What is the most significant federal law affecting the water utility industry?

The Safe Drinking Water Act (SDWA) is considered the most significant federal law affecting the water utility industry because it was specifically designed to protect public health by regulating the nation's public drinking water supply. The act authorizes the Environmental Protection Agency (EPA) to set national health-based standards for drinking water to ensure safety and quality. This includes establishing regulations for contaminants, requiring periodic monitoring, and mandating that water suppliers provide consumers with information about their drinking water quality.

The importance of the SDWA stems from its focus on the direct health implications associated with drinking water. Water utilities must comply with the standards set forth in this act, influencing their operations, treatment processes, and infrastructure investments. It encapsulates a broad range of water treatment and safety practices that are vital for maintaining public health.

In contrast, other laws such as the Clean Water Act primarily address the regulation of discharges into navigable waters and the protection of water quality in those waters, rather than directly governing drinking water standards. The Water Resources Development Act focuses on water resource development projects, and the National Environmental Policy Act requires federal agencies to assess the environmental effects of their proposed actions, but none are as directly applicable to the regulation of drinking water utilities as the SDWA is.