EDF Health

Selected tag(s): Private property

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

By Tom Neltner, Senior Director, Safer Chemicals Initiative / Published: February 24, 2018

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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Lead service lines on private property – 3 states’ approaches to the challenge

By Tom Neltner, Senior Director, Safer Chemicals Initiative / Published: April 14, 2017

Tom Neltner, J.D., is Chemicals Policy Director

After the tragedy in Flint, Michigan, there is broad agreement that lead service lines (LSLs) need to be replaced. While corrosion control is essential, it isn’t a fail-safe, long-term solution. With the risks posed by lead to children’s brain development, we must eliminate LSLs – which currently account for an estimated 50 to 75% of the lead in drinking water.

One of the most significant challenges is determining who pays for replacing the portion of a LSL on private property and how it can be done in a way that does not leave low-income residents behind. Most utilities consider service lines on private property to be the responsibility of the property owner. They see replacing customer-owned portions of LSLs as improvements to private property and are typically restricted from using funds collected from all customers to fund an upgrade that benefits only a few. States often impose restrictions as well.

The interpretation that customers are responsible for LSLs on their property is ironic in communities such as Chicago, which mandated the use of LSLs until Congress banned them in 1986.  Given that they had a hand in creating the problem, it seems that they have at least some responsibility in fixing it. The threat posed by lead was well known for decades before Congress acted. Cities such as Cincinnati banned the use of lead pipes in 1927 and Boston in the 1930s.

It is difficult to put responsibility solely on the homeowner since they are unlikely to have been told they have a LSL by the seller. Even if they were aware that their home is serviced by an LSL, the risk a LSL poses to their family’s health is only now becoming clear.

Without support, low-income residents often cannot afford to pay for their portion of the LSL replacement, even if they get zero- or low-interest loans. However, wealthy residents have more options to make the investment than their low-income neighbors and landlords should be making the investment as part of their business.

In December 2016, Congress weighed in and authorized EPA “to establish a $300 million grant program to replace lead service lines on residential property in disadvantaged communities.”[1] It is up to Congress to appropriate the funds as part of its infrastructure investments and ensure that the grant program will not be a hollow promise.

But many states are not waiting on Congress. Three states, Indiana, Pennsylvania, and Wisconsin, have been wrestling with whether to allow communities to use a portion of rates paid by customers to pay for LSL replacements. Collectively, these states have an estimated 690,000 LSLs, 11% of the national estimate. In this blog, we will explore these three state approaches. Read More »

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