Bill Would Provide $13.8 Billion For Water Loans

WASHINGTON — A bipartisan team of House transportation leaders have introduced legislation to spend $13.8 billion over five years on water infrastructure through the State Revolving Fund.

The Water Quality Protection and Job Creation Act of 2013 is sponsored by Reps. Tim Bishop, D-N.Y., Nick Rahall, D-W. Va., Don Young, R-Alaska, and Peter King, R-N.Y., The bill would provide for a large injection into the federal pool of capital that feeds state revolving loan funds used to help finance water and wastewater programs, as well as provide for a new federal loan program and other water infrastructure quality improvements.

“Investments in rebuilding our nation’s water and wastewater infrastructure will create thousands of jobs while benefitting the health of our communities, our economy, and our environment for decades to come,” said Bishop, the top Democrat on the House Transportation and Infrastructure Committee’s subcommittee on water resources and environment. “Passing this bipartisan legislation will provide a significant boost to the struggling construction industry and lay the foundation for sustainable growth in our communities and our economy.”

The new legislation is being introduced on the heels of a U.S. Conference of Mayors report that urged a fresh look at federal policy on water finance. The report warned that continuing investment could be a losing situation for local governments without more federal support, with rising costs and mounting long-term debt eventually creating downward pressure on city credits.

The $13.8 billion, which would be managed by the Environmental Protection Agency and distributed through the EPA to the states, would provide low interest loans and loan subsidies for wastewater infrastructure. The bill would also provide for technical assistance to rural communities seeking to access the market for new water infrastructure projects, and authorize direct federal loans and loan guarantees under a new program similar to the Water Infrastructure Finance and Innovation Act pilot program present in water legislation pending before the Senate.

Bishop and Rahall offered the bill in the previous Congress, where it never advanced beyond the committee level. Last time it was not co-sponsored by Young, a prominent Republican on transportation issues who chaired the full committee from 2001-2007.

Rahall, the full committee’s ranking Democrat, said the bill, introduced May 8, would be a stable force for water finance and help the economy.

“The bipartisan legislation we are introducing today provides a reliable funding source for the repair and expansion of our water infrastructure, while immediately creating jobs across the country and delivering a needed shot in the arm for our economy,” Rahall said.

The legislation has garnered letters of support from a variety of industry groups, including the American Society of Civil Engineers, the American Public Works Association, and the National Association of Clean Water Agencies.

The legislation has been referred to the House Transportation and Infrastructure Committee, as well as the House Committee on Ways and Means. The committee must tackle water a water bill this Congress, as well as reauthorization of surface transportation programs.

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