,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bcde  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ae1 #bjad
 ,mr4 ,menendez 7for himself and ,mr4   
,crapo7 introduced the following bill2  
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to provide that the volume cap for
 private activity bonds shall not apply 
to bonds for facilities for the         
furnishing of water and sewage          
facilities4  #a4 ,short title ,this ,act
 may be cited as the ,sustainable ,water
 ,infrastructure ,investment ,act of    
#bjac4  #b4 ,findings and purpose  7a7  
,findings ,congress finds the following3
  7#a7 ,our ,nation's water and         
wastewater systems are among the best in
 the world1 providing safe drinking     
water and sanitation to our citizens4   
7#b7 ,in addition to protecting the     
health of our citizens1 community water 
systems are essential to our local      
economies1 enabling industries to       

achieve growth and productivity that    
make ,america strong and prosperous4    
7#c7 ,regulated under title ,,xiv of the
 ,public ,health ,service ,act 7#db     
,u4,s4,c4 #cjj;f et seq42 commonly known
 as the ,safe ,drinking ,water ,act7 and
 the ,federal ,water ,pollution ,control
 ,act 7#cc ,u4,s4,c4 #abea et seq471    
community drinking water systems and    
wastewater collection and treatment     
facilities are critical elements in the 
,nation's infrastructure4  7#d7 ,water  
and wastewater infrastructure is        
comprised of a mixture of old and new   
technology4 ,in many local communities  
across the ,nation1 the old             
infrastructure has deteriorated to      
critical conditions and is very costly  
to replace4 ,recent government studies  
have estimated costs of #ejj1jjj1jjj1jjj
 to #hjj1jjj1jjj1jjj over the next #bj  
years for maintaining and improving the 
existing inventory1 building new        
infrastructure1 and meeting new water   
quality standards4  7#e7 ,the historical

 approach of funding infrastructure is  
insufficient to meet the investment     
needs of the future4  7#f7 ,the ,federal
 partnership with ,state and local      
communities has played a pivotal role in
 improving the ,nation's water quality  
and drinking water supplies4 ,federal   
assistance under this partnership has   
been the linchpin of these improvements4
  7#g7 ,in light of constrained ,federal
 budgets1 the availability of           
exempt-facility financing represents an 
important financing tool to help close  
the gap between funds currently being   
invested and water infrastructure needs1
 preserving the ,federal partnership4   
7#h7 ,providing alternative financing   
solutions1 such as tax-exempt           
securities1 encourages investment in    
water and wastewater infrastructure that
 in turn creates local jobs and protects
 the health of our citizens4  7#i7      
,federally mandated ,state volume cap   
restrictions in conjunction with other  
priorities have limited the use of      

tax-exempt securities on water and      
wastewater infrastructure investment4   
7#aj7 ,removal of ,state volume caps for
 water and wastewater infrastructure    
will accelerate and increase overall    
investment in the ,nation's critical    
water infrastructure2 facilitate        
increased use of innovative             
infrastructure delivery methods         
supporting sustainable water systems    
through public-private partnerships that
 optimize design1 financing1            
construction1 and long-term management1 
maintenance and viability2 and provide  
for more effective risk management of   
complex water infrastructure projects by
 municipal utility and private sector   
partners4  7b7 ,purpose ,the purpose of 
this ,act is to provide alternative     
financing for long-term infrastructure  
capital investment programs1 and to     
restore the ,nation's safe drinking     
water and wastewater infrastructure     
capability and protect the health of our
 citizens4  #c4 ,exempt-facility bonds  

for sewage and water supply facilities  
7a7 ,bonds for water and sewage         
facilities exempt from volume cap on    
private activity bonds ,paragraph 7#c7  
of section #adf7;g7 of the ,internal    
,revenue ,code of #aihf is amended by   
inserting 7#d71 7#e71 after 7#b714  7b7 
,conforming change ,paragraphs 7#b7 and 
7#c77;,b7 of section #adf7k7 of the     
,internal ,revenue ,code of #aihf are   
both amended by striking 7#d71 7#e71    
7#f71 and inserting 7#f74  7c7          
,effective date ,the amendments made by 
this section shall apply to obligations 
issued after the date of the enactment  
of this ,act4