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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 938 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                 S. 938

To establish a trust fund to provide for adequate funding for water and 
             sewer infrastructure, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2023

 Mr. Sanders (for himself, Mr. Wyden, Mr. Blumenthal, Mr. Merkley, Ms. 
 Warren, and Mr. Welch) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To establish a trust fund to provide for adequate funding for water and 
             sewer infrastructure, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Water 
Affordability, Transparency, Equity, and Reliability Act of 2023''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Administrator.
Sec. 3. Water Affordability, Transparency, Equity, and Reliability 
                            Trust Fund.
Sec. 4. Report on affordability, discrimination and civil rights 
                            violations, public participation in 
                            regionalization, and data collection.
Sec. 5. Household water well systems.
Sec. 6. Use of State revolving funds under the Federal Water Pollution 
                            Control Act.
Sec. 7. Use of State revolving loan funds under the Safe Drinking Water 
                            Act.
Sec. 8. Drinking water grant programs.
Sec. 9. Labor provisions.
Sec. 10. Drinking water assistance to colonias.

SEC. 2. DEFINITION OF ADMINISTRATOR.

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

SEC. 3. WATER AFFORDABILITY, TRANSPARENCY, EQUITY, AND RELIABILITY 
              TRUST FUND.

    (a) Establishment.--
            (1) In general.--Subchapter A of chapter 98 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following:

``SEC. 9512. WATER AFFORDABILITY, TRANSPARENCY, EQUITY, AND RELIABILITY 
              TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Water 
Affordability, Transparency, Equity, and Reliability Trust Fund' 
(referred to in this section as the `Trust Fund'), consisting of such 
amounts as may be appropriated or credited to such Trust Fund as 
provided in this section or section 9602(b).
    ``(b) Transfers to Fund.--
            ``(1) In general.--There are hereby appropriated to the 
        Trust Fund such amounts as the Secretary from time to time 
        estimates are equal to the increase in Federal revenues 
        attributable to the amendment made by section 3(b) of the Water 
        Affordability, Transparency, Equity, and Reliability Act of 
        2023.
            ``(2) Limitation.--The sum of the amounts appropriated 
        under paragraph (1) during any fiscal year shall not exceed the 
        larger of--
                    ``(A) $35,000,000,000, and
                    ``(B) one-twentieth of the sum of--
                            ``(i) the 20-year need identified in the 
                        most recent assessment conducted by the 
                        Administrator of the Environmental Protection 
                        Agency in accordance with section 1452(h) of 
                        the Safe Drinking Water Act (42 U.S.C. 300j-
                        12(h)), plus
                            ``(ii) the 20-year need identified in the 
                        most recent needs survey submitted by the 
                        Administrator pursuant to sections 205(a), 516, 
                        and 609 of the Federal Water Pollution Control 
                        Act (33 U.S.C. 1285(a), 1375, 1389).
    ``(c) Expenditures.--Amounts in the Trust Fund are available, 
without further appropriation and without fiscal year limitation, for 
the purposes described in section 3(c) of the Water Affordability, 
Transparency, Equity, and Reliability Act of 2023.''.
            (2) Clerical amendment.--The table of parts for subchapter 
        A of chapter 98 of such Code is amended by inserting after the 
        item relating to section 9511 the following new item:

``Sec. 9512. Water Affordability, Transparency, Equity, and Reliability 
                            Trust Fund.''.
    (b) Increase in Corporate Tax Rate.--
            (1) In general.--Section 11(b) of the Internal Revenue Code 
        of 1986 is amended by striking ``21'' and inserting ``24.5''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after December 31, 2022.
    (c) Allocation of Funds.--The Administrator, the Secretary of 
Agriculture, and the Secretary of Health and Human Services shall 
allocate, for a fiscal year, the amount available, at the beginning of 
that fiscal year, in the Water Affordability, Transparency, Equity, and 
Reliability Trust Fund established by section 9512(a) of the Internal 
Revenue Code of 1986, as follows:
            (1) Clean water programs.--Of that amount, the 
        Administrator shall use--
                    (A) 0.5 percent for making grants under section 
                104(b)(8) of the Federal Water Pollution Control Act 
                (33 U.S.C. 1254(b)(8));
                    (B) 1.5 percent for making grants under section 106 
                of that Act (33 U.S.C. 1256);
                    (C) 2.5 percent for making grants under section 226 
                of that Act (33 U.S.C. 1302d);
                    (D) 2.5 percent for making grants under subsections 
                (h) and (i) of section 319 of that Act (33 U.S.C. 
                1329); and
                    (E) 42.25 percent for making capitalization grants 
                under title VI of that Act (33 U.S.C. 1381 et seq.).
            (2) Safe drinking water funding.--Of that amount, the 
        Administrator shall use--
                    (A) 0.5 percent for providing technical assistance 
                under section 1442(e) of the Safe Drinking Water Act 
                (42 U.S.C. 300j-1(e));
                    (B) 42.25 percent for making capitalization grants 
                under section 1452 of that Act (42 U.S.C. 300j-12);
                    (C) 3 percent for making grants under section 1465 
                of that Act (42 U.S.C. 300j-25); and
                    (D) 0.5 percent for making grants under section 
                1456 of that Act (42 U.S.C. 300j-16) and for making 
                grants under section 307 of the Safe Drinking Water Act 
                Amendments of 1996 (33 U.S.C. 1281 note; Public Law 
                104-182).
            (3) Household water well systems.--Of that amount, the 
        Secretary of Agriculture shall use 1 percent for making grants 
        under section 306E of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1926e).
            (4) Colonias.--Of that amount, the Secretary of Agriculture 
        shall use 0.5 percent for making grants under section 306C of 
        the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1926c) to entities described in subsection (c) of that section.
            (5) Indian health service.--Of that amount, the Secretary 
        of Health and Human Services, acting through the Director of 
        the Indian Health Service, shall use 3 percent for making 
        grants for the planning, design, construction, modernization, 
        improvement, and renovation of water, sewer, and solid waste 
        sanitation facilities that are funded, in whole or part, by the 
        Indian Health Service--
                    (A) through, or provided for in, a contract or 
                compact with the Indian Health Service under the Indian 
                Self-Determination and Education Assistance Act (25 
                U.S.C. 5301 et seq.);
                    (B) pursuant to section 7 of the Act of August 5, 
                1954 (68 Stat. 674, chapter 658; 42 U.S.C. 2004a); or
                    (C) pursuant to section 302 of the Indian Health 
                Care Improvement Act (25 U.S.C. 1632).
    (d) Prohibition.--None of the funds allocated pursuant to 
subsection (c) may be used for any activity described in paragraphs (1) 
through (5) of section 203(a) of the Labor-Management Reporting and 
Disclosure Act of 1959 (29 U.S.C. 433(a)).

SEC. 4. REPORT ON AFFORDABILITY, DISCRIMINATION AND CIVIL RIGHTS 
              VIOLATIONS, PUBLIC PARTICIPATION IN REGIONALIZATION, AND 
              DATA COLLECTION.

    (a) Study.--
            (1) In general.--The Administrator shall conduct a study on 
        water and sewer services in accordance with this subsection.
            (2) Affordability.--In conducting the study under paragraph 
        (1), the Administrator shall study water affordability across 
        the United States, including--
                    (A) rates for water and sewer services, increases 
                in those rates during the 10-year period preceding the 
                study, and water service disconnections due to unpaid 
                water service charges; and
                    (B) the effectiveness of funding under section 1452 
                of the Safe Drinking Water Act (42 U.S.C. 300j-12) and 
                under title VI of the Federal Water Pollution Control 
                Act (33 U.S.C. 1381 et seq.) for promoting affordable, 
                equitable, transparent, and reliable water and sewer 
                service.
            (3) Discrimination and civil rights.--In conducting the 
        study under paragraph (1), the Administrator, in collaboration 
        with the Civil Rights Division of the Department of Justice, 
        shall study--
                    (A) discriminatory practices of water and sewer 
                service providers;
                    (B) discriminatory practices of State program 
                administrators in allocating funding; and
                    (C) violations by those service providers and 
                program administrators that receive Federal assistance 
                of civil rights under title VI of the Civil Rights Act 
                of 1964 (42 U.S.C. 2000d et seq.) with respect to equal 
                access to water and sewer services.
            (4) Public participation in regionalization.--In conducting 
        the study under paragraph (1), the Administrator shall evaluate 
        efforts to regionalize public water systems (as defined in 
        section 1401 of the Safe Water Drinking Act (42 U.S.C. 300f)) 
        and sewer services with respect to public participation in--
                    (A) the decision to undergo that regionalization; 
                and
                    (B) decisionmaking by the board of directors (or 
                other governing body) of the entity that provides, or 
                oversees or coordinates the provision of, water by the 
                public water systems subject to such regionalization.
            (5) Data collection.--In conducting the study under 
        paragraph (1), the Administrator shall collect information, 
        assess the availability of information, and evaluate the 
        methodologies used to collect information with respect to--
                    (A) people living without water or sewer services;
                    (B) water service disconnections due to unpaid 
                water service charges, including disconnections 
                experienced by households containing children, elderly 
                persons, disabled persons, chronically ill persons, or 
                other vulnerable populations;
                    (C) tax liens and foreclosures due to unpaid water 
                service charges; and
                    (D) disparate effects, on the basis of race, 
                gender, or socioeconomic status, of water service 
                disconnections, tax liens and foreclosures due to 
                unpaid water service charges, and the lack of public 
                water service.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall submit to Congress a report that 
contains--
            (1) the results of the study conducted under subsection 
        (a)(1); and
            (2) recommendations for utility companies, Federal 
        agencies, and States relating to those results.

SEC. 5. HOUSEHOLD WATER WELL SYSTEMS.

    Section 306E(d) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926e(d)) is amended by striking ``$20,000,000 for each of 
fiscal years 2019 through 2023'' and inserting ``$348,500,000 for each 
fiscal year''.

SEC. 6. USE OF STATE REVOLVING FUNDS UNDER THE FEDERAL WATER POLLUTION 
              CONTROL ACT.

    (a) Specific Requirements.--Section 602(b) of the Federal Water 
Pollution Control Act (33 U.S.C. 1382(b)) is amended--
            (1) in paragraph (2), by striking ``which will be made to 
        the State with funds to be made available'' and inserting 
        ``that were made to the State with funds made available for 
        fiscal year 2021'';
            (2) in paragraph (13)(B)(iii), by striking ``and'' at the 
        end;
            (3) in paragraph (14), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following:
            ``(15) the State will not provide financial assistance 
        using amounts from the fund for any project that will provide 
        substantial direct benefits to new communities, lots, or 
        subdivisions, other than a project to construct an advanced 
        decentralized wastewater system; and''.
    (b) Projects and Activities Eligible for Assistance.--Section 
603(c) of the Federal Water Pollution Control Act (33 U.S.C. 1383(c)) 
is amended--
            (1) in paragraph (11)(B), by striking ``and'' at the end;
            (2) in paragraph (12)(B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(13) to any municipality or intermunicipal, interstate, 
        or State agency for--
                    ``(A) purchasing from a willing or unwilling seller 
                a privately owned treatment works; and
                    ``(B) expenses related to canceling a contract for 
                the operation or management of a publicly owned 
                treatment works.''.
    (c) Increasing the Amount of Additional Subsidization by the 
State.--Section 603(i)(3) of the Federal Water Pollution Control Act 
(33 U.S.C. 1383(i)(3)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) Requirement.--To the extent that there are 
                sufficient applications, a State shall use not less 
                than 50 percent of the total amount received by the 
                State in capitalization grants under this title for a 
                fiscal year for providing additional subsidization 
                under this subsection.''.

SEC. 7. USE OF STATE REVOLVING LOAN FUNDS UNDER THE SAFE DRINKING WATER 
              ACT.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by inserting 
                        ``publicly owned, operated, and managed'' 
                        before ``community water systems''; and
                            (ii) by striking subparagraph (E) and 
                        inserting the following:
                    ``(E) Acquisition of privately owned community 
                water systems.--The funds under this section may be 
                used--
                            ``(i) to purchase from a willing or 
                        unwilling seller a privately owned community 
                        water system; and
                            ``(ii) for expenses related to canceling a 
                        contract for the operation or management of a 
                        community water system.''; and
                    (B) by adding at the end the following:
            ``(6) Exception to public ownership, operation, and 
        management requirement.--Notwithstanding paragraph (2)(A), 
        public water systems that regularly serve fewer than 10,000 
        persons and which are not owned, operated, or managed by any 
        person who owns, operates, or manages any other public water 
        system may receive assistance under this section.'';
            (2) in subsection (d), by striking paragraph (2) and 
        inserting the following:
            ``(2) Requirement.--To the extent that there are sufficient 
        applications for loans to communities described in paragraph 
        (1), of the amount of the capitalization grant received by a 
        State in a fiscal year, the total amount of loan subsidies made 
        by the State in the fiscal year pursuant to paragraph (1) may 
        not be less than 50 percent.'';
            (3) in subsection (e), by striking ``to be made to the 
        State'' and inserting ``that was made to the State in fiscal 
        year 2021'';
            (4) in subsection (g)(3)--
                    (A) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii), respectively, and 
                indenting appropriately;
                    (B) in the undesignated matter following clause 
                (iii) (as so redesignated), by striking ``The guidance 
                and regulations shall also'' and inserting the 
                following:
                    ``(B) Generally accepted accounting standards.--The 
                guidance and regulations required under subparagraph 
                (A) shall'';
                    (C) in the matter preceding clause (i) (as so 
                redesignated), by striking ``The Administrator'' and 
                inserting the following:
                    ``(A) In general.--The Administrator''; and
                    (D) in subparagraph (A) (as so designated)--
                            (i) in clause (ii) (as so redesignated), by 
                        striking ``and'' at the end;
                            (ii) in clause (iii) (as so redesignated), 
                        by striking the period at the end and inserting 
                        ``; and''; and
                            (iii) by inserting after clause (iii) the 
                        following:
                            ``(iv) guidance to ensure affordable, 
                        equitable, transparent and reliable water 
                        service provision, to provide protections for 
                        households facing service disconnection due to 
                        unpaid water service charges, and to promote 
                        universal equal access to water services.''; 
                        and
            (5) in subsection (k)(1), by adding at the end the 
        following:
                    ``(E) Provide assistance in the form of a grant to 
                owners of private property on which a lead service line 
                (as defined in section 1459B(a)) is or may be located, 
                for the purpose of replacing the lead service line with 
                a service line that is lead free (as defined in section 
                1417(d)).
                    ``(F) Provide assistance to a publicly owned, 
                operated, and managed community water system for the 
                purpose of updating treatment plants or switching water 
                sources due to contamination from a perfluoroalkyl or 
                polyfluoroalkyl substance (as defined by the State in 
                which the community water system is located).
                    ``(G) Provide assistance in the form of a grant to 
                owners of a household water well that has been 
                contaminated by a perfluoroalkyl or polyfluoroalkyl 
                substance (as defined by the State in which the 
                household well is located) for the purpose of 
                purchasing and installing a household filtration 
                system.''.

SEC. 8. DRINKING WATER GRANT PROGRAMS.

    (a) School Drinking Water Improvement.--Section 1465 of the Safe 
Drinking Water Act (42 U.S.C. 300j-25) is amended--
            (1) in the section heading, by striking ``fountain'' and 
        inserting ``infrastructure'';
            (2) in subsection (a), by striking ``fountains manufactured 
        prior to 1988'' and inserting ``infrastructure'';
            (3) by striking subsection (b) and inserting the following:
    ``(b) Use of Funds.--Funds awarded under the grant program may be 
used to pay costs associated with--
            ``(1) installing, repairing, or replacing the 
        infrastructure necessary to ensure that drinking water 
        fountains, drinking water coolers, and bottle filling stations 
        at schools are lead free (as defined in section 1417(d)); and
            ``(2) monitoring and reporting of lead levels in the 
        drinking water of schools, as determined appropriate by the 
        Administrator.''; and
            (4) in subsection (d)--
                    (A) by striking ``$5,000,000'' and inserting 
                ``$1,050,000,000''; and
                    (B) by striking ``2019 through 2021'' and inserting 
                ``2024 and 2025''.
    (b) Tribal Drinking Water.--Section 1452(i)(1) of the Safe Drinking 
Water Act (42 U.S.C. 300j-12(i)(1)) is amended, in the first sentence--
            (1) by striking ``1 1/2'' and inserting ``3''; and
            (2) by striking ``may'' and inserting ``shall''.

SEC. 9. LABOR PROVISIONS.

    (a) Prevailing Rate of Wage.--Nothing in this Act or an amendment 
made by this Act shall affect the applicability of the requirements 
relating to labor standards of sections 513 and 602(b)(6) of the 
Federal Water Pollution Control Act (33 U.S.C. 1372, 1382(b)(6)) and 
section 1450(e) of the Safe Drinking Water Act (42 U.S.C. 300j-9(e)) to 
projects carried out under those Acts.
    (b) Project Labor Agreements.--
            (1) Clean water revolving funds.--Section 602(b) of the 
        Federal Water Pollution Control Act (33 U.S.C. 1382(b)) (as 
        amended by section 6(a)), is amended by adding at the end the 
        following:
            ``(16) the State will--
                    ``(A) permit recipients of assistance under this 
                title to enter into agreements authorized under section 
                8(f) of the National Labor Relations Act (29 U.S.C. 
                158(f)) (commonly known as `project labor agreements') 
                with respect to projects for building or construction 
                carried out with that assistance; and
                    ``(B) ensure that, to the maximum extent 
                practicable, recipients of assistance under this title 
                carry out those projects through the use of those 
                agreements.''.
            (2) Drinking water revolving funds.--Section 1452 of the 
        Safe Drinking Water Act (42 U.S.C. 300j-12) is amended--
                    (A) in subsection (a) (as amended by section 
                7(1)(B)), by adding at the end the following:
            ``(7) Project labor agreements.--Each agreement under this 
        subsection shall require that the State permit recipients of 
        assistance under this section to enter into agreements 
        authorized under section 8(f) of the National Labor Relations 
        Act (29 U.S.C. 158(f)) (commonly known as `project labor 
        agreements') with respect to projects for building or 
        construction carried out with that assistance.''; and
                    (B) in subsection (b)(3)(A)--
                            (i) in clause (ii), by striking ``and'' at 
                        the end;
                            (ii) in clause (iii), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(iv) with respect to projects for 
                        building or construction, will be carried out 
                        through the use of agreements authorized under 
                        section 8(f) of the National Labor Relations 
                        Act (29 U.S.C. 158(f)) (commonly known as 
                        `project labor agreements').''.

SEC. 10. DRINKING WATER ASSISTANCE TO COLONIAS.

    Section 1456 of the Safe Drinking Water Act (42 U.S.C. 300j-16) is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Covered entity.--The term `covered entity' means each 
        of the following:
                    ``(A) A border State.
                    ``(B) A local government with jurisdiction over an 
                eligible community.'';
            (2) in subsection (b)--
                    (A) by striking ``of the Environmental Protection 
                Agency''; and
                    (B) by striking ``border State'' and inserting 
                ``covered entity'';
            (3) by striking subsection (d);
            (4) by redesignating subsection (e) as subsection (d); and
            (5) in subsection (d) (as so redesignated)--
                    (A) by striking ``$25,000,000'' and inserting 
                ``$100,000,000''; and
                    (B) by striking ``1997 through 1999'' and inserting 
                ``2023 through 2027''.
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