I 

115TH CONGRESS 

1ST SESSION H. R. 1673 

To establish a trust fund to provide for adequate funding for water and 

sewer infrastructure, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 22, 2017 

Mr. CONYERS (for himself, Mr. GRIJALVA, Ms. JACKSON LEE, Mrs. LAWRENCE, Ms. MCCOLLUM, Mr. POCAN, Mr. EVANS, Mr. ELLISON, Ms. 

MOORE, Ms. NORTON, Ms. GABBARD, Mrs. BUSTOS, Ms. JAYAPAL, Mr. 

JOHNSON of Georgia, Ms. SCHAKOWSKY, Mr. MCGOVERN, Ms. 

MICHELLE LUJAN GRISHAM of New Mexico, Mr. WELCH, Mr. HUFFMAN, 

Mr. NADLER, Ms. CLARKE of New York, Mr. RASKIN, and Mr. BEN RAY

LUJA ́N of New Mexico) introduced the following bill; which was referred 

to the Committee on Transportation and Infrastructure, and in addition 

to the Committees on Energy and Commerce, Ways and Means, and Agriculture, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To establish a trust fund to provide for adequate funding 

for water and sewer infrastructure, 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Water Affordability, Transparency, Equity, and Reli4 ability Act of 2017’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Water Affordability, Transparency, Equity, and Reliability Trust Fund. 

Sec. 3. Report on affordability, discrimination and civil rights violations, public 

participation in regionalization, and data collection. 

Sec. 4. Technical assistance to rural and small municipalities and tribal governments. 

Sec. 5. Residential onsite sewage disposal system improvement. 

Sec. 6. Household water well systems. 

Sec. 7. State water pollution control revolving funds. 

Sec. 8. Use of State revolving loan funds under the Safe Drinking Water Act. 

Sec. 9. Drinking water grant programs. 

Sec. 10. Requirement for the use of American materials in drinking water. 

Sec. 11. Labor provisions. 

7 SEC. 2. WATER AFFORDABILITY, TRANSPARENCY, EQUITY, 

8 AND RELIABILITY TRUST FUND. 

9 (a) ESTABLISHMENT.— 

10 (1) IN GENERAL.—Subchapter A of chapter 98 

11 of the Internal Revenue Code of 1986 is amended by 

12 adding at the end the following: 

13 ‘‘SEC. 9512. WATER AFFORDABILITY, TRANSPARENCY, EQ14 UITY, AND RELIABILITY TRUST FUND. 

15 ‘‘(a) CREATION OF TRUST FUND.—There is estab16 lished in the Treasury of the United States a trust fund 

17 to be known as the ‘Water Affordability, Transparency, 

18 Equity, and Reliability Trust Fund’ (referred to in this 

19 section as the ‘Trust Fund’), consisting of such amounts 


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1 as may be appropriated or credited to such Trust Fund 

2 as provided in this section or section 9602(b). 

3 ‘‘(b) TRANSFERS TO FUND.— 

4 ‘‘(1) IN GENERAL.—There are hereby appro5 priated to the Trust Fund such amounts as the Sec6 retary from time to time estimates are equal to the 

7 increase in Federal revenues attributable to the ap8 plication of section 952(e). 

9 ‘‘(2) LIMITATION.—The sum of the amounts 

10 appropriated under paragraph (1) during any fiscal 

11 year shall not exceed $34,850,000,000. 

12 ‘‘(c) EXPENDITURES.—Amounts in the Trust Fund 

13 are available, without further appropriation and without 

14 fiscal year limitation, for the purposes described in section 

15 2(c) of the Water Affordability, Transparency, Equity, 

16 and Reliability Act of 2017.’’. 

17 (2) CLERICAL AMENDMENT.—The table of 

18 parts for subchapter A of chapter 98 of such Code 

19 is amended by inserting after the item relating to 

20 section 9511 the following new item: 

‘‘Sec. 9512. Water Affordability, Transparency, Equity, and Reliability Trust 

Fund.’’. 

21 (b) IMPOSITION OF TAX.— 

22 (1) IN GENERAL.—Section 952 of the Internal 

23 Revenue Code of 1986 is amended by adding at the 

24 end the following: 


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1 ‘‘(e) SPECIAL APPLICATION OF SUBPART.— 

2 ‘‘(1) IN GENERAL.—Notwithstanding any other 

3 provision of this subpart, the term ‘subpart F in4 come’ means, in the case of any controlled foreign 

5 corporation, the income of such corporation derived 

6 from any foreign country. 

7 ‘‘(2) APPLICABLE RULES.—Rules similar to the 

8 rules under the last sentence of subsection (a) and 

9 subsection (d) shall apply to this subsection.’’. 

10 (2) EFFECTIVE DATE.—The amendment made 

11 by this subsection shall apply to taxable years of for12 eign corporations beginning after the date of the en13 actment of this Act, and to taxable years of United 

14 States shareholders with or within which such tax15 able years of foreign corporations end. 

16 (c) ALLOCATION OF FUNDS.—The Administrator of 

17 the Environmental Protection Agency and the Secretary 

18 of Agriculture shall allocate, for a fiscal year, the funds 

19 available, at the beginning of such fiscal year, in the Water 

20 Affordability, Transparency, Equity, and Reliability Trust 

21 Fund, established by section 9512 of the Internal Revenue 

22 Code of 1986, as follows: 

23 (1) CLEAN WATER PROGRAMS.—Of such 

24 amount, the Administrator shall make available— 


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1 (A) 0.5 percent for making grants under 

2 section 104(b)(8) of the Federal Water Pollu3 tion Control Act; 

4 (B) 1.5 percent for making grants under 

5 section 106 of such Act (33 U.S.C. 1256); 

6 (C) 2.5 percent for making grants under 

7 section 222 of such Act; 

8 (D) 2.5 percent for making grants under 

9 section 319 of such Act (33 U.S.C. 1329); and 

10 (E) 45 percent for making capitalization 

11 grants under section 601 of such Act (33 

12 U.S.C. 1381). 

13 (2) SAFE DRINKING WATER FUNDING.—Of such 

14 amount, the Administrator shall make available— 

15 (A) 0.5 percent for providing technical as16 sistance under section 1442(e) of the Safe 

17 Drinking Water Act (42 U.S.C. 300j–1(e)); 

18 (B) 43.5 percent for making capitalization 

19 grants under section 1452 of such Act (42 

20 U.S.C. 300j–12); and 

21 (C) 3 percent for making grants under sec22 tion 1465 of such Act. 

23 (3) HOUSEHOLD WATER WELL SYSTEMS.—Of 

24 such amount, the Secretary shall make available 1 

25 percent for making grants under section 306E of the 


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1 Consolidated Farm and Rural Development Act (7 

2 U.S.C. 1926e). 

3 SEC. 3. REPORT ON AFFORDABILITY, DISCRIMINATION AND 

4 CIVIL RIGHTS VIOLATIONS, PUBLIC PARTICI5 PATION IN REGIONALIZATION, AND DATA 

6 COLLECTION. 

7 (a) STUDY.— 

8 (1) IN GENERAL.—The Administrator of the 

9 Environmental Protection Agency shall conduct a 

10 study on water and sewer services, in accordance 

11 with this subsection. 

12 (2) AFFORDABILITY.—In conducting the study 

13 under paragraph (1), the Administrator shall study 

14 water affordability nationwide, including— 

15 (A) rates for water and sewer services, in16 creases in such rates during the ten-year period 

17 preceding such study, and water service dis18 connections due to unpaid water service 

19 charges; and 

20 (B) the effectiveness of funding under sec21 tion 1452 of the Safe Drinking Water Act and 

22 under section 601 of the Federal Water Pollu23 tion Control Act for promoting affordable, equi24 table, transparent, and reliable water and sewer 

25 service. 


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1 (3) DISCRIMINATION AND CIVIL RIGHTS.—In 

2 conducting the study under paragraph (1), the Ad3 ministrator, in collaboration with the Civil Rights 

4 Division of the United States Department of Justice, 

5 shall study— 

6 (A) discriminatory practices of water and 

7 sewer service providers; and 

8 (B) violations by such service providers 

9 that receive Federal assistance of civil rights 

10 under title VI of the Civil Rights Act of 1964 

11 with regard to equal access to water and sewer 

12 services. 

13 (4) PUBLIC PARTICIPATION IN REGIONALIZA14 TION.—In conducting the study under paragraph 

15 (1), the Administrator shall evaluate efforts to re16 gionalize public water systems, as defined in section 

17 1401 of the Safe Water Drinking Act, and sewer 

18 services with respect to public participation in— 

19 (A) the decision to undergo such regional20 ization; and 

21 (B) decisionmaking by the board of direc22 tors (or other governing body) of the entity that 

23 provides, or oversees or coordinates the provi24 sion of, water by the public water systems sub25 ject to such regionalization. 


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1 (5) DATA COLLECTION.—In conducting the 

2 study under paragraph (1), the Administrator shall 

3 collect information, assess the availability of infor4 mation, and evaluate the methodologies used to col5 lect information, related to— 

6 (A) people living without water or sewer 

7 services; 

8 (B) water service disconnections due to un9 paid water service charges, including disconnec10 tions experienced by households containing chil11 dren, elderly persons, disabled persons, chron12 ically ill persons, or other vulnerable popu13 lations; and 

14 (C) disparate effects, on the basis of race, 

15 gender, or socioeconomic status, of water serv16 ice disconnections and the lack of public water 

17 service. 

18 (b) REPORT.—Not later than 1 year after the date 

19 of the enactment of this Act, the Administrator of the En20 vironmental Protection Agency shall submit to Congress 

21 a report that contains— 

22 (1) the results of the study conducted under 

23 subsection (a)(1); and 

24 (2) recommendations for utility companies, 

25 Federal agencies, and States relating to such results. 


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1 SEC. 4. TECHNICAL ASSISTANCE TO RURAL AND SMALL 

2 MUNICIPALITIES AND TRIBAL GOVERN3 MENTS. 

4 Section 104(b) of the Federal Water Pollution Con5 trol Act (33 U.S.C. 1254(b)) is amended— 

6 (1) in paragraph (6), by striking ‘‘and’’ at the 

7 end; 

8 (2) in paragraph (7), by striking the period at 

9 the end and inserting ‘‘; and’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(8) make grants to nonprofit organizations 

12 to— 

13 ‘‘(A) provide technical assistance to rural 

14 and small municipalities and tribal governments 

15 for the purpose of assisting, in consultation 

16 with the State in which the assistance is pro17 vided, such municipalities and governments in 

18 the planning, development, and acquisition of fi19 nancing for projects and activities eligible for 

20 assistance under section 603(c); 

21 ‘‘(B) provide technical assistance and 

22 training to rural and small municipalities and 

23 tribal governments responsible for publicly 

24 owned treatment works and decentralized 

25 wastewater treatment systems for the purpose 

26 of enabling such works and systems to protect 


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1 water quality and achieve and maintain compli2 ance with the requirements of this Act; and 

3 ‘‘(C) disseminate information to rural and 

4 small municipalities, tribal governments, and 

5 municipalities that meet the affordability cri6 teria established under section 603(i)(2) by the 

7 State in which the municipality is located, that 

8 pertains to the planning, design, construction, 

9 and operation of publicly owned treatment 

10 works and decentralized wastewater treatment 

11 systems.’’. 

12 SEC. 5. RESIDENTIAL ONSITE SEWAGE DISPOSAL SYSTEM 

13 IMPROVEMENT. 

14 Title II of the Federal Water Pollution Control Act 

15 (33 U.S.C. 1281 et seq.) is amended by adding at the end 

16 the following: 

17 ‘‘SEC. 222. RESIDENTIAL ONSITE SEWAGE DISPOSAL SYS18 TEMS. 

19 ‘‘Not later than the date that is 1 year after the date 

20 of the enactment of this section, the Administrator shall 

21 establish a grant program to make grants to users of a 

22 septic tank and drainage field for costs associated with 

23 repairing, replacing, or upgrading such tank and such 

24 field.’’. 


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1 SEC. 6. HOUSEHOLD WATER WELL SYSTEMS. 

2 Section 306E(d) of the Consolidated Farm and Rural 

3 Development Act (7 U.S.C. 1926e(d)) is amended by 

4 striking ‘‘$5,000,000 for each of fiscal years 2014 through 

5 2018’’ and inserting ‘‘$348,500,000 for each fiscal year’’. 

6 SEC. 7. STATE WATER POLLUTION CONTROL REVOLVING 

7 FUNDS. 

8 (a) SPECIFIC REQUIREMENTS.—Section 602(b) of 

9 the Federal Water Pollution Control Act (33 U.S.C. 

10 1382(b)) is amended— 

11 (1) in paragraph (2), by striking ‘‘will be made 

12 to the State with funds to be made available’’ and 

13 inserting ‘‘were made to the State with funds made 

14 available for fiscal year 2016’’; 

15 (2) in paragraph (13), by striking ‘‘and’’ at the 

16 end; 

17 (3) in paragraph (14), by striking the period at 

18 the end and inserting a semicolon; and 

19 (4) by adding at the end the following: 

20 ‘‘(15) the State will not provide financial assist21 ance using amounts from the fund for any project 

22 that will provide substantial direct benefits to new 

23 communities, lots, or subdivisions, other than a 

24 project to construct an advanced decentralized 

25 wastewater system; and’’. 


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1 (b) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS2 SISTANCE.—Section 603(c) of the Federal Water Pollution 

3 Control Act (33 U.S.C. 1383(c)) is amended— 

4 (1) in paragraph (10), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (11)(B), by striking the period 

7 at the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(12) to any municipality or intermunicipal, 

10 interstate, or State agency for— 

11 ‘‘(A) purchasing from a willing or unwill12 ing seller a privately owned treatment works; 

13 and 

14 ‘‘(B) expenses related to canceling a con15 tract for the operation or management of a 

16 publicly owned treatment works.’’. 

17 (c) INCREASING THE AMOUNT OF ADDITIONAL SUB18 SIDIZATION BY THE STATE.—Section 603(i)(3)(B) of the 

19 Federal Water Pollution Control Act (33 U.S.C. 

20 1383(i)(3)(B)) is amended to read as follows: 

21 ‘‘(B) ADDITIONAL LIMITATION.—A State 

22 may use not less than 50 percent of the total 

23 amount received by the State in capitalization 

24 grants under this title for a fiscal year for proVerDate Sep 11 2014 01:36 Mar 25, 2017 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1673.IH H1673

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1 viding additional subsidization under this sub2 section.’’. 

3 SEC. 8. USE OF STATE REVOLVING LOAN FUNDS UNDER 

4 THE SAFE DRINKING WATER ACT. 

5 Section 1452 of the Safe Drinking Water Act (42 

6 U.S.C. 300j–12) is amended— 

7 (1) in subsection (a)— 

8 (A) in paragraph (2)— 

9 (i) in subparagraph (A), by inserting 

10 ‘‘publicly owned, operated, and managed’’ 

11 before ‘‘community water systems’’; and 

12 (ii) in subparagraph (E), by striking 

13 ‘‘The funds under this section shall not be 

14 used for the acquisition of real property or 

15 interests therein, unless the acquisition is 

16 integral to a project authorized by this 

17 paragraph and the purchase is from a will18 ing seller.’’ and inserting ‘‘The funds may 

19 also be used for purchasing from a willing 

20 or unwilling seller a privately owned com21 munity water system, or for the expenses 

22 related to canceling a contract for the op23 eration or management of a community 

24 water system.’’; and 


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1 (B) by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) EXCEPTION TO PUBLIC OWNERSHIP, OPER4 ATION, AND MANAGEMENT REQUIREMENT.—Not5 withstanding paragraph (2)(A), public water systems 

6 that regularly serve fewer than 10,000 persons, and 

7 which are not owned, operated, or managed by any 

8 person who owns, operates, or manages any other 

9 public water system, may receive assistance under 

10 this section.’’; 

11 (2) in subsection (d)(2), by striking ‘‘exceed 30 

12 percent’’ and inserting ‘‘be less than 50 percent’’; 

13 (3) in subsection (e), by striking ‘‘to be made 

14 to the State’’ and inserting ‘‘that was made to the 

15 State in fiscal year 2016’’; 

16 (4) in subsection (g)(3)— 

17 (A) in paragraph (B), by striking ‘‘and’’ at 

18 the end; 

19 (B) in paragraph (C), by striking the pe20 riod at the end and inserting ‘‘; and’’; and 

21 (C) by inserting after subparagraph (C) 

22 the following: 

23 ‘‘(D) guidance to ensure affordable, equi24 table, transparent and reliable water service 

25 provision, to provide protections for households 


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1 facing service disconnection due to unpaid 

2 water service charges, and to promote universal 

3 equal access to water services.’’; and 

4 (5) in subsection (k)(1), by adding at the end 

5 the following: 

6 ‘‘(E) Provide assistance in the form of a 

7 grant to owners of private property on which a 

8 lead service line (as defined in section 1459B) 

9 is or may be located, for the purpose of replac10 ing the lead service line with a service line that 

11 is lead-free (as defined in section 1417(d)).’’. 

12 SEC. 9. DRINKING WATER GRANT PROGRAMS. 

13 (a) SCHOOL DRINKING WATER IMPROVEMENT.— 

14 Part F of the Safe Drinking Water Act (42 U.S.C. 300j– 

15 21 et seq.) is amended by adding at the end the following: 

16 ‘‘SEC. 1465. FEDERAL ASSISTANCE. 

17 ‘‘Not later than the date that is one year after the 

18 date of enactment of this section, the Administrator shall 

19 establish a grant program to make grants to local edu20 cational agencies for costs associated with— 

21 ‘‘(1) installing, repairing, or replacing the infra22 structure necessary to ensure that drinking water 

23 coolers, drinking water fountains, or bottle filling 

24 stations at schools under the jurisdiction of the local 

25 educational agency are lead free; and 


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1 ‘‘(2) testing drinking water at schools under the 

2 jurisdiction of the local educational agency for the 

3 presence of lead.’’. 

4 (b) TRIBAL DRINKING WATER.—Section 1452(i)(1) 

5 of the Safe Drinking Water Act (42 U.S.C. 300j–12(i)(1)) 

6 is amended, in the first sentence— 

7 (1) by striking ‘‘1 1/2’’ and inserting ‘‘Three’’; 

8 and 

9 (2) by striking ‘‘may’’ and inserting ‘‘shall’’. 

10 SEC. 10. REQUIREMENT FOR THE USE OF AMERICAN MATE11 RIALS IN DRINKING WATER. 

12 Section 1452(a) of the Safe Drinking Water Act (42 

13 U.S.C. 300j–12(a)(4)) is amended by striking ‘‘During 

14 fiscal year 2017, funds’’ and inserting ‘‘Funds’’. 

15 SEC. 11. LABOR PROVISIONS. 

16 (a) PREVAILING RATE OF WAGE.—Nothing in this 

17 Act shall affect the applicability of the requirements relat18 ing to labor standards of sections 513 and 602(b)(6) of 

19 the Federal Water Pollution Control Act (33 U.S.C. 1372, 

20 1382(b)(6)) and section 1450(e) of the Safe Drinking 

21 Water Act (42 U.S.C. 300j–9(e)) to projects carried out 

22 under those Acts. 

23 (b) PROJECT LABOR AGREEMENTS.— 

24 (1) CLEAN WATER REVOLVING FUNDS.—Sec25 tion 602(b) of the Federal Water Pollution Control 


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1 Act (33 U.S.C. 1382(b)), as amended by section 7, 

2 is further amended by adding at the end the fol3 lowing: 

4 ‘‘(16) the State will— 

5 ‘‘(A) permit recipients of assistance under 

6 this title to enter into agreements authorized 

7 under section 8(f) of the National Labor Rela8 tions Act (commonly known as ‘project labor 

9 agreements’) with respect to projects for build10 ing or construction carried out with such assist11 ance; and 

12 ‘‘(B) ensure that, to the maximum extent 

13 practicable, recipients of assistance under this 

14 title carry out such projects through the use of 

15 such agreements.’’. 

16 (2) DRINKING WATER REVOLVING FUNDS.— 

17 Section 1452 of the Safe Drinking Water Act (42 

18 U.S.C. 300j–12) is amended— 

19 (A) in subsection (a), by adding at the end 

20 the following: 

21 ‘‘(5) PROJECT LABOR AGREEMENTS.—Each 

22 agreement under this subsection shall require that 

23 the State permit recipients of assistance under this 

24 section to enter into agreements authorized under 

25 section 8(f) of the National Labor Relations Act 


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1 (commonly known as ‘project labor agreements’) 

2 with respect to projects for building or construction 

3 carried out with such assistance.’’; and 

4 (B) in subsection (b)(3)(A)— 

5 (i) in clause (ii), by striking ‘‘; and’’ 

6 and inserting a semicolon; 

7 (ii) in clause (iii), by striking the pe8 riod at the end and inserting ‘‘; and’’; and 

9 (iii) by adding at the end the fol10 lowing: 

11 ‘‘(iv) with respect to projects for 

12 building or construction, will be carried out 

13 through the use of agreements authorized 

14 under section 8(f) of the National Labor 

15 Relations Act.’’. 

Æ 


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