After a week of Senate debate on the “Water Resources Development Act of 2013” (S. 601), a proposed “Water Infrastructure Finance and Innovation Act (WIFIA) pilot program remains intact in the bill, though senators added an amendment to help rural communities access WIFIA funds and a “Buy American” amendment is pending.
Title X of S. 601 would establish a WIFIA pilot program to help water and wastewater utilities finance large-scale projects. To qualify for the loans, a project must be expected to cost more than $20 million. But an amendment unanimously approved by the Senate would modify WIFIA and set a lower, $5 million cost threshold for projects at rural water systems (defined as those that serve fewer than 25,000 people). The amendment does not set aside any portion of WIFIA funding for these smaller projects, nor does it alter any other WIFIA eligibility requirements.
Sen. Jeff Merkley (D-Ore.), the Senate’s leading WIFIA advocate, called the amendment a “very helpful addition” to the bill that will aid smaller communities competing for WIFIA assistance. Politically, the amendment could also build support among members of Congress who represent rural areas.
Another proposed amendment would impose “Buy American” requirements for iron, steel and manufactured goods used on WIFIA-funded projects. It is not yet known whether this amendment will receive a vote in the Senate, but lawmakers applied a similar requirement to funds delivered through the last major water infrastructure bill approved by Congress – the 2009 economic stimulus legislation.
The latest version of S. 601 also includes a provision that would block the use of tax-exempt financing on any water project that receives WIFIA funds. Senate staff say this provision was necessary for WIFIA to receive a neutral budget score (and thus be attached to S. 601) but promise it will be modified before any WIFIA program becomes law.