What This Bill Does
This bill changes the Water Infrastructure Finance and Innovation Act of 2014 to add new rules about payment and performance security (financial protections that guarantee work gets done and bills get paid) for construction projects. The bill makes sure projects that get federal funding have these protections in place.
Who It Affects
The Secretary (head of a federal agency) or the Administrator (another federal official) who approves water infrastructure projects. Contractors and construction companies building water projects. State and local governments that manage water projects with federal assistance.
Key Provisions
• The Secretary or Administrator must make sure construction projects that receive federal assistance under this program have payment and performance security in place (Sec. 1, subsection ii(I)).
• If a state or local law already requires payment and performance security for a project, the federal government can accept those state or local requirements instead of creating new ones, but the amount of security cannot be less than 50 percent of the total construction contract cost (Sec. 1, subsection ii(II)).
• If no state or local payment and performance security requirements exist, then the payment and performance security rules found in section 3131(b) of title 40 of the United States Code must be used (Sec. 1, subsection ii(III)).
What Changes
The bill adds federal requirements stating that water infrastructure projects receiving assistance must have payment and performance security. Previously, the law did not explicitly require this protection.
Important Definitions
None defined in the bill text.
I
118TH CONGRESS
1ST SESSION H. R. 1740
To amend the Water Infrastructure Finance and Innovation Act of 2014
to establish payment and performance security requirements for projects,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 2023
Mr. BOST (for himself, Mr. PAPPAS, Mr. BALDERSON, and Mr. LYNCH) intro-
duced the following bill; which was referred to the Committee on Trans-
portation and Infrastructure, and in addition to the Committee on En-
ergy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To amend the Water Infrastructure Finance and Innovation
Act of 2014 to establish payment and performance secu-
rity requirements for projects, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. FEDERAL REQUIREMENTS FOR WIFIA ELIGI-
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BILITY AND PROJECT SELECTION.
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Section 5028(a)(1)(C) of the Water Infrastructure
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Finance and Innovation Act of 2014 (33 U.S.C. 3907) is
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amended—
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•HR 1740 IH
(1) by striking ‘‘The Secretary’’ and inserting
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the following:
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‘‘(i)
FINANCING
SECURITY
FEA-
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TURES.—The Secretary’’; and
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(2) by adding at the end the following:
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‘‘(ii) CONSTRUCTION
PAYMENT
AND
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PERFORMANCE SECURITY.—
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‘‘(I) IN
GENERAL.—The Sec-
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retary or the Administrator, as appli-
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cable, shall ensure that the construc-
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tion of a project carried out with as-
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sistance under this subtitle shall have
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payment and performance security.
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‘‘(II) USE OF STATE OR LOCAL
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REQUIREMENTS.—With respect to the
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construction of a project for which
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payment and performance security is
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required to be furnished by applicable
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State or local law, the Secretary or
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the Administrator, as applicable, shall
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accept such payment and performance
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security requirements for purposes of
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subclause (I), except that the amount
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of any payment and performance se-
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curity accepted shall not be less than
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50 percent of the total construction
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contract amount.
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‘‘(III) USE OF OTHER REQUIRE-
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MENTS.—With respect to the con-
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struction of a project for which no
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State or local payment and perform-
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ance security requirements are appli-
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cable, the payment and performance
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security described in paragraphs (1)
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and (2) of section 3131(b) of title 40,
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United States Code, shall be required
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for purposes of subclause (I).’’.
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Æ
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