Water Taxes

May 15, 2019
Should consumers pay extra for water infrastructure improvement?

It’s a question facing many states across the US. With limited support from the Federal government, state and regional governments are now confronted with how to fund repairs to water infrastructure. California’s Governor, Gavin Newsom, has recently proposed a forward-thinking, yet controversial solution. 

California has its share of water challenges. It’s a populous state with an arid climate and limited water resources. However, with hundreds of water systems non-compliant with safe drinking water standards and the need to repair its infrastructure, Governor Newsom has suggested a tax, paid via fees collected by urban water districts. The proposed tax would add an estimated 95 cents to $10 on consumer water bills. There also would be new feesfor agricultural organizations. 

More than a million Californians do not have clean water to bathe in or drink, the Governor asserted in a February State of the State Address. To remedy that, he hopes to bring in $110 million from water utilities and about $30 million from the agricultural industry, according to a New York Times report. He also plans to supplement this amount with $168 million from a 2018 bond proposition. 

As the San Francisco Chronicle reports, Newsom is carrying on former Governor Jerry Brown’s 2018 efforts to include a fee on water bills for infrastructure repair. Brown’s efforts stalled in the state legislature, however, amid resistance from lawmakers. 

Though Newsom’s proposal will undoubtedly face political opposition in Sacramento, many activists and water industry leaders are in favor of its long-range strategy since it establishes a source of sustained funding to improve water infrastructure over time.  

What are your thoughts? Do you think that additional fees on water bills are the best way to fund infrastructure improvement? 

About the Author

Laura Sanchez

Laura Sanchez is the editor of Distributed Energy and Water Efficiency magazines.

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