1.This Act may be cited as the
Clean Renewable Water Supply Bond Act
of 2009
.
2.Clean renewable water
supply bonds
(a)Subpart I of part IV
of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
54G.Clean
renewable water supply bonds
(a)Clean renewable
water supply bondsFor purposes of this subpart, the term
clean renewable water supply bond means any bond issued as part of
an issue if—
(1)100 percent of
the available project proceeds of such issue are to be used for capital
expenditures incurred by qualified borrowers for 1 or more qualified
projects,
(2)the bond is
issued by a qualified issuer,
(3)the issuer
designates such bond for purposes of this section, and
(4)in the case of a
bond issued by a qualified issuer before 2019, the bond is issued—
(A)pursuant to an
allocation by the Secretary to such issuer of a portion of the national clean
renewable water supply bond limitation under subsection (b), and
(B)not later than 6
months after the date that such qualified issuer receives an allocation under
subsection (b).
“Any
allocation under subsection (b) not used within the 6-month period described in
paragraph (4)(B) shall be applied to increase the national clean renewable
water supply bond limitation for the next succeeding application period under
subsection (b)(2)(B).(b)National
limitation on amount of bonds designated
(1)There is a national clean renewable water supply bond
limitation for each calendar year before 2019. Such limitation is—
(A)$0 for
2009,
(B)$100,000,000 for
2010,
(C)$150,000,000 for
2011,
(D)$200,000,000 for
2012,
(E)$250,000,000 for
2013,
(F)$500,000,000 for
2014,
(G)$750,000,000 for
2015,
(H)$1,000,000,000
for 2016,
(I)$1,500,000,000
for 2017, and
(J)$1,750,000,000
for 2018.
(2)
(A)The limitation under paragraph (1) shall be allocated by
the Secretary among qualified projects as provided in this paragraph.
(B)For each calendar year after 2009 for which there is a
national clean renewable water supply bond limitation, the Secretary shall
publish a notice soliciting applications by qualified issuers for allocations
of such limitation to qualified projects. Such notice shall specify a 3-month
application period in the calendar year during which the Secretary will accept
such applications. Within 30 days after the end of such application period, and
subject to the requirements of subparagraph (C), the Secretary shall allocate
such limitation to qualified projects on a first-come, first-served basis,
based on the order in which such applications are received from qualified
issuers.
(C)
(i)Certifications
regarding regulatory approvalsNo portion of the national clean
renewable water supply bond limitation shall be allocated to a qualified
project unless the qualified issuer has certified in its application for such
allocation that as of the date of such application the qualified issuer or
qualified borrower has received all Federal and State regulatory approvals
necessary to construct the qualified project.
(ii)Restriction on
allocations to large projects or to individual projects
(I)Except as provided in subclause (III), for any calendar
year the Secretary shall not allocate more than 60 percent of the national
clean renewable water supply bond limitation to 1 or more large projects, more
than 18 percent of such limitation to any single project that is a large
project, or more than 12 percent of such limitation to any single project that
is not a large project.
(II)Definition of
large projectFor purposes of subclause (I), the term large
project means a qualified project that is designed to deliver more than
10,000,000 gallons of water per day.
(III)Subclause (I) shall not apply to the extent its
application would cause any portion of the national clean renewable water
supply bond limitation for the calendar year to remain unallocated, based on
applications for allocations of such limitation received by the Secretary
during the application period referred to in subparagraph (B).
(3)Carryover of
unused limitationIf the clean renewable water supply bond
limitation for any calendar year exceeds the aggregate amount allocated under
paragraph (2) for such year, such limitation for the succeeding calendar year
shall be increased by the amount of such excess.
(c)
(1)A bond shall not be treated as a clean renewable water
supply bond if the maturity of such bond exceeds 20 years.
(2)Coordination
with section 54AThe maturity limitation in section 54A(d)(5)
shall not apply to any clean renewable water supply bond.
(d)For purposes of paragraph (a)(1), a qualified project may
be refinanced with proceeds of a clean renewable water supply bond only if the
indebtedness being refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred by a qualified
borrower after the date of the enactment of this section.
(e)For
purposes of this section—
(1)The term governmental body means any State or
Indian tribal government, or any political subdivision thereof.
(2)The term local water company means any
entity responsible for providing water service to the general public (including
electric utility, industrial, agricultural, commercial, or residential users)
pursuant to State or tribal law.
(3)The term qualified borrower means a
governmental body or a local water company.
(4)Qualified
desalination facilityThe term qualified desalination
facility means any facility that is used to produce new water supplies
by desalinating seawater, groundwater, or surface water if the facility’s
source water includes chlorides or total dissolved solids that, either
continuously or seasonally, exceed maximum permitted levels for primary or
secondary drinking water under Federal or State law (as in effect on the date
of issuance of the issue).
(5)Qualified
groundwater remediation facilityThe term qualified
groundwater remediation facility means any facility that is used to
reclaim contaminated or naturally impaired groundwater for direct delivery for
potable use if the facility’s source water includes constituents that exceed
maximum contaminant levels regulated under the Safe Drinking Water Act (as in
effect on the date of the enactment of this section).
(6)The term qualified issuer means—
(A)a governmental
body, or
(B)in the case of a
State or political subdivision thereof (as defined for purposes of section
103), any entity qualified to issue tax-exempt bonds under section 103 on
behalf of such State or political subdivision.
(7)
(A)The term qualified project means any
facility owned by a qualified borrower which is a—
(i)qualified
desalination facility,
(ii)qualified
recycled water facility,
(iii)qualified
groundwater remediation facility, or
(iv)facility that is
functionally related or subordinate to a facility described in clause (i),
(ii), or (iii).
(B)A project shall not be treated as a qualified project
under subparagraph (A) unless such project is designed to comply with
regulations issued under subsection (f) relating to the minimization of the
environmental impact of the project.
(8)Qualified
recycled water facility
(A)The term qualified recycled water facility
means any wastewater treatment or distribution facility which—
(i)exceeds the
requirements for the treatment and disposal of wastewater under the Clean Water
Act and any other Federal or State water pollution control standards for the
discharge and disposal of wastewater to surface water, land, or groundwater (as
such requirements and standards are in effect on the date of issuance of the
issue), and
(ii)except as
provided in subparagraph (B), is used to reclaim wastewater produced by the
general public (including electric utility, industrial, agricultural,
commercial, or residential users) to the extent such reclaimed wastewater is
used for a beneficial use that the issuer reasonably expects as of the date of
issuance of the issue otherwise would have been satisfied with potable water
supplies.
(B)Reclaimed wastewater is not used for a use described in
subparagraph (A)(ii) to the extent such reclaimed wastewater is—
(i)discharged into a
waterway or used to meet waterway discharge permit requirements and not used to
supplement potable water supplies,
(ii)used to restore
habitat,
(iii)used to provide
once-through cooling for an electric generation facility, or
(iv)intentionally
introduced into the groundwater and not used to supplement potable water
supplies.
(f)The
Secretary shall prescribe such regulations as are necessary to carry out the
purposes of this section, including regulations promulgated in consultation
with the Administrator of the Environmental Protection Agency to ensure the
environmental impact of qualified facilities is
minimized.
.
(b)
(1)Paragraph (1) of
section 54A(d) of the Internal Revenue Code of 1986 is amended by striking
or
at the end of subparagraph (D), by inserting
or
at the end of subparagraph (E), and by inserting after
subparagraph (E) the following new subparagraph:
(F)a clean renewable
water supply
bond,
.
(2)Subparagraph (C)
of section 54A(d)(2) of such Code is amended by striking and
at
the end of clause (iv), by striking the period at the end of clause (v) and
inserting , and
, and by adding at the end the following new
clause:
(vi)in the case of a
clean renewable water supply bond, a purpose specified in section
54G(a)(1).
.
(3)The table of
sections for subpart I of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
Sec. 54G. Clean renewable water
supply
bonds.
.
(c)The amendments made by this section shall apply to
obligations issued after December 31, 2008.