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As a water professional working for a utility, it will cost way more than that.
As a regulator for water resources I know industries will spend hundreds of thousands of dollars flying attorneys across the country to debate the validity of a $1000 field penalty for an illicit direct discharge to waters of the state and US.
It is often safe to say if the industry's argument is talking cost and funding alone, then they have no legitimate or technical justification to oppose. Their cash reserves are at stake either way.
Water utilities are generally not wealthy corporations and will not be doing this. Many are municipally owned. However, having a mandate that will massively strain contractor resources and the supply chain to get replacement materials will massively raise the cost.
Not to mention, most utilities do not know where the lead connections are. A lot more will have to be dug up and checked to verify the material. That has its own expense.
There are private water systems, and yes, my comment was more regarding industries with permitted discharges, which is slightly tangental.
But yeah thar is generally why utilities are not penalized for violations and compliance with things like drinking water standards are often not directly enforced. However the opposition to the requirement for drinking water quality standards to be met are not technically justified by financial burdens.
This is a common hurdle for industries and utilities alike whose operations have exceeded their capacity to maintain.