Water Infrastructure Financing Legislation: Comparison of S. 2550 and H.R. 1560
Publication Date: July 2004
Publisher: Library of Congress. Congressional Research Service
Author(s):
Research Area: Environment
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Abstract:
This report provides a side-by-side comparison of two major bills in the 108th Congress concerning water infrastructure project financing. It compares provisions of S. 2550, the Water Infrastructure Financing Act, which would amend the Clean Water Act (CWA) and the Safe Drinking Water Act (SDWA), and H.R. 1560, the Water Quality Financing Act of 2003, which would amend only the CWA. H.R. 1560 was approved by a House Transportation and Infrastructure subcommittee on July 17, 2003; S. 2550 was approved by the Senate Environment and Public Works Committee on June 23, 2004.
The CWA and SDWA provisions in these two bills principally involve the portions of those laws that authorize federal financial assistance to State Revolving Loan Funds (SRFs) for purposes of building and upgrading wastewater treatment and drinking water treatment facilities. Congress established the CWA SRF program in 1987 and the SDWA SRF program in 1996. Under both, federal capitalization grants are provided as seed money for state-administered loan programs. Communities repay loans to the state, providing a source of capital for future loans and other investments. Both laws contain provisions that specify requirements for states to establish SRFs and requirements that apply to the SRFÕs operation, such as plans and reporting. Both define categories of projects eligible for assistance, who may receive assistance, and types of assistance activities.
A key intention of both bills is to extend SRF authorizations. S. 2550 authorizes $35 billion for FY2005-FY2009 for capitalization grants ($20 billion for the CWA SRF, $15 billion for the SDWA SRF). H.R. 1560 authorizes $20 billion for CWA SRF capitalization grants for FY2004-FY2008. In addition, both would conform the two laws in several respects. For example, the SDWA currently allows states to offer additional subsidization to disadvantaged communities and longer loan repayment periods, and both bills would add similar provisions to the CWA.
The bills are not identical, however. In some cases, they take different approaches to an issue, such as how to revise the formula for state-by-state allotment of CWA SRF capitalization grants. S. 2550 includes provisions that would apply prevailing wage requirements of the Davis-Bacon Act to projects that receive SRF funding, and it includes a new grant program to assist small community drinking water projects, as well as grant programs to address lead contamination in schools and in the District of Columbia. H.R. 1560 includes provisions requiring communities to plan for capital replacement needs and to implement an asset management plan for the repair and maintenance of infrastructure.
Future prospects for the legislation are uncertain for several reasons, including controversies over application of the Davis-Bacon Act, Administration opposition to funding levels in the bills, limited legislative time remaining in the 108th Congress, and the lack of House consideration of a counterpart to the SDWA provisions of S.2550. This report will be updated as warranted.