Regarding point 2, establish federal EPA oversight of water quality. This is a bad idea.

For the most part oversight of water quality is the responsibility of the states. Only Wyoming and the District of Columbia lets EPA have primary responsibility of water quality. This is a problem because, for example in the lead and copper rule, the water quality is based on corrosion, not based on health standards. Result: 1000s of children exposed to lead (see http://www.dcwasawatch.blogspot.com/). Based on poor performance there are activists trying to wrest oversight from EPA. On the other side of the pipes there were court cases, that went on for decades, on pollution of the Potomac river. EPA was incapable of reducing the pollutants discharged into the river.

If you want to do nothing to solve a water quality problem, then establish EPA oversight of water quality.

so implicit are 3 alternatives?

1)let the 'free' market solve it? (which predominantly privatizes profits and externalizes losses)
2)let it fall under different government auspices?
3)change the employees/leadership/way EPA is run?

My children were born in 2001. In 2002, an EPA-mandated change from chlorine to chloramine in the secondary disinfection caused an unanticipated increase in lead in the water, to levels 20-100 times what is considered by EPA to be acceptable. Last month EPA admitted that their "acceptable" lead levels in drinking water were based on corrosion, not health standards. Currently the EPA lead and copper rule is not under review -- and I bet that my children will be well past their majority before this issue is resolved. That is what you get with EPA: unanticipated ill effects from their own rules, followed by decades of inaction.

This is not an isolated incident. In the completely unrelated matter of ship fouling control, the onerously expensive EPA review process has impeded the development of new biocides, which means that everybody uses only cuprous oxide. The result is a huge buildup of copper in the harbors, which would not have occurred if other biocides were available. The perverse effect is that EPA's rules actually increase environmental damage.

I like the model of underwriters laboratory, or of the national sanitary foundation, for water quality. Let a private non-profit establish the standards, leaving the local authority and utility in charge of meeting those standards. This allows the standards to evolve quickly, as soon as the science is ready, leaving the hard engineering decisions to those that actually drink and pay for the water.

You still use Lead for drinking water pipes???? In The Netherlands use of Lead for piping has stopped 40 years ago and untill 5 years ago you could get money to change your piping. Not anymore, not required any more. Everybody has PE or copper...

Where the lead comes from is controversial. Houses built more than 60 years ago almost always had lead service lines, and most of these are still in place. Service lines install since then are almost always copper. Up to about 20 years ago solder was a lead alloy. Finally the end fixtures are still allowed to have up to 8% lead. Many homes that ostensibly were "lead-free" still had high lead concentrations in the water.