---
kind: "section"
citation: "42 U.S.C. § 300g–9"
title: "42"
title_heading: "The Public Health and Welfare"
number: "300g–9"
heading: "Capacity development"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/300g-9"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter XII — Safety of Public Water Systems"
  - "Part B — Public Water Systems"
---

# §300g–9. Capacity development

- (a) **State authority for new systems—** A [State](/usc/42/201.md?p=f) shall receive only 80 percent of the allotment that the [State](/usc/42/201.md?p=f) is otherwise entitled to receive under [section 300j–12 of this title](/usc/42/300j–12.md) (relating to [State](/usc/42/201.md?p=f) loan funds) unless the [State](/usc/42/201.md?p=f) has obtained the legal authority or other means to ensure that all new community water systems and new nontransient, noncommunity water systems commencing operation after October 1, 1999, demonstrate technical, managerial, and financial capacity with respect to each national primary drinking water regulation in effect, or likely to be in effect, on the date of commencement of operations.
- (b) **Systems in significant noncompliance—**
  - (1) **List—** Beginning not later than 1 year after August 6, 1996, each [State](/usc/42/201.md?p=f) shall prepare, periodically update, and submit to the [Administrator](/usc/42/4005.md?p=1) a list of community water systems and nontransient, noncommunity water systems that have a history of significant noncompliance with this subchapter (as defined in guidelines issued prior to August 6, 1996, or any revisions of the guidelines that have been made in consultation with the [States](/usc/42/201.md?p=f)) and, to the extent practicable, the reasons for noncompliance.
  - (2) **Report—** Not later than 5 years after August 6, 1996, and as part of the capacity development strategy of the [State](/usc/42/201.md?p=f), each [State](/usc/42/201.md?p=f) shall report to the [Administrator](/usc/42/4005.md?p=1) on the success of enforcement mechanisms and initial capacity development efforts in assisting the public water systems listed under [paragraph (1)](#b-1) to improve technical, managerial, and financial capacity.
  - (3) **Withholding—** The list and report under this subsection shall be considered part of the capacity development strategy of the [State](/usc/42/201.md?p=f) required under [subsection (c)](#c) of this section for purposes of the withholding requirements of [section 300j–12(a)(1)(G)(i) of this title](/usc/42/300j–12.md?p=a-1-G-i) (relating to [State](/usc/42/201.md?p=f) loan funds).
- (c) **Capacity development strategy—**
  - (1) **In general—** Beginning 4 years after August 6, 1996, a [State](/usc/42/201.md?p=f) shall receive only—
    - (A) 90 percent in fiscal year 2001;
    - (B) 85 percent in fiscal year 2002; and
    - (C) 80 percent in each subsequent fiscal year,

    of the allotment that the [State](/usc/42/201.md?p=f) is otherwise entitled to receive under [section 300j–12 of this title](/usc/42/300j–12.md) (relating to [State](/usc/42/201.md?p=f) loan funds), unless the [State](/usc/42/201.md?p=f) is developing and implementing a strategy to assist public water systems in acquiring and maintaining technical, managerial, and financial capacity.

  - (2) **Content—** In preparing the capacity development strategy, the [State](/usc/42/201.md?p=f) shall consider, solicit public comment on, and include as appropriate—
    - (A) the methods or criteria that the [State](/usc/42/201.md?p=f) will use to identify and prioritize the public water systems most in need of improving technical, managerial, and financial capacity;
    - (B) a description of the institutional, regulatory, financial, tax, or legal factors at the Federal, [State](/usc/42/201.md?p=f), or local level that encourage or impair capacity development;
    - (C) a description of how the [State](/usc/42/201.md?p=f) will use the authorities and resources of this subchapter or other means to—
      - (i) assist public water systems in complying with national primary drinking water [regulations](/usc/42/201.md?p=d);
      - (ii) encourage the development of partnerships between public water systems to enhance the technical, managerial, and financial capacity of the systems; and
      - (iii) assist public water systems in the training and certification of operators;
    - (D) a description of how the [State](/usc/42/201.md?p=f) will establish a baseline and measure improvements in capacity with respect to national primary drinking water [regulations](/usc/42/201.md?p=d) and [State](/usc/42/201.md?p=f) drinking water law;
    - (E) an identification of the persons that have an interest in and are involved in the development and implementation of the capacity development strategy (including all appropriate [agencies](/usc/42/8262.md?p=1) of Federal, [State](/usc/42/201.md?p=f), and local governments, private and [nonprofit](/usc/42/300s–3.md?p=3) public water systems, and public water system [customers](/usc/42/7275.md?p=5)); and
    - (F) a description of how the [State](/usc/42/201.md?p=f) will, as appropriate—
      - (i) encourage development by public water systems of asset management plans that include best [practices](/usc/42/17061.md?p=19) for asset management; and
      - (ii) assist, including through the provision of technical assistance, public water systems in training operators or other relevant and appropriate persons in implementing such asset management plans.
  - (3) **Report—** Not later than 2 years after the date on which a [State](/usc/42/201.md?p=f) first adopts a capacity development strategy under this subsection, and every 3 years thereafter, the head of the [State agency](/usc/42/300s–3.md?p=12) that has primary responsibility to carry out this subchapter in the [State](/usc/42/201.md?p=f) shall submit to the Governor a report that shall also be available to the public on the efficacy of the strategy and progress made toward improving the technical, managerial, and financial capacity of public water systems in the [State](/usc/42/201.md?p=f), including efforts of the [State](/usc/42/201.md?p=f) to encourage development by public water systems of asset management plans and to assist public water systems in training relevant and appropriate persons in implementing such asset management plans.
  - (4) **Review—** The decisions of the [State](/usc/42/201.md?p=f) under this section regarding any particular public water system are not subject to review by the [Administrator](/usc/42/4005.md?p=1) and may not serve as the basis for withholding funds under [section 300j–12 of this title](/usc/42/300j–12.md).
- (d) **Federal assistance—**
  - (1) **In general—** The [Administrator](/usc/42/4005.md?p=1) shall support the [States](/usc/42/201.md?p=f) in developing capacity development strategies.
  - (2) **Informational assistance—**
    - (A) **In general—** Not later than 180 days after August 6, 1996, the [Administrator](/usc/42/4005.md?p=1) shall—
      - (i) conduct a review of [State](/usc/42/201.md?p=f) capacity development efforts in existence on August 6, 1996, and publish information to assist [States](/usc/42/201.md?p=f) and public water systems in capacity development efforts; and
      - (ii) initiate a partnership with [States](/usc/42/201.md?p=f), public water systems, and the public to develop information for [States](/usc/42/201.md?p=f) on recommended operator certification requirements.
    - (B) **Publication of information—** The [Administrator](/usc/42/4005.md?p=1) shall publish the information developed through the partnership under [subparagraph (A)(ii)](#d-2-A-ii) not later than 18 months after August 6, 1996.
  - (3) **Promulgation of drinking water regulations—** In promulgating a national primary drinking water regulation, the [Administrator](/usc/42/4005.md?p=1) shall include an analysis of the likely effect of compliance with the regulation on the technical, financial, and managerial capacity of public water systems.
  - (4) **Guidance for new systems—** Not later than 2 years after August 6, 1996, the [Administrator](/usc/42/4005.md?p=1) shall publish guidance developed in consultation with the [States](/usc/42/201.md?p=f) describing legal authorities and other means to ensure that all new community water systems and new nontransient, noncommunity water systems demonstrate technical, managerial, and financial capacity with respect to national primary drinking water [regulations](/usc/42/201.md?p=d).
  - (5) **Information on asset management practices—** Not later than 5 years after October 23, 2018, and not less often than every 5 years thereafter, the [Administrator](/usc/42/4005.md?p=1) shall review and, if appropriate, update educational materials, including handbooks, training materials, and technical information, made available by the [Administrator](/usc/42/4005.md?p=1) to [owners](/usc/42/13641.md?p=4), managers, and operators of public water systems, local officials, technical assistance [providers](/usc/42/299b–21.md?p=8) (including [nonprofit](/usc/42/300s–3.md?p=3) water associations), and [State](/usc/42/201.md?p=f) personnel concerning best [practices](/usc/42/17061.md?p=19) for asset management strategies that may be used by public water systems.
- (e) **Variances and exemptions—** Based on information obtained under [subsection (c)(3)](#c-3), the [Administrator](/usc/42/4005.md?p=1) shall, as appropriate, modify [regulations](/usc/42/201.md?p=d) concerning variances and exemptions for small public water systems to ensure flexibility in the use of the variances and exemptions. Nothing in this subsection shall be interpreted, construed, or applied to affect or alter the requirements of section [300g–4](/usc/42/300g–4.md) or [300g–5](/usc/42/300g–5.md) of this title.
- (f) **Small public water systems technology assistance centers—**
  - (1) **Grant program—** The [Administrator](/usc/42/4005.md?p=1) is authorized to make grants to institutions of higher learning to establish and operate small public water system technology assistance centers in the United States.
  - (2) **Responsibilities of the centers—** The responsibilities of the small public water system technology assistance centers established under this subsection shall include the conduct of training and technical assistance relating to the information, performance, and technical needs of small public water systems or public water systems that serve Indian Tribes.
  - (3) **Applications—** Any institution of higher learning interested in receiving a grant under this subsection shall submit to the [Administrator](/usc/42/4005.md?p=1) an application in such form and containing such information as the [Administrator](/usc/42/4005.md?p=1) may require by regulation.
  - (4) **Selection criteria—** The [Administrator](/usc/42/4005.md?p=1) shall select recipients of grants under this subsection on the basis of the following criteria:
    - (A) The small public water system technology assistance center shall be located in a [State](/usc/42/201.md?p=f) that is representative of the needs of the region in which the [State](/usc/42/201.md?p=f) is located for addressing the drinking water needs of small and rural communities or Indian Tribes.
    - (B) The grant recipient shall be located in a region that has experienced problems, or may reasonably be foreseen to experience problems, with small and rural public water systems.
    - (C) The grant recipient shall have access to expertise in small public water system technology management.
    - (D) The grant recipient shall have the capability to disseminate the results of small public water system technology and training [programs](/usc/42/274l–1.md?p=4).
    - (E) The [projects](/usc/42/13641.md?p=2) that the grant recipient proposes to carry out under the grant are necessary and appropriate.
    - (F) The grant recipient has regional support beyond the host institution.
  - (5) **Consortia of States—** At least 2 of the grants under this subsection shall be made to consortia of [States](/usc/42/201.md?p=f) with low population densities.
  - (6) **Authorization of appropriations—** There are authorized to be appropriated to make grants under this subsection $2,000,000 for each of the fiscal years 1997 through 1999, and $5,000,000 for each of the fiscal years 2000 through 2003.
- (g) **Environmental finance centers—**
  - (1) **In general—** The [Administrator](/usc/42/4005.md?p=1) shall provide initial funding for one or more university-based environmental finance centers for activities that provide technical assistance to [State](/usc/42/201.md?p=f) and local officials in developing the capacity of public water systems. Any such funds shall be used only for activities that are directly related to this subchapter.
  - (2) **National capacity development clearinghouse—** The [Administrator](/usc/42/4005.md?p=1) shall establish a national public water system capacity development clearinghouse to receive and disseminate information with respect to developing, improving, and maintaining financial and managerial capacity at public water systems. The [Administrator](/usc/42/4005.md?p=1) shall ensure that the clearinghouse does not duplicate other federally supported clearinghouse activities.
  - (3) **Capacity development techniques—** The [Administrator](/usc/42/4005.md?p=1) may request an environmental finance center funded under [paragraph (1)](#g-1) to develop and test managerial, financial, and institutional techniques for capacity development. The techniques may include capacity assessment methodologies, manual and computer based public water system rate models and capital planning models, public water system consolidation procedures, and regionalization models.
  - (4) **Authorization of appropriations—** There are authorized to be appropriated to carry out this subsection $1,500,000 for each of the fiscal years 1997 through 2003.
  - (5) **Limitation—** No portion of any funds made available under this subsection may be used for lobbying expenses.

## Source credit

(July 1, 1944, ch. 373, title XIV, § 1420, as added Pub. L. 104–182, title I, § 119, Aug. 6, 1996, 110 Stat. 1647; amended Pub. L. 115–270, title II, § 2012, Oct. 23, 2018, 132 Stat. 3849.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (c)(2)(F). Pub. L. 115–270, § 2012(1), added subpar. (F).

Subsec. (c)(3). Pub. L. 115–270, § 2012(2), inserted “, including efforts of the State to encourage development by public water systems of asset management plans and to assist public water systems in training relevant and appropriate persons in implementing such asset management plans” before period at end.

Subsec. (d)(5). Pub. L. 115–270, § 2012(3), added par. (5).