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Title I — Investing in water infrastructure

S. 2821 · 114th Congress · Apr 20, 2016 · Lineage

I Investing in water infrastructure

A Reducing lead in drinking water

Sec. 1101 Reducing lead in drinking water

(a)
Definitions— In this section:
(1)
Eligible entity— The term eligible entity means—
(A)
a community water system (as defined in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f));
(B)
a system located in an area governed by an Indian Tribe (as defined in that section);
(C)
a nontransient noncommunity water system;
(D)
a qualified nonprofit organization, as determined by the Administrator; and
(E)
a municipality or State, interstate, or intermunicipal agency.
(2)
Lead reduction project—
(A)
In general— The term lead reduction project means a project or activity the primary purpose of which is to reduce the level of lead in water for human consumption by—
(i)
replacement of publicly owned portions of lead service lines;
(ii)
testing, planning, or other relevant activities, as determined by the Administrator, to identify and address conditions (including corrosion control) that contribute to increased lead levels in water for human consumption;
(iii)
assistance to low-income homeowners to replace privately owned portions of service lines, pipes, fittings, or fixtures that contain lead; and
(iv)
education of consumers regarding measures to reduce exposure to lead from drinking water or other sources.
(B)
Limitation— The term lead reduction project does not include a partial lead service line replacement if, at the conclusion of that service line replacement, drinking water is delivered to a household through a publicly or privately owned portion of a lead service line.
(3)
Low-income— The term low-income, with respect to an individual provided assistance under this section, has such meaning as may be given the term by the head of the municipality or State, interstate, or intermunicipal agency with jurisdiction over the area to which assistance is provided.
(4)
Municipality— The term municipality means—
(A)
a city, town, borough, county, parish, district, association, or other public entity established by, or pursuant to, applicable State law; and
(B)
an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).
(b)
Grant program—
(1)
Establishment— Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a grant program to provide assistance to eligible entities for lead reduction projects in the United States.
(2)
Evaluation— In providing assistance under this section, the Administrator shall evaluate—
(A)
that an eligible entity applying for assistance has identified the source of lead in water for human consumption; and
(B)
the means by which the proposed lead reduction project would reduce lead levels in the applicable water system.
(3)
Priority application— In providing grants under this subsection, the Administrator shall give priority to an eligible entity that—
(A)
carries out a lead reduction project at a public water system or nontransient noncommunity water system that has exceeded the lead action level established by the Administrator at any time during the 3-year period preceding the date of submission of the application of the eligible entity;
(B)
addresses lead levels in water for human consumption at a school, daycare, or other facility that primarily serves children or another vulnerable human subpopulation; or
(C)
addresses such priority criteria as the Administrator may establish, consistent with the goal of reducing lead levels of concern.
(4)
Cost sharing—
(A)
In general— Subject to subparagraph (B), the non-Federal share of the total cost of a project funded by a grant under this subsection shall be not less than 20 percent.
(B)
Waiver— The Administrator may reduce or eliminate the non-Federal share under subparagraph (A) for reasons of affordability, as the Administrator determines to be appropriate.
(5)
Low-income assistance—
(A)
In general— Subject to subparagraph (B), an eligible entity may use a grant provided under this subsection to provide assistance to low-income homeowners to carry out lead reduction projects.
(B)
Limitation— The amount of a grant provided to a low-income homeowner under this paragraph shall not exceed the cost of replacement of the privately owned portion of the service line.
(6)
Special consideration for lead service line replacement— In carrying out lead service line replacement using a grant under this subsection, an eligible entity shall—
(A)
notify customers of the planned replacement of any publicly owned portion of the lead service line;
(B)
offer—
(i)
in the case of a homeowner that is not low-income, to replace the privately owned portion of the lead service line at the cost of replacement; and
(ii)
in the case of a low-income homeowner, to replace the privately owned portion of the lead service line and any pipes, fittings, and fixtures that contain lead at a cost that is equal to the difference between—
(I)
the cost of replacement; and
(II)
the amount of low-income assistance available to the homeowner under paragraph (5);
(C)
notify each customer that a planned replacement of any publicly owned portion of a lead service line that is funded by a grant made under this subsection will not be carried out unless the customer consents to the simultaneous replacement of the privately owned portion of the lead service line; and
(D)
demonstrate that the eligible entity has considered multiple options for reducing lead in drinking water, including an evaluation of options for corrosion control.
(c)
Authorization of appropriations— There is authorized to be appropriated to carry out this subtitle $60,000,000 for each of fiscal years 2017 through 2021.

B Funding water

Sec. 1201 Drinking Water State Revolving Fund

Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12) is amended by striking subsection (m) and inserting the following:

“(m) Authorization of appropriations—There are authorized to be appropriated to carry out this section—

“(1) $3,130,000,000 for fiscal year 2017;

“(2) $3,600,000,000 for fiscal year 2018;

“(3) $4,140,000,000 for fiscal year 2019;

“(4) $4,800,000,000 for fiscal year 2020; and

“(5) $5,500,000,000 for fiscal year 2021.”

Sec. 1202 Clean Water State Revolving Fund

Title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.) is amended by striking section 607 and inserting the following:

“607. Authorization of appropriations

“There are authorized to be appropriated to carry out this title—

“(1) $5,180,000,000 for fiscal year 2017;

“(2) $5,960,000,000 for fiscal year 2018;

“(3) $6,850,000,000 for fiscal year 2019;

“(4) $7,880,000,000 for fiscal year 2020; and

“(5) $9,060,000,000 for fiscal year 2021.”

C WIFIA pilot program

Sec. 1301 Permanent authorization for WIFIA pilot program

(a)
In general— Section 5033 of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3912) is amended—
(1)
in subsection (a)—
(A)
by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and indenting appropriately;
(B)
in the matter preceding subparagraph (A) (as so redesignated), by striking “There is authorized to be appropriated to each of the Secretary and the Administrator” and inserting the following:

“(1) Authorization of appropriations—There is authorized to be appropriated to the Secretary”

(C)
by adding at the end the following:

“(2) Mandatory funding

“(A) In general—Notwithstanding any other provision of law, on October 1, 2016, and on each October 1 thereafter through October 1, 2029, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Administrator to carry out this subtitle $1,359,950,000, to remain available until expended.

“(B) Receipt and acceptance—The Administrator shall be entitled to receive, shall accept, and shall use to carry out this subtitle the funds transferred under subparagraph (A), without further appropriation.”

(2)
in subsection (b), by striking “for each of fiscal years 2015 through 2019” and inserting “for each fiscal year in which funds are made available to carry out this subtitle”.
(b)
Conforming amendments—
(1)
Subtitle C of title V of the Water Resources Reform and Development Act of 2014 (33 U.S.C. 3901 et seq.) is amended by striking the subtitle designation and heading and inserting the following:

“C Innovative financing projects”

(2)
Section 5023 of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3092) is amended by striking “pilot” each place it appears.
(3)
Section 5034 of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3913) is amended by striking the section designation and heading and inserting the following:

“5034. Reports on program implementation”

(4)
The table of contents for the Water Resources Reform and Development Act of 2014 (Public Law 113–121) is amended—
(A)
by striking the item relating to subtitle C of title V and inserting the following:
(B)
by striking the item relating to section 5034 and inserting the following:

D Iron and steel in public water systems

Sec. 1401 Taxpayer-produced iron and steel in public water systems

Section 1452(a) of the Safe Drinking Water Act (42 U.S.C. 300j–12(a)) is amended by adding at the end the following:

“(4) Requirement for the use of American materials

“(A) Definition of iron and steel products—In this paragraph, the term iron and steel products means the following products made, in part, of iron or steel:

“(i) Lined or unlined pipe and fittings.

“(ii) Manhole covers and other municipal castings.

“(iii) Hydrants.

“(iv) Tanks.

“(v) Flanges.

“(vi) Pipe clamps and restraints.

“(vii) Valves.

“(viii) Structural steel.

“(ix) Reinforced precast concrete.

“(x) Construction materials.

“(B) Requirement—Notwithstanding any other provision of law, except as provided in subparagraph (C), none of the funds made available by a State loan fund authorized under this section may be used for a project for the construction, alteration, maintenance, or repair of a public water system unless all the iron and steel products used in the project are produced in the United States.

“(C) Waivers—Subparagraph (B) shall not apply in any case or category of cases in which the Administrator finds that—

“(i) applying subparagraph (B) would be inconsistent with the public interest;

“(ii) iron and steel products are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

“(iii) inclusion of iron and steel products produced in the United States will increase the cost of the overall product by more than 25 percent.

“(D) Public notice for waiver—If the Administrator receives a request for a waiver under this paragraph, the Administrator shall—

“(i) make available to the public on an informal basis, including on the website of the Administrator—

“(I) a copy of the request; and

“(II) any information available to the Administrator regarding the request; and

“(ii) provide notice of, and opportunity for informal public comment on, the request for a period of not less than 15 days before making a finding based on a request under subparagraph (C).

“(E) Application—This paragraph shall be applied in a manner consistent with United States obligations under international agreements.

“(F) Management and oversight—The Administrator may use not more than 0.25 percent of any funds made available to carry out this title for management and oversight of the requirements of this paragraph.”

E Sustainable water infrastructure investment

Sec. 1501 Findings and purpose

(a)
Findings— Congress finds the following:
(1)
Our Nation’s water and wastewater systems are among the best in the world, providing safe drinking water and sanitation to our citizens.
(2)
In addition to protecting the health of our citizens, community water systems are essential to our local economies, enabling industries to achieve growth and productivity that make America strong and prosperous.
(3)
Regulated under title XIV of the Public Health Service Act (42 U.S.C. 300f et seq.; commonly known as the “Safe Drinking Water Act”) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), community drinking water systems and wastewater collection and treatment facilities are critical elements in the Nation’s infrastructure.
(4)
Water and wastewater infrastructure is comprised of a mixture of old and new technology. In many local communities across the Nation, the old infrastructure has deteriorated to critical conditions and is very costly to replace. Recent government studies have estimated costs of $500,000,000,000 to $800,000,000,000 over the next 20 years for maintaining and improving the existing inventory, building new infrastructure, and meeting new water quality standards.
(5)
The historical approach of funding infrastructure is insufficient to meet the investment needs of the future.
(6)
The Federal partnership with State and local communities has played a pivotal role in improving the Nation’s water quality and drinking water supplies. Federal assistance under this partnership has been the linchpin of these improvements.
(7)
In light of constrained Federal budgets, the availability of exempt-facility financing represents an important financing tool to help close the gap between funds currently being invested and water infrastructure needs, preserving the Federal partnership.
(8)
Providing alternative financing solutions, such as tax-exempt securities, encourages investment in water and wastewater infrastructure that in turn creates local jobs and protects the health of our citizens.
(9)
Federally mandated State volume cap restrictions in conjunction with other priorities have limited the use of tax-exempt securities on water and wastewater infrastructure investment.
(10)
Removal of State volume caps for water and wastewater infrastructure will accelerate and increase overall investment in the Nation’s critical water infrastructure; facilitate increased use of innovative infrastructure delivery methods supporting sustainable water systems through public-private partnerships that optimize design, financing, construction, and long-term management, maintenance and viability; and provide for more effective risk management of complex water infrastructure projects by municipal utility and private sector partners.
(b)
Purpose— The purpose of this subtitle is to provide alternative financing for long-term infrastructure capital investment programs, and to restore the Nation’s safe drinking water and wastewater infrastructure capability and protect the health of our citizens.

Sec. 1502 Exempt-facility bonds for sewage and water supply facilities

(a)
Bonds for water and sewage facilities exempt from volume cap on private activity bonds— Paragraph (3) of section 146(g) of the Internal Revenue Code of 1986 is amended by inserting “(4), (5),” after “(2),”.
(b)
Conforming change— Paragraphs (2) and (3)(B) of section 146(k) of the Internal Revenue Code of 1986 are both amended by striking “(4), (5), (6),” and inserting “(6)”.
(c)
Effective date— The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.