering ACEC Fall Conference Oct. consultants in how to rebuild 19-22 in Colorado Springs, customer confidence in the Colorado. (See page 42). water system." A big concern for engineerTaking Water ing firms operating in the for Granted water sector-and in these Investment in water infrastrucdays of limited budgets at ture does not depend solely on all levels-is whether the government funding. Water increased dollars for line rates account for between 80 replacements will come from and 90 percent of the average money earmarked for other water utility's revenue, accordnecessary water infrastructure ing to Circle of Blue, a web projects. portal focused on water issues. Miles Jensen, water practice While water rates in the 30 largcenter leader at SEH, Inc., est U.S. cities climbed an averhopes water's unique status as age of 6 percent in 2015, most a "human survival need" will analysts agree that U.S. water drive municipalities to increase rates remain a huge bargain. their overall investment in "Water rates are definitely too infrastructure improvements. low when compared to other "I expect to see more collaboproducts," Jensen says. "We ration among local governtend to take water for granted." ments and Congress to invest Orth says Black & Veatch in ensuring access to clean, safe found in its annual water induswater," he says. try survey that utilities are aware $275 billion potential fallout

Table of Contents for the Digital Edition of Engineering Inc. - July/August 2016

Engineering Inc. - July/August 2016
Contents
From ACEC to You
Market Watch
Legislative Action
Engineering and Cyberdefense
Passing the Baton
Look Beyond the Premium
Turning Up the Power
Secure Defense
Lighting a Spark
Navigating a Challenging Terrain
2016 Fall Conference Preview
Guest Column
Mergers and Acquisitions
Guest Column
Members in the News
Business Insights

Engineering Inc. - July/August 2016

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