Small Public Water System Assistance Program

(a)

Definition of Indian Tribe

Section 1401(14) of the Safe Drinking Water Act (42 U.S.C. 300f(14)) is amended in the second sentence by striking 1452, and inserting 1452 and part G,. (b)

Establishment of Program

The Safe Drinking Water Act (42 U.S.C. 300f et seq.) is amended by adding at the end the following:

Small public water system assistance

1471.

Definitions

In this part: (1)

Eligible activity

(A)

In general

The term eligible activity means an activity concerning a small public water system (including obtaining technical assistance) that is carried out by an eligible entity for a purpose consistent with section 1473(c)(1) or 1474(c)(1), as appropriate. (B)

Exclusion

The term eligible activity does not include any activity to increase the population served by a small public water system, except to the extent that the State under section 1473(b)(1) or the Administrator under section 1474(b)(1) determines an activity to be necessary to— (i)achieve compliance with a national primary drinking water regulation; and (ii)provide a water supply to a population that, as of the date of enactment of this part, is not served by a safe public water system. (2)

Eligible entity

The term eligible entity means a small public water system that— (A)is located in a State or an area governed by an Indian Tribe; and (B)(i)if located in a State, serves a community that, under affordability criteria established by the State under section 1452(d)(3), is determined by the State to be— (I)a disadvantaged community; or (II)a community the State expects to become a disadvantaged community as a result of carrying out an eligible activity; or (ii)if located in an area governed by an Indian Tribe, serves a community that is determined by the Administrator, under criteria published by the Administrator under section 1452(d)(3) and in consultation with the Secretary, to be— (I)a disadvantaged community; or (II)a community the Administrator expects to become a disadvantaged community as a result of carrying out an eligible activity. (3)

Eligible State

The term eligible State means a State that has— (A)adopted, and is implementing, an approved operator certification program under section 1419; and (B)established affordability criteria under section 1452(d)(3) for use in identifying disadvantaged communities. (4)

Program

The term Program means the Small Public Water System Assistance Program established under section 1472(a). (5)

Secretary

The term Secretary means the Secretary of Health and Human Services, acting through the Director of the Indian Health Service. (6)

Small public water system

The term small public water system means a public water system (including a community water system and a noncommunity water system) that serves a population of 10,000 or fewer.

1472.

Small Public Water System Assistance Program

(a)

Establishment

Not later than July 1, 2008, the Administrator shall establish within the Environmental Protection Agency a Small Public Water System Assistance Program. (b)

Duties

The head of the Program shall— (1)in accordance with section 1474, establish and administer a small public water system assistance program for, and provide grants to, eligible entities located in areas governed by Indian Tribes, for use in carrying out eligible activities; (2)identify, and prepare annual prioritized lists of, activities for eligible entities located in areas governed by Indian Tribes that are eligible for grants under section 1474; (3)provide funds to States for use in establishing small public water system assistance programs under section 1473 that award grants to eligible entities to carry out eligible activities; and (4)prepare, and submit to the Administrator, the reports required under subsection (d). (c)

Allocation of funds

(1)

States

(A)

In general

Subject to subparagraphs (B) through (D) and paragraph (2)(A), for each fiscal year, the Administrator, through the head of the Program, using the most recent available needs survey conducted by the Administrator under section 1452(h), shall allocate the funds made available to carry out the Program for the fiscal year among eligible States based on the ratio that— (i)the financial need associated with treatment projects for small public water systems in the State; bears to (ii)the total financial need associated with treatment projects for all small public water systems in all States. (B)

Additional requirements

Any additional financial needs of small public water systems associated with the cost of treatment projects needed to comply with a national primary drinking water regulation that is promulgated after the most recent needs survey conducted under section 1452(h) shall be factored into the determination of financial need under clauses (i) and (ii) of subparagraph (A) for each fiscal year. (C)

Minimum allocation

An allocation of funds to a State for a fiscal year under subparagraph (A), taking into consideration any additional financial needs described in subparagraph (B), shall be in an amount that is at least 1 percent of the amount of funds available for that fiscal year. (D)

Redistribution if nonuse

If a State does not qualify for, or fails to request, funds allocated to the State under subparagraph (A) in any fiscal year, the Administrator shall redistribute the funds among the States that— (i)request funds for that fiscal year; and (ii)are eligible to receive the funds under subparagraph (A) for that fiscal year. (2)

Indian Tribes

(A)

In general

For each fiscal year, in accordance with subparagraph (B), 3 percent of the total amount of funds made available to carry out the Program for the fiscal year shall be allocated by the Administrator to provide grants to eligible entities that are located in areas governed by Indian Tribes through the program established under section 1474(a). (B)

Use of funds

(i)

In general

For each fiscal year, the Administrator shall award, on a competitive basis, not less than 1.5 percent of the funds allocated under subparagraph (A) to nonprofit technical assistance organizations, to be used for the purposes of— (I)assisting the Administrator in preparing the list required under section 1474(b) (including assisting the Administrator in identifying the highest priority eligible activities for eligible entities located in areas governed by Indian Tribes for which a grant under section 1474 may be used); (II)assisting eligible entities located in areas governed by Indian Tribes in— (aa)assessing needs relating to eligible activities; and (bb)identifying available sources of funding to meet the cost-sharing requirement of section 1474(f)(1); and (III)assisting eligible entities located in areas governed by Indian Tribes that receive funding under section 1474 in— (aa)planning, implementing, and maintaining eligible activities that are funded under that section; and (bb)preparing reports required under section 1474(h). (ii)

Consultation

Each nonprofit technical assistance organization that receives funds under clause (i) shall consult with the Administrator, through the head of the program, before carrying out any activity for the purposes described in subclauses (II)(aa) and (III)(aa) of that clause. (iii)

No funds for lobbying expenses

None of the funds made available to a nonprofit technical assistance organization under clause (i) shall be used to pay lobbying expenses. (3)

Program

For each fiscal year, the Administrator may use not more than 0.1 percent of the funds made available to carry out the Program to pay reasonable costs incurred in the administration of the Program. (d)

Reports

Not later than January 1, 2009, and annually thereafter through January 1, 2014, the Administrator shall— (1)submit, to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate, a report that, for the preceding fiscal year— (A)lists the eligible activities for eligible entities, as prepared under sections 1473(b)(1) and 1474(b)(1), located in areas governed by Indian Tribes and in each State receiving funds under this part; (B)identifies the number of grants awarded by each State, and by the Administrator to eligible entities located in areas governed by Indian Tribes, under this part; (C)identifies each eligible entity that received a grant to carry out an eligible activity; (D)identifies the amount of each grant provided to an eligible entity to carry out an eligible activity; and (E)describes each eligible activity funded by such a grant (including the status of the eligible activity); and (2)make the report under paragraph (1) available to the public.

1473.

State Small Public Water System Assistance Programs

(a)

In general

To be eligible to receive funding under this part, a State shall— (1)be an eligible State; (2)not later than July 1, 2008 (if funding is sought for fiscal year 2008) or not later than September 30 of any of fiscal years 2008 through 2014 (if funding is sought for the following fiscal year), establish a small public water system assistance program— (A)under which the requirements of subsection (b), oversight, and related activities (other than financial administration) with respect to the program are administered— (i)in the case of a State that is exercising primary enforcement responsibility for public water systems, by the State agency having primary responsibility for administration of the State program under section 1413; and (ii)in the case of a State that is not exercising primary enforcement authority for public water systems, by a State agency selected by the Governor of the State; and (B)that meets the requirements of this section; and (3)for each fiscal year for which funding is sought under this section— (A)in preparing an intended use plan under section 1452(b), after providing for public review and comment, prepare an annual list of eligible activities for eligible entities in the State in accordance with subsection (b); and (B)prepare and submit to the Administrator a request for the funding, by such date and in such form as the Administrator shall prescribe. (b)

Program priority requirement

(1)

List of eligible activities

A small public water system assistance program established under subsection (a) shall, for each fiscal year for which funding is sought, identify, and, using the priority criteria described in paragraph (2) and considering the additional criteria described in paragraph (3), list in descending order of priority, eligible activities for eligible entities in the State for which funds provided from a grant under this part may be used. (2)

Priority criteria

In preparing the list under paragraph (1), a small public water system assistance program shall give priority for the use of grants to eligible activities that— (A)address the most serious risk to human health; (B)are necessary to ensure compliance with national primary water regulations applicable to eligible entities under section 1412; and (C)assist systems most in need, as calculated on the basis of median household income, under affordability criteria established by the State under section 1452(d)(3). (3)

Additional criteria

In addition to the priority criteria described in paragraph (2), a small public water system assistance program shall, in preparing a list under paragraph (1), consider giving additional priority to any listed eligible activities that are to be carried out by communities that form management cooperatives (including management cooperatives between systems that do not have connections). (c)

Use of funds

Using any funds received by a State under this section for a fiscal year, in accordance with the list prepared under subsection (b), a small public water system assistance program established by the State under subsection (a)— (1)shall provide to an eligible entity, on a cost-shared basis, a grant to be used for an eligible activity (including source water protection) the purpose of which is compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; (2)shall— (A)award, on a competitive basis, not less than 1.5 percent of the funds to nonprofit technical assistance organizations to be used for the purposes of— (i)assisting the State in preparing the list required under subsection (b) (including assisting the State in identifying the highest priority eligible activities for eligible entities located in the State for which a grant under this section may be used); and (ii)assisting eligible entities in— (I)assessing needs relating to eligible activities; (II)identifying available sources of funding to meet the cost-sharing requirement of subsection (f); and (III)planning, implementing, and maintaining any eligible activities of the eligible entities that receive funding under this section; (B)require each nonprofit technical assistance organization that receives funds under subparagraph (A) to consult with the State, through the head of the small public water assistance program, before carrying out any activity for the purposes described in subclauses (I) and (III) of subparagraph (A)(ii); and (C)require that none of the funds made available to a nonprofit technical assistance organization under subparagraph (A) be used to pay lobbying expenses; and (3)may use not to exceed 1 percent of the funds allocated to the State to pay reasonable costs incurred in the administration of the small public water system assistance program. (d)

Limitation on use of funds

For each fiscal year, not more than 5 percent of the funds received by an eligible entity under this section may be used to obtain technical assistance in planning, implementing, and maintaining eligible activities that are funded under this section. (e)

Limitation on receipt of funds

(1)

In general

Except as provided in paragraph (2), a grant under this section shall not be provided to an eligible entity that, as determined by the State— (A)does not have the technical, managerial, and financial capability to ensure compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; or (B)is in significant noncompliance with any applicable national primary drinking water regulation. (2)

Exception for receipt of grant

An eligible entity described in paragraph (1) may receive a grant under this section only— (A)if the State determines that use of the grant will ensure compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; (B)(i)to restructure or consolidate the facility to achieve compliance with applicable national primary drinking water regulations; or (ii)in a case in which restructuring or consolidation of the facility is not practicable, if the State determines that— (I)the eligible entity has made a good faith effort to achieve compliance with applicable national primary drinking water regulations; and (II)the eligible entity is adhering to an enforceable schedule for achieving those regulations; and (C)in a case in which paragraph (1)(A) applies to an eligible entity, and the eligible entity agrees to undertake feasible and appropriate changes in operations (including changes in ownership, management, accounting, rates, maintenance, consolidation, provision of an alternative water supply, or other procedures), if the State determines that the measures are necessary to ensure that the eligible entity has the technical, managerial, and financial capability to comply with applicable national primary drinking water regulations over the long term. (3)

Review

Before providing assistance under this section to an eligible entity that is in significant noncompliance with any national primary drinking water regulation applicable to the eligible entity under section 1412, the State shall conduct a review to determine whether paragraph (1)(A) applies to the entity. (f)

Cost sharing

(1)

In general

(A)

Limit

Except as provided in paragraph (2), the share of the total cost of an eligible activity funded by a grant under this section shall not exceed 80 percent. (B)

Use of other Federal funds

To pay the portion of an eligible activity that may not be funded by a grant under this section, an eligible entity may use Federal financial assistance other than assistance received under this section. (2)

Waiver of cost-sharing requirement

(A)

In general

Subject to subparagraph (B), a State may waive the requirement of an eligible entity to pay all or a portion of the share of an eligible activity that may not be funded by a grant under this section, based on a determination by the State that the eligible entity is unable to pay any or all of the share. (B)

Limitation

For each fiscal year in which a State receives funding under this section, the total amount of cost-share waivers provided by the State under subparagraph (A) shall not exceed 30 percent of the amount of funding received by the State for the fiscal year under section 1472(c)(1). (g)

Unobligated funds

Any funds not obligated by the State for a purpose consistent with subsection (c) within 1 year after the date of the allocation of the funds by the Administrator under section 1472(c) shall be returned to the Administrator for reallocation under that section. (h)

Reports

Not later than November 1 following each fiscal year in which a State receives funding under this section, the State shall— (1)submit to the Administrator a report that, for the preceding fiscal year— (A)lists the eligible activities for eligible entities, as prepared under subsection (b); (B)identifies the number of grants awarded by the State small public water system assistance program to eligible entities; (C)identifies each eligible entity that received a grant to carry out an eligible activity; (D)identifies the amount of each grant provided to an eligible entity to carry out an eligible activity; and (E)describes each eligible activity funded by such grants (including the status of the eligible activity); and (2)make the report under paragraph (1) available to the public.

1474.

Small Public Water System Assistance Program for Indian Tribes

(a)

Establishment

Not later than July 1, 2008, the Administrator shall establish a small public water system assistance program for Indian Tribes, through which eligible entities located in areas governed by the Indian Tribe may receive grants for eligible activities under this part. (b)

Program priority requirement

(1)

List of eligible activities

(A)

In general

The Administrator, acting through the head of the small public water system assistance program for Indian Tribes, in consultation with the Secretary, shall, for each fiscal year, identify, and, using the priority criteria described in paragraph (2) and considering the additional criteria described in paragraph (3), list in descending order of priority, eligible activities for eligible entities located in areas governed by Indian Tribes for which funds provided from a grant under this part may be used. (B)

Coordination

(i)

In general

To the maximum extent practicable, the Administrator shall ensure that the list under subparagraph (A) is coordinated with any needs assessment conducted under section 1452(i)(4). (ii)

Additional consideration

Any additional financial needs of small public water systems located in areas governed by Indian Tribes that are associated with the cost of complying with a national primary drinking water regulation that is promulgated after the most recent needs survey conducted under section 1452(i)(4) shall be factored into the determination of financial need for, and prioritization of, eligible activities under this section. (2)

Priority criteria

In preparing the list under paragraph (1), the Administrator shall give priority for the use of grants to eligible activities that— (A)address the most serious risk to human health; (B)are necessary to ensure compliance with national primary water regulations applicable to eligible entities under section 1412; and (C)assist systems most in need, as calculated on the basis of median household income, under affordability criteria published by the Administrator under section 1452(d)(3). (3)

Additional criteria

In addition to the priority criteria described in paragraph (2), the Administrator shall, in preparing a list under paragraph (1), consider giving additional priority to any listed eligible activities that are to be carried out by communities that form management cooperatives (including management cooperatives between systems that do not have connections). (c)

Use of funds

(1)

In general

Using funds allocated under section 1472(c)(2)(A), the small public water system assistance program established under subsection (a) shall provide to an eligible entity located in an area governed by an Indian Tribe, on a cost-shared basis, a grant to be used for an eligible activity (including source water protection) the purpose of which is compliance with national primary drinking water regulations applicable to the eligible entity under section 1412. (2)

Allocation of grant funding

For each fiscal year, taking into consideration the funding allocation under section 1472(c)(2)(A) for the fiscal year, the head of the small public water assistance program established under subsection (a), in consultation with the Secretary, shall provide grants under paragraph (1) for the maximum number of eligible activities for which the funding allocation makes assistance available, based on the priority assigned by the Administrator to eligible activities under subsection (b). (d)

Limitation on use of funds

Limitation on receipt of funds

(1)

In general

Except as provided in paragraph (2), a grant under this section shall not be provided to an eligible entity that, as determined by the Administrator— (A)does not have the technical, managerial, and financial capability to ensure compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; or (B)is in significant noncompliance with any applicable national primary drinking water regulation. (2)

Exception for receipt of grant

An eligible entity described in paragraph (1) may receive a grant under this section only— (A)if the Administrator determines that use of the grant will ensure compliance with national primary drinking water regulations applicable to the eligible entity under section 1412; (B)(i)to restructure or consolidate the facility to achieve compliance with applicable national primary drinking water regulations; or (ii)in a case in which restructuring or consolidation of the facility is not practicable, if the Administrator determines that— (I)the eligible entity has made a good faith effort to achieve compliance with applicable national primary drinking water regulations; and (II)the eligible entity is adhering to an enforceable schedule for achieving those regulations; and (C)in a case in which paragraph (1)(A) applies to an eligible entity, and the eligible entity agrees to undertake feasible and appropriate changes in operations (including changes in ownership, management, accounting, rates, maintenance, consolidation, provision of an alternative water supply, or other procedures), if the Administrator determines that the measures are necessary to ensure that the eligible entity has the technical, managerial, and financial capability to comply with applicable national primary drinking water regulations over the long term. (3)

Review

Before providing assistance under this section to an eligible entity that is in significant noncompliance with any national primary drinking water regulation applicable to the eligible entity under section 1412, the Administrator shall conduct a review to determine whether paragraph (1)(A) applies to the entity. (f)

Cost sharing

(1)

In general

(A)

Limit

Except as provided in paragraph (2), the share of the total cost of an eligible activity funded by a grant under this section shall not exceed 80 percent. (B)

Use of other Federal funds

Waiver of cost-sharing requirement

(A)

In general

The Administrator may waive the requirement of an eligible entity to pay all or a portion of the share of eligible activity that may not be funded by a grant under this section based on a determination by the Administrator that the eligible entity is unable to pay any or all of the share. (B)

Limitation

For each fiscal year, the total amount of cost-share waivers provided by the Administrator under subparagraph (A) shall not exceed 30 percent of the amount of funding allocated to eligible entities located in areas governed by Indian Tribes for the fiscal year under section 1472(c)(2)(A). (g)

Unobligated funds

Any funds not obligated by the small public water system assistance program established under subsection (a) for a purpose consistent with section 1472(c)(2)(B) and subsection (c) within 1 year after the date of allocation of the funds by the Administrator under section 1472(c)(2)(A) shall be returned to the Administrator for reallocation under that section. (h)

Reports

Not later than November 1 following each fiscal year in which an Indian Tribe receives funding under this section, the Indian Tribe shall submit to the Administrator a report that, for the preceding fiscal year— (1)identifies the number of grants awarded to eligible entities located in areas governed by the Indian Tribe; (2)identifies each such eligible entity that received a grant to carry out an eligible activity; (3)identifies the amount of each grant provided to such an eligible entity to carry out an eligible activity; and (4)describes each eligible activity funded by such grants (including the status of the eligible activity).

1475.

Authorization of appropriations

There is authorized to be appropriated to carry out this part $750,000,000 for each of fiscal years 2008 through 2014.