Sec. 3. Drinking water infrastructure discretionary grant program

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Not later than 1 year after the date of enactment of this Act, the Administrator of the Environmental Protection Agency (referred to in this section as the Administrator ) shall establish a drinking water discretionary grant program (referred to in this section as the program ) to provide grants, on a competitive basis, to eligible entities described in subsection

(b)for investments in drinking water infrastructure projects. An entity eligible to receive a grant under the program is— a State, interstate, intermunicipal, or local governmental entity, agency, or instrumentality; a Tribal government or consortium of Tribal governments; a State infrastructure financing authority; and a community water system or nonprofit noncommunity water system (as those terms are defined in section 1401 of the Safe Drinking Water Act ( 42 U.S.C. 300f )). A project eligible to be carried out with funds under the program includes— planning, design, siting, preconstruction and construction activities related to replacing or rehabilitating aging treatment, storage, or distribution facilities of public water systems; for public water systems for which one or more sources of drinking water is contaminated with perfluoroalkyl or polyfluoroalkyl substances that meet or exceed federal or state drinking water health advisory levels or standards— treatment measures to reduce the detectible levels of perfluoroalkyl or polyfluoroalkyl substances; and measures to connect the public water system to a new drinking water source; connecting households using well water to a public water system; replacing lead pipes or service lines; measures that would bring public water systems into compliance with the Safe Drinking Water Act ( 42 U.S.C. 300f et seq. ); and any other drinking water infrastructure project that the Administrator determines to appropriate. Notwithstanding any other provision of law, a project otherwise eligible under paragraph

(1)shall not be ineligible for funding because the project also received prior assistance— from a State drinking water treatment revolving loan fund established under section 1452 of the Safe Drinking Water Act ( 42 U.S.C. 300j–12 ); 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 under the Water Infrastructure Finance and Innovation Act of 2014 ( 33 U.S.C. 3901 et seq. ). Amounts made available under the program may not be used as a source of payment of, or security for (directly or indirectly), in whole or in part, any obligation the interest on which is exempt from the tax imposed under chapter 1 of the Internal Revenue Code of 1986. To be eligible to receive a grant under the program, an eligible entity shall submit to the Administrator an application in such manner and containing such information as the Administrator may require. An eligible entity may include more than 1 project in a single application. An application shall be submitted to the Administrator not later than 180 days after the date on which the notice of funding opportunity and the selection criteria are issued under subsection (e)(1)(B). The Administrator shall establish criteria in accordance with this subsection to use in selecting projects to receive a grant under the program. Not later than 90 days after the date on which funds are made available to carry out the program for each fiscal year, the Administrator shall— issue a notice of funding opportunity for the program; and include in the notice the selection criteria established under subparagraph (A). In selecting projects to receive a grant under the program, the Administrator shall give priority to projects— for which a Federal grant would assist in completing an overall financing package for the project; and that would help bring public water systems (as defined in section 1401 of the Safe Drinking Water Act ( 42 U.S.C. 300f )) into compliance with the Safe Drinking Water Act ( 42 U.S.C. 300f et seq. ). For each fiscal year, in providing grants under the program, the Administrator shall ensure that the funds are distributed— on an equitable geographical basis; and in a manner that balances the needs of urban, suburban, and rural communities. Not later than 18 months after the date on which funds are made available to carry out the program for each fiscal year, the Administrator shall select projects to receive grants under the program. For each fiscal year, the total amount provided under the program for projects in a single State shall not exceed 20 percent of the total amount made available to carry out the program. The non-Federal share of the cost of a project carried out with a grant under the program shall be not less than 20 percent. An eligible entity receiving a grant under the program may use funds provided from other Federal sources to meet the non-Federal share requirement under subparagraph (A). The Administrator may promulgate such regulations as may be necessary to carry out this section. Notwithstanding any other provision of law, the Administrator may not provide a grant under the program for a project unless the project meets the requirements described in section 1450(e) of the Safe Drinking Water Act ( 42 U.S.C. 300j–9(e) ). Not later than 2 years after the date of enactment of this Act, the Administrator shall submit to Congress and make publicly available a report on the implementation of the program. There is authorized to be appropriated to carry out this section $1,000,000,000 for each of fiscal years 2022 through 2031. Funds made available to carry out this section shall be available until expended. Not more than 2 percent of the amount made available for a fiscal year under paragraph

(1)may be used by the Administrator for the administrative costs of carrying out the program. Notwithstanding any other provision of law, all laborers and mechanics employed by contractors or subcontractors on projects carried out in whole or in part using a grant under the program shall be paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the Davis-Bacon Act ). With respect to the labor standards specified in paragraph (1), the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. Notwithstanding any other provision of law, the Administrator may not provide a grant under the program for a project unless the project meets the requirements described in section 1452(a)(4) of the Safe Drinking Water Act ( 42 U.S.C. 300j–12(a)(4) ).

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