Title: P3 Act
Policy area: Taxation

Summary:
Preventing Pollution through Partnerships Act or the P3 Act
This bill allows state and local governments to issue green infrastructure bonds as tax-exempt private activity bonds. The bonds are not subject to the state volume caps that apply to certain tax-exempt private activity bonds.
A green infrastructure bond must be issued as part of an issuance that requires 95% or more of the net proceeds to be used to develop, carry out, or certify approved green infrastructure projects. The approved projects are to construct, rehabilitate, maintain, or repair green infrastructure that has been certified by the state in which the project is located as effectively addressing nonpoint source pollution.
"Green infrastructure" is infrastructure that preserves, enhances, or mimics natural infiltration, evapotranspiration, or capture of storm water.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2718 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2718

      To amend the Internal Revenue Code of 1986 to include green 
 infrastructure bonds in the definition of qualified private activity 
                                 bonds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2019

 Mr. Kilmer (for himself and Mr. Heck) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
      To amend the Internal Revenue Code of 1986 to include green 
 infrastructure bonds in the definition of qualified private activity 
                                 bonds.

    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 ``Preventing Pollution through 
Partnerships Act'' or as the ``P3 Act''.

SEC. 2. GREEN INFRASTRUCTURE BONDS AS QUALIFIED PRIVATE ACTIVITY BONDS.

    (a) In General.--Subpart A of part IV of subchapter B of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 148. QUALIFIED GREEN INFRASTRUCTURE BOND.

    ``For purposes of this part--
            ``(1) Qualified green infrastructure bond defined.--The 
        term `green infrastructure bond' means any bond issued as part 
        of an issue 95 percent or more of the net proceeds of which are 
        to be used to develop, carry out, or certify approved green 
        infrastructure projects.
            ``(2) Approved green infrastructure project.--The term 
        `approved green infrastructure project' means a project to 
        construct, rehabilitate, maintain, or repair green 
        infrastructure that has been certified by the State in which 
        such project is located as effectively addressing nonpoint 
        source pollution (as such term is used in the Federal Water 
        Pollution Control Act).
            ``(3) Green infrastructure defined.--The term `green 
        infrastructure' means infrastructure that preserves, enhances, 
        or mimics natural infiltration, evapotranspiration, or capture 
        of storm water.''.
    (b) No Volume Cap.--Section 146(g) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of paragraph (3), by 
striking the period at the end of paragraph (4) and inserting ``, 
and'', and by inserting after paragraph (4) the following new 
paragraph:
            ``(5) any green infrastructure bond.''.
    (c) Conforming Amendments.--
            (1) Section 141(e)(1) of the Internal Revenue Code of 1986 
        is amended by striking ``or'' at the end of subparagraph (F), 
        by striking the period at the end of subparagraph (G), and by 
        adding at the end the following new subparagraph:
                    ``(H) a qualified green infrastructure bond.''.
            (2) The table of sections for subpart A of part IV of 
        subchapter B of chapter 1 of the Internal Revenue Code of 1986 
        is amended by adding at the end the following new item:

``Sec. 148. Qualified green infrastructure bond.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.
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