Affordable Clean Water Infrastructure Act

(1) in paragraph (1)(A)—

(A) in the matter preceding clause (i), by striking in assistance;

(B) in clause (i), by inserting, either as a whole or within the geographic area served by the project for which the eligible recipient seeks additional subsidization before the semicolon; and

(C) in clause (ii)(III), by striking to such ratepayers and inserting to help such ratepayers afford wastewater (including stormwater) services; and

(2) by striking paragraph (3) and inserting the following:

A State may use for providing additional subsidization in a fiscal year under this subsection an amount that does not exceed the greater of—

(i) 50 percent of the total amount received by the State in capitalization grants under this title for the fiscal year; or

(ii) the annual average over the previous 10 fiscal years of the amounts deposited by the State in the State water pollution control revolving fund from State moneys that exceed the amounts required to be so deposited under section 602(b)(2).

For each fiscal year, of the amount of the capitalization grant received by the State under this title, an additional 10 percent may be made available by the State to provide additional subsidization under this subsection to rural, small, and tribal publicly owned treatment works in the State.

To the extent there are sufficient applications for additional subsidization under this subsection that meet the criteria under paragraph (1)(A), a State shall use for providing additional subsidization in a fiscal year under this subsection an amount that is not less than 20 percent of the total amount received by the State in capitalization grants under this title for the fiscal year.

A loan from the water pollution control revolving fund of a State with an interest rate equal to or greater than 0 percent shall not be considered additional subsidization for the purposes of this subsection.