To amend the Water Infrastructure Finance and Innovation Act of 2014 to establish payment and performance security requirements for projects, and for other purposes.
Bill: H.R.9665 | Sponsor: Rep. Lynch, Stephen F. (D-MA)
Policy area: Water Resources Development

Summary:
This bill establishes bonding requirements for the recipient of a water infrastructure construction loan under the Water Infrastructure Finance and Innovation Act. A borrower must secure the financed project with payment and performance bonds in minimum amounts set out in the bill.

To amend the Water Infrastructure Finance and Innovation Act of 2014 to 
 establish payment and performance security requirements for projects, 
                        and for other purposes.

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

SECTION 1. FEDERAL REQUIREMENTS FOR WIFIA ELIGIBILITY AND PROJECT 
              SELECTION.

    Section 5028(a)(1)(C) of the Water Infrastructure Finance and 
Innovation Act of 2014 (33 U.S.C. 3907) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                            ``(i) Financing security features.--The 
                        Secretary''; and
            (2) by adding at the end the following:
                            ``(ii) Construction payment and performance 
                        security.--
                                    ``(I) In general.--The Secretary or 
                                the Administrator, as applicable, shall 
                                ensure that the construction of a 
                                project carried out with assistance 
                                under this subtitle shall have payment 
                                and performance security.
                                    ``(II) Use of state or local 
                                requirements.--With respect to the 
                                construction of a project for which 
                                payment and performance security is 
                                required to be furnished by applicable 
                                State or local law, the Secretary or 
                                the Administrator, as applicable, shall 
                                accept such payment and performance 
                                security requirements for purposes of 
                                subclause (I), except that the amount 
                                of any payment and performance security 
                                accepted shall not be less than 50 
                                percent of the total construction 
                                contract amount.
                                    ``(III) Use of other 
                                requirements.--With respect to the 
                                construction of a project for which no 
                                State or local payment and performance 
                                security requirements are applicable, 
                                the payment and performance security 
                                described in paragraphs (1) and (2) of 
                                section 3131(b) of title 40, United 
                                States Code, shall be required for 
                                purposes of subclause (I).''.
                                 <all>