Title: Rural Water Infrastructure Improvement Act of 2018
Policy area: Water Resources Development

Summary:
Rural Water Infrastructure Improvement Act of 2018
This bill amends the Consolidated Farm and Rural Development Act to reauthorize through FY2023 and modify the Department of Agriculture Water and Waste Disposal Loan and Grant Program. (The program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in rural areas.)
The bill modifies the program to:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2969 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2969

  To amend the Consolidated Farm and Rural Development Act to improve 
 water or waste disposal grants or direct or guaranteed loans, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2018

  Ms. Baldwin introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To amend the Consolidated Farm and Rural Development Act to improve 
 water or waste disposal grants or direct or guaranteed loans, 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 ``Rural Water Infrastructure 
Improvement Act of 2018''.

SEC. 2. WATER OR WASTE DISPOSAL GRANTS OR DIRECT OR GUARANTEED LOANS.

    (a) Grants.--Section 306(a)(2)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(2)(B)) is amended--
            (1) in clause (iii), by striking ``$100,000'' each place it 
        appears and inserting ``$200,000''; and
            (2) in clause (vii), by striking ``2018'' and inserting 
        ``2023''.
    (b) Assistance for Unserved and Underserved Rural Communities.--
Section 306(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926(a)) is amended by adding at the end the following:
            ``(27) Assistance for unserved and underserved rural 
        communities.--
                    ``(A) Definition of unserved or underserved rural 
                community.--In this paragraph, the term `unserved or 
                underserved rural community' means a rural area that, 
                as determined by the Secretary, lacks the technical, 
                financial, organizational, and managerial capacity to 
                adequately operate, maintain, and effectively serve the 
                population of the rural area.
                    ``(B) Water and waste disposal direct loans.--The 
                Secretary may make water and waste disposal direct 
                loans under paragraph (1) to eligible entities 
                described in subparagraph (C) at the interest rate 
                applicable to areas where the median family income is 
                below the poverty line, as determined under section 
                307(a)(3)(A), for projects for unserved or underserved 
                rural communities.
                    ``(C) Eligible entities.--To be eligible to receive 
                a direct loan under subparagraph (B), an applicant 
                shall be a contiguous or local utility outside of the 
                unserved or underserved rural community to be served by 
                the project funded by the direct loan that, as 
                determined by the Secretary--
                            ``(i) has a demonstrated experience and 
                        capacity in delivering water programs or 
                        wastewater programs under this Act;
                            ``(ii) demonstrates the capacity to provide 
                        service to the applicable unserved or 
                        underserved rural community;
                            ``(iii) demonstrates that--
                                    ``(I) the project funded by the 
                                direct loan is solely for the purpose 
                                of serving the applicable unserved or 
                                underserved rural community; and
                                    ``(II) the maximum financial 
                                benefit of the assistance under this 
                                paragraph will be conferred to that 
                                unserved or underserved rural 
                                community; and
                            ``(iv) demonstrates that the applicable 
                        unserved or underserved rural community--
                                    ``(I) has willingly entered into a 
                                formal agreement with the applicant for 
                                service by the applicant; and
                                    ``(II) entered into the agreement 
                                described in subclause (I) with the 
                                understanding that the unserved or 
                                underserved rural community is eligible 
                                for water and waste disposal direct 
                                loans under paragraph (1) independently 
                                of any direct loan under this 
                                paragraph.''.
    (c) Direct and Guaranteed Loans.--Section 343(a)(13)(B) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(B)) 
is amended--
            (1) by striking ``For the purpose'' and inserting the 
        following:
                            ``(i) Grants and direct loans.--For the 
                        purpose'';
            (2) in clause (i) (as so designated)--
                    (A) by striking ``and guaranteed''; and
                    (B) by striking ``(24)'' and inserting ``(27)''; 
                and
            (3) by adding at the end the following:
                            ``(ii) Guaranteed loans.--For the purpose 
                        of water and waste disposal guaranteed loans 
                        provided under paragraphs (1) and (24) of 
                        section 306(a), the terms `rural' and `rural 
                        area' mean a city, town, or unincorporated area 
                        that has a population of not more than 50,000 
                        inhabitants.''.

SEC. 3. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT 
              APPLICATIONS.

    (a) In General.--The Secretary shall use funds made available under 
subsection (b) to provide funds for applications that are pending on 
the date of enactment of this Act in accordance with the terms and 
conditions of section 6029 of the Food, Conservation, and Energy Act of 
2008 (Public Law 110-246; 122 Stat. 1955).
    (b) Funding.--Notwithstanding any other provision of law, beginning 
in fiscal year 2019, of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $150,000,000, to 
remain available until expended.
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