🔎Legislative Scanner
Check out EPIC's legislative scanner to keep track of all the state LSL bills worth keeping an eye on.
State Updates
Louisiana voters approve public funding for private-side LSL replacement
Last week, Louisiana voters approved a constitutional amendment allowing water utilities to use public funds, including water rates, to cover private-side LSL replacement costs.
EPIC’s take: 👏Godspeed, Louisiana! Combined with Louisiana’s recently enacted law enabling utility access to private property for replacements, this amendment should help clear the way for utilities to make real progress. Removing both the funding and access barriers is an important step toward getting the job done.
New York reintroduces lead pipe funding bill with a new approach
The Consolidated Lead-line Elimination and Replacement (CLEAR) Act proposes to restructure the state’s former LSL Replacement Program as a non-competitive, formula-based, reimbursement program. Modeled after other state funding programs like the Consolidated Local Street and Highway Improvement Program (CHIPS), Extreme Winter Recovery (EWR), and PAVE-NY, the program would reimburse municipalities for replacement costs up to $12,000 per line, plus interest charges for loans taken out to finance the work.
EPIC’s take: 👍More predictable funding, but upfront costs remain. Preparing and submitting funding applications requires staff time and resources, and competitive grants offer no guarantee of an award. A formula-based reimbursement program could give municipalities greater certainty that they will receive funding. But reimbursement still means communities need to finance projects upfront. That can be a significant hurdle for under-resourced municipalities that lack the cash flow or borrowing capacity to get projects started. Additional support may be needed to help these communities access the program.
Local Updates
🏆Wins
Tennessee American Water spells out a plan to spread costs while keeping water affordable in Chattanooga. The water utility plans to spread the cost of replacing its 3,600 lead service lines across its ratepayer base. This proposal pencils out to an additional 3.65 cents per month on customer bills.
EPIC’s take: 👍Spreading out costs can reduce financial burdens. Distributing private-side replacement costs across a broad ratepayer base helps homeowners avoid large upfront bills without placing a significant burden on other customers, particularly when the utility serves a large enough population. It’s one way to make full replacement more affordable and accessible.
🚧Hurdles
East Dundee, IL raises water rates by 10% to help fund LSL replacement. As part of its budget process, the village proposed to raise water rates to cover capital improvement projects, including LSL replacements. The hike would add a little over $4 per month to customer bills. To help offset costs, the village has applied for SRF funding and is considering the use of municipal bonds.
EPIC’s take: 🚩Communities are searching for change between the couch cushions. Like many localities, East Dundee is grappling with how to pay for LSL replacement as federal IIJA funding winds down. Rate increases are one option, but they can create affordability challenges and face public resistance. The village’s consideration of multiple funding sources, including SRF assistance and municipal bonds, shows how building a solid capital stack can help cover costs. We encourage municipalities to explore other innovative funding and financing approaches, too, as outlined in our whitepaper.
Wausau, WI continues to wrestle with how to pay for replacements. Although the city recently approved a local replacement ordinance that could strengthen its SRF funding applications, the decision may have come too late to benefit from this funding cycle. As a result, Wausau may miss out on additional principal forgiveness. The city is also reconsidering whether LSL replacement costs could be eligible under its tax increment district.
EPIC’s take: 🚩Planning ahead can prevent financial headaches. Wausau deserves credit for keeping replacements moving at no direct cost to homeowners, but its current funding challenges highlight the importance of planning ahead. The replacement ordinance and the use of tax increment financing are both approaches the city had considered before. Acting on these options earlier could have put Wausau in a stronger position to secure funding and principal forgiveness. Now, the city is playing catch-up and may have to consider cost-sharing if other funding sources fall short.
Want to learn more?
Visit EPIC's LSL Policy Lowdown page, LSL Replacement Initiative page, and our Lead Innovation Hub.
