Sec. 3. Low-income wastewater assistance pilot program

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Title I of the Federal Water Pollution Control Act ( 33 U.S.C. 1251 et seq.) is amended by adding at the end the following: In this section: The term eligible entity means— a municipality or public entity that owns or operates— a publicly owned treatment works; a municipal wastewater treatment system; or a municipal separate stormwater sewer system; and 2 or more municipalities or public entities described in subparagraph

(A)that have entered into a partnership agreement or a cooperative agreement. The term household means any individual or group of individuals who are living together as 1 economic unit. The term low-income household means a household— in which one or more individuals are receiving— assistance under a State program funded under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.); supplemental security income payments under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq.); supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq.); or payments under— section 1315, 1521, 1541, or 1542 of title 38, United States Code; or section 306 of the Veterans' and Survivors' Pension Improvement Act of 1978 ( 38 U.S.C. 1521 note; Public Law 95–588 ); or that has an income that, as determined by the State in which the household is located, does not exceed the greater of— an amount equal to 150 percent of the poverty level; and an amount equal to 60 percent of the State median income for that State. The term poverty level means, with respect to a household in a State, the income poverty guidelines for the nonfarm population of the United States, as prescribed by the Office of Management and Budget, as applicable to the State. The term small community-serving eligible entity means an eligible entity that provides wastewater or municipal stormwater services to a city, county, or municipality with a population of fewer than 10,000 residents, at least 20 percent of whom are at or below the Federal poverty level. The term State median income has the meaning given the term in section 2603 of Public Law 97–35 ( 42 U.S.C. 8622 ). The Administrator shall establish a pilot program to award grants to not fewer than 32 eligible entities in accordance with paragraph

(2)to develop and implement programs to assist low-income households in maintaining access to affordable wastewater or municipal stormwater services. The Administrator shall award grants under the pilot program described in paragraph

(1)to— not fewer than 8 eligible entities that provide wastewater services, stormwater services, or both to a population of 1,000,000 or more residents; not fewer than 8 eligible entities that provide wastewater services, stormwater services, or both to a population of 100,000 or more, but fewer than 1,000,000, residents; not fewer than 8 eligible entities that provide wastewater services, stormwater services, or both to a population of 10,000 or more, but fewer than 100,000, residents; subject, as applicable, to subparagraph (B), not fewer than 8 eligible entities that provide wastewater services, stormwater services, or both to a population of fewer than 10,000 residents; and not more than 2 eligible entities in each State. To be eligible to receive a grant under the pilot program under this subsection, a small community-serving eligible entity shall enter into a memorandum of understanding with the State in which the small community-serving eligible entity is located, under which the State shall— submit to the Administrator an application under paragraph

(6)on behalf of the small community-serving eligible entity; and on receipt of a grant under the pilot program, administer the low-income household assistance program developed by the small community-serving eligible entity. A grant awarded under the pilot program— shall not be used to replace funds for any existing similar program; but may be used to supplement or enhance an existing program. An eligible entity— may apply for a grant under the pilot program and under the low-income drinking water assistance pilot program established under section 1459E(b)(1) of the Safe Drinking Water Act; but may be awarded a grant under only 1 of the programs described in clause (i). The term of a grant awarded under the pilot program shall be 5 years. Not later than 2 years after the date of enactment of this section, the Administrator shall develop, in consultation with all relevant stakeholders, the minimum requirements for a program to be carried out by an eligible entity (or a State, on behalf of a small community-serving eligible entity) using a grant under this subsection. The program requirements developed under subparagraph

(A)may include— direct financial assistance; a lifeline rate; bill discounting; special hardship provisions; a percentage-of-income payment plan; or water efficiency assistance, including direct installation of water efficient fixtures and leak repair, which may be completed through a contracted third party. Notwithstanding any other provision of law, assistance provided to a low-income household under a program carried out by an eligible entity (or a State, on behalf of a small community-serving eligible entity) using a grant under this subsection shall be exempt from income tax under the Internal Revenue Code of 1986. To receive a grant under this subsection, an eligible entity (or a State, on behalf of a small community-serving eligible entity) shall submit to the Administrator an application that demonstrates that— the proposed program of the eligible entity or small community-serving eligible entity, as applicable, meets the requirements developed under paragraph (5)(A); the proposed program of the eligible entity or small community-serving eligible entity, as applicable, will treat owners and renters equitably; the eligible entity or small community-serving eligible entity, as applicable, has, to fund the activities necessary to achieve or maintain compliance with this Act— a long-term financial plan based on a rate analysis; an asset management plan; a capital improvement plan with a period of not less than 20 years; a fiscal management plan; or another plan similar to the plans described in clauses

(i)through (iv); a grant awarded under this subsection would support the efforts of the eligible entity or the small community-serving entity, as applicable, to generate the necessary funds to achieve or maintain compliance with this title while mitigating the cost to low-income households; and the eligible entity or the small community-serving entity, as applicable, has the capacity to create and implement an effective community outreach plan to inform eligible customers of the program and assist with enrollment. In awarding grants under this subsection, the Administrator shall give priority to eligible entities or small community-serving eligible entities, as applicable— that are affected by consent decrees relating to compliance with this Act; the residential customers of the eligible entity or small community-serving eligible entity, as applicable, have experienced a rate or fee increase for wastewater, stormwater, or drinking water services that is greater than or equal to 30 percent during the 3-year period ending on the date of enactment of this section; that— develop an equivalent program, as determined by the Administrator, that is administered separately by the eligible entity or small community-serving eligible entity, as applicable; or provide matching funds equal to or greater than the amount of the grant from— the applicable State or unit of local government; or a State-sponsored nonprofit organization or private entity; or that are described in subsection (a)(1)(B). For purposes of this section, an eligible entity (or a State, on behalf of a small community-serving eligible entity) may adopt an income limit that is lower than the limit described in subsection (a)(3)(B), except that the eligible entity or State, respectively, may not exclude a household from eligibility in a fiscal year based solely on household income if that income is less than 110 percent of the poverty level. In addition to any other applicable Federal or agency-specific grant reporting requirements, as a condition of receiving a grant under this subsection, an eligible entity (or a State, on behalf of a small community-serving eligible entity) shall submit to the Administrator an annual report that summarizes, in a manner determined by the Administrator, the low-income household assistance program developed by the eligible entity or small community-serving eligible entity, as applicable, using the grant amount, including— key features, including rate structures, rebates, discounts, and related initiatives that assist households, including— budget billing; bill timing; and pretermination protections; sources of funding; eligibility criteria; participation rates by eligible households; the monetary benefit per participant; program costs; the demonstrable impacts of the program on arrearage and service disconnection for residential customers, based on data from before and after the implementation of the pilot program, to the maximum extent practicable; the outreach and stakeholder process used by the eligible entity or small community-serving eligible entity, as applicable, to design the program, including— the selection process for any stakeholder committee members; and the number and location of community outreach events; the methods used to enroll customers, including the outreach plan and the status of implementation of that outreach plan; and other relevant information required by the Administrator. The Administrator shall publish each report submitted under subparagraph (A). The Administrator shall provide technical assistance to each eligible entity, and each State, on behalf of a small community-serving eligible entity, that receives a grant under this section to ensure— full implementation of the pilot program; and maximum enrollment of low-income households, including through— community outreach campaigns; coordination with local health departments to determine the eligibility of households for assistance; or a combination of the campaigns and coordination described in subparagraphs

(A)and (B). Not later than 2 years after the date on which grant funds are first disbursed to an eligible entity (or a State, on behalf of a small community-serving eligible entity) under this section, and every year thereafter for the duration of the terms of the grants, the Administrator shall submit to Congress a report on the results of the pilot program established under this section. .

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