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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1917 Introduced in Senate (IS)]

108th CONGRESS
  1st Session
                                S. 1917

 To amend the Internal Revenue Code of 1986 to permit the issuance of 
     tax-exempt bonds for certain air and water pollution control 
  facilities, and to provide that the volume cap for private activity 
  bonds shall not apply to bonds for facilities for the furnishing of 
     water, sewage facilities, and air or water pollution control 
                              facilities.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 21, 2003

Mrs. Hutchison introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to permit the issuance of 
     tax-exempt bonds for certain air and water pollution control 
  facilities, and to provide that the volume cap for private activity 
  bonds shall not apply to bonds for facilities for the furnishing of 
     water, sewage facilities, and air or water pollution control 
                              facilities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Air and Water Investment and 
Infrastructure Act''.

SEC. 2. TAX-EXEMPT BONDS FOR AIR AND WATER POLLUTION CONTROL 
              FACILITIES.

    (a) In General.--Subsection (a) of section 142 of the Internal 
Revenue Code of 1986 (defining exempt facility bond) is amended by 
striking ``or'' at the end of paragraph (12), by striking the period at 
the end of paragraph (13) and inserting ``, or'', and by adding at the 
end the following new paragraph:
            ``(14) air or water pollution control facilities.''.
    (b) Air or Water Pollution Control Facilities.--Section 142 of the 
Internal Revenue Code of 1986 (relating to exempt facility bond) is 
amended by adding at the end the following new subsection:
    ``(l) Pollution Control Facilities Acquired by Regional Pollution 
Control Authorities.--
            ``(1) In general.--For purposes of paragraph (14) of 
        subsection (a), a bond shall be treated as described in such 
        paragraph if it is part of an issue substantially all of the 
        proceeds of which are used by a qualified regional pollution 
        control authority to acquire existing air or water pollution 
        control facilities which the authority itself will operate in 
        order to maintain or improve the control of pollutants.
            ``(2) Restrictions.--Paragraph (1) shall apply only if--
                    ``(A) the amount paid, directly or indirectly, for 
                a facility does not exceed the fair market value of the 
                facility,
                    ``(B) the fees or charges imposed, directly or 
                indirectly, on the seller for any use of the facility 
                after the sale of such facility are not less than the 
                amounts that would be charged if the facility were 
                financed with obligations the interest on which is not 
                exempt from tax, and
                    ``(C) no person other than the qualified regional 
                pollution control authority is considered after the 
                sale as the owner of the facility for the purposes of 
                Federal income taxes.
            ``(3) Qualified regional pollution control authority.--For 
        purposes of this subsection, the term `qualified regional 
        pollution control authority' means an authority which--
                    ``(A) is a political subdivision created by State 
                law to control air or water pollution,
                    ``(B) has within its jurisdictional boundaries all 
                or part of at least 2 counties (or equivalent political 
                subdivisions), and
                    ``(C) operates air or water pollution control 
                facilities.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 3. EXEMPTION FROM VOLUME CAP FOR FACILITIES FURNISHING WATER, 
              SEWAGE FACILITIES, AND AIR OR WATER POLLUTION CONTROL 
              FACILITIES.

    (a) In General.--Paragraph (3) of section 146(g) of the Internal 
Revenue Code of 1986 (relating to exception for certain bonds) is 
amended--
            (1) by inserting ``(4), (5),'' after ``(2),'',
            (2) by striking ``or (13)'' and inserting ``(13), or 
        (14)'',
            (3) by inserting ``facilities for the furnishing of water, 
        sewage facilities,'' after ``wharves,'',
            (4) by striking ``and'' before ``qualified'', and
            (5) by inserting ``, and air or water pollution control 
        facilities'' after ``educational facilities''.
    (b) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
                                 <all>
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