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. LAW-
RENCE, 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 Ag-
riculture, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Water Affordability, Transparency, Equity, and Reli-
ability Act of 2017’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
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 govern-
ments. 
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. 
SEC. 2. 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, EQ-
UITY, AND RELIABILITY TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished 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 
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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 appro-
priated to the Trust Fund such amounts as the Sec-
retary from time to time estimates are equal to the 
increase in Federal revenues attributable to the ap-
plication of section 952(e). 
‘‘(2) LIMITATION.—The sum of the amounts 
appropriated under paragraph (1) during any fiscal 
year shall not exceed $34,850,000,000. 
‘‘(c) EXPENDITURES.—Amounts in the Trust Fund 
are available, without further appropriation and without 
fiscal year limitation, for the purposes described in section 
2(c) of the Water Affordability, Transparency, Equity, 
and Reliability Act of 2017.’’. 
(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) IMPOSITION OF TAX.— 
(1) IN GENERAL.—Section 952 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following: 
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‘‘(e) SPECIAL APPLICATION OF SUBPART.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this subpart, the term ‘subpart F in-
come’ means, in the case of any controlled foreign 
corporation, the income of such corporation derived 
from any foreign country. 
‘‘(2) APPLICABLE RULES.—Rules similar to the 
rules under the last sentence of subsection (a) and 
subsection (d) shall apply to this subsection.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years of for-
eign corporations beginning after the date of the en-
actment of this Act, and to taxable years of United 
States shareholders with or within which such tax-
able years of foreign corporations end. 
(c) ALLOCATION OF FUNDS.—The Administrator of 
the Environmental Protection Agency and the Secretary 
of Agriculture shall allocate, for a fiscal year, the funds 
available, at the beginning of such fiscal year, in the Water 
Affordability, Transparency, Equity, and Reliability Trust 
Fund, established by section 9512 of the Internal Revenue 
Code of 1986, as follows: 
(1) 
CLEAN
WATER
PROGRAMS.—Of 
such 
amount, the Administrator shall make available— 
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Consolidated Farm and Rural Development Act (7 
U.S.C. 1926e). 
SEC. 3. REPORT ON AFFORDABILITY, DISCRIMINATION AND 
CIVIL RIGHTS VIOLATIONS, PUBLIC PARTICI-
PATION IN REGIONALIZATION, AND DATA 
COLLECTION. 
(a) STUDY.— 
(1) IN
GENERAL.—The Administrator of the 
Environmental Protection Agency 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 nationwide, including— 
(A) rates for water and sewer services, in-
creases in such rates during the ten-year period 
preceding such study, and water service dis-
connections due to unpaid water service 
charges; and 
(B) the effectiveness of funding under sec-
tion 1452 of the Safe Drinking Water Act and 
under section 601 of the Federal Water Pollu-
tion Control Act for promoting affordable, equi-
table, transparent, and reliable water and sewer 
service. 
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(3) DISCRIMINATION
AND
CIVIL
RIGHTS.—In 
conducting the study under paragraph (1), the Ad-
ministrator, in collaboration with the Civil Rights 
Division of the United States Department of Justice, 
shall study— 
(A) discriminatory practices of water and 
sewer service providers; and 
(B) violations by such service providers 
that receive Federal assistance of civil rights 
under title VI of the Civil Rights Act of 1964 
with regard to equal access to water and sewer 
services. 
(4) PUBLIC
PARTICIPATION
IN
REGIONALIZA-
TION.—In conducting the study under paragraph 
(1), the Administrator shall evaluate efforts to re-
gionalize public water systems, as defined in section 
1401 of the Safe Water Drinking Act, and sewer 
services with respect to public participation in— 
(A) the decision to undergo such regional-
ization; and 
(B) decisionmaking by the board of direc-
tors (or other governing body) of the entity that 
provides, or oversees or coordinates the provi-
sion of, water by the public water systems sub-
ject to such regionalization. 
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(5) DATA
COLLECTION.—In conducting the 
study under paragraph (1), the Administrator shall 
collect information, assess the availability of infor-
mation, and evaluate the methodologies used to col-
lect information, related to— 
(A) people living without water or sewer 
services; 
(B) water service disconnections due to un-
paid water service charges, including disconnec-
tions experienced by households containing chil-
dren, elderly persons, disabled persons, chron-
ically ill persons, or other vulnerable popu-
lations; and 
(C) disparate effects, on the basis of race, 
gender, or socioeconomic status, of water serv-
ice disconnections and the lack of public water 
service. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Administrator of the En-
vironmental Protection Agency 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 such results. 
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SEC. 4. TECHNICAL ASSISTANCE TO RURAL AND SMALL 
MUNICIPALITIES 
AND 
TRIBAL 
GOVERN-
MENTS. 
Section 104(b) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1254(b)) is amended— 
(1) in paragraph (6), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (7), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(8) make grants to nonprofit organizations 
to— 
‘‘(A) provide technical assistance to rural 
and small municipalities and tribal governments 
for the purpose of assisting, in consultation 
with the State in which the assistance is pro-
vided, such municipalities and governments in 
the planning, development, and acquisition of fi-
nancing for projects and activities eligible for 
assistance under section 603(c); 
‘‘(B) provide technical assistance and 
training to rural and small municipalities and 
tribal governments responsible for publicly 
owned treatment works and decentralized 
wastewater treatment systems for the purpose 
of enabling such works and systems to protect 
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water quality and achieve and maintain compli-
ance with the requirements of this Act; and 
‘‘(C) disseminate information to rural and 
small municipalities, tribal governments, and 
municipalities that meet the affordability cri-
teria established under section 603(i)(2) by the 
State in which the municipality is located, that 
pertains to the planning, design, construction, 
and operation of publicly owned treatment 
works and decentralized wastewater treatment 
systems.’’. 
SEC. 5. RESIDENTIAL ONSITE SEWAGE DISPOSAL SYSTEM 
IMPROVEMENT. 
Title II of the Federal Water Pollution Control Act 
(33 U.S.C. 1281 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 222. RESIDENTIAL ONSITE SEWAGE DISPOSAL SYS-
TEMS. 
‘‘Not later than the date that is 1 year after the date 
of the enactment of this section, the Administrator shall 
establish a grant program to make grants to users of a 
septic tank and drainage field for costs associated with 
repairing, replacing, or upgrading such tank and such 
field.’’. 
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SEC. 6. 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 ‘‘$5,000,000 for each of fiscal years 2014 through 
2018’’ and inserting ‘‘$348,500,000 for each fiscal year’’. 
SEC. 7. STATE WATER POLLUTION CONTROL REVOLVING 
FUNDS. 
(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 ‘‘will be made 
to the State with funds to be made available’’ and 
inserting ‘‘were made to the State with funds made 
available for fiscal year 2016’’; 
(2) in paragraph (13), 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 assist-
ance 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’’. 
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(b) PROJECTS AND ACTIVITIES ELIGIBLE FOR AS-
SISTANCE.—Section 603(c) of the Federal Water Pollution 
Control Act (33 U.S.C. 1383(c)) is amended— 
(1) in paragraph (10), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (11)(B), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(12) to any municipality or intermunicipal, 
interstate, or State agency for— 
‘‘(A) purchasing from a willing or unwill-
ing seller a privately owned treatment works; 
and 
‘‘(B) expenses related to canceling a con-
tract for the operation or management of a 
publicly owned treatment works.’’. 
(c) INCREASING THE AMOUNT OF ADDITIONAL SUB-
SIDIZATION BY THE STATE.—Section 603(i)(3)(B) of the 
Federal Water Pollution Control Act (33 U.S.C. 
1383(i)(3)(B)) is amended to read as follows: 
‘‘(B) ADDITIONAL
LIMITATION.—A State 
may 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 pro-
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viding additional subsidization under this sub-
section.’’. 
SEC. 8. 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) in subparagraph (E), by striking 
‘‘The funds under this section shall not be 
used for the acquisition of real property or 
interests therein, unless the acquisition is 
integral to a project authorized by this 
paragraph and the purchase is from a will-
ing seller.’’ and inserting ‘‘The funds may 
also be used for purchasing from a willing 
or unwilling seller a privately owned com-
munity water system, or for the expenses 
related to canceling a contract for the op-
eration or management of a community 
water system.’’; and 
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(B) by adding at the end the following new 
paragraph: 
‘‘(5) EXCEPTION TO PUBLIC OWNERSHIP, OPER-
ATION, AND
MANAGEMENT
REQUIREMENT.—Not-
withstanding 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)(2), by striking ‘‘exceed 30 
percent’’ and inserting ‘‘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 2016’’; 
(4) in subsection (g)(3)— 
(A) in paragraph (B), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (C), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by inserting after subparagraph (C) 
the following: 
‘‘(D) guidance to ensure affordable, equi-
table, transparent and reliable water service 
provision, to provide protections for households 
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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) 
is or may be located, for the purpose of replac-
ing the lead service line with a service line that 
is lead-free (as defined in section 1417(d)).’’. 
SEC. 9. DRINKING WATER GRANT PROGRAMS. 
(a) SCHOOL DRINKING WATER IMPROVEMENT.— 
Part F of the Safe Drinking Water Act (42 U.S.C. 300j– 
21 et seq.) is amended by adding at the end the following: 
‘‘SEC. 1465. FEDERAL ASSISTANCE. 
‘‘Not later than the date that is one year after the 
date of enactment of this section, the Administrator shall 
establish a grant program to make grants to local edu-
cational agencies for costs associated with— 
‘‘(1) installing, repairing, or replacing the infra-
structure necessary to ensure that drinking water 
coolers, drinking water fountains, or bottle filling 
stations at schools under the jurisdiction of the local 
educational agency are lead free; and 
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‘‘(2) testing drinking water at schools under the 
jurisdiction of the local educational agency for the 
presence of lead.’’. 
(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 ‘‘Three’’; 
and 
(2) by striking ‘‘may’’ and inserting ‘‘shall’’. 
SEC. 10. REQUIREMENT FOR THE USE OF AMERICAN MATE-
RIALS IN DRINKING WATER. 
Section 1452(a) of the Safe Drinking Water Act (42 
U.S.C. 300j–12(a)(4)) is amended by striking ‘‘During 
fiscal year 2017, funds’’ and inserting ‘‘Funds’’. 
SEC. 11. LABOR PROVISIONS. 
(a) PREVAILING RATE OF WAGE.—Nothing in this 
Act shall affect the applicability of the requirements relat-
ing 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.—Sec-
tion 602(b) of the Federal Water Pollution Control 
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Act (33 U.S.C. 1382(b)), as amended by section 7, 
is further amended by adding at the end the fol-
lowing: 
‘‘(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 Rela-
tions Act (commonly known as ‘project labor 
agreements’) with respect to projects for build-
ing or construction carried out with such assist-
ance; and 
‘‘(B) ensure that, to the maximum extent 
practicable, recipients of assistance under this 
title carry out such projects through the use of 
such 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), by adding at the end 
the following: 
‘‘(5) 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 
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(commonly known as ‘project labor agreements’) 
with respect to projects for building or construction 
carried out with such assistance.’’; and 
(B) in subsection (b)(3)(A)— 
(i) in clause (ii), by striking ‘‘; and’’ 
and inserting a semicolon; 
(ii) in clause (iii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(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.’’. 
Æ 
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