Chronic underfunding of America’s water and wastewater infrastructure resulted in a $55 billion funding gap in 2010 that will grow to $84 billion in 2020 and to nearly $144 billion by 2040 if current trends persist. The American Society of Civil Engineers (ASCE) reported these projections in Failure to Act: The Economic Impact of Current Investment Trends in Water and Wastewater Treatment Infrastructure.
ASCE finds the consequences of the growing gap include increased costs for businesses and consumers that could result in the loss of 700,000 jobs by 2020. The report predicts increased water infrastructure needs will cause local water rates to rise. In addition, households could face lost income due to medical costs associated with water-borne illnesses and the purchase and installation of individual wells, septic systems or in-home water recycling units.
The Society does not advocate that the federal government step in to completely fill the water investment gap, however. Testifying on Capitol Hill in December, ASAE President-Elect Greg DiLoreto, General Manager of the Tualatin Valley Water District in Oregon, said the group recommends federal policy changes reauthorizing the State Revolving Fund programs, developing a Water Infrastructure Finance Innovations Authority, eliminating the state volume cap on private activity bonds for water and wastewater projects, establishing a national infrastructure bank and investigating opportunities to create a dedicated federal source of revenues to fund water projects.
The Failure to Act report is available on ASCE’s website.