March 10, 2025

As Congress barrels toward Friday’s deadline to avoid a Federal Government shutdown, work remains underway on two fronts: first, top appropriators in the House and Senate are very close to reaching a deal on topline spending caps for FY 2025; and second, Congress is negotiating another funding extension, or “continuing resolution” (CR), to keep the Federal Government running past the March 14 deadline. Over the weekend, the House Majority released a CR that runs through the remainder of the fiscal year (September 30). The CR includes language that WateReuse advocated for, allowing the Bureau of Reclamation to disburse prior-year funds for the Title XVI-WIIN Water Reuse Grants Program. Without the language, known as an “anomaly,” Reclamation would be unable to disburse grants for seven Title XVI-WIIN projects, despite funds being appropriated and project sponsors notified in FY 2024. 

While a full-year CR is likely to pass by a very slim margin in the House, it may very well fail in the Senate where it will require Democratic support to pass. The most likely scenario may be that the House passes its full-year CR early this week before pivoting to a short-term CR, possibly receiving the latter from the Senate toward the end of the week. Meanwhile, top appropriators may soon reach a deal on overall spending caps for defense and non-defense discretionary spending. In the event of a shorter-term CR, appropriations subcommittees would swiftly begin to negotiate a final funding package for FY 2025. WateReuse continues to meet with House and Senate appropriators to make the case for robust funding for water reuse programs.  

A federal judge in Rhode Island has indefinitely blocked the Trump Administration from impeding the disbursement of appropriated federal funds to states under awarded grants, executed contracts, or other executed financial obligations. In January, President Trump issued a series of Executive Order and memos that directed federal departments and agencies to freeze federal funding for certain programs. The judge’s order specifically references the President’s Executive Order Unleashing American Energy, which we reported on in January, as well as the White House implementation memos that followed. The judge’s order directs the Administration to notify all federal departments and agencies of the ruling. The injunction is focused narrowly on the disbursement of appropriated federal funds to states under awarded grants, executed contracts, or other executed financial obligations. As such, it may not apply to federal funds for programs that provide loans and grants directly to non-state recipients, nor to federally appropriated funds that are not yet awarded or executed.  

As recently as Thursday of last week, federal departments and agencies continued to work through the Department of Government Efficiency (DOGE) to unfreeze dozens of federal programs, including important water recycling programs. At the same time, some Members of Congress have begun to call for a package of proposed rescissions from the Administration. A rescissions package would target a set of unobligated funds to be clawed back and returned to the Treasury. Legislation to enact rescissions would require only a simple majority vote in the Senate and could have significant implications for any outstanding water reuse funding. 

Last week, the Boston Globe featured results from a recent Bluefield Research survey indicating that fast-rising water and sewer rates could spell financial hardship for many Americans. The survey found that rates across the country have risen by nearly 25% in the past five years. Low and middle-income households are impacted by rate increases the most, further exacerbating the water security disparity in the United States. The WateReuse Association advocates for federal infrastructure funding to help cover the costs of infrastructure investments. We also promote next-generation water solutions that can improve resilience while saving ratepayer dollars over the long-term. 

Rising rates are driven by the cost of treatment, transmission, energy, maintenance, and labor. The report estimates the cost of pipe replacement at $1 million per mile – or as much as double that in cities in the Northeast region. The Bipartisan Infrastructure Law, which the WateReuse Association helped shape and enact, included major funding for water recycling projects across the country. These funds have helped soften the impact of infrastructure needs on local ratepayers, but a significant shortfall remains to ensure the effectiveness, safety, and sustainability of water and wastewater systems. The United States Environmental Protection Agency has estimated that maintenance of safe water infrastructure over the next 20 years will cost $1.25 trillion. 

While water recycling projects often have high up-front costs, they also help improve efficiency and provide long-term cost savings. As a reliable long-term water supply, recycled water helps many communities avoid the need to purchase or develop alternative sources of water during drought cycles. Onsite water reuse systems can also help offset the need for expanded water service and new supplies. WateReuse continues to advocate for federal and state funding to share the cost of these important investments in water recycling.  

Last week, the Arizona Governor’s Regulatory Review Council approved the state’s Advanced Water Purification rules, marking a major milestone in securing Arizona’s long-term water resilience. This approval makes the AWP rules effective, establishing a comprehensive regulatory framework that ensures the safe and reliable purification of treated water for potable use while supporting a sustainable water supply for communities statewide. 

WateReuse Arizona (WRAZ) has worked for over a decade to help guide Arizona Department of Environmental Quality (ADEQ) through a rigorous technical and stakeholder input process. WRAZ helped secure a 2018 state rules revision that removed the prohibition on direct potable reuse and worked with the Arizona Water Association to publish Guidance Framework for comprehensive rules in that same year. In 2022, WRAZ initiated the effort to adopt a comprehensive regulatory framework for the state, hosting roundtable conversations between water utilities, water reuse experts, and state regulators during each annual WateReuse Arizona Symposium. 

Arizona cities may now apply for permits under the new rules. “This is a landmark achievement for Arizona’s water security,” said Arizona Department of Environmental Quality Director Karen Peters. 

The City of Chandler, Arizona, a WateReuse Association member, recently completed construction on a $44.6 million project to supplement recycled water that serves the city’s aquifer recharge facilities and Intel’s nearby semiconductor fabrication facilities. The new facility treats water from the Salt, Verde, and Colorado rivers and utilizes Chandler’s reclaimed water distribution system for delivery to several aquifer recharge sites. The city delivered the project via a public-private partnership with Intel, which is also a WateReuse member. The project presents an innovative solution utilizing existing infrastructure to deliver surface water supplies to the city’s recharge facilities. 

WateReuse member Los Angeles Department of Water and Power (LADWP) recently honored the Valero Wilmington Refinery last month with the 2024 Recycled Water Customer of the Year Award for adopting the use of advanced treated recycled water in its industrial operations. The refinery uses recycled water from the city’s Terminal Island Water Reclamation Plant. Recycled water used in the refinery’s four industrial cooling towers – crucial for cooling various chemical processes – is anticipated to save an impressive 300 million gallons of water annually. “By partnering with major corporations like Valero, we drastically lessen our dependence on potable water, significantly bolstering the city’s sustainability efforts,” said Anselmo Collins, Senior Assistant General Manager of LADWP’s Water System. 

Contact us at info@watereuse.org