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Full Text of this Amendment
On page 268, between lines 11 and 12, insert the following:
SEC. __X. CLEAN RENEWABLE WATER SUPPLY BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
"SEC. 54G. CLEAN RENEWABLE WATER SUPPLY BONDS.
"(a) Clean Renewable Water Supply Bonds.--For purposes of this subpart, the term `clean renewable water supply bond' means any bond issued as part of an issue if--
"(1) 100 percent of the available project proceeds of such issue are to be used for capital expenditures incurred by qualified borrowers for 1 or more qualified projects,
"(2) the bond is issued by a qualified issuer,
"(3) the issuer designates such bond for purposes of this section, and
"(4) in the case of a bond issued by a qualified issuer before 2019, the bond is issued--
"(A) pursuant to an allocation by the Secretary to such issuer of a portion of the national clean renewable water supply bond limitation under subsection (b), and
"(B) not later than 6 months after the date that such qualified issuer receives an allocation under subsection (b).
"Any allocation under subsection (b) not used within the 6-month period described in paragraph (4)(B) shall be applied to increase the national clean renewable water supply bond limitation for the next succeeding application period under subsection (b)(2)(B).
"(b) National Limitation on Amount of Bonds Designated.--
"(1) IN GENERAL.--There is a national clean renewable water supply bond limitation for each calendar year before 2019. Such limitation is--
"(A) $0 for 2009,
"(B) $100,000,000 for 2010,
"(C) $150,000,000 for 2011,
"(D) $200,000,000 for 2012,
"(E) $250,000,000 for 2013,
"(F) $500,000,000 for 2014,
"(G) $750,000,000 for 2015,
"(H) $1,000,000,000 for 2016,
"(I) $1,500,000,000 for 2017, and
"(J) $1,750,000,000 for 2018.
"(2) ALLOCATION OF LIMITATION.--
"(A) IN GENERAL.--The limitation under paragraph (1) shall be allocated by the Secretary among qualified projects as provided in this paragraph.
"(B) METHOD OF ALLOCATION.--For each calendar year after 2009 for which there is a national clean renewable water supply bond limitation, the Secretary shall publish a notice soliciting applications by qualified issuers for allocations of such limitation to qualified projects. Such notice shall specify a 3-month application period in the calendar year during which the Secretary will accept such applications. Within 30 days after the end of such application period, and subject to the
requirements of subparagraph (C), the Secretary shall allocate such limitation to qualified projects on a first-come, first-served basis, based on the order in which such applications are received from qualified issuers.
"(C) ALLOCATION REQUIREMENTS.--
"(i) CERTIFICATIONS REGARDING REGULATORY APPROVALS.--No portion of the national clean renewable water supply bond limitation shall be allocated to a qualified project unless the qualified issuer has certified in its application for such allocation that as of the date of such application the qualified issuer or qualified borrower has received all Federal and State regulatory approvals necessary to construct the qualified project.
"(ii) RESTRICTION ON ALLOCATIONS TO LARGE PROJECTS OR TO INDIVIDUAL PROJECTS.--
"(I) IN GENERAL.--Except as provided in subclause (III), for any calendar year the Secretary shall not allocate more than 60 percent of the national clean renewable water supply bond limitation to 1 or more large projects, more than 18 percent of such limitation to any single project that is a large project, or more than 12 percent of such limitation to any single project that is not a large project.
"(II) DEFINITION OF LARGE PROJECT.--For purposes of subclause (I), the term `large project' means a qualified project that is designed to deliver more than 10,000,000 gallons of water per day.
"(III) EXCEPTION TO RESTRICTION.--Subclause (I) shall not apply to the extent its application would cause any portion of the national clean renewable water supply bond limitation for the calendar year to remain unallocated, based on applications for allocations of such limitation received by the Secretary during the application period referred to in subparagraph (B).
"(3) CARRYOVER OF UNUSED LIMITATION.--If the clean renewable water supply bond limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year, such limitation for the succeeding calendar year shall be increased by the amount of such excess.
"(c) Maturity Limitation.--
"(1) IN GENERAL.--A bond shall not be treated as a clean renewable water supply bond if the maturity of such bond exceeds 20 years.
"(2) COORDINATION WITH SECTION 54A.--The maturity limitation in section 54A(d)(5) shall not apply to any clean renewable water supply bond.
"(d) Refinancing Rules.--For purposes of paragraph (a)(1), a qualified project may be refinanced with proceeds of a clean renewable water supply bond only if the indebtedness being refinanced (including any obligation directly or indirectly refinanced by such indebtedness) was originally incurred by a qualified borrower after the date of the enactment of this section.
"(e) Definitions.--For purposes of this section--
"(1) GOVERNMENTAL BODY.--The term `governmental body' means any State or Indian tribal government, or any political subdivision thereof.
"(2) LOCAL WATER COMPANY.--The term `local water company' means any entity responsible for providing water service to the general public (including electric utility, industrial, agricultural, commercial, or residential users) pursuant to State or tribal law.
"(3) QUALIFIED BORROWER.--The term `qualified borrower' means a governmental body or a local water company.
"(4) QUALIFIED DESALINATION FACILITY.--The term `qualified desalination facility' means any facility that is used to produce new water supplies by desalinating seawater, groundwater, or surface water if the facility's source water includes chlorides or total dissolved solids that, either continuously or seasonally, exceed maximum permitted levels for primary or secondary drinking water under Federal or State law (as in effect on the date of issuance of the issue).
"(5) QUALIFIED GROUNDWATER REMEDIATION FACILITY.--The term `qualified groundwater remediation facility' means any facility that is used to reclaim contaminated or naturally impaired groundwater for direct delivery for potable use if the facility's source water includes constituents that exceed maximum contaminant levels regulated under the Safe Drinking Water Act (as in effect on the date of the enactment of this section).
"(6) QUALIFIED ISSUER.--The term `qualified issuer' means--
"(A) a governmental body, or
"(B) in the case of a State or political subdivision thereof (as defined for purposes of section 103), any entity qualified to issue tax-exempt bonds under section 103 on behalf of such State or political subdivision.
"(7) QUALIFIED PROJECT.--
"(A) IN GENERAL.--The term `qualified project' means any facility owned by a qualified borrower which is a--
"(i) qualified desalination facility,
"(ii) qualified recycled water facility,
"(iii) qualified groundwater remediation facility, or
"(iv) facility that is functionally related or subordinate to a facility described in clause (i), (ii), or (iii).
"(B) ENVIRONMENTAL IMPACT.--A project shall not be treated as a qualified project under subparagraph (A) unless such project is designed to comply with regulations issued under subsection (f) relating to the minimization of the environmental impact of the project.
"(8) QUALIFIED RECYCLED WATER FACILITY.--
"(A) IN GENERAL.--The term `qualified recycled water facility' means any wastewater treatment or distribution facility which--
"(i) exceeds the requirements for the treatment and disposal of wastewater under the Clean Water Act and any other Federal or State water pollution control standards for the discharge and disposal of wastewater to surface water, land, or groundwater (as such requirements and standards are in effect on the date of issuance of the issue), and
"(ii) except as provided in subparagraph (B), is used to reclaim wastewater produced by the general public (including electric utility, industrial, agricultural, commercial, or residential users) to the extent such reclaimed wastewater is used for a beneficial use that the issuer reasonably expects as of the date of issuance of the issue otherwise would have been satisfied with potable water supplies.
"(B) IMPERMISSIBLE USES.--Reclaimed wastewater is not used for a use described in subparagraph (A)(ii) to the extent such reclaimed wastewater is--
"(i) discharged into a waterway or used to meet waterway discharge permit requirements and not used to supplement potable water supplies,
"(ii) used to restore habitat,
"(iii) used to provide once-through cooling for an electric generation facility, or
"(iv) intentionally introduced into the groundwater and not used to supplement potable water supplies.
"(f) Regulations.--The Secretary shall prescribe such regulations as are necessary to carry out the purposes of this section, including regulations promulgated in consultation with the Administrator of the Environmental Protection Agency to ensure the environmental impact of qualified facilities is minimized.".
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of subparagraph (D), by inserting "or" at the end of subparagraph (E), and by inserting after subparagraph (E) the following new subparagraph:
"(F) a clean renewable water supply bond,".
(2) Subparagraph (C) of section 54A(d)(2) of such Code is amended by striking "and" at the end of clause (iv), by striking the period at the end of clause (v) and inserting ", and", and by adding at the end the following new clause:
"(vi) in the case of a clean renewable water supply bond, a purpose specified in section 54G(a)(1).".
(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:
"Sec..54G..Clean renewable water supply bonds.".
(c) Effective Date.--The amendments made by this section shall apply to obligations issued after December 31, 2008.
(As printed in the Congressional Record for the Senate on Mar 3, 2010.)