Wastewater Efficiency and Treatment Act of 2021
Bill: S.722 | Sponsor: Sen. Merkley, Jeff (D-OR)
Policy area: Energy

Summary:
Wastewater Efficiency and Treatment Act of 2021
This bill requires the Department of Energy (DOE) to establish a Water and Energy Efficiency Program.
Under the program, DOE must award grants to certain small public wastewater treatment facilities that serve disadvantaged communities or populations that do not exceed 10,000. The facilities must use the grants to conduct energy efficiency audits of the facilities and update equipment based on the audits.
In addition, DOE must provide loan guarantees to eligible municipalities and Indian tribes for (1) projects that convert waste in the treatment process of wastewater treatment facilities into renewable fuels, biosolids, or other byproducts; and (2) projects that will assist in transitioning facilities towards the use of energy-efficient technologies. In carrying out the program, DOE must establish a small-scale extension services program to provide assistance to rural communities through grants, outreach, training, and technical assistance regarding energy-efficient technologies at wastewater treatment facilities in eligible municipalities and tribes.

To amend the Energy Policy Act of 2005 to establish a program to 
provide grants and loan guarantees to improve the energy efficiency of 
publicly owned wastewater treatment facilities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wastewater Efficiency and Treatment 
Act of 2021''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) municipalities face high energy costs to operate and 
        maintain the wastewater treatment facilities of the 
        municipalities;
            (2) energy intensive operations at wastewater treatment 
        facilities can include aeration, influent pumping, aerobic 
        digestion, anaerobic digestion, building operations, and other 
        critical components of the waste treatment process;
            (3) the utility energy costs of a municipality can exceed 
        30 percent of total energy costs of the municipality;
            (4) energy costs are part of the calculus in determining 
        ratepayer rates;
            (5) wastewater treatment facilities that use anaerobic 
        digestion can capture methane for conversion into energy for 
        onsite power production, heating, transportation fuel, export 
        of renewable natural gas or electricity, and other uses;
            (6) the process described in paragraph (5) may be enhanced 
        through innovative technologies, such as codigestion of fats, 
        oils and grease, food waste, and other organic waste;
            (7) all wastewater treatment facilities, regardless of type 
        of treatment or size, can benefit from energy audits and 
        installation of energy efficient components;
            (8) investment in recovery technologies for use by 
        wastewater treatment facilities may result in--
                    (A) reduced energy costs for the wastewater 
                treatment facility;
                    (B) improved energy resiliency of the wastewater 
                treatment facility; and
                    (C) potential revenue generating streams for the 
                municipality that owns the wastewater treatment 
                facility;
            (9) many existing Federal programs relating to water 
        infrastructure remain inaccessible because municipality 
        officials and utility managers may not have resources--
                    (A) to upgrade the infrastructure of the wastewater 
                treatment facilities of the municipality for energy 
                efficiency; or
                    (B) to transition wastewater treatment facilities 
                of the municipality towards energy resiliency; and
            (10) this Act will substantially benefit wastewater 
        treatment facilities in the United States by addressing the gap 
        in funding for wastewater treatment facility projects for large 
        and small municipalities by making loan guarantees and grants 
        available to municipalities to reduce borrowing costs and 
        accelerate water infrastructure investment.

SEC. 3. WATER AND ENERGY EFFICIENCY PROGRAM.

    (a) Water and Energy Efficiency Program.--The Energy Policy Act of 
2005 is amended by inserting after section 1705 (42 U.S.C. 16516) the 
following:

``SEC. 1706. WATER AND ENERGY EFFICIENCY PROGRAM.

    ``(a) Purpose.--The purpose of this section is to provide grants 
and guarantees--
            ``(1) to improve energy efficiency, energy production, and 
        nutrient recovery at wastewater treatment facilities;
            ``(2) to generate energy from waste in the treatment 
        process of wastewater treatment facilities; and
            ``(3) to reduce the energy consumption of eligible 
        municipalities and Tribes in which wastewater treatment 
        facilities are located.
    ``(b) Definitions.--In this section:
            ``(1) Eligible municipality or tribe.--The term `eligible 
        municipality or Tribe' means a municipality or Indian Tribe 
        determined to be eligible under the criteria developed under 
        subsection (c)(2).
            ``(2) Indian tribe.--The term `Indian Tribe' has the 
        meaning given the term `Indian tribe' in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 5304).
            ``(3) Program.--The term `Program' means the Water and 
        Energy Efficiency Program established under subsection (c)(1).
            ``(4) Wastewater treatment facility.--The term `wastewater 
        treatment facility' has the meaning given the term `treatment 
        works' in section 212 of the Federal Water Pollution Control 
        Act (33 U.S.C. 1292).
    ``(c) Establishment.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, notwithstanding section 1703, the 
        Secretary shall establish a program, to be known as the `Water 
        and Energy Efficiency Program', to provide--
                    ``(A) grants under subsection (d); and
                    ``(B) guarantees under subsection (e).
            ``(2) Criteria.--The Secretary shall develop application 
        criteria for providing grants and guarantees under the Program, 
        including criteria to determine whether a municipality or 
        Indian Tribe is eligible for a grant or guarantee under the 
        Program.
    ``(d) Water Efficiency Grants.--
            ``(1) In general.--Under the Program, the Secretary, acting 
        through the Assistant Secretary for Energy Efficiency and 
        Renewable Energy, shall award grants to eligible entities 
        described in paragraph (2) to carry out 1 or more eligible 
        projects described in paragraph (3).
            ``(2) Eligible entities.--An entity eligible to receive a 
        grant under this subsection is a small publicly wastewater 
        treatment facility that serves--
                    ``(A) a population of not more than 10,000; or
                    ``(B) a disadvantaged community, as determined by 
                the Secretary.
            ``(3) Eligible projects.--An eligible project referred to 
        in paragraph (1) is--
                    ``(A) a project to carry out an energy efficiency 
                audit of a wastewater treatment facility to identify 
                opportunities in the operations of the wastewater 
                treatment facility--
                            ``(i) to reduce electrical demand; or
                            ``(ii) to reduce losses in the wastewater 
                        treatment facility system; and
                    ``(B) a project to replace equipment or to carry 
                out other small capital projects to update components 
                of a wastewater treatment facility based on the results 
                of an energy efficiency audit of the wastewater 
                treatment facility.
            ``(4) Amount of grant.--The amount of a grant made under 
        this subsection shall not exceed $25,000.
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $5,000,000 for fiscal year 2021 and each fiscal year 
        thereafter, of which not more than 4 percent each fiscal year 
        shall be used for administrative costs.
    ``(e) Water and Energy Efficiency Guarantees.--
            ``(1) In general.--Under the Program, the Secretary shall 
        provide guarantees to eligible municipalities and Tribes to 
        carry out 1 or more eligible projects described in paragraph 
        (2).
            ``(2) Eligible projects.--An eligible project referred to 
        in paragraph (1) is--
                    ``(A) a project to convert waste in the treatment 
                process of the wastewater treatment facility into 
                renewable fuels, biosolids, or other byproducts, 
                including--
                            ``(i) predigestion solids treatment;
                            ``(ii) installation of anaerobic digesters;
                            ``(iii) biogas capture;
                            ``(iv) energy transfer;
                            ``(v) enhanced nutrient recovery;
                            ``(vi) material feedstocks;
                            ``(vii) facility upgrades and retrofits 
                        necessary to create or improve waste-to-energy 
                        systems; and
                            ``(viii) other emerging technologies that 
                        transform waste to energy; and
                    ``(B) a project that is being carried out pursuant 
                to an existing plan that, as determined by the 
                Secretary, will assist in transitioning a wastewater 
                treatment facility towards the use of energy-efficient 
                technologies.
            ``(3) Covered costs.--A guarantee provided under this 
        subsection may be used for--
                    ``(A) predevelopment costs associated with the 
                eligible project or existing water and wastewater 
                systems that are part of the eligible project, 
                including energy assessments; and
                    ``(B) construction and equipment costs incurred in 
                carrying out an eligible project under this subsection.
            ``(4) Additional activity.--In providing guarantees under 
        this subsection, the Secretary shall promote technologies to 
        reduce pollution in wastewater, including enhanced nutrient 
        recovery and other innovative technologies.
    ``(f) Small-Scale Extension Services Program.--In carrying out the 
Program, the Secretary shall establish a small-scale extension services 
program to provide assistance to rural communities through grants, 
outreach, training, and technical assistance regarding energy-efficient 
technologies at wastewater treatment facilities in eligible 
municipalities and Tribes.
    ``(g) Administration.--
            ``(1) Effect on state, tribal, and local permits.--The 
        provision of a grant or guarantee for an eligible project under 
        the Program shall not--
                    ``(A) relieve any recipient of the grant or 
                guarantee of any obligation to obtain any required 
                State, local, or Tribal permit or approval with respect 
                to the project;
                    ``(B) limit the right of any unit of State, local, 
                or Tribal government to approve or regulate any rate of 
                return on private equity invested in the project; or
                    ``(C) otherwise supersede any State, local, or 
                Tribal law (including any regulations) applicable to 
                the construction or operation of the project.
            ``(2) Clean water act.--Nothing in this section precludes, 
        preempts, or supersedes any requirement under the Federal Water 
        Pollution Control Act (33 U.S.C. 1251 et seq.) (commonly 
        referred to as the ``Clean Water Act'').
    ``(h) Reports.--As soon as practicable after the end of each fiscal 
year for which amounts are made available to carry out this section, 
the Secretary shall publish on a dedicated, publicly accessible 
internet website information describing--
            ``(1) with respect to that fiscal year--
                    ``(A) each application received for assistance 
                under the Program;
                    ``(B) a list of the projects selected for 
                assistance under the Program, including--
                            ``(i) a description of each project;
                            ``(ii) the amount of financial assistance 
                        provided for each project; and
                            ``(iii) the basis for the selection of each 
                        project with respect to the requirements of 
                        this section; and
                    ``(C) an overview of technical assistance and 
                outreach activities provided during that fiscal year 
                to--
                            ``(i) each eligible municipality and Tribe; 
                        and
                            ``(ii) wastewater treatment facilities 
                        serving populations of not more than 10,000; 
                        and
            ``(2) the technical assistance and outreach activities 
        proposed to be provided over the next 2 fiscal years to the 
        entities described in clauses (i) through (iii) of paragraph 
        (1)(C).''.
    (b) Clerical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 604; 123 Stat. 145) is 
amended by inserting after the item relating to section 1705 the 
following:

``Sec. 1706. Water and Energy Efficiency Program.''.
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