House Bill Introduced to Allow PAB Financing of Green Infrastructure
(October 16, 2018) - Reps. Kilmer (D-WA), Heck (D-WA), and Kaptur (D-MI) recently introduced H.R. 7041, the Preventing Pollution through Partnership (P3) Act, which aims to increase green infrastructure investment to improve water quality by providing a new financing tool for green infrastructure projects. Specifically, the bill would amend federal tax code to include green infrastructure in the definition of eligible uses of private activity bonds (PABs), allowing for PABs to be issued for projects where 95 percent or more of bond proceeds will be used to develop, carry out, or certify green infrastructure projects.
The idea behind for the legislation came from a project in the bill sponsors’ home state of Washington, where a private corporation and a non-profit entity partnered on a large-scale green infrastructure project – a private investment providing public benefit. The bill is envisioned as a means to help provide new financing tools to spur similar public-private green infrastructure collaboration and help local communities achieve their green infrastructure and stormwater management objectives.
NACWA provided comments to Rep. Kilmer’s staff as the bill was being drafted. While the bill is anticipated to remain a marker bill in the waning days of the 115th Congress, its sponsors are planning to reintroduce and push to advance the bill next year. Contact Kristina Surfus, NACWA’s Legislative Director, to discuss.