What Happened?

Cyberattacks hit water and wastewater utilities in at least seven states starting July 27, causing flooding and drops in water pressure in some communities. A House panel will hold a hearing Sept. 3 to examine how Congress can protect drinking water systems from those threats while keeping household water bills from rising.

The House Energy and Commerce Subcommittee on Environment, chaired by Rep. Gary Palmer (R-AL), convened the hearing titled "Reliable Water in the Digital Age: Examining Legislation to Strengthen Drinking Water Systems and Protect Ratepayers." The full committee is chaired by Rep. Brett Guthrie (R-KY). Lawmakers reviewed draft versions of two bills: the Safe Drinking Water Infrastructure Improvement Act and the Water Cost Accountability Act.

Why Does it Matter to Me?

Water rates are already climbing in parts of the country. Pennsylvania American Water customers saw new rates take effect Aug. 13 after state regulators approved a $74.9 million annual revenue increase. On Long Island, Liberty Utilities is asking New York regulators to raise rates by nearly 22 percent in one service area and more than 30 percent in another, with the increases proposed to take effect in May 2027 if approved. In Merrick, Nassau County, the company estimates the average residential bill would climb nearly 37 percent.

Some of the recent attacks disrupted actual water operations, not just computer systems.

Both Sides, Now

Supporters of the two draft bills say the proposals would strengthen drinking water infrastructure against cyber threats while making sure data center builders, rather than households, pay for the water infrastructure their facilities require. Rep. Henry Cuellar (D-TX) introduced a separate bill, the Ratepayer Bill of Rights Act, on Aug. 24. That bill would require public disclosure of electricity and water use, infrastructure costs, rate effects, and public financial assistance connected to large data centers.

Industry researchers and U.S. officials have said the technical profile of the recent attacks resembles campaigns previously linked to CyberAv3ngers, a group U.S. officials have associated with Iran's Islamic Revolutionary Guard Corps. CyberAv3ngers has claimed responsibility, but the U.S. government has not publicly attributed the attacks to the group.

The Senate Environment and Public Works Committee unanimously advanced the bipartisan Water Resources Development Act in July. That bill would renew Environmental Protection Agency (EPA) drinking water and wastewater infrastructure programs and expand help for small water systems facing cybersecurity gaps.

What Happens Next?

The two draft bills reviewed at the Sept. 3 hearing still need to clear the full House Energy and Commerce Committee before the House could vote on them. The Senate's Water Resources Development Act also awaits a full Senate vote. Separately, Liberty Utilities' rate increase request is pending before the New York Public Service Commission, with a decision that could set new bills as soon as May 2027.

More than 30 states have introduced over 300 bills on data centers, water use, and utility costs, so action at the state level could move faster than Congress.

---

Spot something wrong? Report an issue with this article