Distributed Infrastructure Toolkit

DI Toolkit

Module 5

Legal and Policy Distributed Infrastructure Databases

State Public Finance Laws Database

Most states have enacted laws regulating how public entities may or may not use bond dollars or other public debt in connection with private property.

For the most part, these rules were enacted to ensure against corruption, fraud, and misuse of public funds. However, they can also be interpreted as limiting the ability of cities, towns, and utilities to access bond dollars for projects on private property — even when those projects advance important public interests.

Many of these state laws are sufficiently flexible to allow public investment in localized infrastructure that benefits local water systems. To meet their state public finance statutory requirements, generally local governments must demonstrate that localized infrastructure improves and/or benefits the utility system.

For example, Philadelphia’s relevant bond statute provides that the City may issue revenue bonds to finance “projects” that are part of the “water system.” For purposes of the bond statute, projects that are part of the water system are those the City can acquire an interest in, e.g., via an easement or contract. Philadelphia acquires a long-term O&M contract with private property owners that receive a grant from the Water Department to install GSI on their property. This contract gives the City an interest in the GSI project. Thus, Philadelphia’s bonding authority allows the City to issue revenue bonds to pay for distributed GSI on private property because these GSI projects can meet the bond statute’s definition of projects that are part of the water system.  

Use the database below to explore:

  • State by state public finance statutes
  • Summaries of how these state laws can be construed to permit borrowing to finance, and thus upscale, distributed infrastructure on private properties 

Search the database:

Search Finance Database

DISCLAIMER

These materials are not offered as or intended to be legal advice. Readers should seek the advice of an attorney when confronted with legal issues. Attorneys should perform an independent evaluation of the issues raised in these materials. By providing these materials WaterNow does not endorse, either expressly or by implication, their accuracy or legality and expressly disclaims any and all liabilities and warranties related to use of these materials.

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