Water & Wastewater Market Recap, February 2024

The February 2024 Water and Wastewater Market Recap covers interesting and useful water industry news for this month. It contains updates on industry drivers, notable projects, and recent mergers and acquisitions, as well as some interesting reads, and upcoming upcoming meetings and conferences.

Industry Drivers

Our data team tracks major developments in the water industry, which we call drivers. Here are some of the most important drivers from last month.

New Steps to Protect Communities from PFAS and Other Emerging Chemicals of Concern Announced

Status: Proposed

Organization: Environmental Protection Agency (EPA)

Summary: On February 1, 2024, the U.S. Environmental Protection Agency (EPA) introduced two proposed rules to address per- and polyfluoroalkyl substances (PFAS) and authorized states to regulate and clean up PFAS under the nation's hazardous waste law, the Resource Conservation and Recovery Act (RCRA). The first rule would clarify the definition of hazardous waste and the authority to require corrective action for PFAS and other substances at 1,740 permitted facilities across the country. The second rule would add multiple PFAS compounds to the list of hazardous constituents subject to facility assessments and cleanup actions.

Click Here for More Information

Notable Capital Improvement Programs

Here are some recent, notable Capital Improvement Programs (CIPs). FirmoGraphs has deconstructed the CIPs into data elements, along with available project descriptions. Please feel free to request a meeting and review the data live in our business intelligence application.

City of Kalamazoo, Michigan, Planned Capital Program Increased By 40%

In the CIP covering the 2024-2028 fiscal years, City of Kalamazoo, Michigan, detailed plans to spend $587 million on capital projects, an increase of 40% from $420 million in its 2023-2027 CIP. The current CIP has 336 line items, compared to 269 line items in the prior CIP. The table below breaks down City of Kalamazoo’s planned capital spending by business area for its last two CIPs.

Most Significant Increase in Water Source and Pumping; Decrease in Water Infrastructure

Many of the business areas decreased. The most significant decrease goes to the Water Infrastructure category, with a 28% reduction due to the Water Infrastructure program nearing completion. Despite the decrease, the recent CIP still increases because of the addition of the Residual Biosolids category, amounting to $136 million. In addition, planned spending in Water Source and Pumping increased by 88% for the Sta #5 Booster Pump House Replacement, which increased by $29 million. 

Notable Investments For Water Related Projects

The City of Kalamazoo, Michigan, has one notable line item valued at over $100 million and two at over $25 million. The largest line item is the Kwrp Sustainable Residual Biosolids, worth $136 million, under the Residual Biosolids category. In the Water Source and Pumping category, $40 million is planned for the Sta #5 Booster Pump House Replacement. Lastly, $27 million goes to the Richland & Ross Pfas Water Main Extension under the Water Infrastructure category.

Click Here to See City of Kalamazoo, Michigan, CIP

City of Decatur, Illinois, Planned Capital Program Increased by 29%

In the CIP covering the 2024-2028 fiscal years, City of Decatur, Illinois, detailed plans to spend $291 million on capital projects, an increase of 29% from $226 million in its 2023-2027 CIP. The current CIP has 89 line items, compared to 97 line items in the prior CIP. The table below breaks down City of Decatur’s planned capital spending by business area for its last two CIPs.

Increase Going to New Programs

The Public Works category has the largest funding in the recent CIP, which also increased by 52% going for new programs, such as Ne Quadrant Water Capacity Increase and Lead Service Line Replacement Program, worth nearly $29 million and $18 million, respectively.

Sanitary Sewer Category Related Project to Receive Over $25 Million

The City of Decatur has three notable line items valued at over $10 million. The largest line item is the Brush College And Reas Bridge Road Sewer Extension, under the Sanitary Sewer category, worth $26 million. Another $14 million is planned for the Broadway and Jasper Street Sewer Rehabilitation. Lastly, $21 million goes to the Brush College Grade Separation project, under the State Motor Fuel category. 

Click Here to See City of City of Decatur, Illinois, CIP

City of Brooklyn Center, Minnesota, Planned Capital Expenditure Increased By 20%

In the CIP covering the 2024-2028 fiscal years, City of Brooklyn Center, Minnesota, detailed plans to spend $242 million on capital projects, an increase of 20% from $202 million in its 2023-2027 CIP. The current CIP has 144 line items, compared to 138 line items in the prior CIP. The table below breaks down City of Brooklyn Center’s planned capital spending by business area for its last two CIPs.

Most Significant Increase in Street and Utility and Miscellaneous Categories

Planned spending in the Street and Utility category increased by nearly $20 million with funding towards ongoing projects. The Miscellaneous projects also increased by 41% due to the new Community Center: Phase 1 project.

Over $30 Million Going to Miscellaneous Projects

The City of Brooklyn Center, Minnesota has one notable line item valued at over $25 million and four at over $10 million. The largest line item is the TH 252/66th Interchange and 70th Pedestrian Overpass, worth $35 million, under the Miscellaneous Projects category. The proposed interchange and overpass project will improve roadway safety, enhance traffic operations, reduce access points and provide improved bicycle and pedestrian facilities, converting the southerly portion of TH 252 to a freeway. Other notable line items include:

• Community Center: Phase 1 - worth $15 million, under the Miscellaneous Projects category.
• Orchard Lane East Improvements - worth $12 million, under the Street and Utility category. The Orchard Lane East project area extends from Perry Avenue to Brooklyn Boulevard and Interstate 94 to 63rd Avenue with a total area of 21,560 linear feet of local streets.
• Orchard Lane West Area Improvements - worth $11 million, under the Street and Utility category. The Orchard Lane West Area project extends from Unity Avenue to Perry Avenue and Interstate 94 to 61st Avenue with a total area of 25,702 linear feet of local streets.
• Riverwood Area Improvements - worth $11 million, under the Street and Utility category. The Riverwood project area is bounded by Highway 252 on the west, the Mississippi River on the east, 73rd Avenue on the north, and I-694 on the south. The project area contains a total of 17,897 linear feet of local streets. 

Click Here to See City of Brooklyn Center, Minnesota, CIP

City of Temple, Texas, Planned Capital Program Increased By 45%

In the CIP covering the 2024-2029 fiscal years, City of Temple, Texas, detailed plans to spend $535 million billion on capital projects, an increase of 45% from $370 million in its 2023-2028 CIP. The current CIP has 110 line items, compared to 66 line items in the prior CIP. The table below breaks down City of Temple’s planned capital spending by business area for its last two CIPs.

Substantial Increase Due to New Projects

Planned spending in the Facilities category increased largely by 1,661% due to 11 more projects in the recent CIP. The Wastewater category also increased by 38%, with funding for existing projects. There is also a new project in the Water category, the construction of the Northwest 36" Transmission Main, worth nearly $15 million.

Over $50 Million Programmed For WWTP Projects

The City of Temple, Texas, has two notable line items valued at over $20 million under the Wastewater category. The largest line item is the Temple-Belton Wastewater Treatment Plant Expansion, Phase II, worth nearly $40 million. The other one is the Doshier Wastewater Treatment Plant Expansion, worth $20 million and expected to start construction in Fiscal Year 2026.

Click Here to See City of Temple, Texas, CIP

Notable M&A

The following M&A transactions in the Water and Wastewater Industry stood out in the month of February:

• On February 22, 2024, Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, announced today that it has acquired USA Waterfrom Warren Equity Partners in partnership with management. Financial terms of the transaction were not disclosed.

What We Are Reading

Here are some recent articles our team has been reading:

• Biden-Harris Administration Announces New Steps to Protect Communities from PFAS and Other Emerging Chemicals of Concern
• United States and Commonwealth of Massachusetts Announce Settlement with City of Lowell to Address Pollution in Merrimack River
• Washington's Department of Ecology proposes $386 million clean water investment plan
• Court approves “historic” $1.18 billion settlement with Dupont over PFAS water contamination
• Maine governor fast-tracks $50 million infrastructure resilience plan
• Lowell, Mass., to invest $195 million in sewer upgrades in settlement over water pollution
• Biden-Harris Administration expands EPA program to bring wastewater sanitation services to 150 more underserved communities across Rural America as part of Investing in America Agenda
• New York to invest $49 million for statewide water infrastructure projects
• North Carolina to invest $238 million in drinking water, wastewater, stormwater projects
• EPA invests $3B into clean ports
• EPA announces $5.8B for drinking water, wastewater, stormwater infrastructure
• Louisiana secures $69.4 million for upgrading drinking water, wastewater, and stormwater systems
• Louisiana secures $69.4 million for upgrading drinking water, wastewater, and stormwater systems
• NYC completes water, sewer infrastructure upgrades $1 million under budget

Meeting Planner

In this over-digitized age, there is no replacement for face-to-face meetings with your prospects and customers! We track meetings of interest to our customers serving the US power generation and supply industry so you won’t miss upcoming meetings and deadlines. Also, FirmoGraphs has recently implemented a free-of-charge service for tracking notable infrastructure events. 

Meetings in March and April 2024

Early Bird Registration

• Event: BC-AWWA Annual Conference & Trade Show
  Dates: April 28 - April 30, 2024
  Deadline for Early Registration: March 14, 2024
  
• Event: NGWA Groundwater in the PFAS Era: Stressors, Protection, and Compliance
  Dates: April 16 - April 17, 2024
  Deadline for Early Registration: March 15, 2024
• Event: PNWS-AWWA Section Conference
  Dates: May 1 - May 3, 2024
  Deadline for Early Registration: April 1, 2024
  
• Event: IN-AWWA Annual Conference
  Dates: April 8 - April 11, 2024
  Deadline for Early Registration: April 5, 2024
• Event: AWWA Annual Conference & Expo (ACE24)
  Dates: June 10 - June 13, 2024
  Deadline for Early Registration: April 20, 2024
  
  
  

Call for Papers

• Event: AWWA Water Quality Technology Conference
  Dates:  November 17, 2024 - November 20, 2024
  Deadline for Early Registration: March 14, 2024