Water Infrastructure Financing Legislation: Comparison of S. 1961 and H.R. 3930 (CRS Report for Congress)
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| Release Date |
June 10, 2002 |
| Report Number |
RL31344 |
| Report Type |
Report |
| Authors |
Claudia Copeland and Mary Tiemann, Resources, Science and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
This report provides a side-by-side comparison of two major bills in the 107th Congress
concerning
water infrastructure project financing. It compares provisions of S. 1961 , the Water
Investment Act of 2002, which would amend both the Clean Water Act (CWA) and Safe Drinking
Water Act (SDWA), and H.R. 3930 , the Water Quality Financing Act of 2002, which
would amend only the CWA. It also describes relevant provisions of current law that would be
affected or modified by the bills.
The CWA and SDWA provisions that these two bills would amend are principally 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 in
compliance with the laws. 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 loans, which communities repay to the state, providing a source of capital for
future investments. Both laws contain provisions that specify requirements for states to establish
SRFs and requirements that apply to the SRF's 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. 1961 authorizes $35
billion total for FY2003-2007 ($20 billion for the CWA SRF, $15 billion for the SDWA SRF), while
H.R. 3930 also authorizes $20 billion for the CWA SRF for the same time period. In
addition, both would conform the two laws in several respects. For example, the SDWA currently
allows states to offer longer loan repayment periods and additional subsidization to disadvantaged
communities, and both bills would add parallel 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 SRF capitalization grants. They
differ in other ways, as well. S. 1961, but not H.R. 3930, includes provisions
modeled on the current SDWA that would allow private utilities to receive CWA SRF assistance.
S. 1961 includes other provisions not in the House bill. One requires a study of public
water system and wastewater treatment works rate structures. Another calls for a study of to identify
status and trends of freshwater and groundwater resources in the United States. It also includes a
new grant program to assist small community drinking water projects. H.R. 3930 includes
some provisions not in the Senate bill. For example, it would extend requirements for 11 CWA
reports to Congress.
Congressional committees are considering this water infrastructure legislation. Following a
hearing on March 13, 2002, the House Transportation and Infrastructure Committee approved H.R.
3930 on March 20. The Senate Environment and Public Works Committee held hearings
on S. 1961 and several other bills on February 26 and 28 and approved S. 1961
with amendments on May 17.
