Financing Lead Out of Water Act of 2022
Bill: S.4921 | Sponsor: Sen. Bennet, Michael F. (D-CO)
Policy area: Taxation

Summary:
Financing Lead Out of Water Act of 2022
This bill allows the issuance of tax-exempt private activity bonds to finance the replacement of any privately-owned portion of a lead service line in a public water system. Specifically, the bill provides that the use of proceeds from such bonds for replacement of a lead service line does not constitute private business use.

To amend the Internal Revenue Code of 1986 to modify the private 
   business use requirements for bonds issued for lead service line 
                         replacement projects.

    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 ``Financing Lead Out of Water Act of 
2022''.

SEC. 2. MODIFICATION OF PRIVATE BUSINESS USE REQUIREMENTS FOR CERTAIN 
              BONDS.

    (a) In General.--Section 141(b)(6) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(D) Clarification relating to qualified lead 
                service line replacement use.--
                            ``(i) In general.--For purposes of this 
                        subsection, qualified lead service line 
                        replacement use shall not constitute private 
                        business use.
                            ``(ii) Definitions.--For purposes of this 
                        subparagraph--
                                    ``(I) Qualified lead service line 
                                replacement use.--The term `qualified 
                                lead service line replacement use' 
                                means, with respect to any public water 
                                system, use of the proceeds of an issue 
                                to replace any privately-owned portion 
                                of a lead service line connected to 
                                such system to facilitate, achieve or 
                                maintain compliance with a national 
                                primary drinking water regulation for 
                                lead.
                                    ``(II) Lead service line.--The term 
                                `lead service line' has the meaning 
                                given such term in section 1459B(a)(4) 
                                of the Safe Drinking Water Act.
                                    ``(III) National primary drinking 
                                water regulation for lead.--The term 
                                `national primary drinking water 
                                regulation for lead' means a national 
                                primary drinking water regulation for 
                                lead promulgated under section 1412 of 
                                such Act.
                                    ``(IV) Public water system.--The 
                                term `public water system' has the 
                                meaning given such term in section 
                                1401(4) of such Act.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2022.
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