Statistics

THE PROBLEM

Deteriorating infrastructure

• American Society of Civil Engineers has given our nation’s wastewater and drinking water infrastructure a D- grade.
• According to the American Water Works Association, restoring existing drinking water systems and expanding them to serve a growing population will cost at least $1 trillion over the next 25 years. 
• There is an increasing number of costly and disruptive water main breaks and pipe failures in our communities; it is much more costly to be reactive than proactive.

 Inefficiencies and Lack of Reliability Drive Up Costs

• Inefficiencies in our water infrastructure system drive up the cost to the public in everything we buy and use.
• Unless new investments are made by 2020, unreliable and insufficient water infrastructure will cost the average American household $900 a year in higher water rates and lower wages; American businesses can expect an additional $147 billion in increased costs and the economy will lose 700,000 jobs.

 Waterborne Illnesses Predicted to Rise

• Water infrastructure investment is critical to protect public health and our quality of life.  A recent study in the American Chemical Society journal Environmental Science & Technology warned that the incidence of acute gastrointestinal illness will likely rise in coming years: “So far insufficient financial investments have been made to improve water infrastructure, and small systems are particularly at risk for lack of funds and personnel. As most of the national water distribution infrastructure is reaching the end of its design life in the coming decades, the frequency and health impacts of distribution system deficiencies will likely worsen.”
• The American Society for Civil Engineers estimates that the increase in waterborne illnesses due to deficiencies in water systems and the projected investment gap will create a monetary burden of $413 million for 2011-2020.

 Continued Unemployment Warrants Infrastructure-Related Spending

• The Bureau of Labor Statistics’ August 2012 Jobs Report found that the U.S. economy added only 96,000 jobs in August and the unemployment rate was 8.1 percent.

 Funding Gap

• The U.S. EPA 2008 Clean Watershed Needs Survey and the 2009 Drinking Water Needs Survey has identified a total water infrastructure capital investment need of $632.9 billion over the next 20 years; at current funding levels, there will be a capital funding gap of at least $224 billion nationwide unless investment increases.  These figures are for capital costs and do not include costs for operating and maintaining water systems, which place an additional strain on local communities and their citizens. 
• The American Society of Civil Engineers estimate a slightly more conservative funding gap of $84 billion by 2020 unless investment increases.
• Total public investment in water infrastructure as a share of the economy is estimated to have fallen by more than one-third since peak levels of investment in 1975. Most costs are borne by local ratepayers and many communities are already facing serious affordability issues.  The amount water bills rise will vary depending on past investment, community size and geographic region, but in some communities the infrastructure costs alone could triple the size of a typical family’s bill.

 THE SOLUTION

Water, Jobs and the Economy (Water Works: Rebuilding Infrastructure Creating Jobs Greening the Environment (PDF), Green for All, 2011)

• An investment of $188.4 billion spread equally over the next five years would generate $265.6 billion in economic activity and create close to 1.9 million jobs.
• Investments in water and other infrastructure are one of the most efficient methods of job creation in the current economy.
• Infrastructure investments create over 16 percent more jobs dollar-for-dollar than a payroll tax holiday, nearly 40percent more jobs than an across-the-board tax cut, and more than five times as many jobs as temporary business tax cuts.
• 90 percent of the jobs created by infrastructure investment are middle-class jobs (Department of the Treasury, Economic Analysis of Infrastructure Investment (PDF), Oct. 12, 2010)

 U.S. Environmental Industry (U.S. Department of Commerce)

• In 2010, US environmental industry generated approximately $312 billion in revenues, with a global market of more than $800 billion
• Environmental industry employed nearly 1.7 million Americans (61,000 small businesses) in 2010
• Water equipment and chemicals is the largest component of the environmental sector (37% of exports), with approximately $10 billion in exports in 2009

 Widespread Public Support for Water Investment

A 2010 ITT Corporation (Xylem) Survey found that:

• 95 percent of Americans rate water as “extremely important,” more than any other service they receive, including heat and electricity.
• 80 percent of voters say water infrastructure needs reform; about 40% say “major reform” is necessary.
• 85 percent of voters and 83 percent of businesses agree that federal, state or local governments should invest money in upgrading water pipes and systems.
• 79 percent of voters and 75 percent of industrial and agricultural businesses agree that government officials must spend more time addressing water issues.

 State Infrastructure Needs

Every state faces significant infrastructure investment needs; many face per capita needs that surpass the national average.  For more information on the needs in your state, visit:

• Water is Your Business  
• American Society of Civil Engineers 2009 Report Card 

Case Studies

• Northeast
  • According to the New York State Department of Health, “there is a compelling need for a more comprehensive and sustainable water infrastructure funding program, yet insufficient mechanisms exist to provide that funding. The conservative cost estimate of repairing, replacing, and updating New York’s drinking water infrastructure is $38.7 billion over the next 20 years.”
• Southeast
  • North Carolina’s drinking water infrastructure needs $10.98 billion in investment and the wastewater infrastructure needs $5.05 billion over the next 20 years.
• Midwest
  • Iowa’s drinking water infrastructure needs an investment of $3.5 billion over the next 20 years. Iowa also has $953 million in wastewater infrastructure needs in that same timeframe.
• Southwest
  • Texas Water Demand Case Study
    • The population in Texas is expected to increase 82 percent between the years 2010 and 2060, growing from 25.4 million to 46.3 million people.
    • If Texas does not implement new water supply projects or management strategies, homes, businesses, and agricultural operations are projected to need 8.3 million acre-feet of additional water supply by 2060.
    • If extreme drought conditions persist, annual economic losses from not meeting water supply needs could result in a reduction in income of approximately $11.9 billion annually and as much as $115.7 billion annually by 2060, with over a million lost jobs.
    • The capital cost to design, construct, or implement the recommended water management strategies and projects is $53 billion.
    • Investment of $53 billion is necessary to prevent loss of over a million jobs and $115 billion reduction in income annually by 2060.
• West
  • Nevada’s drinking water infrastructure needs an investment of $912 million over the next 20 years. Nevada has $246 million in wastewater infrastructure needs.