CONGRESSWOMAN JOHNSON APPLAUDS PASSAGE OF LEGISLATION ALLOWING FOR ADDITIONAL INVESTMENTS IN WATER INFRASTRUCTURE

Washington, DC (Friday, May 28, 2010) A new piece of legislation, H.R. 4213, encourages private investment through the use of tax exempt bonds for public purpose water infrastructure projects. Specifically, the bill exempts Private Activity Bonds (PABs) for water and wastewater facilities from federally-mandated state volume caps. PABs are a form of tax-exempt financing that allows a government entity to meet a public need. Other infrastructure projects, such as airports, intercity high-speed rail, and solid waste disposal sites, are already exempt from these bond caps.

“It is critical that we do everything possible to strengthen our nation’s water infrastructure,” said Congresswoman Johnson. “I am proud to encourage this type of private investment – it will enhance our water infrastructure, create local jobs, and encourage private capital investment in our communities.”

Congresswoman Eddie Bernice Johnson voted for the passage of H.R. 4213 that was passed by the House of Representatives and sent to the Senate for consideration.

It is anticipated that removing state volume caps on PABs for water and wastewater facilities will also reduce the cost of water projects, increase the number of water projects that communities initiate, improve our nation’s water infrastructure, and encourage public-private partnership
 
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U.S. Representative Eddie Bernice Johnson is the highest-ranking Texan on the House Committee on Transportation & Infrastructure and a senior member of the Science Committee. She represents the 30th Congressional District of Texas, which, includes Downtown Dallas, Fair Park, Oak Lawn, Turtle Creek, Old East Dallas, Pleasant Grove, & South Oak Cliff; all of Balch Springs, DeSoto, Hutchins, Lancaster & Wilmer and parts of Cedar Hill, Duncanville, Ferris, Glenn Heights and Ovilla.