SEPA
   United States
   Environmental Protection
   Agency
Drinking Water
Infrastructure Needs Survey
and Assessment
Fourth Report to Congress
                                            -


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Cover photos (clockwise from top right): Girl in pool, www.iStockphoto.com; Water tower, www.iStockphoto.com; Desolation Wilderness,
California, Amy Draut; Flocculators in a Butte, Montana treatment facility, Montana Department of Environmental Quality; Upper Rogue River,
Oregon, Amy Draut; Man with daughter at drinking fountain, www.iStockphoto.com; Inside the new pipe gallery at the Neuse Regional Water
and Sewer Authority in North Carolina, Jim McRight,  North Carolina Department of Environment and Natural Resources; Water Utility worker, www.
iStockphoto.com; Distribution main at the construction site of a new treatment plant in Helena, Montana, City of Helena; Girl drinking water,
Sandie Koenig;  Construction at a water treatment facility in Corsicana, Texas, Texas Water Development Board; Quabbin Reservoir, Massachusetts,
Charles Hernick
Office of Water (4606M)
EPA 816-R-09-001
February 2009
www.epa .gov/safewater

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           Drinking Water
Infrastructure Needs Survey and
            Assessment

       Fourth Report to Congress

20
II
07
\\

         U.S. Environmental Protection Agency
                Office of Water
        Office of Ground Water and Drinking Water
          Drinking Water Protection Division
             Washington, D.C. 20460

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Contents
EXECUTIVE SUMMARY	i
CHAPTER 1: FINDINGS - NATIONAL NEED	1
    2007 Total National Need	1
    2007 Total National Need Compared to EPA's Previous Assessments	3
    Total National Need by Project Type	5
        Transmission and Distribution Needs 	6
        Treatment Needs	7
        Source Needs 	7
        Storage Needs	8
        Other Needs 	8
    Need by System Size	9
    Needs Associated with SDWA Regulations	10
        Existing Regulations	10
        Proposed or Recently Promulgated Regulatory Needs	11
    Security Needs	13
    American Indian and Alaskan Native Village Water System Needs 	14
CHAPTER 2: FINDINGS - STATE NEED	17
    State-Specific Needs 	17
    Changes in State-Specific Need through Assessment Cycles	22
    Continuing Evolution of the DWINSA	24
    Key Observations on Each Assessment's Approach	25
    Unique Needs of Water Systems in U.S. Territories	26
APPENDIX A-SURVEY METHODS	29
APPENDIX B - DATA COLLECTION	39
APPENDIX C - POLICIES	45
APPENDIX D - ACCURACY, PRECISION, AND UNCERTAINTY	53
APPENDIX E - SUMMARY OF FINDINGS FOR SYSTEMS SERVING 10,000 AND
   FEWER PERSONS	57
GLOSSARY	61

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Exhibits
Exhibit ES.l: DWINSA Comparison of 20-Year National Need 	i
Exhibit 1.1: Total National 20-Year Need	1
Exhibit 1.2: Total National 20-Year Need Comparison to Previous DWINSA Findings 	3
Exhibit 1.3: Total 20-Year Need Comparison to Other Assessments	4
Exhibit 1.4: Total 20-Year Need by Project Type	5
Exhibit 1.5: Total 20-Year Need by System Size and Type and Project Type	5
Exhibit 1.6: Community Water System 20-Year Need by Size and Population	9
Exhibit 1.7: Total Regulatory vs. Non-Regulatory 20-Year Need	10
Exhibit 1.8: Total 20-Year National Regulatory Need	10
Exhibit 1.9: Total National 20-Year Need for Proposed and Recently Promulgated Regulations	12
Exhibit 1.10: Total National 20-Year Security Needs	13
Exhibit 1.11: Total 20-Year American Indian and Alaskan Native Village Water System Need
            by Project Type	14
Exhibit 1.12: 20-Year American Indian and Alaskan Native Village Water System Need
            by EPA Region 	15
Exhibit 2.1: State 20-Year Need Reported by Project Type	18
Exhibit 2.2: State 20-Year Need Reported by System Size	19
Exhibit 2.3: Overview of 20-Year Need by State	20
Exhibit 2.4: State 20-Year Need Reported for Partially Surveyed States	21
Exhibit 2.5: Historic State Need Reported for Each DWINSA	23
Exhibit 2.6: 20-Year Need Reported by U.S. Territories	26
Exhibit A.1: Community Water System Stratification for the 2007 Assessment	31
Exhibit A.2: Medium and Large Community Water System Sample Size	32
Exhibit A.3: Small Community Water System Sample Size	34
Exhibit B.I: DWINSA Allowable and Unallowable Projects	40
Exhibit E.I: 2007 State Need Reported by Project Type for CWSs Serving a Population of
            10,000 and Fewer	58

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Acknowledgments
Many dedicated individuals contributed to the 2007 Drinking Water Infrastructure Needs Survey and Assessment. We
would like to thank the state and U.S. Environmental Protection Agency (EPA) Needs Assessment coordinators and
their supporting staffs and contractors for their active participation and continuing interest in the project. Not listed
here are the operators and managers of the approximately 3,250 systems who spent their valuable time completing the
questionnaires sent to them. We thank them for their assistance.
Mark Spinale - U.S. EPA Region 1
Theodore Dunn - Connecticut
Patrick Rogers - Massachusetts
Roger Grouse - Maine
Richard Skarinka - New Hampshire
Gary Chobanian - Rhode Island
Eric Blatt - Vermont

Ray Kvalheim - U.S. EPA Region 2, U.S. Virgin Islands
Roger Tsao, Todd Taylor - New Jersey
Steve Marshall, Dave Phillips - New York
Adamaris Quinones - Puerto Rico

Ken Pantuck - U.S. EPA Region 3
Jennifer Bruneau - District of Columbia
John Degour - Delaware
Chris Carski - Maryland
Hardik Patel - Pennsylvania
Dale Kitchen, Jeremy Hull - Virginia
Bob Decrease - West Virginia

Dale Froneberger - U.S. EPA Region 4
Chris Strickland - Alabama
Isaac Santos, Paul Brandl, Craig Diltz - Florida
Chris Smith - Georgia
Sarah Tucker - Kentucky
Sheila Williams, William Moody - Mississippi
Sid Harrell, Vince Tomaino - North Carolina
Sheila Watts - South Carolina
Khaldoun Kailani - Tennessee

William Tansey - U.S.  EPA Region 5
Dave McMillan - Illinois
Sarah Hudson - Indiana
Richard Benzie - Michigan
Lucas Martin - Minnesota
Stacy Barna - Ohio
James Witthuhn - Wisconsin
Dave Reazin - U.S. EPA Region 6
Raymond Thompson - Arkansas
Julie Comeaux - Louisiana
Mary Day - New Mexico
Steven Hoffman - Oklahoma
Fawn Pruet, Don Thompson - Texas

Rao Surampalli - U.S. EPA Region 7
Roy Ney, Jennifer Bunton - Iowa
William Carr - Kansas
Steve Jones - Missouri
Steve McNulty - Nebraska

Brian Friel - U.S. EPA Region 8
John Payne - Colorado
Marc Golz - Montana
Chuck Abel - North Dakota
Jim Anderson - South Dakota
Julie Cobleigh - Utah

Jose Caratini, Barry Pollock - U.S. EPA Region 9, U.S. Territories
Jonathan Bernreuter - Arizona
Michael Ngai, Dat Tran - California
Stuart Yamada -  Hawaii
Adele Basham - Nevada

Richard Green - U.S. EPA Region 10
Christopher Clark - Alaska
Carol Garrison - Idaho
George Waun - Oregon
Peter Beaton - Washington

U.S. EPA Office of Water
Robert  Barles - Needs Assessment Coordinator
Peter Shanaghan - DWSRF Team Leader
Charles Job - Drinking Water Infrastructure Branch Chief
The Cadmus Group, Inc. - Prime Contractor

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                                                                       City of Helena, Montana
The base of a 1.5 million gallon storage tank under construction in Helena, Montana.

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Executive Summary
Total National Need
The U.S. Environmental  Protection Agency's (EPA's)  fourth
national assessment of public water system infrastructure needs
shows a total twenty-year capital improvement need of $334.8
billion. This estimate represents infrastructure projects necessary
from January  1, 2007, through December 31, 2026, for water
systems to continue to provide safe drinking water to the public.
The national total comprises the infrastructure investment needs
of the nation's approximately 52,000 community water systems
and  21,400  not-for-profit noncommunity  water  systems,
including the  needs of American Indian and Alaskan Native Village water systems, and the costs associated
with proposed and recently promulgated regulations. The findings are based on the 2007 Drinking Water
Needs  Survey and Assessment (DWINSA or Assessment) which relied primarily on a statistical survey of
public water systems (approximately 3,250 responses).
                                                           $334.8 Billion is Needed

                                                           The nation's drinking water utilities need $334.8
                                                           billion in infrastructure investments over the next
                                                           20 years for thousands of miles of pipe as well
                                                           as thousands of treatment plants, storage tanks,
                                                           and other key assets to ensure the public health
                                                           and economic well-being of our cities, towns, and
                                                           communities.
                                                The  estimate covers  infrastructure needs that are
                                                eligible for, but not necessarily financed by, Drinking
                                                Water State Revolving Fund (DWSRP) monies (note-
                                                DWSRF  is  designed  to  supplement,  not replace,
                                                investment funding by states and localities as well as
                                                rate payers).  Projects eligible  for DWSRP funding
                                                include the installation of new infrastructure and the
                                                rehabilitation, expansion, or replacement of existing
                                                infrastructure. Projects may be needed because existing
                                                infrastructure is  deteriorated  or  undersized,  or to
                                                ensure  compliance  with  regulations. Cost estimates
                                                assume comprehensive construction costs including
engineering and design, purchase of raw materials and equipment, construction and installation labor, and
final inspection.
EPA recognizes that there are legitimate and significant water system needs that are not eligible for DWSRP
funding, such as raw water dams and reservoirs, projects related primarily to  population growth, and water
system operation and maintenance costs. However, because the Assessment  is  directly associated with the
allocation of DWSRF capitalization grants, needs ineligible   E^foh ESl. DWINSA Comparison of
                                                      20-Year National Need
  Authority, Purpose, and History

  The 1996 Safe  Drinking Water Act Amendments
  mandated that EPA conduct an assessment of the
  nation's public water systems' infrastructure needs
  every 4 years, and use the findings to allocate
  Drinking Water  State  Revolving Fund (DWSRF)
  capitalization  grants  to states.  The  DWSRF was
  established to help public water systems  obtain
  financing for  improvements  necessary to protect
  public health and  comply  with drinking water
  regulations. From 1997 to  2007, states loaned
  $12.6 billion to water systems for 5,550 projects.
for DWSRP funding are not included in the estimate.
                 5
National Need Compared to Previous
Needs Assessments
EPA conducted three previous Assessments, in 1995, 1999,
and 2003. Exhibit ES.l, which adjusts the findings to 2007
dollars,  shows  the 2007 Assessment's total national need
                                                                       1995
                                                                      $200.4
 1999
$198.2
 2003
$331.4
 2007
$334.8
                                                       The national 20-year need estimate is  reported in billions of
                                                       January 2007 dollars.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
       to be comparable to the 2003 estimate, continuing the success of better capturing longer term needs that
       were underreported in the two earlier surveys. While the 2003  and 2007 efforts share a similar statistical
       approach and total national need findings, the 2007 Assessment employed specific efforts to greatly improve
       the consistency of methods for estimating needs across the states and water systems.

       Individual State Need
       The 2007 Assessment shows significant changes in  some  states' needs from previous Assessments. These
       changes will result in modifications to individual states' DWSRF allotments. While shifts in states' needs can
       be attributed to expected changes in the status of projects from one  survey to the next, some of the shifts in
       the 2007 findings are due to this Assessment's emphasis on improving method consistency across states and
       water systems.

       Regulatory Need
       The findings of the 2007 Assessment indicate that the need associated directly with Safe Drinking Water Act
       (SDWA) regulations remains a small percentage, 16 percent, of the total national need. Most water system
       needs are not directly related to violations of, or compliance with, SDWA regulations. Most needs are ongoing
       investments that systems must make to continue delivering safe drinking water to their customers.

       Small System Need
       For the 2007 Assessment, EPA sent water system professionals to 600 randomly selected small systems to collect
       information about their needs. Small systems were defined  as serving 3,300 persons or fewer. Similar field
       surveys of small water systems were conducted for the 1995 and 1999 Assessments, but the 2003 Assessment
       relied on the results of the 1999 survey adjusted to 2003 dollars. The new field survey of small systems allowed
       for the application of the cost models used to estimate needs of medium and large systems, providing a more
       consistent approach across all system sizes. The 2007 results show a small systems need of $59.4 billion, or 18
       percent of the total national need, a result similar to that of the previous filed survey of these systems.

       Needs of American Indian and Alaskan Native Village Water Systems
       The needs of water systems serving American Indians and Alaskan Native Villages are a small percentage of
       the nation's total need; however, they represent a high need per household. Many water systems for American
       Indian tribes and Alaskan Native Villages are located in remote rural areas or in areas with permafrost. These
       conditions present special challenges for providing drinking water service. The findings presented in this report
       are based on an in-depth survey of these systems conducted in 1999 adjusted to 2007 dollars.

       Water Industry Capital Investment Planning and  Documentation of Needs
       Systems submitted a variety of planning documents and excerpts of documents in support of projects reported
       for the 2007 Assessment. These documents made clear that as our nation's infrastructure continues to age and
       deteriorate, many water systems are using asset management strategies to better understand and address their
       infrastructure rehabilitation and replacement challenges. However, for many other systems, the information
       and documentation provided indicates that a significant gap still exists between information about their
       inventory of infrastructure and their knowledge of that infrastructure's condition or remaining useful life.

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2007  Drinking Water Infrastructure Needs Survey and Assessment
                                                                                       Denver Water
                   A 40-by-60-foot sinkhole on Interstate 25 outside of Denver, Colorado formed after a water main
                   ruptured. The rupture was caused by an emergency pump shutoff that increased pressure from
                   180 psi to 300 psi. The break was repaired within 72 hours.

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Chapter  1:  Findings  -  National  Need
2007 Total National Need
The 20-year national infrastructure need estimated by the
2007 Assessment is $334.8  billion. The breakout of the
national need by system size and type is presented in Exhibit
1.1.

The results were derived from the responses to a probability
sample of approximately 3,250 community water systems1
(CWSs). The results for the not-for-profit noncommunity
water  systems2  (NPNCWSs) and  American  Indian  and
Alaskan Native Village water systems were extrapolated from
a similar assessment conducted in 1999. The total national
need also includes the costs associated with meeting recently
proposed or promulgated regulations that are too new to be a
consideration in water systems' investment plans; those costs
are derived from EPA's economic analyses (EAs) supporting
each regulation.

The need reported in the Assessment includes projects for
expanding, replacing, or rehabilitating existing infrastructure.
Exhibit 1.1: Total National 20-Year Need
(in billions of January 2007 dollars)
^pMmMMJMtflJHpi
Large Community Water Systems*
(serving over 100,000 persons)
Medium Community Water Systems*
(serving 3,301- 100, 000 persons)
Small Community Water Systems
(serving 3,300 and fewer persons)
Not-for-Profit Noncommunity Water Systems1
Total State Need
American Indian and Alaskan Native Village
Water Systems1
Costs Associated with Proposed and Recently
Promulgated Regulations
Total National Need
$116.3
$145.1
$59.4
$4.1
$324.9
$2.9
$7.0
$334.8
Note: Numbers may not total due to rounding.
* "Large" and "medium" systems are defined differently for this
Assessment than previous Assessments. See Appendix A for
more information.
f Based on 1999 Assessment findings adjusted to 2007
dollars.
                                                                          Montana Department of Environmental Quality
Construction at the Fort Peck-Dry Prairie Regional Water System in northwest Montana.
1 A community water system is a public water system that serves at least 15 connections used by year-round residents or
that regularly serves at least 25 residents year-round. Cities, towns, and small communities such as retirement homes are
examples of community water systems.
2 A noncommunity water system is a public water system that is not a community water system and that serves a
nonresidential population of at least 25 individuals daily for at least 60 days of the year. Schools and churches are examples
of noncommunity water systems.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                         It also includes projects to construct new infrastructure in order to preserve the physical
                         integrity of water systems and to convey drinking water to existing residential, commercial,
                         and  industrial  customers. Projects vary  greatly in  scale,  complexity,  and  cost—from
                         rehabilitating a small storage tank, to replacing an entire treatment plant, to constructing a
                         high-capacity pipeline.

                         The results presented in this report will determine the allocation of DWSRF capitalization
                         grants for federal fiscal years 2010 through 2013.  Therefore, the  need does not include
                         projects that are ineligible for DWSRF funding. A summary of the types of projects included
                         in the Assessment, as well as specific unallowable  projects,  is presented in Appendix  B.
                         EPA recognizes that  projects not  eligible  for DWSRF  funding can be significant, if not
                         critical, water system needs, but they are outside the scope of this Assessment. In addition,
                         the Assessment does  not seek to  capture information on the financing alternatives being
                         pursued or considered by systems for individual projects. The DWSRF is in fact intended as
                         a supplement to, not a replacement for funding by states, localities,  and rate payers.

                         The approach and methodologies for discerning needs are further detailed in Appendix A.
                         The specific project allowability criteria  are discussed in Appendix B.
            The $334.8 billion represents the need associated with thousands of miles of pipe, thousands of treatment plant
            and source projects, and billions of gallons of storage. Investments in water systems not only provide assurances
            of continued delivery of safe drinking water to our homes, schools, and places of business, they are key to local
            economies across our nation.
            As stated in a recent report by the U.S. Conference of Mayors:
                "The estimates exhibit a wide  range, but the consensus is that public infrastructure  investment yields
                positive returns, and investment in water and sewer infrastructure has greater returns than most other types
                of public infrastructure.
                    •  A recent study estimates that one dollar of water and sewer infrastructure investment increases
                       private output (Gross Domestic Product, GDP) in the long-term by $6.35.
                    •  With respectto annual general revenue and spending on operatingand maintainingwater and sewer
                       systems, the US Department of Commerce's Bureau of Economic Analysis estimates that for each
                       additional dollar of revenue (or the economic value of the output) of the water and sewer industry,
                       the increase in revenue  (economic output) that occurs in all industries is $2.62 in that year.
                    •  The same analysis estimates that adding Ijob in water and sewer creates 3.68 jobs in the national
                       economy to support that job."

            The U.S. Conference of Mayors. Local Government Investment in Municipal Water And Sewer Infrastructure: Adding Value To The National
            Economy. Richard A. Krop, Ph.D., Charles Hernick, and Christopher Frantz. The Cadmus Group, Inc. August 14, 2008.
            Additional Source:
            Pereira, A.M. "Is all public capital created equal?" Review of Economics and Statistics, 82:3 (2000): 513-518.

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                                                                               Findings - National Need
2007 Total National                     to EPA's Previous
Assessments
The 2007 total national need of $334.8 billion is comparable to the 2003
estimate of $331.4 billion (as adjusted to 2007 dollars), continuing the earlier
Assessment's success in better capturing previously underreported longer term
needs for infrastructure rehabilitation and replacement. Both the 2003 and
2007 Assessments clearly point to the nation's water systems having entered a
"rehabilitation and replacement era" in which much of water utilities' existing
infrastructure has reached or is approaching the end of its useful life.

Exhibit 1.2 compares the need from this Assessment to past Assessments. Cost
indices were used to adjust previous  needs to the 2007 Assessment's month
and year. Although there are numerous cost indices available, EPA used the
Construction Cost Index  (CCI) compiled by McGraw Hill  Construction
because it includes adjustments for labor rates as well as the cost of materials. It
is worth noting that the CCI shows a cost increase of approximately 3 percent
per year from 1995 through 2003, but an approximately 5 percent increase per
year from 2003 through 2007.

While the 2007 Assessment  shares a similar approach  and total national
finding with the 2003 Assessment, the results of this most recent effort were
derived from survey policies purposefully designed to ensure more consistent
application of need-estimating  methodologies across  all states  and  water
systems. These 2007 Assessment policies, including required documentation
to support survey acceptance of projects, are detailed in Appendix C.
www.iStockphoto.com
Exhibit 1.2: Total National 20-Year Need Comparison to Previous
DWINSA Findings (in billions of dollars)

Total National Need (as listed in
Assessment Year's Report to Congress)
Cost adjustment factor to January 2007
dollars (based on Construction Cost
Index)
Total National Need (adjusted to
January 2007 dollars)
pi '%*_&?£%>*
WaaWW*.** 	
$138.4
44.8%
$200.4
	 t'ifrtl"™
$150.9
31.3%
$198.2
	
$276.8
19.7%
$331.4
	 jCflVft-:;
$334.8
-
$334.8

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                         Exhibit 1.3 compares the EPA Assessments  to  other important  assessment efforts.  All
                         estimates are presented in 2007 dollars. EPA's DWINSA continues to estimate a need within
                         the range identified in these reports:

                            •   The Congressional Budget Office (CBO) report "Future Investment in Drinking
                                Water and Wastewater Infrastructure," which estimates annual water system needs
                                of $14.6 billion to $25.2 billion. This extrapolates to a 20-year need in the range of
                                $292 to $504 billion.3
                            •   EPA's "Clean Water and Drinking Water Infrastructure Gap Analysis," which
                                estimated drinking water systems' 20-year capital needs in the range of $204
                                billion to $590 billion with a point estimate of $363 billion.4
                            •   The Water Infrastructure Network's (WIN's) "Clean and Safe Water for the
                                21st Century - A Renewed National Commitment to Water and Wastewater
                                Infrastructure," which estimates water system needs of $25 billion annually. This
                                extrapolates to $503 billion over 20 years.5
                         Exhibit 1.3: Total 20-Year Need Comparison to Other Assessments
                                                                      $292 to $504
                                                                      CBO Estimate

                                                                     $204 to $590
                                         $198   $200
                                        EPA '95 and '99
                                         Assessments
          Gap Analysis

 $331   $335
EPA '03 and '07
 Assessments
                                                              $503
                                                          WIN Estimate
    $100         $200        $300
Estimates in billions of January 2007 dollars
                                                                        $400
$500
                                         $600
                         3 Congressional Budget Office, "Future Investment in Drinking Water and Wastewater Infrastructure," (November 2002),
                         p. ix. Needs were reported in 2001 dollars and have been adjusted to January 2007 dollars for comparison purposes.
                         4 U.S. Environmental Protection Agency, "Clean Water and Drinking Water Infrastructure Gap Analysis," (September
                         2002), p. 5. Needs were assumed to be in 1999 dollars based on the date of the report and planning period used. Needs
                         have been adjusted to January 2007 dollars for comparison purposes.
                         5 Water Infrastructure Network, "Clean and Safe Water for the 21st Century - A Renewed National Commitment to
                         Water and Wastewater Infrastructure," (undated), p. 3-1. Needs were assumed to be in 1999 dollars based on the planning
                         period and data used. Needs have been adjusted to January 2007 dollars for comparison purposes.

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                                                                              Findings - National Need
Total National Need by Project Type
Infrastructure needs of water systems can be grouped
into four major categories based on project type. These
project types are source, transmission and distribution,
treatment,  and  storage.  Each  category fulfills  an
important function in delivering  safe drinking water
to the public. Most needs were assigned to one of these
categories. An additional "other" category is composed
of projects that do not fit into one of the four categories.
Exhibit 1.4 shows the total national need by  project
type. Exhibit 1.5 shows the total national need by water
system size and type, as well as by project type.
Exhibit 1.4: Total 20-Year Need by Project Type
(in billions of January 2007 dollars)
 Total National Need
   $334.8 Billion
Treatment
  $75.1
 Transmission
and Distribution
    $200.8
                                                               Note: Numbers may not total due to rounding.
Exhibit 1.5: Total 20-Year Need by System Size and Type and Project Type (in billions of
January 2007 dollars)

uisinouiion
System Size and Type and
Transmission
Large Community Water
Systems (serving over
100,000 persons)*
Medium Community Water
Systems (serving 3,301 to
100,000 persons)*
Small Community Water
Systems (serving 3,300
and fewer persons)
Not-for-Profit
Noncommunity Water
Systems1
Total State Need
American Indian and
Alaskan Native Village
Water Systems1
Costs Associated with
Proposed and Recently
Promulgated Regulations
(taken from EPA economic
analyses)
Total National Need
$72.5
$91.5
$34.7
$0.5
$199.2
$1.6

$200.8
Treatment
$26.6
$29.8
$10.3
$0.8
$67.6
$0.6
$7.0
$75.1
Storage
$9.9
$15.9
$8.5
$1.9
$36.3
$0.6

$36.9
Source
$6.5
$7.1
$5.2
$0.8
$19.6
$0.2

$19.8

Other
$0.9
$0.8
$0.6
$0.0
$2.3
$0.0

$2.3
Total Need
$116.3
$145.1
$59.4
$4.1
$324.9
$2.9
$7.0
$334.8
Note: Numbers may not total due to rounding.
* "Large" and "medium" community water systems are defined differently for this Assessment than in previous Assessments. See Appendix
A for more information.
f Based on 1999 Assessment findings adjusted to 2007 dollars.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                        Transmission and distribution projects are the largest category of need at $200.8 billion over
                        the next 20 years (60 percent of the total  need). Although the least visible component of a
                        public water system, the buried pipes of a transmission and distribution network generally
                        account for most  of a  system's capital  value. Even small rural systems  may have several
                        hundred miles of pipe. In larger cities, replacement or rehabilitation of even small segments
                        of the extensive underground networks of water supply pipes can be costly, both from
                        the perspective of the cost of construction and the costs related to disruption to the city's
                        commerce. Regardless of water system size, projects dealing with water mains and related
                        infrastructure present challenges. Pipe  projects are typically driven by a utility's need to
                        continue providing potable water to  its customers while preventing contamination of the
                        water prior to delivery.

                        The majority of this $200.8 billion need is for replacing or refurbishing aging or deteriorating
                        transmission and  distribution mains. These projects are  critical to the delivery of safe
                        drinking water and can help ensure compliance with many regulatory requirements. Failures
                        in transmission and distribution lines can  interrupt the delivery of water and possibly allow
                        contamination of the water.

                        The rate at which  water mains require replacement or rehabilitation varies greatly by pipe
                        material, age of the pipe, soil characteristics, weather conditions, and construction methods.
                        Systems that have been unable to rehabilitate or replace mains may have proportionally more
                        aged infrastructure, and therefore a higher level of need. In addition, some pipe materials
                        tend to  degrade prematurely; galvanized pipe is particularly susceptible to corrosion in
                        certain soils, and unlined cast iron pipe is susceptible to internal corrosion.  Furthermore,
                        health concerns associated  with  asbestos during pipe repair make asbestos cement pipe
                                                         undesirable  for  some  systems.  Many water suppliers
                                                         are replacing these types of mains with ductile iron or
                                                         polyvinyl chloride  pipe.

                                                         Other  projects  in the  transmission  and distribution
                                                         category are; installing new pipe to loop dead end mains
                                                         to avoid stagnant water,  installing water mains in areas
                                                         where  existing homes do not have a safe  and adequate
                                                         water supply, and  installing or rehabilitating pumping
                                                         stations to maintain adequate pressure.  This category
                                                         also  includes projects  to address the replacement  of
                                                         appurtenances, such  as valves  that  are essential  for
                                                         controlling  flows  and  isolating problem areas during
                                                         repairs, hydrants  to flush the  distribution  system  to
                                                         maintain water quality,  backflow-prevention devices to
                                      Ray Kvalheim, EPA Region 2                   i    J            i
Minerals can build up in old water mains, leading  to pressure and   avoid contamination, and meters to record  flow and
bacteriological problems. Pipe can be replaced, or it can be rehabilitated   Water consumption
using a "pig" to scour the inside of the pipe and remove the deposits.
6

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                                                                                    Findings - National Need
                                                     It
The  total  20-year national  need for  treatment is
estimated to be $75.1 billion. This category includes
the  construction, expansion,  and rehabilitation  of
infrastructure to reduce contamination through various
treatment  processes   (e.g.,   filtration,  disinfection,
corrosion control). A large percentage of the regulatory
need is  in this category.  Treatment facilities  vary
significantly depending on the quality of their source
water and  type of contamination present. Treatment
systems range from a simple chlorinator for disinfection
to a  complete  conventional  treatment  system  with
coagulation  and  flocculation  (processes  that  cause
particles  suspended in the water to combine for easier
removal),  sedimentation,   filtration,   disinfection,
laboratory  facilities,  waste  handling,  and computer
automated monitoring and control devices.

Treatment technologies are used to remove or inactivate
disease-causing organisms, or to remove or prevent the
formation of harmful chemicals.
The  treatment  category also includes  projects  to
remove contaminants that adversely affect the taste,
odor, and color of drinking water. Treatment for these
"secondary  contaminants"  often involves softening
the water to reduce magnesium and calcium levels, or
applying chemical sequestrants for iron or manganese
contamination.   Although   not  a   public  health
concern, the aesthetic problems caused by secondary
contaminants may  prompt  some consumers to  seek
more palatable, but less safe or affordable sources of water.



The total 20-year national need for source water infrastructure is estimated at $19.8 billion.
The source category includes needs for constructing or rehabilitating surface water intake
structures, drilled wells, and spring collectors. Needs for dams and raw water reservoirs are
excluded from DWSRF funding and this Assessment.

Drinking water comes from either ground water or surface water sources.  Wells typically
are considered ground water sources. Rivers, lakes, other open bodies of water, and wells
under the direct influence of surface water are considered surface water sources. Whether
drinking water originates from ground or surface water sources, its raw water quality is an
                                                                   Top photo: Jeanne Cargill, Wisconsin Department of Natural Resources
                                                                                   Bottom photo: Charles Pycha, EPA Region 5
                                                     Membrane technologies continue to advance  as a viable treatment
                                                     alternative as systems strive to produce higher quality finished water.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
  Drought

  An emerging need encountered  in the 2007  Assessment
  is new source water infrastructure to offset existing and
  anticipated  drought conditions. In the past several years,
  water systems across the United States have been adversely
  affected by drought. Because drought is  not always long-
  term or permanent, the DWSRF-eligibility of projects based
  on speculated continuation  of the drought condition was
  not clear. EPA does not question that water systems are
  being affected by drought conditions. However,  only a small
  percentage  of the systems participating in the  Assessment
  have completed  plans  to address  the  drought  impacts.
  When documentation was lacking or nonexistent, EPA had to
  decide  whether a speculative permanent solution or a less
  costly temporary solution should be considered  for inclusion
  in the Assessment. EPA also investigated the drought-related
  projects to  ensure  they were primarily to provide drinking
  water to existing consumers and  not for  projected growth
  demand. EPA believes the drought-related needs reported in
  the 2007 Assessment capture a small portion of the drought-
  related need water utilities may face in the future.
        Jim McRight, North Carolina Department of Environment and Natural Resources
Construction of a 2 million gallon clearwell at the new water treatment
plant west of Kinston, North Carolina, funded partially by the DWSRF.
important component in protecting public health. A
high-quality water supply can minimize the possibility
of microbial or chemical contamination and may not
require extensive  treatment facilities. Many source
water needs involve construction of new surface water
intake structures or drilling new wells to obtain higher
quality raw water.

A water source should provide an  adequate supply
to enable the water  system to maintain  minimum
pressures. Low water  pressure  may result  in the
intrusion of contaminants  into  the  distribution
system. The 2007 Assessment includes  projects to
expand the capacity of intake structures and add new
wells to  address  supply  deficiencies facing existing
customers.



The  20-year  national  need  estimated  for  storage
projects  is  $36.9  billion.  This  category includes
projects to  construct, rehabilitate,  or cover finished
water  storage tanks,  but it excludes dams and raw
water reservoirs (unless the raw water basins are onsite
and  part of the treatment process)  because they  are
specifically  excluded from  DWSRF  funding.  It is
critical that water systems have sufficient storage to
provide adequate supplies of treated water to the public,
particularly during  periods  of peak  demand.  This
storage enables the system to maintain the minimum
pressure required throughout the distribution system
to prevent  the intrusion of contaminants into the
distribution network.

Otter
Needs not included in the previous four categories are
grouped as "other" needs. These needs account for $2.3
billion of the total 20-year national need. Examples of
"other" projects are system-wide telemetry, supervisory
control and data acquisition (SCADA) systems, and
water system security measures that were not assigned
to another category.
8

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                                                                                     Findings - National Need
Need by System Size

Exhibit 1.6 shows the relationship between infrastructure need, population served, and the
number of community water systems by size category. As this exhibit demonstrates, large
systems account for a small portion of the  number of community water systems in the
country, but they serve 45 percent of the population receiving water from community water
systems and account for 36 percent of the drinking water infrastructure investment need.
Small systems cannot take advantage of economies-of-scale like large systems and so have
higher costs per customer. Small systems represent, by far, the largest number of systems,
but they account for only 9 percent of the population served. In addition, in relation to
population served, they account for a disproportionate 19 percent of the community water
system need. Medium systems represent the largest portion  of the need, and their need is
more proportional to the population served.
Exhibit 1.6: Community Water System 20-Year Need by Size and Population*
 Large Community Water Systems
 (servingover 100,000 persons)**
$116.3
36%
   584
 1%
128.6
45%
 Medium Community Water
 Systems (serving 3,301 to
 100,000 persons)**
$145.1
45%
 8,749
17%
130.7
46%
 Small Community Water Systems
 (serving 3,300 and fewer
 persons)
 $59.4
19%
41,748
82%
 24.1
 9%
 Note: Numbers may not total due to rounding.
 * This exhibit reports the need for community water systems. It does not discuss findings for not-for-profit noncommunity systems, needs
 associated with proposed or recently promulgated regulations, or needs for American Indian or Alaskan Native Village water systems.
 f Need reported in billions of January 2007 dollars.
 t Based on the DWINSA sample frame as discussed in Appendix A of this report.
 § Data on population served from EPA's Factoid: Drinking Water and Ground Water Statistics for 2007. EPA 816-K-07-004. March 2008. Does
 not include populations for systems defined as "Federal Systems" or "Native American,"  but does include populations served by Alaskan
 Native Village water systems. Factoid distinguished system sizes for "very small," "small," "medium," "large," and "very large," allowing direct
 comparisons to system size in the Assessment.
 ** "Large" and "medium" community water systems are defined differently for this Assessment than in previous Assessments. See Appendix
 A for more information.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
Exhibit 1.7: Total Regulatory vs. Non-
Regulatory 20-Year Need (in billions of January
2007 dollars)
                                 Needs Associated with SDWA
                                 Regulations
 Total National Need
   $334.8 Billion
 Non-Regulatory
    $282.8
                                            Regulatory
                                             $52.0
            Note: Numbers may not total due to rounding.
                                 As shown in Exhibit 1.7, 16  percent of the total
                                 national need, $52.0 billion, is for compliance with
                                 the SDWA regulations. This need includes existing
                                 regulations as well as regulations which are proposed
                                 or recently promulgated (see below). Although all of
                                 the projects in the Assessment are needed to further the
                                 goals of the SDWA, most needs are not for obtaining
                                 or maintaining compliance with a specific regulation.
                                 Most  infrastructure projects are needed to ensure
                                 continued provision  of potable water to a  utility's
                                 customers. Projects that are directly attributable to
                                 specific SDWA regulations are collectively referred to
as the "regulatory need." Most of the regulatory need involves the upgrade, replacement, or
installation of treatment technologies.

The Assessment divides the regulatory need in several ways: existing regulations, proposed
and recently promulgated regulations, and microbial or chemical regulations. Exhibit 1.8
provides a matrix of the regulatory needs by these categories.

Existing Regulations

  Microbial Contaminants.
  The surface water treatment regulations (Surface Water Treatment Rule, Interim Enhanced
  Surface Water Treatment Rule, Filter Backwash Recycling Rule, Long Term 1 Enhanced
  Surface Water Treatment Rule, and covers for finished water reservoirs required by the Long
  Term 2 Enhanced Surface Water Treatment Rule) and the Total Coliform Rule are existing
  SDWA regulations that address microbial contamination. Treatment requirements for the
  Long Term 2 Enhanced Surface Water Treatment Rule are included in the proposed and
  recently promulgated  regulation need. Stage  1  Disinfectants/Disinfection Byproducts
                                Exhibit 1.8: Total 20-Year National Regulatory Need (in billions
                                of January 2007 dollars)
_,„... _ Microbial Chemical Total Regulatory
Regulation Type _ „ , .. „-,•*• ., _,
** Regulations Regulations Need
Existing Regulations
Proposed or Recently
Promulgated Regulations
Total Regulatory Need
$29.4
$3.6
$33.0
$15.6
$3.3
$19.0
$45.0
$7.0
$52.0
Note: Numbers may not total due to rounding.
10

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                                                                            Findings - National Need
                                            Rule regulates the maximum  disinfectant
                                            and  disinfection  byproducts   levels   in
                                            distribution  systems  and  is   commonly
                                            grouped with the microbial rules.

                                            Projects  for  compliance  with  existing
                                            regulations were reported by systems in the
                                            Assessment and account for more than half
                                            of the total regulatory need and almost all
                                            of the microbial contaminant-related need.
                                            This reflects the fact that the majority of the
                                            nation's large municipal systems use surface
                                            water sources. Under all of these regulations,
                                            systems using  surface water sources must
                                            provide treatment to minimize microbial
                                            contamination. In most  cases,  this  means
                                            installing,  upgrading,  or  rehabilitating
                                            treatment plants to control pathogens, such
                                            as the bacterium E. coli,  the virus Hepatitis
                                            A, and the protozoans Giardia  lamblia and
                                            Cryptosporidium.   Disinfection   also helps
                                            protect  the  system from Total Coliform
                                            Rule violations.

                                            Chemical Contaminants.
                                            This estimate includes projects  attributable
                                            to   the  Nitrate/Nitrite  Standard,   the
                                            revised Arsenic Standard,  the Lead  and
                                            Copper Rule,  and other regulations  that
                                            set maximum  contaminant levels (MCLs)
                                            or treatment techniques for  organic  and
  inorganic chemicals. Examples of projects are, infrastructure that aerates water to remove
  volatile organic compounds such as tetrachloroethylene, or ion exchange units that remove
  contaminants from the water. This category includes regulations governing more than 80
  inorganic or organic chemicals for which infrastructure projects may be needed.

Proposed or Recently Promulgated Regulatory Needs
In general, water systems can readily identify the infrastructure needs required for compliance
with existing regulations, but most systems have not determined the infrastructure needed
to comply with proposed or recently promulgated regulations. Therefore, relying on systems
to report the infrastructure needs for proposed or recently promulgated regulations might
Assigning Arsenic Needs for Small
Systems in the 2007 DWINSA

In January 2001, EPA revised the arsenic standard
to a maximum contaminant level (MCL) of 10 |Jg/L.
Systems that cannot meet the revised  MCL may
have capital improvement needs to address arsenic
in their source water. The 2007 DWINSA requested
that systems identify their needs associated with
the revised arsenic standard on their surveys.
Because the sample of small systems is  a national
sample, and because of the non-uniform distribution
of  arsenic throughout the country, the DWINSA
workgroup was concerned that the findings of the
small system survey would not be representative
of specific states' need. In short, states  with more
arsenic problems should be assigned a higher small
system "arsenic need."
To  account for these needs, EPA took a threefold
approach.
   •  First,  small  systems with  arsenic-related
     needs were identified. EPA used the national
     water system database (SDWIS) and enlisted
     the help of states to determine which small
     systems will have to address the  revised
     arsenic standard.
   •  Second, a "need" associated with addressing
     the high arsenic levels  was estimated for
     individual small systems based on information
     provided by the states and the DWINSA cost
     models.
   •  Third, these two factors were used to calculate
     each state's total need for small systems to
     address the revised arsenic standard.
                                                                                                  11

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                Montana Department of Environmental Quality
To meet the Long Term 2 Enhanced Surface Water
Treatment Rule, systems may need to provide additional
disinfection infrastructure. This ozone contact chamber is
an example of a type of disinfection that may be applied.
Treatment needs for recently promulgated  regulations
were estimated separate  from  the states'  surveys,
through EAs.
misstate  the  true  need. Consequently, EPA  derived  the  capital
infrastructure estimates from the EA that the Agency published when
proposing each regulation, or from the final EA if the regulation has
been recently promulgated.

However, since the EAs rely on regional data, they are not appropriate
predictors of state-specific needs. Therefore, the costs associated with
the proposed or recently promulgated regulations are allocated at a
national level, not apportioned to each state.

The proposed or recently promulgated regulations included in the
2007 Assessment are:

        •  Proposed Radon Rule
        •  Final Stage 2 Disinfectants/Disinfection Byproducts
           Rule
        •  Final Long Term 2 Enhanced Surface Water Treatment
           Rule (treatment needs only)
        •  Final Ground Water Rule
The total cost of complying with these regulations is included in
the 2007 Assessment as future regulatory needs.  The capital cost
estimates for each of these rules are provided in Exhibit 1.9.
                        Exhibit 1.9: Total National 20-Year Need for Proposed and Recently
                        Promulgated Regulations (in billions of January 2007 dollars)

Long Term 2 Enhanced Surface Water Treatment Rule
Stage 2 Disinfectants/Disinfection Byproducts Rule
Ground Water Rule
Radon Rulef
Total Proposed or Recently Promulgated Regulatory
Need
$2.2
$1.0
$0.4
$3.3
$7.0
* Estimates obtained from the appropriate Final or Proposed Rule "Economic Analysis." These estimates
include only capital costs (i.e., they exclude operation and maintenance costs).
f The total capital costs were determined by averaging the capital costs from the Economic Analysis for the
proposed Radon Rule.
12

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                                                                                   Findings - National Need
Security Needs
Vulnerability assessments  and the identification of security needs
for water systems are  rapidly evolving. Since the September 11,
2001 attacks, there has been a concentrated national focus on our
vulnerabilities,  and water systems  are no exception. The Public
Health Security and Bioterrorism Preparedness and Response Act of
2002 requires any community water system that serves a population
of more than 3,300 to prepare a vulnerability assessment. For many
water systems, particularly the large systems,  security measures have
become fully integrated into  the capital costs  of major infrastructure
improvements.

Projects  in  the  2007  Assessment that were specifically listed as
security need account for $422.0 million. However,  the total cost
that systems incur to protect their infrastructure and their customers'
water quality is likely far greater because many of these costs are now
commonly incorporated into the construction cost of infrastructure
projects rather than considered separately.  The majority of security
needs are mostly "hidden"  in  the other  needs  reported by  this
Assessment.

Exhibit 1.10 shows the breakdown of the stand-alone security needs
by type of project, including fencing, electronic or cyber security,
other physical security measures, monitoring equipment, and other
projects listed as having multiple types of security needs. Note that
these categories  are slightly different  from  those reported in the
2003 Assessment. They were changed to align  with the categories
now used within the water supply industry.
                                   EPA Region 9
Storage tanks are equipped with caged ladders for safety
and are secured to deter trespassers.
                                                    Exhibit 1.10: Total National 20-Year Security
                                                    Needs (in millions of January 2007 dollars)
                                                      Total Security Need
                                                        $422.0 Million
                          Fencing
                          $80.2
                                                     Combination
                                                     Projects and
                                                        Other
                                                       $220.6
                                                                                                 Other
                                                                                                Physical
                                                                                                 $39.9
                               Electronic/
                                 Cyber
                                 $64.8
                                                                                        Monitoring
                                                                                          $16.5
                                                               Note: Numbers may not total due to rounding.
                                                                                                         13

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Exhibit 1.11: Total 20-Year American Indian
and Alaskan Native Village Water System Need
by Project Type (in millions of January 2007
dollars)
           American Indian Water System Need*
                                    Treatment
                                     $235.5
 Transmission
    and
 Distribution
   $976.3
Source
$105.2
 Other
 $15.3

Storage
$180.4
        Alaskan Native Village Water System Need*
                                      Treatment
 Transmission
     and
  Distribution
    $636.9
                                       $300.4
  Source
  $56.6
American Indian and Alaskan Native
Village Water System Needs

Because of the effort invested in the 1999 Assessment and
the high confidence level in the data from that effort, EPA
did not resurvey the American Indian and Alaskan Native
Village water systems for the  2007 Assessment. Instead,
the need established in 1999 was adjusted to 2007 dollars
and used as an estimate for the 2007 need. Accordingly,
the American Indian and Alaskan Native Village water
systems need to invest an estimated $2.9 billion in capital
improvements over the next 20 years.

The total 20-year need for American Indian water systems
is $1.5 billion. The total 20-year need for Alaskan Native
Village water systems is  $1.4 billion. These estimates do
not include the need associated with the revised Arsenic
Standard. Exhibit 1.11 shows the total American Indian
and Alaskan Native Village water system need by project
type.
                                       Storage
                                       $406.7
                                       :t>4-ui

           Note: Numbers may not total due to rounding.

           *These numbers do not include the need associated
           with the Arsenic Rule.
                                                                            Alaska Department of Environmental Conservation
     Residents fill up at a coin-operated watering point in Tuluksak, Alaska. The terrain and permafrost conditions require above-ground pipes
     in some parts of the state.

-------
The  remote  locations  of many  widely dispersed
communities  and the limited  availability of water
resources are among the  logistical  challenges  that
account for the high per-household need of American
Indian water systems.

The need for Alaskan Native Village water  systems
differs from more typical community water systems in
that costs for storage in Alaskan Native Village water
systems exceed those for treatment needs. These water
systems face higher costs because of their remote arctic
locations and the  unique  design  and construction
standards required in permafrost conditions.

Exhibit 1.12 presents the American Indian and Alaskan
Native Village water system need by EPA Region.
Exhibit 1.12: 20-Year American Indian and
Alaskan Native Village Water System Need by
EPA Region (in millions of January 2007 dollars)
                             Total American
                               and Alaskan Native

                                      Need
Region 1
Region 2
Region 3*
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9f
Region 10*
Alaskan Native Systems
Need to Comply with the Revised
Arsenic Standard
Total
$5.2
$7.9
$0.0
$23.4
$206.6
$199.5
$18.8
$175.1
$720.8
$155.4
$1,401.6
$17.6
$2,931.8
* There are no American Indian water systems in EPA Region 3.
f Navajo water systems are located in EPA Regions 6, 8, and 9, but for
purposes of this report, all Navajo water system needs are reported in
EPA Region 9.
t Needs for Alaskan Native Village water systems are not included in the
EPA Region 10 total.




                                                                                         EPA Region 9
A well pump house and storage tank at a small water system in Arizona.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                     f
                                                                     California Department of Health Services
                   Construction of a 0.75 million gallon storage tank in Herman, California.
16

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Chapter  2:  Findings - State  Need
State-Specific Needs
Since federal fiscal year 1998, the SDWA has required
EPA to allot DWSRF grants to each state based on the
findings of the most recent DWINSA. Because of this
Assessment's role in determining DWSRF capitalization
grant  allocations,   obtaining  highly credible  and
statistically valid estimates of each state's need is crucial.
Exhibits 2.1 and 2.2 show the total DWSRF-eligible
need for states, Puerto Rico, Washington,  D.C., and
the U.S. Territories by project type and system size.
Exhibit 2.3 is a map indicating each state's 20-year total
need.

DWSRF capitalization grants  for fiscal years 2010
through  2013  will be allocated  to  states  based  on
the findings of the 2007 Assessment.  The  funding is
allocated by first setting aside a 1.5 percent allotment
to  American  Indian  and Alaskan   Native Village
water systems and a  0.33 percent allotment to the
U.S. Territories (the U.S. Virgin  Islands, Guam, the
Commonwealth of the Northern Mariana Islands, and
American Samoa); the Assessment findings are  used
to help divide  these set-asides among these entities.
The remaining funds  are then  divided among the
states, Puerto Rico, and Washington,  D.C. based  on
the Assessment's determination of each state's relative
percentage of the total "state need" with each receiving
no less than the 1 percent minimum allotment.

States that received the minimum allocation of 1 percent
in the most recent allocation were given the option of
a lower level of participation in the Assessment. These
states' needs are reported as one  group referred to as
"partially surveyed" states. This  option  is  explained
later in this chapter.

The state need does not include costs  associated with
proposed or recently promulgated regulations or the
need of American  Indian or Alaskan Native Village
water systems.
  Partnership for Determining State Need

  The substantial effort  involved  in  collecting data and
  calculating water  systems'  20-year  needs  relies  on a
  partnership between  EPA, the states,  and the  utilities
  themselves. Each partner makes  a  valuable contribution
  to estimating the DWSRF-eligible needs of drinking water
  systems.
  Water System. Operators and managers of water utilities have
  on-the-ground knowledge of their system's infrastructure and
  condition. These personnel are in the best position to assess
  their infrastructure needs.
  States. State personnel often have considerable knowledge
  of the systems in their state, and states have staffs whose
  members are trained  to assist systems in completing this
  Assessment. The states work with  EPA towards consensus
  development of Assessment policies and methods to ensure
  consistency across the states.
  EPA. EPA's primary  roles are to serve as  the  quality
  assurance agent for the data collection effort, to ensure that
  survey policies and methodologies are met, and to serve as
  a technical resource to assist with  capturing complete and
  accurate 20-year needs. EPA provides checks and balances
  for survey submittals to encourage full reporting, to ensure
  consistency and fairness between states, and to control any
  state bias.
                   Jeanne Cargill, Wisconsin Department of Natural Resources
This new microfiltration plant in Ash/and, Wisconsin replaced a treatment
plant that was over 100 years old.
                                                                                                      17

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2007 Drinking Water Infrastructure Needs Survey and Assessment
Exhibit 2.1: State 20-Year Need Reported by Project Type (in millions of January 2007 dollars)
•X xfie
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
District of Columbia
Florida
Georgia
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Nebraska
Nevada
New Jersey
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
South Carolina
Tennessee
Texas
Virginia
Washington
Wisconsin
Partially Surveyed States*
Subtotal
American Samoa
Guam
Commonwealth of the
Northern Mariana Islands
U.S. Virgin Islands
Subtotal
Total State Need
'm.'irrymvvj'i.irv1
trftiiltoiifcu!
$3,343.9
$478.2
$3,819.0
$3,667.5
$22,988.5
$3,156.7
$807.1
$836.8
$7,234.9
$6,295.6
$8,982.0
$3,814.2
$4,356.8
$2,784.4
$3,643.6
$5,100.7
$3,497.6
$4,456.4
$7,657.6
$2,819.3
$1,604.4
$4,801.8
$1,017.7
$1,116.4
$4,722.9
$15,417.0
$6,037.1
$8,374.2
$2,603.5
$1,520.6
$7,644.9
$1,079.5
$1,102.7
$2,356.3
$15,950.2
$3,806.3
$5,765.5
$3,550.5
$10,478.1
$198,690.3
$43.7
$223.6
$123.2
$138.3
$528.8
$199,219.1
:•';$£ r;:*\<
$71.6
$56.4
$460.3
$149.3
$2,515.3
$371.7
$134.9
$0.0
$887.3
$406.2
$1,576.3
$353.8
$271.9
$187.1
$121.7
$305.7
$180.6
$340.9
$529.6
$372.0
$284.7
$324.7
$140.5
$892.3
$307.1
$1,915.5
$670.7
$564.2
$142.0
$156.3
$557.1
$80.6
$75.2
$109.2
$1,600.3
$196.0
$717.3
$385.1
$1,131.1
$19,542.3
$10.6
$2.0
$28.7
$7.1
$48.4
$19,590.7
- r L •-'--!"•', ->, ., "V !
.Lf' V.billlk il)!.
$386.5
$121.3
$2,150.2
$966.0
$7,549.7
$2,150.2
$280.6
$0.4
$3,552.1
$1,390.5
$2,907.8
$1,096.1
$990.8
$684.1
$699.0
$1,024.8
$1,134.5
$1,130.1
$2,548.5
$1,982.9
$907.2
$1,281.2
$309.2
$202.2
$1,850.4
$6,986.2
$2,237.7
$2,235.6
$858.9
$546.1
$1,834.5
$1,037.4
$222.3
$692.8
$5,785.2
$1,293.3
$1,580.0
$1,467.5
$3,347.3
$67,421.3
$15.9
$8.6
$61.8
$45.9
$132.2
$67,553.5
•••viSl/TtT" -.'
$285.3
$150.0
$900.1
$478.3
$5,735.6
$696.7
$151.6
$35.5
$975.4
$751.5
$1,386.7
$648.5
$467.2
$339.7
$474.8
$427.4
$606.0
$823.4
$1,035.8
$770.3
$429.8
$635.7
$300.8
$460.6
$1,056.7
$2,707.8
$1,032.7
$1,330.4
$493.5
$536.0
$1,284.2
$325.2
$210.2
$368.0
$2,695.8
$722.8
$1,502.7
$758.7
$2,099.5
$36,091.3
$22.0
$29.7
$65.8
$59.8
$177.2
$36,268.5
'•"ti.r-i;
$12.0
$6.5
$81.1
$17.4
$257.3
$24.8
$19.7
$1.5
$173.5
$93.9
$164.2
$31.8
$26.4
$35.0
$38.9
$41.3
$24.7
$39.1
$71.3
$43.9
$17.2
$42.3
$8.4
$19.8
$24.7
$110.9
$77.1
$94.6
$14.1
$26.2
$58.7
$14.8
$17.9
$21.2
$99.2
$43.6
$190.6
$24.2
$136.3
$2,246.3
$0.6
$0.0
$9.7
$2.3
$12.7
$2,259.0
•u*-1l
$4,099.4
$812.4
$7,410.7
$5,278.5
$39,046.3
$6,400.1
$1,394.0
$874.2
$12,823.1
$8,937.7
$15,017.1
$5,944.4
$6,113.1
$4,030.2
$4,978.1
$6,900.1
$5,443.4
$6,790.0
$11,842.8
$5,988.4
$3,243.3
$7,085.6
$1,776.6
$2,691.3
$7,961.6
$27,137.3
$10,055.2
$12,599.0
$4,112.1
$2,785.3
$11,379.3
$2,537.5
$1,628.3
$3,547.6
$26,130.8
$6,061.9
$9,756.0
$6,186.0
$17,192.4
$323,991.4
$92.8
$263.9
$289.3
$253.3
$899.4
$324,890.8
* For the 2007 DWINSAthe need for states that opt out of the medium system portion of the survey is presented cumulatively and not by state. The list of the 14
partially surveyed states can be seen in Exhibit 2.4.
18

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                                                                       Findings-State Need
Exhibit 2.2: State 20-Year Need Reported by System Size (in millions of January 2007 dollars)
; Jv^);'.",!! '*'._!
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
District of Columbia
Florida
Georgia
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Nebraska
Nevada
New Jersey
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
South Carolina
Tennessee
Texas
Virginia
Washington
Wisconsin
Partially Surveyed States*
Subtotal
American Samoa
Guam
Commonwealth of the
Northern Mariana Islands
U.S. Virgin Islands
Subtotal
Total State Need
Knr&
$998.5
$85.1
$4,381.4
$443.6
$21,345.9
$2,079.0
$288.3
$874.2
$5,135.7
$2,663.4
$5,248.1
$1,417.2
$458.2
$766.5
$757.5
$3,354.7
$3,924.1
$1,683.3
$4,952.6
$672.0
$227.0
$1,342.2
$379.0
$2,098.2
$3,636.5
$17,956.6
$3,043.9
$3,172.1
$714.8
$674.2
$3,950.8
$823.6
$295.4
$555.8
$7,614.8
$2,474.4
$2,686.7
$1,299.2
$1,664.1
$116,139.0
$0.0
$203.1
$0.0
$0.0
$203.1
$116,342.1
""^:5"'iV
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2007 Drinking Water Infrastructure Needs Survey and Assessment
Exhibit 2.3: Overview of 20-Year Need by State
                                                                                               District of
                                                                                               Columbia
                                                                                Puerto Rico

                                                                                U.S. Virgin Islands
   ^  American Samoa

   /   Guam

   >.   Commonwealth of the Northern Mariana Islands
0
                                                              20-year need in billions of
                                                              January 2007 dollars
Partially surveyed states*
Less than $1.0
$1.0 - $2.9

$3.0 - $10.0
More than $10.0
 * The list of the 14 partially surveyed states can be seen in Exhibit 2.4.

 - Does not include needs for American Indian and Alaskan Native Village water systems.
 - The needs for American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands are less than
  $1 billion each.
20

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                                                                                   Findings-State Need
States that received the  minimum  DWSRF allotment of 1 percent in the most recent
allocation were given the option of surveying only the large systems in their state, and not
collecting data for medium-sized systems. (Small system data were collected by EPA.) This
option was provided to reduce the  burden on these states and allow for resources to be
focused on the large systems. Of the 24 states (including Washington, D.C. and Puerto Rico)
that received the minimum allocation based on the 2003 DWINSA findings, 14 chose this
"partially surveyed" option. For these states, the medium system need was estimated based
on data from fully surveyed states.  Because this method does not meet the Assessment's
stringent data quality objectives at the state level, the needs of these states contribute to the
estimate of the total national need but are not reported individually by state. Exhibit 2.4
shows the large and small system need estimated by state, and the total medium system need
for the partially  surveyed states.

Exhibit 2.4: State 20-Year Need Reported for Partially Surveyed
States (in millions  of January 2007 dollars)
State
Delaware
Hawaii
Idaho
Maine
Montana
New Hampshire
New Mexico
North Dakota
Rhode Island
South Dakota
Utah
Vermont
West Virginia
Wyoming
Total Partially Surveyed
State Need
• Large Medium Small NPNCWSs
CWSs CWSs CWSs NPNCWSs
$22.0
$30.1
$114.2
$63.1
$83.6
$98.7
$230.0
$0.0
$342.3
$72.0
$517.7
$0.0
$90.4
$0.0
$1,664.1














$8,537.0
$258.0
$160.0
$738.5
$442.2
$687.6
$686.6
$687.5
$401.3
$70.0
$462.9
$490.7
$453.0
$860.9
$287.4
$6,686.7
$3.2
$1.0
$37.7
$34.5
$50.7
$61.9
$15.4
$5.3
$16.1
$5.1
$13.0
$0.2
$48.2
$12.2
$304.5
More of the need of the partially surveyed states is for small and medium systems than
among the rest of the nation. Large system need makes up a relatively small share of the total
among partially surveyed states because these states generally do not have as many systems
serving more than 100,000 persons as other states.
                                                                                                      21

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                                  in
                       As shown in Exhibit 2.5, the state-specific results of the 2007 Assessment, when compared
                       to previous Assessments, show that states' needs change, and some change more significantly
                       than others during the 4-year intervals between Assessments. Changes in relative needs of
                       states from one Assessment to the next can be attributed to two primary factors:

                           •   Changes in Projects Planned, Initiated, and Completed. Congress specified
                              that the DWINSA be repeated at 4-year intervals to capture changes in system
                              infrastructure needs. Changes in the reported needs of individual systems from
                              one survey period to the next can have a significant effect on the overall state need.
                              For instance, in one Assessment a state may have a large system that has identified
                              a project with very substantial costs. During that Assessment cycle, that state's
                              need may be increased due to this large project. However, if construction of this
                              project begins prior to the next Assessment cycle, those needs would no longer be
                              included,  and this state's need may be lower. In addition, conditions within a state
                              may change dramatically over a 4-year period and have an impact on that state's
                              need. For example, Louisiana's needs increased substantially from 2003 to 2007 to
                              address the post-Hurricane Katrina infrastructure needs of water systems in New
                              Orleans and the surrounding area.
                           •   Changes in National and State Assessment Approaches. State-specific needs
                              will be affected by how the Assessment has evolved since the first Assessment was
                              conducted in 1995. The Assessment's "bottom-up" approach of submitting and
                              accepting documented needs on a project-by-project basis for each individually
                              sampled system has remained essentially unchanged. However, significant
                                               changes that can have an impact on individual states needs
                                               have been implemented regarding the parties responsible for
                                               data collection, the type of documentation required to support
                                               acceptance of an identified need, and policies and approaches
                                               implemented to ensure complete and quality data collection
                                               by the states.  The 2003 Assessment provided flexibility to the
                                               states and water systems regarding approaches for estimating
                                               longer term rehabilitation and replacement needs. States not
                                               only used different assumptions for estimating those needs
                                               but also invested different levels of effort into conducting the
                                               Assessment. The 2007 Assessment put considerable emphasis
                                               on gaining consistency across all states and water systems in
                                               both the means and the level of effort for these estimations. This
                                               was done through the establishment of well-defined policies
                                               on project documentation requirements and mechanisms to
                                               track each state's progress in achieving a complete  assessment of
                                               needs. The policies and mechanisms are described in Appendix
                                               C. The impact of the policies varied by state, depending on their
                                               approach to the previous Assessment.
        Adele Basham, Nevada Department of Environmental Protection
Raw water and finished water transmission mains are laid
for an arsenic treatment project in Nevada's Moapa Valley.
22

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                                                                      Findings-State Need
Exhibit 2.5: Historic State Need Reported for Each DWINSA (20-year need in
millions of January 2007 dollars)
State 1995 1999
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of
Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
$2,402.1
$1,116.5
$1,959.8
$2,930.9
$27,237.6
$2,821.8
$1,964.1
$538.0
$190.5
$6,276.3
$4,770.0
$623.8
$854.5
$7,744.9
$2,424.5
$3,265.9
$2,861.4
$3,220.0
$2,828.1
$1,253.0
$1,859.9
$8,606.9
$6,423.3
$3,529.0
$2,281.8
$2,720.1
$959.3
$1,379.5
$759.9
$1,038.0
$1,419.6
$768.6
$2,130.8
$2,014.7
$22,969.0
$3,323.3
$1,322.1
$399.3
$543.8
$4,891.3
$3,160.4
$192.6
$677.6
$8,076.4
$2,224.2
$3,738.6
$2,161.6
$2,323.7
$1,671.7
$654.8
$2,194.6
$7,717.7
$8,915.4
$4,070.6
$1,787.1
$2,862.8
$1,145.1
$1,092.8
$791.2
$655.9

2003 2007
$2,022.2
$816.0
$10,920.0
$4,237.2
$33,372.9
$6,374.3
$782.0
$288.4
$178.9
$18,009.5
$10,797.5
$972.9
$870.4
$16,160.9
$4,827.7
$4,195.5
$2,312.1
$3,363.2
$4,917.4
$996.0
$4,745.5
$10,243.3
$13,543.7
$6,538.3
$1,969.1
$7,134.3
$945.1
$1,621.3
$1,092.2
$713.2
$4,099.4
$812.4
$7,410.7
$5,278.5
$39,046.3
$6,400.1
$1,394.0
*
$874.2
$12,823.1
$8,937.7
*
*
$15,017.1
$5,944.4
$6,113.1
$4,030.2
$4,978.1
$6,900.1
*
$5,443.4
$6,790.0
$11,842.8
$5,988.4
$3,243.3
$7,085.6
*
$1,776.6
$2,691.3
*









State 1995 1999 2003 2007
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Partial Participation
States*
Subtotal
American Samoa
Guam
Commonwealth of
the North Mariana
Islands
U.S. Virgin Islands
Subtotal
Total
$5,230.9
$1,509.5
$14,596.7
$3,929.3
$849.7
$7,103.0
$2,940.9
$3,110.0
$6,885.4
$3,263.2
$950.7
$2,114.8
$823.3
$2,709.0
$17,900.6
$1,513.5
$664.9
$4,262.0
$5,835.5
$1,578.3
$2,703.2
$565.6
*
$197,882.0
$32.5
$154.5
$50.7
$323.0
$560.7
$198,442.7
$4,805.3
$1,368.4
$17,277.3
$3,555.4
$643.3
$6,512.8
$3,074.2
$3,557.9
$6,905.8
$2,589.7
$757.9
$1,077.6
$577.5
$1,851.9
$17,161.7
$674.9
$403.1
$2,699.4
$5,184.2
$1,339.6
$4,068.7
$580.8
*
$182,564.5
$47.8
$150.6
$98.3
$212.3
$508.9
$183,073.4
$8,280.6
$1,104.3
$17,736.3
$13,147.5
$726.6
$11,595.6
$5,752.4
$5,110.0
$13,159.6
$2,728.6
$482.1
$1,491.5
$1,185.2
$3,317.3
$33,729.8
$846.4
$472.7
$3,430.6
$7,988.6
$1,032.1
$7,110.2
$357.0
*
$315,746.0
$38.7
$334.0
$236.9
$216.0
$825.6
$316,571.6
$7,961.6
*
$27,137.3
$10,055.2
*
$12,599.0
$4,112.1
$2,785.3
$11,379.3
$2,537.5
*
$1,628.3
*
$3,547.6
$26,130.8
*
*
$6,061.9
$9,756.0
*
$6,186.0
*
$17,192.4
323,991.4
$92.8
$263.9
$289.3
$253.3
$899.4
$324,890.8
* For the 2007 DWINSA the need for partially surveyed states that opted out of the medium system portion of the survey is presented cumulatively and not by state.
                                                                                     23

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                       Continuing Evolution of the DWINSA
                       Each DWINSA's approach, policies, and guidelines influenced the total national need and
                       individual state needs reported for that effort. In all cases, specific project documentation
                       requirements and  data  quality objectives  were set by a workgroup of state and EPA
                       stakeholders and maintained  by EPA.  If the 2003 Assessment represented  a success  in
                       better capturing longer term needs than the 1995 and 1999 efforts, the 2007  Assessment's
                       achievement was in helping guide states toward a more consistent methodology in assessing
                       those types of needs. EPA believes the development and implementation of the  more refined
                       and  specific project allowability policies (further outlined in Appendix C) resulted in the
                       2007 Assessment representing the most thoroughly planned and comprehensive of the four
                       Assessments conducted.

                       EPA's quadrennial Assessment will continue to evolve, with each cycle providing valuable
                       input as to how the next Assessment can be  improved. In addition, it is anticipated that
                       challenges which may not have been significant in previous Assessments will arise and affect
                       water utilities. EPA will work with the states to improve each survey while maintaining the
                       integrity of the Assessment.

                       One objective of the 2007 Assessment was to improve the consistency of needs estimates
                       across states and water systems. These project  estimates rely heavily on required supporting
                       documentation. Based on the documentation provided, many water systems are using asset
                       management strategies  to  better understand  their longer term infrastructure investment
                       needs and to implement more decisive and compelling planning. This planning helps achieve
                       the necessary support from rate payers, investors, and local and state governments to gain
                       adequate financial support to address these needs. However, it is also clear that for a number
                       of systems there remains a significant gap between identifying their inventory  of assets and
                       their knowledge of that infrastructure's condition or remaining useful life. For the 2011
                       Assessment,  EPA  will  work
                       with  the  states  to examine
                       how the exercise can not  only
                       capture an  updated status of
                       asset planning by water systems
                       but also further the adoption of
                       such planning.
                                                                                       Sarah Hudson, Indiana DWSRF
                                                     The City of Fort Wayne, Indiana constructed a new pump building to
                                                     remedy poor pumping configurations, allowing storage facilities to be
                                                     more fully used.
24

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Key Observations on Each Assessment's Approach

1995

For the first survey, conducted in 1995, the DWSRF was not yet in existence and EPA worked directly with
many utilities to complete the survey with limited involvement from the states. Astate/EPA workgroup helped
plan and design the Assessment. Some states participated in data collection; however, many were unable
to invest resources beyond encouraging system cooperation. In addition, the 1995 Assessment included
needs for raw water dams and reservoirs, projects that were later determined to be DWSRF-ineligible for
future Assessments. (Note - while needs  for dams and reservoirs were included in 1995 Assessment,
these needs were removed in the calculation for the 1998 through 2001 DWSRF allotments.)

1999

For the 1999 Assessment, the federal DWSRF program had been established and project-eligibility criteria
were defined  that specifically excluded raw water  dams and reservoirs. Therefore these infrastructure
needs were not included in the 1999 Assessment. The DWINSA workgroup established Assessment
policies regarding water meters, backflow-prevention devices, and service lines. Although these  needs
were considered allowable for the Assessment, constraints were placed on documentation of ownership
and whether projects for their replacement could  be included. New to the 1999 Assessment was the
inclusion of the need of not-for-profit noncommunity water systems. Also, state programs were expected to
participate in data collection for this Assessment.

2003

Refinements made to the survey instrument in 2003 encouraged systems and states to think more
broadly about systems' existing infrastructure condition and  deficiencies, particularly in regard to long-
term needs for replacing or rehabilitating their existing  infrastructure  assets.  Considerable effort was
invested in promoting a comprehensive approach to inventorying existing assets and estimating the needs
for likely rehabilitation or replacement over the  next 20 years. EPA provided flexibility to surveyed water
systems and their states to forecast these longer term needs. In the 2003 Assessment, states and systems
responded with varying means of determining asset inventories and with different assumptions about the
life cycles of those assets (e.g., estimates of when buried pipe would need to be replaced  or rehabilitated).
In addition, the workgroup amended policies regarding the replacement of water meters as an allowable
need. In 1999, meter replacements were allowed only if documentation was provided indicating that
the system owned the meter. In 2003, documentation of ownership was not required.  These changes
resulted in a significant increase in the total national need and an increase in most states' individual state
needs. EPA's objective to better capture the true 20-year need was met, but the states and EPA agreed
that a more consistent methodology should be pursued in the next Assessment effort.

2007

In planning for the 2007 Assessment, EPA and the states came to a consensus that more consistency was
needed across the states in regard to both methods for determining needs and each state's approach to
capturing those needs. Building on the methods and approaches used  by the states in  the 2003 effort,
consensus was reached  on  consistent policies regarding replacement and rehabilitation assumptions
and documentation requirements to support survey-allowable projects. EPA's quality  assurance reviews
included significant efforts to ensure the policies were followed by all states.

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Exhibit 2.6: 20-Year Need
Reported by U.S. Territories
American Samoa
Guam
Commonwealth of the
Northern Mariana Islands
U.S. Virgin Islands
$92.8
$263.9
$289.3
$253.3
*20-year need in millions of January 2007
dollars.
Unique Needs of Water Systems in U.S.
Territories

Under SDWA §1452(a)(l)(D)(ii), Congress allocates 0.33 percent
of DWSRF monies to the U.S. Territories (e.g., American Samoa,
the Commonwealth of the Northern Mariana Islands, Guam, and
the U.S. Virgin Islands) to be used as grants for water systems.
For the 2007 Assessment, EPA mailed questionnaires to all large
systems and to  a probability sample of medium-sized systems
in the U.S. Territories to assess the needs  of water systems on
these islands.

The Assessment data showed that water systems in the territories
face  unique challenges in providing safe drinking water to their
citizens. While drinkingwater issues can varyfrom island to island,
the overall challenges for all of the U.S. Territories include:

   •  Rapidly Deteriorating Infrastructure. In  many  island climates, corrosive soils and  years  of
      delivering previously untreated water have contributed to a prematurely deteriorated distribution
      system. Inadequate storage and lack of redundancy in the water systems make it difficult to take
      infrastructure off line for required maintenance or replacement.
   •  Seasonal, Transient Customers. A  high volume of tourists creates considerable fluctuations in
      seasonal water  demand that are difficult to design for. Cruise ships and other forms of tourism
      present huge peak demands on water systems already working at capacity.
   •  Limited Source Options. The ability to serve existing homes  as well as a growing population is
      limited by a lack of quality sources of water. The islands' water supplies are dependent upon limited
      fresh water sources,  ground water aquifers which are susceptible to contamination, and the use of
      rainwater catchments.
   •  Ground Water Contamination. Aquifer contamination from waste and sediment runoff, on-site
      wastewater treatment systems, illegal dumping, and salt water intrusion threatens the quality and
      quantity of water pumped from aquifers.


Due to limited ground water  supply and aging infrastructure, the U.S. Virgin Islands, including the islands of
St. Croix, St. John, and St. Thomas, face current and future water shortages. On St. Croix many homes have
requested new water service from the island's single municipal water system, but their requests cannot
be met due to inadequate supply and the lack of piping to connect them to the system. Approximately 85
percent of St. Croix's pipe is ductile iron. Much of this pipe was installed over 50 years ago, has corroded,
and must be replaced. In addition, desalinization plants on all three  islands must be replaced because
many have been in operation for over 20 years  (well beyond manufacturer recommendations) and are
in disrepair due to age and little or no maintenance.  Fluctuations in demand from seasonal,  transient
customers on cruise ships also significantly strain undersized water treatment facilities on St. John and St.
Thomas. Demand for water on St. John fluctuates from 100,000 gallons per day during the low-demand
season to over 300,000 gallons per day when demand is high. This situation leads to operational problems
and water shortages.

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EPA has estimated that up to 50 percent of the population of American Samoa lacks safe drinking water.
This shortage is due, in  part, to ground water contamination which is becoming a concern because the
main aquifer lies beneath the fastest growing area in the territory, the Tafuna Plains. In addition to the strain
on the aquifer from increased withdrawals, population development has resulted in increasing human and
animal pollution. Already 17 percent of residents tested positive for leptospirosis, a potentially deadly
waterborne disease associated with animal  waste.  Contributing further to the problem, the vegetative
buffer mitigating the amount of pollutants reaching  the ground water is decreasing with the increase in
building construction.

                 of the

The Commonwealth Utility Corporation in Saipan, the largest island in CNMI, is unable to provide 24-hour
water service to over 40 percent of its  customers because of the inadequate number and poor condition
of its water sources, coupled with system leakage caused by extremely old and dilapidated infrastructure.
Many water system facilities, including transmission and distribution mains and storage tanks, pre-date
World War II and require replacement. Salt water intrusion threatens the quality of ground water sources
and is a serious issue on Saipan, where it has led to  exceedingly high salinity levels in the drinking water.
Due to the high salinity of the water, most residents drink bottled water.

Guam

Guam faces significant challenges posed by pollutants  entering drinking water  sources  both  from
unmanaged sewage, including many  unsewered areas with individual on-site systems only, and from
problems associated with erosion and  runoff. The sole source limestone/karstic aquifer that serves most
of Guam is highly susceptible to surface contamination and, based on further study, may be designated as
ground water under the direct influence of surface water. Guam's water system also suffers from general
dilapidation of infrastructure.
                                                                             Barry Pollock, EPA Region 9
    In 2005, the catastrophic failure of a 1 million gallon storage tank in Guam (left) damaged two neighboring tanks, knocking one
    of them out of service (right) and reducing the system's storage capacity by 25 percent.

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                                                                           EPA Region 9
                            A water tank level gauge displays the water level in the tank using a
                            floating buoy to move the gauge. This tank has 19 feet of water in it and
                            can hold up to 24 feet.
28

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Appendix A -  Survey  Methods
The 20-year period captured by the 2007 Drinking
Water Needs Survey and Assessment (DWINSA) runs
from January 1, 2007, through December 31, 2026.
The Assessment is based on a survey of approximately
3,250 community water systems and an adjustment of
findings from previous surveys for the needs of not-for-
profit noncommunity water systems and water systems
serving American Indian  communities  and Alaskan
Native Villages. Except where  noted,  the statistical
and survey methodologies  of the 2007 Assessment are
identical to those used in  the 1995, 1999, and 2003
Assessments. The most significant change is related to
the survey of medium systems,  which is described in
more detail later in this Appendix.
                                  Charles Pycha, EPA Region 5
Construction of a microfiltration treatment plant in Mankato, Minnesota.
This project was funded by the DWSRF.
U.S. Environmental Protection Agency (EPA), with input from a workgroup of state
representatives, developed the methods for the 2007 Assessment. The questionnaire used
in the 2007 Assessment was essentially the same as the 2003 Assessment questionnaire.
However, the  workgroup  revised some of the  project documentation policies and data
collection procedures in order to ensure that a more comprehensive and consistent approach
was applied by all of the states (see Appendix C for additional information on documentation
requirements.)

Assessing the Needs of Water Systems in States and U.S.
Territories
The 1996 Safe Drinking Water Act (SDWA) Amendments direct EPA to assess the needs
of water systems and to use the results of the quadrennial Assessment to allocate Drinking
Water State Revolving Fund (DWSRP) monies. The DWSRP monies are allocated based
on each state's share of the total state  need with a minimum of 1 percent of the state
allotment guaranteed to each state, Puerto Rico, and the District of Columbia. The need
represents all community water systems as well as not-for-profit noncommunity systems
in the states, Puerto Rico, and the District of Columbia. The results of the Assessment are
also used to allocate the 0.33 percent of the DWSRF appropriation designated for the U.S.
Territories. Therefore, the Assessment was designed to generate separate estimates of need
for the U.S. Virgin Islands and the Pacific island territories (Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands).
                                                                                               29

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                                                        Frame
                                                        The frame is a list of all members (sampling units) of
                                                        a population from which a sample will be drawn for a
                                                        survey. For this Assessment, the frame consisted of all
                                                        community water systems in each state, Puerto Rico,
                                                        the District of Columbia, and the U.S. Territories. To
                                                        ensure that the  survey accounted for all community
                                                        water systems in  the nation, the universe  of water
                                                        systems was obtained from the federal Safe Drinking
                                                        Water Information System (SDWIS-FED).  SDWIS-
                                                        FED is  EPA's  centralized database  of public  water
                                                        systems.  It includes the inventory of all public water
                                                        systems and provides information regarding population
                                                        served and whether a system uses ground water, surface
                                                        water, or both.

                                                        Each state was asked to review the frame and verify or
                                                        correct all information on each system's source water
                                                        type and population  served.  EPA used this updated
                                                        information to  create a  database of the universe of
                                                        community water systems. A sample of systems  was
                                                        then selected from this updated frame.
                 Adele Basham, Nevada Department of Environmental Protection
These substandard tanks (top) at the Three T Water system in Nevada
were replaced with a new tank (bottom) using a DWSRF disadvantaged
zero percent interest loan.
                                 Because there are thousands of water systems  in the
                                 nation, EPA must rely on a random sampling of the
                                 systems identified in the frame.  EPA set a precision
target of ± 10 percent with 95 percent confidence. To meet this target, all large systems were
surveyed, a random sample of medium systems was selected in each fully surveyed state, and
a national random sample of small systems was selected.



To determine state need, water systems are grouped (stratified) by size (population served)
and by source (surface or ground water). Exhibit A. 1 shows the possible population and
source water strata.

For the purposes of assigning  a  population to each system, consecutive populations are
included in  the system population because of the assumption that, in general, critical
infrastructure of the selling-system would need to be sized to accommodate the demand of
the population directly served by the system and the consecutive population.

Systems are categorized as surface water if they have at least one source that is surface water or
ground water under the direct influence of surface water (GWUDI). Systems are categorized
as ground water if they do not  have a surface water  or GWUDI source. The ground water
30

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                                                                           Appendix A - Survey Methods
category includes ground water systems and systems that do not have a source of their own
and purchase finished water from another system (regardless of whether the purchased water
comes from a surface water or ground water source). The decision to include purchased water
systems in the ground water systems category was based on the 1995 Assessment's findings
that, in general, indicated the needs of purchased water systems more closely resemble those
of ground water systems than of surface water systems with source water treatment.

             the
For the 2007 Assessment, a large system is defined as serving more than 100,000 persons,
either through direct connections or as a wholesale water system. Because of the unique
nature  of systems in this size category and because they  represent  a large portion of the
nation's need, these systems  are sampled with certainty, meaning that all systems receive a
questionnaire. In the previous Assessments (1995, 1999, 2003), the large system  category
was defined as systems serving populations of more  than 40,000  or 50,000. The 2007
Assessment set this category at  a higher threshold to reduce costs and burden on the states.
The overall precision targets were still met. Systems serving 50,000 to 100,000 persons were
included  in the approach for medium systems.
 Exhibit A.1: Community Water System Stratification for the 2007 Assessment

Large
Medium
Small
-•V«I"llL::'
"i "U(.

> 100,000
50,001 - 100,000
25,001-50,000
10,001 - 25,000
3,301 - 10,000

or 10,001 -
50,000*

501-3,300
101 - 500
< 100

.Oil: V<-"i«:TV-':i':5-

?'lv:?ii]j.iJ=lL-';iij';,I:J
Sampled with certainty
-All systems receive
questionnaire


State-specific
participating states




National
sample for
small s>
^sterns
*ln some states, systems serving 10,001 - 50,000 can be considered one stratum and precision targets can be met. The most
efficient sample is drawn from each state.
                                                                                                    31

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2007 Drinking Water Infrastructure Needs Survey and Assessment
              Exhibit A.2: Medium and Large Community Water System Sample Size
ifl-Ti-i
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
;ta.«l ai UuAft3.H: Ji^TtlCilit! j-.fi Ji fil,"J3]b."ii"
l.SOMi:-"rS3S;&<
:-'<>">..-&!ll!
336
17
117
171
562
147
52
23

338
202
28
44
443
200
132
113
259
216
34
50
226
292
158
195
201
33
42
31
35
jaMiS'IiT';
18
1
10
3
114
12
7
3
1
44
16
2
1
19
13
3
6
7
8
1
5
12
14
2
2
6
1
2
5
2

354
18
127
174
676
159
59
26
1
382
218
30
45
462
213
135
119
266
224
35
55
238
306
160
197
207
34
44
36
37
K'.LuLU!£5ftW, 	 i;;5;i'tOiii;fi(:i:=FitA^J[]=!'::;"Tifp2
[^niii/.iMj.iEEJA'Xiii
v;u^Y|i i 	 ,.,
Mi'IlMiY';
131
14
22
93
93
33
43


75
48


76
98
44
39
107
91

21
52
51
63
164
84
-
22
10
-
asfi-IIy,,,!,.:,;
18
1
10
3
114
12
7
3
1
44
16
2
1
19
13
3
6
7
8
1
5
12
14
2
2
6
1
2
5
2
'I !i •$?"?!
149
15
32
96
207
45
50
3
1
119
64
2
1
95
111
47
45
114
99
1
26
64
65
65
166
90
1
24
15
2
                       Each large system was asked to complete the questionnaire and return  it along with
                       accompanying documentation to its state coordinator. The state coordinators reviewed the
                       questionnaires to ensure that the systems included all their needs, the information entered
                       on the questionnaire was correct, and the projects were eligible for DWSRF funding. During
                       their state reviews, states  often contacted systems to  obtain additional  information. The
                       states then submitted the questionnaire and all documentation to EPA for a final review.

                       Of the 584 large systems  that received a survey for the 2007 Assessment, 570 completed
                       the questionnaire—a response rate of 97 percent. Exhibit A.2 shows the number of large
                       systems in the frame as well as the sample size for each state.
32

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                                                                        Appendix A - Survey Methods
Exhibit A.2: Medium and Large Community Water System Sample Size, cont.
;
12
1
28
20

14
4
8
27
8
2
9
1
18
46
7
-
18
12
3
5
-
583
-
1


1
584
-<->f"il
227
60
354
268
31
314
160
109
340
122
28
167
42
282
968
105
34
163
199
110
177
27
9,324
1
3
2
3
9
9,333
i i'i ![ lull11'''* t i™Vi illK'y{- '• ^**!y j 'i >.•?• **U~Jv'1"1 '''"'i^' if T IK'] -( i 'il j'j ^
i S^n^T]!"- n^yiij'^'lT^ !'>'~
.= i?:SFll(
:i(,: .;s;.I,i,;
55

37
34

77
58
41
56
55
-
43
-
105
74
-
16
32
47
-
54
-
2,258
1
2
2
3
8
2,266
=3^;,*-.
12
1
28
20

14
4
8
27
8
2
9
1
18
46
7
-
18
12
3
5
-
583
-
1


1
584
	 \ ; *r^"«i|
67
1
65
54
-
91
62
49
83
63
2
52
1
123
120
7
16
50
59
3
59
-
2,841
1
3
2
3
9
2,850
            tte        of
Medium systems, as defined for the 2007 Assessment, serve between 3,301 and 100,000
persons. Exhibit A.2 shows the number of medium systems in the frame and sample by
state. States with a dash in the medium system sample column opted not to collect data for
these systems.

For the 2007 Assessment, states that received the minimum 1-percent DWSRF allotment
in the 2003 Assessment were given the option of not participating in data collection for
medium-sized systems. This option was provided in order to reduce burden on the small
                                                                                                33

-------
2007 Drinking Water Infrastructure Needs Survey and Assessment
                       states that receive the same allotment regardless of the findings of the survey. Of the minimum
                       allocation states, 14 chose not to participate in this portion  of the survey. The medium
                       system need for states that chose this option was estimated based on data from participating
                       states. Because this method does not meet the Assessment's formal precision targets at the
                       state level, the needs of these partially surveyed states contribute to the estimate of the total
                       national need, but medium system need is not reported individually by state.

                       For states that participated in the medium system portion of the survey, the data collection
                       process was similar to that of large systems with the system completing the survey, the state
                       providing input, and the final review conducted by EPA.

                       Once the need for systems in the  fully surveyed states was calculated, it was  used to
                       determine the need for the partially surveyed states. An average need per stratum from
                       fully surveyed states was calculated and applied to the inventory of systems in the partially
                       surveyed states.

                       Of the 2,266 medium systems that were randomly selected and received a survey, 2,082
                       completed the questionnaire for a response rate of 92 percent.

                                    tte
                       Exhibit A.3 shows the total inventory and sample size for the national sample of small
                       systems. Small systems, as defined for the 2007 Assessment, serve 3,300 or fewer persons.
                       Because small systems often lack the resources to complete information collection requests
                       and do not  always have the resources to produce longer term planning documents, EPA
                       does not ask these  systems to complete a questionnaire. Instead, EPA collects the data by
                       sending qualified, trained professionals to interview system personnel and document project
                       needs. This process was used for small systems in the 1995 and 1999 Assessments as well
                       as the 2007 Assessment. In 2003, in an effort to reduce costs, EPA used the 1999 need
                       estimates adjusted to 2003 dollars.

                       For the small system survey, a national sample of 600 systems was selected to represent
                       the national need of the 41,748 small systems. To select this sample, EPA used two-stage
                       probability proportional-to-size sampling (PPS) with six strata.  Systems were stratified based
                       on population served (i.e., less than or equal to 100, 101 to 500, and 501 to 3,300 persons)

 Exhibit A.3: Small Community Water System
 Sample Size
." ' l ' ~ -'„ ' *' ' ' *
Systems Serving
3,300 or Fewer
Persons
> N f / <'* , . ' P '
41,748
' > ''''',-• ' *, '
600
34

-------
                                                                             Appendix A - Survey Methods
and source water type (i.e., ground or surface water.) Systems were grouped by county or
clusters of counties.  In the first stage, a random sample of counties or cluster of counties
were selected. The probability that a county or county cluster was selected was proportional
to the number of small systems in each stratum in the county or county cluster. In the second
stage, five systems were selected randomly from each county or county cluster. This approach
minimized travel and expenses  for site visits. A total of 600 systems were selected.

Needs data from the 600 small systems were collected by EPA contractors. To ensure that the
data collected were as accurate as possible, EPA contracted with water industry professionals,
including engineers, operators, and state primacy agency experts, to complete the small
system surveys. These site visitors participated in a 2-day training session on the Assessment
methodology and were trained to assess the current condition of a small water system and
to estimate its 20-year needs.

Since trained and qualified contractors completed  the surveys on-site with the system
representatives,  there was a high confidence in the  surveys.  The surveys were  submitted
directly to EPA for review rather than  first going through a state representative. After data
collection, the needs of small systems were assigned to each state by multiplying the average
need per stratum by the  number of small systems in that stratum (from the inventory of
small systems in each state). It is important to note that conducting a field survey in this
manner allows for consistent estimation of project needs across all surveyed systems.

System Weight
As in the previous efforts, the 2007 Assessment assigned weights to the findings from each
surveyed water system to  determine total state needs.  Because all large systems are included
in the survey, each  large system has a weight of 1. The state need for large systems was
determined by summing the cost of each project for each system  and then  summing the
need for each large system in the state.  Systems were not re-weighted for nonresponse.

For medium systems, EPA determined the number of
water systems that must  be included in each stratum
in order to achieve  the desired level of precision. The
surveyed systems were selected and assigned an  initial
weight for their specific state equal to the total number
                                                                                                  EPA Region 9
                                                                                                       35

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                       of systems in that stratum divided by the number of systems in that stratum's sample. A
                       final weight was recalculated for each stratum with adjustments for  non-response and
                       systems changing stratum (population or source changes). Each fully surveyed state's need
                       for medium systems was determined by summing the cost of each project for each system,
                       and then multiplying each system's need by the system's final weight.

                       The number of medium sized water systems selected from each stratum was determined
                       by the total number of systems in that stratum (shown in Exhibit  A.I), the percentage
                       of that  state's need represented by that stratum in the most  recent  Assessment, and the
                       relative variance of the need within that stratum in the most recent Assessment. The sample
                       is allocated among the strata in a manner that  lets the survey achieve the desired level of
                       precision with the smallest sample size for each state.

                       Small system weighting was conducted in a manner similar to the medium systems, but was
                       assigned on  a national scale rather than a state-level scale. The small  system national need
                       is determined by summing the cost of each project for each system and then multiplying
                       each system's need by the system's final weight.  The small system state need was estimated
                       by determining the average system need for a stratum and multiplying the average by the
                       number of small systems a given state has in that stratum.

                       In compliance with the Paperwork Reduction Act (PRA) (44U.S.C. 3501 et seq.), the survey
                       design and instrument were reviewed and  approved by the Office  of Management and
                       Budget  (OMB). The Information Collection Request (ICR) for the survey can be accessed
                       in the Federal Register/Vol. 71, No.206/Wednesday, October 25, 2006/Notices p62439.

                       Assessing the Need of Not-for-Profit Noncommunity Systems
                       Not-for-profit noncommunity water systems (NPNCWS) are eligible for DWSRF funding.
                       The 2007 need for NPNCWSs was based on the findings of the 1999  Assessment in which
                       a statistical survey of these systems was conducted. These findings were adjusted to January
                       2007 dollars using the Construction Cost Index (CCI).

                       During the 1999 Assessment, EPA collected data from a national sample of 100 NPNCWSs
                       through site visits. Unlike the sampling design for community water systems, the NPNCWS
                       sample was not stratified into size and source categories because EPA lacked the empirical
                       information on variance  necessary for developing strata. The sample used for the 1999
                       Assessment for NPNCWSs was designed to provide a 95 percent confidence interval that is
                       within a range of+/- 30 percent of the estimated need.
36

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                                                                            Appendix A - Survey Methods
The national need for NPNCWSs was allocated among
the states in proportion to the inventory of NPNCWSs
in each state in a manner similar to that used for small
systems.

Assessing the  Need of American Indian
and Alaskan Native Village Water
Systems
The infrastructure need reported  for American Indian
and Alaskan  Native Village  water  systems  was based
on the findings of the 1999 Assessment. Because of the
high level of confidence in  the findings from 1999  and
resource constraints, EPA did not survey these systems
again in 2007. Instead, EPA used the CCI to adjust the  to prevent freezing in permafrost conditions. Many Alaskan Natives
estimated  need from 1999  to 2007 dollars to  estimate
the 2007 needs for these systems. The results are used to
help determine how to allocate monies that are available through the DWSRF to American
Indian and Alaskan Native Village water systems.
                      Alaska Department of Environmental Conservation
Alaskan Native Village water systems require specialized infrastructure
rely on water hauling stations such as this one to obtain their water
for domestic use.
In 1999,  all American  Indian systems  serving populations of 3,301 to  50,000 were
sampled. These systems were given the choice of either completing the survey themselves
or participating in an interview to capture their needs. For systems serving 3,300 or fewer
persons, a random sample of systems were chosen and site visits were conducted by qualified
and trained professionals.



All Alaskan Native Village water systems were sampled in the 1999 Assessment. The medium
systems, serving populations of 3,301 to 50,000, were mailed a questionnaire. The needs of
small systems, serving 3,300 or fewer, were developed by a roundtable of representatives from
the Alaskan Native Villages, Village Safe Water, and the Indian Health Services (IHS), with
assistance from EPA. Site visits to five Alaskan Native Village water systems were performed
to confirm the roundtable's findings.
                                                                                                      37

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2007 Drinking Water Infrastructure Needs Survey and Assessment
38

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Appendix  B  -  Data  Collection
To determine the scope of water systems' 20-year need, data are collected in the form of
capital improvement projects. States and other agencies work with the surveyed systems to
identify applicable projects. To be included in EPA's Assessments, each project had to meet
each of the following four criteria:

   •  The project must be for a capital improvement.
   •  The project must be eligible for Drinking Water State Revolving Fund (DWSRF)
      funding.
   •  The project must be in furtherance of the public health protection goals of the Safe
      Drinking Water Act (SDWA).
   •  The project must be submitted with supporting information that documents the
      three other criteria are met.
Projects included in the Assessment generally fall into one of two categories that describe
the reason for the project:

   •  Replacement or rehabilitation of existing infrastructure due to age or deterioration.
   •  New or expanded infrastructure to meet an unmet need for the current population
      or to comply with  an existing regulatory requirement.
Projects for infrastructure generally expected to need rehabilitation or replacement in  the
20-year period covered by the Assessment were accepted with minimal documentation
describing their scope and the reason for the need. However, other types of projects required
independently generated  documentation  that not only identified
the need but also showed clear commitment to the project by the
water system's decision-makers. Exhibit B. 1 summarizes the types of
projects that were included and the types that were unallowable.

For the purposes of assigning a cost to each need, the survey required
that the water system either provide an existing  documented cost
estimate or the information necessary for EPA to assign  a cost.
This information  was  referred to as the "design parameter" and is
discussed  in more detail in this Appendix.

Survey Instrument
As with previous Assessments, the 2007 questionnaire was the survey
instrument  for reporting  all needs. All large water systems and a
random sample of medium systems were mailed  a survey package,
which included the questionnaire,  instructions for completing the
                                                                                       Photo by Robert Barles

                                                                                                 39

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2007 Drinking Water Infrastructure Needs Survey and Assessment
Exhibit B.I: DWINSA Allowable and Unallowable Projects
  Criteria:
     •  Eligible for DWSRF funding
     •  Capital improvement needs
     •  In furtherance of the public health goals
       oftheSDWA
     •  Within the Assessment time frame
     •  Adequate documentation
  Project Types:
     •  New or expanded/upgraded
       infrastructure to meet the needs of
       existing customers
     •  Replacement or rehabilitation of
       existing undersized or deteriorated
       infrastructure
Raw water reservoir- or dam-related needs
Projects needed primarily to serve future population growth
Projects solely for fire suppression
Projects for source water protection
Non-capital needs (includingstudies, operation and maintenance)
Needs  not  related to  furthering the SDWA's  public  health
objectives
Acquisition of existing infrastructure
Projects not the responsibility of the water system
Needs associated with compliance with proposed or recently
promulgated regulations (Derived instead from EPA's economic
analyses and added to the national total)
Projects or portions of projects started prior to January 1, 2007
Projects or portions of projects needed after December 31, 2026
                        questionnaire, and a list of codes used to convert the information to a database format.
                        These documents were also used by the site visitors for recording small system needs.

                        The instructions provided to the water systems included information on the background
                        and purpose of the Assessment as well as how to identify projects that should be included
                        in the questionnaire. In addition to infrastructure needs, the survey also requested basic
                        information from  the water systems such  as the size of the population served, the number
                        of service  connections, the production capacity,  the source water type, and the system's
                        ownership type. This information was compared to the information used for the sample
                        frame.  Discrepancies in  source and  population were investigated to ensure  accurate
                        information was used for the statistical sample.

                        Project Documentation
                        Each project listed on the  questionnaire was required to have accompanying written
                        documentation of its scope and why it was needed. Written documentation included master
                        plans, capital improvement plans,  sanitary survey reports,  and other sources of project
                        information. Whether the documentation could be written for the 2007 Assessment or had
                        to be pre-existing depended on the type of project that was described. All documentation for
                        every project was reviewed by EPA to ensure that the project met the allowability criteria for
                        the Assessment. See Appendix C for more information on the project allowability policies.
40

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                                                                             Appendix B - Data Collection
Cost Estimates and Modeling
As with previous Assessments, costs assigned to projects were obtained in one of two ways.
If the system had an existing documented cost estimate that met the documentation criteria
of the survey, this cost was adjusted to 2007 dollars and used for that system's need. This is
the preferred approach for assigning a cost to a project. If no cost estimate was available, the
system was asked to provide information (design parameters) necessary for EPA to model
the cost of the project. Cost models were built from the documented cost estimates provided
by other survey respondents.

Acceptable  forms of documentation for cost  estimates were capital  improvement plans,
master plans, preliminary engineering reports, facility plans, bid tabulations, and engineer's
estimates that were not developed for the 2007 Assessment. Each project with an associated
cost was required to provide the month and year of the cost estimate in  order to allow an
adjustment of the cost to January 2007 dollars.

Systems that  had cost estimates were encouraged to submit design parameters regarding
size or capacity of the infrastructure. For example, a tank is described in terms of volume
in millions of gallons, treatment plants are based on capacity in millions of gallons per day,
pipe parameters are diameter and length. Over 70 project types of need were used to describe
projects and link design parameters to cost. This combination of the specific type of project,
costs, and parameters was used as input to develop cost models. Prior to input to the cost
models, the cost estimates were normalized for both time frame and location. Cost estimates
prior  to January 2007 were adjusted to January 2007 dollars using the Construction Cost
Index (CCI). Regional variations in construction costs were normalized  by location using
the RS Means "Location Factors Index." RS Means is a subsidiary of Reed Construction
which publishes an annual index used  to calculate construction costs for a
specific location. The factor multiplier is expressed as a relationship to the
national average of 1.

Although over 70 different types of need were used, a few project types could
not be modeled. These types of need were unique to individual systems and
did not lend themselves to modeling (examples include de-stratification  of
a surface water source, pump controls  and telemetry,  and security features
other than fencing).

Ultimately  some  projects were not able to be assigned a  cost because a
cost estimate from the system was not provided  and project information
submitted on the survey did not include the necessary design parameters
required for modeling.
                                                                                             Photo by Michelle Lee

                                                                                                       41

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                       Web Site and Database
                       EPA used a 2007 surevy-specific Web site to provide an efficient method of tracking and
                       monitoring questionnaire responses for states and Regions. The Web site allowed controlled
                       viewing of survey information and provided a means for states to provide additional project
                       information if needed. Water systems, state contacts, and EPA had secure login access to
                       the Web  site.  The Web site was a modification of the one used successfully for the 2003
                       Assessment.

                       Once logged into the Web site, water systems had access to  their own project data, states
                       had access to all project data for the water systems in their state, and EPA regional offices
                       had access to the project data of states within their region. Web site users were given "read
                       only" or "read/write" access depending on whether information posted to the Web site could
                       be changed by that  entity. This created a transparent process  and open  communication
                       between  systems, states, and EPA while also maintaining a secure environment so that
                                                                  persons without reason to see the data did
                                                                  not have access.
                 Washington
A screen shot from the DWINSA Web site.
The Web site also  served as a  means of
communication between states  and EPA.
As EPA completed the quality  assurance
reviews   of  each  questionnaire,  the
information was uploaded to the Web site
database  along with specific indications
of any changes that had been made to
the projects and why the changes were
implemented.

Each  state  was  able  to  view  all  its
systems' projects and  submit additional
information for  projects  that  had been
changed or deemed unallowable through
EPA's quality assurance review.
                       Quality Assurance
                       As with all three earlier Assessments, the findings of the 2007 Assessment are reinforced by
                       adherence throughout the project to the principles embodied in the EPA Guidelines for
                       Ensuring and Maximizing Information Quality. The most fundamental assurance of the
                       high degree of information quality is the implementation of the Agency's Quality System.
                       EPA implements the system through the development of a quality assurance project plan
                       (QAPP) for each project, which details the specific procedures  for quality assurance and
                       quality control.
42

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                                                                              Appendix B - Data Collection
Because the Agency uses the results of this Assessment to allocate DWSRF capitalization
grants to states, this Assessment (like those that preceded it in 1995, 1999, and 2003) sought
to maximize the accuracy of the state-level estimates of infrastructure needs. Decisions about
precision levels, policies, and procedures were established by a state/EPA workgroup that
met regularly during the 2007 Assessment.

Accuracy was maximized at the national,  state, system, and  project levels  through the
following steps. First, since this was a sample survey, the workgroup established targets for
precision of estimates in the sampling to shape the national sample design. These precision
targets are discussed in Appendix A.

Second, EPA used quality assurance procedures from the QAPP to ensure that "eligible
infrastructure" was clearly defined and that documentation  standards were rigorously
enforced. As noted previously, for a project to be included in the 2007 Assessment, systems
and states had to submit documentation describing the purpose and scope of each project.
The documentation was reviewed by EPA to determine whether each project met the
eligibility criteria.  The workgroup established the documentation requirements so that
uniform criteria were applied to all questionnaires.

Of the 94,852 projects submitted to the survey, EPA accepted 79 percent. The 21 percent
that were not allowed failed to meet the documentation criteria  or appeared to be ineligible
for DWSRP funding. Some projects were adjusted to correct a variety of measurement
problems, such as overlaps between two projects (raising the  issue of double-counting),
inconsistency of recorded data with project documentation, and the use of overly aggressive
(short) infrastructure life cycles by states where system planning documents were not used
or available.

Third, after the survey review process, the project data were entered into a database using
dual data entry procedures to ensure the information was correctly transferred. The uploaded
data then went through a systematic verification process to identify any outliers or data-
entry  errors. Each project, the systems' source water type, total pipe length, population, and
number of connections were reviewed for any unusual entries. The data were then compared
at the state  and national levels to identify  any outliers in the  data. EPA investigated the
outliers by reviewing the  system's project  documentation. If the documentation did not
provide enough information to verify the project, EPA  contacted the state or the system for
confirmation.
                                                                                                        43

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                     '. ii'v".'!.',X,': '»' '"*•!••'',•'' :• !• vi, "li':>'«'V>< "',,!';i,".




Windsor Dam at the Quabbin Reservoir in Massachusetts.
                                                                                       Photo by Charles Hernick
44

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Appendix C -  Policies
EPA recognizes that it is critical to the credibility of the
2007 Assessment and fairness  to the states that EPA
work with the DWINSA workgroup to set clear and
well-defined data collection  policies and  for EPA to
apply these policies consistently to all systems and states.
The policies are aimed at ensuring that the Assessment
meets its Congressional intent, maintains the credibility
of the findings, and establishes  a level playing field for
the states. To this end, the policies developed ensure
two  essential criteria - that  only allowable  needs be
included, and that all needs be adequately documented
according to Assessment criteria.

Project Allowability
               ispior^ i*t  ^rsp^p-s* "P
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2007 Drinking Water Infrastructure Needs Survey and Assessment
                       Projects Must Be Eligible for DWSRF Funding
                       Projects ineligible for  DWSRF  funding are  identified in the DWSRF  regulation and
                       include:

                          •   Dams or the rehabilitation of dams.
                          •   Water rights.
                          •   Raw water reservoirs or rehabilitation of reservoirs (except for finished water
                              reservoirs and reservoirs that are part of the treatment process and are on the
                              property where the treatment facility is located).
                          •   Projects needed primarily for fire protection.
                          •   Projects needed primarily to serve future population growth. (Projects needed to
                              address a deficiency affecting current users must be sized only to accommodate a
                              reasonable amount of population growth expected to occur over the useful life of
                              the facility.)

                       Projects Must Be in Furtherance of the Public Health Goals of the SDWA
                       Projects that  are driven by objectives, not based on public health protection and the goals of
                       the SDWA, are not included in the survey. These needs can include projects for improving
                       appearances,  infrastructure demolition,  buildings and parking  facilities not  essential
                       to providing safe drinking water, acquisition of land  for an  unallowable project, and
                       infrastructure needed to extend service to homes that currently have an adequate drinking
                       water supply.

                       Projects Must Fall Within the 20-Year Period of the Assessment
                       Projects for which construction began prior to January 1, 2007, and projects that are not
                       needed until  after December 31, 2026, fell outside the time frame for the Assessment and
                       were not included.

                       Projects Must Be Adequately Documented
                       Project documentation is a critical piece of the Assessment's  credibility and fairness to states.
                       It is described in more detail later in this Appendix.

                       Other Unallowable  Needs
                       Besides the project criteria discussed above, other limitations established by the workgroup
                       were:

                          •   Infrastructure needs that occur more than once during the 20-year survey period
                              could be listed only once on the survey.
                          •   Multiple projects meeting the same need, such as rehabilitating a tank and later
                              replacing the same tank, could not all be included.
46

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                                                                                    Appendix C- Policies
   •   Projects for compliance with specific proposed or recently promulgated regulations
       were not accepted from water systems. These costs were instead estimated and
       added to the national total by EPA directly.
   •   Projects driven solely by a non-water-related issue such as a highway relocation
       were not included.
   •   Projects to acquire existing infrastructure were not considered capital infrastructure
       costs.
   •   Most vehicles and tools were considered operation and maintenance costs.
   •   Projects that are not the responsibility of the public water system, such as
       homeowners' portions of service line replacements, were not included.
If projects associated with an unallowable need were  submitted, they were excluded from
the Assessment by EPA. EPA understands that these projects often represent legitimate and
even critical needs that a water system must pursue to continue to provide service to its
customers.  However, because they do not meet the allowability criteria they are not the
subject of the DWINSA.

Documentation Requirements
EPA and the  workgroup implemented improvements for the 2007 Assessment based on
the lessons learned in the 2003 Assessment. Revisions to the DWINSA approach primarily
centered on the documentation requirements for certain types of projects and were driven
by the desire to ensure a consistent approach to data collection and to the assessment of need
applied by each state.
High-quality documentation is required to justify the
need for a project, defend cost estimates provided by
the water system, provide a defensible assessment of
national need, and ensure fair allotment of DWSRF
monies. The documentation of need and cost for
each project was carefully reviewed to ensure that the
criteria set in the DWINSA approach and established
by consensus of EPA and the workgroup were met.
       -ABT^
A clamp used to repair a water main break.
                                                                                            Photo by Jenna Wang
                                                                                                      47

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                       Types of Documentation
                       In an effort to ensure more consistency in each state's approach to the assessment of its water
                       systems' needs, the workgroup defined for the 2007 Assessment three types of documentation
                       that could be provided to describe a need or provide a cost:

                          •   Independent Documentation. A document or report generated through a process
                              independent of the Assessment. Because these documents were not generated
                              specifically for the Assessment, it  is assumed that there is no intentional bias of
                              over reporting of need.
                          •   Survey-generated Documentation. A statement or document discussing the need
                              for a project generated specifically for the Assessment by the system or the state.
                          •   Combination Documentation. A combination of independent and survey-
                              generated documentation to justify project need or cost. Independent
                              documentation does not always directly address the reason a project is being
                              pursued by a system and therefore may not establish allowability criteria. Systems
                              often added survey-generated documentation to independent documents to clarify
                              the need for the project.

                       Documentation of Need
                       Documentation of need explains the scope of the project, explains why the project is needed,
                       and gives an indication of the public health need that would be addressed by the project. In
                       order for the project to be accepted, the documentation of need must:

                          •   Provide sufficient information for EPA to review the allowability of the project.
                          •   Provide adequate data to check the accuracy of the data entered on the
                              questionnaire.
                          •   Be dated and be less than 4 years  old.
                       One of the primary changes in  approach  from the 2003 Assessment was that EPA and
                       the  DWINSA workgroup  defined the type  of documentation required for each specific
                       project type.  These minimum requirements were set to allow a minor level of effort by states
                       and water systems to document straight-forward projects. Doing so  made more resources
                       available to identify and document projects in which allowability was more questionable.
                       Projects fell into the following levels of documentation requirements:
  Weight of Evidence

  Documentation  must include adequate system-
  specific and project-specific details to verify that the
  project meets the allowability criteria and to justify
  that the project  is needed. Reviewers weighed the
  evidence provided to determine  if the submitted
  project met the criteria.
Projects that required independent documentation of
need.
Projects for which survey-generated documentation
was permitted but to which a weight-of-evidence
review was applied.
Projects accepted with any forms of documentation.
48

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                                                                                    Appendix C- Policies
The level of documentation required depended on the type of project and whether the
project was for new infrastructure or for the replacement, rehabilitation, or expansion/
upgrade of existing infrastructure. Any of the three forms of documentation were acceptable
for projects to rehabilitate or replace infrastructure assumed to have a life-cycle of 20 years
or less.

Projects likely to be driven by a need that is not DWSRE-eligible (such as to accommodate
growth or meet fire suppression needs) generally required independent documentation. Most
projects for the  installation of new infrastructure fell into this category. For those projects,
such as the construction of a new treatment system or new storage tank, the independent
documentation was reviewed and EPA applied a "weight-of-evidence" approach to determine
whether the project could be included in the Assessment.

Projects for Which Independent Documentation was Required
Generally, projects  that required independent  documentation  of need were  likely to
be unallowable  needs (such as  projects to meet  anticipated growth) or for infrastructure
likely to have an expected life of more than 20 years (such as a water
main). EPA and the workgroup assumed that systems pursuing needs
in this category are often  in the process of formal planning and
therefore independent documents are likely to exist. Projects requiring
independent documentation included:

   •   Sources - installation of a new surface water source or new
       aquifer storage and recovery wells.
   •   Treatment - installation, replacement, or expansion/upgrade
       of a complete treatment plant.
   •   Pipe - rehabilitation or replacement of a substantial portion
       of the system's water mains (in excess of 10 percent of the
       total system based on a rate of 0.5 percent annually).

Projects for Which Survey-Generated Documentation
was Allowed, but a Weight of Evidence Review was
Applied
Needs that were subject to a weight-of-evidence review included
projects that were significant in scope  or that may be  for unallowable
need (such as anticipated growth), but are not necessarily likely to be
included in a planning document. For these projects, systems were asked                Montana Department of Environmental quality
       .1        u • r      •   r   u      •             •    u  u     Corrosion on a wellhead indicates well rehabilitation
to provide enough information for the reviewer to  ascertain whether   may foe necessary ,„ the near future
the project was for an allowable need.  These projects included:

   •   Sources - construction of new  wells or springs and replacement or rehabilitation of
       any source.
                                                                                                      49

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                           •   Treatment - installation of a new ultraviolet (UV) treatment or membrane
                              filtration system (for projects not solely for compliance with the Long Term 2
                              Enhanced Surface Water Treatment Rule).
                           •   Storage - construction or replacement of a finished water storage tank.
                           •   Pipe - installation of new water mains and any new water main appurtenances
                              such as valves and hydrants.
                           •   Security - motion detector, in-line monitoring devices, or other sophisticated
                              security system components.

                       Projects for Which All Forms of Documentation        Accepted
                       Projects for infrastructure that is generally expected to require rehabilitation or replacement
                       within a 20-year  period were accepted with minimum documentation of need.  Survey-
                       generated documentation was sufficient for these projects, which included:

                           •   Sources - installation, replacement or rehabilitation of well pumps, raw water
                              pumps, and other miscellaneous source projects.
                           •   Treatment - rehabilitation of a complete treatment plant or installation of any
                              treatment  system components (other than new UV and new membrane filtration).
                           •   Storage - rehabilitation of any finished water storage tank, cover of finished water
                              storage tank, and installation of hydropneumatic tanks and cisterns.
                           •   Pumping - installation, replacement,
                              or rehabilitation of any pump or pump
                              station.
                           •   Pipe - rehabilitation or replacement of
                              water  mains up to 10 percent of the system's
                              total pipe inventory.
                           •   Other infrastructure such as replacement
                              of lead service lines and installation of
                              control valves, backflow prevention, meters,
                              controls, and emergency power.

                       Documentation of
                       To  estimate a 20-year national and individual state
                       need, every project must  have an  estimated  cost.
                       There were two primary methods for assigning costs
                       to a project:
                              Systems provided an independent cost
                              estimate.
              Sarah Hudson, Indiana DWSRF
Elevated  storage  tank  in  Greensburg,
Indiana.
50

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                                                                                     Appendix C- Policies
   •   Systems provided adequate information for EPA to estimate a cost using a cost
       model.
For systems that provided a cost estimate, the documentation must:

   •   Include the date the estimate was derived.
   •   Be generated through a process independent of the Assessment.
   •   Be no more than 10 years old (earlier than January 1, 1997).
   •   Not include loan origination fees, finance charges, bond issuance fees or costs,
       interest payments on a loan, or inflationary multipliers for future projects.
Since projects with adequately documented costs were the basis of the cost models, systems
were encouraged to provide both cost and design parameters for as many projects as possible
so that the data could be used to build new cost models.

If a cost was not provided, key information on  design parameters and project type was
required for EPA to assign a cost to the project  using a cost model. However, EPA was
unable to model a few types of infrastructure projects  (e.g., projects that were too unique or
site-specific). In those cases, a documented cost estimate was required in  order for the cost
to be included in the Assessment.

As with  previous  Assessments, EPA will publish a document detailing  the costs models
developed and used in the 2007 Assessment. The publication should be  available by mid-
2009.
                                                                                                       51

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2007 Drinking Water Infrastructure Needs Survey and Assessment
52

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Appendix D  - Accuracy,  Precision,  and
Uncertainty
                                                                                         EPA Region 9
                                               A 300,000 gallon storage tank and pumping facility at a water system in
                                               Arizona.
Uncertainty, precision, and bias affect the accuracy of an
estimate based on a statistical sample. While a sample
can be designed to meet certain precision targets,
other sources of uncertainty and potential biases may
diminish the accuracy of estimates.

Uncertainty
There  are two types of  uncertainty at  play in the
DWINSA. Real  uncertainties are  created as survey
respondents predict future  needs.  EPA  is asking
systems not only to  provide their existing needs, but
also to anticipate what their future  needs will be. It is
difficult to predict future  needs. Since no one knows,
for example, when a pump will fail  or exactly  what
it will cost to fix or replace it when it does fail,  there
is real uncertainty about the accuracy of estimates of
future investment needs.
A second source of uncertainty  is the  use of a probability sample  to estimate need.
Uncertainties are created due to the inherent limitations of statistical analyses. The use of a
random sample and cost models create such stochastic (i.e., random or arising from chance)
uncertainties in the survey. In assessing the impact that the sample has on the estimate, EPA
distinguishes between two sources of stochastic uncertainty: precision and bias.

Precision
Precision is the degree to which additional measures would produce the same or similar
results. Two factors affect the precision  of sample-based estimates. First is the  inherent
variability of the data. If systems' needs are similar, the margin of error will be smaller than if
needs vary greatly across systems. The second factor is the size of the sample. Larger samples
produce more precise estimates than smaller ones.

The use of a random sample introduces uncertainty in the estimate. A different sample would
lead to a different estimate of each state's need, since there will always be some variability
among different systems selected in a sample. Because the DWINSA relies on a random
sample, the  sample should provide an unbiased estimate of the total  need.  The level of
confidence in the estimate is reflected in the confidence interval.
EPA's goal is to be 95 percent confident that the margin of error for the survey is +/- 10
percent of the total need for systems serving more than 3,300 persons for each fully surveyed

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2007 Drinking Water Infrastructure Needs Survey and Assessment
                        state, assuming that the data provided are unbiased. (The estimates for individual partially
                        surveyed states do not meet these precision targets. DWINSA also has separate precision
                        targets for systems serving 3,300 or fewer persons.)

                        If the systems that responded to the survey reported the cost of their investment needs for
                        all projects, sampling error would be the only stochastic source of uncertainty. But systems
                        do not have cost estimates for most of the projects they reported. EPA imputed the cost of
                        these projects using cost models based on cost estimates submitted for other projects. As
                        with sampling, there is a degree of predictable error associated with such modeling.

                        Bias
                        Sampling error is random.  It is as likely to lead to an estimate that is greater than the true
                        value as it is lower than the true value. Bias, however, is not random. An estimator is biased
                        if its expected value is different from the true value. An estimator is upwardly biased if it
                        consistently leads to an estimate that is greater than the true value. It is downwardly biased
                        if it  consistently leads to an estimate that is less than the true value. The DWINSA has both
                        upwards and downward biases. EPA implemented policies and procedures to  mitigate the
                        impact of these biases.



                        Past DWINSAs and  studies of these Assessments have shown that systems are likely  to
                        underestimate their needs. There is little theory or empirical evidence to suggest that systems
                        overstate their needs. This understatement is brought on for two primary reasons. One
                        is that the  bulk of a system's infrastructure is underground  in the form of transmission
                        and distribution mains. It is difficult to assess the need  for addressing these out-of-sight
                        assets. The second is that the survey assesses systems' 20-year need. Many systems have not
                        undertaken the long-term planning necessary to identify future infrastructure needs.
                                                         In part to help address the downward bias introduced
                                                         by systems' underestimating their needs, EPA enlisted
                                                         the help of states in the data collection effort. However,
                                                         because states are the recipients of the capitalization
                                                         grants  determined by  the Assessment,  there is an
                                                         incentive for states to overestimate their systems' needs.
                                                         This situation introduces a possible upward bias in the
                                                         estimate of the  needs generated by systems with state
                                                         input.

                                                         This bias likely does not apply to the DWINSA estimate
                                                         of small system need. The small system  survey is
                                                         conducted by EPA, without states' direct involvement.
                                          Photo by Rudd Coffey
Water main break repair in Watertown, Massachusetts.
54

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                                                          Appendix D - Accuracy, Precision, and Uncertainty
For this reason, there is no upward bias in this portion of the survey. In addition, because
small system surveys are conducted by trained professionals, EPA expects very little downward
bias.

Approximately 25 states  and territories and the District of Columbia have needs of less
than 1 percent of the national need. These states receive the minimum DWSRF allocation
regardless of the need reported (1  percent for states, Puerto Rico, and the  District of
Columbia; 0.33 percent for U.S. Territories). For this reason, there is likely no upward bias
in the allocation for these states, and only the downward bias discussed above influences
need in these states.

With input from states as well as a peer-review process, EPA implemented policies to help
address both upward and downward bias.  These policies included:

   •   Projects to rehabilitate or replace infrastructure generally considered in need of
       attention within a 20-year period were allowed based on system- or state-signed
       statements and project descriptions. States encouraged  systems to consider their
       entire inventory and document all such needs if legitimate.
   •   Projects to rehabilitate or replace infrastructure not necessarily considered in
       need of attention  within a 20-year period were allowed with documentation
       independent of the Assessment or  a system or state's statement if it included
       additional project-specific information such as an assessment of age, current
       condition, and maintenance history.
   •   Projects that include the installation/construction of new infrastructure generally
       received a high degree of scrutiny to ensure that they met allowability criteria
   •   Some infrastructure was only allowed if independent documentation was provided.
       They included new surface water sources, new treatment plants, the replacement
       or expansion of an existing treatment plant, and widespread replacement or
       rehabilitation of the distribution system (defined as more than 10 percent of the
       existing pipe inventory).
                                                                                                        55

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2007 Drinking Water Infrastructure Needs Survey and Assessment
56

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Appendix  E - Summary of Findings for
Systems Serving  10,000 and Fewer
Persons
Community Water Systems Serving 10,000 People and Fewer
The SDWA requires that states use at least 15 percent of their DWSRF funding for financial
assistance to community water systems (CWS) serving populations of 10,000 and fewer.
The Assessment shows that the vast proportion of needs, $320.1 billion of the total national
needs of $334.8 billion, are for CWSs. The not-for-profit noncommunity water systems
make up the much smaller portion of the total needs. Of the $320.1 billion, CWSs serving
10,000 and fewer persons represent 31.2 percent or approximately $100 billion of needs
(includes CWSs in U.S. Territories). Exhibit E. 1 presents the 20-year needs for these smaller
community systems by state and project type. It also compares the reported need of these
systems to the state's total community water system need. All data in Exhibit E. 1 exclude
needs related to not-for-profit noncommunity water systems.
                                                                       57

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   2007 Drinking Water Infrastructure Needs Survey and Assessment
Exhibit E.I: 2007 State Need Reported by Project Type for CWSs Serving a Population of 10,000
and Fewer (20-year need in millions of 2007 dollars)



CWSs Serving 10,000 or Fewer People
Transmission/
Distribution

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
District of
Columbia
Florida
Georgia
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Nebraska
Nevada
New Jersey
$1,022.1
$382.5
$695.2
$1,740.7
$3,383.5
$958.1
$367.9
$0.0
$1,802.7
$1,486.6
$2,880.2
$1,570.9
$1,159.8
$1,663.1
$952.4
$1,546.1
$390.4
$799.2
$1,921.8
$1,241.1
$1,283.4
$2,811.5
$616.6
$232.6
$672.3
Source

$38.0
$42.8
$124.5
$107.2
$521.7
$177.3
$103.2
$0.0
$218.9
$202.5
$283.1
$124.7
$173.0
$130.4
$40.2
$161.9
$77.1
$114.6
$302.8
$174.6
$186.0
$216.3
$93.7
$33.9
$87.2
Treatment

$100.7
$106.4
$305.9
$364.6
$839.4
$562.4
$108.9
$0.0
$335.3
$402.8
$920.7
$310.1
$476.8
$378.9
$154.5
$358.6
$152.8
$166.5
$754.1
$605.7
$515.7
$479.9
$165.4
$71.5
$222.9
Storage

$110.4
$99.3
$217.8
$255.7
$791.7
$247.7
$87.3
$0.0
$332.6
$288.6
$650.6
$259.0
$279.9
$246.4
$161.5
$269.4
$125.0
$207.6
$392.2
$318.0
$332.9
$400.8
$253.0
$108.9
$195.8
Other

$3.6
$6.0
$8.7
$9.4
$74.6
$12.5
$8.1
$0.0
$34.4
$29.5
$32.3
$12.3
$14.9
$12.2
$9.4
$24.5
$15.9
$8.2
$33.0
$14.5
$14.1
$21.3
$7.5
$6.7
$6.3
Total 20-
Year Need of
CWS Serving
10,000
or Fewer
People.*
$1,274.7
$637.0
$1,352.0
$2,477.7
$5,610.9
$1,958.0
$675.4
$0.0
$2,723.7
$2,410.0
$4,766.8
$2,277.1
$2,104.4
$2,430.9
$1,318.0
$2,360.5
$761.3
$1,296.1
$3,403.8
$2,353.9
$2,332.1
$3,929.9
$1,136.1
$453.7
$1,184.5
1

Total 20-
Year Need of
All CWS*
$4,095.6
$751.3
$7,392.1
$5,271.2
$38,944.9
$6,398.8
$1,366.5
$874.2
$12,695.5
$8,924.0
$14,907.0
$5,768.1
$6,094.7
$4,026.7
$4,977.0
$6,885.2
$5,345.2
$6,757.1
$11,370.6
$5,720.1
$3,233.7
$7,046.5
$1,760.6
$2,677.1
$7,758.1
% of CWS
Need Related
to Systems
Serving
10,000
or Fewer
Persons.*
31.1%
84.8%
18.3%
47.0%
14.4%
30.6%
49.4%
0.0%
21.5%
27.0%
32.0%
39.5%
34.5%
60.4%
26.5%
34.3%
14.2%
19.2%
29.9%
41.2%
72.1%
55.8%
64.5%
16.9%
15.3%
* Excludes NPNCWS
   58

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                       Appendix E - Summary of Findings for Systems Serving 10,000 and Fewer Persons
Exhibit E.I: 2007 State Need Reported by Project Type for CWSs Serving a Population of 10,000
and Fewer (20-year need in millions of 2007 dollars), cont.

New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
South Carolina
Tennessee
Texas
Virginia
Washington
Wisconsin
Partially
Surveyed
States*
Subtotal
American
Samoa
Guam
Commonwealth
of the Northern
Mariana
Islands
U.S. Virgin
Islands
Subtotal
Total
CWSs Sor»,ng 10,000 o, Fewe, Peopie
Transmission/
Distribution
$2,837.3
$1,776.3
$2,196.2
$1,580.1
$697.2
$2,262.9
$370.1
$324.3
$1,185.8
$5,579.0
$1,106.8
$2,009.8
$1,193.0
$5,756.9
$60,456.5
$18.7
$12.5
$100.1
$31.3
$162.5
$60,619.0
Source
$369.8
$233.5
$191.3
$121.4
$110.0
$367.7
$42.2
$48.0
$62.4
$735.9
$142.5
$409.5
$168.1
$792.6
$7,530.2
$2.9
$0.0
$19.9
$7.1
$29.8
$7,560.1
Treatment
$978.1
$416.3
$739.1
$421.6
$268.0
$644.0
$181.5
$95.1
$200.5
$1,816.3
$343.0
$682.9
$459.3
$1,802.8
$17,909.0
$6.7
$8.5
$24.7
$9.7
$49.6
$17,958.6
Storage
$588.2
$395.0
$406.7
$301.7
$182.3
$474.6
$104.9
$74.3
$164.1
$1,214.3
$270.1
$581.9
$290.7
$1,272.4
$12,953.0
$4.7
$11.6
$33.1
$6.9
$56.3
$13,009.3
Other
$39.0
$28.4
$31.2
$13.2
$15.1
$29.2
$11.3
$5.3
$8.4
$57.4
$21.5
$57.4
$14.5
$92.6
$844.3
$0.3
$0.0
$2.9
$0.9
$4.1
$848.4
Total 20-
Year Need of
CWS Serving
10,000
or Fewer
People.*
$4,812.3
$2,849.5
$3,564.5
$2,437.9
$1,272.5
$3,778.3
$710.1
$547.0
$1,621.2
$9,402.9
$1,883.9
$3,741.5
$2,125.6
$9,717.2
$99,693.0
$33.3
$32.6
$180.6
$55.9
$302.4
$99,995.4
Total 20-Year Rcelattedto
Need of All Scystems
cws* Servmg
cws 10,000
$27,011.1
$9,685.5
$12,316.8
$4,089.8
$2,729.8
$11,097.6
$2,536.3
$1,612.1
$3,518.8
$26,083.1
$5,970.2
$9,640.0
$5,702.6
$16,887.9
$319,923.3
$92.8
$263.9
$289.3
$253.3
$899.4
$320,822.6
17.8%
29.4%
28.9%
59.6%
46.6%
34.0%
28.0%
33.9%
46.1%
36.0%
31.6%
38.8%
37.3%
57.5%
31.2%
35.9%
12.3%
62.4%
22.1%
33.6%
31.2%
* Excludes NPNCWS
f For the 2007 DWINSA the need for states that opt out of the medium system portion of the survey is presented cumulatively and not by state. The list
of the 14 partially surveyed states can be seen in Exhibit 2.4.
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2007 Drinking Water Infrastructure Needs Survey and Assessment
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Glossary
Capital Improvement Plan (CIP): a document produced by a local government, utility,
or water system that thoroughly outlines, for a specified period of time, all needed capital
projects, the reason for each project, and the projects' costs.

Coliform bacteria: a group of bacteria whose presence in a water sample indicates the water
may contain disease-causing organisms.

Community water system (CWS): a public water system that serves at least 15 connections
used by year-round residents or that regularly serves at least 25  residents year-round.
Examples include cities, towns, and communities such as retirement homes.

Current infrastructure needs: new facilities or deficiencies in existing facilities identified
by the state or system for which water systems would begin construction as soon as possible
to avoid a threat to public health.

Engineer's report: a document produced by a professional engineer that outlines the need
and cost for a specific infrastructure project.

Existing regulations: drinking water regulations promulgated by EPA under the authority
of the Safe Drinking Water Act; existing regulations can be found at Title 40 Part 141, the
Code of Federal Regulations (40  CFR 141).

Finished water: water  that is  considered safe to drink and suitable for delivery to
customers.

Future infrastructure needs: infrastructure deficiencies that a system expects to address in
the next 20 years because of predictable deterioration of facilities. Future infrastructure needs
do not  include current infrastructure needs. Examples are storage facility and treatment
plant replacement where the facility currently performs adequately but will reach the end
of its useful life in the next 20 years. Needs solely to accommodate future growth are not
included in the DWINSA.

Ground water: any water obtained from a source beneath  the surface of the ground, which
has not  been classified as ground water under the direct influence of surface water.

Growth: The expansion of a water system to accommodate or entice future additional service
connections or consumers. Needs planned solely to accommodate projected future growth
are not included in the Assessment. Eligible projects, however, can be designed for growth
expected during the design-life of the project. For example, the Assessment would allow a
treatment plant needed now and expected to treat water for 20 years. Such a plant could be
designed for the population anticipated to be served at the end of the 20-year period.
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2007 Drinking Water Infrastructure Needs Survey and Assessment
                       Infrastructure needs: the capital costs associated with ensuring the continued protection of
                       public health through rehabilitating or constructing facilities needed for continued provision
                       of safe drinking water. Categories of infrastructure need include source development and
                       rehabilitation,  treatment,  storage,  and transmission  and  distribution.  Operation  and
                       maintenance needs are not considered infrastructure needs and are  not included in this
                       document.

                       Large water system: in this document, this category comprises community water systems
                       serving more than 100,000 persons.

                       Medium water system: in this document, this category comprises community water systems
                       serving from 3,301 to 100,000 persons.

                       Microbiological contamination: the occurrence of protozoan,  bacteriological, or viral
                       contaminants in a water supply.

                       Noncommunity water system: a public water system that is not a community water system
                       and that serves a nonresidential population of at least 25 individuals daily  for at least 60
                       days of the year. Examples  of not-for-profit noncommunity water systems include schools
                       and churches.

                       Public water system: a system that provides water to the public for human consumption
                       through pipes  or  other constructed conveyances, if such system has at least 15 service
                       connections or regularly serves an average of at least 25 individuals daily at least 60 days out
                       of the year.

                       Regulatory need: a capital expenditure required for compliance with Safe Drinking Water
                       Act regulations.

                       Safe Drinking Water Act (SDWA): a law passed by Congress in 1974 and amended in  1986
                       and 1996 to ensure that public water systems provide safe drinking water to consumers (42
                       U.S.C.A. §300f to 300J-26).

                       Small water system: in this document, this category comprises community water systems
                       serving up to 3,300 persons.

                       Source rehabilitation and development: a category of need that includes the costs involved
                       in developing or improving sources of water for public water systems.

                       State: in this document, state refers to all 50 states of the United States plus Puerto Rico, the
                       District of Columbia, American Samoa,  Guam, the Commonwealth of Northern Mariana
                       Islands, and the U.S. Virgin Islands.

                       Storage: a category of need that addresses finished water storage for public water systems.
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                                                                                                 Glossary
Supervisory Control and Data Acquisition (SCADA): an advanced control system that
collects all system information and allows an operator, through user-friendly interfaces, to
view all aspects of the system from one place.

Surface water: all water that is open to the atmosphere and subject to surface run-off,
including streams, rivers, and lakes.

Transmission and distribution: a category of need that  includes installation, replacement,
or rehabilitation of transmission or distribution lines that carry drinking water from the
source to the treatment plant or from the treatment plant to the consumer.

Treatment: a category of need that includes conditioning water or removing microbiological
or chemical contaminants. Filtration of surface water, pH  adjustment,  softening, and
disinfection  are examples of treatment.

Watering point: a  central source from which  people who do not have piped water can
obtain drinking water for transport to their homes.
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2007 Drinking Water Infrastructure Needs Survey and Assessment
                                                   Jim McRight, North Carolina Department of Environment and Natural Resources
                        A view of a treatment plant and underground pipe gallery in North Carolina.
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