Massachusetts Water Pollution Abatement Trust executive director Sue Perez urged the commonwealth’s congressional delegation to reject proposed legislation that would threaten funding for water projects.
The state revolving fund now grants the funding for the state’s need-based water projects. The trust uses these grants to secure tax-exempt bonds that it issues to fund low-interest water project loans to municipalities.
The bill, in an effort to create new programs for those states in need of new systems, would neglect those with existing systems in need of repair, said Perez.
The triple-A rated trust usually receives favorable rates in the tax-exempt bond market.
“This proposed legislation would disrupt a funding system with a proven track record, and it would penalize Massachusetts for forward-looking water infrastructure investments that it has been making for decades,” said Perez.
“Unfortunately, this proposal would shift money away from important priorities throughout the commonwealth and could threaten our ability to properly maintain some of the oldest water infrastructure in the country,” said the state treasurer, Steven Grossman, who chairs the trust.
According to Perez and Grossman, an estimated 97% of commonwealth’s population have benefited from the trust’s financing.