Environmental Protection Agency (referred to in this sec-
tion as the ‘‘Administrator’’) shall establish a grant pro-
gram (referred to in this section as the ‘‘program’’) to help 
communities that serve environmentally at-risk households 
and low-income households (as those terms are defined in 
section 202) afford operations and maintenance costs of 
drinking water treatment. 
(b) ELIGIBLE USES.—A grant provided under the 
program shall be used— 
(1) to help water systems provide adequate and 
affordable supplies of safe drinking water in both 
the near- and long-term future; and 
(2) to provide support to help public water sys-
tems (as defined in section 1401 of the Safe Drink-
ing Water Act (42 U.S.C. 300f) provide safe and af-
fordable drinking water. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out the program 
$150,000,000 for each of fiscal years 2020 through 2024. 
TITLE III—INVESTMENTS IN NA-
TIONWIDE 
WATER 
INFRA-
STRUCTURE 
AND 
SUSTAIN-
ABILITY 
SEC. 301. FINDINGS. 
Congress finds that— 
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(1) water is an essential resource for farms, cit-
ies, and the environment; 
(2) in order to responsibly and sustainably 
manage water, all different types of water, including 
water that is stored, drinking water, flood waters, 
wastewater, recycled water, and other types, should 
be taken into account; 
(3) according to a survey by the Government 
Accountability Office of State water managers, at 
least 40 States anticipate water shortages by 2024, 
pointing to the need to conserve and sustainably 
manage water; 
(4) climate change is likely to increase the vul-
nerability of water supplies for communities and the 
environment by— 
(A) increasing the frequency and mag-
nitude of droughts and extreme precipitation 
events; 
(B) increasing air temperatures; and 
(C) changing the patterns and volume of 
precipitation; 
(5) the water infrastructure of the United 
States needs additional investment given the age of 
the infrastructure and emerging issues, such as cli-
mate change; 
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(6) according to the American Society of Civil 
Engineers, more than $105,000,000,000 is needed 
for drinking water and wastewater investment needs; 
(7) a diverse portfolio of water management, 
storage, recycling, and reuse techniques can help to 
sustainably and responsibly manage water in the 
United States; 
(8) reducing water diversions from rivers and 
lakes is important to sustain— 
(A) native fish and wildlife; and 
(B) the communities and Native American 
tribes that depend on a healthy environment; 
(9) a sustainable water supply relies on— 
(A) the ability for environmentally sound 
water storage projects; 
(B) protection of clean water programs; 
(C) financing for new technologies; 
(D) developments and funding for water 
recycling and reuse projects; 
(E) improvements to wastewater systems 
and flood management; 
(F) increased conservation programs and 
water efficiency; and 
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(G) instream flows of adequate quality and 
quantity that protect native fish and wildlife 
and the environment; 
(10) the 16th Clean Watersheds Needs Survey 
of the Environmental Protection Agency shows a 
total 
20-year 
capital 
improvement 
need 
of 
$271,000,000 to address the water quality objectives 
of the Federal Water Pollution Control Act (33 
U.S.C. 1251 et seq.); 
(11) more than 21,000,000 households lack ac-
cess to a sewer system and instead rely on expensive 
septic tanks or cesspools; 
(12) more than 1,700,000 households lack ac-
cess to basic plumbing in the United States; and 
(13) exposure to raw sewage inside or outside 
of the home due to inadequate or failing wastewater 
systems is a severe public health risk. 
SEC. 302. RECLAMATION INFRASTRUCTURE FINANCE AND 
INNOVATION PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
(referred to in this section as the ‘‘Secretary’’) shall estab-
lish and carry out a pilot program under which the Sec-
retary shall provide to eligible entities described in sub-
section (c) financial assistance in accordance with this sec-
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tion to carry out eligible projects described in subsection 
(b). 
(b) ELIGIBLE PROJECTS AND ELIGIBLE PROJECT 
COSTS.— 
(1) IN GENERAL.—A project eligible to receive 
assistance under the pilot program under this sec-
tion is a water supply project described in paragraph 
(2) that, as determined by the Secretary— 
(A) is located in— 
(i) the State of Alaska; 
(ii) the State of Hawaii; or 
(iii) a Reclamation State (as defined 
in section 4014 of the Water Infrastruc-
ture Improvements for the Nation Act (43 
U.S.C. 390b note; Public Law 114–322)); 
(B) would contribute directly or indirectly 
(including through groundwater recharge) to a 
safe, adequate water supply for domestic, agri-
cultural, environmental, municipal, or industrial 
use; 
(C) complies with all applicable State and 
Federal laws; 
(D) would provide net ecosystem benefits 
in excess of required environmental mitigation 
measures or compliance obligations pursuant to 
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State and Federal law, as described in para-
graph (6); 
(E) uses natural infrastructure and na-
ture-based solutions where practicable; 
(F) is economically feasible; and 
(G) is otherwise eligible for assistance 
under this section. 
(2) WATER SUPPLY PROJECTS.—A water sup-
ply project referred to in paragraph (1) is— 
(A) a project for the reclamation and reuse 
of municipal, industrial, domestic, and agricul-
tural 
wastewater, 
and 
naturally 
impaired 
ground water, which the Secretary, acting 
through the Commissioner of Reclamation, is 
authorized to undertake; 
(B) any water infrastructure project not 
specifically authorized by law that— 
(i) the Secretary determines, through 
the completion of an appraisal investiga-
tion and feasibility study, would contribute 
to a safe, adequate water supply for do-
mestic, agricultural, environmental, munic-
ipal, or industrial use; and 
(ii) is otherwise eligible for assistance 
under this section; 
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(3) ELIGIBLE
PROJECT
COSTS.—An eligible 
project cost that is eligible for assistance under this 
section— 
(A) shall be limited to a nonreimbursable 
cost for elements of a project that would 
achieve public benefits under the reclamation 
laws; and 
(B) includes the cost of— 
(i) development-phase activities, in-
cluding planning, feasibility analysis, rev-
enue forecasting, environmental review, 
permitting, transaction costs, preliminary 
engineering and design work, and other 
preconstruction activities; 
(ii) construction, reconstruction, reha-
bilitation, and replacement activities; 
(iii) the acquisition of real property 
(including water rights, land relating to 
the eligible project, and improvements to 
land), environmental mitigation, construc-
tion contingencies, and acquisition of 
equipment; 
(iv) capitalized interest necessary to 
meet market requirements, reasonably re-
quired reserve funds, capital issuance ex-
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penses, and other carrying costs during 
construction; 
(v) refinancing interim construction 
funding, long-term project obligations, or a 
secured loan, loan guarantee, or other 
credit enhancement made under this sec-
tion; 
(vi) refinancing long-term project obli-
gations or Federal credit instruments, if 
that refinancing provides additional fund-
ing capacity for the completion, enhance-
ment, or expansion of any eligible project 
selected for assistance under this section; 
(vii) reimbursement or success pay-
ments to any public or private entity that 
achieves predetermined outcomes on a pay- 
for-performance or pay-for-success basis; 
and 
(viii) grants, loans, or credit enhance-
ment for community development financial 
institutions, green banks, and other finan-
cial intermediaries providing ongoing fi-
nance for eligible projects that meet the 
purposes of this section. 
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(4) 
SMALL
COMMUNITY
PROJECTS.—For 
projects eligible for assistance under this section and 
section 5028(a)(2)(B) of the Water Resources Re-
form and Development Act of 2014 (33 U.S.C. 
3907(a)(2)(B)), the Secretary may assist applicants 
in combining one or more projects into a single ap-
plication in order to meet the minimum project cost 
of $5,000,000 required under that section. 
(5) COST-SHARING
REQUIREMENT; 
CERTAIN 
USES.— 
(A) COST SHARING.—The Federal share of 
the eligible costs of a water supply project 
under this section shall be not more than 25 
percent. 
(B) CERTAIN
USES.—A water supply 
project that receives assistance under this sec-
tion may use not more than 5 percent of 
amounts made available under this section to 
carry out activities to demonstrate progress to-
ward the goals of the water supply project. 
(6) DETERMINATION OF NET ECOSYSTEM BEN-
EFITS.— 
(A) DRAFT REPORT.— 
(i) IN
GENERAL.—Using the best 
available scientific information and data, 
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the Director of the United States Fish and 
Wildlife Service shall prepare a draft re-
port that evaluates the ecosystem impacts 
and benefits of each proposed water supply 
project being considered for financial as-
sistance under this section. 
(ii) COORDINATION.—A draft report 
required under clause (i) shall be prepared 
in coordination with the head of the State 
agency with jurisdiction over the fish and 
wildlife resources of the State in which the 
water supply project is proposed to be car-
ried out. 
(iii) 
APPLICABLE
LAW; 
REQUIRE-
MENTS.—A draft report prepared under 
clause (i) shall— 
(I) meet the requirements of sec-
tion 2(b) of the Fish and Wildlife Co-
ordination Act (16 U.S.C. 662(b)); 
(II) quantify and estimate the 
ecosystem benefits and adverse im-
pacts to native fish and wildlife from 
the proposed water supply project; 
and 
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(III) evaluate whether the eco-
system benefits of the proposed water 
supply project are likely to exceed the 
ecosystem impacts of the proposed 
water supply project. 
(iv) REVIEW; AVAILABILITY.—The Di-
rector of the United States Fish and Wild-
life Service shall ensure that a draft report 
prepared under clause (i) is— 
(I) reviewed by independent sci-
entists; and 
(II) made available for a public 
review and comment period of not less 
than 30 days. 
(B) FINAL REPORT.— 
(i) IN GENERAL.—The Director of the 
United States Fish and Wildlife Service 
shall prepare a final report based on the 
applicable draft report prepared under sub-
paragraph (A)(i), after considering the re-
sults of the independent scientific peer re-
view and public comment processes under 
subparagraph (A)(iv). 
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(ii) TRANSMISSION; AVAILABILITY.—A 
final report prepared under clause (i) shall 
be— 
(I) transmitted to— 
(aa) the project applicant; 
(bb) the relevant State agen-
cy; and 
(cc) relevant congressional 
committees; and 
(II) made available to the public. 
(iii) DETERMINATION.—If a final re-
port prepared under clause (i) determines 
that the water supply project provides net 
ecosystem benefits, the proposed water 
supply project shall be eligible for financial 
assistance under this section. 
(iv) RECOMMENDATIONS.—If a final 
report determines that the proposed water 
supply project fails to provide a net eco-
system improvement, the final report may 
identify potential recommendations to re-
duce adverse environmental impacts and 
improve environmental benefits of the pro-
posed water supply project. 
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(v) FINAL AGENCY ACTION.—A final 
report prepared under clause (i) shall be 
considered to be a final agency action for 
purposes of section 704 of title 5, United 
States Code. 
(vi) JUDICIAL
REVIEW.—A final re-
port prepared under clause (i) shall be sub-
ject to review in the Federal district court 
of the State in which the project is pro-
posed to be constructed if a petition for re-
view is filed with the court not later than 
180 days after the date on which the final 
report is transmitted under clause (ii). 
(c) ELIGIBLE ENTITIES.—The following entities are 
eligible to receive assistance under this section: 
(1) An entity described in section 5025 of the 
Water Resources Reform and Development Act of 
2014 (33 U.S.C. 3904). 
(2) A conservancy district, Reclamation district, 
or irrigation district. 
(3) A canal company or mutual water company. 
(4) A water users’ association. 
(5) An agency established by an interstate com-
pact. 
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(6) Any other individual or entity that has the 
capacity to contract with the United States under 
the reclamation laws. 
(d) REQUIREMENTS.— 
(1) PROJECT SELECTION.—In selecting eligible 
projects to receive assistance under the pilot pro-
gram under this section, the Secretary shall ensure 
diversity with respect to— 
(A) project type; and 
(B) geographical location within the States 
referred to in subsection (b)(1)(A). 
(2) PRIORITY.—In selecting eligible projects to 
receive assistance under this section, the Secretary 
shall prioritize projects that— 
(A) would benefit— 
(i) low-income communities; or 
(ii)(I) communities particularly at-risk 
to climate change; and 
(II) environmentally at-risk commu-
nities; 
(B) to the maximum extent practicable, in-
corporate green and natural infrastructure com-
ponents; and 
(C) achieve multiple public benefits. 
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(3) IMPORTATION OF OTHER REQUIREMENTS.— 
The following provisions of law shall apply to the 
pilot program under this section: 
(A) Sections 5022, 5024, 5027, 5028, 
5029, 5030, 5031, 5032, and 5034(a) of the 
Water Resources Reform and Development Act 
of 2014 (33 U.S.C. 3901, 3903, 3906, 3907, 
3908, 3909, 3910, 3911, and 3913(a)), except 
that— 
(i) any reference contained in those 
sections to the Secretary of the Army shall 
be considered to be a reference to the Sec-
retary; 
(ii) any reference contained in those 
sections to an eligible project shall be con-
sidered to be a reference to an eligible 
project described in subsection (b); 
(iii) paragraphs (1)(E) and (6)(B) of 
subsection (a), and subsection (b)(3), of 
section 5028 of that Act (33 U.S.C. 3907) 
shall not apply with respect to this section; 
and 
(iv) subsections (e) and (f) of section 
5030 of that Act (33 U.S.C. 3909) shall 
not apply with respect to this section. 
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(B) The agreement between the Adminis-
trator of the Environmental Protection Agency 
and the Commissioner of Reclamation required 
under section 4301 of the America’s Water In-
frastructure Act of 2018 (Public Law 115– 
270). 
(C) Other applicable environmental laws, 
including the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
(e) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to the Secretary to carry out the pilot 
program under this section $150,000,000 for each of 
fiscal years 2020 through 2024, to remain available 
until expended. 
(2) ADMINISTRATIVE
COSTS.—Of the funds 
made available under paragraph (1), the Secretary 
may use for administrative costs of carrying out the 
pilot program under this section (including for the 
provision of technical assistance to project sponsors 
pursuant to paragraph (3), to obtain any necessary 
approval, and for transfer to the Administrator of 
the Environmental Protection Agency to provide as-
sistance in administering and servicing Federal cred-
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it instruments under the pilot program) not more 
than $5,000,000 for each applicable fiscal year. 
(3) SMALL COMMUNITY PROJECTS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Commissioner may use the 
funds made available under paragraph (2) to 
provide assistance, including assistance to pay 
the costs of acquiring the rating opinion letters 
under paragraph (1)(D) of section 5028(a) of 
the Water Resources Reform and Development 
Act of 2014 (33 U.S.C. 3907(a)), to assist 
project sponsors in obtaining the necessary ap-
provals for small community projects that are 
eligible for assistance under paragraph (2)(B) 
of that section or subsection (b)(3). 
(B) LIMITATION.—Assistance provided to 
a project sponsor under subparagraph (A) may 
not exceed an amount equal to 75 percent of 
the total administrative costs incurred by the 
project sponsor in securing financial assistance 
under this section. 
(f) LIMITATION.—No eligible project that receives as-
sistance under this section may be financed (directly or 
indirectly), in whole or in part, with proceeds of any obli-
gation the interest on which is exempt from the tax im-
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posed under chapter 1 of the Internal Revenue Code of 
1986. 
(g) EFFECT.—Nothing in this section affects the au-
thority of a State or a political subdivision of a State to 
apply and enforce any environmental laws (including regu-
lations) with respect to an eligible project provided assist-
ance under this section. 
SEC. 303. WATER RECYCLING AND REUSE PROJECTS. 
(a) COMPETITIVE GRANT PROGRAM FOR THE FUND-
ING OF WATER RECYCLING AND REUSE PROJECTS.—Sec-
tion 1602(f) of the Reclamation Wastewater and Ground-
water Study and Facilities Act (43 U.S.C. 390h(f)) is 
amended by striking paragraphs (2) and (3) and inserting 
the following: 
‘‘(2) PRIORITY.—In providing grants under 
paragraph (1), the Secretary shall give priority to 
projects that— 
‘‘(A) are likely to provide a more-reliable 
water supply for a unit of State, local, or Tribal 
government; 
‘‘(B) are likely to increase the water man-
agement flexibility and reduce impacts on envi-
ronmental resources; 
‘‘(C) are regional in nature; 
‘‘(D) involve multiple stakeholders; 
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‘‘(E) provide multiple benefits, including 
water supply reliability, ecosystem benefits, 
groundwater management and enhancements, 
and water quality improvements; 
‘‘(F) would benefit low-income commu-
nities; or 
‘‘(G) would protect communities particu-
larly at-risk to climate change and environ-
mental degradation.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
1602(g) of the Reclamation Wastewater and Groundwater 
Study and Facilities Act (43 U.S.C. 390h(g)) is amend-
ed— 
(1) 
in 
paragraph 
(1), 
by 
striking 
‘‘$50,000,000’’ and inserting ‘‘$500,000,000’’; and 
(2) in paragraph (2), by striking ‘‘if enacted 
appropriations legislation designates funding to 
them by name,’’. 
(c) LIMITATION ON FUNDING.—Section 1631(d)(1) 
of the Reclamation Wastewater and Groundwater Study 
and Facilities Act (43 U.S.C. 390h–13(d)(1)) is amended 
by striking ‘‘$20,000,000 (October 1996 prices)’’ and in-
serting ‘‘$30,000,000 (January 2019 prices)’’. 
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(d) DURATION.—Section 4013 of the Water Infra-
structure Improvements for the Nation Act (43 U.S.C. 
390b note; Public Law 114–322) is amended— 
(1) in paragraph (1), by striking ‘‘and’’; 
(2) in paragraph (2), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(3) the amendment made by section 4009(c).’’. 
(e) PROGRAMS FOR ALTERNATIVE WATER SOURCE 
PROJECTS.—Section 220 of the Federal Water Pollution 
Control Act (33 U.S.C. 1300) is amended to read as fol-
lows: 
‘‘SEC. 220. PROGRAM FOR ALTERNATIVE WATER SOURCE 
PROJECTS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ALTERNATIVE WATER SOURCE PROJECT.— 
‘‘(A) IN GENERAL.—The term ‘alternative 
water source project’ means a project that— 
‘‘(i) is designed to provide municipal, 
industrial, or agricultural water supplies in 
an environmentally sustainable manner by 
conserving, 
managing, 
reclaiming, 
or 
reusing water, wastewater, or stormwater, 
or by treating wastewater or stormwater; 
and 
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‘‘(ii) provides an alternative to tradi-
tional water projects that divert or store 
water from natural aquatic ecosystems, in-
cluding rivers, lakes, streams, and estu-
aries. 
‘‘(B) EXCLUSION.—The term ‘alternative 
water source project’ does not include any 
water treatment or distribution facility. 
‘‘(2) CRITICAL
WATER
SUPPLY
NEEDS.—The 
term ‘critical water supply needs’ means existing or 
reasonably anticipated future water supply needs 
that cannot be met by existing water supplies, as 
identified in a comprehensive statewide or regional 
water supply plan or assessment projected over a pe-
riod of not less than 20 years. 
‘‘(b) ESTABLISHMENT.—The Administrator shall es-
tablish a program to make grants to State, interstate, and 
intrastate water resource development agencies (including 
water management districts and water supply authorities), 
local government agencies, Tribal governments, private 
utilities, and nonprofit entities for alternative water source 
projects to meet critical water supply needs. 
‘‘(c) ELIGIBLE ENTITY.—The Administrator may 
award a grant under this section to an entity only if the 
entity has authority under State law to develop or provide 
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water for municipal, industrial, and agricultural uses in 
an area of the State that is experiencing critical water 
supply needs. 
‘‘(d) SELECTION OF PROJECTS.— 
‘‘(1) LIMITATION.—A project that has received 
funds for construction under the Reclamation 
Projects Authorization and Adjustment Act of 1992 
(43 U.S.C. 390h et seq.) shall not be eligible for a 
grant under this section. 
‘‘(2) 
GEOGRAPHICAL
DISTRIBUTION.—Alter-
native water source projects selected by the Adminis-
trator for a grant under this section shall reflect a 
variety of geographical and environmental condi-
tions. 
‘‘(e) USES OF GRANT FUNDS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
grant received under this section may be used for 
engineering, design, construction, and final testing 
of an alternative water source project designed to 
meet critical water supply needs. 
‘‘(2) EXCLUSION.—A grant received under this 
section may not be used for planning, a feasibility 
study, operation, maintenance, replacement, repair, 
or rehabilitation. 
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‘‘(f) COST SHARING.—The Federal share of the eligi-
ble costs of an alternative water source project carried out 
using a grant under this section shall be not more than 
50 percent. 
‘‘(g) REPORT.—Not later than September 30, 2023, 
the Administrator shall submit to Congress a report de-
scribing the results of the grant program established 
under subsection (b), including progress toward meeting 
the critical water supply needs of the grant recipients. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$500,000,000 for fiscal year 2020 and each fiscal year 
thereafter, to remain available until expended. 
‘‘(i) POLICY.—Nothing in this section affects the ap-
plication of section 101(g) and all of the provisions of this 
section shall be carried out in accordance with that sec-
tion.’’. 
SEC. 304. MANDATORY SPENDING FOR WATER INFRA-
STRUCTURE PROGRAMS. 
(a) CLEAN WATER PROGRAMS.— 
(1) IN GENERAL.—At the beginning of each fis-
cal year, the Administrator shall obligate for the fis-
cal year— 
(A) $174,250,000 to make grants to non-
profit organizations to provide technical assist-
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