An Act to amend 281.61 (2r) (e) of the statutes; Relating to: the use of federal capitalization grant funds for lead service line replacement. (FE)
Summary
SB56 amends Wisconsin’s safe drinking water financing law to narrow how federal capitalization grant funds may be used. Under the bill, money received through federal capitalization grants under the Safe Drinking Water Act may not be used to provide principal forgiveness to private owners of community water systems, except when that forgiveness is tied to loans for replacing lead service lines. In practical terms, the bill preserves a targeted exception for lead service line replacement while restricting broader debt-forgiveness subsidies for private water system owners.
The bill is focused on the state’s administration of federal drinking water revolving loan funds and does not create a new program so much as it changes the permitted uses of existing federal grant dollars. It affects the Department of Natural Resources or other state entities that administer these funds, as well as private owners of community water systems seeking financing assistance. The change is intended to align state use of federal funds with a more limited policy choice favoring lead pipe replacement over general principal forgiveness.
Impact
SB56 amends s. 281.61 (2r) (e) of the Wisconsin statutes governing use of federal capitalization grants under 42 USC 300j-12 for the Safe Drinking Water State Revolving Fund. The practical legal effect is to prohibit principal forgiveness from these federal grant funds for private owners of community water systems, except for forgiveness associated with loans to replace lead service lines. This limits the types of financial assistance that can be offered through the state’s drinking water financing program and channels aid specifically toward lead service line replacement projects.
Sentiment
The bill appears to have received enough support to pass the Senate, but the recorded votes show a closely divided chamber and some procedural resistance. The final passage vote was 17-16, and a related substitute amendment was rejected 18-15, indicating that the measure was politically contested rather than broadly bipartisan. Overall, the sentiment suggests support for lead service line replacement funding, paired with disagreement over whether broader principal forgiveness should remain available.
Contention
The main point of contention is the restriction on principal forgiveness for private owners of community water systems. Supporters likely viewed the bill as a way to focus limited federal funds on lead service line replacement, while opponents appear to have objected to narrowing financial assistance options more generally. The rejected substitute amendment and the narrow final vote suggest disagreement over the scope of state flexibility in using federal drinking water funds and over whether private water system owners should continue to receive broader forgiveness benefits.
Crossfiled
An Act to amend 281.61 (2r) (e) of the statutes; Relating to: the use of federal capitalization grant funds for lead service line replacement. (FE)
Allows municipalities to enact ordinances that would permit municipalities and water suppliers to enter properties to perform lead service line replacements and permit tenants to request and schedule private side lead service line replacements.