To amend the Safe Drinking Water Act with respect to the consolidation of public water systems, and for other purposes.

“(3) Authority for mandatory assessment and mandatory consolidation

“(A) Mandatory assessment—A State with primary enforcement responsibility or the Administrator (if the State does not have primary enforcement responsibility) may require the owner or operator of a public water system to assess options for consolidation, or transfer of ownership of the system, as described in paragraph (1), if—

“(i) the public water system has repeatedly failed to comply with one or more national primary drinking water regulations;

“(ii) such consolidation or transfer is feasible; and

“(iii) such consolidation or transfer could result in greater compliance with national primary drinking water regulations.

“(B) Mandatory consolidation—A State with primary enforcement responsibility or the Administrator (if the State does not have primary enforcement responsibility) may require the owner or operator of a public water system to submit a plan for consolidation, or transfer of ownership of the system, as described in paragraph (1), and complete the actions required under such plan if—

“(i) the owner or operator of the public water system completed the assessment required under paragraph (A), but did not complete consolidation or transfer of ownership;

“(ii) since completing such assessment, the public water system has failed to comply with one or more national primary drinking water regulations; and

“(iii) such consolidation or transfer is feasible.

“(C) Regulations—Not later than 2 years after the date of enactment of this paragraph, the Administrator shall promulgate regulations to implement this paragraph.

“(4) Financial assistance—Notwithstanding section 1452(a)(3), public water systems undertaking consolidation or transfer of ownership pursuant to this section may receive assistance under section 1452 to carry out such consolidation or transfer.

“(5) Protection of non-responsible system

“(A) Identification of liabilities—An owner or operator of a public water system submitting a plan pursuant to this section shall identify as part of such plan—

“(i) any potential liability for damages arising from each specific violation identified in the plan of which the owner or operator is aware or should be aware; and

“(ii) any funds or other assets available to satisfy such liability that are available, as of the date of submission of such plan, to the public water system that committed such violation.

“(B) Reservation of funds—A public water system that has completed consolidation with another public water system pursuant to a plan approved or required pursuant to this section shall not be liable in a civil action for any damages arising from a specific violation identified in such plan, except to the extent to which funds or other assets are identified pursuant to subparagraph (A)(ii) as available to satisfy such liability.”