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WI AB59

WI AB59
The use of federal capitalization grant funds for lead service line replacement. (FE)


summary

Introduced
02/24/2025
In Committee
06/20/2025
Crossed Over
Passed
Dead

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 the safe drinking water loan program (SDWLP) administered by the Department of Administration and the Department of Natural Resources by changing existing restrictions on federal capitalization grant funds. Currently, these funds cannot be used to provide principal forgiveness to private owners of community water systems. The bill creates an exception to this prohibition specifically for loans related to lead service line replacement. A lead service line is the underground pipe that connects a home's water main to the interior plumbing, and in older communities, many of these lines were made of lead, which can pose significant health risks. By allowing principal forgiveness for lead service line replacement, the bill aims to help private water system owners more easily finance the removal and replacement of these potentially dangerous water lines, potentially making water infrastructure upgrades more accessible and affordable. The change applies to funds received through federal capitalization grants under the federal safe drinking water state loan fund program.

Committee Categories

Transportation and Infrastructure

Sponsors (9)

Last Action

Laid on the table (on 06/24/2025)

bill text


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