Water Infrastructure Subcontractor and Taxpayer Protection Act of 2023
Impact
If enacted, SB2928 will enforce new federal requirements concerning construction project security measures. Specifically, the bill stipulates that projects funded under the WIFIA program must secure at least 50% of the total construction contract amount through payment and performance security. It recognizes state and local laws that already require such security, which could streamline compliance for projects that are already subject to stringent local rules. This could lead to more secure investments in water infrastructure and enhance the reliability of project completion.
Summary
SB2928, titled the Water Infrastructure Subcontractor and Taxpayer Protection Act of 2023, seeks to amend the Water Infrastructure Finance and Innovation Act of 2014. The bill's primary objective is to establish stringent payment and performance security requirements for construction projects that receive federal assistance. This provision is anticipated to bolster financial security in federal water infrastructure projects, ensuring that contractors have adequate backing to fulfill their contractual obligations satisfactorily.
Contention
There may be contention surrounding the implementation of SB2928, as some stakeholders could argue that the imposition of federal requirements might conflict with established local regulations. Proponents of the bill argue that it will enhance the assurance of project completion and protect taxpayer investments, while opponents may express concerns about overreach and the potential for increased bureaucracy in project management. Additionally, the effect on smaller contractors who may struggle to meet the increased financial obligations could also spark debate.
Related
To amend the Water Infrastructure Finance and Innovation Act of 2014 to establish payment and performance security requirements for projects, and for other purposes.