Underground Construction - February 2022 - 14

25TH ANNUAL MUNICIPAL SEWER/WATER INFRASTRUCTURE FORECAST & MARKET ANALYSIS
Robert Carpenter | Editor-in-Chief
Rare Funding Bonanza Stimulates
It's been 25 years since Underground
Construction initiated detailed research
into the spending plans of America's cities
and government agencies, with the annual
Municipal Sewer and Water Infrastructure
Forecast & Analysis Survey. As the industry
enters 2022, at no point in the past 25 years
have federal dollars flowed as freely or in
such high numbers
This major influx of funding has given
municipalities a much greater confidence
in spending for 2022, compared with
recent
years. Most survey
respondents
(68 percent) will be seeking a piece of the
suddenly abundant federal funding pie.
In fact, the research reveals an anticipated
overall 16.4 percent increase in sewer and
water funding for 2022 by municipal and
related organizations, or new, replacement
and rehabilitation infrastructure spending
of $22.83 billion. This level of funding is
expected to be sustained through 2026. All
this comes after a sluggish 2020-'21.
The survey polled
U.S.
municipalities
about their top concerns and issues,
Construction/Rehab Spending
Sewer
10
11
12
13
2
3
4
5
6
7
8
9
1
2018
2019
2020
Rehabilitation
14 FEBRUARY 2022 | UCONonline.com
2021
2022
2018
2019
2020
New construction
2021
2022
4.7
2.1
1.4
1.46
2.2
4.7
4.85
2.3
1.5
4.95
1.31
4.65
2.12
6.01
5.62
5.0
5.2
5.29
5.03
Water
Storm Sewer
2.2
3.2
1.6
1.9
3.7
1.95
3.74
2
1.9
3.81
3.48
4.2
2022 infrastructure spending plans and
working relationships with consulting
engineers and contractors. This exclusive
annual study also provides detailed insight
into America's cities with information
and perspectives on industry topics and
technology. It reflects only information
regarding sewer, water and stormwater
piping infrastructure and does not include
figures or data on pumping and lift stations,
treatment plants, etc. Respondents ranged
in size from rural communities of less than
1,000, to mid-sized cities up to 500,000 and
a representative sampling of the nation's
largest municipalities.
High hopes
After a year of partisan politics at their worst,
against a continued backdrop of the COVID
pandemic, the public good rose above the
fray. In late 2021, Congress finally passed
the much- anticipated and desperately
needed Infrastructure Investment & Jobs
Act (IIJA). While spreading masses of
money throughout many infrastructure
markets, the sewer and water industry is
set to receive $44 billion over five years,
beginning with fiscal year 2022. Several
billion dollars have already been earmarked
for many areas of the country.
These funding initiatives are designed to
be over and beyond what is allotted to the
Clean Water and Drinking Water Revolving
Funds (SRFs), which typically receive between
$1 and $2 billion annually from the
appropriations committees.
The infusion of funding is spread over
several of new programs but also includes
$11.7 billion over five years for both SRFs:
$1.902 billion in FY22, $2.202 billion in
FY23, $2.403 billion in FY24, $2.603 billion
in FY25, and $2.590 in FY26. The first
two years (FY22 and FY23) have a reduced
state match of 10 percent but reverts to
20 percent for FY24-26. The other main
concession is that states are required to
spend at least 49 percent of these funds in
the form of grants or 100 percent principal
forgiveness - a much higher share than
usual not needing to be repaid.
In addition, the bill distributes another
$10 billion over five years for addressing
emerging
contaminants
like
perand
poly-fluoroalkyl
substances (PFAS), a
family of manmade chemicals found in
many consumer products, which the
Environmental Protection Agency (EPA)
says can negatively impact human health
and the environment. The money is divided
into three areas:
* $4 billion to address emerging
contaminants in drinking water,
focusing on PFAS. It will be
appropriated evenly, at $800 million
per year, from FY22 through FY26.
The funds will be provided to states
via the DWSRF, with no required
state match. All these funds must
be awarded by states as grants or
principal forgiveness loans.
* $5 billion to help small and
disadvantaged communities address
emerging drinking water contaminants.
Billions
Projected
Projected
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