Reps. Pascrell, Geoff Davis; Sens. Menendez, Crapo Introduce Bipartisan Legislation to Help Create Jobs by Encouraging Private Investment in Water Infrastructure Upgrades

Press Release

Citing the nation's undeniable needs for jobs creation and updated water systems, U.S. Reps. Bill Pascrell, Jr. (D-NJ-8) and Rep. Geoff Davis (R-KY-4) and U.S. Sens. Robert Menendez (D-NJ) and Mike Crapo (R-ID) introduced legislation today aimed at creating jobs by encouraging private investment in water infrastructure upgrade projects.

"Our nation's job deficit and deteriorating water systems have gotten to the point that if you randomly pick up a newspaper in any American city, there's a good chance you find a story about a company's job cuts or a community's water main break -- maybe both," said Pascrell, a member of the House Ways and Means and Budget Committees. "Taxpayers cannot be expected to foot the entire bill for all of the repairs and updates that our water infrastructure needs. That is why this legislation will encourage this is a public- private partnership that will unlock upwards of 50 billion dollars of private capital for the public good. More people will be put back to work and more reliable water services will be provided in communities across the nation."

"This bill is an important step forward in incentivizing public-private partnerships to bring in needed private capital to ensure that water infrastructure is safe and reliable," Rep. Geoff Davis (R-KY) said. "I am pleased to have worked with Representative Pascrell on this important legislation that will make the financing of water infrastructure projects more affordable."

"We're all too familiar with the increasing frequency of water main breaks that unexpectedly flood random areas, disrupting businesses, transportation, and the daily lives of so many on any given day," said Senator Menendez. "This legislation could create over a million jobs leveraging a modest investment by the federal government into billions of dollars of critical private economic investment to upgrade and rebuild aging water infrastructure in communities across the nation. Creating private sector jobs to ensure American families have reliable access to clean water is a win for our workers, taxpayers, and the communities we live in."

"Small communities need, and deserve, federal support to comply with federal water and wastewater guidelines," Sen. Crapo said. "This bill would allow local communities to leverage private capital markets in combination with other financial mechanisms to finance water and wastewater infrastructure projects. It makes financial sense for communities and will improve public health and water quality."

The Sustainable Water Infrastructure Investment Act of 2011, H.R. 1802, provides for the removal of state volume caps on private activity bonds (PABs) for water and wastewater financing. Congress has already exempted airports, intercity high-speed rail, and solid waste disposal sites from these bond caps.

The legislation would allow water systems easier access to capital throughout the nation.

PAB issuance would be one of the fastest forms of federal assistance when applied to water and wastewater projects, with only 90-120 days needed to complete the process -- from approval to sale -- and get Americans to work. In the first year of implementation alone the legislation is expected to create 28,500 new jobs.

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