Title: Low-Income Water Customer Assistance Programs Act of 2018
Policy area: Environmental Protection

Summary:
Low-Income Water Customer Assistance Programs Act of 2018
This bill establishes new pilot programs that award grants to help low-income households pay their drinking water bills and wastewater or municipal stormwater bills.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3564 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3564

 To amend the Safe Drinking Water Act and the Federal Water Pollution 
Control Act to establish pilot programs to assist low-income households 
 in maintaining access to sanitation services and drinking water, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 10, 2018

Mr. Cardin (for himself and Mr. Wicker) introduced the following bill; 
 which was read twice and referred to the Committee on Environment and 
                              Public Works

_______________________________________________________________________

                                 A BILL


 
 To amend the Safe Drinking Water Act and the Federal Water Pollution 
Control Act to establish pilot programs to assist low-income households 
 in maintaining access to sanitation services and drinking water, 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 2018''.

SEC. 2. LOW-INCOME DRINKING WATER ASSISTANCE PILOT 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. 1459C. LOW-INCOME DRINKING WATER ASSISTANCE PILOT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        municipality or public entity that owns or operates a community 
        water system.
            ``(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 for that State; and
                            ``(ii) an amount equal to 60 percent of the 
                        median income for that State.
            ``(4) Small community-serving eligible entity.--The term 
        `small community-serving eligible entity' means an eligible 
        entity that provides drinking water services to a city, county, 
        or municipality with a population of fewer than 10,000 
        residents, at least 20 percent of whom are at or below the 
        Federal poverty level.
    ``(b) Establishment.--
            ``(1) In general.--The Administrator shall establish a 
        pilot program to award grants to not fewer than 32 eligible 
        entities in accordance with paragraph (2) to develop and 
        implement programs to assist low-income households in 
        maintaining access to affordable drinking water.
            ``(2) Requirements.--
                    ``(A) In general.--The Administrator shall award 
                grants under the pilot program described in paragraph 
                (1) to--
                            ``(i) not fewer than 8 eligible entities 
                        that provide drinking water services to a 
                        population of 1,000,000 or more residents;
                            ``(ii) not fewer than 8 eligible entities 
                        that provide drinking water services to a 
                        population of 100,000 or more, but fewer than 
                        1,000,000, residents;
                            ``(iii) not fewer than 8 eligible entities 
                        that provide drinking water services to a 
                        population of 10,000 or more, but fewer than 
                        100,000, residents;
                            ``(iv) subject, as applicable, to 
                        subparagraph (B), not fewer than 8 eligible 
                        entities that provide drinking water services 
                        to a population of fewer than 10,000 residents; 
                        and
                            ``(v) not more than 2 eligible entities in 
                        each State.
                    ``(B) Small community-serving eligible entities.--
                To be eligible to receive a grant under the pilot 
                program under this subsection, a small community-
                serving eligible entity shall enter into a memorandum 
                of understanding with the State in which the small 
                community-serving eligible entity is located, under 
                which the State shall--
                            ``(i) submit to the Administrator an 
                        application under paragraph (6) on behalf of 
                        the small community-serving eligible entity; 
                        and
                            ``(ii) on receipt of a grant under the 
                        pilot program, administer the low-income 
                        household assistance program developed by the 
                        small community-serving eligible entity.
            ``(3) Limitations.--
                    ``(A) Use.--A grant awarded under the pilot 
                program--
                            ``(i) shall not be used to replace funds 
                        for any existing similar program; but
                            ``(ii) may be used to supplement or enhance 
                        an existing program.
                    ``(B) Grants under multiple programs.--An eligible 
                entity--
                            ``(i) may apply for a grant under the pilot 
                        program and under the low-income wastewater 
                        assistance pilot program established under 
                        section 124(b)(1) of the Federal Water 
                        Pollution Control Act; but
                            ``(ii) may be awarded a grant under only 1 
                        of the programs described in clause (i).
            ``(4) Term.--The term of a grant awarded under the pilot 
        program shall be 5 years.
            ``(5) Minimum program requirements.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this section, the Administrator 
                shall develop, in consultation with all relevant 
                stakeholders, the minimum requirements for a program 
                carried out by an eligible entity (or a State, on 
                behalf of a small community-serving eligible entity) 
                using a grant under this subsection.
                    ``(B) Inclusions.--The 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; 
                        or
                            ``(vi) water efficiency assistance, 
                        including direct installation of water 
                        efficient fixtures and leak repair, which may 
                        be completed through a contracted third party.
                    ``(C) Assistance exempt from taxation.--
                Notwithstanding any other provision of law, assistance 
                provided to a low-income household under a program 
                carried out by an eligible entity (or a State, on 
                behalf of a small community-serving eligible entity) 
                using a grant under this subsection shall be exempt 
                from income tax under the Internal Revenue Code of 
                1986.
            ``(6) Application.--To receive a grant under this 
        subsection, an eligible entity (or a State, on behalf of a 
        small community-serving eligible entity) shall submit to the 
        Administrator an application that demonstrates that--
                    ``(A) the proposed program of the eligible entity 
                or small community-serving eligible entity, as 
                applicable, meets the requirements developed under 
                paragraph (5)(A);
                    ``(B) the eligible entity or small community-
                serving eligible entity, as applicable, has a long-term 
                financial plan to fund the activities necessary to 
                achieve or maintain compliance with this Act; and
                    ``(C) a grant awarded under this subsection would 
                support the efforts of the eligible entity (or the 
                State, on behalf of a small community-serving eligible 
                entity) to generate the necessary funds to achieve or 
                maintain compliance with this Act while mitigating the 
                cost to low-income households.
            ``(7) Priority.--In awarding grants under this subsection, 
        the Administrator shall give priority to eligible entities or 
        small community-serving eligible entities, as applicable--
                    ``(A) that are affected by consent decrees relating 
                to compliance with the Federal Water Pollution Control 
                Act (33 U.S.C. 1251 et seq.);
                    ``(B) the residential customers of which have 
                experienced rate or fee increases for drinking water, 
                wastewater, or stormwater services greater than or 
                equal to 30 percent during the period beginning on the 
                date that is 3 years before the date of enactment of 
                this section;
                    ``(C) that--
                            ``(i) develop an equivalent program, as 
                        determined by the Administrator, that is 
                        administered separately by the eligible entity 
                        or small community-serving eligible entity, as 
                        applicable; or
                            ``(ii) provide matching funds equal to or 
                        greater than the amount of the grant from--
                                    ``(I) the applicable State or unit 
                                of local government; or
                                    ``(II) a State-sponsored nonprofit 
                                organization or private entity; or
                    ``(D) that are described in subsection (a)(1)(B).
            ``(8) Lower income limit.--For purposes of this section, an 
        eligible entity (or a State, on behalf of a small community-
        serving eligible entity) may adopt an income limit that is 
        lower than the limit described in subsection (a)(3)(B), except 
        that the eligible entity or State, respectively, may not 
        exclude a household from eligibility in a fiscal year based 
        solely on household income if that income is less than 110 
        percent of the poverty level for the State.
            ``(9) Reporting requirements.--
                    ``(A) In general.--In addition to any other 
                applicable Federal or agency-specific grant reporting 
                requirements, as a condition of receiving a grant under 
                this subsection, an eligible entity (or a State, on 
                behalf of a small community-serving eligible entity) 
                shall submit to the Administrator an annual report that 
                summarizes, in a manner determined by the 
                Administrator, the low-income household assistance 
                program developed by the eligible entity or small 
                community-serving eligible entity, as applicable, using 
                the grant, including--
                            ``(i) key features;
                            ``(ii) sources of funding;
                            ``(iii) eligibility criteria;
                            ``(iv) participation rates;
                            ``(v) the monetary benefit per participant;
                            ``(vi) program costs;
                            ``(vii) the demonstrable impacts of the 
                        program on arrearage and service disconnection 
                        for residential customers, to the maximum 
                        extent practicable; and
                            ``(viii) other relevant information 
                        required by the Administrator.
                    ``(B) Publication.--The Administrator shall publish 
                each report submitted under subparagraph (A).
    ``(c) Technical Assistance.--The Administrator shall provide 
technical assistance to each eligible entity, and each State, on behalf 
of a small community-serving eligible entity, that receives a grant 
under this section to ensure--
            ``(1) full implementation of the pilot program; and
            ``(2) maximum enrollment of low-income households.
    ``(d) Report.--Not later than 2 years after the date on which grant 
funds are first disbursed to an eligible entity (or a State, on behalf 
of a small community-serving eligible entity) under this section, and 
every year thereafter for the duration of the terms of the grants, the 
Administrator shall submit to Congress a report on the results of the 
pilot program established under this section.''.

SEC. 3. LOW-INCOME WASTEWATER ASSISTANCE PILOT 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 PILOT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a municipality or public entity that owns or 
                operates--
                            ``(i) a publicly owned treatment works;
                            ``(ii) a municipal wastewater treatment 
                        system; or
                            ``(iii) a municipal separate stormwater 
                        sewer system; and
                    ``(B) 2 or more municipalities or public entities 
                described in subparagraph (A) that have entered into a 
                partnership agreement or a cooperative agreement.
            ``(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 for that State; and
                            ``(ii) an amount equal to 60 percent of the 
                        median income for that State.
            ``(4) Small community-serving eligible entity.--The term 
        `small community-serving eligible entity' means an eligible 
        entity that provides wastewater or municipal stormwater 
        services to a city, county, or municipality with a population 
        of fewer than 10,000 residents, at least 20 percent of whom are 
        at or below the Federal poverty level.
    ``(b) Establishment.--
            ``(1) In general.--The Administrator shall establish a 
        pilot program to award grants to not fewer than 32 eligible 
        entities in accordance with paragraph (2) to develop and 
        implement programs to assist low-income households in 
        maintaining access to affordable wastewater or municipal 
        stormwater services.
            ``(2) Requirements.--
                    ``(A) In general.--The Administrator shall award 
                grants under the pilot program described in paragraph 
                (1) to--
                            ``(i) not fewer than 8 eligible entities 
                        that provide drinking water services to a 
                        population of 1,000,000 or more residents;
                            ``(ii) not fewer than 8 eligible entities 
                        that provide drinking water services to a 
                        population of 100,000 or more, but fewer than 
                        1,000,000, residents;
                            ``(iii) not fewer than 8 eligible entities 
                        that provide drinking water services to a 
                        population of 10,000 or more, but fewer than 
                        100,000, residents;
                            ``(iv) subject, as applicable, to 
                        subparagraph (B), not fewer than 8 eligible 
                        entities that provide drinking water services 
                        to a population of fewer than 10,000 residents; 
                        and
                            ``(v) not more than 2 eligible entities in 
                        each State.
                    ``(B) Small community-serving eligible entities.--
                To be eligible to receive a grant under the pilot 
                program under this subsection, a small community-
                serving eligible entity shall enter into a memorandum 
                of understanding with the State in which the small 
                community-serving eligible entity is located, under 
                which the State shall--
                            ``(i) submit to the Administrator an 
                        application under paragraph (6) on behalf of 
                        the small community-serving eligible entity; 
                        and
                            ``(ii) on receipt of a grant under the 
                        pilot program, administer the low-income 
                        household assistance program developed by the 
                        small community-serving eligible entity.
            ``(3) Limitations.--
                    ``(A) Use.--A grant awarded under the pilot program 
                shall not be used to replace funds for any existing 
                similar program.
                    ``(B) Grants under multiple programs.--An eligible 
                entity--
                            ``(i) may apply for a grant under the pilot 
                        program and under the low-income drinking water 
                        assistance pilot program established under 
                        section 1459C(b)(1) of the Safe Drinking Water 
                        Act; but
                            ``(ii) may be awarded a grant under only 1 
                        of the programs described in clause (i).
            ``(4) Term.--The term of a grant awarded under the pilot 
        program shall be 5 years.
            ``(5) Minimum program requirements.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this section, the Administrator 
                shall develop, in consultation with all relevant 
                stakeholders, the minimum requirements for a program to 
                be carried out by an eligible entity (or a State, on 
                behalf of a small community-serving eligible entity) 
                using a grant under this subsection.
                    ``(B) Inclusions.--The 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; 
                        or
                            ``(vi) water efficiency assistance, 
                        including direct installation of water 
                        efficient fixtures and leak repair, which may 
                        be completed through a contracted third party.
                    ``(C) Assistance exempt from taxation.--
                Notwithstanding any other provision of law, assistance 
                provided to a low-income household under a program 
                carried out by an eligible entity (or a State, on 
                behalf of a small community-serving eligible entity) 
                using a grant under this subsection shall be exempt 
                from income tax under the Internal Revenue Code of 
                1986.
            ``(6) Application.--To receive a grant under this 
        subsection, an eligible entity (or a State, on behalf of a 
        small community-serving eligible entity) shall submit to the 
        Administrator an application that demonstrates that--
                    ``(A) the proposed program of the eligible entity 
                or small community-serving eligible entity, as 
                applicable, meets the requirements developed under 
                paragraph (5)(A);
                    ``(B) the eligible entity or small community-
                serving eligible entity, as applicable, has a long-term 
                financial plan to fund the activities necessary to 
                achieve or maintain compliance with this Act; and
                    ``(C) a grant awarded under this subsection would 
                support the efforts of the eligible entity (or the 
                State, on behalf of a small community-serving eligible 
                entity) to generate the necessary funds to achieve or 
                maintain compliance with this Act while mitigating the 
                cost to low-income households.
            ``(7) Priority.--In awarding grants under this subsection, 
        the Administrator shall give priority to eligible entities or 
        small community-serving eligible entities, as applicable--
                    ``(A) that are affected by consent decrees relating 
                to compliance with this Act;
                    ``(B) the residential customers of which have 
                experienced rate or fee increases for wastewater, 
                stormwater, or drinking water services greater than or 
                equal to 30 percent during the period beginning on the 
                date that is 3 years before the date of enactment of 
                this section;
                    ``(C) that--
                            ``(i) develop an equivalent program, as 
                        determined by the Administrator, that is 
                        administered separately by the eligible entity 
                        or small community-serving eligible entity, as 
                        applicable; or
                            ``(ii) provide matching funds equal to or 
                        greater than the amount of the grant from--
                                    ``(I) the applicable State or unit 
                                of local government; or
                                    ``(II) a State-sponsored nonprofit 
                                organization or private entity; or
                    ``(D) that are described in subsection (a)(1)(B).
            ``(8) Lower income limit.--For purposes of this section, an 
        eligible entity (or a State, on behalf of a small community-
        serving eligible entity) may adopt an income limit that is 
        lower than the limit described in subsection (a)(3)(B), except 
        that the eligible entity or State, respectively, may not 
        exclude a household from eligibility in a fiscal year based 
        solely on household income if that income is less than 110 
        percent of the poverty level for the State.
            ``(9) Reporting requirements.--
                    ``(A) In general.--In addition to any other 
                applicable Federal or agency-specific grant reporting 
                requirements, as a condition of receiving a grant under 
                this subsection, an eligible entity (or a State, on 
                behalf of a small community-serving eligible entity) 
                shall submit to the Administrator an annual report that 
                summarizes, in a manner determined by the 
                Administrator, the low-income household assistance 
                program developed by the eligible entity or small 
                community-serving eligible entity, as applicable, using 
                the grant amount, including--
                            ``(i) key features;
                            ``(ii) sources of funding;
                            ``(iii) eligibility criteria;
                            ``(iv) participation rates;
                            ``(v) the monetary benefit per participant;
                            ``(vi) program costs;
                            ``(vii) the demonstrable impacts of the 
                        program on arrearage and service disconnection 
                        for residential customers, to the maximum 
                        extent practicable; and
                            ``(viii) other relevant information 
                        required by the Administrator.
                    ``(B) Publication.--The Administrator shall publish 
                each report submitted under subparagraph (A).
    ``(c) Technical Assistance.--The Administrator shall provide 
technical assistance to each eligible entity and each State, on behalf 
of a small community-serving eligible entity, that receives a grant 
under this section to ensure--
            ``(1) full implementation of the pilot program; and
            ``(2) maximum enrollment of low-income households.
    ``(d) Report.--Not later than 2 years after the date on which grant 
funds are first disbursed to an eligible entity (or a State, on behalf 
of a small community-serving eligible entity) under this section, and 
every year thereafter for the duration of the terms of the grants, the 
Administrator shall submit to Congress a report on the results of the 
pilot 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) 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 for that State; and
                            (ii) an amount equal to 60 percent of the 
                        median income for that State.
    (b) Study; Report.--
            (1) In general.--Not later than 2 years 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 affordable and 
                functional centralized and onsite wastewater, 
                stormwater, and drinking water services;
                    (B) a description of the cost of each method 
                described in subparagraph (A);
                    (C) with respect to the development of the report, 
                a consultation with all relevant stakeholders; and
                    (D) a description of the results of the study with 
                respect to low-income renters who do not receive bills 
                for wastewater, stormwater, and drinking water services 
                but pay for the services indirectly through rent 
                payments.
                                 <all>