Cybersecurity Dispute Exposes Failing Infrastructure Crisis in US Water Systems
A recently unfolding cybersecurity dispute in a federal court in the Upper Midwest is shedding light on a much bigger issue—the failing infrastructure crisis in US water systems. The argument revolves around whether the Environmental Protection Agency (EPA) can require water systems to assess and report on their cyber defenses against various threats. This controversy highlights the dire state of our infrastructure and the lack of willingness to invest in its replacement. The need for a more comprehensive and permanent solution is evident.
At the center of the dispute is the assumption that water systems have cyber defenses in place or should be compelled to invest in them. However, many of the smaller rural public utilities that make up a significant portion of the US water supply lack adequate cybersecurity measures. Additionally, their physical plants are outdated and crumbling, further exacerbating the issue. These systems operate using antiquated IT systems that cannot support modern cybersecurity measures like artificial intelligence and the Internet of Things. The cost to modernize these systems is in the hundreds of millions of dollars, a sum that smaller utilities simply cannot afford. This leaves them with limited options—raising rates or taking on more debt.
The proposed EPA requirement faced swift opposition, with three Republican state attorneys general petitioning the federal court. Water industry trade groups have also expressed their concerns. As a result, the US Court of Appeals for the Eighth District issued a temporary stay on July 12, suspending the EPA order until the petition is reviewed. The outcome of this dispute will have far-reaching implications.
This seemingly narrow dispute reveals multiple underlying issues. The US water supply crisis serves as a prime example. A draft report by the National Infrastructure Advisory Council highlights the unsustainable nature of the nation’s water use due to chronic underinvestment. Decades of neglect and lack of funding have left critical water infrastructure in a compromised state. The consequences of this underfunding are evident in cases like the Flint, Michigan water crisis.
According to the draft report, the share of capital costs in water infrastructure covered by the US government plummeted from 60% in 2010 to under 10% in 2020. The American Society of Civil Engineers report shows that in 2019, the total investment needs for drinking water and wastewater systems amounted to $129 billion, while the capital spending was a mere $48 billion, leaving an $81 billion gap.
Although the recently passed $1.2 trillion Infrastructure Investment and Jobs Act allocates $50 billion in funding for water and wastewater improvements over five years, it falls short of closing the funding gap. In the current polarized political climate, it is unlikely that a similar infrastructure act will be passed anytime soon.
The solution lies in fostering innovation and collaboration between the public and private sectors. Public-private partnerships and concessions could play a crucial role in modernizing water systems and improving cybersecurity. Private companies are well-equipped to invest in technology and have a vested interest in interconnecting local systems. Similarly, the broader infrastructure crisis can be addressed by leveraging private sector investments. US pension funds, for instance, have over $10 trillion in assets under management. However, private investors often struggle to identify and participate in public projects.
To overcome these challenges, the establishment of an infrastructure bank is recommended. With sufficient scale, such an institution could bring together private and public funds, provide advisory support, and reduce dependence on short-term political funding cycles.
As the cybersecurity dispute surrounding water systems unfolds, it underscores the inadequacy of our current approach to infrastructure. Long-term and innovative solutions are required to address the underfunding and mismanagement plaguing our critical systems. Without a concerted effort to invest in and modernize infrastructure, the crises will only deepen. It is time for both public and private sectors to come together for the greater good and secure our nation’s future.
