NAWC commends introduction of bond cap removal bill
The National Association of Water Companies has commended the introduction of Senate bill S. 2345, which would remove the volume cap on private activity bonds used for drinking water and sewage treatment improvement projects.
WASHINGTON, DC, May 20, 2014 -- The National Association of Water Companies (NAWC) has commended the introduction of Senate bill S. 2345, by Senators Robert Menendez (D-NJ) and Michael Crapo (R-ID). Proposed on Thursday, May 15, the measure would remove the volume cap on private activity bonds (PABs) used for drinking water and sewage treatment improvement projects.
A companion to an earlier bill (H.R. 4237), introduced by Representatives John Duncan (R-TN) and Bill Pascrell (D-NJ), S. 2345 would provide an opportunity for significant new water and sewer endeavors. As such, the NAWC will continue to work with legislators to advance these measures through Congres.
"The infrastructure that delivers clean water to our homes, workplaces, hospitals, and schools in many communities across the county is in disrepair," said Michael Deane, executive director of the NAWC. "A removal on bond caps for water projects will bring funding for this vital piece of the nation's infrastructure in line with airports, high-speed rail and solid waste disposal, all of which are currently exempt from existing caps.
Accordingly, "PABs are a critical source of financing for the public water systems serviced by regulated water utilities," he said, "and serve as an important tool to leverage the value of public private partnerships (PPPs) in resolving the infrastructure gap that exists in our nation’s water systems."
Deane added, "The NAWC and our member companies support the passage of these bills. Removing the volume cap on PABs for water infrastructure investment could generate up to an estimated $5 to 6 billion in private capital for water projects -- providing resources for improving water infrastructure, generating significant tax revenue for states and communities across the country, and spurring job creation."
About the NAWC
The National Association of Water Companies (NAWC) is the voice of the private water industry and the organization exclusively representing this group of quality water service providers, innovation drivers, creative financiers and responsible partners. For more information, visit NAWC.org