The National Special Districts Coalition (NSDC), of which CSDA is a founding member, is actively supporting federal legislation that would fund fire station construction and help finance the replacement of lead-contaminated water service lines.
Constructing Fire Stations
NSDC supports bipartisan legislation that would authorize $1 billion for fire and EMS station construction and enhancement.
Congressman Bill Pascrell, D-N.J. sponsors H.R. 3728, the Fire Station Construction Grants Act, which would establish the "Assistance to Firefighters Fire Station Construction Grant" under the Federal Emergency Management Agency (FEMA). Grant funding would cover the building, rebuilding, or renovation of fire and emergency medical services (EMS) facilities and stations. The program would also cover installation of backup power systems, HVAC system upgrades, exhaust emission controls, development of personnel living quarters, and mold remediation projects.
Career, volunteer, and combination fire departments would be eligible as well as non-affiliated EMS, combination, and volunteer emergency agencies. Funding would be divided equally four ways among fire, fire training, and EMS services with completive grants among all service types comprising the remaining 25 percent.
In its support letter, NSDC highlighted the significance of the legislation for fire protection, ambulance, and emergency services districts.
More than 6,000 of the nation's emergency response agencies are special districts providing fire and emergency medical services that other units of government do not provide in their communities. Many fire protection districts – especially in rural areas – depend on limited revenue sources, operate on small budgets, and retain either a combination or all-volunteer force. Many of these districts are unable to fund major capital upgrades to facilities without long delays or offsets to other critical services to their community.
The Fire Station Construction Grants Act was introduced in the U.S. House of Representatives on June 4, 2021, and was referred to the House Committee on Science, Space, and Technology, and to the House Committee on Transportation and Infrastructure. The legislation has not been heard in either committee.
Financing the Replacement of Lead-Contaminated Service Lines
NSDC has also endorsed legislation that would allow public water utilities to leverage tax-exempt bonds for the replacement of lead-contaminated service lines on private property.
In its letter sent to Congressman Daniel Kildee, D-Mich., the Coalition outlined its support for his H.R. 6985, the Finance the Lead Out of Water (FLOW) Act of 2022. The bill would amend the existing tax policy requiring public utilities to sidestep the lengthy, costly Internal Revenue Service's "Private Business Use Test," which is required to approve tax-exempt bond revenues' use for use on private land to ensure bond proceeds are not to mainly benefit private entities.
Lead service line removal can be out for reach for many private households without financial assistance – especially for low- and moderate-income households and within the many disadvantaged communities that special districts serve. NSDC views the proposed exemption as a streamlined approach to relieve public agencies of lengthy, costly regulatory burdens and to foster positive outcomes for customers, ratepayers, and public health. The tool would provide opportunities for special districts providing water services to advance compliance with federal drinking water standards while making a difference in the communities they serve.
H.R. 6985 was introduced on March 8, 2022, and was referred to the House Committee on Ways and Means.
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