WHO GETS CLEAN WATER? AID ALLOCATION TO SMALL WATER SYSTEMS IN PENNSYLVANIA¹

Abstract

ABSTRACT: Research on the condition of drinking water provision in the United States documents the inequitable financial impact of environmental regulations on small water systems (those serving 3,300 or fewer people). While a variety of federal and state financial assistance programs are available for water systems, few quantitative analyses have evaluated the success of these programs in alleviating the problems of small systems. A case study of the largest aid initiative for water supply infrastructure in Pennsylvania provides the empirical framework through which to analyze government funding opportunities for water systems. This study examines the allocation practices of the Pennsylvania Infrastructure Investment Authority (PENNVEST) to water systems of varying sizes. Utilizing data from PENNVEST applications and the Pennsylvania Department of Environmental Protection, the distribution of PENNVEST award recipients and denied applicants by size characteristics are compared. The study indicates that very small water systems (those serving 500 or fewer) do not apply for or receive funds with the same frequency as their larger counterparts. Understanding the allocation of awards from PENNVEST offers insight into the ability of small communities to access capital for water supply infrastructure.