Bonds and Financing

APPA members urged to reach out to Senate offices on advance refunding bonds bill

The American Public Power Association is asking its member utilities to reach out to Senate offices to encourage them to cosponsor and support S. 4129, the Lifting Our Communities through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act, which would reinstate the ability to issue tax-exempt advance refunding bonds.

The bill was introduced on July 1 by lead co-sponsors Senators Roger Wicker, R-Miss., and Debbie Stabenow, D-Mich.

Additional original cosponsors include Senators John Barrasso, R-Wyoming, Shelly Moore Capito, R-W.Va., Michael Bennet, D-Colo., Tom Carper, D-Delaware, Bob Menendez, D-N.J., and Jerry Moran, R-Kansas.

S. 4129 is identical in effect – though different in construction – to H.R. 2772, the Investing in Our Communities Act, and section 90102 of H.R. 2, the Moving Forward Act, passed by the House on July 1.

APPA supports reinstating advance refunding bonds as proposed in these bills.

Advance refunding legislation is most likely to be considered as part of infrastructure legislation, but there is an effort to see it included in a COVID-19 response bill, which is why APPA is asking its members to take quick action in terms of reaching out to Senate offices.