How Reduction of Lead in Drinking Water Act Will Impact Developers

The last five years have been hard times for developers as the real estate crisis slowed new home construction and millions of finished lots sat vacant. As construction picked up in 2012 and there was a nationwide surge in single-family construction permits, developers are finally starting to see the light at the end of the tunnel.reduction-of-lead-in-drinking-water-costs-resized-600

In 2013, many developers will consider opening up new lots in some of their communities, finishing them with infrastructure so they can sell them to builders. There are a lot of good reasons developers should open lots in 2013 rather than wait.

Reduction of Lead In Drinking Water

One of the biggest reasons for developers to finish lots in 2013 is the Reduction of Lead In Drinking Water Act. The legislation, passed in 2010, hasn’t been getting a lot of attention and

some developers might not even realize they’re heading for major cost increases in their water infrastructure in 2014.

Congress passed Public Law 111-380 in 2010. It reduces the maximum allowable amount of lead on the wetted surfaces of brass pipe fittings, meters and other fixtures from 8 percent to 0.25 percent. The law goes into effect Jan. 4, 2014.

Cost

The new product is estimated to cost about 40 percent more than standard brass. While most manufacturers have already stopped producing the standard brass products and switched their lines to the new low-lead brass, suppliers like MSPS still have standard brass in stock and are discounting it in order to clear it out before the new regulation goes into effect. Our discount is about 15 percent.

Savings opportunity

That means developers who are responsible for installing their own water infrastructure have huge cost savings to realize if they build out their communities in 2013 and take advantage of significant discounts on standard brass pipe fittings and meters.

As builders scoop up lots in early 2013, developers who were considering opening up more lots, should act sooner rather than later. And developers who thought they could wait until 2014, might want to think about making the investment earlier.

If you have questions about the Reduction of Lead in Drinking Water Act and how it will impact water infrastructure expenses and the supply of standard brass pipe fittings and meters, contact MSPS. Our staff knows the law and can discuss your options.

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