WSSC Water secures $40.3 million state loan to fast-track lead service line replacements by 2030

WSSC Water secures $40.3 million state loan to fast-track lead service line replacements by 2030The Maryland utility is leveraging state revolving funds with 50% principal forgiveness to beat federal Lead and Copper Rule Improvements (LCRI) deadlines while absorbing the cost of private-side replacements.

The WSSC Water Commission approved a $40.3 million loan from the Maryland Water Infrastructure Financing Administration, featuring $20.6 million in principal forgiveness.

The utility is targeting a 2030 completion date for all lead and galvanized line replacements, well ahead of the EPA's 2037 LCRI deadline.

WSSC Water will cover the full cost of private-side replacements using a pre-qualified pool of licensed plumbers.

To date, the utility has secured $46 million in state revolving funds for the program and has requested an additional $106 million for FY2026.

WSSC Water has formally approved a $40.3 million loan agreement with the State of Maryland to fund its ambitious Water Lead Reduction Program. Approved during the May 20, 2026, commission meeting, the financing will help the utility meet its self-imposed 2030 deadline to replace all lead and Galvanized Requiring Replacement (GRR) service lines—seven years ahead of the Environmental Protection Agency's (EPA) December 2037 mandate. The funding package, provided through the Maryland Water Infrastructure Financing Administration's Drinking Water State Revolving Fund, includes a $19.7 million base loan and $20.6 million in principal forgiveness. The base loan will bear an interest rate equal to 50% of the average Bond Buyer 11-Bond Index. Chief Financial Officer Munetsi Timothy Musara noted that approximately $4.9 million in expenditures are already queued for reimbursement upon loan closing. A major hurdle for lead replacement programs nationally is the cost burden on homeowners for private-side replacements. WSSC Water has mitigated this by covering the full replacement cost to ensure compliance and system-wide integrity. Deputy General Manager of Operations Aklile Tesfaye and Program Manager Venedra Whigham detailed that the utility is using a pre-qualified pool of licensed plumbers—solicited via an Expression of Interest—to conduct private-side replacements at no financial cost to the homeowner. WSSC's current inventory shows that 98% of its service lines are non-lead. Field verifications have further reduced suspected problem lines, with only 22% of suspected GRR lines and 7% of unknown lines confirming as galvanized. Despite the low percentage of lead and galvanized lines relative to the total system, the utility is aggressively seeking capital to finish the job. Whigham noted that WSSC Water has secured $46 million in state revolving funds to date and has requested an additional $106 million for FY2026. Ahead of the November 2027 LCRI compliance schedule, WSSC is also rolling out a proactive sampling program for childcare facilities built before 2012. The utility plans to offer voluntary sampling to the first 100 facilities in the fourth quarter of 2026. Furthermore, WSSC has adopted a stringent internal action level of 5 parts per billion (ppb) for tap sampling—half the EPA's 10 ppb threshold—triggering immediate utility response, including filter distribution and system assessments.