(a)
In general— The Administrator shall establish a program to award grants to eligible entities that have established water efficiency incentive programs to carry out those water efficiency incentive programs (referred to in this section as the “grant program”).
(b)
Distribution— In carrying out the grant program, the Administrator shall award not less than 50 percent of the amounts made available to carry out this section in each fiscal year to eligible entities that service an area that—
(1)
has been designated as D2 (severe drought) or greater according to the United States Drought Monitor for a minimum of 4 weeks during any of the 3 years preceding the date of the grant award; or
(2)
is within a county for which a drought emergency has been declared by the applicable Governor at any time during the 3-year period preceding the date of the grant award.
(c)
Grant amount—
(1)
In general— Subject to paragraph (2), a grant awarded under the grant program shall be in an amount that is not less than $250,000.
(2)
Small public water systems— The Administrator may award a grant in an amount that is less than $250,000 if the grant is awarded to, or for the benefit of, a public water system that serves fewer than 10,000 customers.
(d)
Use of funds— An eligible entity receiving a grant under the grant program shall—
(1)
use grant funds to carry out a water efficiency incentive program for customers of a public water system; or
(2)
provide grant funds to another eligible entity to carry out a water efficiency incentive program described in paragraph (1).
(e)
Minimum requirement— An eligible entity receiving a grant under the grant program shall use not less than 40 percent of the amount of the grant to provide water-efficient upgrades to low-income households.
(f)
Cost share—
(1)
In general— Subject to paragraph (2), the Federal share of the cost of carrying out a water efficiency incentive program using a grant awarded under the grant program shall not exceed 80 percent.
(2)
Waiver— The Administrator may increase the Federal share under paragraph (1) to 100 percent if the Administrator determines that an eligible entity is unable to pay, or would experience significant financial hardship if required to pay, the non-Federal share.
(g)
Supplement, not supplant— Amounts provided under a grant under the grant program shall be used to supplement, and not supplant, other Federal, State, local, or Tribal funds made available to carry out water efficiency incentive programs.
(h)
Authorization of appropriations—
(1)
In general— There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2023 through 2028.
(2)
Administrative costs— Of the amounts made available under paragraph (1) for grants under the grant program each fiscal year, the Administrator may use not more than 4 percent to pay the administrative costs of the Administrator.