Funding and Financing Options for Full Lead Service Line Replacement

Funding and Financing Options for Full Lead Service Line Replacement

This policy brief synthesizes practices and policies from cities and utilities that are creatively combining traditional and non-traditional funding and financing mechanisms to overcome legal, financial, and logistical barriers to covering LSL replacement costs.

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Revolving No More How Earmarks Undermine Funding for Water Infrastructure

Revolving No More: How Earmarks Undermine Funding for Water Infrastructure

This report on earmarks provides thoughtful, compelling data and policy analyses to support actionable recommendations for how Congress could make earmarking less harmful to their own states.

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NYC LSLR from March 2025

Breaking Barriers to Lead Service Line Replacement in New York

This report examines both successes and barriers in New York’s early efforts to replace LSLs and identifies policy solutions to accelerate progress, increase public health protections, and ensure compliance with federal requirements

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Funding

Wisconsin allows principal forgiveness be granted to investor-owned water utilities

Wisconsin Act 8 expands the Safe Drinking Water Loan Program to allow principal forgiveness to a private owner of a community water system if the loans are for lead service line replacement.

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Template pipes

What Cities Need to Know about Lead Service Line Replacement Requirements – and How to Fund It

Guidance for local governments to comply with the EPA’s Lead and Copper Rule Revisions (LCRR) and Improvements (LCRI). Outlining regulatory requirements, strategies for public communication and risk management, and offering resources to support communities.

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Checklist

Financial Plan Checklist for Lead Service Line Replacement

This checklist provides a step-by-step guide to developing a thoughtful financial plan for long-term success of your LSLR program.

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Minnesota Statutes

Minnesota statute requires allows the use of state funding to repay loans

Minnesota’s Lead Service Line Replacement Grant Program prioritizes the use grant funds to repay loans incurred for LSLR including DWSRF loans. Minn. Stat. 446A.077 §4(a).

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Glass of water

State of Pennsylvania – Drinking Water State Revolving Loan Fund Intended Use Plan (IUP) – SFY 2022

The state’s SFY22 IUP assgined additional priority points based economic development criteria promoting job creation (Attachment 1, p. 2).

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Two multiracial girls sit in kitchen drinking water

State of Wisconsin –Safe Drinking Water Loan Program Intended Use Plan for the SFY 2025 Funding Cycle

The SFY25 IUP limits SRF funding to projects that fully remove lead components (p. 18). It also allows multi-year applications for lead line replacements (p. 20), prioritizes collaborative applicants (p. 13), and offers principal forgiveness for private-side work and filters (p. 19).

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Milwaukee is one of the few cities in the country with a prioritization plan to ensure neighborhoods likely to suffer the most severe impacts from lead poisoning get their pipes replaced first. In consultation with a community-based group, Coalition for Lead Emergency (COLE), and following a public engagement process, Milwaukee included in an ordinance three indicators to prioritize where LSLs will be removed first:

  1. The area deprivation index (ADI), which is a compilation of social determinants of health
  2. The percentage of children found to have elevated lead levels in their blood when tested for lead poisoning
  3. The density of lead service lines in the neighborhood.

Read more here.