World Water Crisis (LIFE)

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Pascrell Water PAB Bill Gains Traction, Would Create Jobs
NAWC
National Association Of Water Companies
February 9, 2010

H.R. 537, Rep. Pascrell’s (D-NJ) water private activity bond bill is gaining significant support largely due to its jobs-making potential. The Pascrell bill would create 57,000 jobs this year. Furthermore, as the market matures the jobs creation could be up to 142,500 a year, yet cost the American taxpayer very little, only $214 million over ten years. Most importantly, the jobs this bill creates would be put to work addressing our nation’s water infrastructure needs.

Specifically, H.R. 537 would bring water and wastewater projects out from under the volume cap on private activity bonds, and thus dramatically increase the availability of this type of low-cost financing.

The bill has already attracted more cosponsors (35) than similar bills attracted in previous Congresses, and more are expected. The 23 Democrats and 12 Republicans currently supporting H.R. 537 make this a strong bi-partisan bill. Furthermore, the cosponsors represent every region of the country, and urban, suburban and rural districts.

A broad coalition of nearly 35 organizations has formed to support H.R. 537. This coalition includes NAWC, the U.S. Conference of Mayors’ Urban Water Council, American Water Works Association (AWWA), the Associated General Contractors, American Water and many others.

For more information on the bill’s status, contact NAWC.

H.R. 537: Sustainable Water Infrastructure Investment Act of 2009
http://www.govtrack.us/congress/bill.xpd?bill=h111-537

Summary:
http://www.govtrack.us/congress/bill.xpd?bill=h111-537&tab=summary
1/14/2009--Introduced.
Sustainable Water Infrastructure Investment Act of 2009 - Amends the Internal Revenue Code to exempt from state volume caps private facility bonds for sewage and water supply facilities.
Full Text:
http://www.govtrack.us/congress/billtext.xpd?bill=h111-537
Jan 14, 2009 - Introduced in House. This is the original text of the bill as it was written by its sponsor and submitted to the House for consideration. This is the latest version of the bill currently available on GovTrack.

HR 537 IH

111th CONGRESS

1st Session

H. R. 537

To amend the Internal Revenue Code of 1986 to provide that the volume cap for private activity bonds shall not apply to bonds for facilities for the furnishing of water and sewage facilities.

IN THE HOUSE OF REPRESENTATIVES

January 14, 2009

Mr. PASCRELL (for himself, Mr. DAVIS of Alabama, and Ms. SUTTON) introduced the following bill; which was referred to the Committee on Ways and Means


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A BILL

To amend the Internal Revenue Code of 1986 to provide that the volume cap for private activity bonds shall not apply to bonds for facilities for the furnishing of water and sewage facilities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Sustainable Water Infrastructure Investment Act of 2009’.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings- Congress finds the following:

(1) Our Nation’s water and wastewater systems are among the best in the world, providing safe drinking water and sanitation to our citizens.

(2) In addition to protecting the health of our citizens, community water systems are essential to our local economies, enabling industries to achieve growth and productivity that make America strong and prosperous.

(3) Regulated under title XIV of the Public Health Service Act (42 U.S.C. 300f et seq.; commonly known as the ‘Safe Drinking Water Act’) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), community drinking water systems and wastewater collection and treatment facilities are critical elements in the Nation’s infrastructure.

(4) Water and wastewater infrastructure is comprised of a mixture of old and new technology. In many local communities across the Nation, the old infrastructure has deteriorated to critical conditions and is very costly to replace. Recent government studies have estimated costs of $500,000,000,000 to $800,000,000,000 over the next 20 years for maintaining and improving the existing inventory, building new infrastructure, and meeting new water quality standards.

(5) The historical approach of funding infrastructure is insufficient to meet the investment needs of the future.

(6) The Federal partnership with State and local communities has played a pivotal role in improving the Nation’s water quality and drinking water supplies. Federal assistance under this partnership has been the linchpin of these improvements.

(7) In light of constrained Federal budgets, the availability of exempt-facility financing represents an important financing tool to help close the gap between funds currently being invested and water infrastructure needs, preserving the Federal partnership.

(8) Providing alternative financing solutions, such as tax-exempt securities, encourages investment in water and wastewater infrastructure that in turn creates local jobs and protects the health of our citizens.

(9) Federally mandated State volume cap restrictions in conjunction with other priorities have limited the use of tax-exempt securities on water and wastewater infrastructure investment.

(10) Removal of State volume caps for water and wastewater infrastructure will accelerate and increase overall investment in the Nation’s critical water infrastructure; facilitate increased use of innovative infrastructure delivery methods supporting sustainable water systems through public-private partnerships that optimize design, financing, construction, and long-term management, maintenance and viability; and provide for more effective risk management of complex water infrastructure projects by municipal utility and private sector partners.

(b) Purpose- The purpose of this Act is to provide alternative financing for long-term infrastructure capital investment programs, and to restore the Nation’s safe drinking water and wastewater infrastructure capability and protect the health of our citizens.

SEC. 3. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY FACILITIES.

(a) Bonds for Water and Sewage Facilities Exempt From Volume Cap on Private Activity Bonds- Paragraph (3) of section 146(g) of the Internal Revenue Code of 1986 (relating to exception for certain bonds) is amended by inserting ‘(4), (5),’ after ‘(2),’.

(b) Conforming Change- Paragraphs (2) and (3)(B) of section 146(k) of such Code are both amended by striking ‘(4), (5), (6),’ and inserting ‘(6)’.

(c) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.

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