Market Overview

NAWC Applauds Introduction of "Sustainable Water Infrastructure Investment Act"

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The National Association of Water Companies (NAWC) applauds the
reintroduction of the "Sustainable Water Infrastructure Investment Act"
(S. 3358) by Senators Bob Menendez (D-NJ) and Mike Crapo (R-ID). The
"Sustainable Water Infrastructure Investment Act" would stimulate
private investment in drinking water and wastewater systems by modifying
the tax code to remove state volume caps on the issuances of government
private activity bonds. This is the same tax treatment other types of
public infrastructure already receive, including airports, high-speed
rail, and the solid waste disposal industry.

"There's widespread consensus that our nation's water infrastructure
needs an investment boost. And there's no doubt that investment is also
good for our economy. If enacted into law, this legislation could bring
billions in new water infrastructure investment and help create and
support more than 1.4 million jobs," explained NAWC President and CEO
Robert Powelson. "Eliminating the volume cap on water infrastructure
will lead to new drinking water and wastewater infrastructure
investment, while allowing the issuance of exempt facility bonds
provides municipalities with a lower cost financing option. All of this
adds up to a major win for our water systems, communities and each and
every American."

Private Activity Bonds (PAB) are a form of tax-exempt financing for
state and municipal governments that want to partner with a private
entity to meet a public need. Exempt facility bonds utilize private
capital instead of public debt and shift the risk and long-term debt
from the municipality to the private partner. The tax-exempt bonds
provide lower cost financing, which, in turn, provides lower costs for
customers. In addition, eliminating the volume cap on water
infrastructure along with other regulatory changes could lead to an
additional $43 billion in incremental private water infrastructure
investment; $15-25 billion in incremental private wastewater
infrastructure investment; and generate a potential $20 billion from
public-private partnerships.

The "Sustainable Water Infrastructure Investment Act" (H.R. 3009) was
introduced in the House by Congressmen John Duncan (R-TN) and Bill
Pascrell (D-NJ). NAWC urges swift passage of the "Sustainable Water
Infrastructure Investment Act" in order to facilitate and expedite
investment in America's water infrastructure.

About the NAWC

The National Association of Water Companies (NAWC) represents regulated
water and wastewater companies, as well as ones engaging in partnerships
with municipal utilities. NAWC members provide 73 million Americans with
safe and reliable water service every day and have an exceptional record
of compliance with federal and state health and environmental
regulations. Ensuring this high standard of quality requires
extraordinary amounts of capital investment. NAWC estimates that its six
largest members alone are collectively investing $2.7 billion each year
in their water and wastewater systems.

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