NRDC Grades Equity in State Water Infrastructure Policies, Finds Disadvantaged Communities Face Funding Challenges

WASHINGTON - The Biden Administration increased federal funding for water infrastructure projects, yet even with more money available, disadvantaged communities face challenges accessing funds to maintain drinking water and wastewater treatment systems, according to new NRDC (Natural Resources Defense Council) equity report cards for all 50 states released today.

The report - Will Funds Flow Fairly? State Water Infrastructure Report Cards­- is based on the degree to which states incorporate equity into water programs. NRDC issued every state a water funding equity grade considering policies that govern State Revolving Fund (SRF) award decisions for Clean Water SRFs and Drinking Water SRFs, as well as policies for lead service line replacement projects.

Only two states earned an overall A grade, with another ten receiving a B. Most states received a C or D, with two states receiving failing grades.

"Too many communities face challenges accessing funds to improve their water and sewer systems," said Rebecca Hammer, a senior attorney with NRDC."State leaders should look hard at their policies and adopt reforms to enhance funding access so that everyone in this nation can get safe drinking water and adequate wastewater treatment."

"The patchwork of state policies creates a barrier to getting money to many communities that need it most. Wildly varying state programs can lead to inequitable distribution of funding, particularly for communities of low-wealth people and people of color, where drinking water contamination and wastewater treatment problems are disproportionately high," said Erik D. Olson, senior strategic director for healthwith NRDC and a report co-author.

The 12 top-ranked states are:

A grades

Michigan

Pennsylvania

B grades

Arkansas

Delaware

Illinois

Indiana

Kentucky

Maryland

New Jersey

New York

North Carolina

Virginia

Two states earned F grades

South Carolina

South Dakota

The grades were assigned based on criteria evaluating how much additional subsidization (grants and forgivable loans) states give out overall and to each recipient; who can qualify for it; whether financial need is considered when ranking applications; and whether states are transparent about public comment opportunities and which policies they follow. We also considered lead service line funding policies: whether states have lead service line replacement mandates in place, prohibit partial replacements using SRF funds, and require utilities to pay for replacement.

NRDC's Rebecca Hammer has written a blog outlining what this scorecard means for the future water funding equity that is accessible here.

Additional Resources:

How Do States Distribute Federal Clean Water Grant Funds?(December 2022)

A Fairer Funding Stream: How Reforming the Clean Water State Revolving Fund Can Equitably Improve Water Infrastructure Across the Country(October 2022)

Testimony: Making Water Infrastructure Resilient & Equitable(April 2021)

Removing Lead Pipes Would Save Lives-and Money(October 2023)

Bipartisan Infrastructure Law Means Big Investments in Safe Water and Lead Pipe Removal(March 2022)

NRDC(Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.organd follow us on Twitter @NRDC.

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