,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bbhi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #bd1 #bjba ,mr4  
,m55dez 7= himself & ,mr4 ,book]7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide =      
direct-pay cr$it bonds 9 ! case ( c]ta9 
bonds ! proce$s ( :i* are us$ = !       
replacem5t ( lead dr9k+ wat] s]vice     
l9es4  #a4 ,%ort title ,?is ,act may be 
cit$ z ! ,lead-,free ,am]ica ,bonds ,act
 ( #bjba4  #b4 ,cr$it to issu] = lead   
dr9k+ wat] s]vice l9e bonds  7a7 ,9     
g5]al ,sub*apt] ,b ( *apt] #fe ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#fdca4 ,cr$it all[$ to issu] = lead     
dr9k+ wat] s]vice l9e bonds  7a7 ,9     
g5]al ,9 ! case ( a qualifi$ lead dr9k+ 
wat] s]vice l9e bond1 ! issu] ( su* bond
 %all be all[$ a cr$it ) respect to ea* 
int]e/ paym5t "u su* bond :i* %all be   
payable by ! ,secret>y z provid$ 9      

subsection 7b74  7b7 ,paym5t ( cr$it    
7#a7 ,9 g5]al ,! ,secret>y %all pay     
7contemporane\sly ) ea* date on :i*     
int]e/ is s payable7 to ! issu] ( su*   
bond 7or to any p]son :o makes su*      
int]e/ paym5ts on behalf ( su* issu]7 an
 am\nt equal to s mu* ( su* int]e/ t is 
payable at a rate n 9 excess ( !        
applicable int]e/ rate det]m9$ "u       
p>agraph 7#b74  7#b7 ,applicable int]e/ 
rate  7,a7 ,9 g5]al ,! applicable int]e/
 rate det]m9$ "u ?is p>agraph = any     
qualifi$ lead dr9k+ wat] s]vice l9e bond
 %all be ! rate :i* ! ,secret>y e/imates
 w p]mit ! issuance ( qualifi$ lead     
dr9k+ wat] s]vice l9e bonds ) a specifi$
 maturity or r$emption date )\t disc\nt 
& )\t additional int]e/ co/4  7,b7      
,proc$ure = rate det]m9ations  7i7 ,9   
g5]al ,su* rate ) respect to any        
qualifi$ lead dr9k+ wat] s]vice l9e bond
 %all be det]m9$ z ( ! fir/ day on :i*  
!re is a b9d+1 writt5 contract = ! sale 
or ex*ange ( ! bond4  7ii7 ,me?od &     
frequ5cy ,= purposes ( ?is p>agraph1 !  

,secret>y w det]m9e & ann\nce cr$it     
rates daily = qualifi$ lead dr9k+ wat]  
s]vice l9e bonds bas$ on ! ,secret>y's  
e/imate ( ! yields on out/&+ bonds f    
m>ket sectors select$ at ! discretion ( 
! ,secret>y t1 = ! bus9ess day          
imm$iately prec$+ ! sale date ( ! bonds1
 h an inve/m5t grade rat+ ( betwe5 ,a & 
,,bbb = bonds ( a simil> maturity & =   
:i* ! int]e/ w\ld be includ$ 9 gross    
income4  7c7 ,qualifi$ lead dr9k+ wat]  
s]vice l9e bond  7#a7 ,9 g5]al ,=       
purposes ( ?is section1 ! t]m qualifi$  
lead dr9k+ wat] s]vice l9e bond means   
any bond 7o!r ?an a private activity    
bond7 issu$ z "p ( an issue if--  7,a7  
#ajj p]c5t ( ! available project proce$s
 ( su* issue are to be us$ = replac+    
lead compon5ts ( #a or m eligible public
 wat] sy/ems t are n lead free1 includ+ 
any publicly or privately own$ portion (
 a lead s]vice l9e ( ! eligible public  
wat] sy/em1  7,b7 ! int]e/ on su* bond  
w\ld 7b = ?is section7 be excludable f  
gross income "u section #ajc1  7,c7 !   

issue price has n m ?an a de m9imis     
am\nt 7det]m9$ "u rules simil> to !     
rules ( section #abgc7;a77#c77 ( premium
 ov] ! /at$ pr9cipal am\nt ( ! bond1 &  
7,d7 prior to ! issuance ( su* bond1 !  
issu] makes an irrevocable election to h
 ?is section apply4  ,except ^u approval
 by ! ,environm5tal ,protection ,ag5cy =
 circum/ances 9 :i* !re are em]g5t      
public heal? risks1 none ( ! available  
project proce$s ( su* issue %all be us$ 
= a p>tial lead s]vice l9e replacem5t4  
7#b7 ,applicable rules ,= purposes (    
apply+ p>agraph 7#a7-- 7,a7 ,n treat$ z 
f$]ally gu>ante$ ,= purposes ( section  
#adi7;b71 a qualifi$ lead dr9k+ wat]    
s]vice l9e bond %all n be treat$ z      
f$]ally gu>ante$ by reason ( ! cr$it    
all[$ "u ?is section4  7,b7 ,application
 ( arbitrage rules ,= purposes ( section
 #adh1 ! yield on a qualifi$ lead dr9k+ 
wat] s]vice l9e bond %all be r$uc$ by ! 
cr$it all[$ "u ?is section4  7d7        
,def9ition & special rules ,= purposes (
 ?is section--  7#a7 ,int]e/ includible 

9 gross income ,= purposes ( ?is title1 
int]e/ on any qualifi$ lead dr9k+ wat]  
s]vice l9e bond %all be includible 9    
gross income4  7#b7 ,eligible public    
wat] sy/em  7,a7 ,9 g5]al ,! t]m        
eligible public wat] sy/em means1 )     
respect to any bond--  7i7 9 ! case ( a 
public wat] sy/em ) respect to :i* !    
own] or op]ator 01 dur+ ! #f-ye> p]iod  
prec$+ ! date ( enactm5t ( ! ,lead-,free
 ,am]ica ,bonds ,act ( #bjba1 requir$ to
 give lead action level notice1 su* bond
 0 issu$ dur+ ! #c-ye> p]iod subsequ5t  
to ! date ( enactm5t ( su* ,act1 or     
7ii7 9 ! case ( a public wat] sy/em )   
respect to :i* ! own] or op]ator 01 at  
any "t subsequ5t to ! date ( enactm5t ( 
! ,lead-,free ,am]ica ,bonds ,act (     
#bjba1 requir$ to give lead action level
 notice1 su* bond 0 issu$ dur+ ! #c-ye> 
p]iod subsequ5t to su* notice4  7,b7    
,public wat] sy/em ,! t]m public wat]   
sy/em has ! mean+ giv5 su* t]m 9 section
 #adja7d7 ( su* ,act 7#db ,u4,s4,c4     
#cjj;f7#d774  7,c7 ,lead free ,! t]m    

lead free has ! mean+ giv5 su* t]m 9    
section #adag7;d7 ( su* ,act 7#db       
,u4,s4,c4 #cjj;g-#f7;d774  7,d7 ,lead   
s]vice l9e ,! t]m lead s]vice l9e has ! 
mean+ giv5 su* t]m 9 section            
#adei;,b7a77#d7 ( su* ,act 7#db         
,u4,s4,c4 #cjj;j-#ai;b7a77#d774  7,e7   
,lead action level notice ,! t]m lead   
action level notice means notice "u     
section #adad7;c77#a77;,d7 ( ! ,safe    
,wat] ,dr9k+ ,act 7#db ,u4,s4,c4 #cjj;g-
 #c7;c77#a77;,d77 t ! public wat] sy/em 
exce$$ ! lead action level4  7#c7       
,failure to sp5d requir$ am\nt ( bond   
proce$s )9 #e ye>s  7,a7 ,9 g5]al ,if at
 ! close ( ! #e-ye> p]iod beg9n+ on !   
date ( issuance less ?an #ajj p]c5t ( ! 
available project proce$s ( ! issue are 
exp5d$ = ! purposes specifi$ 9          
subsection 7c77#a77;,a71 ! issu] %all   
r$eem all ( ! nonqualifi$ bonds )9 #ij  
days aft] ! end ( su* p]iod4 ,= purposes
 ( ?is p>agraph1 ! am\nt ( ! nonqualifi$
 bonds requir$ to be r$eem$ %all be     
det]m9$ 9 ! same mann] z "u section     

#adb4  7,b7 ,ext5sion ( p]iod ,^u       
submission ( a reque/ prior to !        
expiration ( ! #e-ye> p]iod "u          
subp>agraph 7,a71 ! ,secret>y may ext5d 
su* p]iod if ! issu] e/abli%es t !      
failure to exp5d ! proce$s )9 su* p]iod 
is due to reasonable cause & !          
exp5ditures = ! purposes describ$ 9     
subsection 7c77#a77;,a7 w cont9ue to    
proce$ ) due dilig5ce4  7#d7 ,available 
project proce$s ,! t]m available project
 proce$s means-- 7,a7 ! excess (--  7i7 
! proce$s f ! sale ( an issue1 ov]  7ii7
 ! sum (--  7,i7 issuance co/s f9anc$ by
 ! issue 7! ext5t t su* co/s d n exce$  
#b p]c5t ( su* proce$s71 &  7,,ii7      
am\nts 9 a reasonably requir$ res]ve 7)9
 ! mean+ ( section #aej7;a77#c77 )      
respect to su* issue71 &  7,b7 ! proce$s
 f any inve/m5t ( ! excess describ$ 9   
clause 7i74  7#e7 ,curr5t refund+s all[$
  7,a7 ,9 g5]al ,9 ! case ( a bond issu$
 to refund a qualifi$ lead dr9k+ wat]   
s]vice l9e bond1 su* refund+ bond %all  
be treat$ z a qualifi$ lead dr9k+ wat]  

s]vice l9e bond = purposes ( ?is section
 if--  7i7 ! av]age maturity date ( !   
issue ( :i* ! refund+ bond is a "p is n 
lat] ?an ! av]age maturity date ( !     
bonds to be refund$ by su* issue1  7ii7 
! am\nt ( ! refund+ bond does n exce$ ! 
out/&+ am\nt ( ! refund$ bond1 &  7iii7 
! refund$ bond is r$eem$ n lat] ?an #ij 
days aft] ! date ( ! issuance ( !       
refund+ bond4  7,b7 ,det]m9ation (      
av]age maturity ,= purposes (           
subp>agraph 7,a77i71 av]age maturity    
%all be det]m9$ 9 accordance ) section  
#adg7;b77#b77;,a74  7#f7 ,application ( 
,davis-,bacon act requirem5ts ) respect 
to qualifi$ lead dr9k+ wat] s]vice l9e  
bonds ,sub*apt] ,,iv ( *apt] #ca ( title
 #dj1 ,unit$ ,/ates ,code1 %all apply to
 projects f9anc$ ) ! proce$s ( qualifi$ 
lead dr9k+ wat] s]vice l9e bonds 7o!r   
?an bonds issu$ to refund a bond        
orig9ally issu$ be=e ! date ( ! enactm5t
 ( ?is ,act74  7e7 ,regulations ,!      
,secret>y may prescribe su* regulations 
& o!r guidance z may be necess>y or     

appropriate to c>ry out ?is section4  4 
7b7 ,paym5ts made "u section #fdca ( !  
,int]nal ,rev5ue ,code ( #aihf ,section 
#bee7;g77#a77;,a7 ( ! ,balanc$ ,budget &
 ,em]g5cy ,deficit ,control ,act ( #aihe
 7#b ,u4,s4,c4 #ije7;g77#a77;,a77 is    
am5d$ by ins]t+3 ,paym5ts made "u       
section #fdca ( ! ,int]nal ,rev5ue ,code
 ( #aihf aft] ! item relat$ to ,paym5t  
to ,radiation ,exposure ,comp5sation    
,tru/ ,fund4  7c7 ,cl]ical am5dm5t ,!   
table ( sections = sub*apt] ,b ( *apt]  
#fe ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by add+ at ! end ! foll[+ new  
item3  ,sec4 #fdca4 ,cr$it all[$ to     
issu] = qualifi$ lead dr9k+ wat] s]vice 
l9e bonds4  4  7d7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to bonds issu$ m ?an #cj days aft] !    
date ( ! enactm5t ( ?is ,act4