Senate Bill 56 aims to amend the existing statutes regarding the use of federal capitalization grant funds for lead service line replacement. Currently, the Department of Administration and the Department of Natural Resources oversee the safe drinking water loan program (SDWLP), which provides financial assistance for public water system projects. The law prohibits the use of federal capitalization grant funds to offer principal forgiveness to private owners of community water systems. This bill modifies that prohibition by allowing such funds to be used specifically for the forgiveness of loans related to the replacement of lead service lines.

The amendment to section 281.61 (2r) (e) clarifies that while federal capitalization grants cannot generally be used for principal forgiveness to private owners, 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