Affordability and Financial Needs Assessment for California’s Proposed MCL for Hexavalent Chromium (CrVI)
Understanding the affordability of drinking water regulations for households and small systems
California’s Maximum Contaminant Level (MCL) for Hexavalent Chromium (CrVI) presents significant affordability challenges for many small and economically vulnerable water systems. While the rule is deemed economically feasible at the statewide level, system-level cost burdens vary widely, and the State’s current affordability analysis may misidentify which systems and households truly need financial support to ensure safe, clean drinking water. Without a more targeted and transparent framework, the state risks misallocating much needed financial support—leaving low-income households exposed and small systems under-resourced..
Developing a new affordability framework to illuminate needs
One Water Econ conducted an independent affordability and financial needs assessment to evaluate the equity and adequacy of California’s proposed CrVI MCL implementation strategy. Using State-provided cost and occurrence data, paired with socioeconomic data from the U.S. Census, the study developed a more precise framework for identifying financial need and estimating required support.
Key findings include:
- The State’s proposed $73 million annual funding may be insufficient; estimated needs range from $110 to $123 million per year
- Many households facing affordability challenges are not captured by system-level metrics
- Some systems flagged for support serve relatively affluent populations and may not require subsidies
- Improved targeting and delivery mechanisms could enhance equity and reduce administrative burdens, especially for small systems
- Long-term sustainability and coordination with other water sector priorities remain critical
This assessment offers a household-informed, data-driven framework to guide funding decisions and ensure that CrVI compliance is both protective and equitable.