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Water Privatization is No Deal

December 2nd, 2009 by robin · 1 Comment

I recently watched “Thirst,” a film about water privatization, which documents efforts to privatize water in Bolivia, India, and Stockton, California to examine whether water is part of a shared “commons” and a human right for all people, or a commodity to be bought, sold and traded in a global marketplace.

I saw the film at a screening with follow-on discussion at the Park Slope Food Coop. Joining the discussion were director, Alan Snitow, via Skype, and New York Times reporter Charles Duhigg, via webcam. Duhigg has been reporting the Toxic Waters series of articles for the Times, examining in-depth the causes of America’s worsening water pollution and the regulatory response.

Initially the group focused on water quantity and quality, including a discussion about natural gas drilling in the Marcellus Shale in Upstate New York and Pennsylvania, which opponents believe threatens New York City’s drinking water supply, and wells and groundwater throughout the region. The discussion made its way to ownership of water and current pricing structures.

Those who spoke felt very strongly that water is not a commodity to be sold and that it belongs to all people. They indicated a desire for water to be delivered at low or no cost to communities, with some understanding that treating and transporting water costs money. One Coop member offered management of the Food Coop as a model of management that should be followed for water management. I realized that those present didn’t understand how water is priced, and weren’t aware that they don’t pay for water – but rather for infrastructure.

Coop members pay for all costs associated with housing and distributing their food. They also pay for the food itself, at cost plus a set markup. Similarly, those who are billed for water from a municipal system pay for the treatment and transport of their water; however, they don’t pay for the water itself. Water rates are set by a public utilities commission and are, in theory, determined by what is required to recover capital and maintenance expenditures.

Prior to World War II about half of all U.S. water systems were privately owned. When the Clean Water Act was passed, it was accompanied by funding in the form of government grants that helped offset the costs of many water-related capital projects, increasing the ability of municipalities to upgrade their treatment systems with current technology. As a result, the number of privately-owned water systems decreased to just 15%.  However, the federal share of all clean water spending shrank from a high of 78% in 1978 to just 3% by 2007, a void that has created a market for private water companies to once again fill.

The American Society of Civil Engineers has given the current condition of America’s water and wastewater infrastructure a grade of D-. While the EPA estimates that the funding gap for water infrastructure is $400 billion, in the United States we spend $12 billion a year on bottled water. Imagine if we spent all that money on supporting the infrastructure that delivers our tap water? Instead, whenever we purchase bottled water we, in essence, take money away from municipal water services.

While we pay an average of two-tenths of a cent per gallon to drink water from the tap in the United States, the average price of a 16-oz. bottle of water is $1.50 – that’s $6 per gallon. In other words, for the same price as that gallon of bottled water, you could get about 3000 gallons of tap water.

In January 2008, members of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment wrote a letter to the General Accounting Office asking that it undertake a study identifying appropriate funding mechanisms and revenue sources available to establish a Clean Water Trust Fund. In 2009, Congressman Mark Blumenauer (D-OR) introduced H.R. 3202, the Water Protection and Reinvestment Act of 2009, which would “provide a deficit-neutral, consistent and protected source of revenue to help states replace, repair, and rehabilitate critical drinking water and wastewater treatment facilities.” This type of comprehensive federal funding could take the burden off of consumers and do away with the need for privately-owned water services.

Blumenauer’s reasoning goes like this:

Instead of asking ratepayers to shoulder the full cost of repairing America’s water infrastructure, a steady source of federal funding is needed. Similar dedicated funding is available for our nation’s transportation systems – now it is time to establish a trust fund to finance water infrastructure.

Public control of water utilities is crucial to our ability to face environmental challenges and create sustainable societies. The time to act on this is now, before we are face-to-face with the realities of impending fresh water shortages. It’s time for all of us to get to know our local water utility, to check in with them once in awhile and find out what they’re up to. All of us should know where our water comes from and what problems our local utility is facing. If there is any hint of privatization, learn what you can do to voice your opposition. Food and Water Watch has a strong commitment to keeping our dwindling fresh water supplies public and there are other citizen’s groups that can help you find a voice if your community water supplies are being threatened with privatization. The time to act is before decisions are set in stone.

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File under: movies

1 response so far ↓

  • 1 Adam Rabiner // Dec 7, 2009 at 3:37 pm

    I am glad you the poster caught the showing of Thirst as part of the Brooklyn Food Coop’s Plow to Plate film series. As a co-organizer of this series, I welcome all readers to attend future showings of all of these educational film events which are very special due to the invited expert guests which include film makers, journalists, activist lawyers, etc. All films are shown at 7:00 p.m. the second Tuesday of each month, mostly at the Coop. The movie Fresh is being shown at that time on 12/8 at 347 5th Ave.

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