Senate Bill 56 aims to amend the existing statutes regarding the use of federal capitalization grant funds within Wisconsin's safe drinking water loan program (SDWLP). Currently, while the Department of Administration and the Department of Natural Resources oversee the SDWLP, there is a prohibition on using federal capitalization grant funds to provide principal forgiveness to private owners of community water systems. This bill seeks to modify that prohibition by allowing such funds to be used specifically for the forgiveness of loans related to the replacement of lead service lines.

The proposed amendment to section 281.61 (2r) (e) clarifies that while federal capitalization grants cannot generally be used for principal forgiveness, this restriction does not apply when the funds are utilized for lead service line replacement. This change is intended to facilitate the replacement of lead service lines, thereby improving public health and safety in Wisconsin's drinking water systems.

Statutes affected:
Bill Text: 281.61(2r)(e), 281.61
Text as Enrolled: 281.61(2r)(e), 281.61