EDF Health

House leadership asks White House to scrap IUR enhancements: Where are ACC’s principles now?

Richard Denison, Ph.D., is a Senior Scientist.

[Update:  Here are links to the Chairmen’s news release and letter to OMB.]

E&E News is reporting (subscription required) that House Energy & Commerce Committee Chairman Fred Upton has called on the White House to scrap the Environmental Protection Agency’s (EPA) soon-to-be-issued enhancements to the only routine reporting system for chemicals across the entire federal government.

The final EPA rule would expand EPA’s Inventory Update Reporting (IUR), which requires periodic reporting of chemicals subject to the Toxic Substances Control Act (TSCA).  The rule was sent to the Office of Management and Budget (OMB) on January 20 and is awaiting approval.

Chairman Upton’s move, in the form of a letter to OMB Director Jacob Lew cosigned by Environment and Economy Subcommittee Chairman John Shimkus, follows closely on the chemical industry’s loud complaints about the rule late last month at the GlobalChem conference, cosponsored by the American Chemistry Council (ACC) and the Society of Chemical Manufacturers and Affiliates (SOCMA).  What gives?  Read More »

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Irresponsible Care: ACC seeks an exception to swallow the IUR Rule

Richard Denison, Ph.D., is a Senior Scientist.

I noted in an earlier post that the American Chemistry Council (ACC) is seeking major delays in the implementation of enhanced chemical information reporting requirements that EPA has proposed under its TSCA Inventory Update Rule (IUR).  But ACC isn’t content with just delaying the enhanced reporting.  It’s also seeking an exemption so large that it literally threatens to swallow much of the rule.

The proposed exemption is called for in a footnote on page 2 of the comments ACC filed on the proposed rule:  “Exemptions should be provided for any company engaged in an acquisition or divestiture during the years since the last reporting cycle.”

Just how large an exemption would that be?  Read More »

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Laws in states with the most lead service lines support using rates to fund replacement on private property: New analysis

Tom Neltner, J.D.Chemicals Policy Director

We found no explicit barriers to using rate funds to replace the lines on private property in the 13 we focused on. These states have an estimated 4.2 million LSLs, more than two-thirds of the nation’s total

Lead service lines (LSLs) – the lead pipes that connect a building’s plumbing to the water main under the street – are a significant source of lead in drinking water for those homes that have them. In light of the well-documented benefits to society from reducing children’s exposure to lead, there is a consensus that we need to replace the estimated six million LSLs remaining in the country. It will take time, but it needs to be done.

One challenge to this goal is how to fund replacement of the portion of the service line on private property. Because LSLs extend from under the street to a building, typically about half of the line is on public property and half is on private property. The perception among utilities has been that they do not have the legal authority to use rates paid by customers to cover the cost of replacing the portion on private property because it provides a benefit only to that property owner. This view was reinforced when the Wisconsin Public Service Commission blocked Madison from doing it, forcing the city to use other funds to complete the work. That decision from the early 2000s came before the risks of even low-level exposure to lead were well understood.

Many utilities have therefore taken to replacing only the portion of the LSL on public property when the property owner is unwilling or unable to pay to replace the portion on private property. The practice, often called “partial replacement,” is not only inefficient but can actually exacerbate residents’ exposure to lead. As evidence of the risks of even low-level exposure to lead—and of the society-wide benefits of reducing lead exposure—have mounted and the tragedy in Flint, Michigan made clear the need to replace LSLs, states like Indiana, Missouri, New Jersey, Pennsylvania and even Wisconsin, have adopted new laws or policies that have allowed funds from rates, with some limitations, to be used to replace the side on private property. Michigan has gone further and adopted rules mandating the practice, although some utilities have challenged the rule in court.

Given the funding challenge and the trends in the states, EDF partnered with the Emmett Environmental Law & Policy Clinic at Harvard Law School to review the state laws and policies in the 13 states with the most LSLs. Clinic Deputy Director Shaun Goho and law student Marcello Saenz conducted a state-by-state review of the laws, court decisions, and policies. The authors:

Found no explicit barriers to using rate funds to replace the lines on private property. These states have an estimated 4.2 million LSLs, more than two-thirds of the nation’s total. In these states, publicly-owned utilities can act pursuant to existing state legislation by determining that the practice serves a public purpose—protecting public health. Investor-owned utilities can do the same, but typically need approval of the state’s utility commission. While we have not reviewed the remaining states, we anticipate that the state laws and policies are similar to the ones we evaluated.

Read More »

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American Water demonstrates strong leadership on lead service line replacement

Tom Neltner, J.D.is Chemicals Policy Director

In a landmark decision on July 25, 2018, the Indiana Utility Regulatory Commission (IURC) approved American Water’s plan to fully replace the lead service lines (LSLs) in the communities served by its Indiana subsidiary over the next 10 to 24 years. This represents the replacement of about 50,000 LSLs across 27 community water systems (CWSs). As we highlighted in our blog on the company’s January 2018 proposal, the plan provides a framework that enables the cost of fully replacing LSLs, whether owned by the utility or by customers, to be shared by its 300,000 customers. As far as we know, this is the first comprehensive, voluntary LSL replacement program developed by an investor-owned utility in the country.

In its plan, American Water cited both long-term health and economic benefits that would be realized from avoiding partial replacements when rehabilitating water mains and laterals. The plan showed that having a single contractor handle the entire line reduces the overall cost by 25 to 30%. It also avoids the likely increased risk of consumer’s exposure to lead when only part of the lead pipe is replaced.

IURC’s approval found the plan “to be reasonable and in the public interest.” Even though the customer will continue to own the service line, American Water will be allowed to add the cost to remove and replace the customer-owned portion to the value of the utility’s property. The increase would be considered an infrastructure improvement cost once the new service line is placed into service.

Read More »

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Lead service line inventories – Indiana as a good model of a voluntary survey

Tom Neltner, Lindsay McCormick, and Audrey McIntosh

This blog is part of a series focused on how states are handling the essential task of developing inventories of lead service lines (LSLs) and making them public. The first blog identified 14 states that were taking on the issue: 4 with mandatory programs and 10 with voluntary. The second blog described programs in four states that mandate an inventory. In this blog, we highlight Indiana’s 2016 voluntary survey of utilities operating community water systems (CWSs) as a model because it ask utilities to: 1) identify who owns the line and provide the legal basis for that claim; and 2) rate its confidence in its estimates on a 1 to 10 scale. 

We found no other state survey asked about LSL ownership even though it is a central question in determining who is expected to pay for replacement. The Environmental Protection Agency’s (EPA) National Drinking Water Advisory Council (NDWAC) recommended[1] in 2015 that the agency require utilities to provide states this information as part of a revised Lead and Copper Rule (LCR). Unfortunately, 43% of the 781 CWS did not respond to Indiana’s survey, revealing a serious limitation of voluntary surveys.

In January 2016, a month before EPA encouraged states to develop an inventory of LSLs and make it available to the public, the Indiana Department of Environmental Management (IDEM) sent a two-page survey to utilities that operate CWSs in the state asking about drinking water service lines. The agency posted scanned PDF copies of the individual responses online but has not yet released a summary.[2]

Read More »

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American Water lays out a plan for replacing lead pipes in its Indiana systems

Tom Neltner, J.D.is Chemicals Policy Director

Updated May 4, 2018: The IURC issued an order on March 7 scheduling an evidentiary hearing for May 7, 2018 at 9:30 am at its offices in Indianapolis.  In advance of the meeting, the Office of Utility Consumer Counselor,  the state agency representing taxpayers interests, filed a brief supporting Indiana American Water’s proposal to replace LSLs using ratepayer funds with six modifications.  No parties opposed the proposal.  In response, Indiana American Water accepted some but not all of the modifications.

The Indiana subsidiary of American Water Company filed a plan in January 2018 with the Indiana Utility Regulatory Commission (IURC) to fully replace lead service lines (LSLs) in the communities it serves within the next 10 to 24 years. The company estimates that 50,000 of its 300,000 customers in the state have lead pipe in a portion of the service line connecting the main under the street with the building.

The plan is the first submitted to the IURC in response to legislation enacted by the Indiana General Assembly in April 2017 and authored by Rep. Heath VanNatter. If the IURC approves the plan, the company can seek Commission approval to include LSL replacement on private property as an eligible infrastructure improvement whose costs can be covered by rates paid by customers.

With the plan, American Water is essentially embracing the goal articulated by EPA’s National Drinking Water Advisory Council and the American Water Works Association that the United States needs to eliminate LSLs. We applaud that goal and American Water’s commitment – while it will take time to achieve, people should not be drinking water through lead pipes, even with optimal corrosion control. Read More »

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