SECTION 1. CONSOLIDATION.

    (a) Mandatory Assessment and Consolidation.--Subsection (h) of 
section 1414 of the Safe Drinking Water Act (42 U.S.C. 300g-3) is 
amended by adding at the end the following:
            ``(3) Authority for mandatory assessment and mandatory 
        consolidation.--
                    ``(A) Mandatory assessment.--A State with primary 
                enforcement responsibility or the Administrator (if the 
                State does not have primary enforcement responsibility) 
                may require the owner or operator of a public water 
                system to assess options for consolidation, or transfer 
                of ownership of the system, as described in paragraph 
                (1), if--
                            ``(i) the public water system has 
                        repeatedly failed to comply with one or more 
                        national primary drinking water regulations;
                            ``(ii) such consolidation or transfer is 
                        feasible; and
                            ``(iii) such consolidation or transfer 
                        could result in greater compliance with 
                        national primary drinking water regulations.
                    ``(B) Mandatory consolidation.--A State with 
                primary enforcement responsibility or the Administrator 
                (if the State does not have primary enforcement 
                responsibility) may require the owner or operator of a 
                public water system to submit a plan for consolidation, 
                or transfer of ownership of the system, as described in 
                paragraph (1), and complete the actions required under 
                such plan if--
                            ``(i) the owner or operator of the public 
                        water system completed the assessment required 
                        under paragraph (A), but did not complete 
                        consolidation or transfer of ownership;
                            ``(ii) since completing such assessment, 
                        the public water system has failed to comply 
                        with one or more national primary drinking 
                        water regulations; and
                            ``(iii) such consolidation or transfer is 
                        feasible.
                    ``(C) Regulations.--Not later than 2 years after 
                the date of enactment of this paragraph, the 
                Administrator shall promulgate regulations to implement 
                this paragraph.
            ``(4) Financial assistance.--Notwithstanding section 
        1452(a)(3), public water systems undertaking consolidation or 
        transfer of ownership pursuant to this section may receive 
        assistance under section 1452 to carry out such consolidation 
        or transfer.
            ``(5) Protection of non-responsible system.--
                    ``(A) Identification of liabilities.--An owner or 
                operator of a public water system submitting a plan 
                pursuant to this section shall identify as part of such 
                plan--
                            ``(i) any potential liability for damages 
                        arising from each specific violation identified 
                        in the plan of which the owner or operator is 
                        aware or should be aware; and
                            ``(ii) any funds or other assets available 
                        to satisfy such liability that are available, 
                        as of the date of submission of such plan, to 
                        the public water system that committed such 
                        violation.
                    ``(B) Reservation of funds.--A public water system 
                that has completed consolidation with another public 
                water system pursuant to a plan approved or required 
                pursuant to this section shall not be liable in a civil 
                action for any damages arising from a specific 
                violation identified in such plan, except to the extent 
                to which funds or other assets are identified pursuant 
                to subparagraph (A)(ii) as available to satisfy such 
                liability.''.
    (b) Retention of Primary Enforcement Authority.--
            (1) In general.--Section 1413(a) of the Safe Drinking Water 
        Act (42 U.S.C. 300g-2(a)) is amended--
                    (A) in paragraph (5), by striking ``; and'' and 
                inserting a semicolon;
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) has adopted and is implementing procedures for 
        requiring public water systems to assess options for, and 
        complete, consolidation or transfer of ownership, in accordance 
        with the regulations issued by the Administrator to implement 
        section 1414(i)(3); and''.
            (2) Conforming amendment.--Section 1413(b)(1) of the Safe 
        Drinking Water Act (42 U.S.C. 300g-2(b)(1)) is amended by 
        striking ``of paragraphs (1), (2), (3), and (4)''.
This bill amends the Safe Drinking Water Act to authorize states and the Environmental Protection Agency to require public water systems that have repeatedly failed to comply with drinking water standards to assess options for consolidation. Public water systems are eligible for financial assistance to assist with undertaking consolidation activities.  Additionally, the bill provides liability protection for compliant public water systems that consolidate with non-compliant systems.
To amend the Safe Drinking Water Act with respect to the consolidation of public water systems, and for other purposes.