Wausau positioned to receive millions in federal funds to replace private-side lead service lines

WAUSAU − Property owners in Wausau could soon be required to replace lead water pipes that serve their property and a new federal program could help significantly reduce the cost of this measure.

A recent Environmental Protection Agency rule proposal would require nationwide lead pipe removal within 10 years of the rule's adoption. Replacement of lead service lines could cost a property owner on average between $1,200 and $12,300 per line, according to 2019 EPA documents, but new federal infrastructure money may take on a lot of that cost.

In January 2023, Wausau, along with nine other cities in Wisconsin and 30 other cities in three other states, was selected by the EPA to be in the Lead Service Line Replacement Accelerators initiative.

Building off the work the Accelerators initiative began, a new federal program would train and hire plumbers and other professional contractors in an expansive effort to replace Wausau’s roughly 8,000 private-side lead service lines by 2028 pending final contract approvals. This would shorten a previous city-wide replacement plan from 15 years to five.

“It’s a very small window of opportunity where, if getting rid of lead is important to you, you’re never going to see this influx of (federal funding) again,” Shawn Kerachsky, president of Community Infrastructure Partners LLC (CIP) said at a May 2023 Wausau Water Works Commission meeting.

An agreement between the city of Wausau, Wausau Water Works and CIP to carry out lead service line replacement and related infrastructure work received unanimous approval at the Dec. 19 Common Council meeting, pending a final agreement of language regarding open meetings and open records laws.

At the Jan. 23 Common Council meeting, District 3 Alderperson Tom Kilian brought a motion to reconsider the December agenda item. The motion was defeated 8-3 with Kilian, District 4 Alderperson Doug Diny and District 5 Alderperson Gary Gisselman voting in the minority.

If the contract is approved, Wausau would be the first city in the nation to utilize a Community Based Public-Private Partnership (CBP3) delivery model for private-side lead service line replacement. CBP3s have been utilized in several communities across the U.S. in the last decade including Seattle, Prince George County, Maryland, and Chester, Pennsylvania, generally on projects related to stormwater and green infrastructure.

One CBP3, Fresh Coast Protection Partnership, has been working with Milwaukee Metropolitan Sewerage District since 2020 for more effective stormwater runoff and flood mitigation efforts in the Greater Milwaukee Region.

Sean Agid, CIP’s chief business officer, explained in a September Wausau Water Works Committee meeting how this model allows CIP to focus on both workforce development and contractor development. CIP will work with labor unions to bolster apprenticeship programs in the area, with the goal of having more professionals in a couple years to complete the work in Wausau. They will also work with contractors to quickly get them certified to do lead removal and further provide assistance for performing utility-level work.

“When you communicate that you have a five-year program to do this and you complete year one, you’re going to continue to attract contractors through outreach, through the workforce development piece,” Kerachsky said in September. “You just continue to expand your crews and by getting out ahead of everybody else you can establish that that program here is sustainable.”

Revisions made to the EPA's Lead and Copper Rule in 2021 recommends both private-side and public-side lead service lines be done together and tied financial assistance to that course of action. Starting out, Wausau's program will target the properties that already had their public-side replaced, as research shows partial replacement of a service line may increase risk of lead leeching into the water.

For several months, city staff and the Water Works Commission have been working to draft an ordinance mandating lead service line replacement based on similar ordinances that have passed in other cities. The ordinance would improve the city's opportunities to receive grant and other funding. Draft language of the ordinance has included sections stating the mandate would only be active while government sources of financial assistance are available for removal of lead service lines.

Property owners are responsible for costs related to private-side service line replacement but they are typically eased through financing or special assessments. The EPA's CBP3 delivery model engages with local contractors to simplify the bidding process for these jobs and completing a certified project. If the city proceeds with the program, property owners would get access to principal forgiveness and low-interest loans created by the federal legislation. Other cost assistance funds may come from grants from nonprofit organizations or financing programs through the utility, though many details are yet to be determined.

The EPA announced proposed Lead and Copper Rule Improvements in November 2023 that require all lead service lines be removed within 10 years as research has consistently found there is no safe level of human lead exposure and health care costs of exposure outweigh the costs of pipe replacement.

The 2021 Bipartisan Infrastructure Act sent $15 billion to the states to fund lead service line removal. Wisconsin’s $400 million portion will be granted to municipalities through a competitive application process developed by the Department of Natural Resources. Wausau could gain a disproportionate benefit from being a “first mover” on these funds, which are available for a limited time and other cities do not appear ready to apply for yet, Kerachsky told the Wausau Water Works Commission.

Tom Perez, senior advisor to President Joe Biden and director of the White House Office of Intergovernmental Affairs, visited Wausau in November to highlight the federal government’s clean drinking water efforts. Mayor Katie Rosenberg was added to the EPA’s Local Government Advisory Committee in January to share advice and experiences with implementing major water quality efforts in the city.

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Erik Pfantz covers local government and education in central Wisconsin for USA-TODAY NETWORK-Wisconsin and values his background as a rural Wisconsinite. Reach him at epfantz@gannett.com or connect with him on X (formerly Twitter) @ErikPfantz.

This article originally appeared on Wausau Daily Herald: Wausau could receive millions in federal funds to replace lead pipes