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
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