Sec. 302. Drinking water and wastewater infrastructure

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Section 603 of the Federal Water Pollution Control Act ( 33 U.S.C. 1383 ) is amended— in subsection (c)— in paragraph (11)(B), by striking and at the end; in paragraph (12)— in the matter preceding subparagraph (A), by striking

(j)and inserting

(l); and in subparagraph (B), by striking the period at the end and inserting ; and ; and by adding at the end the following: to expand publicly owned treatment works to meet demand due to expected population growth. ; in subsection (d)— in paragraph (1)(A), by striking the lesser of 30 years and the projected and inserting the intended ; by redesignating paragraphs

(6)and

(7)as paragraphs

(7)and (8), respectively; and by inserting after paragraph

(5)the following: to provide technical assistance to wastewater utilities, except that not more than 2 percent of the funds annually allotted to the State under section 604 may be used to provide that technical assistance. ; by redesignating subsection

(j)as subsection (l); and by inserting after subsection

(i)the following: In this subsection, the term disadvantaged community means the service area of a publicly owned treatment works that serves a population of fewer than 10,000 individuals. A State may, to provide regional coordinators for 1 or more disadvantaged communities, use any funds— set aside in the State water pollution control revolving fund of the State for technical assistance under subsection (d)(6); or provided to the State through a grant for technical assistance under section 104. In determining whether to provide assistance to a project from the water pollution control revolving fund of the State, a State may consider whether the project would employ innovative management, procurement, or ownership arrangements. . Section 1420(g)(4) of the Safe Drinking Water Act ( 42 U.S.C. 300g–9(g)(4) ) is amended by striking the fiscal years 1997 through 2003 and inserting fiscal years 2021 through 2031 . Section 1452 of the Safe Drinking Water Act ( 42 U.S.C. 300j–12 ) is amended— in subsection (a)(2)— in subparagraph (G)(ii)(I)(aa), by striking subsection (d)(3) and inserting subsection (d)(1) ; and by adding at the end the following: Funds made available under this section may be used to assist a public water system in expanding the public water system to meet demand due to expected population growth. ; in subsection (b)(3)— in subparagraph (A)— in clause (ii), by striking and at the end; in clause (iii), by striking the period at the end and inserting ; and ; and by adding at the end the following: facilitate regional system partnerships. ; and by adding at the end the following: In establishing criteria for the distribution of funds from the State loan fund, a State may include in those criteria whether a project would develop, employ, or establish innovative management, procurement, or ownership arrangements. ; in subsection (d)— in paragraph (2), by striking paragraph

(1)and inserting paragraph

(2); by redesignating paragraphs (1), (2), and

(3)as paragraphs (2), (3), and (1), respectively, and reordering those paragraphs so as to appear in numerical order; and by adding at the end the following: A State may use any funds set aside in the State loan fund of the State for technical assistance to provide regional coordinators for 1 or more disadvantaged communities. ; and in subsection (f)(1), by striking subparagraph

(C)and inserting the following: each loan shall have a term not to exceed the intended design life of the project; . The Safe Drinking Water Act ( 42 U.S.C. 300f et seq.) is amended by adding after part F the following: In this section: The term system in significant noncompliance means— a water system that is significantly noncompliant with regulations with respect to drinking water standards under this title; or a treatment works that is in significant noncompliance with regulations with respect to effluent limitations under title III of the Federal Water Pollution Control Act ( 33 U.S.C. 1311 et seq.). The term treatment works has the meaning given the term in section 212 of the Federal Water Pollution Control Act ( 33 U.S.C. 1292 ). The Administrator may, to bring a system in significant noncompliance into compliance with this title and with effluent limitations under title III of the Federal Water Pollution Control Act ( 33 U.S.C. 1311 et seq.), as applicable, authorize the system in significant noncompliance to be incorporated into— a community water system; a noncommunity water system; the system operated by an operator of multiple public water systems; or the system operated by an operator of multiple treatment works. The Administrator may provide grants to— a system described in paragraph (1), (2), (3), or

(4)of subsection

(b)that seeks to incorporate a separate system in significant noncompliance under that subsection to provide assistance in seeking that incorporation; and a system in significant noncompliance that seeks to be incorporated into a water system described in paragraph (1), (2), (3), or

(4)of subsection (b). A grant under paragraph

(1)shall be not more than $1,000,000. Notwithstanding any other provision of this title or title III of the Federal Water Pollution Control Act ( 33 U.S.C. 1311 et seq.) and subject to paragraph (2), the Administrator may, to allow time to bring a system in significant noncompliance into compliance with this title or title III of the Federal Water Pollution Control Act ( 33 U.S.C. 1311 et seq.), as applicable, suspend financial penalties for noncompliance with this title or title III of the Federal Water Pollution Control Act ( 33 U.S.C. 1311 et seq.), as applicable, for— a system in significant noncompliance; and a system described in paragraph (1), (2), (3), or

(4)of subsection

(b)that has incorporated a system in significant noncompliance. Except as provided in subparagraph (B), the Administrator may suspend the penalties described in paragraph

(1)for a period of not more than 180 days. The Administrator may, at the discretion of the Administrator, extend the period described in subparagraph

(A)after a period during which the Administrator provides notice of the proposed extension and an opportunity for public comment. The Administrator shall, after providing notice and an opportunity for public comment, promulgate regulations to carry out paragraph (1). . Section 1459A(c)(2)(A) of the Safe Drinking Water Act (42 U.S.C. 300j–19a(c)(2)(A)) is amended in the matter preceding clause

(i)by striking 1452(d)(3) and inserting 1452(d)(1) . Section 1459B of the Safe Drinking Water Act ( 42 U.S.C. 300j–19b ) is amended by striking 1452(d)(3) each place it appears and inserting 1452(d)(1) . The Administrator of the Environmental Protection Agency (referred to in this subsection as the Administrator ), in consultation with the Secretary of Agriculture, shall conduct an audit with respect to the barriers to drinking water and wastewater system regionalization. In conducting the audit under subparagraph (A), the Administrator shall focus on— regulatory impediments to— merging system operations; issuing multi-system or coordinated project procurements; accessing Federal funding and financing; and forgiving or consolidating outstanding debt; and the alignment and coordination of regionalized technical assistance and guidance among Federal agencies and contracted technical assistance partners and providers. Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report that— describes the results of the audit under subparagraph (A); and includes legislative and regulatory recommendations necessary to better facilitate drinking water and clean water system partnerships in rural areas. The Comptroller General of the United States shall conduct, and submit to Congress a report describing the results of, a study with respect to the use of cooperative or joint procurement among water and wastewater systems in rural areas. The study under subparagraph

(A)shall include— the extent to which rural water and wastewater systems are currently conducting joint or cooperative procurements; the costs and benefits of using a cooperative or joint procurement approach in rural areas; the barriers to water and wastewater systems in rural areas in using cooperative or joint procurements; and recommendations with respect to ways that the Federal Government can encourage greater use of cooperative and joint procurements among water and wastewater systems in rural areas. Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to the relevant committees of Congress a report describing potential legislative and regulatory options for minimizing the costs related to cross-cutting Federal requirements (such as the requirements under section 608 of the Federal Water Pollution Control Act ( 33 U.S.C. 1388 ), section 1452(a)(4) of the Safe Drinking Water Act ( 42 U.S.C. 300j–12(a)(4) ), and similar requirements) in projects in rural areas that use funds from— a State water pollution control revolving fund established under title VI of the Federal Water Pollution Control Act ( 33 U.S.C. 1381 et seq.); or a State drinking water treatment revolving loan fund established under section 1452 of the Safe Drinking Water Act ( 42 U.S.C. 300j–12 ).

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