[Congressional Record Volume 155, Number 172 (Thursday, November 19, 2009)]
[Extensions of Remarks]
[Pages E2829-E2830]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF THE CLEAN RENEWABLE WATER SUPPLY BOND ACT OF 2009

                                 ______
                                 

                          HON. XAVIER BECERRA

                             of california

                    in the house of representatives

                      Thursday, November 19, 2009

  Mr. BECERRA. Madam Speaker, I rise today to introduce the Clean 
Renewable Water Supply Bond Act of 2009 with Representative Ginny 
Brown-Waite. This legislation would authorize public water agencies to 
issue tax credit bonds as a financing vehicle for certain innovative 
new water supply technologies.
  Drought, global climate change, population growth, and increased 
competition for urban, agricultural, and environmental needs have 
combined to create potential water shortages of crisis proportions in 
the decades ahead unless Congress acts quickly to invest in new, 
alternative water supply facilities.
  Fresh water is a limited resource in high demand. Population growth 
continues to strain available and quickly diminishing water supplies, 
leading to a growing need for new investments in water supply and 
treatment facility projects. The U.S. General Accounting Office has 
stated that even under normal water conditions, 36 States anticipate 
water shortages in the next 10 years.
  However, innovative technologies exist that can help provide new 
sources of clean water while helping to improve the environment. While 
the costs of these technologies continue to decline, the initial 
capital expenditures required to build their infrastructure is still 
too high to use conventional financing mechanisms. A deeper subsidy is 
needed and can be achieved through the use of tax credit bonds.
  This legislation would authorize the use of tax credit bonds, Clean 
Renewable Water Supply bonds, or ``CREWS'', to finance certain kinds of 
innovative water supply facilities. These facilities include water-
recycling facilities, projects to clean up and use impaired 
groundwater, and both seawater and brackish groundwater desalination 
projects. These CREWS bonds would be issued by public water agencies in 
exactly the same way as those agencies can presently issue conventional 
tax-exempt municipal bonds.
  The proceeds from the sale of the bonds would result in an interest-
free loan to the water agency. Instead of the agency having to make 
interest payments to the bondholders, as would be the case with 
conventional tax-exempt municipal bonds, the Federal Government would 
provide the bondholders with a tax credit equal to what the interest 
payments would have been. Under the proposal, the agency would save 
over $60 million in interest payments on a $100 million water supply 
project, which is the type of subsidy necessary to offset the upfront 
capital expenditure.
  Working with Representative Brown-Waite, I hope this Congress moves 
with all due speed to consider and pass this vital legislation. Let me 
also take this opportunity to invite all of my colleagues to join me in 
sponsoring this bill that takes concrete action to address our nation's 
future water needs.

[[Page E2830]]



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