Rural Water Grants Drying Up, Congress Steps In

Rural water utilities are struggling to find funding to upgrade and perform routine repairs on their systems.

According to Kentucky Rural Water Association Specialist Randall Kelly, funding is only getting scarcer as grant programs dry up.

“That has to be budgeted for in their rates and so, some of these communities are poor communities, so they really can’t jack up their rates very much," Kelly said, per WEKU. "It’s a tough balance. They are looking for ways to save money in a lot of cases."

Compared to cities, water infrastructure is often more expensive in rural areas because people are spread out. “The most recent Environmental Protection Agency (EPA) Drinking Water Needs Survey found a shortfall of $64 billion in drinking water infrastructure funding for small communities,” according to the well-owner lobby Water Systems Council.

Legislation introduced in Congress last week by Reps. Richard Hanna, R-NY, and Jim Cooper, D-TN, tries to focus on water infrastructure challenges in rural areas.

The proposal attempts to “provide rural areas with cost-effective alternatives to accessing clean, high quality water. By adding options like water-well systems to areas that don’t have them, Hanna and Cooper believe that their bill will reduce federal, state, and local costs for providing water services,” Consumer Affairs reported.

Hanna, who operated a construction business for three decades, explained the thinking behind this proposal.

“Traditional municipal water systems don’t work in every community or are prohibitively expensive. I know because I’ve built them,” said Hanna, per the Rome Sentinel. “Fortunately, there are other options. Communities seeking federal assistance to upgrade their water infrastructure should be given the most comprehensive information possible so that they can build the most appropriate and cost-effective system that best meets their unique needs.”

Here’s what the bill does, according to Water Systems Council:

The Water Systems Cost Savings Act will update existing EPA and U.S. Department of Agriculture (USDA) programs to provide cost-saving information to small communities facing drinking water challenges. The legislation also ensures that alternative drinking water supplies such as individual, shared and community wells be considered in applications for federal funding for drinking water systems serving 500 or fewer people.

For more stories on how utilities handle financial planning, visit Water Online’s Funding Solutions Center.