Water board to review lead pipe replacement financing, conditions

Creston Waterworks Board Tuesday agreed to review its options and conditions to replace the remaining lead pipes in its service area. No formal action was taken as it will be addressed during the board’s Jan. 14 meeting.

The Environmental Protection Agency is requiring all lead and galvanized pipes for water service to be replaced over the next 10 years. To help communities comply, the agency is making available an additional $2.6 billion for drinking water infrastructure through the bipartisan infrastructure law. The agency also is awarding $35 million in competitive grants for programs to reduce lead in drinking water. Water utilities are being given three years to research and plan.

Creston Waterworks General Manager Steve Guthrie said Creston Water expects to be financially responsible for the work based on the ruling.

“When you have physical and legal access,” Guthrie said about the wording of the ruling. “With our water service agreement, that gives us right to the property. It’s not 100% set in stone, but legally we would be responsible for lead service line replacement.”

The estimated cost for the 468 properties is $2.3 million. Creston Water would be eligible for 0% financing through federal funding.

Guthrie also said there are some unknowns that may impact the project and bill.

“There is a chance, with new administration coming in, it may change. There may be some legal challenges,” he said. Guthrie said the Department of Natural Resources informed him there should be two to three years of financing, at first.

“Is more available? I don’t know. The money is there. Do we take a chance while the financing is there? Or do we slow down and see if the rule is going to change. Are we jumping the gun? There are some windows we have to hit.”

Guthrie said March 2025 would be the first time Creston Water can apply for financing. Each property will need reviewed by the DNR. Guthrie speculated bids for the work won’t be for 12 to 18 months. Guthrie said he has not seen any evidence the federal plan will change.

“There is also a legal, grey area. What if one of the properties has a leak or non-working shut off and have not paid their bill? Who is responsible for the cost? We may need to suggest a temporary policy. If a shut off leaks and we don’t have the project going yet, do we make that customer update their line when we have financing coming?”

Guthrie expects to use contract labor to replace the lead. He said Creston Water should be able to work on the lots that have been abandoned and disconnected. He said there are 375 to 400 sites where water is regularly used and have lead pipes.

Board member Melissa Driskell is in favor of Creston Water providing the work.

“It will go a long way with the public,” she said.