SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Infrastructure Flexibility 
Act''.

SEC. 2. DEFINITION OF ADMINISTRATOR.

    In this Act, the term ``Administrator'' means the Administrator of 
the Environmental Protection Agency.

SEC. 3. INTEGRATED PLANS.

    (a) Integrated Plans.--Section 402 of the Federal Water Pollution 
Control Act (33 U.S.C. 1342) is amended by adding at the end the 
following:
    ``(s) Integrated Plan Permits.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Green infrastructure.--The term `green 
                infrastructure' means the range of measures that use 
                plant or soil systems, permeable pavement or other 
                permeable surfaces or substrates, stormwater harvest 
                and reuse, or landscaping to store, infiltrate, or 
                evapotranspirate stormwater and reduce flows to sewer 
                systems or to surface waters.
                    ``(B) Integrated plan.--The term `integrated plan' 
                has the meaning given in Part III of the Integrated 
                Municipal Stormwater and Wastewater Planning Approach 
                Framework, issued by the Environmental Protection 
                Agency and dated June 5, 2012.
                    ``(C) Municipal discharge.--
                            ``(i) In general.--The term `municipal 
                        discharge' means a discharge from a treatment 
                        works (as defined in section 212) or a 
                        discharge from a municipal storm sewer under 
                        subsection (p).
                            ``(ii) Inclusion.--The term `municipal 
                        discharge' includes a discharge of wastewater 
                        or storm water collected from multiple 
                        municipalities if the discharge is covered by 
                        the same permit issued under this section.
            ``(2) Integrated plan.--
                    ``(A) In general.--The Administrator (or a State, 
                in the case of a permit program approved under 
                subsection (b)) shall inform a municipal permittee or 
                multiple municipal permittees of the opportunity to 
                develop an integrated plan.
                    ``(B) Scope of permit incorporating integrated 
                plan.--A permit issued under this subsection that 
                incorporates an integrated plan may integrate all 
                requirements under this Act addressed in the integrated 
                plan, including requirements relating to--
                            ``(i) a combined sewer overflow;
                            ``(ii) a capacity, management, operation, 
                        and maintenance program for sanitary sewer 
                        collection systems;
                            ``(iii) a municipal stormwater discharge;
                            ``(iv) a municipal wastewater discharge; 
                        and
                            ``(v) a water quality-based effluent 
                        limitation to implement an applicable wasteload 
                        allocation in a total maximum daily load.
            ``(3) Compliance schedules.--
                    ``(A) In general.--A permit for a municipal 
                discharge by a municipality that incorporates an 
                integrated plan may include a schedule of compliance, 
                under which actions taken to meet any applicable water 
                quality-based effluent limitation may be implemented 
                over more than 1 permit term if the compliance 
                schedules are authorized by State water quality 
                standards.
                    ``(B) Inclusion.--Actions subject to a compliance 
                schedule under subparagraph (A) may include green 
                infrastructure if implemented as part of a water 
                quality-based effluent limitation.
                    ``(C) Review.--A schedule of compliance may be 
                reviewed each time the permit is renewed.
            ``(4) Existing authorities retained.--
                    ``(A) Applicable standards.--Nothing in this 
                subsection modifies any obligation to comply with 
                applicable technology and water quality-based effluent 
                limitations under this Act.
                    ``(B) Flexibility.--Nothing in this subsection 
                reduces or eliminates any flexibility available under 
                this Act, including the authority of--
                            ``(i) a State to revise a water quality 
                        standard after a use attainability analysis 
                        under section 131.10(g) of title 40, Code of 
                        Federal Regulations (as in effect on the date 
                        of enactment of this subsection), subject to 
                        the approval of the Administrator under section 
                        303(c); and
                            ``(ii) the Administrator or a State to 
                        authorize a schedule of compliance that extends 
                        beyond the date of expiration of a permit term 
                        if the schedule of compliance meets the 
                        requirements of section 122.47 of title 40, 
                        Code of Federal Regulations (as in effect on 
                        the date of enactment of this subsection).
            ``(5) Clarification of state authority.--
                    ``(A) In general.--Nothing in section 301(b)(1)(C) 
                precludes a State from authorizing in the water quality 
                standards of the State the issuance of a schedule of 
                compliance to meet water quality-based effluent 
                limitations in permits that incorporate provisions of 
                an integrated plan.
                    ``(B) Transition rule.--In any case in which a 
                discharge is subject to a judicial order or consent 
                decree as of the date of enactment of the Water 
                Infrastructure Flexibility Act resolving an enforcement 
                action under this Act, any schedule of compliance 
                issued pursuant to an authorization in a State water 
                quality standard shall not revise or otherwise affect a 
                schedule of compliance in that order or decree unless 
                the order or decree is modified by agreement of the 
                parties and the court.''.
    (b) Municipal Ombudsman.--
            (1) Establishment.--There is established within the Office 
        of the Administrator an Office of the Municipal Ombudsman.
            (2) General duties.--The duties of the municipal ombudsman 
        shall include the provision of--
                    (A) technical assistance to municipalities seeking 
                to comply with the Federal Water Pollution Control Act 
                (33 U.S.C. 1251 et seq.) and the Safe Drinking Water 
                Act (42 U.S.C. 300f et seq.); and
                    (B) information to the Administrator to help the 
                Administrator ensure that agency policies are 
                implemented by all offices of the Environmental 
                Protection Agency, including regional offices.
            (3) Actions required.--The municipal ombudsman shall work 
        with appropriate offices at the headquarters and regional 
        offices of the Environmental Protection Agency to ensure that 
        the municipality seeking assistance is provided information--
                    (A) about available Federal financial assistance 
                for which the municipality is eligible;
                    (B) about flexibility available under the Federal 
                Water Pollution Control Act (33 U.S.C. 1251 et seq.) 
                and, if applicable, the Safe Drinking Water Act (42 
                U.S.C. 300f et seq.); and
                    (C) regarding the opportunity to develop an 
                integrated plan, as defined in section 402(s)(1)(B) of 
                the Federal Water Pollution Control Act (as added by 
                subsection (a)).
            (4) Priority.--In carrying out paragraph (3), the municipal 
        ombudsman shall give priority to any municipality that 
        demonstrates affordability concerns relating to compliance with 
        the Federal Water Pollution Control Act (33 U.S.C. 1251 et 
        seq.) or the Safe Drinking Water Act (42 U.S.C. 300f et seq.).
            (5) Information sharing.--The municipal ombudsman shall 
        publish on the website of the Environmental Protection Agency--
                    (A) general information relating to--
                            (i) the technical assistance referred to in 
                        paragraph (2)(A);
                            (ii) the financial assistance referred to 
                        in paragraph (3)(A);
                            (iii) the flexibility referred to in 
                        paragraph 3(B); and
                            (iv) any resources related to integrated 
                        plans developed by the Administrator; and
                    (B) a copy of each permit, order, or judicial 
                consent decree that implements or incorporates an 
                integrated plan.
    (c) Municipal Enforcement.--Section 309 of the Federal Water 
Pollution Control Act (33 U.S.C. 1319) is amended by adding at the end 
the following:
    ``(h) Implementation of Integrated Plans Through Enforcement 
Tools.--
            ``(1) In general.--In conjunction with an enforcement 
        action under subsection (a) or (b) relating to municipal 
        discharges, the Administrator shall inform a municipality of 
        the opportunity to develop an integrated plan, as defined in 
        section 402(s).
            ``(2) Modification.--Any municipality under an 
        administrative order under subsection (a) or settlement 
        agreement (including a judicial consent decree) under 
        subsection (b) that has developed an integrated plan consistent 
        with section 402(s) may request a modification of the 
        administrative order or settlement agreement based on that 
        integrated plan.''.
    (d) Report to Congress.--Not later than 2 years after the date of 
enactment of this Act, the Administrator shall submit to the Committee 
on Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives and 
make publicly available a report on each integrated plan developed and 
implemented through a permit, order, or judicial consent decree since 
the date of publication of the ``Integrated Municipal Stormwater and 
Wastewater Planning Approach Framework'' issued by the Environmental 
Protection Agency and dated June 5, 2012, including a description of 
the control measures, levels of control, estimated costs, and 
compliance schedules for the requirements implemented through an 
integrated plan.

SEC. 4. GREEN INFRASTRUCTURE PROMOTION.

    Title V of the Federal Water Pollution Control Act (33 U.S.C. 1361 
et seq.) is amended--
            (1) by redesignating section 519 (33 U.S.C. 1251 note) as 
        section 520; and
            (2) by inserting after section 518 (33 U.S.C. 1377) the 
        following:

``SEC. 519. ENVIRONMENTAL PROTECTION AGENCY GREEN INFRASTRUCTURE 
              PROMOTION.

    ``(a) In General.--The Administrator shall ensure that the Office 
of Water, the Office of Enforcement and Compliance Assurance, the 
Office of Research and Development, and the Office of Policy of the 
Environmental Protection Agency promote the use of green infrastructure 
in and coordinate the integration of green infrastructure into, 
permitting programs, planning efforts, research, technical assistance, 
and funding guidance.
    ``(b) Duties.--The Administrator shall ensure that the Office of 
Water--
            ``(1) promotes the use of green infrastructure in the 
        programs of the Environmental Protection Agency; and
            ``(2) coordinates efforts to increase the use of green 
        infrastructure with--
                    ``(A) other Federal departments and agencies;
                    ``(B) State, tribal, and local governments; and
                    ``(C) the private sector.
    ``(c) Regional Green Infrastructure Promotion.--The Administrator 
shall direct each regional office of the Environmental Protection 
Agency, as appropriate based on local factors, and consistent with the 
requirements of this Act, to promote and integrate the use of green 
infrastructure within the region that includes--
            ``(1) outreach and training regarding green infrastructure 
        implementation for State, tribal, and local governments, tribal 
        communities, and the private sector; and
            ``(2) the incorporation of green infrastructure into 
        permitting and other regulatory programs, codes, and ordinance 
        development, including the requirements under consent decrees 
        and settlement agreements in enforcement actions.
    ``(d) Green Infrastructure Information Sharing.--The Administrator 
shall promote green infrastructure information sharing, including 
through an Internet website, to share information with, and provide 
technical assistance to, State, tribal, and local governments, tribal 
communities, the private sector, and the public regarding green 
infrastructure approaches for--
            ``(1) reducing water pollution;
            ``(2) protecting water resources;
            ``(3) complying with regulatory requirements; and
            ``(4) achieving other environmental, public health, and 
        community goals.''.

SEC. 5. FINANCIAL CAPABILITY GUIDANCE.

    (a) Definitions.--In this section:
            (1) Affordability.--The term ``affordability'' means, with 
        respect to payment of a utility bill, a measure of whether an 
        individual customer or household can pay the bill without undue 
        hardship or unreasonable sacrifice in the essential lifestyle 
        or spending patterns of the individual or household, as 
        determined by the Administrator.
            (2) Financial capability.--The term ``financial 
        capability'' means the financial capability of a community to 
        make investments necessary to make water quality or drinking 
        water improvements.
            (3) Guidance.--The term ``guidance'' means the guidance 
        published by the Administrator entitled ``Combined Sewer 
        Overflows--Guidance for Financial Capability Assessment and 
        Schedule Development'' and dated February 1997, as applicable 
        to the combined sewer overflows and sanitary sewer overflows 
        guidance published by the Administrator entitled ``Financial 
        Capability Assessment Framework'' and dated November 24, 2014.
    (b) Use of Median Household Income.--The Administrator shall not 
use median household income as the sole indicator of affordability for 
a residential household.
    (c) Revised Guidance.--
            (1) In general.--Not later than 1 year after the date of 
        completion of the National Academy of Public Administration 
        study to establish a definition and framework for community 
        affordability required by Senate Report 114-70, accompanying S. 
        1645 (114th Congress), the Administrator shall revise the 
        guidance described in subsection (a)(3).
            (2) Use of guidance.--Beginning on the date on which the 
        revised guidance referred to in paragraph (1) is finalized, the 
        Administrator shall use the revised guidance in lieu of the 
        guidance described in subsection (a)(3).
    (d) Consideration and Consultation.--
            (1) Consideration.--In revising the guidance, the 
        Administrator shall consider--
                    (A) the recommendations of the study referred to in 
                subsection (c) and any other relevant study, as 
                determined by the Administrator;
                    (B) local economic conditions, including site-
                specific local conditions that should be taken into 
                consideration in analyzing financial capability;
                    (C) other essential community investments;
                    (D) potential adverse impacts on distressed 
                populations, including the percentage of low-income 
                ratepayers within the service area of a utility and 
                impacts in communities with disparate economic 
                conditions throughout the entire service area of a 
                utility;
                    (E) the degree to which rates of low-income 
                consumers would be affected by water infrastructure 
                investments and the use of rate structures to address 
                the rates of low-income consumers;
                    (F) an evaluation of an array of factors, the 
                relative importance of which may vary across regions 
                and localities; and
                    (G) the appropriate weight for economic, public 
                health, and environmental benefits associated with 
                improved water quality.
            (2) Consultation.--Any revised guidance issued to replace 
        the guidance shall be developed in consultation with 
        stakeholders.
    (e) Publication and Submission.--
            (1) In general.--On completion of the revision of the 
        guidance, the Administrator shall publish in the Federal 
        Register and submit to the Committee on Environment and Public 
        Works of the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives the revised 
        guidance.
            (2) Explanation.--If the Administrator makes a 
        determination not to follow one or more recommendations of the 
        study referred to in subsection (c)(1), the Administrator shall 
        include in the publication and submission under paragraph (1) 
        an explanation of that decision.
    (f) Effect.--Nothing in this section preempts or interferes with 
any obligation to comply with any Federal law, including the Federal 
Water Pollution Control Act (33 U.S.C. 1251 et seq.).
Water Infrastructure Flexibility Act This bill amends the Federal Water Pollution Control Act (commonly known as the Clean Water Act) to allow municipalities to develop a plan that integrates wastewater and stormwater management. A permit for a municipal discharge under the national pollutant discharge elimination system that incorporates an integrated plan may integrate all requirements under the Act addressed in the plan. Those permits may include a schedule of compliance that allows actions for meeting water quality-based effluent limitations to be implemented over more than one permit term if the compliance schedules are authorized by state water quality standards. Those actions may include implementing green infrastructure as part of a water quality-based effluent limitation. (Green infrastructure includes measures that mimic natural processes to store, reuse, or reduce stormwater.) The bill establishes an Office of the Municipal Ombudsman in the Environmental Protection Agency (EPA) to provide: (1) technical assistance to municipalities seeking to comply with the Clean Water Act and the Safe Drinking Water Act, and (2) information to the EPA to ensure that agency policies are implemented by all EPA offices.  The EPA must ensure that specified EPA offices promote the integration of green infrastructure into permitting programs, planning efforts, research, technical assistance, and funding guidance.  The bill establishes requirements for revising the EPA's 1997 guidance about combined sewer overflows, including by setting forth criteria for determining the ability of households to pay utility bills. (Combined sewer systems collect rainwater, sewage, and industrial wastewater into one pipe. During storms, the combined wastewater sometimes exceeds the capacity of the treatment plant. When this occurs, combined sewer overflows discharge directly into water bodies.)
Water Infrastructure Flexibility Act