Today, Congressmen Bill Pascrell, Jr. (D-NJ) and John J. Duncan, Jr. (R-TN) introduced legislation that would allow local governments to more easily access private funds for water infrastructure projects. The Sustainable Water Infrastructure Act of 2014 removes water and wastewater infrastructure projects from the Private Activity Bond (PAB) volume cap. PABs are a form of financing that allow state and municipal governments to issue tax-exempt bonds to private investors to fund costly infrastructure projects.

"The story of our deteriorating water infrastructure can be told though the seemingly endless water main breaks in communities across our country,” Pascrell said. “By encouraging private investment dollars to help fund critical water infrastructure upgrades instead of public tax dollars, we are making key investments in our country's future at a greatly reduced cost to the taxpayer. This bipartisan legislation is a commonsense way for our nation to update its aging infrastructure while creating good jobs right here in America."

Congress limits the use of PAB volume annually, although airport infrastructure projects have been excused from the caps in the past.

According to the Sustainable Water Infrastructure Coalition, raising the PAB cap on water infrastructure projects would leverage $50 billion in private capital investment, create 1.4 million jobs, and add $101.5 billion in tax revenue to federal, state and local governments.

“Much of our Nation’s water infrastructure is more than 100-years old, and this bill will empower more states and towns to raise the funds needed to address this growing problem,” Duncan said. “Our Nation's health, quality of life, and economic well-being rely on adequate wastewater treatment and access to clean water. I have worked toward this goal for many years and will continue to do so as co-chair of the Clean Water Caucus.”

“If we do not start investing in our water infrastructure now, it is going to cost our Nation many billions more in the future,” Duncan continued. “We need an effective partnership between all levels, Federal, State, and local.”

The U.S. Environmental Protection Agency estimates that $682 billion in infrastructure improvements are needed during the next 20 years in order to meet safe drinking water and sanitation standards.

Key organizations supporting the legislation include National League of Cities, Sustainable Water Infrastructure Coalition, Associated General Contractors of America, American Council of Engineering Companies, Associated Equipment Distributors and Laborers International Union of North America.

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