A new federal law presents opportunities for local government and public-private partnership ("P3") projects. On October 23, 2018, President Trump signed into law the America's Water Infrastructure Act of 2018 ("
The Act"). The bipartisan bill had nearly unanimous support with a 435-0 vote in the House and a 99-1 vote in the Senate. The Act furthers the President's Legislative Outline for Restoring Infrastructure in America - a plan which seeks to "turn $200 billion in federal money into $1.5 trillion for fixing America's infrastructure by leveraging local and state tax dollars and private investment." The Act also includes several provisions aimed at restoring Florida's waterways - specifically, the authorization of the Everglades Agricultural Area (EAA) Storage Reservoir has received significant attention for its rehabilitative prospects. The EAA Storage Reservoir is expected to be built south of Lake Okeechobee and will serve as a filter for the Everglades by removing harmful discharge before it has an opportunity to adversely affect the neighboring coastal communities.
Key elements of the new legislation include the authorization of federal funding for state and local water infrastructure projects, upgrading irrigation systems, eliminating inefficient infrastructure projects, and revitalizing wastewater maintenance practices. The Act authorizes a substantial amount federal funding - over $6.1 billion for 12 Army Corps projects, 65 feasibility studies for potential projects and $4.4 billion for the U.S. Environmental Protection Agency's ("EPA") Drinking Water State Revolving Fund program which allocates funds to states for the improvement of drinking water infrastructure. We anticipate that these additional funds will be administered through the Department of Environmental Protection's Division of Water Restoration Assistance and the State Revolving Loan Fund.
A notable aspect of The Act is its emphasis on collaboration between public and private entities. The Act's authorization of the EPA's WaterSense program, a voluntary P3 that incentivizes the private production of water efficient household products, is a good example of this integration between government and industry.
The Act also reauthorizes a federal loan program that provides financial assistance for the creation of projects focused on drinking water systems but which can include projects related to wastewater, drinking water, water recycling, desalination, stormwater management, and combined approaches. While most applicants to this program are municipal governments, the EPA recently publicized that private corporations and P3 projects are eligible to apply.
The Act presents new opportunities for P3 projects in Florida. Our Land Development, Zoning & Environmental Team works in concert with our Government Affairs Team on P3 projects across the state. We have extensive experience collaborating with government on behalf of private entities, from drafting and submitting solicited and unsolicited bid proposals, to structuring partnership and joint venture documents, to negotiating the approval of agreements and permits necessary for these partnerships. For more information, please contact us.
For more detail on potential tax implications of Amendment Two, please contact our
Land Development Team.
