AMWA-backed proposals to enact a WIFIA (“Water Infrastructure Finance and Innovation Act”) program, boost funding for the Drinking Water State Revolving Fund (SRF) and protect tax-exempt municipal bond interest were all praised by lawmakers last week during AMWA’s Water Policy Conference in Washington, D.C.
WIFIA was a frequent topic, with several speakers raising expectations that a version of the proposal will win a place in larger water resources legislation Congress is expected to complete later this spring. Rep. Tim Bishop (D-N.Y.), who is part of a conference committee negotiating the larger water resource bill, told attendees WIFIA has a “fair shot” at finding a place in the legislation.
Lawmakers would not comment, however, on the extent to which any final WIFIA language would mirror a version approved by the U.S. Senate last year. That bill would offer low-cost loans for major drinking water and wastewater projects expected to cost more than $20 million, but would also restrict the use of tax-exempt debt to finance project costs not covered by WIFIA.
Congressional speakers at the conference also pushed back against the Obama Administration’s request to cut $581 million from the Drinking Water and Clean Water SRFs in the next fiscal year. Rep. Bob Gibbs (R-Ohio) explained that while reducing spending is important, “cutting the SRFs is not the way to go.”
Preserving tax-exempt municipal bond interest was a popular position among lawmakers including Rep. Randy Hultgren (R-Ill.), who said “protecting municipal bonds is a Main Street issue.” These comments were in reaction to various proposals to scale back the exemption for high-income earners – a policy that would likely raise borrowing costs for municipalities. Several speakers said the scale-back proposals would not move through Congress this year, but could return in the future. As a result, they recommended utilities start working now to raise awareness among other members of Congress of the value of muni bonds.