SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Technology Acceleration Act of 
2016''.

SEC. 2. INNOVATION IN CLEAN WATER STATE REVOLVING FUNDS.

    (a) Innovative Water Technologies.--Section 603 of the Federal 
Water Pollution Control Act (33 U.S.C. 1383) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (10), by striking ``and'' at the 
                end;
                    (B) in paragraph (11)(B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(12) for the deployment of innovative water technologies, 
        including--
                    ``(A) green technologies, including manufactured 
                technology and natural systems, to address nonpoint 
                source pollution from agriculture;
                    ``(B) resource recovery in water and wastewater 
                treatment systems, including--
                            ``(i) energy conservation and production;
                            ``(ii) water reuse and recycling; and
                            ``(iii) recovery of valuable materials, 
                        such as nutrients from wastewater streams; and
                    ``(C) green infrastructure and other innovative 
                technologies, such as real-time system monitoring and 
                peak wet weather treatment technology, to reduce sewer 
                and storm water overflows due to wet weather events in 
                urban areas.''; and
            (2) by adding at the end the following:
    ``(j) Technical Assistance.--The Administrator shall carry out 
technical assistance programs to facilitate and encourage the provision 
of financial assistance for the purposes described in subsection 
(c)(12).
    ``(k) Report.--Each year, the Administrator shall submit to 
Congress a report that describes--
            ``(1) the amount of financial assistance provided by State 
        water pollution control revolving funds to deploy innovative 
        water technologies;
            ``(2) the barriers impacting greater use of innovative 
        water technologies; and
            ``(3) the cost-saving potential to cities and future 
        infrastructure investments from emerging technologies.''.
    (b) Authorization of Appropriations.--Section 607 of the Federal 
Water Pollution Control Act (33 U.S.C. 1387) is amended--
            (1) by redesignating paragraphs (1) through (5) as 
        subparagraphs (A) through (E), respectively, and indenting 
        appropriately;
            (2) in the matter preceding subparagraph (A) (as so 
        redesignated), by striking ``There is'' and inserting the 
        following:
            ``(1) In general.--There are''; and
            (3) by adding at the end the following:
            ``(2) Innovative water technologies.--In addition to any 
        other funds made available to carry out this title and 
        notwithstanding any other provision of this Act, there is 
        authorized to be appropriated to the Administrator to make 
        additional allotments under this title to States to provide 
        financial assistance solely for purposes described in section 
        603(c)(12) $100,000,000 for each fiscal year.''.

SEC. 3. INNOVATION IN DRINKING WATER STATE REVOLVING FUNDS.

    Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is 
amended--
            (1) in subsection (a)(2)--
                    (A) in the first sentence--
                            (i) by striking ``only''; and
                            (ii) by striking ``Except'' and inserting 
                        the following:
                    ``(A) In general.--Except'';
                    (B) in the second sentence, by striking 
                ``Financial'' and inserting the following:
                    ``(B) Financial assistance.--Financial'';
                    (C) in the third sentence, by striking ``The 
                funds'' and inserting the following:
                    ``(C) Loans to public water systems.--The funds'';
                    (D) in the fourth sentence, by striking ``The 
                funds'' and inserting the following:
                    ``(D) Innovative water technologies.--The funds may 
                be used for the deployment of innovative water 
                technologies, including technologies to improve water 
                quality and technologies to improve real-time water 
                quality information of water users.
                    ``(E) Limitation.--The funds''; and
                    (E) in the fifth sentence, by striking ``Of the 
                amount'' and inserting the following:
                    ``(F) Public water systems serving fewer than 
                10,000 persons.--Of the amount'';
            (2) in subsection (f)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) for the deployment of innovative water technologies, 
        including technologies to improve water quality and 
        technologies to improve real-time water quality information of 
        water users.'';
            (3) by striking subsection (m) and inserting the following:
    ``(m) Authorization of Appropriations.--In addition to any other 
funds made available to carry out this section and notwithstanding any 
other provision of this Act, there is authorized to be appropriated to 
the Administrator to make additional allotments under this section to 
States to provide financial assistance solely for the deployment of 
innovative water technologies, including technologies to improve water 
quality and technologies to improve real-time water quality information 
of water users, $100,000,000 for each fiscal year.''; and
            (4) by adding at the end the following:
    ``(s) Technical Assistance.--The Administrator shall carry out 
technical assistance programs to facilitate and encourage the provision 
of financial assistance for the deployment of innovative water 
technologies, including technologies to improve water quality and 
technologies to improve real-time water quality information of water 
users.
    ``(t) Report.--Each year, the Administrator shall submit to 
Congress a report that describes--
            ``(1) the amount of financial assistance provided by State 
        drinking water revolving funds to deploy innovative water 
        technologies;
            ``(2) the barriers impacting greater use of innovative 
        water technologies; and
            ``(3) the cost-saving potential to cities and future 
        infrastructure investments from emerging technologies.''.

SEC. 4. INNOVATIVE WATER TECHNOLOGY GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a public utility, including publicly owned 
                treatment works and clean water systems;
                    (B) a municipality;
                    (C) a private entity, including a farmer or 
                manufacturer;
                    (D) an institution of higher education;
                    (E) a research institution or foundation;
                    (F) a State;
                    (G) a regional organization; or
                    (H) a nonprofit organization.
    (b) Grant Program Authorized.--The Administrator shall carry out a 
grant program for purposes described in subsection (c) to accelerate 
the development of innovative water technologies that address pressing 
water challenges.
    (c) Grants.--In carrying out the program under subsection (b), the 
Administrator shall make to eligible entities grants that--
            (1) finance projects that--
                    (A) are public-private partnerships; and
                    (B) deploy, test, and improve emerging water 
                technologies;
            (2) fund entities that provide technical assistance to 
        deploy innovative water technologies more broadly, especially--
                    (A) to increase adoption of innovative water 
                technologies in--
                            (i) municipal water and wastewater 
                        treatment systems; or
                            (ii) areas served by private wells; and
                    (B) in a manner that reduces ratepayer or community 
                costs over time, including the cost of future capital 
                investments; or
            (3) specifically target investments that, as determined by 
        the Administrator--
                    (A) improve water quality of a water source;
                    (B) improve water quality through the improvement 
                of the safety and security of a drinking water delivery 
                system;
                    (C) minimize contamination of drinking water, 
                including contamination by lead, bacteria, and 
                nitrates;
                    (D) improve the quality and timeliness and decrease 
                the cost of drinking water tests, especially 
                technologies that can be deployed within water systems 
                and at individual faucets to provide accurate real-time 
                tests of water quality, especially with respect to 
                lead, bacteria, and nitrate content;
                    (E) treat edge-of-field runoff to improve water 
                quality;
                    (F) treat agricultural, municipal, and industrial 
                wastewater;
                    (G) manage urban storm water runoff;
                    (H) conserve water; or
                    (I) address urgent water quality and human health 
                needs.
    (d) Priority Funding.--In making grants under this section, the 
Administrator shall give priority to projects that have the potential--
            (1) to provide substantial cost savings across a sector 
        (such as municipal or agricultural waste treatment); or
            (2) to significantly improve human health or the 
        environment.
    (e) Cost-Sharing.--The Federal share of the cost of activities 
carried out using a grant made under this section shall be not more 
than 70 percent.
    (f) Limitation.--The maximum amount of a grant provided to a 
project under this section shall be $5,000,000.
    (g) Report.--Each year, the Administrator shall submit to Congress 
and make publicly available on the website of the Administrator a 
report that describes any advancements during the previous year in 
development of innovative water technologies made as a result of 
funding provided under this section.
    (h) Funding.--There is authorized to be appropriated to carry out 
this section $50,000,000 for each fiscal year.
Output: Water Technology Acceleration Act of 2016 This bill amends the Federal Water Pollution Control Act and the Safe Drinking Water Act to accelerate the testing, deployment, and commercialization of innovative water technologies.  The Environmental Protection Agency (EPA)must evaluate the barriers impacting greater use of innovative water technology and provide technical assistance to facilitate financial assistance tohelp communities use new technology.The new technology is designed to help communities address wastewater, storm runoff, and drinking water challenges. Additionally, the EPA must carry out a grant program to accelerate the testing and deployment of innovative water technologies that address water challenges. Priority funding must be given to projects that have the potential to: (1)provide substantial cost savings across a sector, or (2)significantly improve human health or the environment.