American Water Supports Inclusion of H.R. 537 in Jobs Bill

March 5, 2010
Company believes it would create thousands of jobs

American Water, a water and wastewater company serving approximately 16 million people in 35 states, strongly supports including H.R. 537, the Sustainable Water Infrastructure Investment Act, in the upcoming jobs bill. The Water Infrastructure Investment Act will generate significant investment through the use of tax-exempt bonds for water and wastewater infrastructure projects and, as a result, could create thousands of jobs, American Water said.

"Too often, because many of our water assets are buried beneath the ground, the need to invest in water and wastewater systems is overshadowed by more visible crumbling roads and bridges," said Don Correll, president and CEO of American Water Works Co., Inc. "Exemption for bond caps exists for other infrastructure but not for water. Lifting these caps will free up crucial investment dollars and create needed jobs."

Including this legislation will not only address the nation’s deteriorating water and wastewater infrastructure, estimated to be a trillion-dollar challenge by the U.S. Environmental Protection Agency, it will also generate thousands of jobs and help stimulate the economy, American Water said.

The Association of General Contractors has determined that for every $1 billion of investment in water/wastewater infrastructure, approximately 28,000 jobs are created. A recent report by the Cadmus Group for The U.S. Conference of Mayors also determined that water and wastewater infrastructure investment stimulates the nation’s economy and creates jobs. This report states that for every one dollar of water and sewer infrastructure investment, it is estimated that gross domestic product increases by $6.35 in the long-term. For each additional dollar spent on operating and maintaining the water and sewer industry, the increase of revenue or economic output for all industries is increased by $2.62 in that year. In addition, every one job added in water and sewer creates 3.68 jobs in the national economy to support that job.

Source: American Water Works Co., Inc.

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