I 
114TH CONGRESS 
2D SESSION 
H. R. 5313 
To establish a trust fund to provide for adequate funding for water and 
sewer infrastructure. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2016 
Mr. CONYERS (for himself, Mrs. LAWRENCE, Ms. MOORE, Mrs. BUSTOS, Mr. 
GRIJALVA, Mr. JOHNSON of Georgia, Mr. POCAN, and Ms. SCHAKOWSKY) 
introduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committees on 
Ways and Means and Energy and Commerce, for a period to be subse-
quently 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. 
Be it enacted by the Senate and House of Representa-
tives 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 Reli-
ability Act of 2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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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. State water pollution control revolving funds. 
Sec. 7. Use of State revolving loan funds under the Safe Drinking Water Act. 
Sec. 8. Drinking water grant programs. 
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 
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 
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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 2016.’’. 
(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: 
‘‘(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. 
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‘‘(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 shall allocate, for a 
fiscal year, the funds available, at the beginning of such 
fiscal year, in the Water Affordability, Transparency, Eq-
uity, 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— 
(A) 0.5 percent for making grants under 
section 104(b)(8) of the Federal Water Pollu-
tion Control Act; 
(B) 1.5 percent for making grants under 
section 106 of such Act (33 U.S.C. 1256); 
(C) 2.5 percent for making grants under 
section 222 of such Act; 
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(D) 2.5 percent for making grants under 
section 319 of such Act (33 U.S.C. 1329); and 
(E) 45 percent for making capitalization 
grants under section 601 of such Act (33 
U.S.C. 1381). 
(2) SAFE DRINKING WATER FUNDING.—Of such 
amount, the Administrator shall make available— 
(A) 0.5 percent for providing technical as-
sistance under section 1442(e) of the Safe 
Drinking Water Act (42 U.S.C. 300j–1(e)); 
(B) 44.5 percent for making capitalization 
grants under section 1452 of such Act (42 
U.S.C. 300j–12); and 
(C) 3 percent for making grants under sec-
tion 1465 of such Act. 
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. 
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(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. 
(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 
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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. 
(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-
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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. 
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: 
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‘‘(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 
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 
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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.’’. 
SEC. 6. 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 (13), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (14), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
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‘‘(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 
‘‘(16) the requirements of section 513 will apply 
to the construction of treatment works carried out in 
whole or in part with assistance made available by 
a State water pollution control revolving fund as au-
thorized under this title, or with assistance made 
available under section 205(m), or both, in the same 
manner as treatment works for which grants are 
made under this Act.’’. 
(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— 
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‘‘(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 LIMIT 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 more than 50 percent of the total 
amount received by the State in capitalization 
grants under this title for a fiscal year for pro-
viding additional subsidization under this sub-
section.’’. 
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) by inserting ‘‘publicly owned, oper-
ated, and managed’’ before ‘‘community 
water systems’’; and 
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(ii) by striking ‘‘The funds 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 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) EXCEPTION TO PUBLIC OWNERSHIP, OPER-
ATION, AND
MANAGEMENT
REQUIREMENT.—Not-
withstanding the first sentence of paragraph (2), 
public water systems which regularly serve fewer 
than 10,000 persons and which are not owned, oper-
ated, or managed by any person which owns, oper-
ates, or manages any other public water system may 
receive assistance under this section.’’; 
(2) in subsection (d)(2), by striking ‘‘30 per-
cent’’ and inserting ‘‘50 percent’’; 
(3) in subsection (g)(3)— 
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(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 and sewer 
service provision, to provide protections for 
households facing service disconnection due to 
unpaid water service charges, and to promote 
universal equal access to water and sewer serv-
ices.’’; and 
(4) in subsection (k)(1), by adding at the end 
the following: 
‘‘(E) Provide assistance in the form of a 
grant to owners of private properties for the 
purpose of replacing lead service lines, as de-
fined in section 141.2 of title 40, Code of Fed-
eral Regulations, with service lines that are 
lead-free, as defined in section 1417(d).’’. 
SEC. 8. DRINKING WATER GRANT PROGRAMS. 
(a) SCHOOL DRINKING WATER IMPROVEMENT.— 
Section 1465 of the Safe Drinking Water Act (42 U.S.C. 
300j–24) is amended to read as follows: 
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‘‘SEC. 1465. FEDERAL ASSISTANCE. 
‘‘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 local edu-
cational agencies for costs associated with— 
‘‘(1) installing, repairing, or replacing the infra-
structure necessary for drinking water coolers, 
drinking water fountains, or bottle filling stations; 
and 
‘‘(2) testing the quality of drinking water at 
schools in such local education agency.’’. 
(b) TRIBAL DRINKING WATER.—Section 1452(i)(1) 
of the Safe Drinking Water Act (42 U.S.C. 300j–12(i)(1)) 
is amended— 
(1) by striking ‘‘1 1/2’’ and inserting ‘‘Three’’; 
and 
(2) by striking ‘‘may’’ and inserting ‘‘shall’’. 
Æ 
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