March 2016, Vol. 71, No. 3
Business
Sustainable Water Infrastructure Act Designed to Prevent Another Water Crisis Like Flint
As reported by the Clean Water Council (CWC), in mid-February, U.S. Senators Robert Menendez and Cory Booker, together with Congressman Bill Pascrell, outlined federal legislation designed to prevent another water crisis, such as the ongoing issues in Flint, MI.
The Sustainable Water Infrastructure Act (SWIA) would stimulate billions in private sector investment in large-scale repairs and upgrades to water and wastewater systems. Significantly, the legislation would revise the federal tax code to exempt private activity bonds (PABs) used for water and wastewater projects from the volume cap enforced by the IRS. The CWC continues to support this piece of legislation, as it has when introduced in the past. Removing water projects from beneath the volume cap for PABs would open the door for greater financing by the private sector.
Senator Menendez and Representative Pascrell introduced the SWIA in each of the past four Congresses, but concluded to reintroduce it following the public health crisis Flint is currently facing.
The lawmakers announced the bill on the grounds of Suez North America, a Hackensack, NJ water company that supports private investment in water infrastructure projects. According to Robert Iacullo, Suez executive vice president, many water system pipe in New Jersey are several decades old – some even more than 70 years old.
“We know that cities across New Jersey and across our nation need high levels of investment. And that’s why we support the swift passage of this important legislation,” Iacullo said.
Cities across the country, much like Flint, cannot afford the cost of the major repairs necessary to avert water contamination. In order to avert more neglect within these communities, the responsibility will fall on the federal government to intervene. The CWC will continue to lobby vigorously for swift passage of the SWIA.
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