US infrastructure bill would reduce lead contamination; US West drought hits water supply

Moody's Talks - Muniland

Dan Kowalski and Michael Wertz of the US Public Finance team discuss the bill’s funding to replace lead service lines and water utilities facing a mix of aging assets and climate change. Plus, Steven Goodman-Leibof and Helen Cregger weigh in on the credit effects of water reductions in Arizona, Nevada and California.

Inside this episode:

• Dan Kowalski and Michael Wertz of the US Public Finance team discuss the bill’s funding to replace lead service lines and water utilities facing a mix of aging assets and climate change. (begins at 1:22 mins)
• Steven Goodman-Leibof and Helen Cregger weigh in on the credit effects of water reductions in Arizona, Nevada and California. (begins at 8:56 mins)

Related content:

• State and Local Government – US: Infrastructure bill would help fund lead service line replacement, a credit positive - The Senate's bipartisan infrastructure bill would provide $15.7 billion to replace lead service lines, benefiting states, cities, utilities and school districts with high exposure.
• Water Distribution – US: Drought-driven water supply cuts pose long-term risks for utilities in Arizona,California and Nevada - Declining water levels in Lake Mead, a major water reservoir in the West, highlight the long-term environmental risks from accelerating climate change for utilities in drought-prone areas.
• Municipal Water and Sewer Utilities – US: Climate threats and aging infrastructure portend rising credit risks for many utilities - Escalating infrastructure needs due to aging systems and growing climate challenges expose municipal water and sewer utilities to increased costs, higher debt loads and rising customer rates
• Environmental Utilities – California: Water utilities prepared for current drought; climate risks will intensify threat over time - California water utilities are generally well prepared to meet challenges as the state's drought continues, but greater investment to combat the effects of climate change will remain key.
• Jackson (City of) MS: Storm disruption to cost already struggling water and sewer system - A service outage will hurt revenue and bring repair costs for the Jackson water and sewer system, which already faces heightened costs associated with a consent decree and other matters.