CEO Will Pickering, city, state, and federal representatives and members of Pittsburgh Water's board celebrate Pittsburgh Water's Community Lead Response achievements at lead line removal site, 31 Oct. 2024
Pittsburgh, PA – Today, Pittsburgh Water announced the receipt of $26 million in grants and low-interest loans from the Pennsylvania Infrastructure Investment Authority (PENNVEST) to continue the diligent removal of lead service lines throughout Pittsburgh’s drinking water system. This funding, provided by the Bipartisan Infrastructure Law (BIL), is split roughly half-and-half between a nearly $13 million 1% 30-year loan, and a $13 million grant.
“We are grateful for the support of PENNVEST, Governor Shapiro, and the federal government in bringing Pittsburgh Water ever closer to achieving a lead-free water system with this latest award,” said Pittsburgh Water CEO Will Pickering. “These sources of funding are enormously helpful in supporting our mission to protect public health through safe and reliable water services.”
Pittsburgh Water will use this award to fund the replacement of 580 public and 1,100 private lead service lines across 10 Pittsburgh neighborhoods, including Homewood, Oakland, Garfield, Friendship, Lincoln-Lemington-Belmar, South Side Slopes, Central Northside, Marshall Shadeland, Mount Washington, and Squirrel Hill. Proactively removing lead service lines is the most effective way to eliminate the presence of lead in drinking water, and PENNVEST funding such as this helps take a significant amount of financial burden off the shoulders of Pittsburgh Water’s ratepayers.
Since the inception of their Community Lead Response program in 2016, Pittsburgh Water has replaced over 12,000 lead service lines, and is on track to replace every residential lead line in their service area by 2027. This robust program has made Pittsburgh Water an industry leader in lead service line replacements, resulting in the organization being consulted by water utilities and municipalities across the country for strategic guidance on protecting public health and improving water quality.
Fueling Pittsburgh's Economy
The essential work Pittsburgh Water is doing throughout the community has a direct economic impact on the Pittsburgh region. This $26 million award will generate approximately $42 million in economic benefits to our region by stimulating the local economy, creating jobs, and keeping money in local communities.
Pittsburgh Water’s lead service line replacement program creates contracting opportunities for construction firms local to Pittsburgh and Pennsylvania. Pittsburgh Water’s procurement policies and use of PENNVEST funding require a robust and thorough Disadvantaged Business Enterprise (DBE) solicitation process. Outreach to vendors through the Pennsylvania Department of General Services Supplier Search ensures DBE firms are aware of opportunities and the ability to compete for work funded by EPA financial assistance dollars. To learn more of these upcoming opportunities, DBE firms are encouraged to register through Pittsburgh Water’s Procurement Portal.
“Pittsburgh Water appreciates the level of recognition this latest PENNVEST award represents,” said Ed Barca Pittsburgh Water’s Director of Finance. “The progress we’ve made in recent years demonstrates our commitment to protecting the health and safety of the communities we serve, and this funding will help expedite our work even further.”
Since 2018, Pittsburgh Water has received a total of $809 million from PENNVEST through a combination of $714 million in low-interest loans and $95 million in grants that do not have to be repaid. Pursuing external funding from state and federal partners helps reduce the cost to ratepayers over time during an unprecedented level of investment in our essential water systems. Over time, this award will save Pittsburgh Water ratepayers $945 million as opposed to traditional municipal bond funding.
As a publicly owned and operated water utility, Pittsburgh Water does not generate profits, instead investing every dollar directly back into the water systems that serve those living and working in Pittsburgh. To learn more about the organization’s finances and use of ratepayer dollars, visit https://www.pgh2o.com/about-us/finance.
