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2O21 EXECUTIVE SUMMARY
1 Optimism prevails in resilient water sector Despite pandemic, positive trend continues
During a year underscored by the global COVID-19 AWARENESS AND PREPARATION pandemic, water professionals − hailed as essential AWWA’s annual survey, launched in 2004, is a service providers − persevered through unprecedented self-assessment of the sector’s ongoing ability challenges to deliver safe, reliable water and sanitation to safeguard public health, support and strengthen services to the public. communities, and protect the environment. The This resilience within the water sector is underscored SOTWI report is intended to help water utilities, by a record level of optimism recorded in the 2021 service providers, regulators and researchers State of the Water Industry (SOTWI) report. The report identify and prepare for challenges, opportunities is based on an annual survey of North American water and trends impacting the water community. professionals conducted by the American Water The 2021 report, highlighted in this Executive Works Association (AWWA) between September Summary, compiles data from 3,021 survey and November 2020. participants on water sector issues including Despite the pandemic, as well as extreme weather infrastructure, emergency preparedness, regulatory events and other 2020 challenges, survey participants compliance and water resources management. on average rated the current overall health of the water This year’s report also investigates the impacts Optimism industry at 5.24 on a scale of 1 (not sound) to 7 (very of the unprecedented COVID-19 pandemic on sound), the most optimistic in the 17 years of the the water sector. SOTWI survey. Using the same scale, they also rated the soundness of the water industry in five years at 5.01. As shown in the graph below: “The rise in optimism from water leaders doesn’t The 5.24 rating for the sector’s current overall health surprise me at all. The pandemic and the is the fourth consecutive increase since the low of 4.34 in 2017. response to natural disasters in many regions “ The 5.01 rating for the sector’s soundness in five “I attributed last year’s rise in optimism to also inspired us to shake off the “we have years also is the highest in the history of the survey always done it that way” mentality. In some an ‘accumulation effect.’ In other words, as and the fourth consecutive increase since the low of we accumulate knowledge and experience ways we’ve leapt 10 years ahead of where we 4.34 in 2017. “ might have been. Working from home for those to solve modern-day water challenges, we State of the Water Industry: become more optimistic about the current who can? Check. New ways of working, and new All respondents 2004–2021 (n = 2,916) 5.40 and future health of the water sector. This processes? Check. And as water professionals 5.20 5.24 5.00 5.00 4.90 4.86 4.92 year’s continuing upward trend–especially who dealt with wildfires, hurricanes, and winter 4.79 4.85 5.01 4.80 4.87 4.70 4.81 4.64 4.61 4.65 4.63 4.73 4.56 4.74 during a pandemic–reinforces this theory storms can attest, there is nothing like a real-life 4.60 4.51 4.69 4.64 4.63 4.47 4.47 4.58 4.57 4.46 4.51 4.54 4.34 4.40 4.47 4.43 and demonstrates the growing confidence disaster that needs to be addressed with funding Current 4.36 4.35 4.39 4.20 In 5 Years in our ability to work together on solutions. and infrastructure so it never happens again. 4.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Check. We’ve always been resilient, but what the As a result, we know we can support a ©AWWA 2021 State of the Water Industry last year reinforced is that we are adaptable too, better world through better water.” and that’s a pretty unbeatable combination.” David LaFrance, CEO, AWWA Melissa Elliott, President, AWWA Full report available at awwa.org/SOTWI 2 3 Infrastructure, finance remain top issues Emergency preparedness jumps in importance
For the ninth straight year, survey participants ranked the American Jobs Plan − While the Biden water sector’s two most pressing challenges as: Administration’s infrastructure plan was not introduced Renewal and replacement of aging water and at the time of the survey, early proposals include wastewater infrastructure, No. 1 $56 billion in grants and loans to upgrade and modernize water systems, $45 billion for lead Financing for capital improvements, No. 2 service line replacement and $10 billion to monitor Given the events of the past year, it’s not surprising that and remediate PFAS. Congress introduced several bills “emergency preparedness” made the biggest leap in this in early 2021 aimed at increasing federal support for year’s ranking, up from No. 8 last year to No. 4 in the upgrading the nation’s water infrastructure. 2021 report. Altogether, survey participants from small, medium and Issues Facing the Water Industry in 2021 Infrastructure large utilities similarly ranked the top six challenges. 2021 Ranking Water Sector Challenge Beyond these issues, very large utility participants placed Renewal and replacement of aging water and wastewater a high priority on compliance with current and future 1 infrastructure regulations. Smaller utilities were more concerned with 2 Financing for capital improvements public understanding of the value of water systems, 3 Long-term water supply availability services and resources. 4 Emergency preparedness At right is a list of the top 20 issues impacting the water 5 Public understanding of the value of water systems and sector compiled from survey data. services 6 Watershed/source water protection COMPLEX ISSUES, VARIED SOLUTIONS 7 Public understanding of the value of water resources The top two recurring challenges reflect the complexity “The aging infrastructure of Great Lakes 8 Aging workforce/anticipated retirements of how water utilities address and pay for the replace- Water Authority continues to deteriorate, ment of aging infrastructure. The water community, 9 Compliance with current regulations “raising maintenance and repair costs. To along with public and private partners, continues to 10 Groundwater management and overuse build resiliency, we are simultaneously develop and refine innovative solutions. These include: 11 Compliance with future regulations 12 Cybersecurity issues working to meet stringent standards for WIFIA − The Water Infrastructure Finance and 13 Cost recovery (pricing water to accurately reflect the safe and clean drinking water while Innovation Act (WIFIA) became law in 2014 due cost of service) in part to the efforts of AWWA and its members. 14 Talent attraction and retention investing in the maintenance and renewal The U.S. Environmental Protection Agency (EPA), 15 Asset management of critical infrastructure that is vital to which runs the program, reported in March 2021 16 Water conservation/efficiency our community. By prioritizing water that WIFIA had closed on 46 loans, providing 17 Drought or periodic water shortages sector financing now, we can better $9 billion in financing. This helped finance $19.4 billion in water infrastructure projects in total and created 18 Improving customer, constituent, and community provide stability while continuing to relationships LEARN MORE: 47,000 jobs. 19 Data management protect our water quality.” M29 Water Utility Capital Financing AWIA − America’s Water Infrastructure Act of 2018 20 Water loss control Source Water Protection Toolkit Cheryl Porter, Chief Operating Officer, reauthorized WIFIA and the Drinking Water and Clean ©AWWA 2021 State of the Water Industry Water State Revolving Funds through Sept. 30, 2021, AWWA Water Infrastructure Conference Great Lakes Water Authority the end of the federal fiscal year. During the spring AWWA/WEF Utility Management Conference of 2021, Congress began work on bills to reauthorize WIFIA and the state revolving loan fund programs with significant increases in funding. 4 5 Pandemic triggers unprecedented challenges Workforce, operations, revenue, supplies impacted Pandemic As COVID-19 spread across borders in early 2020, SHARING CRITICAL INFORMATION people were advised to stay home, social distance As the pandemic evolved, the water sector provided and wash hands frequently. The water community important and ongoing information to the public and overcame unprecedented challenges to sustain other key stakeholders about the safety and reliability business operations, provide safe and reliable water and of water services. Utilities turned to a variety of wastewater services and protect their essential workers. communication platforms to engage their communities. To help gauge how member organizations were adapting to the pandemic, AWWA conducted four surveys in 2020. Effectiveness of various platforms for utility communication The Association also partnered with the Association of Website 60.6% Monthly billing 60.3% Metropolitan Water Agencies and Raftelis to provide a Mass media 44.0% report, “The Financial Impact of the COVID-19 Crisis on (television, radio, ... U.S. Drinking Water Utilities.” Press conferences 37.4% Print and/or electronic... 47.9% The table below shows how utility participants ranked a Social media engagement 54.9% set of business challenges caused by the pandemic in % Indicating platform is Effective to Very effective
the second quarter (Q2) of 2020 and then again in Q3. ©AWWA 2021 State of the Water Industry In general, the critical nature of the challenges lessened over time, except for operator licensing, which saw a The figure above shows how survey participants rated slight increase. the effectiveness of their utility’s communication on the safety of water and reliability of water services during the pandemic. More than 60% found their utility’s website and monthly billing effective to very effective, followed by “Thanks to round-the-clock response social media engagement. planning and execution, Des Moines Water Works operated at full capacity “ Ranking of challenges to sustaining business operations for Q2 and Q3 2020 during all phases of the pandemic, Q2 Q3 including being one of the first utilities Rank Challenge Rank Challenge 1 Disruption in supply chain for personal protective equipment 1 Disruption in supply chain for personal protective equipment in the nation to sequester personnel in 2 Revenue generation/cash flow 2 Revenue generation/cash flow campers on-site to ensure their health 3 Lack of options for operators to get CEUs to keep license current 3 Lack of options for operators to get CEUs to keep license current and the continued flow of safe drinking 4 Continuity of operations due to absenteeism 4 Continuity of operations due to absenteeism LEARN MORE: 5 Impacts on field operations (meter reading, repairs, etc.) and/or 5 Need to separate or distance workforce from support/contract water to the public. We updated our plan treatment operations service (e.g., biosolids, laboratory, delivery of essential materials) First AWWA COVID-19 survey daily in response to new science and 6 Need to separate or distance workforce from support/contract 6 Impacts on field operations (meter reading, repairs, etc.) and/or Second AWWA COVID-19 survey service (e.g., biosolids, laboratory, delivery of essential materials) treatment operations Third AWWA COVID-19 survey unforeseen challenges.” 7 Being able to hold required public board meetings 7 Being able to hold required public board meetings 8 Disruption in supply chain for other materials besides treatment 8 Disruption in supply chain for other materials besides treatment Fourth AWWA COVID-19 survey Ted Corrigan, Des Moines Water Works chemicals chemicals The Financial Impact of the COVID-19 Crisis 9 Disruption in supply chain for treatment chemicals 9 Disruption in supply chain for treatment chemicals on U.S. Drinking Water Utilities CEO & General Manager 10 Delay of mandated equipment repairs 10 Delay of mandated equipment repairs Responding to Water Stagnation in Buildings 11 Reduced number of certified operators to meet required staffing 11 Reduced number of certified operators to meet required staffing with Reduced or No Water Use: A Framework rules rules for Building Managers 12 Limitations of laboratory testing capacity 12 Challenges due to flushability Trending in an Instant: A Risk Communication 13 Challenges due to flushability 13 Limitations of laboratory testing capacity Guide for Water Utilities CEU—continuing education unit
6 ©AWWA 2021 State of the Water Industry 7 Preparedness and resiliency planning on track Cybersecurity an increasing concern Preparedness Challenges faced by the water community in 2020 went beyond the pandemic to include extreme events such Deadlines for complying with AWIA risk and resilience provisions Estimated Number Risk and as historic wildfires, drought and tropical cyclones. of Impacted Resilience Emergency The National Centers for Environmental Information Population Community Assessment, Response Served* Water Systems Before Plan recorded 22 weather and climate events during the year, ≥100,000 435 Mar. 31, 2020 Sept. 30, 2020 with losses exceeding $1 trillion, a single-year record. 50,000–99,000 594 Dec. 31, 2020 June 30, 2021 Because of the essential nature of its business, the water 3,300–49,000 8,295 June 30, 2021 Dec. 30, 2021 sector is well-prepared and practiced at planning for Source: Via S., March 2019. Journal AWWA, https://doi.org/10.1002/awwa.1247 routine and extreme events and had been focused on AWIA—America’s Water Infrastructure Act of 2018 emergency preparedness and resilience prior to 2020. *Wholesale systems use total population This was prompted in part by requirements of the ©AWWA 2021 State of the Water Industry America’s Water Infrastructure Act (AWIA) of 2018. These provisions include: CYBERATTACKS A SERIOUS THREAT Community water systems serving more than The survey also highlighted the growing criticality 3,300 people must prepare a risk and resilience of cybersecurity within the water sector. This issue assessment considering threats from malevolent increased in the ranking of top water sector challenges acts and natural hazards, and to No. 12 from No. 16 in 2020. Even though the survey These utilities must also develop an emergency plan was completed before the highly publicized February addressing these threats to lessen the impact on the 2021 cyberattack on a Florida water system, prior health, safety and supply of drinking water. instances of ransomware attacks and data breaches The table above shows compliance deadlines for have demonstrated the need for water utilities to be “We take emergency preparation and these provisions. vigilant in preventing similar attacks. response seriously at San Antonio Water Survey participants indicated they are on schedule Asked whether their utility was planning, revising or System. From disaster planning exercises “ for meeting the AWIA requirements: assessing information technology needs to defend to installing electrical heat wraps on 93% of utility respondents said they had fully against a cyber intrusion: infrastructure to actually stationing staff at developed or were developing an emergency 20% of survey participants said their utility had fully critical pump stations in advance of severe response plan implemented some form of plan to address LEARN MORE: weather, we aim to be prepared for every 80% said they had fully implemented or were in cyber intrusion Emergency Preparedness and Response for Water Utilities DVD contingency. We also learn from every the process of implementing a risk and resilience 20% said their utility was assessing its cyber assessment intrusion needs Security and Emergency Planning for Water and storm, including the most recent freeze Wastewater Utilities Nearly 53% of utility respondents said their utility which presented new challenges from a Emergency Power Source Planning for Water and had mutual aid or collaboration with nearby utility Wastewater prolonged, system-wide loss of power M19 Emergency Planning Water and Wastewater systems fully implemented before the pandemic Utilities standpoint.” M60 Drought Preparedness and Response Robert Puente, President & CEO, Cybersecurity Risk & Responsibility Guide San Antonio Water System Cybersecurity Guidance Utility Risk & Resilience Certificate Program
8 9 Regulatory compliance an ongoing concern PFAS, lead and copper top water challenges Regulatory The water sector’s ability to comply with regulations Of the utility survey participants: and health advisories requires extensive attention 79% said their utility has fully implemented and the current focus is on addressing per- and or is in the process of implementing a lead service polyfluoroalkyl substances (PFAS) and lead in line replacement program. drinking water.
Survey participants reflected the weight of this Regulatory concerns ranked by all survey respondents responsibility in two of the top water issues identified All in the 2021 report: Weighted % Extremely Respondents Contaminant Average Concerned (n = ) Compliance with current regulations, No. 9 PFOA/PFOS 3.14 17.6 2,136 (No. 5 among very large utility respondents) Lead and copper 3.23 14.0 2,336 Compliance with future regulations, No. 11 Nonpoint source (No. 6 among very large utility respondents) pollution 3.21 12.5 2,227 All survey participants were asked about their levels of Point source pollution 3.16 11.2 2,268 concern regarding the water sector’s ability to comply Pathogens 3.09 13.4 2,290 with current regulations and health advisories. The table Cyanotoxins 3.09 10.0 2,105 to the right summarizes their responses. Disinfection byproducts 3.09 9.1 2,267 PFOA/PFOS was determined to be the top concern for the second consecutive year. Lead and copper Nutrients 3.08 10.0 2,201 was second highest, moving up from No. 7 in last Combined sewer overflows 3.02 10.6 2,199 year’s report. “I served on the AWWA Board of Directors Perchlorate 2.89 6.6 2,064 The EPA released its long-awaited revision of the Lead when the National Drinking Water and Copper Rule in January 2021, as former U.S. Pres- Arsenic 2.82 6.6 2,194 Advisory Council gave the EPA the ident Trump’s administration was completing its work Radionuclides 2.76 7.4 2,082 “ and newly elected President Biden was entering office. PFOS - perfluorooctane sulfonate, PFOA—perfluorooctanoic acid recommendation to include lead service In March 2021, under the Biden Administration, EPA line removal as part of the Lead and ©AWWA 2021 State of the Water Industry published two Federal Register notices related to Copper Rule (LCR) update. As a board, revisions to the Lead and Copper Rule. we endorsed the recommendation. Here One is a final rule extending the effective date of the in Green Bay, we put together a plan of Lead and Copper Rule by three months to June 17. action to remove every lead service line — The second is a proposed rule on extending the effective public and private — over the course date an additional six months, to Dec. 16, and to extend the current compliance date by nine months to LEARN MORE: of five years. This was accomplished Sept. 16, 2024. Source Water Evaluation Guide for PFAS by collaborating with our city, state, and Summary of PFAS Toxicological Research federal governments.” Lead Communications Toolkit ANSI/AWWA C810, Replacement and Flushing of Nancy Quirk, General Manager, Lead Services Lines Green Bay Water Utility
10 11 Managing and protecting water resources Utilities making inroads in supply and quality Managing Survey participants rated several issues related to water PROTECTING DRINKING WATER QUALITY resources management as important challenges in the One of the first critical barriers against drinking water water sector. These included: contamination is protecting the source from potential Long-term water supply availability, No. 3 risks and impacts. A strong source water protection Watershed/source water protection, No. 6 program can be one of the most cost-effective methods for maintaining, safeguarding and improving the quality Groundwater management and overuse, No. 10 and quantity of source water and drinking water. Of the utility participants in the survey: Utility ability to meet long-term water supply needs 79% said their utility had completed, or was in the
Fully prepared 21.1% process of implementing, a source water protection program Very prepared 43.4% Among very large utility respondents, this increased Moderately 26.5% prepared to 86% Slightly prepared 6.3% The issue of groundwater management and overuse Not at all increased in importance in the 2019 and 2020 SOTWI prepared 1.7% reports, in part in response to increasing drought and 0.0% 10.0% 20.0% 30.0%60.6% 40.0% 50.0% wildfires in California and other Western states. The concern remained among the top 10 issues in the ©AWWA 2021 State of the Water Industry 2021 report. “To serve Southern California's growing Of the utility survey participants: LONG-TERM WATER SUPPLY population and economy, Metropolitan's 77% said their utility had completed, or was in When asked how prepared their utility will be to meet its the process of implementing, a groundwater integrated resource plan is focused on long-term water supply needs, the responses of utility management plan “maintaining and expanding a diverse participants indicated: water supply mix. We invest in local resource 92% think their utility is moderately, very or fully programs such as water recycling, ground- prepared to meet long-term water supply needs water recovery and storage, desalination This result is promising because just 8% indicated their organization would be challenged to meet and conservation, to offset water imported demands, down from 12% in the 2020 and 2019 SOTWI from Northern California and the Colorado reports. The breakdown of responses is shown in the River Aqueduct. We proactively protect figure above. and manage source waters and optimize treatment operations to deliver water that LEARN MORE: G480-20 Water Conservation and Efficiency meets or surpasses drinking water Program Operation and Management regulations and consumer expectations.” M52 Water Conservation Programs M71 Climate Action Plans Heather Collins, Water Treatment Manager, M60 Drought Preparedness and Response Metropolitan Water District of Southern California
12 13 Water’s most important asset: its workforce Addressing recruitment, training, retention, retirements
Workforce Workforce strategies are critical for the ongoing To address critical staffing shortages in water and success of the water sector. These include recruiting, wastewater utilities, AWWA and other public and training and retaining skilled employees, as well as private water-related organizations are collaborating succession planning. on a national initiative spearheaded by EPA. The Water According to a report from the Brookings Institution, Sector Workforce Initiative will recruit, train and about a third of U.S. drinking water and wastewater retain more skilled workers for water sector careers, operators will become eligible for retirement over the particularly with water and wastewater utilities. next decade. As the world’s largest organization of water supply Challenges related to the water sector’s current and professionals, AWWA has long been involved in future workforce ranked among the top 20 in the 2021 educating the public about water sector careers. SOTWI report. These included: This includes: Aging workforce/anticipated retirements, No. 8 Providing scholarships for training and education Talent attraction and retention, No. 14 Recruiting military veterans In addition, survey participants were asked to list Transitioning service members into the water sector other issues they felt ranked at least “very important.” Offering professional development opportunities, Their responses included these workforce concerns: including continuing education credits, Retention of institutional knowledge of long-term certification programs, conference programming retiring staff and other resources Retaining operators and training and certifying young “East Bay Municipal Utility District recognizes future operators our employees who make it possible to build, Mentorship and building a pipeline of young talent maintain and operate the water and wastewater Training the workforce in new technology, especially “ programming and data analytics infrastructure that supports our community. We are committed to attracting, developing and Pay scale relevant to the criticality of the industry retaining a diverse, high-performing workforce Nationwide licensing to ease hiring from other states dedicated to public service, innovation and a Compensation to reflect the value of personnel and culture of inclusion and belonging. We're proud attract new employees with knowledge to perform the work of our internships and training programs for students, young adults, individuals with disabilities, and our employees, to promote
LEARN MORE: and develop careers in water and wastewater Workforwater.org services.” Veterans Workforce Initiative Clifford Chan, General Manager, The Water Workforce: Strategies for Recruiting and Retaining High-Performance Employees East Bay Municipal Utility District M5 Water Utility Management
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