Low-Income Water Customer Assistance Programs Act of 2021
Bill: H.R.3293 | Sponsor: Rep. Blunt Rochester, Lisa (D-DE)
Policy area: Environmental Protection

Summary:
Low-Income Water Customer Assistance Programs Act of 2021
This bill directs the Environmental Protection Agency (EPA) to establish grant programs to assist low-income households in maintaining access to drinking water and wastewater services.
Specifically, the EPA must establish a program to assist such households with paying drinking water bills. States and community water systems may apply for grants.
In addition, the EPA must establish a program to assist such households with paying wastewater utility bills. States may apply for grants for small community-serving wastewater facilities. Certain municipalities may apply for grants for (1) treatment works for municipal waste, or (2) municipal separate storm sewer systems.

To amend the Safe Drinking Water Act and the Federal Water Pollution 
 Control Act to establish programs to assist low-income households in 
 maintaining access to drinking water and wastewater services, 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 ``Low-Income Water Customer Assistance 
Programs Act of 2021''.

SEC. 2. LOW-INCOME DRINKING WATER ASSISTANCE PROGRAM.

    Part E of the Safe Drinking Water Act (42 U.S.C. 300j et seq.) is 
amended by adding at the end the following:

``SEC. 1459E. LOW-INCOME DRINKING WATER ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a community water system that is owned or 
                operated by a municipality, other than a small 
                community-serving water system; or
                    ``(B) a State, with respect to a small community-
                serving water system located in the State.
            ``(2) Household.--The term `household' means any individual 
        or group of individuals who are living together as 1 economic 
        unit.
            ``(3) Local drinking water access program.--The term `local 
        drinking water access program' means a program developed or 
        implemented by an eligible entity using a grant awarded under 
        this section.
            ``(4) Low-income household.--The term `low-income 
        household' means a household--
                    ``(A) in which 1 or more individuals are 
                receiving--
                            ``(i) assistance under a State program 
                        funded under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.);
                            ``(ii) supplemental security income 
                        payments under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(iii) supplemental nutrition assistance 
                        program benefits under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.); or
                            ``(iv) payments under--
                                    ``(I) section 1315, 1521, 1541, or 
                                1542 of title 38, United States Code; 
                                or
                                    ``(II) section 306 of the Veterans' 
                                and Survivors' Pension Improvement Act 
                                of 1978 (38 U.S.C. 1521 note; Public 
                                Law 95-588); or
                    ``(B) that has an income that--
                            ``(i) as determined by the State in which 
                        the household is located, does not exceed the 
                        greater of--
                                    ``(I) an amount equal to 150 
                                percent of the poverty level; and
                                    ``(II) an amount equal to 60 
                                percent of the State median income for 
                                that State; or
                            ``(ii) does not exceed an amount, 
                        determined by an eligible entity receiving a 
                        grant under this section, that--
                                    ``(I) is lower that the amount 
                                described in clause (i); and
                                    ``(II) is greater than or equal to 
                                110 percent of the poverty level.
            ``(5) Poverty level.--The term `poverty level' means, with 
        respect to a household in a State, the income described in the 
        poverty guidelines issued by the Secretary of Health and Human 
        Services pursuant to section 673 of the Community Services 
        Block Grant Act (42 U.S.C. 9902), as applicable to the 
        household.
            ``(6) Small community-serving water system.--The term 
        `small community-serving water system' means a community water 
        system that provides drinking water services to a municipality 
        with a population of fewer than 10,000 residents, at least 20 
        percent of whom are at or below the poverty level.
            ``(7) State median income.--The term `State median income' 
        has the meaning given that term in section 2603 of the Low-
        Income Home Energy Assistance Act of 1981 (42 U.S.C. 8622).
    ``(b) Establishment.--
            ``(1) In general.--The Administrator shall establish a 
        Federal low-income drinking water assistance program to award 
        grants to eligible entities to develop and implement local 
        drinking water access programs to assist low-income households 
        in maintaining access to affordable drinking water.
            ``(2) Requirements for small community-serving water 
        systems.--In order for a State to be eligible to receive a 
        grant under this section for a small community-serving water 
        system, the State and the small community-serving water system 
        shall enter into a memorandum of understanding, under which the 
        State shall--
                    ``(A) submit to the Administrator an application 
                under paragraph (6) for the small community-serving 
                water system; and
                    ``(B) on receipt of a grant under this section, 
                develop and implement a local drinking water access 
                program for the small community-serving water system.
            ``(3) Limitations.--A grant awarded under this subsection--
                    ``(A) shall not be used to replace funds for any 
                existing similar local program to assist low-income 
                households in maintaining access to affordable drinking 
                water; but
                    ``(B) may be used to supplement or enhance such a 
                local program.
            ``(4) Term.--The term of a grant awarded under this 
        subsection shall be one year.
            ``(5) Minimum local program requirements.--
                    ``(A) In general.--Not later than 6 months after 
                the date of enactment of this section, the 
                Administrator shall develop, in consultation with 
                relevant stakeholders, the minimum requirements for a 
                local drinking water access program.
                    ``(B) Inclusions.--The local drinking water access 
                program requirements developed under subparagraph (A) 
                may include--
                            ``(i) direct financial assistance;
                            ``(ii) a lifeline rate;
                            ``(iii) bill discounting;
                            ``(iv) special hardship provisions;
                            ``(v) a percentage-of-income payment plan;
                            ``(vi) water efficiency assistance, 
                        including subsidizing the cost of the 
                        installation of water efficient fixtures or 
                        leak repair work that is carried out or 
                        contracted by a homeowner; or
                            ``(vii) any other form of assistance 
                        identified by the Administrator.
            ``(6) Application.--To receive a grant under this 
        subsection--
                    ``(A) an eligible entity shall submit to the 
                Administrator an application that demonstrates that--
                            ``(i) the proposed local drinking water 
                        access program meets the requirements developed 
                        under paragraph (5); and
                            ``(ii) the proposed local drinking water 
                        access program will treat households that live 
                        in owner-occupied homes and households that 
                        live in rental housing equitably; and
                    ``(B) in the case of an eligible entity described 
                in subsection (a)(1)(A), the eligible entity shall 
                submit to the Administrator an application that 
                demonstrates that--
                            ``(i) the eligible entity has--
                                    ``(I) a long-term financial plan 
                                based on an analysis of the rates the 
                                applicable community water system 
                                charges for drinking water services;
                                    ``(II) an asset management plan;
                                    ``(III) a capital improvement plan 
                                with a period of not less than 20 
                                years;
                                    ``(IV) a fiscal management plan; or
                                    ``(V) another plan similar to the 
                                plans described in clauses (i) through 
                                (iv);
                            ``(ii) a grant awarded under this 
                        subsection would support the efforts of the 
                        eligible entity to generate the necessary funds 
                        to achieve or maintain compliance with this Act 
                        while mitigating the cost to low-income 
                        households; and
                            ``(iii) the eligible entity has the 
                        capacity to create and implement an effective 
                        community outreach plan to inform low-income 
                        households of the local drinking water access 
                        program and assist with enrollment.
            ``(7) Priority.--In awarding grants under this subsection, 
        the Administrator shall give priority to applications for local 
        drinking water access programs with respect to which--
                    ``(A) the owner or operator of the applicable 
                community water system--
                            ``(i) owns or operates a--
                                    ``(I) treatment works (as defined 
                                in section 212 of the Federal Water 
                                Pollution Control Act (33 U.S.C. 1292)) 
                                for municipal waste; or
                                    ``(II) a municipal separate storm 
                                sewer system (as such term is used in 
                                the Federal Water Pollution Control 
                                Act); and
                            ``(ii) is subject to a consent decree 
                        relating to compliance with the Federal Water 
                        Pollution Control Act (33 U.S.C. 1251 et seq.) 
                        with respect to a treatment works or system 
                        described in clause (i);
                    ``(B) the residential customers of the applicable 
                community water system have experienced rate or fee 
                increases for drinking water services or wastewater 
                services (including stormwater services) of 30 percent 
                or more during the 3-year period ending on the date of 
                enactment of this section; or
                    ``(C) the eligible entity will provide matching 
                funds in an amount equal to or greater than the amount 
                of the grant.
            ``(8) Reporting requirements.--
                    ``(A) In general.--As a condition of receiving a 
                grant under this subsection, an eligible entity shall 
                submit to the Administrator, in a manner determined by 
                the Administrator, information regarding the applicable 
                local drinking water access program, including--
                            ``(i) key features, including rate 
                        structures, rebates, discounts, and related 
                        initiatives that assist low-income households, 
                        including--
                                    ``(I) billing methods that average 
                                rates over the course of a year, known 
                                as `budget billing';
                                    ``(II) bill timing; and
                                    ``(III) pretermination protections;
                            ``(ii) sources of funding;
                            ``(iii) eligibility criteria;
                            ``(iv) participation rates by households;
                            ``(v) the average amount of assistance 
                        provided to participating households;
                            ``(vi) program costs;
                            ``(vii) the demonstrable impacts of the 
                        program on arrearage and service disconnection 
                        for households, based on data from before and 
                        after the implementation of the program, to the 
                        maximum extent practicable; and
                            ``(viii) other relevant information 
                        required by the Administrator.
                    ``(B) Publication.--The Administrator shall publish 
                a report that compiles and summarizes the information 
                submitted under subparagraph (A).
            ``(9) Assistance exempt from taxation.--Notwithstanding any 
        other provision of law, assistance provided to a low-income 
        household under a local drinking water access program shall not 
        be includible in the gross income of the recipient of such 
        assistance for purposes of the Internal Revenue Code of 1986.
    ``(c) Technical Assistance.--The Administrator shall provide 
technical assistance to each eligible entity that receives a grant 
under this section to ensure--
            ``(1) full implementation of the applicable local drinking 
        water access program; and
            ``(2) maximum enrollment of low-income households in the 
        applicable local drinking water access program, including 
        through--
                    ``(A) community outreach campaigns; or
                    ``(B) coordination with local health departments to 
                determine the eligibility of households for assistance.
    ``(d) Report.--Not later than 2 years after the date on which grant 
funds are first disbursed to an eligible entity under this section, and 
annually thereafter, the Administrator shall submit to Congress a 
report on the results of the Federal program established under this 
section.''.

SEC. 3. LOW-INCOME WASTEWATER ASSISTANCE PROGRAM.

    Title I of the Federal Water Pollution Control Act (33 U.S.C. 1251 
et seq.) is amended by adding at the end the following:

``SEC. 124. LOW-INCOME WASTEWATER ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Covered facility.--The term `covered facility' 
        means--
                    ``(A) a treatment works for municipal waste; or
                    ``(B) a municipal separate storm sewer system.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a municipality that owns or operates a 
                covered facility, other than a small community-serving 
                wastewater facility;
                    ``(B) 2 or more municipalities described in 
                subparagraph (A) that have entered into a partnership 
                agreement or a cooperative agreement; or
                    ``(C) a State, with respect to a small community-
                serving wastewater facility located in the State.
            ``(3) Household.--The term `household' means any individual 
        or group of individuals who are living together as 1 economic 
        unit.
            ``(4) Local wastewater services access program.--The term 
        `local wastewater services access program' means a program 
        developed or implemented by an eligible entity using a grant 
        awarded under this section.
            ``(5) Low-income household.--The term `low-income 
        household' means a household--
                    ``(A) in which 1 or more individuals are 
                receiving--
                            ``(i) assistance under a State program 
                        funded under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.);
                            ``(ii) supplemental security income 
                        payments under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(iii) supplemental nutrition assistance 
                        program benefits under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.); or
                            ``(iv) payments under--
                                    ``(I) section 1315, 1521, 1541, or 
                                1542 of title 38, United States Code; 
                                or
                                    ``(II) section 306 of the Veterans' 
                                and Survivors' Pension Improvement Act 
                                of 1978 (38 U.S.C. 1521 note; Public 
                                Law 95-588); or
                    ``(B) that has an income that--
                            ``(i) as determined by the State in which 
                        the household is located, does not exceed the 
                        greater of--
                                    ``(I) an amount equal to 150 
                                percent of the poverty level; and
                                    ``(II) an amount equal to 60 
                                percent of the State median income for 
                                that State; or
                            ``(ii) does not exceed an amount, 
                        determined by an eligible entity receiving a 
                        grant under this section, that--
                                    ``(I) is lower that the amount 
                                described in clause (i); and
                                    ``(II) is greater than or equal to 
                                110 percent of the poverty level.
            ``(6) Poverty level.--The term `poverty level' means, with 
        respect to a household in a State, the income described in the 
        poverty guidelines issued by the Secretary of Health and Human 
        Services pursuant to section 673 of the Community Services 
        Block Grant Act (42 U.S.C. 9902), as applicable to the 
        household.
            ``(7) Small community-serving wastewater facility.--The 
        term `small community-serving wastewater facility' means a 
        covered facility that provides services to municipality with a 
        population of fewer than 10,000 residents, at least 20 percent 
        of whom are at or below the poverty level.
            ``(8) State median income.--The term `State median income' 
        has the meaning given that term in section 2603 of the Low-
        Income Home Energy Assistance Act of 1981 (42 U.S.C. 8622).
    ``(b) Establishment.--
            ``(1) In general.--The Administrator shall establish a 
        Federal low-income wastewater assistance program to award 
        grants to eligible entities to develop and implement local 
        wastewater access programs to assist low-income households in 
        maintaining access to affordable wastewater services, including 
        municipal stormwater services.
            ``(2) Requirements for small community-serving wastewater 
        facilities.--In order for a State to be eligible to receive a 
        grant under this section for a small community-serving 
        wastewater facility, the State and the small community-serving 
        wastewater facility shall enter into a memorandum of 
        understanding, under which the State shall--
                    ``(A) submit to the Administrator an application 
                under paragraph (6) for the small community-serving 
                wastewater facility; and
                    ``(B) on receipt of a grant under this section, 
                develop and implement a local wastewater access program 
                for the small community-serving wastewater facility.
            ``(3) Limitations.--A grant awarded under this subsection--
                    ``(A) shall not be used to replace funds for any 
                existing similar local program to assist low-income 
                households in maintaining access to affordable 
                wastewater services, including municipal stormwater 
                services; but
                    ``(B) may be used to supplement or enhance such a 
                local program.
            ``(4) Term.--The term of a grant awarded under this 
        subsection shall be one year.
            ``(5) Minimum local program requirements.--
                    ``(A) In general.--Not later than 6 months after 
                the date of enactment of this section, the 
                Administrator shall develop, in consultation with 
                relevant stakeholders, the minimum requirements for a 
                local wastewater access program.
                    ``(B) Inclusions.--The local wastewater access 
                program requirements developed under subparagraph (A) 
                may include--
                            ``(i) direct financial assistance;
                            ``(ii) a lifeline rate;
                            ``(iii) bill discounting;
                            ``(iv) special hardship provisions;
                            ``(v) a percentage-of-income payment plan;
                            ``(vi) water efficiency assistance, 
                        including subsidizing the cost of the 
                        installation of water efficient fixtures or 
                        leak repair work that is carried out or 
                        contracted by a homeowner; or
                            ``(vii) any other form of assistance 
                        identified by the Administrator.
            ``(6) Application.--To receive a grant under this 
        subsection--
                    ``(A) an eligible entity shall submit to the 
                Administrator an application that demonstrates that--
                            ``(i) the proposed local wastewater access 
                        program meets the requirements developed under 
                        paragraph (5); and
                            ``(ii) the proposed local wastewater access 
                        program will treat households that live in 
                        owner-occupied homes and households that live 
                        in rental housing equitably; and
                    ``(B) in the case of an eligible entity described 
                in subsection (a)(1)(A), the eligible entity shall 
                submit to the Administrator an application that 
                demonstrates that--
                            ``(i) the eligible entity has--
                                    ``(I) a long-term financial plan 
                                based on an analysis of the rates the 
                                applicable covered facility charges for 
                                services;
                                    ``(II) an asset management plan;
                                    ``(III) a capital improvement plan 
                                with a period of not less than 20 
                                years;
                                    ``(IV) a fiscal management plan; or
                                    ``(V) another plan similar to the 
                                plans described in clauses (i) through 
                                (iv);
                            ``(ii) a grant awarded under this 
                        subsection would support the efforts of the 
                        eligible entity to generate the necessary funds 
                        to achieve or maintain compliance with this Act 
                        while mitigating the cost to low-income 
                        households; and
                            ``(iii) the eligible entity has the 
                        capacity to create and implement an effective 
                        community outreach plan to inform low-income 
                        households of the local wastewater access 
                        program and assist with enrollment.
            ``(7) Priority.--In awarding grants under this subsection, 
        the Administrator shall give priority to applications for local 
        wastewater access programs with respect to which--
                    ``(A) the applicable covered facility is subject to 
                a consent decree relating to compliance with this Act;
                    ``(B) the residential customers of the applicable 
                covered facility have experienced rate or fee increases 
                for drinking water services or wastewater services 
                (including stormwater services) of 30 percent or more 
                during the 3-year period ending on the date of 
                enactment of this section;
                    ``(C) the eligible entity develops an equivalent 
                program, as determined by the Administrator, that is 
                administered separately by the eligible entity;
                    ``(D) matching funds will be provided in an amount 
                equal to or greater than the amount of the grant; or
                    ``(E) the eligible entity is described in 
                subsection (a)(2)(B).
            ``(8) Reporting requirements.--
                    ``(A) In general.--As a condition of receiving a 
                grant under this subsection, an eligible entity shall 
                submit to the Administrator, in a manner determined by 
                the Administrator, information regarding the applicable 
                local wastewater access program, including--
                            ``(i) key features, including rate 
                        structures, rebates, discounts, and related 
                        initiatives that assist low-income households, 
                        including--
                                    ``(I) billing methods that average 
                                rates over the course of a year, known 
                                as `budget billing';
                                    ``(II) bill timing; and
                                    ``(III) pretermination protections;
                            ``(ii) sources of funding;
                            ``(iii) eligibility criteria;
                            ``(iv) participation rates by households;
                            ``(v) the average amount of assistance 
                        provided to households;
                            ``(vi) program costs;
                            ``(vii) the demonstrable impacts of the 
                        program on arrearage and service disconnection 
                        for households, based on data from before and 
                        after the implementation of the program, to the 
                        maximum extent practicable; and
                            ``(viii) other relevant information 
                        required by the Administrator.
                    ``(B) Publication.--The Administrator shall publish 
                a report that compiles and summarizes the information 
                submitted under subparagraph (A).
            ``(9) Assistance exempt from taxation.--Notwithstanding any 
        other provision of law, assistance provided to a low-income 
        household under a local wastewater access program shall not be 
        includible in the gross income of the recipient of such 
        assistance for purposes of the Internal Revenue Code of 1986.
    ``(c) Technical Assistance.--The Administrator shall provide 
technical assistance to each eligible entity that receives a grant 
under this section to ensure--
            ``(1) full implementation of the applicable local 
        wastewater access program; and
            ``(2) maximum enrollment of low-income households in the 
        applicable local wastewater access program, including through--
                    ``(A) community outreach campaigns; or
                    ``(B) coordination with local health departments to 
                determine the eligibility of households for assistance.
    ``(d) Report.--Not later than 2 years after the date on which grant 
funds are first disbursed to an eligible entity under this section, and 
annually thereafter, the Administrator shall submit to Congress a 
report on the results of the Federal program established under this 
section.''.

SEC. 4. NEEDS ASSESSMENT FOR NATIONWIDE RURAL AND URBAN LOW-INCOME 
              COMMUNITY WATER ASSISTANCE PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Household.--The term ``household'' means any individual 
        or group of individuals who are living together as 1 economic 
        unit.
            (3) Low-income household.--The term ``low-income 
        household'' means a household--
                    (A) in which 1 or more individuals are receiving--
                            (i) assistance under a State program funded 
                        under part A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.);
                            (ii) supplemental security income payments 
                        under title XVI of the Social Security Act (42 
                        U.S.C. 1381 et seq.);
                            (iii) supplemental nutrition assistance 
                        program benefits under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.); or
                            (iv) payments under--
                                    (I) section 1315, 1521, 1541, or 
                                1542 of title 38, United States Code; 
                                or
                                    (II) section 306 of the Veterans' 
                                and Survivors' Pension Improvement Act 
                                of 1978 (38 U.S.C. 1521 note; Public 
                                Law 95-588); or
                    (B) that has an income that, as determined by the 
                State in which the household is located, does not 
                exceed the greater of--
                            (i) an amount equal to 150 percent of the 
                        poverty level; and
                            (ii) an amount equal to 60 percent of the 
                        State median income for that State.
            (4) Poverty level.--The term ``poverty level'' means, with 
        respect to a household in a State, the income described in the 
        poverty guidelines issued by the Secretary of Health and Human 
        Services pursuant to section 673 of the Community Services 
        Block Grant Act (42 U.S.C. 9902), as applicable to the 
        household.
            (5) State median income.--The term ``State median income'' 
        has the meaning given that term in section 2603 of the Low-
        Income Home Energy Assistance Act of 1981 (42 U.S.C. 8622).
    (b) Study; Report.--
            (1) In general.--Not later than one year after the date of 
        enactment of this Act, the Administrator shall conduct, and 
        submit to Congress a report describing the results of, a study 
        regarding the prevalence throughout the United States of low-
        income households that do not have access to--
                    (A) affordable and functional centralized or onsite 
                wastewater services that protect the health of 
                individuals in the households;
                    (B) affordable municipal stormwater services; or
                    (C) affordable public drinking water services to 
                meet household needs.
            (2) Inclusions.--The report under paragraph (1) shall 
        include--
                    (A) recommendations of the Administrator regarding 
                the best methods to increase access to the services 
                described in paragraph (1);
                    (B) a description of the cost of each method 
                described in subparagraph (A);
                    (C) a description of all consultation with relevant 
                stakeholders carried out in developing the report; and
                    (D) a description of the results of the study with 
                respect to low-income households that live in rental 
                housing and do not receive bills for such services, but 
                pay for the services indirectly through rent payments.
            (3) Agreements.--The Administrator may enter into an 
        agreement with another Federal agency to carry out the study 
        under paragraph (1).
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