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WI SB56

The use of federal capitalization grant funds for lead service line replacement. (FE)


summary

Introduced
02/21/2025
In Committee
06/20/2025
Crossed Over
05/15/2025
Passed
07/02/2025
Dead
Signed/Enacted/Adopted
07/02/2025

Introduced Session

2025-2026 Regular Session

Bill Summary

Under current law, the Department of Administration and the Department of Natural Resources administer the safe drinking water loan program (SDWLP), which provides financial assistance from the environmental improvement program to local governmental units and to the private owners of community water systems that serve local governmental units for projects for the planning, designing, construction, or modification of public water systems. DNR establishes a funding list for SDWLP projects, and DOA allocates funding for those projects. Current law specifies several allowable methods of providing financial assistance under the SDWLP, one of which is using funds received as federal capitalization grants. There is, however, a prohibition on using those funds to provide principal forgiveness to a private owner of a community water system. This bill provides that this prohibition does not apply to the use of federal capitalization grants for forgiveness of loans for the replacement of lead service lines. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill modifies existing regulations regarding the Safe Drinking Water Loan Program (SDWLP), which provides financial assistance to local governments and private community water system owners for improving public water systems. Currently, there is a restriction preventing the use of federal capitalization grants to provide principal forgiveness to private water system owners. The bill specifically creates an exception to this prohibition, allowing federal capitalization grant funds to be used for forgiving loans that fund lead service line replacements. By doing so, the legislation aims to facilitate the removal of lead service lines, which can pose significant health risks, particularly to children, by removing a financial barrier that might previously have prevented private water system owners from replacing these potentially dangerous infrastructure components. The bill maintains the existing administrative framework where the Department of Administration and the Department of Natural Resources continue to manage the SDWLP, with DNR establishing project funding lists and DOA allocating the funds, but introduces this targeted flexibility for lead service line replacement financing.

Committee Categories

Business and Industry

Sponsors (9)

Last Action

Published 7-2-2025 (on 07/02/2025)

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