Half-Century Update for Water Access and Affordability Act

(1) Safe, accessible, and affordable drinking water is essential to the protection of public health.

(2) After 50 years, the Safe Drinking Water Act (42 U.S.C. 300f et seq.) has demonstrably improved drinking water quality across the nation. However, millions of Americans are unable to afford their water bills and many water utilities have been unable to fund and maintain infrastructure critical to providing high quality, reliable, and affordable drinking water. Therefore, the Federal Government needs to increase water assistance to households and communities.

(3) The Federal Government provides low-income household assistance for basic necessities, including food, housing, and energy. Water is also a basic necessity and requires assistance from the Federal Government.

(4) Every low-income household should be able to access water assistance.

(5) Other programs that provide financial and technical assistance for safe drinking water should incorporate water affordability as a goal.

(6) More effective protection of public health requires—

(A) a Federal commitment to ensuring the collection and transparency of data on water safety, access, and affordability at a national level;

(B) a Federal commitment to water access for all Native American Tribes; and

(C) a Federal commitment to having water utilities capable of serving safe and affordable drinking water to all households, including support for and oversight of State drinking water programs in the areas of financial and technical assistance, equitable utility consolidations, workforce development and training, community engagement, and enforcement.

(7) Consumers served by public water systems should be provided with easy-to-understand information on the cost of their water, opportunities to reduce their bill, and bill payment assistance programs.

In this section:

The term Administrator means the Administrator of the Environmental Protection Agency.

The term area median income means the unadjusted median income for an area determined by the Secretary of Housing and Urban Development under section 16(a) of the United States Housing Act of 1937 (42 U.S.C. 1437n(a)).

The term community water system has the meaning given that term in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f).

The term eligible entity means an eligible water system, a State, or an Indian Tribe.

The term eligible water system means—

(A) a community water system that serves a population of 100,000 or more; or

(B) a treatment works that serves a population of 100,000 or more.

The term household means any individual or group of individuals who are living together as 1 economic unit.

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.);

(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);

(v) assistance under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.); or

(vi) assistance under the special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786); or

(B) that has an income that, as determined by the entity that is implementing a water service access program in the area in which the household is located, does not exceed the greater of—

(i) an amount equal to 200 percent of the poverty level; and

(ii) an amount equal to 80 percent of the area median income.

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.

The term small and mid-size water systems means—

(A) community water systems that serve a population of less than 100,000; and

(B) treatment works that serve a population of less than 100,000.

The term State means a State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

The term technical assistance provider means a community-based organization, environmental justice organization, university, rural assistance corporation, energy utility, business, or other organization identified by the Administrator as having relevant expertise in community outreach, assistance program enrollment processes and administration, utility data and billing systems, developing applications for funding, or other areas determined appropriate by the Administrator.

The term treatment works has the meaning given that term in section 212 of the Federal Water Pollution Control Act (33 U.S.C. 1292).

The term water crisis means a weather-related or supply shortage emergency or other household water-related emergency, including disconnection of water service for nonpayment, imminent disconnection of water service for nonpayment, or other emergency threatening a household’s access to safe water services.

The term water service means—

(A) drinking water service provided by a community water system; or

(B) sanitary sewer service provided by a treatment works.

The term water service access program means a program to provide low-income households the ability to maintain access to water services through the receipt of Federal financial assistance.

Not later than 12 months after the date of enactment of this section, the Administrator shall establish a Federal low-income water assistance program to assist low-income households in maintaining access to affordable water services, which program shall include—

(A) development and implementation of water service access programs that include funding to assist low-income households;

(B) technical assistance for the implementation of such water service access programs; and

(C) data collection and reporting.

The Administrator shall establish a community advisory committee for each region of the Environmental Protection Agency to provide advice and recommendations to each entity implementing a water service access program under subsection (c) within the region.

The Administrator shall include in each community advisory committee established under this paragraph members from low-income communities, non-governmental organizations, and other stakeholders determined relevant by the Administrator.

The Administrator shall—

(A) develop a water service access program; and

(B) implement such water service access program in each State.

Except as provided in clause (ii), upon application by an eligible entity under subparagraph (B), the Administrator may delegate to the eligible entity the implementation of a water service access program for—

(I) with respect to an eligible entity that is an eligible water system, the service area of such eligible water system;

(II) with respect to an eligible entity that is an Indian Tribe, the geographic area under the jurisdiction of the Indian Tribe; and

(III) with respect to an eligible entity that is a State, the area within the geographic boundaries of the State.

If the Administrator delegates the implementation of a water service access program for an area to an eligible entity that is an eligible water system or an Indian Tribe, the Administrator shall withhold or withdraw, as applicable, delegation for such area from the State in which such area is located.

To implement a water service access program under this subsection, an eligible entity shall submit to the Administrator an application that demonstrates that—

(i) the water service access program proposed to be implemented by the eligible entity—

(I) meets the requirements established under paragraph (3); and

(II) was developed in accordance with paragraph (4); and

(ii) the eligible entity has the capacity to—

(I) make assistance under the water service access program available to all low-income households in its jurisdiction or service area, without regard to where that household resides within the jurisdiction or service area;

(II) fulfill the data collection and management requirements set forth in subsection (e); and

(III) develop and implement, in coordination with technical assistance providers, an effective community outreach plan to inform low-income households of the water service access program and assist with enrollment.

If the Administrator delegates implementation of a water service access program to an eligible entity under this paragraph, the Administrator shall award a grant to the eligible entity to implement such program.

A grant awarded under this paragraph—

(I) shall not be used to replace funds for any existing similar program of a State, community water system, or treatment works to assist low-income households in maintaining access to affordable water services in the area for which the water service access program will be implemented; but

(II) may be used to supplement or enhance such a program.

If the Administrator determines, based on information required to be submitted to the Administrator under this section by an eligible entity implementing a water service access program under this subsection, that the water service access program is not being implemented in compliance with all requirements of this section, the Administrator shall promptly notify the eligible entity of such noncompliance, the necessary remedial actions, and a deadline for promptly implementing such remedial actions.

The Administrator shall revoke delegation under this subsection to an eligible entity if the eligible entity fails to take the necessary remedial actions by the deadline set by the Administrator under clause (i).

If the Administrator revokes delegation under this subsection to an eligible entity, implementation of a water service access program under this subsection for the previously delegated area shall revert to the Administrator, who may delegate such implementation to the State in which such area is located if such State is implementing a water service access program pursuant to subparagraph (A).

Not later than 6 months after the date of enactment of this section, the Administrator shall establish minimum requirements for water service access programs developed and implemented under this subsection.

In carrying out subparagraph (A), the Administrator shall—

(i) consult with relevant stakeholders, including frontline community groups, Tribal communities, and technical assistance providers; and

(ii) provide an opportunity for public comment on the proposed requirements.

The minimum requirements established under subparagraph (A) for a water service access program shall include—

(i) provisions to promote universal access for low-income households to assistance under the water service access program (including low-income households in which none of the individual members is a named account holder of the applicable community water system or treatment works), including provisions for—

(I) sharing of data from other administrators of Federal, State, or local income-qualified assistance programs to facilitate automatic enrollment in the water service access program of all households participating in those other programs that are eligible to receive assistance under the water service access program, without the need for those households to apply separately for the water service access program;

(II) allowance for community water systems and treatment works to receive program funds for low-income household debt reduction and directly apply such funds to customer accounts;

(III) allowance for self-attestation by households served by community water systems or treatment works of eligibility, including self-attestation of income qualification or enrollment in an existing Federal, State, or local assistance program on the basis of income;

(IV) with respect to any portion of the process for enrollment in the water service access program for which a signature of a member of a low-income household is required, allowance for the use of an electronic signature; and

(V) prohibitions on—

(aa) asset tests and in-person enrollment appointments as requirements to receive assistance under the water service access program; and

(bb) citizenship or legal residency requirements for members of a low-income household in order for the household to receive assistance under the water service access program; and

(ii) assistance to low-income households served by community water systems or treatment works (including low-income households in which none of the individual members is a named account holder of the applicable community water system or treatment works), with greater assistance amounts provided to households with higher water service costs and lower incomes, taking into account household size, in the form of—

(I) direct financial assistance, including bill discounting, percentage-of-income payment plan, a lifeline rate, or any other form of direct assistance identified by the Administrator;

(II) debt relief;

(III) water crisis assistance; and

(IV) water efficiency assistance, including providing or subsidizing the cost of installation of water-efficient appliances and fixtures or leak detection and plumbing repair work;

(iii) provisions prohibiting the inclusion of eligibility restrictions or enrollment requirements not specifically required by this section;

(iv) provisions, including penalties on community water systems and treatment works for violations, as established by the Administrator, to ensure that no household receiving assistance under the program—

(I) is disconnected from water service, loses access to or ownership of its current housing, or is otherwise denied access to an amount and flow of water sufficient to meet its essential needs because of the household’s inability to pay bills owed to a community water system or treatment works, or, where the water service account-holder for the household’s dwelling is not a member of the household, due to the failure of the account-holder to pay bills owed to the community water system or treatment works; or

(II) is required to pay any fees, charges, or deposits associated with late payments, unpaid bills, service initiation, or service reconnection;

(v) procedures that minimize burdens on low-income households of filing a complete application for assistance under the program, including allowing for alternative forms of identification;

(vi) provisions that require equal access to assistance to households that pay bills for water services directly and households the water services of which are included in rent or other payments, including by providing for households that cannot receive assistance through a bill for water services other types of assistance, such as cash assistance, credits on a different utility bill, and receipt of water quality and efficiency upgrades and devices; and

(vii) coordination of development and implementation of the water service access program with other existing water assistance programs, energy assistance programs, and other relevant Federal, State, and local programs that provide financial or other assistance to low-income households.

Each entity developing or implementing a water service access program under this subsection shall, each fiscal year—

(A) consult with the applicable community advisory committee established under subsection (b)(2), Tribal communities, and other community representatives, as applicable; and

(B) provide an opportunity for a public hearing and public comment on the water service access program.

The Administrator shall provide funding to technical assistance providers to—

(A) facilitate enrollment by low-income households in water service access programs implemented under this section; and

(B) assist small and mid-size water systems in participating in water service access programs implemented under this section.

The Administrator shall establish minimum requirements for technical assistance provided under paragraph (1), which shall include requirements for—

(A) outreach to low-income households in communities with high incidence of disconnections of water service or that may face difficulty enrolling in or accessing assistance through a water service access program, including households in geographically remote locations, households lacking access to telecommunications networks (including home broadband internet service), households with limited English proficiency, and households in which an individual with a disability (as defined in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102)) resides; and

(B) developing the capacity of small and mid-size water systems to—

(i) carry out any applicable activities necessary for assistance to be provided pursuant to a water service access program implemented under this section; and

(ii) provide complete and accurate information to the entity implementing an applicable water service access program as necessary for such entity to comply with the reporting requirements of this section.

Of the funds made available to carry out this subsection, the Administrator shall ensure that a minimum of 20 percent is used for—

(i) the improvement of data management systems, including billing systems, websites, and electronic customer communications, for small and mid-size water systems; and

(ii) implementation of easily accessible enrollment and data transmission technologies, such as smartphone applications.

Of the funds made available to carry out this subsection, the Administrator shall ensure that a minimum of 20 percent is provided to technical service providers that are environmental justice organizations and community-based organizations to build capacity and provide assistance for under-resourced communities to fully access a water service access program.

The Administrator shall engage with environmental justice organizations and community-based organizations—

(A) in establishing the minimum requirements under paragraph (2); and

(B) to encourage their participation in the provision of technical assistance under this subsection, including by making them aware of the funds set aside under paragraph (3)(B).

Each eligible entity implementing a water service access program under this section shall annually submit to the Administrator, in a manner determined by the Administrator, information regarding the applicable water service access program, including—

(i) the demonstrable impacts of the program on bill debt and timely bill payments for low-income households that receive assistance under the program, based on data from before and after the implementation of the program, including, for each county and ZIP code within the geographic area served by the program—

(I) the number of households that experienced a disconnection of water service for nonpayment and the number of households for which disconnection was avoided directly due to the provision of assistance under the program;

(II) the number of households and amount of debt subject to sale or enforcement of property liens and the number of households for which sale or enforcement of property liens was avoided directly due to the provision of assistance under the program;

(III) the number of households enrolled in the program;

(IV) the benefit levels, amount of debt reduction, and total amount of assistance provided to enrolled households; and

(V) the number of enrolled households reconnected to water service and a summary of the fees and charges waived for enrolled households, including disconnection and reconnection charges, late payment fees, and interest charges;

(ii) revenue collection information from each community water system and treatment works within the geographic area served by the program, including—

(I) rate design for residential customers;

(II) billing frequency;

(III) fees, taxes, and other charges that are included on every residential bill or that are billed to a residential customer under specific circumstances but are not included on every residential bill; and

(IV) projected rate increases during the 5-year period following submission of the information under this subsection;

(iii) information regarding any other water service customer assistance programs within the geographic area served by the program, including information about such other programs relating to rate structures, rebates, discounts, billing methods that average rates over the course of a year (known as budget billing), and procedures that ensure that households receive notice and an opportunity to dispute charges before service is disconnected or interrupted due to non-payment; and

(iv) other relevant information required by the Administrator.

The Administrator may postpone a requirement to include in an annual submission data required under subparagraph (A), taking into consideration the availability of technical assistance pursuant to subsection (d) related to data reporting.

The Administrator shall annually—

(i) make information on water service access programs implemented under this section available in an easily accessible format on the website of the Environmental Protection Agency, including—

(I) a list of all such water service access programs and contact information for the entities implementing such programs; and

(II) the information submitted under subparagraph (A); and

(ii) publish a report that compiles and summarizes the information submitted under this paragraph.

An eligible water system that is implementing a water service access program pursuant to this section shall report to each agency or office of the State in which the water service access program is implemented that funds or regulates water systems—

(A) the amount of all grants it receives under this section; and

(B) all information it submits to the Administrator under paragraph (1) and subsection (c)(2)(B).

In the case of any individual who is a member of a low-income household receiving assistance under a water service access program implemented under this section—

(i) for purposes of the Internal Revenue Code of 1986, gross income shall not include any such assistance provided to such individual; and

(ii) notwithstanding any other provision of law, any such assistance provided to such individual shall not be considered income or resources of such household (or any member thereof) for any purpose under any other Federal or State law, including any law relating to taxation or governmental assistance programs.

A grant received under this section by an eligible water system that is subject to Federal or State income tax shall not be considered income for purposes of any Federal or State income tax law if the Administrator determines that the eligible water system complied with the requirements established under subsection (c)(3)(C)(iv) during the year in which the grant was received.

Notwithstanding section 401(c) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(c)), assistance provided to a low-income household under a water service access program implemented under this section shall not be considered a Federal public benefit for purposes of title IV of such Act (8 U.S.C. 1601 et seq.).

A community water system or treatment works that is not wholly-owned by a governmental entity may not use any funds received under or pursuant to this section to provide any financial benefits to the owners of the community water system or treatment works, including increased rates of return on capital investments, dividends, and interest.

Not later than 5 years after the date on which grant funds are first disbursed to an eligible entity under this section, and every 5 years thereafter, the Administrator shall submit to Congress a report on the results of the Federal low-income water assistance program established under this section, which report shall include—

(1) an assessment of the remaining need and obstacles to achieving universal water service access and affordability; and

(2) relevant findings and information from other programs and assessments, including—

(A) State revolving fund programs under the Safe Drinking Water Act and the Federal Water Pollution Control Act;

(B) State drinking water program plans, as applicable;

(C) the national drinking water infrastructure needs survey and assessment conducted under section 1452(h) of the Safe Drinking Water Act (42 U.S.C. 300j–12(h)); and

(D) the National Climate Assessment carried out pursuant to the Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.).

The Director of the United States Census Bureau shall, in coordination with the Administrator, add one or more questions into the American Community Survey to ascertain whether households have faced difficulty paying for water services.

The Administrator shall use information from the American Community Survey to inform the reports submitted under subsection (g).

There is authorized to be appropriated to carry out this section $20,000,000,000 for each of fiscal years 2025 through 2035.

The Administrator shall establish a formula to annually allocate funds made available to carry out this section among entities implementing water service access programs, based on—

(i) number of low-income persons and households served by each such program;

(ii) technical assistance needs of eligible entities implementing such programs, including needs for enrollment support, community outreach, and data collection and reporting;

(iii) administrative costs of implementing such programs;

(iv) water service costs in the area served by each such program;

(v) exceptional community needs owing to water quality and water scarcity; and

(vi) any other criteria determined relevant by the Administrator.

In establishing the allocation formula under subparagraph (A), the Administrator shall—

(i) ensure that equal amounts of funds are made available with respect to drinking water services and sanitary sewer services; and

(ii) determine appropriate allotments for the provision of technical assistance through each water service access program.

The Administrator may reserve up to 10 percent of funds made available to carry out this section for each fiscal year to provide supplementary funds for water service access programs that serve—

(i) territories, or areas under the jurisdiction of an Indian Tribe, that have historically lacked equitable access to Federal and State financial assistance for drinking water and wastewater infrastructure; and

(ii) communities experiencing lack of access to safe public drinking water services to meet essential household needs.

Section 1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j–12(b)) is amended—

(A) in paragraph (1), by inserting in accordance with paragraph (4) after public review and comment; and

(B) by adding at the end the following:

In preparing an intended use plan under paragraph (1), a State shall—

(A) before adopting a final plan—

(i) make a draft of the plan, and instructions for how to provide comments on the draft, available on a publicly accessible website;

(ii) provide a minimum of 30 days for public comment on the draft;

(iii) provide written responses to timely submitted written public comments on the draft; and

(iv) after providing such written responses, hold at least one public hearing on the draft;

(B) make the final plan available on a publicly accessible website; and

(C) allow for submission of applications for financial and technical assistance at any time.

Not later than one year after the date of enactment of this paragraph, the Administrator shall promulgate regulations to increase transparency and promote evaluation of—

(I) the distribution by States of the amounts available to the State loan fund among the intended uses identified in a plan under this subsection; and

(II) the criteria and methods established by States under paragraph (2)(B) for the distribution of funds.

The Administrator shall include in the regulations promulgated under clause (i)—

(I) a requirement that States provide to the Administrator data about—

(aa) funded and unfunded projects that are eligible for assistance from the State loan fund; and

(bb) the geographic and socioeconomic distribution of such funded projects, including the amount and percentage of assistance allocated to projects that serve disadvantaged communities;

(II) creation of a central online repository for intended use plans and data provided pursuant to subclause (I); and

(III) creation of an advisory group within each State to provide advice and recommendations on intended use plans, State loan fund policies, and implementation of such plans and policies.

The Administrator shall make available on a publicly accessible website an annual report, prepared based on the data provided pursuant to subparagraph (A)(ii)(I) and feedback from State advisory groups created under subparagraph (A)(ii)(III), which shall include—

(i) information on and analysis of the use by each State of the amounts available to the State loan fund of the State, including, for each State, the amount of assistance provided under this section, and the number of public water systems receiving such assistance;

(ii) data and metrics on disadvantaged communities served and technical assistance and outreach efforts; and

(iii) ongoing challenges at the national and State level.

Section 1452(d) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)) is amended—

(A) in paragraph (3), by adding at the end the following: Each State shall, during calendar year 2026 and every three years thereafter, conduct a review of, and if appropriate revise, the affordability criteria established by the State under this subsection.; and

(B) by adding at the end the following:

Not later than one year after the date of enactment of this paragraph, the Administrator shall promulgate regulations to expedite the provision of assistance to, and provide flexible repayment options for, disadvantaged communities receiving assistance under this section.

Section 1452(g)(2)(A)(i) of the Safe Drinking Water Act (42 U.S.C. 300j–12(g)(2)(A)(i)) is amended—

(A) in the matter preceding subclause (I), by striking may and inserting shall; and

(B) in subclause (I), by striking; and and inserting, except that a State may not use more than 30 percent of such amount to cover costs under this subclause; and.

Section 603(i)(2) of the Federal Water Pollution Control Act (33 U.S.C. 1383(i)(2)) is amended by adding at the end the following:

Each State shall, during calendar year 2026 and every three years thereafter, conduct a review of, and if appropriate revise, the affordability criteria established by the State under this paragraph.

Not later than one year after the date of enactment of this subparagraph, the Administrator shall promulgate regulations to expedite the provision by a State of assistance to, and flexible repayment options for, municipalities that meet the affordability criteria established by the State under this paragraph.

Section 603(k) of the Federal Water Pollution Control Act (33 U.S.C. 1383(k)) is amended by striking may and inserting shall.

Section 606 of the Federal Water Pollution Control Act (33 U.S.C. 1386) is amended—

(A) in subsection (c), in the matter preceding paragraph (1), by inserting in accordance with subsection (g) after public comment and review; and

(B) by adding at the end the following:

In preparing an intended use plan under subsection (c), a State shall—

(1) before adopting a final plan—

(A) make a draft of the plan, and instructions for how to provide comments on the draft, available on a publicly accessible website;

(B) provide a minimum of 30 days for public comment on the draft;

(C) provide written responses to timely submitted written public comments on the draft; and

(D) after providing such written responses, hold at least one public hearing on the draft;

(2) make the final plan available on a publicly accessible website; and

(3) allow for submission of applications for financial and technical assistance at any time.

Not later than one year after the date of enactment of this subsection, the Administrator shall promulgate regulations to increase transparency and promote evaluation of—

(i) the distribution by States of the amounts available to the State water pollution control revolving fund among the intended uses identified in a plan under subsection (c); and

(ii) the criteria and methods established by States under subsection (c)(5) for the distribution of funds.

The Administrator shall include in the regulations promulgated under subparagraph (A)—

(i) a requirement that States provide to the Administrator, in each annual report provided under subsection (d), data about—

(I) funded and unfunded projects that are eligible for assistance from the State water pollution control revolving fund; and

(II) the geographic and socioeconomic distribution of such funded projects, including the amount and percentage of assistance allocated to projects that serve municipalities that meet the affordability criteria established by the State under section 603(i)(2);

(ii) creation of a central online repository for intended use plans and data provided pursuant to clause (i); and

(iii) creation of an advisory group within each State to provide advice and recommendations on intended use plans, State water pollution control revolving fund policies, and implementation of such plans and policies.

The Administrator shall make available on a publicly accessible website an annual report, prepared based on the data provided pursuant to paragraph (1)(B)(i) and feedback from State advisory groups created under paragraph (1)(B(iii), which shall include—

(A) information on and analysis of the use by each State of the amounts available to the State water pollution control revolving fund of the State, including, for each State, the amount of assistance provided under this title, and the number of treatment works with respect to which such assistance was provided;

(B) data and metrics on disadvantaged communities served and technical assistance and outreach efforts; and

(C) ongoing challenges at the national and State level.