[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2606 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 2606

 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

                           February 29, 2016

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 2016''.

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.
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