According to the U.S. Environmental Protection Agency, Over 9 Million U.S. Homes Are Currently Served Through Lead Water Pipes
Washington, D.C. — U.S. Senators Michael Bennet (D-Colo.) and Jim Justice (R-W. Va.) introduced the Financing Lead Out of Water (FLOW) Act to reduce exposure to lead in old water pipes by making it easier for cities and utilities to issue bonds to finance replacement projects. The FLOW Act provides an explicit guarantee in the tax code to allow public water utilities to issue tax-exempt bonds to help pay for the removal and replacement of both publicly- and privately-owned lead service lines, resolving the full scale of the issue for residents in areas with lead pipes.
“No parent in America should worry if the water their kids drink is safe,” said Bennet. “The FLOW Act cuts red tape and reduces the financial burdens that homeowners and families face when replacing their lead pipes. This bill draws on the experience and leadership of Denver Water, which has shown the rest of the country what’s possible by committing to replace every customer-owned lead pipe, especially in underserved neighborhoods. The rest of the country can learn from our success in Colorado and use the tax code to help eliminate lead pipes from their communities.”
“There are 20,000 lead lines in West Virginia. There is absolutely no excuse for families to wait on red tape for clean water. This bill is crystal clear—it will cut through bureaucracy, speed up progress, and help deliver safe, clean water for West Virginians and all Americans,” said Justice.
The legislation also helps lead pipe replacement funds from the American Rescue Plan Act and the Bipartisan Infrastructure Law make a deeper impact on replacing the nation’s essential water infrastructure. In 2024, Bennet welcomed $32.8 million from the Environmental Protection Agency (EPA) to help identify and replace lead service lines and improve water quality in Colorado.
According to the EPA, over 9 million homes in the U.S. currently have lead water pipes, also known as lead service lines, that connect the main water line located underground to their home’s internal plumbing system. A 2024 statewide study by Water Education Colorado showed that 23 Colorado cities have roughly 20,000 aging lead water delivery pipes that could taint drinking water. Although public utilities across the country are replacing their publicly-owned lead service lines, replacement projects have moved slowly for privately-owned pipes serving residences due to the costly financial responsibility of replacing these lines.
Bennet first introduced the FLOW Act in 2022. The legislation draws on the experience of Denver Water, a public water utility that is financing the removal of all public and private lead service lines in its service area at no cost to its customers by issuing tax-exempt bonds. Denver Water found that issuing tax-exempt bonds for this purpose required a costly and time-consuming analysis of its service area as part of the ‘private business use test’ administered by the IRS to qualify for the tax exemption, adding months to its effort. The FLOW Act provides a solution to this issue for public water utilities.
“The FLOW Act provides an elegant solution to a costly problem confronted by water utilities across the country. Denver Water thanks Senator Bennet for his commitment to this legislation and is grateful to him and Senator Justice for their ongoing work toward eliminating exposure to lead in drinking water and improving public health,” said Alan Salazar, CEO/Manager of Denver Water.
“Fully removing lead service lines is a priority of many drinking water systems, but red tape from the IRS can slow down the process when the utility seeks to finance these critical infrastructure projects with tax-exempt bonds. Federal policy should make it easier, not harder, to fully replace lead service lines, so AMWA strongly supports the FLOW Act and we commend Senator Bennet and Senator Justice for their commitment to this issue. We look forward to passage of this important legislation,” said Tom Dobbins, CEO of the Association of Metropolitan Water Agencies.
The FLOW Act is also supported by the American Water Works Association, Government Finance Officers Association, National Association of Counties, National League of Cities, U.S. Conference of Mayors, and the U.S. Water Alliance.
The bill text is available HERE. A summary of the bill is available HERE.