HR3862-119

What This Bill Does

The Clean Water SRF Parity Act expands who can receive Clean Water State Revolving Fund assistance. It adds qualified nonprofit entities, as determined by EPA, as eligible recipients for construction, acquisition, or improvements to treatment works and other activities already eligible under section 603(c)(1) through (10) of the Federal Water Pollution Control Act. It also creates a special rule allowing SRF financial assistance to owners or operators of privately owned treatment works for improvements to existing works, construction or improvement of another privately owned treatment works, measures to reduce demand through water conservation, efficiency, or reuse, energy-consumption reductions, security improvements, and any other activity eligible under existing categories. States may not provide additional subsidization for qualified nonprofit entity assistance or for privately owned treatment works assistance. Private-treatment-works assistance is allowed only for activities that primarily and directly benefit individuals or entities served by the treatment works, not shareholders or owners, as determined by the state instrumentality administering the revolving fund.

Who Benefits and How

Qualified nonprofit water entities benefit from access to Clean Water SRF assistance for treatment works and eligible water-quality projects. Privately owned treatment works benefit from SRF financing for improvements, conservation, reuse, energy, and security projects. Customers served by private treatment works benefit because funded projects must primarily and directly benefit served users. State water finance agencies benefit from clearer authority to finance nonprofit and private wastewater projects.

Who Bears the Burden and How

EPA water infrastructure staff must determine qualified nonprofit entities and oversee expanded SRF eligibility. State SRF administrators must ensure private-treatment-works assistance benefits served users rather than shareholders or owners. Private treatment works owners cannot receive additional subsidization under the expanded authority. Qualified nonprofit entities cannot receive additional subsidization for the new assistance category.

Key Provisions

• Adds qualified nonprofit entities as eligible Clean Water SRF assistance recipients.
• Expands SRF assistance for privately owned treatment works improvements, construction, conservation, energy, reuse, and security projects.
• Prohibits additional subsidization for nonprofit and privately owned treatment works assistance.
• Requires private-treatment-works projects to primarily and directly benefit served individuals or entities.
• Requires state SRF instrumentalities to determine that assistance does not primarily benefit shareholders or owners.