CLEAN AIR AND WATER INVESTMENT ACT OF 2007

Press Release

Congressman Nick Lampson (D-TX) and Congressman Kevin Brady (R-TX) have introduced the Clean Air and Water Investment Act of 2007, to restore a provision that enables tax-exempt bonding for air and water pollution control facilities. This authority was previously available prior to 1986, and proved so effective that even facilities that were “grandfathered” – and not subject to clean air standards – opted to update their pollution controls voluntarily.

“This is an easy and cost effective way for Congress to increase industries’ investment in air and water pollution control facilities,” said Congressman Lampson. “Both industry and environmental groups should be advocating for this smart, sensible, and simple step of tax reform.”

“It is very important that our Texas communities meet Clean Air Act standards,” said Congressman Brady. “This legislation will help to affordably accelerate the installation of new pollution control equipment.”

According to the Environmental Protection Agency, as of 2005 there were 474 counties in thirty-two states that had not yet met clean air standards for ozone, and additional counties and states had not met carbon monoxide or particulate standards either. Many states have also increased their enforcement of total maximum daily loads for water pollution. Considering the growing number of health effects linked to environmental conditions, and the uncertainty surrounding the global climate, these standards are continuing to rise. This in turn has increased the demand and cost of pollution control facilities needed for clean industrial emissions and water.

Charles Ganze, General Manager of the Gulf Coast Waste Disposal authority said, “this bill will empower us to improve our own operations and assist industries all over Texas to meet higher clean air and water standards, with no added cost to the taxpayer.” Ironically, since 1986, state and local governments have been restricted in their ability to allocate the subsidy provided through tax-exempt financing to projects that may provide the greatest benefit: air and water pollution control facilities. The Clean Air and Water Investment Act gives state and local agencies the power to provide federal tax exempt bonding to industries seeking to improve the quality of air and water before it is released into the environment. Furthermore, the bill does not present any new liability to the Treasury because it is subject to an already existing state volume cap on private activity bonds. As of 2005 this cap held over $18 billion in un-allocated funds.

“By allowing state agencies to access this surplus, my bill represents an economically sound approach to rising pollution concerns that ought to be embraced by Republicans and Democrats alike, “said Mr. Lampson.