PWSA Continues Aggressive Removal of Lead Service Lines with $15 Million PENNVEST Grant

Funding will replace more than 1,000 lead service lines at no additional cost to ratepayers

Pittsburgh, PA - Today, the Pittsburgh Water and Sewer Authority (PWSA) was awarded a $15.2 million grant from the Pennsylvania Infrastructure Investment Authority (PENNVEST) to continue the aggressive removal of lead service lines throughout our drinking water system. This grant, the largest PWSA has received from PENNVEST, is made possible through the Bipartisan Infrastructure Law (BIL).

A $13.8 million grant received in January 2024 was previously the largest grant awarded to PWSA. Our aggressive pursuit of state and federal funding helps to reduce costs to customers while providing the necessary financial resources to expedite the removal of all lead service lines from our drinking water system. The grant awarded today - which we don't have to repay - will over time save ratepayers more than $19 million when compared to a low-interest PENNVEST loan or nearly $37 million in comparison to a traditional municipal bond.

"Today's award from PENNVEST advances our mission to protect public health by funding the removal of lead service lines at over 1,000 homes," said PWSA CEO Will Pickering. "We're grateful for the funding partnership with PENNVEST, the Office of Governor Shapiro, U.S. EPA and the Biden Administration that is helping to provide customers with safe, high-quality drinking water," he continued.

With this award, PWSA estimates replacing 550 public and 500 private lead service lines in six Pittsburgh neighborhoods including California-Kirkbride, West Oakland, Spring Garden, East Liberty, Hazelwood, and Crawford-Roberts. Removing lead service lines is the most effective way to eliminate the presence of lead in drinking water, helping enhance our mission to protect public health now and for future generations.

The $15.2 million award coincides with PWSA's recent announcement of an additional $60.1 million investment towards water main and lead service line removal projects across 11 Pittsburgh neighborhoods this summer. This series of projects, also funded by PENNVEST through a combination of low-interest loans and grants, will replace approximately 4.1 miles of water mains, 219 public lead service lines, and 187 private lead service lines.

Local Economic Impact

Grants such as this one offers an extra benefit by boosting the economic health of our region. This grant is projected to have an estimated $26.1 million in economic benefit helping strengthen our local economy, foster job creation, and keep money circulating within our communities.

PWSA's initiative to replace lead service lines offers contracting opportunities for local and state construction firms. The usage of PENNVEST funding and PWSA's own procurement policies requires a robust and thorough Disadvantaged Business Enterprise (DBE) solicitation process.

Outreach to vendors through the Pennsylvania Department of General Services Supplier Search ensures DBE firms are aware of opportunities and the ability to compete for work funded by EPA financial assistance dollars. To learn of these upcoming PWSA opportunities, DBE firms are encouraged to register through our procurement portal.

"This additional funding from PENNVEST will help expedite the removal of lead service lines in our community," said Ed Barca, PWSA Director of Finance. "Grant funding, money that we don't have to repay, is the most affordable way to remove lead service lines and improve water quality at no additional expense to our customers."

Since 2018, PWSA has received from PENNVEST a combination of $77 million in grants and $637 million in low-interest loans, totaling $714 million. Pursuing external funding from state and federal partners helps reduce the cost to ratepayers overtime during an unprecedented level of investment in our essential water systems.

As a publicly owned and operated water utility, every dollar we receive is reinvested directly back into the water systems that serve those living and working in Pittsburgh. To learn more about our finances and use of ratepayer dollars, please visit https://www.pgh2o.com/about-us/finance.