- EPA weighs options for merging or restructuring small groundwater systems.
- National Ground Water Association warns that local solutions may better serve community needs.
- Rule could change funding and compliance processes nationwide.
Tuesday, October 14, 2025 –-The U.S. Environmental Protection Agency held an online listening session on October 8 to discuss its proposed Water System Restructuring Assessment Rule
, a plan intended to improve compliance with the Safe Drinking Water Act among smaller water systems. The agency believes many of these systems lack the technical, financial, or managerial capacity to meet federal drinking water standards.
Representatives from the National Ground Water Association (NGWA) joined the session to share industry concerns. Former NGWA President David Traut, along with Government Affairs Manager Ben Frech and Regulatory Affairs Manager Chuck Job, emphasized that merging or consolidating small systems may not always be the best solution for local communities.
Focus on Local Solutions.
According to NGWA participants, existing tools and funding mechanisms—if properly prioritized—can often resolve compliance problems without requiring costly physical or managerial mergers. Traut noted that state revolving funds already allow grants and low-interest loans for local water improvements. These, he said, can more effectively address water quality issues than building long-distance pipelines or changing ownership structures.
Job added that the framework for assessing and assisting small systems is already outlined under the Water Supply Cost Savings Act, which Congress authorized several years ago. However, he said, that authority has not yet been fully implemented by the EPA or the U.S. Department of Agriculture.
Concerns from the Field.
During the discussion, a state drinking water program manager reportedly echoed NGWA’s position, warning that small systems already face limited staffing and resources. Adding new administrative requirements, the official said, would only strain existing capacities. Instead, participants encouraged the EPA to emphasize tools already available to help local operators improve maintenance and compliance.
NGWA also referenced its research paper, Cost Comparisons of Local Groundwater Sources to Regional Waterlines, which found that local groundwater solutions are often more cost-effective than importing water through regional pipelines.
EPA’s Proposed Framework.
The EPA’s Water System Restructuring Assessment Rule would grant states new authority to require assessments of small systems and establish incentives for restructuring. Possible changes could include operational upgrades, infrastructure improvements, interconnections with neighboring systems, consolidation, or changes in ownership.
Three main elements define the proposal:
- Mandatory State Assessment Authority – States could require small systems to undergo evaluations to determine whether restructuring is necessary.
- Assessment and Implementation Requirements – Water systems would need to prepare and carry out plans for restructuring where appropriate.
- Incentives for Participation – Systems that engage in restructuring could qualify for federal revolving fund assistance and temporary protection from certain enforcement actions or penalties.
The EPA also identified three guiding principles for restructuring:
- Evaluate alternatives based on community needs.
- Engage affected communities in decision-making.
- Ensure that restructuring efforts are affordable and sustainable.
What Happens Next.
The EPA stated that it will review feedback from stakeholders before finalizing the rule. A revised timeline for completion will be announced after additional listening sessions and public comments are considered.
NGWA representatives offered to provide further information and assistance as the process continues.
Frequently Asked Questions (FAQ)
Q: What is the purpose of the proposed rule?
The Water System Restructuring Assessment Rule is intended to help small water systems comply with Safe Drinking Water Act standards by encouraging evaluations and potential restructuring.
Q: What does “restructuring” mean in this context?
Restructuring could include management changes, infrastructure upgrades, or connecting with nearby systems to improve water quality and reliability.
Q: Why is the NGWA concerned?
NGWA argues that mergers or consolidations may not be in the best interest of all communities and that existing funding and management tools can often solve compliance issues locally.
Q: How could the rule affect small towns?
Communities operating small water systems might face new requirements for assessments or plans. Some may benefit from added funding opportunities, while others could experience new administrative burdens.
Q: When will the rule be finalized?
The EPA has not yet announced a final date. The agency will incorporate feedback from listening sessions and public comments before moving forward.
