Advancing Water Affordability Nationwide: A Framework for Action

Advancing Water Affordability Nationwide: A Framework for Action

The U.S. Environmental Protection Agency Environmental Finance Advisory Board developed this report in response to a five-part EFAB charge related to the affordability of water, sewer, and stormwater services.

The elements of EFAB’s affordability framework are as follows:

1. Capital Investments: The amount a customer pays for water services is driven by utility investments in infrastructure – what they build and how they build it. This report discusses infrastructure and project delivery alternatives that can provide meaningful cost savings over the long term.
2. Operational Efficiency: Numerous resources have been developed to support utilities seeking to maximize operational efficiencies, thereby limiting costs and ratepayer burdens.
3. Federal Financial Support: The federal government, and some states, offer various financial support options for local water capital investment, including grants, below-market-rate loans, principal forgiveness, other “additional subsidies,” and more.
4. Rate Structures and Design: Many water service providers have options for creating more equitable rate structures that can reduce financial burdens for low-income customers within current legal and regulatory parameters.
5. Customer Assistance Programs: There are households in every community unable to pay for essential water services, either chronically or in response to unexpected crises. CAPs can provide bill assistance directly to these customers through bill discounts, water use efficiency programs, payment management plans, and other methods.