From Source to Tap: A Hearing to Examine Challenges and Opportunities for Safe, Reliable, and Affordable Drinking Water

Environmental Permitting and Water InfrastructureHouse Energy and Commerce Subcommittee on Environment · 2026-02-24 · 119th Congress
The House Energy and Commerce Subcommittee on Environment held this hearing to examine the safety, reliability, and affordability of the nation's drinking water systems as key Infrastructure Investment and Jobs Act (IIJA) water funding authorities are set to expire at the end of the fiscal year. Begins at 0:17:10
Transcript
Highlights

Title

Reauthorizing federal drinking water infrastructure funding and standards

Purpose

The House Energy and Commerce Subcommittee on Environment held this hearing to examine the safety, reliability, and affordability of the nation's drinking water systems as key Infrastructure Investment and Jobs Act (IIJA) water funding authorities are set to expire at the end of the fiscal year. The hearing came weeks after a Potomac Interceptor sewer line rupture released more than 200 million gallons of untreated sewage into the Potomac River, prompting a D.C. state of emergency0:17:52 and a committee investigation into the incident. Witnesses from a small Alabama utility, a Kentucky regional water district, EPA's Office of Inspector General, and the Natural Resources Defense Council testified on Safe Drinking Water Act modernization, State Revolving Fund (SRF) reform, PFAS and lead regulation, and water affordability. Begins at0:17:10

Who spoke

Chairman Buddy Carter/Rep. Palmer (Subcommittee Chair)0:17:10: Opened by describing the Potomac sewage spill and EPA/FEMA cleanup response0:17:29; outlined the hearing's goals of examining SRF spending oversight and modernizing the Safe Drinking Water Act0:19:25.

Ranking Member Paul Tonko (D-NY)0:20:12: Stressed local governments bear ultimate responsibility for water delivery0:20:36; cited EPA's $625 billion 20-year needs estimate0:21:49 and the IIJA's $50 billion water investment including $15 billion for lead line replacement0:22:13; called for a permanent low-income water assistance program0:25:04.

Chairman Brett Guthrie (R-KY), Full Committee Chair0:25:34: Noted IIJA provided EPA $50 billion, more than five times the agency's average annual appropriation0:26:49; argued federal money "cannot be the only solution" and highlighted the Potomac Interceptor failure0:26:20.

Ranking Member Frank Pallone (D-NJ), Full Committee0:28:59: Cited ASCE's C-minus grade for U.S. water infrastructure0:28:59; argued the SRF is the main federal funding source and that safe and affordable water are not mutually exclusive0:31:32; noted community project funding for towns' lead pipe removal0:32:50.

Nicole Murley, Acting/Deputy Inspector General, EPA0:34:22: Testified IIJA included over $30 billion for the drinking water SRF0:35:43; identified weak internal controls, incomplete documentation, and missing audited financial statements as fraud risks0:37:48; said six states still receive construction bids in paper format, hampering oversight0:59:06; confirmed OIG has flagged "unknown and improper payments" in the SRF and recommended EPA reassess program risk levels1:10:47.

Erik Olson, Senior Strategic Director for Health & Food, NRDC0:39:34: Said drinking water needs are estimated at $1–1.6 trillion industry-wide versus EPA's $625 billion figure0:40:20; opposed the administration's move to repeal PFAS standards as "unscientific and unlawful"0:41:19; noted federal investment covers less than 5% of total water spending and less than 1% of needs0:41:46; said the public spends over $50 billion a year on bottled water0:42:36; warned of underestimated lead pipe counts and salt-water/wildfire climate threats to infrastructure1:43:011:47:33.

Eric Hill, General Manager, Russellville Water & Sewer Board0:44:18: Described managing a 26-employee utility with no in-house engineer, compliance officer, or attorney0:45:08; said $1 million in SRF funds funded a new SCADA/cybersecurity system, water main and pump upgrades0:46:25; said applying in 2022 for SRF funds meant work is only now beginning, driving up contractor costs amid shortages0:55:25; supported H.R. 1267 exempting water utilities from PFAS liability as "passive receivers"0:48:50; said small systems cannot afford PFAS removal costs like large systems can1:09:06.

Lindsey Rechtin, President & CEO, Northern Kentucky Water District0:49:18: Said NKWD serves nearly 300,000 people via three treatment plants and 1,300+ miles of main0:49:47; cited 17 SRF loans totaling over $110 million over two decades0:53:16; said every $1 million invested in water infrastructure generates $2.5 million in economic output0:52:02; said a single nationwide day without water service would cost $120 billion and 527,000 jobs0:52:51.

Chairman Palmer (questioning)0:54:32: Asked Hill about SRF application/reporting burdens and cyber vulnerabilities0:55:25; asked Murley about EPA-state data interoperability, noting some states track bids on paper0:58:07.

Rep. Scott Peters (D-CA)1:11:34: Promoted his DROUGHT Act to raise the WIFIA federal cost-share cap above 80% for drought-affected and low-income projects1:12:04.

Rep. Bob Latta (R-OH)1:14:35: Asked about operator workforce retirements and contractor/supply-chain shortages; Hill described EPA technical-assistance response times of about three days1:16:56.

Rep. Raul Ruiz (D-CA)1:19:58: Cited EPA estimates that 12.1–19.2 million households lack affordable water access, needing $5.1–8.8 billion in annual assistance1:20:25.

Rep. Morgan Griffith (R-VA)1:25:16: Raised a 2022 Roanoke County "GenX" PFAS detection (51–57 ppt) predating EPA's 10 ppt health advisory, and a $1.9 million contamination settlement1:25:381:29:16; both Hill and Rechtin argued utilities as passive receivers should bear no liability1:26:42.

Rep. Darren Soto (D-FL)1:40:16: Highlighted Florida's $275 million in federal lead-pipe funding and criticized EPA's proposed 40% budget cuts and rollback of the climate endangerment finding1:42:05; pressed Murley on OIG's role reviewing the endangerment finding rollback1:44:20.

Rep. Troy Carter (D-LA)1:45:18: Described Mississippi River saltwater intrusion threatening New Orleans-area drinking water1:46:13; questioned Murley's independence in probing waste, fraud and abuse1:50:14.

Rep. Julia Letlow (R-ND)1:50:45: Asked Hill how Congress should adjust SRF timelines for small-system capacity, citing contractor shortages1:51:55; raised EPA's cost-benefit balancing of health protections and affordability1:54:07.

Rep. Rob Menendez (D-NJ)1:56:16: Cited Newark's replacement of 23,000 lead service lines in under three years, funded at 100% utility cost, as a national model1:57:12; noted EPA lowered its national lead pipe estimate from 9 million to 4 million and pressed Olson on the implications1:59:41.

Rep. Buddy Carter (R-GA)2:01:07: Cited a survey showing roughly 14% of water utilities reported a cybersecurity incident in the past year2:02:26; asked panelists about cyber threat prioritization and EPA's cybersecurity oversight gaps2:04:37.

Rep. Greg Landsman (D-OH)2:06:58: Raised concerns about EPA's Office of Research and Development, citing Cincinnati's ORD lab work on PFAS and lead corrosion2:08:07; pressed Murley repeatedly on whether ORD jobs and independence should be protected, which she declined to state directly2:10:40.

Chairman Palmer (closing questions, West Texas district)2:11:59: Asked Hill about regulatory burden in drought-prone rural systems, citing a renewed perchlorate testing requirement duplicating work done 20 years earlier2:14:16; closed the hearing2:17:16.

Key moments

A Potomac Interceptor sewer line rupture released more than 200 million gallons of untreated sewage into the Potomac River in January, prompting a D.C. state of emergency and a joint EPA/FEMA cleanup response0:17:100:17:52.

Olson stated federal water infrastructure investment covers less than 5% of total national spending and less than 1% of total needs, with industry estimating $1–1.6 trillion in required investment versus EPA's $625 billion figure0:40:200:41:46.

Hill testified his utility applied for SRF funds in 2022 and is only now receiving them, during which contractor availability dropped from 8–10 bidders to 1–2, driving up project costs0:55:250:56:18.

Murley disclosed that six states still submit construction bid records in paper format, complicating EPA/OIG financial oversight of SRF funds0:59:06.

Griffin pressed Hill and Rechtin on liability for a 2022 Roanoke County PFAS ("GenX") contamination incident that predated EPA's health advisory and led to a $1.9 million settlement; both witnesses argued utilities as "passive receivers" should bear no cleanup liability1:25:381:26:421:29:16.

Menendez noted EPA revised its national lead service line estimate down from 9 million to 4 million pipes; Olson said NRDC disputes the revised figure and warned it could reduce funding to communities that need it1:59:412:00:10.

Rechtin said every $1 million invested in water infrastructure generates $2.5 million in economic output, and a single nationwide day without water service would cost the economy $120 billion, 527,000 jobs, and $69 billion in GDP1:52:021:52:51.

Landsman repeatedly pressed Murley on whether EPA's Office of Research and Development jobs and independence should be protected amid reported cuts; she stated OIG takes independence "very seriously" but would not comment directly on staffing decisions2:10:402:11:38.

Soto criticized EPA's proposed 40% budget cuts (including $1 billion less for the SRF) and the rollback of the climate change endangerment finding; Murley said OIG, as a nonpartisan office, does not opine on policy merits but reviews agency process compliance1:42:051:44:20.

Hill said his utility is being required to retest for perchlorate despite finding no detections in a prior EPA-mandated 2005 testing round, calling it a repeat regulatory burden on small systems2:14:16.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Environment
Chamber / CongressHouse · 119th Congress
Date2026-02-24
TypeHearing
Witnesses
Mr. Eric Hill — General Manager, Russellville Water & Sewer Board
Ms. Nicole Murley — Acting Inspector General, Environmental Protection Agency
Mr. Erik Olson — Senior Strategic Director for Health & Food, Natural Resources Defense Council
Ms. Lindsey Rechtin — President & CEO, Northern Kentucky Water District
Videoyoutube
Transcript278 caption blocks · 20,303 words · 2:17:36 runtime
EventCongress.gov 118992