II 119THCONGRESS 1 STSESSION S. 570 To amend the Water Infrastructure Finance and Innovation Act of 2014 to establish payment and performance security requirements for projects, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY13, 2025 Mr. K ELLY(for himself and Mr. CRAMER) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To amend the Water Infrastructure Finance and Innovation Act of 2014 to establish payment and performance secu- rity requirements for projects, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Water Infrastructure 4 Subcontractor and Taxpayer Protection Act of 2025’’. 5 VerDate Sep 11 2014 23:49 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S570.IS S570 ssavage on LAPJG3WLY3PROD with BILLS 2 •S 570 IS SEC. 2. FEDERAL REQUIREMENTS FOR WIFIA ELIGIBILITY 1 AND PROJECT SELECTION. 2 Section 5028(a)(1)(C) of the Water Infrastructure 3 Finance and Innovation Act of 2014 (33 U.S.C. 4 3907(a)(1)(C)) is amended— 5 (1) by striking ‘‘The Secretary’’ and inserting 6 the following: 7 ‘‘(i) F INANCING SECURITY FEA -8 TURES.—The Secretary’’; and 9 (2) by adding at the end the following: 10 ‘‘(ii) C ONSTRUCTION PAYMENT AND 11 PERFORMANCE SECURITY .— 12 ‘‘(I) I N GENERAL.—The Sec-13 retary or the Administrator, as appli-14 cable, shall ensure that the construc-15 tion of a project carried out with as-16 sistance under this subtitle has pay-17 ment and performance security in ac-18 cordance with this clause. 19 ‘‘(II) U SE OF STATE OR LOCAL 20 REQUIREMENTS.—The Secretary or 21 the Administrator, as applicable, shall 22 consider subclause (I) to be satisfied 23 with respect to the construction of a 24 project if— 25 VerDate Sep 11 2014 23:49 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S570.IS S570 ssavage on LAPJG3WLY3PROD with BILLS 3 •S 570 IS ‘‘(aa) applicable State or 1 local law requires payment and 2 performance security with respect 3 to the construction; and 4 ‘‘(bb) the amount of that 5 payment and performance secu-6 rity is not less than 50 percent of 7 the total construction contract 8 amount. 9 ‘‘(III) U SE OF BONDS.—With re-10 spect to the construction of a project 11 to which no State or local payment 12 and performance security require-13 ments apply or for which the amount 14 of payment and performance security 15 under applicable State or local pay-16 ment and performance requirements 17 does not meet the requirement de-18 scribed in subclause (II)(bb), the Sec-19 retary or the Administrator, as appli-20 cable, shall require, for purposes of 21 satisfying subclause (I), that the re-22 quirements described in paragraphs 23 VerDate Sep 11 2014 23:49 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S570.IS S570 ssavage on LAPJG3WLY3PROD with BILLS 4 •S 570 IS (1) and (2) of section 3131(b) of title 1 40, United States Code, be met.’’. 2 Æ VerDate Sep 11 2014 23:49 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S570.IS S570 ssavage on LAPJG3WLY3PROD with BILLS