S 939
112th CONGRESS
1st Session
S. 939
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 SENATE OF THE UNITED STATES
May 10, 2011
Mr. MENENDEZ (for himself and Mr. CRAPO) introduced the following bill;
which was read twice and referred to the Committee on Finance
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 2011'.
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 is amended by inserting `(4), (5),' after `(2),'.
(b) Conforming Change- Paragraphs (2) and (3)(B) of section 146(k) of
the Internal Revenue Code of 1986 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.
END
