Clean Water Allotment Modernization Act of 2023

To amend the Federal Water Pollution Control Act to modify certain allotments under that Act, and for other purposes. 1. Short title This Act may be cited as the Clean Water Allotment Modernization Act of 2023 2. Modification to allotments under the Federal Water Pollution Control Act (a) In general Section 205 of the Federal Water Pollution Control Act ( 33 U.S.C. 1285 205. Allotments (a) In general (1) Definitions In this subsection: (A) Buy American oversight The term Buy American oversight (B) Clean watersheds needs survey The term clean watersheds needs survey (C) State The term State (i) each of the 50 States; (ii) the District of Columbia; and (iii) the Commonwealth of Puerto Rico. (D) United States territory The term United States territory (i) American Samoa; (ii) the Commonwealth of the Northern Mariana Islands; (iii) the United States Virgin Islands; and (iv) Guam. (2) Fiscal years 2024 through 2028 (A) Buy American oversight For each of fiscal years 2024 through 2028, of the amounts made available to carry out this section for a fiscal year, the Administrator shall provide an allotment of not less than 0.1 percent for Buy American oversight. (B) Initial allotments to States For each of fiscal years 2024 through 2028, of the amounts made available to carry out this section for a fiscal year, the Administrator shall provide an allotment to each State in an amount that is not less than the amount received by the State under this section in fiscal year 2023 under the Consolidated Appropriations Act, 2023 ( Public Law 117–328 (C) Additional allotments to States Notwithstanding any other provision of this section, for each of fiscal years 2024 through 2028, of the amounts made available to carry out this section for a fiscal year that remain available after application of subparagraph (B), the Administrator shall provide an additional allotment to each State in an amount that is based on the proportion that, as determined using the most recently published annual estimate of the Bureau of the Census— (i) the population of the State; bears to (ii) the total population of all States. (D) Allotments to Indian tribes For each of fiscal years 2024 through 2028, of the amounts made available to carry out this section for a fiscal year, the Administrator shall provide an allotment of 2 percent to Indian tribes. (E) Allotments to United States territories For each of fiscal years 2024 through 2028, of the amounts made available to carry out this section for a fiscal year, the Administrator shall provide an allotment of 1.5 percent to United States territories. (3) Subsequent fiscal years (A) In general For fiscal year 2029 and each fiscal year thereafter, in allotting amounts made available to carry out this section for a fiscal year, the Administrator shall use an updated allotment formula consistent with subparagraph (B). (B) Formula (i) Development The Administrator shall, by regulation, develop a formula— (I) for the calculation of allotments of amounts made available to carry out this section for a fiscal year to States in accordance with clause (ii); and (II) that includes allotments of amounts made available to carry out this section for a fiscal year— (aa) to provide to Indian tribes in accordance with clause (iii); (bb) to provide to United States territories in accordance with clause (iv); and (cc) for Buy American oversight in accordance with clause (v). (ii) Allotments for States In developing the formula required under subparagraph (A) for the allotments described in clause (i)(I), the Administrator shall— (I) base the formula on the needs of the States, as identified in the most recently available clean watersheds needs survey; and (II) ensure that each State receives not less than 1 percent of the amounts made available to carry out this section for a fiscal year. (iii) Allotments for Indian tribes In developing the formula required under subparagraph (A) for the allotments described in clause (i)(II)(aa), the Administrator shall provide 2 percent of the amounts made available to carry out this section for a fiscal year to Indian tribes. (iv) Allotments for United States territories In developing the formula required under subparagraph (A) for the allotments described in clause (i)(II)(bb), the Administrator shall provide 1.5 percent of the amounts made available to carry out this section for a fiscal year to United States territories. (v) Buy American oversight In developing the formula required under subparagraph (A) for the allotments described in clause (i)(II)(cc), the Administrator shall ensure that 0.1 percent of the amounts made available to carry out this section for a fiscal year are used for Buy American oversight. (C) Timeline (i) Initial formula The Administrator shall develop the initial formula required under subparagraph (A) by not later than September 30, 2028, to ensure that the formula is in effect for fiscal year 2029. (ii) Updates required After developing the formula required under subparagraph (A) by the date described in clause (i), the Administrator shall update that formula by not later than the date that is 1 year after the date on which the Administrator submits a new clean watersheds needs survey to Congress. (4) Savings provision To the extent practicable, the Administrator shall continue developing the allotment formula under paragraph (2) until the date on which the Administrator submits to Congress a new clean watersheds needs survey for purposes of the formula required under paragraph (3)(A). . (b) No effect on infrastructure funds Nothing in this section or an amendment made by this section affects— (1) amounts made available to carry out section 205 of the Federal Water Pollution Control Act ( 33 U.S.C. 1285 33 U.S.C. 1381 et seq. Public Law 117–58 (2) any allocations of those amounts. 3. Clean watersheds needs survey Section 516(b) of the Federal Water Pollution Control Act ( 33 U.S.C. 1375(b) (1) by striking paragraph (2); (2) in paragraph (1)— (A) in the third sentence, by striking Whenever the Administrator, (3) Submission to Congress Whenever the Administrator, ; and (B) in the second sentence, by striking The Administrator shall (2) Deadline The Administrator shall ; (3) by striking the subsection designation and all that follows through The Administrator, (b) Estimates; studies; analyses (1) In general The Administrator, ; and (4) in paragraph (1) (as so amended)— (A) by striking ; and (D) a comprehensive ; and (D) a comprehensive ; (B) by striking (C) a comprehensive (C) a comprehensive ; (C) by striking (B) a detailed estimate in each of the States; (B) a detailed estimate, biennially revised, of the cost of construction of all planned publicly owned treatment works in each State, and all needed publicly owned treatment works in each State, which shall include a detailed estimate of— (i) the cost of construction for rehabilitating or upgrading all existing publicly owned treatment works (excluding any pipe or other device or system for the conveyance of wastewater) every 20 years, including the cost of implementing measures necessary to address the resilience and sustainability of publicly owned treatment works to manmade or natural disasters; and (ii) the cost of construction for replacing 10 percent of existing publicly owned pipes and other devices and systems for the conveyance of wastewater to publicly owned treatment works over the 20-year period following the date of the estimate; ; and (D) by striking shall make (A) a detailed estimate shall make— (A) a detailed estimate . 4. Additional eligible use of allotted funds Section 603 of the Federal Water Pollution Control Act ( 33 U.S.C. 1383 (k) Additional eligible use of allotted funds Notwithstanding any other provision of this section, each fiscal year, a State may reserve up to 0.5 percent of the amounts allotted to the State under this title and section 205(m) for that fiscal year to carry out activities necessary to create the detailed estimate under section 516(b)(1)(B). .

Summary: Clean Water Allotment Modernization Act of 2023 This bill revises the formula the Environmental Protection Agency (EPA) uses to determine how to distribute funds from the Clean Water State Revolving Fund (SRF) program. Under the program, the EPA allocates funding to states for water quality infrastructure projects, such as wastewater systems and stormwater management projects. In FY2024-FY2028, the EPA must provide an initial allotment to each state that is equal to the amount the state received in FY2023. The EPA must also provide an additional allotment to each state that is based on its share of the U.S. population. In FY2029 and each subsequent fiscal year, the EPA must use an updated allotment formula, which is based on the needs of states as identified in the most recently available clean watersheds needs survey. Beginning in FY2024, the formula must also provide allotments for Indian tribes and territories. In addition, the formula must provide an allotment for EPA's oversight of SRF projects to ensure they use American iron and steel.