II 

117TH CONGRESS 

1ST SESSION S. 722 

To amend the Energy Policy Act of 2005 to establish a program to provide 

grants and loan guarantees to improve the energy efficiency of publicly 

owned wastewater treatment facilities, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 11, 2021 

Mr. MERKLEY introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To amend the Energy Policy Act of 2005 to establish a 

program to provide grants and loan guarantees to improve the energy efficiency of publicly owned wastewater 

treatment facilities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Wastewater Efficiency 

5 and Treatment Act of 2021’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 722 IS

1 (1) municipalities face high energy costs to op2 erate and maintain the wastewater treatment facili3 ties of the municipalities; 

4 (2) energy intensive operations at wastewater 

5 treatment facilities can include aeration, influent 

6 pumping, aerobic digestion, anaerobic digestion, 

7 building operations, and other critical components of 

8 the waste treatment process; 

9 (3) the utility energy costs of a municipality 

10 can exceed 30 percent of total energy costs of the 

11 municipality; 

12 (4) energy costs are part of the calculus in de13 termining ratepayer rates; 

14 (5) wastewater treatment facilities that use an15 aerobic digestion can capture methane for conversion 

16 into energy for onsite power production, heating, 

17 transportation fuel, export of renewable natural gas 

18 or electricity, and other uses; 

19 (6) the process described in paragraph (5) may 

20 be enhanced through innovative technologies, such 

21 as codigestion of fats, oils and grease, food waste, 

22 and other organic waste; 

23 (7) all wastewater treatment facilities, regard24 less of type of treatment or size, can benefit from 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 722 IS

1 energy audits and installation of energy efficient 

2 components; 

3 (8) investment in recovery technologies for use 

4 by wastewater treatment facilities may result in— 

5 (A) reduced energy costs for the waste6 water treatment facility; 

7 (B) improved energy resiliency of the 

8 wastewater treatment facility; and 

9 (C) potential revenue generating streams 

10 for the municipality that owns the wastewater 

11 treatment facility; 

12 (9) many existing Federal programs relating to 

13 water infrastructure remain inaccessible because mu14 nicipality officials and utility managers may not 

15 have resources— 

16 (A) to upgrade the infrastructure of the 

17 wastewater treatment facilities of the munici18 pality for energy efficiency; or 

19 (B) to transition wastewater treatment fa20 cilities of the municipality towards energy resil21 iency; and 

22 (10) this Act will substantially benefit waste23 water treatment facilities in the United States by 

24 addressing the gap in funding for wastewater treat25 ment facility projects for large and small municipaliVerDate Sep 11 2014 18:07 Apr 08, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S722.IS S722

pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 722 IS

1 ties by making loan guarantees and grants available 

2 to municipalities to reduce borrowing costs and ac3 celerate water infrastructure investment. 

4 SEC. 3. WATER AND ENERGY EFFICIENCY PROGRAM. 

5 (a) WATER AND ENERGY EFFICIENCY PROGRAM.— 

6 The Energy Policy Act of 2005 is amended by inserting 

7 after section 1705 (42 U.S.C. 16516) the following: 

8 ‘‘SEC. 1706. WATER AND ENERGY EFFICIENCY PROGRAM. 

9 ‘‘(a) PURPOSE.—The purpose of this section is to 

10 provide grants and guarantees— 

11 ‘‘(1) to improve energy efficiency, energy pro12 duction, and nutrient recovery at wastewater treat13 ment facilities; 

14 ‘‘(2) to generate energy from waste in the treat15 ment process of wastewater treatment facilities; and 

16 ‘‘(3) to reduce the energy consumption of eligi17 ble municipalities and Tribes in which wastewater 

18 treatment facilities are located. 

19 ‘‘(b) DEFINITIONS.—In this section: 

20 ‘‘(1) ELIGIBLE MUNICIPALITY OR TRIBE.—The 

21 term ‘eligible municipality or Tribe’ means a munici22 pality or Indian Tribe determined to be eligible 

23 under the criteria developed under subsection (c)(2). 

24 ‘‘(2) INDIAN TRIBE.—The term ‘Indian Tribe’ 

25 has the meaning given the term ‘Indian tribe’ in secVerDate Sep 11 2014 18:07 Apr 08, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S722.IS S722

pamtmann on DSKBC07HB2PROD with BILLS
5 

•S 722 IS

1 tion 4 of the Indian Self-Determination and Edu2 cation Assistance Act (25 U.S.C. 5304). 

3 ‘‘(3) PROGRAM.—The term ‘Program’ means 

4 the Water and Energy Efficiency Program estab5 lished under subsection (c)(1). 

6 ‘‘(4) WASTEWATER TREATMENT FACILITY.— 

7 The term ‘wastewater treatment facility’ has the 

8 meaning given the term ‘treatment works’ in section 

9 212 of the Federal Water Pollution Control Act (33 

10 U.S.C. 1292). 

11 ‘‘(c) ESTABLISHMENT.— 

12 ‘‘(1) IN GENERAL.—Not later than 180 days 

13 after the date of enactment of this section, notwith14 standing section 1703, the Secretary shall establish 

15 a program, to be known as the ‘Water and Energy 

16 Efficiency Program’, to provide— 

17 ‘‘(A) grants under subsection (d); and 

18 ‘‘(B) guarantees under subsection (e). 

19 ‘‘(2) CRITERIA.—The Secretary shall develop 

20 application criteria for providing grants and guaran21 tees under the Program, including criteria to deter22 mine whether a municipality or Indian Tribe is eligi23 ble for a grant or guarantee under the Program. 

24 ‘‘(d) WATER EFFICIENCY GRANTS.— 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•S 722 IS

1 ‘‘(1) IN GENERAL.—Under the Program, the 

2 Secretary, acting through the Assistant Secretary 

3 for Energy Efficiency and Renewable Energy, shall 

4 award grants to eligible entities described in para5 graph (2) to carry out 1 or more eligible projects de6 scribed in paragraph (3). 

7 ‘‘(2) ELIGIBLE ENTITIES.—An entity eligible to 

8 receive a grant under this subsection is a small pub9 licly wastewater treatment facility that serves— 

10 ‘‘(A) a population of not more than 

11 10,000; or 

12 ‘‘(B) a disadvantaged community, as deter13 mined by the Secretary. 

14 ‘‘(3) ELIGIBLE PROJECTS.—An eligible project 

15 referred to in paragraph (1) is— 

16 ‘‘(A) a project to carry out an energy effi17 ciency audit of a wastewater treatment facility 

18 to identify opportunities in the operations of the 

19 wastewater treatment facility— 

20 ‘‘(i) to reduce electrical demand; or 

21 ‘‘(ii) to reduce losses in the waste22 water treatment facility system; and 

23 ‘‘(B) a project to replace equipment or to 

24 carry out other small capital projects to update 

25 components of a wastewater treatment facility 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•S 722 IS

1 based on the results of an energy efficiency 

2 audit of the wastewater treatment facility. 

3 ‘‘(4) AMOUNT OF GRANT.—The amount of a 

4 grant made under this subsection shall not exceed 

5 $25,000. 

6 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

7 There is authorized to be appropriated to the Sec8 retary to carry out this subsection $5,000,000 for 

9 fiscal year 2021 and each fiscal year thereafter, of 

10 which not more than 4 percent each fiscal year shall 

11 be used for administrative costs. 

12 ‘‘(e) WATER AND ENERGY EFFICIENCY GUARAN13 TEES.— 

14 ‘‘(1) IN GENERAL.—Under the Program, the 

15 Secretary shall provide guarantees to eligible munici16 palities and Tribes to carry out 1 or more eligible 

17 projects described in paragraph (2). 

18 ‘‘(2) ELIGIBLE PROJECTS.—An eligible project 

19 referred to in paragraph (1) is— 

20 ‘‘(A) a project to convert waste in the 

21 treatment process of the wastewater treatment 

22 facility into renewable fuels, biosolids, or other 

23 byproducts, including— 

24 ‘‘(i) predigestion solids treatment; 


pamtmann on DSKBC07HB2PROD with BILLS
8 

•S 722 IS

1 ‘‘(ii) installation of anaerobic digest2 ers; 

3 ‘‘(iii) biogas capture; 

4 ‘‘(iv) energy transfer; 

5 ‘‘(v) enhanced nutrient recovery; 

6 ‘‘(vi) material feedstocks; 

7 ‘‘(vii) facility upgrades and retrofits 

8 necessary to create or improve waste-to-en9 ergy systems; and 

10 ‘‘(viii) other emerging technologies 

11 that transform waste to energy; and 

12 ‘‘(B) a project that is being carried out 

13 pursuant to an existing plan that, as deter14 mined by the Secretary, will assist in 

15 transitioning a wastewater treatment facility to16 wards the use of energy-efficient technologies. 

17 ‘‘(3) COVERED COSTS.—A guarantee provided 

18 under this subsection may be used for— 

19 ‘‘(A) predevelopment costs associated with 

20 the eligible project or existing water and waste21 water systems that are part of the eligible 

22 project, including energy assessments; and 

23 ‘‘(B) construction and equipment costs in24 curred in carrying out an eligible project under 

25 this subsection. 


pamtmann on DSKBC07HB2PROD with BILLS
9 

•S 722 IS

1 ‘‘(4) ADDITIONAL ACTIVITY.—In providing 

2 guarantees under this subsection, the Secretary shall 

3 promote technologies to reduce pollution in waste4 water, including enhanced nutrient recovery and 

5 other innovative technologies. 

6 ‘‘(f) SMALL-SCALE EXTENSION SERVICES PRO7 GRAM.—In carrying out the Program, the Secretary shall 

8 establish a small-scale extension services program to pro9 vide assistance to rural communities through grants, out10 reach, training, and technical assistance regarding energy11 efficient technologies at wastewater treatment facilities in 

12 eligible municipalities and Tribes. 

13 ‘‘(g) ADMINISTRATION.— 

14 ‘‘(1) EFFECT ON STATE, TRIBAL, AND LOCAL

15 PERMITS.—The provision of a grant or guarantee 

16 for an eligible project under the Program shall not— 

17 ‘‘(A) relieve any recipient of the grant or 

18 guarantee of any obligation to obtain any re19 quired State, local, or Tribal permit or approval 

20 with respect to the project; 

21 ‘‘(B) limit the right of any unit of State, 

22 local, or Tribal government to approve or regu23 late any rate of return on private equity in24 vested in the project; or 


pamtmann on DSKBC07HB2PROD with BILLS
10 

•S 722 IS

1 ‘‘(C) otherwise supersede any State, local, 

2 or Tribal law (including any regulations) appli3 cable to the construction or operation of the 

4 project. 

5 ‘‘(2) CLEAN WATER ACT.—Nothing in this sec6 tion precludes, preempts, or supersedes any require7 ment under the Federal Water Pollution Control Act 

8 (33 U.S.C. 1251 et seq.) (commonly referred to as 

9 the ‘‘Clean Water Act’’). 

10 ‘‘(h) REPORTS.—As soon as practicable after the end 

11 of each fiscal year for which amounts are made available 

12 to carry out this section, the Secretary shall publish on 

13 a dedicated, publicly accessible internet website informa14 tion describing— 

15 ‘‘(1) with respect to that fiscal year— 

16 ‘‘(A) each application received for assist17 ance under the Program; 

18 ‘‘(B) a list of the projects selected for as19 sistance under the Program, including— 

20 ‘‘(i) a description of each project; 

21 ‘‘(ii) the amount of financial assist22 ance provided for each project; and 

23 ‘‘(iii) the basis for the selection of 

24 each project with respect to the require25 ments of this section; and 


pamtmann on DSKBC07HB2PROD with BILLS
11 

•S 722 IS

1 ‘‘(C) an overview of technical assistance 

2 and outreach activities provided during that fis3 cal year to— 

4 ‘‘(i) each eligible municipality and 

5 Tribe; and 

6 ‘‘(ii) wastewater treatment facilities 

7 serving populations of not more than 

8 10,000; and 

9 ‘‘(2) the technical assistance and outreach ac10 tivities proposed to be provided over the next 2 fiscal 

11 years to the entities described in clauses (i) through 

12 (iii) of paragraph (1)(C).’’. 

13 (b) CLERICAL AMENDMENT.—The table of contents 

14 for the Energy Policy Act of 2005 (Public Law 109–58; 

15 119 Stat. 604; 123 Stat. 145) is amended by inserting 

16 after the item relating to section 1705 the following: 

‘‘Sec. 1706. Water and Energy Efficiency Program.’’. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS