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1 1 (April 2, 2021)

handle is hein.crs/govecwo0001 and id is 1 raw text is: Congressional Research Service informing the legis ative debate since 1914____________________ Water Service Issues and COVID-19: Recent Congressional Funding April 2, 2021 Several water service issues have garnered increased congressional attention during the Coronavirus Disease (COVID-19) Pandemic. Among these, some are long-standing concerns over household water- rate affordability and the condition of municipal water infrastructure. Other issues have emerged as water systems and/or local governments have experienced COVID-19-related revenue shortages, which may affect water systems' operations, maintenance, and/or financial sustainability. During the pandemic, Congress has enacted a number of proposals to address these and other issues. To address water-rate affordability, the Consolidated Appropriations Act, 2021 (P.L. 116-260) provided $638 million for water or wastewater rate assistance on behalf of low-income households. The American Rescue Plan Act (ARPA; P.L. 117-2) included another $500 million for such assistance, and provided $350 billion for state and local governments for COVID-19-related purposes, among them water or sewer infrastructure investments. This Insight briefly reviews water system financial practices, and identifies some challenges for water service providers and their customers raised by the pandemic. It also discusses recent congressional actions to address these issues. Water System Financial Sustainability For drinking water and wastewater services, customers' bills typically support the costs to capture, treat, and convey water. The U.S. Environmental Protection Agency (EPA) states that full cost pricing for water systems includes past and future operations, maintenance, and capital costs. Water pricing structures vary (e.g., tiered rates or flat rates). Some publicly owned water systems may use other sources of local revenue to offset operation costs or use some water-rate revenue for other municipal purposes. While systems generally have flexibility in determining a pricing structure, certain privately owned systems (and, in some states, publicly owned systems) are subject to state and local requirements that control rate changes. Several factors may influence the cost of providing water service, including investments needed to repair infrastructure, expand service, or comply with regulatory requirements. Some systems offer programs to assist low-income customers with water bill payments, such as individualized payment plans or customer Congressional Research Service https://crsreports.congress.gov IN11642 CRS INSIGHT Prepared for Members and Committees of Congress

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