The November 2023 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.
Texans Approve Proposition 6 to Fund Critical Water Projects
Status: Proposed
Organization: Texas State Legislature
Summary: On November 8, 2023, Texas voters approved Proposition 6, a constitutional amendment that created the Texas Water Fund to finance water projects in the state. The amendment authorized a $1 billion appropriation to upgrade the state's water infrastructure and fund new water supply projects. The Texas Water Development Board (TWDB) would administer the fund and allocate at least 25% of the initial allocation to the New Water Supply for Texas Fund, supporting innovative water supply strategies, such as desalination and aquifer storage. The fund would also prioritize water infrastructure projects and water conservation and loss mitigation projects in rural areas. The projects will lead to 7 million acre-feet of new water supplies by December 31, 2033. The TWDB is expected to begin accepting applications for funding from the Texas Water Fund in early 2024.
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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 Chattanooga, Tennessee, Planned Capital Spending Decreased by 13%
In the CIP covering the 2024-2028 fiscal years, the City of Chattanooga, Tennessee, detailed plans to spend $788 million on capital projects, an decrease of 13% from $909 million in its 2023-2027 CIP. The current CIP has 128 line items, compared to 137 line items in the prior CIP. The table below breaks down Chattanooga’s planned capital spending by business area for its last two CIPs.
Decrease in Spending Due to Ongoing Projects Nearing Completion
Most of the business areas reduced their planned spending. The most significant decrease goes to the Public Works category. The $47 million decrease is due to ongoing projects and programs nearing completion, including the Wilcox Boulevard Bridge and Fleet Program Purchases. There is also a significant decrease in the Economic Development category due to the Affordable Housing Trust Fund that will be completed in 2023, worth $33 million.
Wastewater Related Projects to Receive Over $150 Million
The City of Chattanooga has three notable projects valued at over $25 million, all belonging to the Wastewater category. The largest single project is the MBWWTP Wet Weather Treatment Upgrade, worth $80 million. This project will design and build selected alternatives identified during the Wet Weather Treatment Upgrade feasibility analysis. Another $58 million is planned for the MBWWTP Solids Process Optimization Implementation - Phase 4 (Digester/THP Improvements) consisting of solids handling facilities including pre-thickening and cake storage, THP and post-THP equipment provided by a vendor, steam generation/cooling, sludge blending, and anaerobic digesters. Lastly, $47 million is planned to complete Sanitary Sewer Evaluation Studies (SSES) and rehabilitate sanitary sewer pipes in twenty-four of Chattanooga's Sewersheds.
Click Here to See Chattanooga, Tennessee CIP
City of Hagerstown, Maryland, Planned Capital Expenditure Increased by 177%
In the CIP covering the 2024-2028 fiscal years, the City of Hagerstown, Maryland, detailed plans to spend $264 million on capital projects, an increase of 177% from $95 million in its 2023-2027 CIP. The current CIP has 133 line items, compared to 65 line items in the prior CIP. The table below breaks down Hagerstown’s planned capital spending by business area for its last two CIPs.
Planned Spending Increased Due to New Business Areas
Planned spending of the City of Hagerstown, Maryland, increased by 177% due to adding seven business areas, including Water and Wastewater, amounting to $101 million and $33 million, respectively. Fourteen projects are included in the Water category, with Willson Transmission Mains as the top project, worth nearly $43 million.
Water Project to Receive Over $20 Million of Investment
Out of 65 line items, one is valued at over $25 million and four at over $10 million. The largest project belongs to the Water category, the Willson Transmission Mains, worth $43 million. This project includes funding for valve replacement, design, and construction of 36" transmission mains from Bottom Road to the Conococheague Creek. Listed below are the other notable items:
- Hagerstown Field House - $24 million, under the Engineering category. The project involves planning, designing, and constructing a 114,000-square-foot field house for recreational use by community and sports tourism. It consists of two indoor turf fields and four basketball courts.
- Edgemont Reservoir Improvements - $18 million, under the Water category. The projects go to improvements in the Watershed and potential watershed land acquisition.
- Water Zone #5 System Improvements - $14 million, under the Water category. The project includes the design and construction of new suction and discharge mains at Pump Station #6 at Greendale Street and Chewsville PRV.
- Parking Facilities - 3rd Parking Deck - $10 million, under the Parking category. The project will be constructed in conjunction with the Hagerstown Multi-Use Sports and Events Facility, to be located on the corner of Baltimore St. and Summit Ave.
Click Here to See Hagerstown, Maryland CIP
Rivanna Authorities, Virginia, Planned Capital Expenditure Increased by 77%
In the CIP covering the 2024-2028 fiscal years, Rivanna Authorities, Virginia, detailed plans to spend $476 million on capital projects, an increase of 77% from $269 million in its 2023-2027 CIP. The current CIP has 67 line items, compared to 52 line items in the prior CIP. The table below breaks down Rivanna Authorities’ planned capital spending by business area for its last two CIPs.
Almost All Business Areas Increased
Planned spending in the Water category increased by 86% and the Community Water Supply Plan category increased by 170% with funding towards existing projects. In addition, the Finished Water Storage/Transmission – Urban System category increased by 79% because of four additional projects in the recent CIP.
Water Related Project To Receive Over $50 Million of Investment
Rivanna Authorities has one notable line item valued at over $50 million and five at over $25 million. The largest single project is the Finished Water Storage/Distribution, under the Water category, worth nearly $60 million. The project includes approximately 40 miles of pipeline and six water storage tanks: Avon Street (2 MG), Pantops (5 MG), Piney Mountain (0.7 MG), Stillhouse (0.7 MG), Observatory (3 MG), and Lewis Mountain (0.5 MG), and the Alderman Road and Stillhouse pumping stations. Other projects include:
- Crozet Water System - worth $49 million, under the Water category. The system includes the Crozet Elevated (Waterball) Tank (0.05 MG) for water treatment plant backwash, the Crozet Ground Storage Tank (0.5 MG) and pump station, and the Buck’s Elbow Storage Tank (2.0 MG).
- Central Water Line - worth $38 million, under the Finished Water Storage/Transmission – Urban System category. The project will consist of approximately 5 miles of new 24-inch and 30-inch through the city to connect the Observatory Water Treatment Plant to an existing RWSA transmission main at East High and Long St. to ensure the increased hydraulic capacity of 10 MGD from the water treatment plant upgrades can be utilized.
- South Rivanna Reservoir to Ragged Mountain Pipeline, Intake & Facilities - worth $34 million, under the Community category. This project currently includes the design and construction of approximately 380 LF of piping along the alignment as a betterment opportunity through the Victorian Heights development located on Woodburn Road.
- Ragged Mountain Reservoir to Observatory Water Treatment Plant Raw Water Line - worth $32 million, under the Community category. This new raw water main is expected to be constructed of a 36-inch ductile iron pipe. It will span a distance of approximately 21,400 linear feet, including the connection of the proposed RMR raw water pump station with the Southern terminus of the Birdwood raw water line completed in 2019.
- Moores Creek AWRRF - worth $30 million, under the Wastewater category. This site includes the infrastructure for the wastewater treatment process and the RWSA administration facilities.
Click Here to See Rivanna Authorities, Virginia CIP
Notable M&A
The following M&A transactions in the Water and Wastewater Industry stood out in the month of November:
What We Are Reading
Here are some recent articles our team has been reading:
- New York governor secures over $108.8 million for local water infrastructure projects
- Biden-Harris Administration Announces $336 Million Loan to Chicago to Help Remove 30,000 Lead Pipes Across the City
- Wisconsin partners with EPA to replace lead service lines, improve drinking water in 10 communities
- Chicago to replace 30,000 lead pipes with $336 million WIFIA loan
- Biden-Harris Administration Announces New Get the Lead Out Initiative to Accelerate Removal of Lead Service Lines Nationwide as Part of Investing in America Agenda
- Pennsylvania American Water purchases Butler Area Sewer Authority for $230 million
- Texas to allocate $1 billion for state-wide water infrastructure projects
- EPA Announces $56 Million WIFIA Loan to Upgrade Water Infrastructure for the Gun Lake Tribe in Western Michigan
- Wisconsin Senate signs off on bill to spend tens of millions on PFAS pollution
- PUC approves Pennsylvania American Water's $230 million acquisition of Butler Area Sewer Authority
- Biden-Harris Administration to Invest $30 Million to Protect Tucson Residents from PFAS
- EPA Announces $92 Million WIFIA Loan to Santa Clara Valley Water District
- Arizona to protect residents from PFAS-contaminated drinking water with $30 million investment
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