As the year ends, Water Portal is examining major water policy changes and developments in 2024, as well as looking ahead to 2025.
Colorado River
Firstly, the Colorado River negotiations for water usage allocations post-2026 have been in swing since a short-term agreement was finalized in May 2023. This agreement expires in December 2026, and in preparation the Department of the Interior released five proposed alternatives on November 20th, 2024. These proposals have arisen from several different parties, including the Colorado River states — Arizona, California, Colorado, Nevada, New Mexico, Utah, and Wyoming — as well as the Tribal Nations dependent on the river for their water; several non-profits and other federal agencies were also involved in their creation.
The purpose of these proposals is to guide upcoming negotiations, as opposed to presenting a fully-fledged, viable option for all parties involved. One proposal in particular, the Basin Hybrid Alternative, reflects parts of the priorities of Upper and Lower Division States and Tribal Nations. Final operative guidelines are due by August 2026, hopefully providing enough leeway for a solid agreement before the existing one expires.
Tribal Water
Tribal Nations experienced water additional battles on water rights outside of the Colorado Water negotiations as well. The Environmental Protection Agency (EPA) announced a final rule known as the Tribal Reserved Rights rule regarding Tribal water quality in May 2024. It is the first of its kind to assert a legal framework for the rights to quality aquatic and aquatic-dependent resources for Tribal Nations; previously, EPA has regulated these issues under the Clean Water Act strictly on a case-by-case basis. The Tribal Reserved Rights rule not only protects Tribal access to clean water in their historical territories previously outlined in federal statutes and treaties, but also safeguards Indigenous ways of life.
PFAS
Several landmark rules by EPA were also passed this year concerning public exposure to PFAS in our water. One finalized in April 2024 marked two common PFAS, PFOA and PFOS, as hazardous substances under the Superfund law, which would require those responsible for PFAS pollution to clean up their messes. Furthermore, another rule from April 2024 established final National Primary Drinking Water Regulations for six types of PFAS, establishing maximum contaminant levels (MCL) for these chemicals for the first time. PFOA and PFOS’ MCLs specifically lie at four parts per trillion. EPA also updated guidance on disposal and eradication of materials containing PFAS. These actions taken together mark a discrete turning point in PFAS regulation. Note, however, that if states are unable to meet these new regulations, then they will not be able to receive their allocation state revolving fund dollars. It is possible that states may prefer to pay the fine levied against surpassing the limit, because without substantive funding many utility-managed water systems will not financially be able to address PFAS, given how expensive and difficult it is to treat forever chemicals.
Lead Service Lines
Similarly, in October 2024, EPA announced final regulations requiring the replacement of drinking water systems containing lead service lines nationwide within the next decade. Known as the Lead and Copper Rule Improvements, the rule raises the bar of testing for drinking water while incentivizing increased public education regarding the dangers of lead exposure. The rule is expected to garner $25 billion in annual benefits nationwide, while costing between $1.5 and $2 billion annually.
Alongside the new rule, EPA announced $2.6 billion in fiscal year 2025 Drinking Water State Revolving Loan Fund (DWSRF) dollars for lead service line replacement. These dollars represent preliminary 2025 General Supplemental DWSRF funds from the annual appropriations earmarked by the Infrastructure Investment and Jobs Act (IIJA). While the EPA estimates that about nine million homes still receive their water via lead pipes, many have not yet been pinpointed. This funding and the pressure of a deadline seeks to expedite the resolution of the public health danger that is lead.
Federal funding to address both lead service lines and PFAS contamination are contained within IIJA. There are two more annual rounds of funding left for IIJA dollars to be spent, with about $36 billion in water funding still on the table. The timeline is shrinking, and with a new administration entering the White House and with new appointees stepping up to federal agencies may slow the rate of awards.
Reauthorization
Additionally, IIJA is up for reauthorization in 2026. According to the National Conference of State Legislatures, there is ongoing chatter around whether its reauthorization will be a “capital ‘I’ infrastructure bill or a surface transportation reauthorization bill.” However, diminishing IIJA into a simple transportation bill will halt momentum around current nationwide infrastructure maintenance and buildout — the only more inauspicious event would be if Congress decided to claw back IIJA funds, although this eventuality appears to be less realistic.
Other water-related concerns also loom in the next couple of years, including regulation of coal ash ponds, mercury effluent standards, and the potential targeting of the National Environmental Policy Act. The futures of these regulations are unknown, but increased state action may be necessary to gird against erosion of aquatic ecosystems, water infrastructure, and human health.
