Economic Impacts on DMV from Water Supply Disruption

 

Below is excerpted from the press release, the entire press conference and report are linked below:

Last week, the Interstate Commission on the Potomac River Basin (ICPRB) released a new report highlighting the significant and dire financial consequences facing the Washington, D.C., region in the event of a disruption to the area’s water supply.

In just one month, a significant disruption from threats like infrastructure failures or natural disasters in D.C. region’s water supply could result in a loss of $15 billion in gross regional product (GRP) and hundreds of millions in tax losses, according to the report, “The Economic and Fiscal Costs of Water Supply Disruption to the National Capital Region.”

“The Potomac River is the single source of drinking water for Washington  D.C. and provides water for roughly five million people in the region,” said ICPRB Executive Director Michael Nardolilli. “It is integral to the functioning of the nation’s capital. This report clearly shows that any disruption to the water supply would have catastrophic economic consequences for the region, especially for the most vulnerable residents of our nation’s capital. Securing the resilience of our water infrastructure is not just a priority, it’s a necessity.”

“The interconnectedness of our region means that water supply disruptions would have far-reaching consequences affecting the District of Columbia as well as our neighboring communities in Virginia and Maryland,” said COG Board Chair and District of Columbia Councilmember Charles Allen. “This report underscores the importance of regional collaboration in safeguarding our water resources and why COG is working with our partners to ensure a backup water source for the region.”

“DC Water’s motto, ‘Water is life,’ reflects how seriously we, as the water authority for the nation’s capital, take our role in supplying our customers with abundant, safe and reliable water,” said David L. Gadis, Chief Executive Officer (CEO) and General Manager of DC Water. “Resilience in the water sector, one of DC Water’s five strategic imperatives, is crucial not only for our success, but also for the health and wellbeing of the customers who depend on DC Water. This water supply vulnerability must be addressed to protect our city now and for the future generations to come.”

“Our region’s economic vitality and quality of life are directly tied to clean, reliable water resources,” said Jack McDougle, President and CEO of the Greater Washington Board of Trade. “This report highlights that a disruption in the water supply would not only harm the local economy but also have a disproportionate impact on the diverse business sectors and people who contribute to the vibrancy of our nation’s capital the Greater Washington region. This includes small, minority-owned, women-owned, and veteran-owned enterprises, which are at greater risk of permanent closure if forced to shut down due to water supply disruptions. It is imperative that we confront this challenge proactively to safeguard our thriving region and everything it has to offer.”

“Federal investment in our nation’s water infrastructure is essential to protect all communities from the devastating impacts infrastructure failures can have on operations,” said Mae Stevens, CEO of the American Business Water Coalition. “Restoring the country’s water systems to meet the needs of the population is expected to cost more than $1.25 trillion over the next 20 years, a figure far too large for utilities, companies and private citizens to meet alone. Congress needs to recognize this as a critical need and close the funding gap so that we can better protect the D.C. region and our nation against devastating water supply disruptions.”

Yet every time the federal government has funded infrastructure with massive programs, we have short changed water and sewer infrastructure, instead funding programs less critical to our survival than water availability.

Key findings presented in the report include:

• Economic impact: The report estimates that a significant water supply disruption could result in losses of almost $15 billion in gross regional product (GRP) and hundreds of millions in tax losses, all within the first month.
• Disproportionate impact: Small, women-owned and minority-owned businesses are particularly vulnerable to the effects of water supply disruption, with potential losses that could devastate their operations and subsequently, impact the livelihoods of their employees. Supply disruption would additionally have a greater impact on lower-income households that have fewer financial resources to mitigate the loss of services.
• Sectoral vulnerability: Major sectors, including healthcare, food and beverage, chemical manufacturing and arts & entertainment, are identified as being at severe risk, underscoring the necessity for enhanced infrastructure resilience and preparedness.

The report’s sponsors including the regional water companies, called for Congressional action to fund crucial infrastructure projects to ensure greater resiliency in the D.C. region’s water supply and safeguard the health and safety of both the public and the economy.