LSL Policy Lowdown: August 31–September 13, 2026
🔎Legislative Scanner
Check out EPIC's legislative scanner to keep track of all the state LSL bills worth keeping an eye on.
Federal Updates
Congressional hearing discussed drinking water legislation & funding
The House Subcommittee on Environment held a hearing to discuss drinking water legislation, including State Drinking Water Revolving Funds (DWSRF) reauthorization and earmarks. Witnesses urged legislators to—at minimum—sustain DWSRF funding levels and establish a separate, dedicated funding stream for lead service line (LSL) replacement, which is currently not in the bill. They also raised concerns over the long-term impacts of earmarks on state’s set-aside and revolving loan capacity, urging Congress to fund earmarks as a separate, additive budget line, rather than deducing it from baseline appropriations, as we’ve recommended.
EPIC’s take: 🚩Funding winds down as regulatory compliance kicks in, putting water systems in a bind. Infrastructure Investment and Jobs Act (IIJA) LSL funding has been critical to advancing replacements nationwide. With that funding drying up, utilities are left asking how they will meet the Lead and Copper Rule Improvement’s (LCRI) 10-year replacement timeline. States face a similar challenge, having relied on set-aside funding to administer LSL programs and provide technical assistance to small and under-resourced communities, which often face the greatest capacity challenges.
Here’s what we think Congress should do:
Authorize $3 Billion Annually in Dedicated LSL Funding: Congress should sustain IIJA funding levels by authorizing $3 billion per year specifically for LSL replacement. This would help systems maintain momentum and stay on track to complete replacements within the LCRI’s 10-year timeline.
Waive the 1% Minimum State Allotment Requirement: States with very few LSLs currently receive more funding than they can use, leaving funds idle for two years until they are returned and realloted. Waiving the 1% minimum would allow funds to flow to high-burdened states faster.
Missing and incomplete inventories may hinder replacement efforts
A recent article highlights how gaps in LSL inventories can make replacement more challenging, especially for small and under-resourced systems. According to this article, roughly 6,300 systems failed to meet the 2024 initial inventory deadline, most of them serving populations under 500. Another challenge affecting systems of all sizes is the large number of remaining unknowns. Not knowing where LSLs are makes it harder to plan replacements, and starting in November 2027, the number of unknowns will be factored into the 10% annual replacement rate. In other words, the more unknowns a system has, the more lines it may need to replace each year to meet the 10% target.
EPIC’s take: 💡Different problems require different solutions (even if they look similar). As we’ve said before, small and under-resourced systems often need more than funding. They may need hands-on support before they are ready to apply for funding, manage awards, or navigate compliance requirements. States and EPA should invest in technical assistance to build system capacity and help communities meet LCRI requirements.
On the positive side, EPA’s new inventory guidance provides more flexibility around acceptable supporting documentation (e.g, personnel experience), which will help small systems with limited data to complete their inventories. The guidance also encourages the use of predictive modeling and artificial intelligence, which could help larger systems with higher quality data fill inventory gaps more efficiently and cost-effectively.
Local Updates
🏆Wins
Pittsburgh, PA celebrates the removal of 16,000 public-side LSLs. Pittsburgh Water has also replaced 12,250 private-side lines and is on track to complete replacements by the end of 2027
EPIC’s take: 👏 Go Pittsburgh! Pittsburgh is a great example of a utility that got ahead of the curve. Starting in 2016, well before any replacement mandates were in place, Pittsburgh Water committed to eliminating lead from its distribution system. Nearly 10 years later, the finish line is in sight, showing what’s possible when utilities start early and stay the course.
SRF funds help overcome private-side replacement challenges. Thanks to SRF funds Aqua Pennsylvania and South St. Paul, MN are starting replacement projects at no-direct cost to homeowners, an approach that increases program participation.
EPIC’s take: 👍A reminder of why SRF funding is critical to advance LSL replacement. Favorable financing helps water utilities cover private-side replacement costs without relying on cost-sharing. That’s particularly important for cities like South St. Paul where property owners are responsible for the entire service line from their building to the water main. Removing financial barriers to homeowners can increase program participation and enable more cost-effective block-by-block replacements.
West Chicago, IL got more lead out for its buck by pairing water infrastructure projects. The city replaced 90 more LSLs than originally anticipated by coordinating service line and water main replacements.
EPIC’s take: 👍A great example of how coordinated infrastructure projects improves cost-effectiveness. Pairing infrastructure projects can reduce LSL replacement costs associated with construction and restoration by achieving economies of scale, especially for block-by-block projects.
🚧Hurdles
Wausau, WI votes down LSL replacement mandate. Amid concerns about how the city will pay for private-side replacements as federal funding winds down, the city council voted down an ordinance that would have required property owners to replace their LSLs.
EPIC’s take: 🚩Local replacement mandates can be effective, when homeowners are not expected to pay. In our last lowdown, we talked about how Wausau is grappling with how to cover private-side replacement costs. Many other communities are likely in the same boat considering cost-sharing models, but we caution that they could ultimately make replacement more expensive by leading to scattered follow-up work when homeowners initially decline to pay.
Want to learn more?
Visit EPIC's LSL Policy Lowdown page, LSL Replacement Initiative page, and our Lead Innovation Hub.
