ASA Supports the Water Infrastructure Subcontractor & Taxpayer Protection Act

ASA commends Sens. Kelly (D-AZ) and Cramer (R-ND) for introducing bipartisan legislation to improve project delivery and reduce risk of default on federally financed water infrastructure projects. The Water Infrastructure Subcontractor and Taxpayer Protection Act would require any primary contractor working on water infrastructure projects financed by federally guaranteed loans to hold a surety bond, which compensates local sponsors and sub-contractors if the contractor defaults before the project is completed.  Water projects that are funded by the Environmental Protection Agency (EPA) through the state revolving loan funds already have surety bond requirements, and Arizona and North Dakota already require that surety bonds be used for state funded projects. However, public-private partnerships (P3s) financed by the Water Infrastructure Finance and Innovation Act (WIFIA) are currently exempt from these surety bond requirements. This bipartisan legislation would close that loophole, improving project delivery without increasing costs.