Some of the options exist and are well established, but they are under discussion for extension or modification. Other innovative policy options have been proposed in connection with water infrastructure, especially to supplement or complement existing financing tools. Some are intended to encourage private participation in financing of drinking water and wastewater projects. Some are intended to provide robust, long-term revenue to support existing financing programs and mechanisms. This report analyzes six policy options, including their federal budgetary implications, related to financing water infrastructure that were reflected in legislation in the 114 th Congress. Increase funding for the State Revolving Fund (SRF) programs in the Clean Water Act (CWA) and the Safe Drinking Water Act (SDWA). Create a "Water Infrastructure Finance and Innovation Act" Program (WIFIA). Create a federal water infrastructure trust fund. Lift restrictions on private activity bonds for water infrastructure projects. Reinstate authority for the issuance of Build America Bonds (BABs). Since the 112 th Congress, a number of these options have been examined by congressional committees, including the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee. A pilot program for one of them—WIFIA—was enacted during the 113 th Congress and is discussed below. Nevertheless, interest in other financing options continues, in part due to long-standing concerns with the costs to repair aging and deteriorated U.S. infrastructure generally, and also in response to events in individual regions and cities, such as Flint, MI, where problems of elevated lead levels in its drinking water distribution system have recently drawn public attention. Another House bill, H.R. P.L. For example, several legislative proposals in the 114 th Congress would have established a similar program for water reclamation and reuse projects in western states. Legislation has been introduced in several Congresses, including H.R. 4468 , H.R. 5313 , and S. 2848 in the 114 th Congress. 3337 and S. 268 ); and the Jobs! An infrastructure bank proposal also was included in the Obama Administration's FY2017 budget. H.R. 413 and H.R. 3555 . H.R. 499 , S. 2606 , and S. 2821 ). Conclusion

Consensus exists among many stakeholders—state and local governments; equipment manufacturers, construction companies, and engineers; and environmental advocates—on the need for more investment in water infrastructure. There is no consensus supporting a preferred option or policy, and many advocate a combination that will expand the financing "toolbox" for projects. Some of the options discussed in this report may be helpful in addressing financing problems, but there is no single method or "silver bullet" that will address needs fully or close the financing gap completely. For example, some, such as a WIFIA or a national infrastructure bank, may be helpful to projects in large urban or multijurisdictional areas, while others, such as expanded SRF programs, may be more beneficial in smaller communities. 113-121 , at least for the near term, most communities will continue to rely on the existing SRF programs, tax-exempt governmental bonds, and available tax-exempt private activity bonds to finance their water infrastructure needs.
This report addresses several options considered by Congress to address the financing needs of local communities for wastewater and drinking water infrastructure projects and to decrease or close the gap between available funds and projected needs. Some of the options exist and are well established, but they have been under discussion for expansion or modification. Other innovative policy options for water infrastructure have been proposed, especially to supplement or complement existing financing tools. Some are intended to provide robust, long-term revenue to support existing financing programs and mechanisms. Some are intended to encourage private participation in financing of drinking water and wastewater projects.
Six options reflected in legislative proposals in the 114th Congress, including their federal budgetary implications, are discussed.
Increase funding for the State Revolving Fund (SRF) programs in the Clean Water Act and the Safe Drinking Water Act (S. 2532/S. 2583, H.R. 4653, and H.R. 4954). Create a "Water Infrastructure Finance and Innovation Act" Program, or WIFIA (P.L. 113-121 in the 113th Congress; several bills in the 114th Congress that proposed to establish a similar program for water reclamation and reuse projects in western states are H.R. 291/S. 176, S. 1837, S. 1894, and S. 2533/H.R. 5247). Create a federal water infrastructure trust fund (H.R. 4468, H.R. 5313, and S. 2848). Create a national infrastructure bank (included in the Administration's FY2017 budget request and H.R. 413, H.R. 625, H.R. 3337, H.R. 3555, S. 268, and S. 1589). Lift restrictions on private activity bonds for water infrastructure projects (included in the Administration's FY2017 budget request and H.R. 499, S. 2606, and S. 2821). Reinstate authority for the issuance of Build America Bonds (included in the Administration's FY2017 budget request and H.R. 2676).
A number of these options have been examined by congressional committees since the 112th Congress. A pilot program for one of them—WIFIA—was enacted in 2014. Nevertheless, interest in other financing options continues, in part due to long-standing concerns regarding the costs to repair aging and deteriorated U.S. infrastructure generally, and also in response to events in individual regions and cities, such as Flint, MI, where problems of elevated lead levels in its drinking water distribution system have recently drawn public attention.
Consensus exists among many stakeholders—state and local governments, equipment manufacturers and construction companies, and environmental advocates—on the need for more investment in water infrastructure. There is no consensus supporting a preferred option or policy, and many advocate a combination that will expand the financing "toolbox" for projects. Some of the options discussed in this report may be helpful, but there is no single method that will address needs fully or close the financing gap completely. For example, some may be helpful to projects in large urban or multijurisdictional areas, while others may be more beneficial in smaller communities. At least for the near term, communities will continue to rely on the existing SRF programs, tax-exempt governmental bonds, and tax-exempt private activity bonds to finance their water infrastructure needs.