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115th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {      115-380

======================================================================



 
             DRINKING WATER SYSTEM IMPROVEMENT ACT OF 2017

                                _______
                                

November 1, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3387]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3387) to amend the Safe Drinking Water Act to 
improve public water systems and enhance compliance with such 
Act, and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    12
Background and Need for Legislation..............................    12
Committee Action.................................................    15
Committee Votes..................................................    16
Oversight Findings and Recommendations...........................    16
New Budget Authority, Entitlement Authority, and Tax Expenditures    17
Congressional Budget Office Estimate.............................    17
Federal Mandates Statement.......................................    23
Statement of General Performance Goals and Objectives............    24
Duplication of Federal Programs..................................    24
Committee Cost Estimate..........................................    24
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    24
Disclosure of Directed Rule Makings..............................    24
Advisory Committee Statement.....................................    24
Applicability to Legislative Branch..............................    24
Section-by-Section Analysis of the Legislation...................    24
Changes in Existing Law Made by the Bill, as Reported............    39
Additional Views.................................................    99

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Drinking Water System Improvement Act 
of 2017''.

SEC. 2. IMPROVED CONSUMER CONFIDENCE REPORTS.

  Section 1414(c)(4) of the Safe Drinking Water Act (42 U.S.C. 300g-
3(c)(4)) is amended--
          (1) in the heading for subparagraph (A), by striking ``Annual 
        reports'' and inserting ``Reports'';
          (2) in subparagraph (A), by inserting ``, or provide by 
        electronic means,'' after ``to mail'';
          (3) in subparagraph (B)--
                  (A) in clause (iv), by striking ``the Administrator, 
                and'' and inserting ``the Administrator, including 
                corrosion control efforts, and''; and
                  (B) by adding at the end the following clause:
                          ``(vii) Identification of, if any--
                                  ``(I) exceedances described in 
                                paragraph (1)(D) for which corrective 
                                action has been required by the 
                                Administrator or the State (in the case 
                                of a State exercising primary 
                                enforcement responsibility for public 
                                water systems) during the monitoring 
                                period covered by the consumer 
                                confidence report; and
                                  ``(II) violations that occurred 
                                during the monitoring period covered by 
                                the consumer confidence report.''; and
          (4) by adding at the end the following new subparagraph:
                  ``(F) Revisions.--
                          ``(i) Understandability and frequency.--Not 
                        later than 24 months after the Drinking Water 
                        System Improvement Act of 2017, the 
                        Administrator, in consultation with the parties 
                        identified in subparagraph (A), shall issue 
                        revisions to the regulations issued under 
                        subparagraph (A)--
                                  ``(I) to increase--
                                          ``(aa) the readability, 
                                        clarity, and understandability 
                                        of the information presented in 
                                        consumer confidence reports; 
                                        and
                                          ``(bb) the accuracy of 
                                        information presented, and risk 
                                        communication, in consumer 
                                        confidence reports; and
                                  ``(II) with respect to community 
                                water systems that serve 10,000 or more 
                                persons, to require each such community 
                                water system to provide, by mail, 
                                electronic means, or other methods 
                                described in clause (ii), a consumer 
                                confidence report to each customer of 
                                the system at least biannually.
                          ``(ii) Electronic delivery.--Any revision of 
                        regulations pursuant to clause (i) shall allow 
                        delivery of consumer confidence reports by 
                        methods consistent with methods described in 
                        the memorandum `Safe Drinking Water Act-
                        Consumer Confidence Report Rule Delivery 
                        Options' issued by the Environmental Protection 
                        Agency on January 3, 2013.''.

SEC. 3. CONTRACTUAL AGREEMENTS.

  (a) In General.--Section 1414(h)(1) of the Safe Drinking Water Act 
(42 U.S.C. 300g-3(h)(1)) is amended--
          (1) in subparagraph (B), by striking ``or'' after the 
        semicolon;
          (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; or''; and
          (3) by adding at the end the following new subparagraph:
                  ``(D) entering into a contractual agreement for 
                significant management or administrative functions of 
                the system to correct violations identified in the 
                plan.''.
  (b) Technical Amendment.--Section 1414(i)(1) of the Safe Drinking 
Water Act (42 U.S.C. 300g-3(i)(1)) is amended by inserting a comma 
after ``1417''.

SEC. 4. CONSOLIDATION.

  (a) Mandatory Assessment and Consolidation.--Subsection (h) of 
section 1414 of the Safe Drinking Water Act (42 U.S.C. 300g-3) is 
amended by adding at the end the following:
          ``(3) Authority for mandatory assessment and mandatory 
        consolidation.--
                  ``(A) Mandatory assessment.--A State with primary 
                enforcement responsibility or the Administrator (if the 
                State does not have primary enforcement responsibility) 
                may require the owner or operator of a public water 
                system to assess options for consolidation, or transfer 
                of ownership of the system, as described in paragraph 
                (1), if--
                          ``(i) the public water system--
                                  ``(I) has repeatedly violated one or 
                                more national primary drinking water 
                                regulations and such repeated 
                                violations are likely to adversely 
                                affect human health; and
                                  ``(II)(aa) is unable or unwilling to 
                                take feasible and affordable actions, 
                                as identified by the State with primary 
                                enforcement responsibility or the 
                                Administrator (if the State does not 
                                have primary enforcement 
                                responsibility), that will result in 
                                the public water system complying with 
                                the national primary drinking water 
                                regulations described in subclause (I), 
                                including accessing technical 
                                assistance and financial assistance 
                                through the State loan fund pursuant to 
                                section 1452; or
                                  ``(bb) has already undertaken actions 
                                described in item (aa) without 
                                achieving compliance;
                          ``(ii) such consolidation or transfer is 
                        feasible; and
                          ``(iii) such consolidation or transfer could 
                        result in greater compliance with national 
                        primary drinking water regulations.
                  ``(B) Mandatory consolidation.--After review of an 
                assessment under subparagraph (A), a State with primary 
                enforcement responsibility or the Administrator (if the 
                State does not have primary enforcement responsibility) 
                may require the owner or operator of a public water 
                system that completed such assessment to submit a plan 
                for consolidation, or transfer of ownership of the 
                system, under paragraph (1), and complete the actions 
                required under such plan if--
                          ``(i) the owner or operator of the public 
                        water system--
                                  ``(I) has not taken steps to complete 
                                consolidation;
                                  ``(II) has not transferred ownership 
                                of the system; or
                                  ``(III) was unable to achieve 
                                compliance after taking the actions 
                                described in clause (i)(II)(aa) of 
                                subparagraph (A);
                          ``(ii) since completing such assessment, the 
                        public water system has violated one or more 
                        national primary drinking water regulations and 
                        such violations are likely to adversely affect 
                        human health; and
                          ``(iii) such consolidation or transfer is 
                        feasible.
          ``(4) Financial assistance.--Notwithstanding section 
        1452(a)(3), a public water system undertaking consolidation or 
        transfer of ownership or alternative actions to achieve 
        compliance pursuant to this subsection may receive assistance 
        under section 1452 to carry out such consolidation, transfer, 
        or alternative actions.
          ``(5) Protection of nonresponsible system.--
                  ``(A) Identification of liabilities.--
                          ``(i) In general.--An owner or operator of a 
                        public water system submitting a plan pursuant 
                        to paragraph (3) shall identify as part of such 
                        plan--
                                  ``(I) any potential liability for 
                                damages arising from each specific 
                                violation identified in the plan of 
                                which the owner or operator is aware; 
                                and
                                  ``(II) any funds or other assets that 
                                are available to satisfy such 
                                liability, as of the date of submission 
                                of such plan, to the public water 
                                system that committed such violation.
                          ``(ii) Inclusion.--In carrying out clause 
                        (i), the owner or operator shall take 
                        reasonable steps to ensure that all potential 
                        liabilities for damages arising from each 
                        specific violation identified in the plan 
                        submitted pursuant to paragraph (3) are 
                        identified.
                  ``(B) Reservation of funds.--A public water system 
                that has completed the actions required under a plan 
                submitted and approved pursuant to paragraph (3) shall 
                not be liable under this title for a violation of this 
                title identified in the plan, except to the extent to 
                which funds or other assets are identified pursuant to 
                subparagraph (A)(i)(II) as available to satisfy such 
                liability.
          ``(6) Regulations.--Not later than 2 years after the date of 
        enactment of the Drinking Water System Improvement Act of 2017, 
        the Administrator shall promulgate regulations to implement 
        paragraphs (3), (4), and (5).''.
  (b) Retention of Primary Enforcement Authority.--
          (1) In general.--Section 1413(a) of the Safe Drinking Water 
        Act (42 U.S.C. 300g-2(a)) is amended--
                  (A) in paragraph (5), by striking ``; and'' and 
                inserting a semicolon;
                  (B) by redesignating paragraph (6) as paragraph (7); 
                and
                  (C) by inserting after paragraph (5) the following 
                new paragraph:
          ``(6) has adopted and is implementing procedures for 
        requiring public water systems to assess options for, and 
        complete, consolidation or transfer of ownership, in accordance 
        with the regulations issued by the Administrator under section 
        1414(h)(6); and''.
          (2) Conforming amendment.--Section 1413(b)(1) of the Safe 
        Drinking Water Act (42 U.S.C. 300g-2(b)(1)) is amended by 
        striking ``of paragraphs (1), (2), (3), and (4)''.

SEC. 5. IMPROVED ACCURACY AND AVAILABILITY OF COMPLIANCE MONITORING 
                    DATA.

  Section 1414 of the Safe Drinking Water Act (42 U.S.C. 300g-3) is 
amended by adding at the end the following new subsection:
  ``(j) Improved Accuracy and Availability of Compliance Monitoring 
Data.--
          ``(1) Strategic plan.--Not later than 1 year after the date 
        of enactment of this subsection, the Administrator, in 
        coordination with States, public water systems, and other 
        interested stakeholders, shall develop and provide to Congress 
        a strategic plan for improving the accuracy and availability of 
        monitoring data collected to demonstrate compliance with 
        national primary drinking water regulations and submitted--
                  ``(A) by public water systems to States; or
                  ``(B) by States to the Administrator.
          ``(2) Evaluation.--In developing the strategic plan under 
        paragraph (1), the Administrator shall evaluate any challenges 
        faced--
                  ``(A) in ensuring the accuracy and integrity of 
                submitted data described in paragraph (1);
                  ``(B) by States and public water systems in 
                implementing an electronic system for submitting such 
                data, including the technical and economic feasibility 
                of implementing such a system; and
                  ``(C) by users of such electronic systems in being 
                able to access such data.
          ``(3) Findings and recommendations.--The Administrator shall 
        include in the strategic plan provided to Congress under 
        paragraph (1)--
                  ``(A) a summary of the findings of the evaluation 
                under paragraph (2); and
                  ``(B) recommendations on practicable, cost-effective 
                methods and means that can be employed to improve the 
                accuracy and availability of submitted data described 
                in paragraph (1).
          ``(4) Consultation.--In developing the strategic plan under 
        paragraph (1), the Administrator may, as appropriate, consult 
        with States or other Federal agencies that have experience 
        using practicable methods and means to improve the accuracy and 
        availability of submitted data described in such paragraph.''.

SEC. 6. ASSET MANAGEMENT.

  Section 1420 of the Safe Drinking Water Act (42 U.S.C. 300g-9) is 
amended--
          (1) in subsection (c)(2)--
                  (A) in subparagraph (D), by striking ``; and'' and 
                inserting a semicolon;
                  (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(F) a description of how the State will, as 
                appropriate--
                          ``(i) encourage development by public water 
                        systems of asset management plans that include 
                        best practices for asset management; and
                          ``(ii) assist, including through the 
                        provision of technical assistance, public water 
                        systems in training operators or other relevant 
                        and appropriate persons in implementing such 
                        asset management plans.'';
          (2) in subsection (c)(3), by inserting ``, including efforts 
        of the State to encourage development by public water systems 
        of asset management plans and to assist public water systems in 
        training relevant and appropriate persons in implementing such 
        asset management plans'' after ``public water systems in the 
        State''; and
          (3) in subsection (d), by adding at the end the following new 
        paragraph:
          ``(5) Information on asset management practices.--Not later 
        than 5 years after the date of enactment of this paragraph, and 
        not less often than every 5 years thereafter, the Administrator 
        shall review and, if appropriate, update educational materials, 
        including handbooks, training materials, and technical 
        information, made available by the Administrator to owners, 
        managers, and operators of public water systems, local 
        officials, technical assistance providers (including nonprofit 
        water associations), and State personnel concerning best 
        practices for asset management strategies that may be used by 
        public water systems.''.

SEC. 7. COMMUNITY WATER SYSTEM RISK AND RESILIENCE.

  (a) In General.--Section 1433 of the Safe Drinking Water Act (42 
U.S.C. 300i-2) is amended to read as follows:

``SEC. 1433. COMMUNITY WATER SYSTEM RISK AND RESILIENCE.

  ``(a) Risk and Resilience Assessments.--
          ``(1) In general.--Each community water system serving a 
        population of greater than 3,300 persons shall conduct an 
        assessment of the risks to, and resilience of, its system. Such 
        an assessment--
                  ``(A) shall include an assessment of--
                          ``(i) the risk to the system from malevolent 
                        acts and natural hazards;
                          ``(ii) the resilience of the pipes and 
                        constructed conveyances, physical barriers, 
                        source water, water collection and intake, 
                        pretreatment, treatment, storage and 
                        distribution facilities, electronic, computer, 
                        or other automated systems (including the 
                        security of such systems) which are utilized by 
                        the system;
                          ``(iii) the monitoring practices of the 
                        system;
                          ``(iv) the financial infrastructure of the 
                        system;
                          ``(v) the use, storage, or handling of 
                        various chemicals by the system; and
                          ``(vi) the operation and maintenance of the 
                        system; and
                  ``(B) may include an evaluation of capital and 
                operational needs for risk and resilience management 
                for the system.
          ``(2) Baseline information.--The Administrator, not later 
        than August 1, 2019, after consultation with appropriate 
        departments and agencies of the Federal Government and with 
        State and local governments, shall provide baseline information 
        on malevolent acts of relevance to community water systems, 
        which shall include consideration of acts that may--
                  ``(A) substantially disrupt the ability of the system 
                to provide a safe and reliable supply of drinking 
                water; or
                  ``(B) otherwise present significant public health or 
                economic concerns to the community served by the 
                system.
          ``(3) Certification.--
                  ``(A) Certification.--Each community water system 
                described in paragraph (1) shall submit to the 
                Administrator a certification that the system has 
                conducted an assessment complying with paragraph (1). 
                Such certification shall be made prior to--
                          ``(i) March 31, 2020, in the case of systems 
                        serving a population of 100,000 or more;
                          ``(ii) December 31, 2020, in the case of 
                        systems serving a population of 50,000 or more 
                        but less than 100,000; and
                          ``(iii) June 30, 2021, in the case of systems 
                        serving a population greater than 3,300 but 
                        less than 50,000.
                  ``(B) Review and revision.--Each community water 
                system described in paragraph (1) shall review the 
                assessment of such system conducted under such 
                paragraph at least once every 5 years after the 
                applicable deadline for submission of its certification 
                under subparagraph (A) to determine whether such 
                assessment should be revised. Upon completion of such a 
                review, the community water system shall submit to the 
                Administrator a certification that the system has 
                reviewed its assessment and, if applicable, revised 
                such assessment.
          ``(4) Contents of certifications.--A certification required 
        under paragraph (3) shall contain only--
                  ``(A) information that identifies the community water 
                system submitting the certification;
                  ``(B) the date of the certification; and
                  ``(C) a statement that the community water system has 
                conducted, reviewed, or revised the assessment, as 
                applicable.
          ``(5) Provision to other entities.--No community water system 
        shall be required under State or local law to provide an 
        assessment described in this section (or revision thereof) to 
        any State, regional, or local governmental entity solely by 
        reason of the requirement set forth in paragraph (3) that the 
        system submit a certification to the Administrator.
  ``(b) Emergency Response Plan.--Each community water system serving a 
population greater than 3,300 shall prepare or revise, where necessary, 
an emergency response plan that incorporates findings of the assessment 
conducted under subsection (a) for such system (and any revisions 
thereto). Each community water system shall certify to the 
Administrator, as soon as reasonably possible after the date of 
enactment of the Drinking Water System Improvement Act of 2017, but not 
later than 6 months after completion of the assessment under subsection 
(a), that the system has completed such plan. The emergency response 
plan shall include--
          ``(1) strategies and resources to improve the resilience of 
        the system, including the physical security and cybersecurity 
        of the system;
          ``(2) plans and procedures that can be implemented, and 
        identification of equipment that can be utilized, in the event 
        of a malevolent act or natural hazard that threatens the 
        ability of the community water system to deliver safe drinking 
        water;
          ``(3) actions, procedures, and equipment which can obviate or 
        significantly lessen the impact of a malevolent act or natural 
        hazard on the public health and the safety and supply of 
        drinking water provided to communities and individuals, 
        including the development of alternative source water options, 
        relocation of water intakes, and construction of flood 
        protection barriers; and
          ``(4) strategies that can be used to aid in the detection of 
        malevolent acts or natural hazards that threaten the security 
        or resilience of the system.
  ``(c) Coordination.--Community water systems shall, to the extent 
possible, coordinate with existing local emergency planning committees 
established pursuant to the Emergency Planning and Community Right-To-
Know Act of 1986 (42 U.S.C. 11001 et seq.) when preparing or revising 
an assessment or emergency response plan under this section.
  ``(d) Record Maintenance.--Each community water system shall maintain 
a copy of the assessment conducted under subsection (a) and the 
emergency response plan prepared under subsection (b) (including any 
revised assessment or plan) for 5 years after the date on which a 
certification of such assessment or plan is submitted to the 
Administrator under this section.
  ``(e) Guidance to Small Public Water Systems.--The Administrator 
shall provide guidance and technical assistance to community water 
systems serving a population of less than 3,300 persons on how to 
conduct resilience assessments, prepare emergency response plans, and 
address threats from malevolent acts and natural hazards that threaten 
to disrupt the provision of safe drinking water or significantly affect 
the public health or significantly affect the safety or supply of 
drinking water provided to communities and individuals.
  ``(f) Alternative Preparedness and Operational Resilience Programs.--
          ``(1) Satisfaction of requirement.--A community water system 
        that is required to comply with the requirements of subsections 
        (a) and (b) may satisfy such requirements by--
                  ``(A) using and complying with technical standards 
                that the Administrator has recognized under paragraph 
                (2); and
                  ``(B) submitting to the Administrator a certification 
                that the community water system is complying with 
                subparagraph (A).
          ``(2) Authority to recognize.--Consistent with section 12(d) 
        of the National Technology Transfer and Advancement Act of 
        1995, the Administrator shall recognize technical standards 
        that are developed or adopted by third-party organizations or 
        voluntary consensus standards bodies that carry out the 
        objectives or activities required by this section as a means of 
        satisfying the requirements under subsection (a) or (b).
  ``(g) Technical Assistance and Grants.--
          ``(1) In general.--The Administrator shall establish and 
        implement a program, to be known as the Drinking Water 
        Infrastructure Risk and Resilience Program, under which the 
        Administrator may award grants in each of fiscal years 2018 
        through 2022 to owners or operators of community water systems 
        for the purpose of increasing the resilience of such community 
        water systems.
          ``(2) Use of funds.--As a condition on receipt of a grant 
        under this section, an owner or operator of a community water 
        system shall agree to use the grant funds exclusively to assist 
        in the planning, design, construction, or implementation of a 
        program or project consistent with an emergency response plan 
        prepared pursuant to subsection (b), which may include--
                  ``(A) the purchase and installation of equipment for 
                detection of drinking water contaminants or malevolent 
                acts;
                  ``(B) the purchase and installation of fencing, 
                gating, lighting, or security cameras;
                  ``(C) the tamper-proofing of manhole covers, fire 
                hydrants, and valve boxes;
                  ``(D) the purchase and installation of improved 
                treatment technologies and equipment to improve the 
                resilience of the system;
                  ``(E) improvements to electronic, computer, 
                financial, or other automated systems and remote 
                systems;
                  ``(F) participation in training programs, and the 
                purchase of training manuals and guidance materials, 
                relating to security and resilience;
                  ``(G) improvements in the use, storage, or handling 
                of chemicals by the community water system;
                  ``(H) security screening of employees or contractor 
                support services;
                  ``(I) equipment necessary to support emergency power 
                or water supply, including standby and mobile sources; 
                and
                  ``(J) the development of alternative source water 
                options, relocation of water intakes, and construction 
                of flood protection barriers.
          ``(3) Exclusions.--A grant under this subsection may not be 
        used for personnel costs, or for monitoring, operation, or 
        maintenance of facilities, equipment, or systems.
          ``(4) Technical assistance.--For each fiscal year, the 
        Administrator may use not more than $5,000,000 from the funds 
        made available to carry out this subsection to provide 
        technical assistance to community water systems to assist in 
        responding to and alleviating a vulnerability that would 
        substantially disrupt the ability of the system to provide a 
        safe and reliable supply of drinking water (including sources 
        of water for such systems) which the Administrator determines 
        to present an immediate and urgent need.
          ``(5) Grants for small systems.--For each fiscal year, the 
        Administrator may use not more than $10,000,000 from the funds 
        made available to carry out this subsection to make grants to 
        community water systems serving a population of less than 3,300 
        persons, or nonprofit organizations receiving assistance under 
        section 1442(e), for activities and projects undertaken in 
        accordance with the guidance provided to such systems under 
        subsection (e) of this section.
          ``(6) Authorization of appropriations.--To carry out this 
        subsection, there are authorized to be appropriated $35,000,000 
        for each of fiscal years 2018 through 2022.
  ``(h) Definitions.--In this section--
          ``(1) the term `resilience' means the ability of a community 
        water system or an asset of a community water system to adapt 
        to or withstand the effects of a malevolent act or natural 
        hazard without interruption to the asset's or system's 
        function, or if the function is interrupted, to rapidly return 
        to a normal operating condition; and
          ``(2) the term `natural hazard' means a natural event that 
        threatens the functioning of a community water system, 
        including an earthquake, tornado, flood, hurricane, wildfire, 
        and hydrologic changes.''.
  (b) Sensitive Information.--
          (1) Protection from disclosure.--Information submitted to the 
        Administrator of the Environmental Protection Agency pursuant 
        to section 1433 of the Safe Drinking Water Act, as in effect on 
        the day before the date of enactment of the Drinking Water 
        System Improvement Act of 2017, shall be protected from 
        disclosure in accordance with the provisions of such section as 
        in effect on such day.
          (2) Disposal.--The Administrator, in partnership with 
        community water systems (as defined in section 1401 of the Safe 
        Drinking Water Act), shall develop a strategy to, in a 
        timeframe determined appropriate by the Administrator, securely 
        and permanently dispose of, or return to the applicable 
        community water system, any information described in paragraph 
        (1).

SEC. 8. AUTHORIZATION FOR GRANTS FOR STATE PROGRAMS.

  Section 1443(a)(7) of the Safe Drinking Water Act (42 U.S.C. 300j-
2(a)(7)) is amended by striking ``$100,000,000 for each of fiscal years 
1997 through 2003'' and inserting ``$150,000,000 for each of fiscal 
years 2018 through 2022''.

SEC. 9. MONITORING FOR UNREGULATED CONTAMINANTS.

  (a) In General.--Section 1445 of the Safe Drinking Water Act (42 
U.S.C. 300j-4) is amended by adding at the end the following:
  ``(j) Monitoring by Certain Systems.--
          ``(1) In general.--Notwithstanding subsection (a)(2)(A), the 
        Administrator shall, subject to the availability of 
        appropriations for such purpose--
                  ``(A) require public water systems serving between 
                3,300 and 10,000 persons to monitor for unregulated 
                contaminants in accordance with this section; and
                  ``(B) ensure that only a representative sample of 
                public water systems serving less than 3,300 persons 
                are required to monitor.
          ``(2) Effective date.--Paragraph (1) shall take effect 3 
        years after the date of enactment of this subsection.
          ``(3) Limitation.--Paragraph (1) shall take effect unless the 
        Administrator determines that there is not sufficient 
        laboratory capacity to accommodate the analysis necessary to 
        carry out monitoring required under such paragraph.
          ``(4) Authorization of appropriations.--There are authorized 
        to be appropriated $15,000,000 in each fiscal year for which 
        monitoring is required to be carried out under this subsection 
        for the Administrator to pay the reasonable cost of such 
        testing and laboratory analysis as are necessary to carry out 
        monitoring required under this subsection.''.
  (b) Authorization of Appropriations.--Section 1445(a)(2)(H) of the 
Safe Drinking Water Act (42 U.S.C. 300j-4(a)(2)(H)) is amended by 
striking ``1997 through 2003'' and inserting ``2018 through 2022''.
  (c) Inclusion in Data Base.--Section 1445(g)(7) of the Safe Drinking 
Water Act (42 U.S.C. 300j-4(g)(7)) is amended by--
          (1) striking ``and'' at the end of subparagraph (B);
          (2) redesignating subparagraph (C) as subparagraph (D); and
          (3) inserting after subparagraph (B) the following:
                  ``(C) if applicable, monitoring information collected 
                by public water systems pursuant to subsection (j) that 
                is not duplicative of monitoring information included 
                in the data base under subparagraph (B) or (D); and''.

SEC. 10. STATE REVOLVING LOAN FUNDS.

  (a) Use of Funds.--Section 1452(a)(2)(B) of the Safe Drinking Water 
Act (42 U.S.C. 300j-12(a)(2)(B)) is amended by striking ``(including 
expenditures for planning, design, and associated preconstruction 
activities, including activities relating to the siting of the 
facility, but not'' and inserting ``(including expenditures for 
planning, design, siting, and associated preconstruction activities, or 
for replacing or rehabilitating aging treatment, storage, or 
distribution facilities of public water systems, but not''.
  (b) American Iron and Steel Products.--Section 1452(a)(4)(A) of the 
Safe Drinking Water Act (42 U.S.C. 300j-12(a)(4)(A)) is amended by 
striking ``fiscal year 2017'' and inserting ``fiscal years 2018 through 
2022''.
  (c) Evaluation.--Section 1452(a) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(a)) is amended by adding at the end the following:
          ``(5) Evaluation.--During fiscal years 2018 through 2022, a 
        State may provide financial assistance under this section to a 
        public water system serving a population of more than 10,000 
        for an expenditure described in paragraph (2) only if the 
        public water system--
                  ``(A) considers the cost and effectiveness of 
                relevant processes, materials, techniques, and 
                technologies for carrying out the project or activity 
                that is the subject of the expenditure; and
                  ``(B) certifies to the State, in a form and manner 
                determined by the State, that the public water system 
                has made such consideration.''.
  (d) Prevailing Wages.--Section 1452(a) of the Safe Drinking Water Act 
(42 U.S.C. 300j-12(a)) is further amended by adding at the end the 
following:
          ``(6) Prevailing wages.--The requirements of section 1450(e) 
        shall apply to any construction project carried out in whole or 
        in part with assistance made available by a drinking water 
        treatment revolving loan fund.''.
  (e) Assistance for Disadvantaged Communities.--Section 1452(d)(2) of 
the Safe Drinking Water Act (42 U.S.C. 300j-12(d)(2)) is amended to 
read as follows:
          ``(2) Total amount of subsidies.--For each fiscal year, of 
        the amount of the capitalization grant received by the State 
        for the year, the total amount of loan subsidies made by a 
        State pursuant to paragraph (1)--
                  ``(A) may not exceed 35 percent; and
                  ``(B) to the extent that there are sufficient 
                applications for loans to communities described in 
                paragraph (1), may not be less than 6 percent.''.
  (f) Types of Assistance.--Section 1452(f)(1) of the Safe Drinking 
Water Act (42 U.S.C. 300j-12(f)(1)) is amended--
          (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively;
          (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                  ``(C) each loan will be fully amortized not later 
                than 30 years after the completion of the project, 
                except that in the case of a disadvantaged community 
                (as defined in subsection (d)(3)) a State may provide 
                an extended term for a loan, if the extended term--
                          ``(i) terminates not later than the date that 
                        is 40 years after the date of project 
                        completion; and
                          ``(ii) does not exceed the expected design 
                        life of the project;''; and
          (3) in subparagraph (B), by striking ``1 year after 
        completion of the project for which the loan was made'' and all 
        that follows through ``design life of the project;'' and 
        inserting ``18 months after completion of the project for which 
        the loan was made;''.
  (g) Needs Survey.--Section 1452(h) of the Safe Drinking Water Act (42 
U.S.C. 300j-12(h)) is amended--
          (1) by striking ``The Administrator'' and inserting ``(1) The 
        Administrator''; and
          (2) by adding at the end the following new paragraph:
  ``(2) Any assessment conducted under paragraph (1) after the date of 
enactment of the Drinking Water System Improvement Act of 2017 shall 
include an assessment of costs to replace all lead service lines (as 
defined in section 1459B(a)(4)) of all eligible public water systems in 
the United States, and such assessment shall describe separately the 
costs associated with replacing the portions of such lead service lines 
that are owned by an eligible public water system and the costs 
associated with replacing any remaining portions of such lead service 
lines, to the extent practicable.''.
  (h) Other Authorized Activities.--Section 1452(k)(1)(C) of the Safe 
Drinking Water Act (42 U.S.C. 300j-12(k)(1)(C)) is amended by striking 
``for fiscal years 1996 and 1997 to delineate and assess source water 
protection areas in accordance with section 1453'' and inserting ``to 
delineate, assess, and update assessments for source water protection 
areas in accordance with section 1453''.
  (i) Authorization for Capitalization Grants to States for State 
Drinking Water Treatment Revolving Loan Funds.--Section 1452(m) of the 
Safe Drinking Water Act (42 U.S.C. 300j-12(m)) is amended--
          (1) by striking the first sentence and inserting the 
        following:
          ``(1) There are authorized to be appropriated to carry out 
        the purposes of this section--
                  ``(A) $1,200,000,000 for fiscal year 2018;
                  ``(B) $1,400,000,000 for fiscal year 2019;
                  ``(C) $1,600,000,000 for fiscal year 2020;
                  ``(D) $1,800,000,000 for fiscal year 2021; and
                  ``(E) $2,000,000,000 for fiscal year 2022.'';
          (2) by striking ``To the extent amounts authorized to be'' 
        and inserting the following:
          ``(2) To the extent amounts authorized to be''; and
          (3) by striking ``(prior to the fiscal year 2004)''.
  (j) Best Practices for Administration of State Revolving Loan 
Funds.--Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) 
is amended by adding after subsection (r) the following:
  ``(s) Best Practices for State Loan Fund Administration.--The 
Administrator shall--
          ``(1) collect information from States on administration of 
        State loan funds established pursuant to subsection (a)(1), 
        including--
                  ``(A) efforts to streamline the process for applying 
                for assistance through such State loan funds;
                  ``(B) programs in place to assist with the completion 
                of applications for assistance through such State loan 
                funds;
                  ``(C) incentives provided to public water systems 
                that partner with small public water systems to assist 
                with the application process for assistance through 
                such State loan funds;
                  ``(D) practices to ensure that amounts in such State 
                loan funds are used to provide loans, loan guarantees, 
                or other authorized assistance in a timely fashion;
                  ``(E) practices that support effective management of 
                such State loan funds;
                  ``(F) practices and tools to enhance financial 
                management of such State loan funds; and
                  ``(G) key financial measures for use in evaluating 
                State loan fund operations, including--
                          ``(i) measures of lending capacity, such as 
                        current assets and current liabilities or 
                        undisbursed loan assistance liability; and
                          ``(ii) measures of growth or sustainability, 
                        such as return on net interest;
          ``(2) not later than 3 years after the date of enactment of 
        the Drinking Water System Improvement Act of 2017, disseminate 
        to the States best practices for administration of such State 
        loan funds, based on the information collected pursuant to this 
        subsection; and
          ``(3) periodically update such best practices, as 
        appropriate.''.

SEC. 11. AUTHORIZATION FOR SOURCE WATER PETITION PROGRAMS.

  Section 1454(e) of the Safe Drinking Water Act (42 U.S.C. 300j-14(e)) 
is amended by striking ``1997 through 2003'' and inserting ``2018 
through 2022''.

SEC. 12. REVIEW OF TECHNOLOGIES.

  Part E of the Safe Drinking Water Act (42 U.S.C. 300j et seq.) is 
amended by adding at the end the following new section:

``SEC. 1459C. REVIEW OF TECHNOLOGIES.

  ``(a) Review.--The Administrator, after consultation with appropriate 
departments and agencies of the Federal Government and with State and 
local governments, shall review (or enter into contracts or cooperative 
agreements to provide for a review of) existing and potential methods, 
means, equipment, and technologies (including review of cost, 
availability, and efficacy of such methods, means, equipment, and 
technologies) that--
          ``(1) ensure the physical integrity of community water 
        systems;
          ``(2) prevent, detect, and respond to any contaminant for 
        which a national primary drinking water regulation has been 
        promulgated in community water systems and source water for 
        community water systems;
          ``(3) allow for use of alternate drinking water supplies from 
        nontraditional sources; and
          ``(4) facilitate source water assessment and protection.
  ``(b) Inclusions.--The review under subsection (a) shall include 
review of methods, means, equipment, and technologies--
          ``(1) that are used for corrosion protection, metering, leak 
        detection, or protection against water loss;
          ``(2) that are intelligent systems, including hardware, 
        software, or other technology, used to assist in protection and 
        detection described in paragraph (1);
          ``(3) that are point-of-use devices or point-of-entry 
        devices;
          ``(4) that are physical or electronic systems that monitor, 
        or assist in monitoring, contaminants in drinking water in 
        real-time; and
          ``(5) that allow for the use of nontraditional sources for 
        drinking water, including physical separation and chemical and 
        biological transformation technologies.
  ``(c) Availability.--The Administrator shall make the results of the 
review under subsection (a) available to the public.
  ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section $10,000,000 
for fiscal year 2018, which shall remain available until expended.''.

SEC. 13. DRINKING WATER FOUNTAIN REPLACEMENT FOR SCHOOLS.

  (a) In General.--Part F of the Safe Drinking Water Act (42 U.S.C. 
300j-21 et seq.) is amended by adding at the end the following:

``SEC. 1465. DRINKING WATER FOUNTAIN REPLACEMENT FOR SCHOOLS.

  ``(a) Establishment.--Not later than 1 year after the date of 
enactment of this section, the Administrator shall establish a grant 
program to provide assistance to local educational agencies for the 
replacement of drinking water fountains manufactured prior to 1988.
  ``(b) Use of Funds.--Funds awarded under the grant program--
          ``(1) shall be used to pay the costs of replacement of 
        drinking water fountains in schools; and
          ``(2) may be used to pay the costs of monitoring and 
        reporting of lead levels in the drinking water of schools of a 
        local educational agency receiving such funds, as determined 
        appropriate by the Administrator.
  ``(c) Priority.--In awarding funds under the grant program, the 
Administrator shall give priority to local educational agencies based 
on economic need.
  ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section not more than $5,000,000 for 
each of fiscal years 2018 through 2022.''.
  (b) Definitions.--Section 1461(5) of the Safe Drinking Water Act (42 
U.S.C. 300j-21(5)) is amended by inserting ``or drinking water 
fountain'' after ``water cooler'' each place it appears.

SEC. 14. SOURCE WATER.

  (a) Addressing Source Water Used for Drinking Water.--Section 304 of 
the Emergency Planning and Community Right-To-Know Act of 1986 (42 
U.S.C. 11004) is amended--
          (1) in subsection (b)(1), by striking ``State emergency 
        planning commission'' and inserting ``State emergency response 
        commission''; and
          (2) by adding at the end the following new subsection:
  ``(e) Addressing Source Water Used for Drinking Water.--
          ``(1) Applicable state agency notification.--A State 
        emergency response commission shall--
                  ``(A) promptly notify the applicable State agency of 
                any release that requires notice under subsection (a);
                  ``(B) provide to the applicable State agency the 
                information identified in subsection (b)(2); and
                  ``(C) provide to the applicable State agency a 
                written followup emergency notice in accordance with 
                subsection (c).
          ``(2) Community water system notification.--
                  ``(A) In general.--An applicable State agency 
                receiving notice of a release under paragraph (1) 
                shall--
                          ``(i) promptly forward such notice to any 
                        community water system the source waters of 
                        which are affected by the release;
                          ``(ii) forward to the community water system 
                        the information provided under paragraph 
                        (1)(B); and
                          ``(iii) forward to the community water system 
                        the written followup emergency notice provided 
                        under paragraph (1)(C).
                  ``(B) Direct notification.--In the case of a State 
                that does not have an applicable State agency, the 
                State emergency response commission shall provide the 
                notices and information described in paragraph (1) 
                directly to any community water system the source 
                waters of which are affected by a release that requires 
                notice under subsection (a).
          ``(3) Definitions.--In this subsection:
                  ``(A) Community water system.--The term `community 
                water system' has the meaning given such term in 
                section 1401(15) of the Safe Drinking Water Act.
                  ``(B) Applicable state agency.--The term `applicable 
                State agency' means the State agency that has primary 
                responsibility to enforce the requirements of the Safe 
                Drinking Water Act in the State.''.
  (b) Availability to Community Water Systems.--Section 312(e) of the 
Emergency Planning and Community Right-To-Know Act of 1986 (42 U.S.C. 
11022(e)) is amended--
          (1) in paragraph (1), by striking ``State emergency planning 
        commission'' and inserting ``State emergency response 
        commission''; and
          (2) by adding at the end the following new paragraph:
          ``(4) Availability to community water systems.--
                  ``(A) In general.--An affected community water system 
                may have access to tier II information by submitting a 
                request to the State emergency response commission or 
                the local emergency planning committee. Upon receipt of 
                a request for tier II information, the State commission 
                or local committee shall, pursuant to paragraph (1), 
                request the facility owner or operator for the tier II 
                information and make available such information to the 
                affected community water system.
                  ``(B) Definition.--In this paragraph, the term 
                `affected community water system' means a community 
                water system (as defined in section 1401(15) of the 
                Safe Drinking Water Act) that receives supplies of 
                drinking water from a source water area, delineated 
                under section 1453 of the Safe Drinking Water Act, in 
                which a facility that is required to prepare and submit 
                an inventory form under subsection (a)(1) is 
                located.''.

SEC. 15. REPORT ON FEDERAL CROSS-CUTTING REQUIREMENTS.

  (a) Report.--Not later than one year after the date of enactment of 
this Act, the Comptroller General shall submit to Congress a report 
containing the results of a study, to be conducted in consultation with 
the Administrator of the Environmental Protection Agency, any State 
agency that has primary responsibility to enforce the requirements of 
the Safe Drinking Water Act (42 U.S.C. 300f et seq.) in a State, and 
public water systems, to identify demonstrations of compliance with a 
State or local environmental law that may be substantially equivalent 
to any demonstration required by the Administrator for compliance with 
a Federal cross-cutting requirement.
  (b) Definitions.--In this subsection:
          (1) Federal cross-cutting requirement.--The term ``Federal 
        cross-cutting requirement'' means a requirement of a Federal 
        law or regulation, compliance with which is a condition on 
        receipt of a loan or loan guarantee pursuant to section 1452 of 
        the Safe Drinking Water Act (42 U.S.C. 300j-12), that, if 
        applied with respect to projects and activities for which a 
        public water system receives such a loan or loan guarantee, 
        would be substantially equivalent to a requirement of an 
        applicable State or local law.
          (2) Public water system.--The term ``public water system'' 
        has the meaning given that term in section 1401 of the Safe 
        Drinking Water Act (42 U.S.C. 300f).

                          Purpose and Summary

    The purpose of the bill is to amend the Safe Drinking Water 
Act to improve public water systems and enhance compliance with 
such Act.

                  Background and Need for Legislation

    The United States uses 42 billion gallons of water a day--
treated to meet Federal drinking water standards--to support a 
variety of needs.\1\ According to the Congressional Research 
Service (CRS), more than 299 million Americans are served by 
more than 51,300 community water systems (CWSs). Most community 
water systems (82 percent of all CWSs) are relatively small, 
serving 3,300 people or fewer; but these systems provide water 
to just 9 percent of the total population served by community 
water systems. In contrast, 8 percent of all CWSs serve 82 
percent of the population served.\2\
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    \1\http://www.infrastructurereportcard.org/wp-content/uploads/2017/
01/Drinking-Water-Final.pdf
    \2\http://www.crs.gov/Reports/
RL31243?source=search&guid;=c987b8c3502d477b8842999a6ea62e7a&index;=10
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    Treated drinking water is delivered across the United 
States, via one million miles of pipes, by privately and 
publicly owned water systems. Many of these pipes were laid in 
the early to mid-20th century and have a lifespan of 75 to 100 
years.\3\ While the American Society of Civil Engineers (ASCE) 
reports the quality of drinking water in the United States 
remains high, ASCE and others also spotlight concerns directly 
related to water system integrity, efficiency, and 
affordability. Specifically, they point to an estimated 240,000 
water main breaks per year in the United States that waste over 
two trillion gallons of treated drinking water. These leaks 
waste 14 to 18 percent of treated water per day--an amount that 
could support 15 million households.\4\
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    \3\American Water Works Association, Buried No Longer: Confronting 
American's Water Infrastructure Challenge, 2012, http://www.awwa.org/
legislation-regulation/issues/infrastructure-financing.aspx.
    \4\Op. Cit.
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    In April 2013, the Environmental Protection Agency (EPA) 
published its most recent survey of capital improvement needs 
for drinking water infrastructure. That survey indicated that 
water systems need to invest $384.2 billion on infrastructure 
improvements over 20 years (from 2011 to 2030) to ensure the 
provision of safe tap water.\5\ EPA also reported that $42.0 
billion (10.9 percent) of reported drinking water system needs 
are attributable to Safe Drinking Water Act (SDWA) compliance. 
The remaining 89.1 percent of EPA-identified needs are for 
projects that are not regulatory, but are needed to meet the 
Act's health protection objectives. A study by the American 
Water Works Association (AWWA) projects that restoring 
infrastructure and expanding water systems to keep up with 
population growth would require a nationwide investment of at 
least $1 trillion through 2035.\6\
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    \5\https://www.epa.gov/sites/production/files/2015-07/documents/
epa816r13006.pdf
    \6\http://www.crs.gov/Reports/
RS22037?source=search&guid;=923f50f6c1274772996da7f8f1a 
3551b&index;=6#_Toc466362844
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    The Congressional Budget Office reports that, in 2014, the 
Federal share of total public spending on water and wastewater 
utilities was 4 percent, while State and local government 
expenditures accounted for 94 percent of all public spending on 
this infrastructure.\7\
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    \7\Congressional Budget Office, Public Spending on Transportation 
and Water Infrastructure, 1956 to 2014, March 2015, p. 28.
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    User fees, primarily in the form of water utility rates, 
typically generate funds for daily operation and maintenance 
and long-term capital investments for drinking water and 
wastewater systems. Both the EPA and the United Nation's 
Development Program recommend affordability thresholds for 
water and wastewater services of 2.5 percent and 3 percent, 
respectively, of median household income.\8\ The average price 
of treating and distributing water in the United States is 
about $1.50 for 1,000 gallons--at that price, a gallon of water 
costs less than one penny.\9\ While the AWWA estimates that 
drinking water rates, annualized from 2004 to 2014, have 
increased 5.5 percent, AWWA also shows that water rates have 
dropped three percent between 2012 and 2014.\10\
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    \8\http://www2.pacinst.org/wp-content/uploads/2013/01/water-rates-
affordability.pdf
    \9\https://www.fcwa.org/story_of_water/html/costs.htm
    \10\https://www.awwa.org/resources-tools/water-and-wastewater-
utility-management/water-wastewater-rates.aspx
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    However, an ongoing problem for local water systems is how 
to finance major projects--increasing rates, borrowing on the 
private market, seeking Federal or State assistance, or some 
combination of these.

                        SAFE DRINKING WATER ACT

    The Safe Drinking Water Act (SDWA) not only contains 
Federal authority for regulating contaminants in drinking water 
delivery systems, it also includes the Drinking Water State 
Revolving Fund (DWSRF) program.\11\ The DWSRF was created by 
Congress in the 1996 SDWA Amendments to provide financing for 
infrastructure improvements at drinking water systems. Congress 
envisioned a program operating in perpetuity from which the 
principal and interest payments on old loans would be used to 
issue new loans, and from which a portion of each State's 
allotment could be set aside for State drinking water agencies 
to provide regulatory oversight and direct assistance to water 
systems.\12\
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    \11\SDWA Sec. 1412 and Sec. 1452
    \12\http://www.asdwa.org/document/
docWindow.cfm?fuseaction=document.viewDocument& 
documentid=2683&documentFormatId;=3404
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    Specifically, the DWSRF program permits EPA to make grants 
to States to capitalize DWSRFs, which States may then use to 
make low-interest loans to public water systems (PWSs) for 
activities EPA determines facilitate compliance or 
significantly further the SDWA's health protection objectives. 
States must match 20 percent of the Federal grant. Grants are 
allotted based on the results of needs surveys issued 
quadrennially by EPA. Each State and the District of Columbia 
must receive at least 1 percent of the appropriated funds.\13\
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    \13\http://www.crs.gov/Reports/
RL31243?source=search&guid;=c987b8c3502d477b8842999 
a6ea62e7a&index;=10#_Toc476131535.
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    In addition, States must make available 15 percent of their 
annual DWSRF allotment for loan assistance to systems that 
serve 10,000 or fewer persons to the extent that there are 
systems of that size within a State applying for funding of 
qualifying activities. States may also use up to 30 percent of 
their DWSRF grant to provide loan subsidies (including 
forgiveness of principal) to help economically disadvantaged 
communities. Finally, States may also use up to 4 percent of 
funds for technical assistance, source water protection and 
capacity development programs, and operator certification.\14\
---------------------------------------------------------------------------
    \14\SDWA 1452(g).
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    When last reauthorized in 1996, SDWA authorized 
appropriations of $599 million for fiscal year 1994 and $1 
billion per year for fiscal year 1995 through fiscal year 2003 
for DWSRF capitalization grants. Of those amounts, EPA was 
either directed or given the ability to reserve, from annual 
DWSRF appropriations, 0.33 percent for financial assistance to 
territories and 1.5 percent for Indian tribes and Alaska Native 
Villages, $10 million for health effects research on drinking 
water contaminants, $2 million for the costs of monitoring for 
unregulated contaminants, and up to 2 percent for technical 
assistance. Between fiscal year 1997 and fiscal year 2016, 
Congress appropriated over $20 billion, and more than 12,400 
projects received assistance through the program.\15\
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    \15\Id.
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    The Water Infrastructure Improvements for the Nation Act 
(WIIN Act, section 322 of P.L. 114-322) made several amendments 
to the DWSRF provisions. Among other changes, the amendments 
increased the portion of the annual DWSRF capitalization grants 
that States may use to cover program administration costs and 
authorized $300 million over five years for lead pipe 
replacement and $300 million over five years for aid to 
disadvantaged and underserved communities.\16\ Further, the 
WIIN Act amended SDWA to require, with some exceptions, that 
funds made available from a State DWSRF during fiscal year 2017 
may not be used for water system projects unless all iron and 
steel products to be used in the project are produced in the 
United States.
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    \16\WIIN 2102-2105.
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            WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT

    According to CRS, a chronic concern is the need for 
communities to address drinking water infrastructure 
requirements that are outside the scope of the DWSRF program 
since they are unrelated to SDWA compliance.\17\ These 
categories include future growth, ongoing rehabilitation, and 
operation and maintenance of systems. EPA has reported that 
outdated and deteriorated drinking water infrastructure poses a 
fundamental long-term threat to drinking water safety and that, 
in many communities, basic infrastructure costs can far exceed 
SDWA compliance costs. As reported in EPA's most recent 
drinking water needs assessment, less than 11 percent of the 
20-year estimated need is directly related to compliance with 
SDWA regulations.\18\
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    \17\Op. Cit.
    \18\Op. Cit.
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    Congress enacted the Water Infrastructure Finance and 
Innovation Act (WIFIA) in June 2014,\19\ which authorized a 
pilot loan guarantee program to test the ability of innovative 
financing tools to promote increased development of, and 
private investment in, water infrastructure projects while 
reducing costs to the Federal government. The pilot program is 
intended to complement, and not replace, the clean water and 
drinking water SRF programs. The Act authorized $20 million 
each for fiscal year 2015 and $25 million each for fiscal year 
2016 to the Secretary of the Interior and the EPA 
Administrator, with amounts increasing annually to $50 million 
each for fiscal year 2019.
---------------------------------------------------------------------------
    \19\(P.L. 113-121, H.R. 3080) includes in Title V, Subtitle C
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    Eligible projects include clean water and drinking water 
SRF-eligible projects and a wide range of water resource 
development projects that must generally have costs of at least 
$20.0 million. Such large projects face difficulty securing 
significant funding through the SRF programs. Moreover, unlike 
the SRF programs, WIFIA is not focused on regulatory compliance 
and, therefore, may be more available for other large-scale 
water infrastructure projects. For projects serving areas with 
a population of 25,000 or fewer individuals, eligible projects 
must have a total cost of at least $5 million.
    Congress appropriated $20 million in funds for the program 
in fiscal year 2017. It is estimated that using WIFIA's full 
financial leveraging ability that a single dollar injected into 
the program can create $50 dollars for project lending.\20\ 
Under current appropriations, EPA estimates that current budget 
authority may provide more than $1 billion in credit assistance 
and may finance over $2 billion in water infrastructure 
investment.\21\
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    \20\http://www.infrastructure reportcard.org/ wp-content/ uploads/ 
2017/01/ Drinking-Water- Final.pdf
    \21\Id.
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                          CLEAN WATER ACT SRF

    Congress provided States flexibility in setting priorities 
between the DWSRF and the Clean Water Act SRF (CWSRF) programs 
to accommodate the divergent drinking water and wastewater 
needs and priorities among the States. Section 302(a) of the 
1996 SDWA Amendments authorized States to transfer as much as 
33 percent of the annual DWSRF allotment to the CWSRF or an 
equivalent amount from the CWSRF to the DWSRF. The Act 
authorized these transfers through fiscal year 2001. In 2000, 
EPA recommended that Congress continue to authorize transfers 
between the SRF programs to give States flexibility to address 
their most pressing water infrastructure needs.\22\ Several 
annual appropriations acts authorized States to continue to 
transfer as much as 33 percent of funds between the two 
programs, and in the Department of Interior and Related 
Agencies Appropriations Act, FY 2006, Congress made this 
authority permanent.\23\
---------------------------------------------------------------------------
    \22\http://www.crs.gov/Reports/ RS22037? source=search&guid;= 
923f50f6c 1274772996 da7f8f1a3551b& index= 6#ifn2.
    \23\The Department of the Interior, Environment, and Related 
Agencies Appropriations Act, 2006, P.L. 109-54, Title II, August 2, 
2005, 119 Stat. 530, provided: ``That for fiscal year 2006 and 
thereafter, State authority under section 302(a) of P.L. 104-182 shall 
remain in effect.''
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                            Committee Action

    On May 19, 2017, the Subcommittee on the Environment held a 
hearing on a Discussion Draft, entitled ``Drinking Water System 
Improvement Act.'' The Subcommittee received testimony from:
           Lisa Daniels, Director, Bureau of Safe 
        Drinking Water, Pennsylvania Department of 
        Environmental Protection, on behalf of the Association 
        of State Drinking Water Administrators;
           Steve Fletcher, Manager, Washington County 
        Water Company, Nashville, IL, on behalf of the National 
        Rural Water Association;
           Martin Kropelnicki, President and CEO, 
        California Water Service Group, on behalf of the 
        National Association of Water Companies;
           Scott Potter, Director, Nashville Metro 
        Water Services, Nashville, TN, on behalf of the 
        Association of Metropolitan Water Agencies;
           James Proctor, Senior Vice President and 
        General Counsel, McWane, Inc.;
           Lynn Thorp, National Campaigns Director, 
        Clean Water Action; and
           Kurt Vause, Special Projects Director, 
        Anchorage Water and Wastewater Utility, on behalf of 
        the American Water Works Association.
    On March 16, 2017, the Subcommittee on the Environment held 
a hearing entitled, ``Reinvestment and Rehabilitation of Our 
Nation's Drinking Water Delivery Systems.'' The Subcommittee 
received testimony from:
           Rudolph Chow, P.E., Director, Baltimore City 
        Department of Public Works, on behalf of the American 
        Municipal Water Association;
           Greg DiLoreto, Chairman, Committee for 
        America's Infrastructure, American Society of Civil 
        Engineers;
           John Donahue, CEO, North Park Public Water 
        District (Machesney Park, IL), on behalf of the 
        American Water Works Association;
           Randy Ellingboe, Minnesota Department of 
        Health, on behalf of the Association of State Drinking 
        Water Administrators;
           Martin A. Kropelnicki, President and CEO, 
        California Water Service Group, on behalf of the 
        National Association of Water Companies; and
           Erik Olson, Director, Health and Environment 
        Program, Natural Resources Defense Council.
    On July 13, 2017, the Subcommittee on the Environment met 
in open markup session and forwarded the Discussion Draft, 
entitled ``Drinking Water System Improvement Act,'' as amended, 
to the full Committee by a voice vote. On July 25, 2017, the 
Drinking Water System Improvement Act of 2017 was introduced in 
the House as H.R. 3387. On July 27, 2017, the full Committee on 
Energy and Commerce met in open markup session and ordered H.R. 
3387, as amended, favorably reported to the House by a voice 
vote.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. There were no record votes taken in connection with 
ordering H.R. 3387 reported.

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 3387 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 22, 2017.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3387, the Drinking 
Water System Improvement Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 3387--Drinking Water System Improvement Act of 2017

    Summary: H.R. 3387 would authorize the appropriation of 
about $9 billion for the Environmental Protection Agency (EPA) 
to provide grants to public water systems, as well as to state, 
local, and tribal governments, to support drinking water 
infrastructure projects and to promote compliance with 
regulations that implement the Safe Drinking Water Act (SDWA).
    CBO estimates that implementing this legislation would cost 
about $6 billion over the next five years and an additional $3 
billion after 2022, assuming appropriation of the authorized 
amounts.
    The staff of the Joint Committee on Taxation (JCT) 
estimates that enacting the bill would reduce revenues by $572 
million over the next 10 years. Because enacting the bill would 
reduce revenues, pay-as-you-go procedures apply. Enacting the 
bill would not affect direct spending.
    CBO estimates that enacting H.R. 3387 would not increase 
net direct spending or on-budget deficits by more than $5 
billion in any of the four consecutive 10-year periods 
beginning in 2028.
    H.R. 3387 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
on public and private owners and operators of public water 
systems that are regulated by the SDWA, and on other state and 
local government entities. Based on information provided by the 
EPA, public water systems, and state and local agencies, CBO 
estimates that the total cost of complying with the mandates 
would fall below the annual thresholds for intergovernmental 
and private-sector mandates established in UMRA ($78 million 
and $156 million in 2017, respectively, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effects of the bill are summarized in Table 1. The 
costs of this legislation fall within budget function 300 
(natural resources and environment).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3387
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                        ----------------------------------------------------------------------------------------------------------------
                                          2017    2018    2019    2020    2021    2022    2023    2024     2025     2026     2027   2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level..........       0   1,420   1,610   1,824   2,023   2,222      17      17       17       17       17     9,100      9,186
Estimated Outlays......................       0     263     805   1,408   1,735   1,923   1,760   1,022      219       24       24     6,135      9,185
 
                                                                  DECREASES IN REVENUES
 
Estimated Revenues.....................       0       *      -3     -10     -25     -46     -72     -95     -106     -108     -107       -84       -572
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: CBO and the staff of the Joint Committee on Taxation.
Note: * = between zero and -$500,000. Details may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the beginning of fiscal year 2018, 
that the full amounts authorized or estimated to be necessary 
will be appropriated for each year, and that outlays will 
follow historical patterns of spending for existing and similar 
programs.

Spending subject to appropriation

    H.R. 3387 would authorize appropriations totaling about 
$9.1 billion over the 2018-2022 period for the EPA to 
administer different grant programs that support drinking water 
infrastructure and help public water systems comply with 
regulations under the Safe Drinking Water Act (see Table 2).

                                    TABLE 2.--AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR EPA PROGRAMS UNDER H.R. 3387
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2017    2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
Drinking Water SRF Grants:
    Authorization Level...................       0   1,200   1,400   1,600   1,800   2,000       0       0       0       0       0     8,000      8,000
Estimated Outlays                                0     120     620   1,200   1,500   1,700   1,680     980     200       0       0     5,140      8,000
Public Water System Supervision Program:
    Authorization Level...................       0     150     150     150     150     150       0       0       0       0       0       750        750
    Estimated Outlays.....................       0     135     150     150     150     150      15       0       0       0       0       735        750
Drinking Water Risk and Resilience Grant
 Program:
    Authorization Level...................       0      35      35      35      35      35       0       0       0       0       0       175        175
    Estimated Outlays.....................       0       0      11      25      35      35      35      25      11       0       0       105        175
Source Water Petition Programs:
    Authorization Level...................       0       5       5       5       5       5       0       0       0       0       0        25         25
    Estimated Outlays.....................       0       0       2       4       5       5       5       4       2       0       0        15         25
Drinking Water Fountain Replacement
 Grants:
    Authorization Level...................       0       5       5       5       5       5       0       0       0       0       0        25         25
    Estimated Outlays.....................       0       0       2       4       5       5       5       4       2       0       0        15         25
Reauthorize Monitoring for Unregulated
 Contaminants:
    Authorization Level...................       0      10      10      10      10      10       0       0       0       0       0        50         50
    Estimated Outlays.....................       0       2      15      15      13       5       0       0       0       0       0        50         50
Expand Monitoring for Unregulated
 Contaminants:
    Authorization Level...................       0       0       0      15      15      15      15      15      15      15      15        45        120
    Estimated Outlays.....................       0       0       0       4      21      21      18       8       4      21      21        45        120
Technology Review:
    Authorization Level...................       0      10       0       0       0       0       0       0       0       0       0        10         10
    Estimated Outlays.....................       0       1       1       4       4       0       0       0       0       0       0        10         10
Other Activities:
    Estimated Authorization Level.........       0       5       5       4       3       2       2       2       2       2       2        20         31
    Estimated Outlays.....................       0       5       5       4       3       2       2       2       2       2       2        20         31
    Total Changes:........................
        Estimated Authorization Level.....       0   1,420   1,610   1,824   2,023   2,222      17      17      17      17      17     9,100      9,186
        Estimated Outlays.................       0     263     805   1,408   1,735   1,923   1,760   1,022     219      24      24     6,135      9,185
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Details may not sum to totals because of rounding. SRF = State Revolving Fund.

    The bill would authorize the appropriation of $8 billion 
over the next five years for the EPA to provide capitalization 
grants for the Drinking Water State Revolving Fund (DWSRF) 
programs. States use such grants, along with their own funds, 
to make low-interest loans to communities to build or improve 
drinking water facilities and infrastructure, and for other 
projects that improve the quality of drinking water. In 
addition to reauthorizing federal funding for states' DWSRF 
programs, the bill also would make several revisions to those 
programs, including allowing states to direct a greater 
percentage of funds to disadvantaged communities, extending the 
repayment terms for loans made by states, and requiring 
recipients of loans to certify that proposed projects meet 
certain cost-effectiveness criteria.
    H.R. 3387 also would authorize the appropriation of about 
$1 billion over the next five years for the EPA implement 
several other grant programs. Specifically, the bill would 
authorize the appropriation of:
           $750 million for state and tribal agencies 
        to implement programs that enforce compliance with 
        drinking water regulations under the SDWA and provide 
        technical assistance to public water systems;
           $175 million for grants to public water 
        systems to implement projects that mitigate risks to 
        drinking water from natural hazards and security 
        threats;
           $25 million to states to implement 
        partnership programs with public water systems that 
        petition the states for assistance in complying with 
        drinking water regulations;
           $25 million for local educational agencies 
        to pay the costs of replacing drinking water fountains 
        in schools and monitoring for lead contamination;
           $50 million for the EPA to continue funding 
        the laboratory analysis costs of monitoring for 
        unregulated contaminants in drinking water systems;
           Daniels, Dirthe number of small systems that 
        monitor for unregulated contaminants; and
           $10 million in 2018 for the EPA to conduct a 
        comprehensive review of technologies, equipment, and 
        methods that effectively detect and prevent 
        contamination of public drinking water systems.
    CBO estimates that the cost to implement the remaining 
requirements in the bill, (for which the legislation does not 
specify an authorization level,) would total about $20 million 
over the next five years, assuming appropriation of the 
necessary amounts. That funding would be used for various 
purposes, including providing technical assistance to state 
agencies, developing guidance and updating tools for risk 
assessments, conducting a national inventory of any pipes of 
fittings that are used to connect buildings with the drinking 
water main supply pipes and are not lead free, and reporting on 
how water systems can more easily comply with cross-cutting 
federal, state, and local requirements.

Revenues

    H.R. 3387 would authorize the appropriation of $8 billion 
over the 2018-2022 period for the EPA to make grants to 
capitalize state revolving loan funds, from which states make 
loans to finance drinking water infrastructure projects. JCT 
expects that states would use a portion of those grants to 
leverage additional funds by issuing tax-exempt bonds. JCT 
estimates that issuing additional tax-exempt bonds would reduce 
federal revenues by $572 million over the next 10 years.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.

         CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3387, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON JULY 27, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2017    2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact............       0       0       3      10      25      46      72      95     106     108     107        84        572
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2028.
    Intergovernmental and private-sector impact: H.R. 3387 
would impose intergovernmental and private-sector mandates as 
defined in UMRA on public and private owners and operators of 
public water systems that are regulated by the Safe Drinking 
Water Act. The bill also would impose intergovernmental 
mandates on state emergency response commissions (SERCs), local 
emergency planning committees, and state water agencies that 
are responsible for notifying the public in the event of a 
release of hazardous chemicals that affects drinking water. 
Based on information provided by the EPA, public water systems, 
and state and local agencies, CBO estimates that the total 
costs of complying with the mandates would range from $14 
million to $36 million per year over the 2018-2022 period for 
water systems owned by public entities; for water systems owned 
by private entities, CBO estimates the total costs to comply 
with the mandates would range from $3 million to $6 million per 
year over that period. Therefore, CBO estimates that the costs 
of the mandates would fall below the annual thresholds for 
intergovernmental and private-sector mandates established in 
UMRA ($78 million and $156 million in 2017, respectively, 
adjusted annually for inflation).

Mandates that apply to both public and private entities

    The bill would impose several mandates on owners and 
operators of public water systems that are regulated by the 
Safe Drinking Water Act. Public water systems may be publicly 
or privately owned. Systems owned by local governments serve 
the majority of the U.S. population, while many smaller systems 
are owned by private entities. The bill would require public 
water systems that serve populations larger than 10,000 to send 
consumer confidence reports to their customers twice per year; 
under current law, those systems must send reports once per 
year. In addition, the bill would require all public water 
systems to include information in consumer confidence reports 
about actions taken to control corrosion in pipes. While an 
increasing number of systems send such reports electronically 
at low cost, the requirement would increase costs for systems 
that still send reports by mail. Based on information from 
public water systems and state water agencies about the costs 
of complying with current requirements, CBO estimates that 
public water systems would spend about $14 million per year to 
comply with these requirements.
    The bill would require public water systems that serve 
populations larger than 3,300 to conduct assessments of the 
risks posed to their systems by security threats and natural 
hazards and to prepare response plans. The bill would require 
those systems to certify to the EPA that they have conducted 
such assessments once every five years. Alternatively, systems 
could satisfy those requirements by certifying to the EPA that 
they are following consensus technical standards developed by 
the water industry and recognized by the EPA. Risk assessments 
are increasingly common in the water industry, and CBO expects 
that many systems, especially those that serve major 
populations, would already be in compliance because they follow 
industry standards; additional costs to them resulting from the 
mandate would be small. However, CBO expects that other 
systems, particularly those that are smaller in size, would 
need to conduct risk assessments and prepare response plans at 
varying costs, depending on their size and complexity. Based on 
information from the EPA and the American Water Works 
Association, CBO estimates that systems would spend an 
additional $25 million to comply with those requirements. That 
estimate is based on the expectation that many smaller systems 
would comply by conducting assessments at low cost using free 
assessment tools, while larger systems would undertake much 
more expensive and comprehensive analyses ranging into the 
hundreds of thousands of dollars.
    The bill would impose a mandate by requiring the EPA to 
expand the number of small public water systems (those serving 
fewer than 10,000 people) that must monitor drinking water for 
unregulated contaminants. The EPA would select a representative 
sample of those systems to conduct monitoring. The bill would 
authorize the appropriation of $15 million per year to cover 
the costs of laboratory analysis of samples. However, systems 
would incur costs to collect samples and to train staff. Based 
on information from public water systems and state water 
agencies about the costs of sample collection under current 
requirements, CBO estimates that systems selected for 
monitoring would spend, in the aggregate, $2 million to $3 
million each year to comply with those requirements.

Mandates on public entities

    The bill would require SERCs and local emergency planning 
committees to notify state water agencies whenever there is a 
release of hazardous chemicals into water bodies used for 
drinking water and also would require water agencies to in turn 
notify public water systems in the affected area. Additionally, 
the bill would require SERCs and local emergency planning 
committees to provide information about chemicals stored at 
specific facilities whenever local public water systems request 
that information. Because it is already common practice for 
SERCs and local emergency committees to conduct such 
activities, CBO estimates that the costs of compliance would be 
small.

Other effects on public entities

    Under the bill, state and tribal agencies that have chosen 
to implement the Safe Drinking Water Act would likely incur 
additional costs to provide financial and technical assistance 
to public water systems that are subject to federal regulations 
under that act. Specifically, state and tribal water agencies 
would work with public water systems to meet requirements under 
the bill relating to consumer confidence reports, risk 
assessments, and monitoring for unregulated contaminants. Costs 
incurred by those agencies, however, would result from 
participation in a voluntary federal program.
    The bill also includes a provision that would provide state 
and tribal governments with the authority to compel public 
water systems that are out-of-compliance with federal drinking 
water standards to undergo consolidation with another system, 
or to transfer ownership. In cases where the targeted systems 
are unable to meet federal drinking water standards, and are 
either financially unable or unwilling to take actions that 
would result in compliance, states and tribes with primary 
enforcement responsibility for the SDWA could require the owner 
or operator of such a system to assess options for 
consolidation or transfer and then carry out those actions if 
doing so is economically feasible and likely to result in 
greater compliance with federal standards. CBO expects that 
state and tribal agencies would generally use the authority 
selectively to focus on systems that have serious violations of 
drinking water standards; however, use of this authority could 
result in significant costs for some water systems, depending 
on how the authority is exercised, and the size and complexity 
of the systems affected. Because state and tribal water 
agencies would exercise the authority at their discretion, any 
costs incurred by affected water systems would not stem from a 
federal intergovernmental mandate under UMRA. Based on evidence 
from consolidation efforts in California and other states, CBO 
expects that many state and tribal agencies would provide 
financial assistance to cover necessary interconnection, 
improvement, and administrative costs for systems required to 
undergo consolidation or transfer. The bill also would 
authorize states and tribes to use federal funds provided 
through the DWSRF programs to cover the costs of consolidations 
and transfers.
    Finally, the bill would benefit public water systems, as 
well as state, local, and tribal agencies that implement 
federal drinking water regulations, by authorizing federal 
financial and technical assistance for several drinking water 
grant programs. Public water systems would benefit from loans 
provided by state agencies for drinking water infrastructure 
projects. The bill would authorize the appropriation of $8 
billion over the 2018-2022 period for the EPA to provide 
capitalization grants to DWSRFs to finance those loans. Any 
costs public entities might incur relating to grant and loan 
programs, including matching contributions, would result from 
conditions of federal assistance.
    Estimate prepared by: Federal spending: Jon Sperl; Federal 
revenues: Staff of the Joint Committee on Taxation; Impact on 
state, local, and tribal governments: Jon Sperl; Impact on the 
private sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to amend 
the Safe Drinking Water Act to improve public water systems and 
enhance compliance with such Act.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 3387 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 3387 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the following 
directed rule makings are contained in H.R. 3387:
           In section 2: Revision of regulations 
        affecting consumer confidence reports under the 
        amendment to SDWA section 1414(c)(4).
           In section 4: Promulgation of regulations 
        implementing water system consolidation mandates under 
        the amendment to SDWA section 1414(h).

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 establishes the short title of the legislation as 
``the Drinking Water System Improvement Act of 2017''.

Section 2. Improved Consumer Confidence Reports

    Section 2 amends SDWA section 1414(c)(4) to institute 
certain changes related to requirements on the form, manner, 
and frequency that consumer confidence reports (CCR) are issued 
by community water systems.
    First, section 2 amends SDWA section 1414(c)(4)(A) to 
permit CCRs to be mailed or provided by electronic means to 
drinking water system customers. The Committee understands that 
Americans are increasingly going away from a paper-driven 
society and instead relying on electronic technologies to 
access data, including real-time information. The Committee 
also recognizes that not all persons have access to or are 
comfortable using these means and intends that this new option 
not be used as an opportunity to avoid making paper copies 
available to those customers that want them.
    Second, section 2 requires, under SDWA section 
1414(c)(4)(B), three new types of information--relevant to the 
community water system's reporting period--that a system must 
report in its CCR. These include: (1) its compliance with 
corrosion control requirements, (2) identification, if any, of 
system-wide exceedances of the lead action level that required 
corrective action by EPA or a State exercising primary 
enforcement responsibility, and (3) an identification, if any, 
of SDWA violations that occurred.
    Third, section 2 requires EPA, within 24 months of the date 
of enactment of the Drinking Water System Improvement Act, to 
revise the regulations implementing the CCR requirements for 
two issues: CCR content understandability and electronic 
delivery. Section 2 is intentionally narrow to these two issues 
to permit a targeted correction of these concerns and avoid 
reopening the entire rule. Specifically, in response to the 
December 2012 CCR Rule Retrospective Review, section 2 requires 
the rule revision to increase both the readability, clarity, 
and understandability of the information presented in the CCR 
as well as the accuracy and risk communication of the 
information presented. In addition, to reduce EPA's burden for 
issuing this rule revision, section 2 permits EPA to allow 
delivery of consumer confidence reports by methods consistent 
with methods described in the memorandum ``Safe Drinking Water 
Act--Consumer Confidence Report Rule Delivery Options'' issued 
by the Environmental Protection Agency on January 3, 2013.
    Finally, section 2 requires as part of the rule revision to 
the requirements of SDWA section 1414(c)(4)(A) that community 
water systems serving 10,000 or more persons be obligated to 
provide, by mail, electronic means, or other methods permitted 
by the Administrator, a CCR to each customer of the system at 
least biannually. The Committee expects that when issuing these 
regulations, EPA will include feasible implementation options 
that reduce the burden on community water systems, States, and 
other relevant parties subject to the new requirements while 
maintaining the quality and availability of information for 
community water system customers.

Section 3. Contractual agreements

    During hearings by the Subcommittee on the Environment, the 
Subcommittee heard repeated testimony on the importance of 
encouraging partnerships between struggling public water 
systems and outside interests whose technical, financial, or 
managerial expertise would help that utility achieve 
compliance. Section 3 expands SDWA section 1414(h)(1) to permit 
an owner or operator of a public water system to enter into a 
contractual agreement for significant management or 
administrative functions of its public water system to correct 
its identified SDWA violations. The contract is intended to be 
part of a larger plan that is subject to approval by its State 
(if that State has primary enforcement responsibility for SDWA) 
or the EPA Administrator (if the State does not have primary 
enforcement responsibility). An approved plan would provide two 
years for the public water system to achieve compliance with 
its identified violations.
    Section 3 also makes a technical change to correct the 
punctuation in SDWA section 1414(i)(1).

Section 4. Consolidation

    Section 4(a) establishes new language at the end of SDWA 
section 1414(h) regarding transfers of ownership or 
consolidations that will help ensure safe drinking water. 
Specifically, the provisions are focused on the use of 
assessments, by public water systems whose produced drinking 
water creates a public health threat, to determine whether it 
makes sense for that utility to seek a transfer of ownership or 
consolidation with another utility.
    In proposed SDWA section 1414(h)(3)(A), either a State with 
primary enforcement responsibility for SDWA or EPA, if the 
State does not have that authority under SDWA section 1413(a), 
may require the owner or operator of certain public water 
systems to assess their options for consolidation or transfer 
of ownership based on the presence of three conditions.
    The first condition is that the public water system in 
question has repeatedly violated one or more SDWA requirements 
and this lack of compliance is likely to adversely affect human 
health. In addition, the public water system in question must 
have unsuccessfully tried to remedy these violations using 
technical assistance and a DWSRF loan or is unable or unwilling 
to undertake feasible and affordable actions suggested by 
either the State with primary enforcement or EPA to bring the 
water system into compliance.
    In choosing the wording of the first prong of the first 
condition, the Committee does not intend any type of violation 
by a public water system to activate these provisions. Rather, 
the authority provided in proposed SDWA section 1414(h)(3) is 
limited to repeated and significant non-compliers whose systems 
are producing water that is unsafe for human consumption. The 
Committee does not intend this authority to be used for 
paperwork violations or when the water system is in significant 
compliance with SDWA requirements and is not producing water 
that threatens its customers' health.
    The second condition is that a consolidation or transfer of 
the public water system is feasible, including feasibility 
based upon geographic considerations, technical concerns, 
access to capital, and chances for long-term success.
    The last condition is that consolidation or transfer by the 
public water system could result in greater compliance with 
national primary drinking water regulations. The Committee 
intends that this condition be more than theoretical and 
incremental.
    If all three conditions have been met and an assessment has 
been done, the State with primary enforcement responsibility or 
EPA, as appropriate, reviews the assessment. Upon completion of 
this review, under proposed SDWA section 1414(h)(3)(B), the 
State or EPA may require the owner or operator of the public 
water system to submit a plan for consolidation or transfer 
ownership. The plan's implementation becomes mandatory if three 
conditions are met: (1) the owner or operator of that water 
system has not taken steps to complete consolidation, not 
transferred ownership of the system, or could not achieve 
compliance after receiving technical assistance and a DWSRF 
loan; (2) after completing its assessment, the public water 
system violated another national primary drinking in a way that 
makes its produced water likely to adversely affect human 
health; and (3) the consolidation or transfer is feasible.
    Section 4(a) also creates a new SDWA section 1414(h)(4) 
that permits, notwithstanding the limitation in SDWA section 
1452(a)(3), DWSRF loans to be provided to public water systems 
trying to achieve compliance under this section through 
consolidation, transfer of ownership, or other means. SDWA 
section 1452(a)(3) generally prohibits the provision of DWSRF 
loans to public water systems in significant non-compliance or 
that that lack certain technical, managerial, or financial 
capabilities.
    Finally, section 4(a) contains provisions extending legal 
protections for non-responsible parties consolidating with or 
acquiring ownership in a non-compliant public water system. In 
general, section 4(a) proposes a new SDWA section 1414(h)(5) 
that provides protection from any potential liability for 
damages arising from violations of the Safe Drinking Water Act 
that are identified in a plan for consolidation or ownership 
under SDWA section 1414(h)(3)(B).
    To obtain this protection, the owner or operator of a 
public water system must take reasonable steps to identify, in 
the consolidation or ownership transfer plan they are 
submitting under proposed SDWA section 1414(h)(3), all 
potential violations of which they are aware and--as of the 
date the plan is submitted--any funds or other assets available 
to the public water system that committed such violation to 
satisfy its liability.
    If, as appropriate, the State or the Administrator approves 
the public water system's plan for consolidation or transfer of 
ownership, under proposed SDWA section 1414(h)(5)(B), the 
public water system is not liable for a violation of the Safe 
Drinking Water Act identified in its plan, except to the extent 
to which funds or other assets have been identified in its plan 
to satisfy that liability.
    Section 4 contains three other features. First, it 
requires, in proposed SDWA section 1414(h)(6), regulations to 
implement the consolidation or ownership transfer provisions 
within proposed paragraphs (3) through (5) to SDWA section 
1414(h). Second, section 4(b) adds a new SDWA section 
1413(a)(6) to require that States, as a condition of the 
primary enforcement delegation, have adopted and are 
implementing procedures consistent with the provisions in 
proposed paragraphs (3) through (6) to SDWA section 1414(h). 
Last, it makes a conforming amendment to SDWA section 1413(b), 
relating to EPA providing written notification to States about 
determinations of the primary enforcement authority status, to 
account for the proposed change to SDWA section 1413(a).

Section 5. Improved accuracy and availability of compliance monitoring 
        data

    Section 5 requires EPA, in coordination with the State, 
public water systems, and other interested stakeholders to 
create a strategic plan for improving the accuracy and 
availability of monitoring data collected to demonstrate SDWA 
compliance, particularly data submitted by public water systems 
to States and data submitted by States to EPA. This strategic 
plan, including a summary of its findings and practicable and 
cost-effective recommendations to improve accuracy and 
availability of monitoring data collected to demonstrate SDWA 
compliance, is due to Congress not later than 1 year after the 
date of enactment of the Drinking Water System Improvement Act.
    Due to software compatibility, budgeting, and management 
issues the Agency and States have faced in other electronic 
reporting programs, like the electronic manifest program for 
hazardous water under section 3024 of the Solid Waste Disposal 
Act (42 U.S.C. 6969g), the Committee is reluctant to require a 
solution without EPA working out potential issues on the front 
end. In developing the strategic plan and its recommendations 
under section 4, the Administrator is obligated to evaluate any 
challenges: (1) faced by States and public water systems in 
using electronic systems for data collection and dissemination, 
(2) in ensuring the accuracy and integrity of submitted data, 
and (3) regarding access to information and the usability of an 
electronic system. The Committee hopes the Administrator will 
take advantage of the authorities in section 5 that permit 
consultation with States and other Federal agencies that have 
experience using these kinds of systems.

Section 6. Asset management

    Section 6 amends SDWA section 1420 in three places to 
encourage the use of asset management by drinking water 
delivery systems.
    The Subcommittee on the Environment received testimony 
about the importance of asset management in helping drinking 
water systems become economically sustainable. At the same 
time, witnesses stated that it was better to encourage this 
practice rather than mandate its use. The Committee believes 
technical assistance in this area, especially for smaller and 
rural systems, will be the most beneficial to seeing wider 
deployment of these practices.
    First, section 6 requires States, as part of the Capacity 
Development Strategy, to consider, solicit, and include as 
appropriate, how the State will encourage the use of asset 
management plans and assist, including technical assistance, in 
the use of asset management best practices by public water 
systems as part of these plans. The Committee envisions that 
States, as appropriate, will revise their Capacity Development 
Strategies to incorporate this new information.
    Second, section 6 requires that when the State publishes 
its Capacity Development Strategy report to detail the efficacy 
of and progress made on the State's efforts to encourage 
development of asset management plans and engage of relevant 
training to implement asset management plans.
    Last, section 6 requires the Administrator to, every five 
years, review and update, if appropriate, educational materials 
made available by the Agency to owners, managers, and operators 
of public water systems, local officials, technical assistance 
providers (including non-profit water associations), and State 
personnel concerning best practices for asset management 
strategies that may be used.

Section 7. Community Water System risk and resilience

    Using much of the architecture and policy objectives 
contained in existing SDWA section 1433, section 6(a) replaces 
the provisions in SDWA section 1433 regarding the creation of 
risk and resilience assessments and emergency response plans by 
community water systems serving more than 3,300 persons.
    Proposed SDWA section 1433(a)(1) requires community water 
systems serving over 3,300 persons to assess the risks to, and 
resilience of, their system. Proposed SDWA section 
1433(a)(1)(A) mandates that this assessment include a review of 
six elements. These include: (1) the CWS's risk from malevolent 
acts and natural hazards; (2) the resilience of the pipes and 
constructed conveyances, physical barriers, source water, water 
collection and intake, pretreatment, treatment, storage and 
distribution facilities, electronic, computer, or other 
automated systems (including the cyber security of such 
systems) utilized by the CWS; (3) the community water system's 
monitoring practices; (4) the financial infrastructure of the 
community water system, including cyber protections, for 
infrastructure of the CWS; (5) the CWS's use, storage, or 
handling of various chemicals; and (6) the CWS's operation and 
maintenance. In addition, proposed SDWA section 1433(a)(1)(B) 
permits the CWS to include in its assessment an evaluation of 
capital and operational needs for its risk and resilience 
management.
    The Committee notes that proposed section 1433 uses the 
term ``malevolent act'' in place of the terms ``terrorist 
attack or other intentional acts.'' The Committee does not 
intend the switching of these terms to be interpreted to mean 
that these activities are no longer covered. Rather, the 
Committee used the term ``malevolent acts'' to capture the term 
used in the drinking water utility sector to encompass the 
range of threats facings CWSs. When it comes to matters 
surrounding acts meant to substantially disrupt the ability of 
the system to provide a safe and reliable supply of drinking 
water, the Committee wants no ambiguity within the CWS sector 
about what types of assessments or responses need to be made.
    The Committee also defined and included resilience to 
natural hazards in this section because the Committee 
understands that the drinking water utility sector currently 
assesses and addresses their risks holistically, looking at 
both intentional acts and natural hazards such as extreme 
weather. In the wake of Hurricanes Harvey, Irma, and Maria, 
resilience efforts like this by drinking water systems can 
prepare for and mitigate help impacts from extreme weather.
    To aid community water systems in assessing potential risks 
from malevolent acts, proposed SDWA section 1433(a)(2) requires 
EPA, after consultation with appropriate Federal, State, and 
local departments and agencies and not later than August 1, 
2019, to provide relevant baseline information to community 
water systems on malevolent acts that may substantially disrupt 
the ability of the CWS to provide a safe and reliable supply of 
drinking water or might otherwise present significant public 
health or economic concerns to the community served by the CWS.
    Proposed SDWA section 1433(a)(3)(A) requires community 
water systems serving more than more 3,300 persons to submit a 
certification to EPA that the CWS has completed the assessment 
it is mandated to do under proposed SDWA section 1433(a)(1). As 
is done in existing SDWA section 1433(a)(2), proposed SDWA 
section 1433(a)(3)(A) creates a staggered deadline for 
submission of the required certification based on the size of 
the CWS. Specifically, CWSs serving a population of 100,000 or 
more persons must submit their certification by March 31, 2020; 
CWSs serving a population of between 50,000 and 99,999 persons 
must submit their certification by December 31, 2020; and CWSs 
serving a population between 3,301 persons and 49,999 must 
submit their certification by June 30, 2021.
    Of note, proposed SDWA section 1433(a)(3)(B) requires each 
CWS that performed a risk and resilience assessment to review 
their assessment every 5 years--from the date that its 
certification was due to EPA under proposed section 
1433(a)(3)(A)--to determine whether its assessment needs to be 
revised. Similar to proposed SDWA section 1433(a)(3)(A), once 
the CWS completes its quintennial review of its assessment, 
proposed SDWA section 1433(a)(3)(B) requires the CWS to submit 
a certification to EPA that it has reviewed its assessment and, 
if applicable, revised its risk and resilience assessment.
    Proposed SDWA section 1433(a)(4) details the contents 
required to be made a part of the certification. This section 
states that the certifications are limited to three pieces of 
information: (1) the identity of the community water system 
submitting the certification, (2) the date of the 
certification, and (3) a statement that the community water 
system has conducted, reviewed, or revised the assessment. 
Since proposed SDWA section 1433 removes the broad information 
protections in existing SDWA section 1433, any information 
protection afforded to a CWS will come from EPA's determination 
that it meets the criteria of the Freedom of Information Act 
(FOIA). Any CWS unsure whether submitting additional 
information on their certification will be protected by FOIA, 
submits that data at it and its customers' risk.
    Proposed SDWA section 1433(a)(5) also retains existing 
provisions in SDWA section 1433 that prevent a CWS from being 
required to provide, under State or local law, a risk and 
resilience assessment (or any revision of it) to any State, 
regional, or local governmental entity solely because proposed 
SDWA section 1433 required the CWS to submit a certification to 
EPA.
    The Committee believes the use of certifications in the 
newly proposed SDWA section 1433 represents an important 
compromise from existing law and one that addresses concerns 
about protecting very sensitive information from public 
disclosure, while at the same time removing obligations on EPA 
that made use of the information difficult and erected 
substantial financial, storage, and disposal challenges for the 
EPA.
    Section 7(a) also retains the existing SDWA requirement for 
emergency response plans. Proposed SDWA section 1433(b) 
requires a CWS serving more than 3,300 people to prepare or 
revise an emergency response plan that incorporates findings of 
its risk and resilience assessment under proposed SDWA section 
1433(a)(1). In the same form and manner as established under 
proposed SDWA section 1433(a)(3), proposed SDWA section 
1433(b)(1) requires each CWS to certify to EPA, as soon as 
reasonably possible after the date of enactment of the Drinking 
Water System Improvement Act of 2017, but not later than six 
months after completion of its risk and resilience assessment, 
that the CWS complete its emergency response plan. Proposed 
SDWA section 1433(b) requires four elements be included in the 
emergency response plan: (1) strategies and resources to 
improve the resilience of the CWS, including the physical and 
cyber security of the CWS; (2) implementable plans and 
procedures and identification of equipment that can be utilized 
in the event of a malevolent act or natural hazard that 
threatens the ability of the CWS to deliver safe drinking 
water; (3) actions, procedures, and equipment that can obviate 
or significantly lessen the impact of a malevolent act or 
natural hazards on public health and the supply of drinking 
water; and (4) usable strategies to aid in the detection of 
malevolent acts or natural hazards that threaten the security 
or resilience of the CWS.
    Proposed SDWA section 1433(c) is designed to ensure a 
harmonized response to actual events at the CWS. Specifically, 
the CWSs is mandated, to the extent possible, to coordinate 
with existing local emergency planning committees established 
under the Emergency Planning and Community Right-To-Know Act of 
1986 when preparing or revising a risk and resilience 
assessment or emergency response plan.
    Newly proposed SDWA section 1433(d), which requires each 
CWS required to do a risk and resilience assessment or 
emergency response plan under section 1433 to maintain, for 
five years, a copy of the assessment and the emergency response 
plan (including any revised assessment or plan) submitted to 
EPA.
    Proposed SDWA section 1433(e) requires EPA to provide 
guidance and technical assistance to community water systems 
serving a population of less than 3,300 persons on how to 
conduct resilience assessments, prepare emergency response 
plans, and address threats from malevolent acts and natural 
hazards that threaten to disrupt the provision of safe drinking 
water or significantly affect the public health or the safety 
or supply of drinking water. Even though these sized water 
systems are not required to do a risk and resilience assessment 
or devise an emergency response plan, the Committee notes the 
value that programs like this provided to smaller utilities 
trying to protect themselves from malevolent acts.
    Proposed SDWA section 1433(f) creates a path to compliance 
with this section that is separate from the requirements 
contained in proposed subsections (a)(1) and (b) of SDWA 
section 1433. Specifically, proposed SDWA section 1433(f)(1) 
permits a CWS to meet some of its compliance obligations under 
this section by using and complying with technical standards 
that the EPA Administrator, pursuant to section 12(d) of the 
National Technology Transfer and Advancement Act of 1995, has 
recognized as a means of satisfying the requirements proposed 
in sections 1433(a)(1) and 1433(b). Regardless of its use of 
proposed section 1433(f) to satisfy compliance with risk and 
resilience assessment and emergency response plans, the CWS is 
still obligated to submit certifications to EPA acknowledging 
completion of the assessment and plan requirements.
    The Committee believes the alternate compliance path 
provided in proposed SDWA section 1433(f) will increase overall 
compliance by CWSs and reduce the administrative burden on EPA 
and regulated stakeholders. The Committee recognizes that, 
because of changes in technology and emerging threats, water 
systems may be reluctant to make upgrades if they are concerned 
with ensuring regulatory compliance. The Committee's language 
intends to capitalize on efforts that have been organically 
occurring over the last 10 years in the drinking water sector 
to improve detection and response to terrorism and other 
natural disasters. The Committee has taken specific notice of 
efforts taken by drinking water utilities, such as J-100, the 
American Water Work Association/American National Standards 
Institute voluntary consensus standard encompassing an all-
hazards risk and resilience management process, and EPA's 
workshops and tabletop exercises for terrorism and other 
national hazards facing drinking water systems in smaller and 
rural communities. For this reason, the language of proposed 
section 1433(f)(2) deploys the Federal government's existing 
practice, under section 12(d) of the National Technology 
Transfer and Advancement Act of 1995, of recognizing technical 
standards developed or adopted by third-party organizations or 
voluntary consensus standards bodies that carry out the policy 
objectives of or activities required by Federal law.
    Proposed SDWA section 1433(g) creates an EPA program, 
called the Drinking Water Infrastructure Risk and Resilience 
Program, under which EPA can award grants to owners or 
operators of CWSs to help increase their resilience. Grants 
made available under this subsection are authorized for five 
years, from fiscal year 2018 through 2022.
    Under proposed SDWA section 1433(g)(2), an owner or 
operator of a CWS receiving a grant from the Drinking Water 
Infrastructure Risk and Resilience Program is required to use 
the grant funds exclusively to assist in the planning, design, 
construction, or implementation of a program or project 
consistent with its emergency response plan. Eligible expenses 
include a range of items and activities, including the purchase 
and installation of equipment to detect drinking water 
contaminants or malevolent acts; fencing, gating, lighting, or 
security cameras; treatment technologies and equipment to 
improve drinking water system resilience; improvements to 
electronic, computer, financial, or other automated systems and 
remote systems; and participation in training programs, and the 
purchase of training manuals and guidance materials, relating 
to security and resilience.
    Proposed SDWA section 1433(g)(3) precludes grants awarded 
from the Drinking Water Infrastructure Risk and Resilience 
Program from being used for used for personnel costs, or for 
monitoring, operation, or maintenance of facilities, equipment, 
or systems.
    Proposed SDWA section 1433(h)(4) authorizes, for fiscal 
years 2018 through 2022, $5,000,000 from the funds provided to 
the Drinking Water Infrastructure Risk and Resilience Program 
to provide technical assistance to community water systems to 
assist in responding to and alleviating a vulnerability that 
would substantially disrupt the CWS system from providing a 
safe and reliable supply of drinking water that EPA determines 
to present an immediate and urgent need.
    Proposed SDWA section 1433(h)(5) authorizes, for fiscal 
years 2018 through 2022, $10,000,000 from the funds provided to 
the Drinking Water Infrastructure Risk and Resilience Program 
to provide grants to community water systems serving a 
population of less than 3,300 persons, or nonprofit 
organizations receiving assistance under SDWA section 1442(e), 
for technical assistance activities that are consistent with 
proposed SDWA section 1433(e).
    Proposed SDWA section 1433(h)(6) authorizes appropriations 
of $35,000,000 for each of fiscal years 2018 to 2022 to carry 
out SDWA section 1433(h).
    Finally, proposed section 1433(h) creates the operable 
definitions for proposed for use in SDWA section 1433.
    The term ``resilience'' means the ability of a community 
water system or an asset of a community water system to adapt 
to or withstand the effects of a malevolent act or natural 
hazard without interruption to the asset's or system's 
function, or if the function is interrupted, to rapidly return 
to a normal operating condition.
    The term ``natural hazard'' means a natural event that 
threatens the functioning of a community water system, 
including an earthquake, tornado, flood, hurricane, wildfire, 
and hydrologic changes.
    Section 7(b)(1) makes a clarification regarding the 
treatment of information obtained by EPA under SDWA section 
1433 prior to the date of enactment the Drinking Water System 
Improvement Act. The Committee understands that even though 
many years have passed since community water systems submitted 
their vulnerability information to EPA, even an accidental 
release of information could compromise the security of 
America's water system or the public's health. For this reason, 
section 7(b) retains, for information previously submitted to 
EPA pursuant to SDWA section 1433, the protections from public 
disclosure that were in effect on the day before enactment of 
the Drinking Water System Improvement Act.
    Section 7(b)(2) attempts to address whether and how to 
dispose of vulnerability assessments and related information 
obtained by EPA more than 10 years ago. Due to stringent 
statutory requirements on access controls, handling, and 
providing this sensitive information submitted to others, EPA 
has been unable to find a cost-effective way to return 
potentially outdated vulnerability assessments to the 
submitting CWS without risking unauthorized disclosure or 
otherwise violating the law. Section 7(b)(2) requires EPA, in 
partnership with community water systems to develop a strategy 
to, timely, securely, and permanently dispose of, or return to 
the applicable community water system, any information EPA 
obtained from it that contains protected information.

Section 8. Authorization for grants for state programs

    Section 8 reauthorizes appropriations for the Public Water 
System Supervision grants under SDWA section 1443(a)(7) at 
$150,000,000 in each of fiscal years 2018 through 2022.

Section 9. Monitoring for unregulated contaminants

    Section 9 amends SDWA section 1445 to require, no earlier 
than three years after the date of enactment of the Drinking 
Water System Improvement Act and subject to certain conditions, 
monitoring of unregulated contaminants by public water systems 
serving between 3,300 and 10,000 persons.
    Specifically, section 9(a) suspends the SDWA section 
1445(a)(2)(A) requirement to only require a representative 
sample of public water systems serving 10,000 persons or fewer 
to monitor for unregulated contaminants. In its place, section 
9(a) requires, subject to the availability of appropriations 
and a determination of sufficient laboratory capacity to 
accommodate the additional analyses, that public water systems 
serving between 3,300 and 10,000 persons be subject to 
monitoring requirements and that a system serving less than 
3,300 be subject to monitoring only as part of a representative 
sample.
    Finally, section 9(c) amends SDWA section 1445(g)(7) to 
require unregulated contaminant monitoring data collected using 
this new, broader universe of systems serving between 3,300 and 
10,000 persons, be included in EPA's Unregulated Contaminants 
Data Base unless it duplicates monitoring information obtained 
from similarly sized public water systems.
    The Committee is aware of the compliance burden that new 
monitoring could create for many smaller public water systems, 
especially since utilities subject to monitoring as part of a 
representative sample have their mailing and testing costs paid 
for by the Federal government. The Committee took care to 
protect against this burden in two ways. First, section 9(b) 
does not affect the intent and operation of SDWA sections 
1445(a)(2)(H) and 1452(o)--but extends the authorization in 
SDWA section 1445(a)(2)(H) through fiscal year 2022--and 
section 9(a) adds an additional authorization of $15,000,000 in 
appropriations for this purpose. Second, to avoid systems' non-
compliance due to their inability to afford it without Federal 
aid, the Committee conditioned the requirement on EPA, in 
proposed SDWA section 1445(j)(1), to require monitoring for 
systems serving between 3,300 and 10,000 on the availability of 
appropriations. If the appropriations are not available to 
address the burdens to EPA and water systems, the Committee 
intends that EPA revert to its existing practice of using a 
representative sample for systems serving a population of 
10,000 or fewer.
    The Committee supports EPA's use of high quality science in 
its work, but is concerned that invalid, incomplete, or 
incorrectly gathered monitoring data will compromise its value 
to EPA, particularly in terms of meeting EPA's statistical 
modeling and analysis of it. Since the Committee does not wish 
to place water systems in the ``Catch-22'' position of 
complying with the requirement to obtain the sample, but unable 
to have an approved laboratory to analyze the sample; section 
9(a) contains proposed SDWA section 1445(j)(3), which permits 
EPA to stop these new monitoring requirements if there is not 
sufficient laboratory capacity to carry out the sample 
analysis. Should EPA determine there is not sufficient 
laboratory capacity to handle the increase in required 
monitoring, the Committee intends that EPA revert to its 
existing practice of using a representative sample for systems 
serving a population of 10,000 or fewer.

Section 10. State Revolving Loan Funds

    Section 10 makes different amendments to provisions related 
to State Revolving Loan Funds under SDWA section 1452.
    Section 10(a) clarifies and expands the types of eligible 
expenditures permitted from a State DWSRF under SDWA section 
1452(a)(2)(B), conditioned on the EPA Administrator determining 
that they facilitate compliance with national primary drinking 
water standards or significantly further the public health 
objectives of the SDWA. Specifically, ``siting'' is now its own 
expenditure--and not a subset of ``an associated 
preconstruction activity''--and ``replacing or rehabilitating 
aging treatment, storage, or distribution facilities of public 
water systems'' becomes an explicit eligible use.
    Section 10(b) also amends the American Iron and Steel 
Products purchase requirements in SDWA section 1452(a)(4) by 
extending its application to fiscal years 2018 through 2022.
    Section 10(c) adds a new SDWA section 1452(a)(5) that 
requires, between fiscal years 2018 and 2022, water utilities 
serving a population of more than 10,000 can only obtain DWSRF 
funding if they considered the cost and effectiveness of the 
relevant processes, materials, techniques, and technologies for 
carrying out their project and certified this consideration to 
its State.
    This provision is not meant to convey a preference for any 
materials nor to make cost the sole feature of any 
consideration. Rather, this language is an effort to ensure 
DWSRF money is going to projects where recipients have 
considered both the cost as well as the effectiveness of the 
relevant processes, materials, techniques, and technologies 
that public money is purchasing.
    The Committee is aware that section 602(b)(13) of the 
Federal Water Pollution Control Act (Clean Water Act) currently 
contains a related mandate on recipients of Clean Water Act 
State Revolving Funds that could serve as a model. Rather than 
using the exact same mandate in the Safe Drinking Water Act, 
the Committee was worried about the potential burden this could 
place on States and those receiving assistance from the DWSRF. 
The Committee consciously chose to use a less prescriptive and 
burdensome version of Clean Water Act section 602(b)(13).
    Whereas the Clean Water Act language requires a waste water 
utility to ``study and evaluate'' the cost and effectiveness of 
the processes, materials, techniques, and technologies used in 
the project funded by the SRF money, section 10(c) of the 
Drinking Water System Improvement Act only requires the system 
to ``consider'' them. The Committee does not intend this 
consideration to be a perfunctory exercise, an endless analysis 
by the community, or litigated by goods or services providers 
that are not selected for a project. Consideration is satisfied 
when a community's relevant authority thinks about reasonably 
available, technically and economically feasible products to 
complete the project, what their respective costs might be, and 
whether the technical or environmental conditions merit their 
use.
    Importantly, the required consideration is not binding on 
the decision made by a community. Communities have several 
reasons for making the decisions that they do and the Committee 
believes those are discussions that need to occur between 
community decision makers and the users of the system.
    The Clean Water Act language places requirements on the 
selection of projects by SRF applicants as well as certain 
needs that must be achieved through the selection process. The 
language in section 10(c), however, intentionally omits 
selection criteria mandates. The Committee is concerned that 
doing so would sever the important relationship between local 
communities and their engineer of record in designing a water 
project in the manner that best serves the unique needs and 
considerations of local communities.
    Finally, section 10(c), like the Clean Water Act, requires 
a certification to the State--presumably the office responsible 
for operating its DWSRF--that the consideration has been made 
by the DWSRF applicant. The Committee does not intend this to 
be a burdensome or involved process and is concerned this 
requirement could be misunderstood and develop into an onerous 
approval process, which could unnecessarily delay projects. The 
Committee understands that some States require only a signed 
check list to demonstrate compliance to the State under the 
Clean Water Act; that simple arrangement would more than meet 
the Committee's expectation for fulfillment of the 
certification.
    Section 10(d) institutes a new SDWA section 1452(a)(6) that 
applies Federal requirements regarding prevailing wage 
treatment for laborers and mechanics to drinking water loan 
funded construction under the Safe Drinking Water Act. The 
practical value of this provision is that it locates the 
prevailing wage requirement in the SDWA. Congress already has 
applied Davis-Bacon prevailing wage requirements through 
appropriations law to DWSRF program funding for fiscal year 
2012 and all future years.
    Section 10(e) makes two changes to SDWA section 1452(d)(2) 
related to the amount of loan subsidies made available to 
disadvantaged communities by a State DWSRF in a fiscal year, 
including those communities a State expects to become 
disadvantaged because of its proposed project.
    Under section 10(e), the ceiling on the amount of DWSRF 
assistance used for these purposes is raised from 30 percent to 
35 percent of the State's capitalization grant.
    Additionally, section 10(e) institutes a minimum 
requirement that 6 percent of a State's annual DWSRF 
capitalization grant be dedicated to loan subsidies made 
available to eligible water systems meeting the definition of a 
disadvantaged community under SDWA section 1452(d)(3). If a 
State does not have enough applications for DWSRF assistance 
from eligible disadvantaged communities that total 6 percent of 
the State's annual DWSRF capitalization grant, the State may 
use these funds for other worthy DWSRF applicants.
    Section 10(f) makes changes to SDWA section 1452(f)(1) 
regarding repayment of principal and interest on loans issued 
by a State DWSRF. Existing law provides that principal and 
interest payments begin no later than one year after completion 
of the project; that each loan to be fully amortized within 20 
years of the project's completion; and that States may provide 
disadvantaged communities an extended loan period of 30 years 
after the date of project's completion so long as the extended 
term does not exceed the expected design life of the project.
    Under section 10(f), principal and interest payments cannot 
begin later than 18 months after completion of the project on 
which the loan was made; requires each loan to be fully 
amortized within 30 years of the project's completion; and 
permits States to allow disadvantaged communities an extended 
loan period of 40 years after the date of project's completion 
so long as the extended term does not exceed the expected 
design life of the project.
    Section 10(g) amends SDWA section 1452(h) to require EPA, 
in any needs assessment after the date of enactment of the 
Drinking Water System Improvement Act, to include an assessment 
of costs to replace all lead service lines (as defined in SDWA 
section 1459B(a)(4)) of all eligible public water systems in 
the United States. To help provide a more granular picture of 
lead service lines, section 10(g) requires EPA's assessment to 
separately describe the costs associated with replacing the 
portions of lead service lines that are owned by an eligible 
public water system and, to the extent practicable, the costs 
associated with replacing any remaining portions of lead 
service lines, including those owned by private residences.
    The Committee wishes to note here that it is aware of 
ongoing legal questions related to the ownership of lead 
service lines. The Committee does not wish to use this bill to 
take a position on that question and intentionally drafted to 
avoid any implication that Congress was taking an opinion on 
this matter.
    Section 10(h) removes the current restriction in SDWA 
section 1452(k)(1)(C) on States using a portion of their DWSRF 
capitalization grant to delineate and assess source water 
protection areas in accordance with SDWA section 1453. Section 
10(h) retains the requirement in SDWA section 1452(k)(1)(C) 
that funds set aside for this purpose be obligated within four 
fiscal years.
    Section 10(i) reauthorizes appropriations to carry out SDWA 
section 1452 and operation of the DWSRF, providing $8 million 
over five years. Specifically, section 10(i) authorizes $1.2 
billion in fiscal year 2018, $1.4 billion in fiscal year 2019, 
$1.6 billion in fiscal year 2020, $1.8 billion in fiscal year 
2021, and $2 billion in fiscal year 2022.
    Section 10(j) creates a new SDWA section 1452(s) related to 
best practices for the DWSRF. Specifically, EPA is authorized 
to collect--within three years--information from States on 
efforts and practices related to streamlining and aiding the 
DWSRF application process; spending of DWSRF funds and types of 
assistance granted; and enhancing management of and use of key 
financial measures for their DWSRFs. EPA is then required to 
take this information and make publicly available those best 
practices from among the data it has collected.

Section 11. Authorization for Source Water Petition Programs

    Section 11 extends the reauthorization of appropriations 
from fiscal years 2018 through 2022 to carry out the Source 
Water Petition Program under SDWA section 1454(e). The program 
provides grants to States that establish a voluntary source 
water protection partnership program that meets EPA guidelines 
and is approved by the Administrator.

Section 12. Review of technologies

    Section 12 creates a new SDWA section 1459C dedicated to 
innovative efforts to protect public health. This section 
authorizes $10 million for EPA to review existing and potential 
methods, means, equipment, and intelligent systems or other 
smart smart-technology to: (1) ensure the physical integrity of 
a community water system; (2) prevent, detect, or respond in 
real-time to regulated contaminants in drinking water and 
source water; (3) allows for use of alternate drinking water 
supplies from non-traditional sources; and (4) facilitate 
source water assessments and protection.

Section 13. Drinking water fountain replacement for schools

    Section 13 creates a new SDWA section 1465. Under this 
section, EPA is required to establish a grant program, 
authorized at $5,000,000 per year for fiscal years 2018 through 
2022, to provide assistance to schools and daycare centers 
containing drinking water fountains manufactured before 1988. 
Specifically, the grants are to be used to replace those 
drinking water fountains and may be used to pay for monitoring 
lead levels in those schools or daycare centers.
    Section 13 also requires that priority for awarding these 
grants should go to schools and daycare centers based upon 
economic need. The Committee intends ``economic need'' to be 
interpreted to mean that the school or daycare would otherwise 
have trouble obtaining the resources to make this improvement.

Section 14. Source water

    Section 14 amends the Emergency Planning and Community 
Right to Know Act (EPCRA) to help community water systems 
better understand real and potential threats to the source 
water they treat for drinking water.
    First, section 14 amends EPCRA section 304 to have a State 
emergency response commission notify the State office primarily 
responsible for drinking water if a regulated entity has an 
unauthorized release to the source water of a community water 
system. Once notified, the State office primarily responsible 
for drinking water then alerts any community water system whose 
source water is affected by such release.
    In addition, section 14 amends EPCRA section 312(e) to 
permit community water systems to have access to information on 
the types of hazardous chemicals located at facilities near the 
source water they use for drinking water.

Section 15. Report on Federal cross-cutting requirements

    The Subcommittee on the Environment received testimony on 
the impact of cross-cutting requirements.
    Section 15 requires the Government Accountability Office, 
within one year of the date of enactment of the Drinking Water 
System Improvement Act, to conduct a study and issue a report 
to Congress that identifies demonstrations of compliance with a 
State or local environmental law that may be substantially 
equivalent to any demonstration required by the Administrator 
for compliance with a Federal cross-cutting requirement (a 
requirement that is a condition for receipt of Federal 
funding). The study is supposed to be conducted in consultation 
with EPA, State agencies that have primary enforcement 
responsibility for SDWA, and public water systems.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                        SAFE DRINKING WATER ACT


TITLE XIV--SAFETY OF PUBLIC WATER SYSTEMS

           *       *       *       *       *       *       *



Part B--Public Water Systems

           *       *       *       *       *       *       *



                state primary enforcement responsibility

  Sec. 1413. (a) For purposes of this title, a State has 
primary enforcement responsibility for public water systems 
during any period for which the Administrator determines 
(pursuant to regulations prescribed under subsection (b)) that 
such State--
          (1) has adopted drinking water regulations that are 
        no less stringent than the national primary drinking 
        water regulations promulgated by the Administrator 
        under subsections (a) and (b) of section 1412 not later 
        than 2 years after the date on which the regulations 
        are promulgated by the Administrator, except that the 
        Administrator may provide for an extension of not more 
        than 2 years if, after submission and review of 
        appropriate, adequate documentation from the State, the 
        Administrator determines that the extension is 
        necessary and justified;
          (2) has adopted and is implementing adequate 
        procedures for the enforcement of such State 
        regulations, including conducting such monitoring and 
        making such inspections as the Administrator may 
        require by regulation;
          (3) will keep such records and make such reports with 
        respect to its activities under paragraphs (1) and (2) 
        as the Administrator may require by regulation;
          (4) if it permits variances or exemptions, or both, 
        from the requirements of its drinking water regulations 
        which meet the requirements of paragraph (1), permits 
        such variances and exemptions under conditions and in a 
        manner which is not less stringent than the conditions 
        under, and the manner in, which variances and 
        exemptions may be granted under sections 1415 and 1416;
          (5) has adopted and can implement an adequate plan 
        for the provision of safe drinking water under 
        emergency circumstances including earthquakes, floods, 
        hurricanes, and other natural disasters, as 
        appropriate[; and];
          (6) has adopted and is implementing procedures for 
        requiring public water systems to assess options for, 
        and complete, consolidation or transfer of ownership, 
        in accordance with the regulations issued by the 
        Administrator under section 1414(h)(6); and
          [(6)] (7) has adopted authority for administrative 
        penalties (unless the constitution of the State 
        prohibits the adoption of the authority) in a maximum 
        amount--
                  (A) in the case of a system serving a 
                population of more than 10,000, that is not 
                less than $1,000 per day per violation; and
                  (B) in the case of any other system, that is 
                adequate to ensure compliance (as determined by 
                the State);
        except that a State may establish a maximum limitation 
        on the total amount of administrative penalties that 
        may be imposed on a public water system per violation.
  (b)(1) The Administrator shall, by regulation (proposed 
within 180 days of the date of the enactment of this title), 
prescribe the manner in which a State may apply to the 
Administrator for a determination that the requirements [of 
paragraphs (1), (2), (3), and (4)] of subsection (a) are 
satisfied with respect to the State, the manner in which the 
determination is made, the period for which the determination 
will be effective, and the manner in which the Administrator 
may determine that such requirements are no longer met. Such 
regulations shall require that before a determination of the 
Administrator that such requirements are met or are no longer 
met with respect to a State may become effective, the 
Administrator shall notify such State of the determination and 
the reasons therefor and shall provide an opportunity for 
public hearing on the determination. Such regulations shall be 
promulgated (with such modifications as the Administrator deems 
appropriate) within 90 days of the publication of the proposed 
regulations in the Federal Register. The Administrator shall 
promptly notify in writing the chief executive officer of each 
State of the promulgation of regulations under this paragraph. 
Such notice shall contain a copy of the regulations and shall 
specify a State's authority under this title when it is 
determined to have primary enforcement responsibility for 
public water systems.
  (2) When an application is submitted in accordance with the 
Administrator's regulations under paragraph (1), the 
Administrator shall within 90 days of the date on which such 
application is submitted (A) make the determination applied 
for, or (B) deny the application and notify the applicant in 
writing of the reasons for his denial.
  (c) Interim Primary Enforcement Authority.--A State that has 
primary enforcement authority under this section with respect 
to each existing national primary drinking water regulation 
shall be considered to have primary enforcement authority with 
respect to each new or revised national primary drinking water 
regulation during the period beginning on the effective date of 
a regulation adopted and submitted by the State with respect to 
the new or revised national primary drinking water regulation 
in accordance with subsection (b)(1) and ending at such time as 
the Administrator makes a determination under subsection 
(b)(2)(B) with respect to the regulation.

               enforcement of drinking water regulations

  Sec. 1414. (a)(1)(A) Whenever the Administrator finds during 
a period during which a State has primary enforcement 
responsibility for public water systems (within the meaning of 
section 1413(a)) that any public water system--
          (i) for which a variance under section 1415 or an 
        exemption under section 1416 is not in effect, does not 
        comply with any applicable requirement, or
          (ii) for which a variance under section 1415 or an 
        exemption under section 1416 is in effect, does not 
        comply with any schedule or other requirement imposed 
        pursuant thereto,
he shall so notify the State and such public water system and 
provide such advice and technical assistance to such State and 
public water system as may be appropriate to bring the system 
into compliance with the requirement by the earliest feasible 
time.
  (B) If, beyond the thirtieth day after the Administrator's 
notification under subparagraph (A), the State has not 
commenced appropriate enforcement action, the Administrator 
shall issue an order under subsection (g) requiring the public 
water system to comply with such applicable requirement or the 
Administrator shall commence a civil action under subsection 
(b).
          (2) Enforcement in nonprimacy states.--
                  (A) In general.--If, on the basis of 
                information available to the Administrator, the 
                Administrator finds, with respect to a period 
                in which a State does not have primary 
                enforcement responsibility for public water 
                systems, that a public water system in the 
                State--
                          (i) for which a variance under 
                        section 1415 or an exemption under 
                        section 1416 is not in effect, does not 
                        comply with any applicable requirement; 
                        or
                          (ii) for which a variance under 
                        section 1415 or an exemption under 
                        section 1416 is in effect, does not 
                        comply with any schedule or other 
                        requirement imposed pursuant to the 
                        variance or exemption;
                the Administrator shall issue an order under 
                subsection (g) requiring the public water 
                system to comply with the requirement, or 
                commence a civil action under subsection (b).
                  (B) Notice.--If the Administrator takes any 
                action pursuant to this paragraph, the 
                Administrator shall notify an appropriate local 
                elected official, if any, with jurisdiction 
                over the public water system of the action 
                prior to the time that the action is taken.
  (b) The Administrator may bring a civil action in the 
appropriate United States district court to require compliance 
with any applicable requirement, with an order issued under 
subsection (g), or with any schedule or other requirement 
imposed pursuant to a variance or exemption granted under 
section 1415 or 1416 if--
          (1) authorized under paragraph (1) or (2) of 
        subsection (a), or
          (2) if requested by (A) the chief executive officer 
        of the State in which is located the public water 
        system which is not in compliance with such regulation 
        or requirement, or (B) the agency of such State which 
        has jurisdiction over compliance by public water 
        systems in the State with national primary drinking 
        water regulations or State drinking water regulations.
The court may enter, in an action brought under this 
subsection, such judgment as protection of public health may 
require, taking into consideration the time necessary to comply 
and the availability of alternative water supplies; and, if the 
court determines that there has been a violation of the 
regulation or schedule or other requirement with respect to 
which the action was brought, the court may, taking into 
account the seriousness of the violation, the population at 
risk, and other appropriate factors, impose on the violator a 
civil penalty of not to exceed $25,000 for each day in which 
such violation occurs.
  (c) Notice to States, the Administrator, and Persons 
Served.--
          (1) In general.--Each owner or operator of a public 
        water system shall give notice of each of the following 
        to the persons served by the system:
                  (A) Notice of any failure on the part of the 
                public water system to--
                          (i) comply with an applicable maximum 
                        contaminant level or treatment 
                        technique requirement of, or a testing 
                        procedure prescribed by, a national 
                        primary drinking water regulation; or
                          (ii) perform monitoring required by 
                        section 1445(a).
                  (B) If the public water system is subject to 
                a variance granted under subsection (a)(1)(A), 
                (a)(2), or (e) of section 1415 for an inability 
                to meet a maximum contaminant level requirement 
                or is subject to an exemption granted under 
                section 1416, notice of--
                          (i) the existence of the variance or 
                        exemption; and
                          (ii) any failure to comply with the 
                        requirements of any schedule prescribed 
                        pursuant to the variance or exemption.
                  (C) Notice of the concentration level of any 
                unregulated contaminant for which the 
                Administrator has required public notice 
                pursuant to paragraph (2)(F).
                  (D) Notice that the public water system 
                exceeded the lead action level under section 
                141.80(c) of title 40, Code of Federal 
                Regulations (or a prescribed level of lead that 
                the Administrator establishes for public 
                education or notification in a successor 
                regulation promulgated pursuant to section 
                1412).
          (2) Form, manner, and frequency of notice.--
                  (A) In general.--The Administrator shall, by 
                regulation, and after consultation with the 
                States, prescribe the manner, frequency, form, 
                and content for giving notice under this 
                subsection. The regulations shall--
                          (i) provide for different frequencies 
                        of notice based on the differences 
                        between violations that are 
                        intermittent or infrequent and 
                        violations that are continuous or 
                        frequent; and
                          (ii) take into account the 
                        seriousness of any potential adverse 
                        health effects that may be involved.
                  (B) State requirements.--
                          (i) In general.--A State may, by 
                        rule, establish alternative 
                        notification requirements--
                                  (I) with respect to the form 
                                and content of notice given 
                                under and in a manner in 
                                accordance with subparagraph 
                                (C); and
                                  (II) with respect to the form 
                                and content of notice given 
                                under subparagraph (E).
                          (ii) Contents.--The alternative 
                        requirements shall provide the same 
                        type and amount of information as 
                        required pursuant to this subsection 
                        and regulations issued under 
                        subparagraph (A).
                          (iii) Relationship to section 1413.--
                        Nothing in this subparagraph shall be 
                        construed or applied to modify the 
                        requirements of section 1413.
                  (C) Notice of violations or exceedances with 
                potential to have serious adverse effects on 
                human health.--Regulations issued under 
                subparagraph (A) shall specify notification 
                procedures for each violation, and each 
                exceedance described in paragraph (1)(D), by a 
                public water system that has the potential to 
                have serious adverse effects on human health as 
                a result of short-term exposure. Each notice of 
                violation or exceedance provided under this 
                subparagraph shall--
                          (i) be distributed as soon as 
                        practicable, but not later than 24 
                        hours, after the public water system 
                        learns of the violation or exceedance;
                          (ii) provide a clear and readily 
                        understandable explanation of--
                                  (I) the violation or 
                                exceedance;
                                  (II) the potential adverse 
                                effects on human health;
                                  (III) the steps that the 
                                public water system is taking 
                                to correct the violation or 
                                exceedance; and
                                  (IV) the necessity of seeking 
                                alternative water supplies 
                                until the violation or 
                                exceedance is corrected;
                          (iii) be provided to the 
                        Administrator and the head of the State 
                        agency that has primary enforcement 
                        responsibility under section 1413, as 
                        applicable, as soon as practicable, but 
                        not later than 24 hours after the 
                        public water system learns of the 
                        violation or exceedance; and
                          (iv) as required by the State agency 
                        in general regulations of the State 
                        agency, or on a case-by-case basis 
                        after the consultation referred to in 
                        clause (iii), considering the health 
                        risks involved--
                                  (I) be provided to 
                                appropriate media, including 
                                broadcast media;
                                  (II) be prominently published 
                                in a newspaper of general 
                                circulation serving the area 
                                not later than 1 day after 
                                distribution of a notice 
                                pursuant to clause (i) or the 
                                date of publication of the next 
                                issue of the newspaper; or
                                  (III) be provided by posting 
                                or door-to-door notification.
                  (D) Notice by the administrator.--If the 
                State with primary enforcement responsibility 
                or the owner or operator of a public water 
                system has not issued a notice under 
                subparagraph (C) for an exceedance of the lead 
                action level under section 141.80(c) of title 
                40, Code of Federal Regulations (or a 
                prescribed level of lead that the Administrator 
                establishes for public education or 
                notification in a successor regulation 
                promulgated pursuant to section 1412) that has 
                the potential to have serious adverse effects 
                on human health as a result of short-term 
                exposure, not later than 24 hours after the 
                Administrator is notified of the exceedance, 
                the Administrator shall issue the required 
                notice under that subparagraph.
                  (E) Written notice.--
                          (i) In general.--Regulations issued 
                        under subparagraph (A) shall specify 
                        notification procedures for violations 
                        other than the violations covered by 
                        subparagraph (C). The procedures shall 
                        specify that a public water system 
                        shall provide written notice to each 
                        person served by the system by notice 
                        (I) in the first bill (if any) prepared 
                        after the date of occurrence of the 
                        violation, (II) in an annual report 
                        issued not later than 1 year after the 
                        date of occurrence of the violation, or 
                        (III) by mail or direct delivery as 
                        soon as practicable, but not later than 
                        1 year after the date of occurrence of 
                        the violation.
                          (ii) Form and manner of notice.--The 
                        Administrator shall prescribe the form 
                        and manner of the notice to provide a 
                        clear and readily understandable 
                        explanation of the violation, any 
                        potential adverse health effects, and 
                        the steps that the system is taking to 
                        seek alternative water supplies, if 
                        any, until the violation is corrected.
                  (F) Unregulated contaminants.--The 
                Administrator may require the owner or operator 
                of a public water system to give notice to the 
                persons served by the system of the 
                concentration levels of an unregulated 
                contaminant required to be monitored under 
                section 1445(a).
          (3) Reports.--
                  (A) Annual report by state.--
                          (i) In general.--Not later than 
                        January 1, 1998, and annually 
                        thereafter, each State that has primary 
                        enforcement responsibility under 
                        section 1413 shall prepare, make 
                        readily available to the public, and 
                        submit to the Administrator an annual 
                        report on violations of national 
                        primary drinking water regulations by 
                        public water systems in the State, 
                        including violations with respect to 
                        (I) maximum contaminant levels, (II) 
                        treatment requirements, (III) variances 
                        and exemptions, and (IV) monitoring 
                        requirements determined to be 
                        significant by the Administrator after 
                        consultation with the States.
                          (ii) Distribution.--The State shall 
                        publish and distribute summaries of the 
                        report and indicate where the full 
                        report is available for review.
                  (B) Annual report by administrator.--Not 
                later than July 1, 1998, and annually 
                thereafter, the Administrator shall prepare and 
                make available to the public an annual report 
                summarizing and evaluating reports submitted by 
                States pursuant to subparagraph (A), notices 
                submitted by public water systems serving 
                Indian Tribes provided to the Administrator 
                pursuant to subparagraph (C) or (E) of 
                paragraph (2), and notices issued by the 
                Administrator with respect to public water 
                systems serving Indian Tribes under 
                subparagraph (D) of that paragraph and making 
                recommendations concerning the resources needed 
                to improve compliance with this title. The 
                report shall include information about public 
                water system compliance on Indian reservations 
                and about enforcement activities undertaken and 
                financial assistance provided by the 
                Administrator on Indian reservations, and shall 
                make specific recommendations concerning the 
                resources needed to improve compliance with 
                this title on Indian reservations.
          (4) Consumer confidence reports by community water 
        systems.--
                  (A)  [Annual reports] Reports to consumers.--
                The Administrator, in consultation with public 
                water systems, environmental groups, public 
                interest groups, risk communication experts, 
                and the States, and other interested parties, 
                shall issue regulations within 24 months after 
                the date of enactment of this paragraph to 
                require each community water system to mail, or 
                provide by electronic means, to each customer 
                of the system at least once annually a report 
                on the level of contaminants in the drinking 
                water purveyed by that system (referred to in 
                this paragraph as a ``consumer confidence 
                report''). Such regulations shall provide a 
                brief and plainly worded definition of the 
                terms ``maximum contaminant level goal'', 
                ``maximum contaminant level'', ``variances'', 
                and ``exemptions'' and brief statements in 
                plain language regarding the health concerns 
                that resulted in regulation of each regulated 
                contaminant. The regulations shall also include 
                a brief and plainly worded explanation 
                regarding contaminants that may reasonably be 
                expected to be present in drinking water, 
                including bottled water. The regulations shall 
                also provide for an Environmental Protection 
                Agency toll-free hotline that consumers can 
                call for more information and explanation.
                  (B) Contents of report.--The consumer 
                confidence reports under this paragraph shall 
                include, but not be limited to, each of the 
                following:
                          (i) Information on the source of the 
                        water purveyed.
                          (ii) A brief and plainly worded 
                        definition of the terms ``action 
                        level'', ``maximum contaminant level 
                        goal'', ``maximum contaminant level'', 
                        ``variances'', and ``exemptions'' as 
                        provided in the regulations of the 
                        Administrator.
                          (iii) If any regulated contaminant is 
                        detected in the water purveyed by the 
                        public water system, a statement 
                        describing, as applicable--
                                  (I) the maximum contaminant 
                                level goal;
                                  (II) the maximum contaminant 
                                level;
                                  (III) the level of the 
                                contaminant in the water 
                                system;
                                  (IV) the action level for the 
                                contaminant; and
                                  (V) for any contaminant for 
                                which there has been a 
                                violation of the maximum 
                                contaminant level during the 
                                year concerned, a brief 
                                statement in plain language 
                                regarding the health concerns 
                                that resulted in regulation of 
                                the contaminant, as provided by 
                                the Administrator in 
                                regulations under subparagraph 
                                (A).
                          (iv) Information on compliance with 
                        national primary drinking water 
                        regulations, as required by [the 
                        Administrator, and] the Administrator, 
                        including corrosion control efforts, 
                        and notice if the system is operating 
                        under a variance or exemption and the 
                        basis on which the variance or 
                        exemption was granted.
                          (v) Information on the levels of 
                        unregulated contaminants for which 
                        monitoring is required under section 
                        1445(a)(2) (including levels of 
                        cryptosporidium and radon where States 
                        determine they may be found).
                          (vi) A statement that the presence of 
                        contaminants in drinking water does not 
                        necessarily indicate that the drinking 
                        water poses a health risk and that more 
                        information about contaminants and 
                        potential health effects can be 
                        obtained by calling the Environmental 
                        Protection Agency hotline.
                          (vii) Identification of, if any--
                                  (I) exceedances described in 
                                paragraph (1)(D) for which 
                                corrective action has been 
                                required by the Administrator 
                                or the State (in the case of a 
                                State exercising primary 
                                enforcement responsibility for 
                                public water systems) during 
                                the monitoring period covered 
                                by the consumer confidence 
                                report; and
                                  (II) violations that occurred 
                                during the monitoring period 
                                covered by the consumer 
                                confidence report.
                A public water system may include such 
                additional information as it deems appropriate 
                for public education. The Administrator may, 
                for not more than 3 regulated contaminants 
                other than those referred to in clause 
                (iii)(V), require a consumer confidence report 
                under this paragraph to include the brief 
                statement in plain language regarding the 
                health concerns that resulted in regulation of 
                the contaminant or contaminants concerned, as 
                provided by the Administrator in regulations 
                under subparagraph (A).
                  (C) Coverage.--The Governor of a State may 
                determine not to apply the mailing requirement 
                of subparagraph (A) to a community water system 
                serving fewer than 10,000 persons. Any such 
                system shall--
                          (i) inform, in the newspaper notice 
                        required by clause (iii) or by other 
                        means, its customers that the system 
                        will not be mailing the report as 
                        required by subparagraph (A);
                          (ii) make the consumer confidence 
                        report available upon request to the 
                        public; and
                          (iii) publish the report referred to 
                        in subparagraph (A) annually in one or 
                        more local newspapers serving the area 
                        in which customers of the system are 
                        located.
                  (D) Alternative to publication.--For any 
                community water system which, pursuant to 
                subparagraph (C), is not required to meet the 
                mailing requirement of subparagraph (A) and 
                which serves 500 persons or fewer, the 
                community water system may elect not to comply 
                with clause (i) or (iii) of subparagraph (C). 
                If the community water system so elects, the 
                system shall, at a minimum--
                          (i) prepare an annual consumer 
                        confidence report pursuant to 
                        subparagraph (B); and
                          (ii) provide notice at least once per 
                        year to each of its customers by mail, 
                        by door-to-door delivery, by posting or 
                        by other means authorized by the 
                        regulations of the Administrator that 
                        the consumer confidence report is 
                        available upon request.
                  (E) Alternative form and content.--A State 
                exercising primary enforcement responsibility 
                may establish, by rule, after notice and public 
                comment, alternative requirements with respect 
                to the form and content of consumer confidence 
                reports under this paragraph.
                  (F) Revisions.--
                          (i) Understandability and 
                        frequency.--Not later than 24 months 
                        after the Drinking Water System 
                        Improvement Act of 2017, the 
                        Administrator, in consultation with the 
                        parties identified in subparagraph (A), 
                        shall issue revisions to the 
                        regulations issued under subparagraph 
                        (A)--
                                  (I) to increase--
                                          (aa) the readability, 
                                        clarity, and 
                                        understandability of 
                                        the information 
                                        presented in consumer 
                                        confidence reports; and
                                          (bb) the accuracy of 
                                        information presented, 
                                        and risk communication, 
                                        in consumer confidence 
                                        reports; and
                                  (II) with respect to 
                                community water systems that 
                                serve 10,000 or more persons, 
                                to require each such community 
                                water system to provide, by 
                                mail, electronic means, or 
                                other methods described in 
                                clause (ii), a consumer 
                                confidence report to each 
                                customer of the system at least 
                                biannually.
                          (ii) Electronic delivery.--Any 
                        revision of regulations pursuant to 
                        clause (i) shall allow delivery of 
                        consumer confidence reports by methods 
                        consistent with methods described in 
                        the memorandum ``Safe Drinking Water 
                        Act-Consumer Confidence Report Rule 
                        Delivery Options'' issued by the 
                        Environmental Protection Agency on 
                        January 3, 2013.
          (5) Exceedance of lead level at households.--
                  (A) Strategic plan.--Not later than 180 days 
                after the date of enactment of this paragraph, 
                the Administrator shall, in collaboration with 
                owners and operators of public water systems 
                and States, establish a strategic plan for how 
                the Administrator, a State with primary 
                enforcement responsibility, and owners and 
                operators of public water systems shall provide 
                targeted outreach, education, technical 
                assistance, and risk communication to 
                populations affected by the concentration of 
                lead in a public water system, including 
                dissemination of information described in 
                subparagraph (C).
                  (B) EPA initiation of notice.--
                          (i) Forwarding of data by employee of 
                        the agency.--If the Agency develops, or 
                        receives from a source other than a 
                        State or a public water system, data 
                        that meets the requirements of section 
                        1412(b)(3)(A)(ii) that indicates that 
                        the drinking water of a household 
                        served by a public water system 
                        contains a level of lead that exceeds 
                        the lead action level under section 
                        141.80(c) of title 40, Code of Federal 
                        Regulations (or a prescribed level of 
                        lead that the Administrator establishes 
                        for public education or notification in 
                        a successor regulation promulgated 
                        pursuant to section 1412) (referred to 
                        in this paragraph as an ``affected 
                        household''), the Administrator shall 
                        require an appropriate employee of the 
                        Agency to forward the data, and 
                        information on the sampling techniques 
                        used to obtain the data, to the owner 
                        or operator of the public water system 
                        and the State in which the affected 
                        household is located within a time 
                        period determined by the Administrator.
                          (ii) Dissemination of information by 
                        owner or operator.--The owner or 
                        operator of a public water system shall 
                        disseminate to affected households the 
                        information described in subparagraph 
                        (C) within a time period established by 
                        the Administrator, if the owner or 
                        operator--
                                  (I) receives data and 
                                information under clause (i); 
                                and
                                  (II) has not, since the date 
                                of the test that developed the 
                                data, notified the affected 
                                households--
                                          (aa) with respect to 
                                        the concentration of 
                                        lead in the drinking 
                                        water of the affected 
                                        households; and
                                          (bb) that the 
                                        concentration of lead 
                                        in the drinking water 
                                        of the affected 
                                        households exceeds the 
                                        lead action level under 
                                        section 141.80(c) of 
                                        title 40, Code of 
                                        Federal Regulations (or 
                                        a prescribed level of 
                                        lead that the 
                                        Administrator 
                                        establishes for public 
                                        education or 
                                        notification in a 
                                        successor regulation 
                                        promulgated pursuant to 
                                        section 1412).
                          (iii) Consultation.--
                                  (I) Deadline.--If the owner 
                                or operator of the public water 
                                system does not disseminate to 
                                the affected households the 
                                information described in 
                                subparagraph (C) as required 
                                under clause (ii) within the 
                                time period established by the 
                                Administrator, not later than 
                                24 hours after the 
                                Administrator becomes aware of 
                                the failure by the owner or 
                                operator of the public water 
                                system to disseminate the 
                                information, the Administrator 
                                shall consult, within a period 
                                not to exceed 24 hours, with 
                                the applicable Governor to 
                                develop a plan, in accordance 
                                with the strategic plan, to 
                                disseminate the information to 
                                the affected households not 
                                later than 24 hours after the 
                                end of the consultation period.
                                  (II) Delegation.--The 
                                Administrator may only delegate 
                                the duty to consult under 
                                subclause (I) to an employee of 
                                the Agency who, as of the date 
                                of the delegation, works in the 
                                Office of Water at the 
                                headquarters of the Agency.
                          (iv) Dissemination by 
                        administrator.--The Administrator 
                        shall, as soon as practicable, 
                        disseminate to affected households the 
                        information described in subparagraph 
                        (C) if--
                                  (I) the owner or operator of 
                                the public water system does 
                                not disseminate the information 
                                to the affected households 
                                within the time period 
                                determined by the 
                                Administrator, as required by 
                                clause (ii); and
                                  (II)(aa) the Administrator 
                                and the applicable Governor do 
                                not agree on a plan described 
                                in clause (iii)(I) during the 
                                consultation period under that 
                                clause; or
                                          (bb) the applicable 
                                        Governor does not 
                                        disseminate the 
                                        information within 24 
                                        hours after the end of 
                                        the consultation 
                                        period.
                  (C) Information required.--The information 
                described in this subparagraph includes--
                          (i) a clear explanation of the 
                        potential adverse effects on human 
                        health of drinking water that contains 
                        a concentration of lead that exceeds 
                        the lead action level under section 
                        141.80(c) of title 40, Code of Federal 
                        Regulations (or a prescribed level of 
                        lead that the Administrator establishes 
                        for public education or notification in 
                        a successor regulation promulgated 
                        pursuant to section 1412);
                          (ii) the steps that the owner or 
                        operator of the public water system is 
                        taking to mitigate the concentration of 
                        lead; and
                          (iii) the necessity of seeking 
                        alternative water supplies until the 
                        date on which the concentration of lead 
                        is mitigated.
          (6) Privacy.--Any notice to the public or an affected 
        household under this subsection shall protect the 
        privacy of individual customer information.
  (d) Whenever, on the basis of information available to him, 
the Administrator finds that within a reasonable time after 
national secondary drinking water regulations have been 
promulgated, one or more public water systems in a State do not 
comply with such secondary regulations, and that such 
noncompliance appears to result from a failure of such State to 
take reasonable action to assure that public water systems 
throughout such State meet such secondary regulations, he shall 
so notify the State.
  (e) Nothing in this title shall diminish any authority of a 
State or political subdivision to adopt or enforce any law or 
regulation respecting drinking water regulations or public 
water systems, but no such law or regulation shall relieve any 
person of any requirement otherwise applicable under this 
title.
  (f) If the Administrator makes a finding of noncompliance 
(described in subparagraph (A) or (B) of subsection (a)(1)) 
with respect to a public water system in a State which has 
primary enforcement responsibility, the Administrator may, for 
the purpose of assisting that State in carrying out such 
responsibility and upon the petition of such State or public 
water system or persons served by such system, hold, after 
appropriate notice, public hearings for the purpose of 
gathering information from technical or other experts, Federal, 
State, or other public officials, representatives of such 
public water system, persons served by such system, and other 
interested persons on--
          (1) the ways in which such system can within the 
        earliest feasible time be brought into compliance with 
        the regulation or requirement with respect to which 
        such finding was made, and
          (2) the means for the maximum feasible protection of 
        the public health during any period in which such 
        system is not in compliance with a national primary 
        drinking water regulation or requirement applicable to 
        a variance or exemption.
On the basis of such hearings the Administrator shall issue 
recommendations which shall be sent to such State and public 
water system and shall be made available to the public and 
communications media.
  (g)(1) In any case in which the Administrator is authorized 
to bring a civil action under this section or under section 
1445 with respect to any applicable requirement, the 
Administrator also may issue an order to require compliance 
with such applicable requirement.
  (2) An order issued under this subsection shall not take 
effect, in the case of a State having primary enforcement 
responsibility for public water systems in that State, until 
after the Administrator has provided the State with an 
opportunity to confer with the Administrator regarding the 
order. A copy of any order issued under this subsection shall 
be sent to the appropriate State agency of the State involved 
if the State has primary enforcement responsibility for public 
water systems in that State. Any order issued under this 
subsection shall state with reasonable specificity the nature 
of the violation. In any case in which an order under this 
subsection is issued to a corporation, a copy of such order 
shall be issued to appropriate corporate officers.
  (3)(A) Any person who violates, or fails or refuses to comply 
with, an order under this subsection shall be liable to the 
United States for a civil penalty of not more than $25,000 per 
day of violation.
  (B) In a case in which a civil penalty sought by the 
Administrator under this paragraph does not exceed $5,000, the 
penalty shall be assessed by the Administrator after notice and 
opportunity for a public hearing (unless the person against 
whom the penalty is assessed requests a hearing on the record 
in accordance with section 554 of title 5, United States Code). 
In a case in which a civil penalty sought by the Administrator 
under this paragraph exceeds $5,000, but does not exceed 
$25,000, the penalty shall be assessed by the Administrator 
after notice and opportunity for a hearing on the record in 
accordance with section 554 of title 5, United States Code.
  (C) Whenever any civil penalty sought by the Administrator 
under this subsection for a violation of an applicable 
requirement exceeds $25,000, the penalty shall be assessed by a 
civil action brought by the Administrator in the appropriate 
United States district court (as determined under the 
provisions of title 28 of the United States Code).
  (D) If any person fails to pay an assessment of a civil 
penalty after it has become a final and unappealable order, or 
after the appropriate court of appeals has entered final 
judgment in favor of the Administrator, the Attorney General 
shall recover the amount for which such person is liable in any 
appropriate district court of the United States. In any such 
action, the validity and appropriateness of the final order 
imposing the civil penalty shall not be subject to review.
  (h) Consolidation Incentive.--
          (1) In general.--An owner or operator of a public 
        water system may submit to the State in which the 
        system is located (if the State has primary enforcement 
        responsibility under section 1413) or to the 
        Administrator (if the State does not have primary 
        enforcement responsibility) a plan (including specific 
        measures and schedules) for--
                  (A) the physical consolidation of the system 
                with 1 or more other systems;
                  (B) the consolidation of significant 
                management and administrative functions of the 
                system with 1 or more other systems; [or]
                  (C) the transfer of ownership of the system 
                that may reasonably be expected to improve 
                drinking water quality[.]; or
                  (D) entering into a contractual agreement for 
                significant management or administrative 
                functions of the system to correct violations 
                identified in the plan.
          (2) Consequences of approval.--If the State or the 
        Administrator approves a plan pursuant to paragraph 
        (1), no enforcement action shall be taken pursuant to 
        this part with respect to a specific violation 
        identified in the approved plan prior to the date that 
        is the earlier of the date on which consolidation is 
        completed according to the plan or the date that is 2 
        years after the plan is approved.
          (3) Authority for mandatory assessment and mandatory 
        consolidation.--
                  (A) Mandatory assessment.--A State with 
                primary enforcement responsibility or the 
                Administrator (if the State does not have 
                primary enforcement responsibility) may require 
                the owner or operator of a public water system 
                to assess options for consolidation, or 
                transfer of ownership of the system, as 
                described in paragraph (1), if--
                          (i) the public water system--
                                  (I) has repeatedly violated 
                                one or more national primary 
                                drinking water regulations and 
                                such repeated violations are 
                                likely to adversely affect 
                                human health; and
                                  (II)(aa) is unable or 
                                unwilling to take feasible and 
                                affordable actions, as 
                                identified by the State with 
                                primary enforcement 
                                responsibility or the 
                                Administrator (if the State 
                                does not have primary 
                                enforcement responsibility), 
                                that will result in the public 
                                water system complying with the 
                                national primary drinking water 
                                regulations described in 
                                subclause (I), including 
                                accessing technical assistance 
                                and financial assistance 
                                through the State loan fund 
                                pursuant to section 1452; or
                                  (bb) has already undertaken 
                                actions described in item (aa) 
                                without achieving compliance;
                          (ii) such consolidation or transfer 
                        is feasible; and
                          (iii) such consolidation or transfer 
                        could result in greater compliance with 
                        national primary drinking water 
                        regulations.
                  (B) Mandatory consolidation.--After review of 
                an assessment under subparagraph (A), a State 
                with primary enforcement responsibility or the 
                Administrator (if the State does not have 
                primary enforcement responsibility) may require 
                the owner or operator of a public water system 
                that completed such assessment to submit a plan 
                for consolidation, or transfer of ownership of 
                the system, under paragraph (1), and complete 
                the actions required under such plan if--
                          (i) the owner or operator of the 
                        public water system--
                                  (I) has not taken steps to 
                                complete consolidation;
                                  (II) has not transferred 
                                ownership of the system; or
                                  (III) was unable to achieve 
                                compliance after taking the 
                                actions described in clause 
                                (i)(II)(aa) of subparagraph 
                                (A);
                          (ii) since completing such 
                        assessment, the public water system has 
                        violated one or more national primary 
                        drinking water regulations and such 
                        violations are likely to adversely 
                        affect human health; and
                          (iii) such consolidation or transfer 
                        is feasible.
          (4) Financial assistance.--Notwithstanding section 
        1452(a)(3), a public water system undertaking 
        consolidation or transfer of ownership or alternative 
        actions to achieve compliance pursuant to this 
        subsection may receive assistance under section 1452 to 
        carry out such consolidation, transfer, or alternative 
        actions.
          (5) Protection of nonresponsible system.--
                  (A) Identification of liabilities.--
                          (i) In general.--An owner or operator 
                        of a public water system submitting a 
                        plan pursuant to paragraph (3) shall 
                        identify as part of such plan--
                                  (I) any potential liability 
                                for damages arising from each 
                                specific violation identified 
                                in the plan of which the owner 
                                or operator is aware; and
                                  (II) any funds or other 
                                assets that are available to 
                                satisfy such liability, as of 
                                the date of submission of such 
                                plan, to the public water 
                                system that committed such 
                                violation.
                          (ii) Inclusion.--In carrying out 
                        clause (i), the owner or operator shall 
                        take reasonable steps to ensure that 
                        all potential liabilities for damages 
                        arising from each specific violation 
                        identified in the plan submitted 
                        pursuant to paragraph (3) are 
                        identified.
                  (B) Reservation of funds.--A public water 
                system that has completed the actions required 
                under a plan submitted and approved pursuant to 
                paragraph (3) shall not be liable under this 
                title for a violation of this title identified 
                in the plan, except to the extent to which 
                funds or other assets are identified pursuant 
                to subparagraph (A)(i)(II) as available to 
                satisfy such liability.
          (6) Regulations.--Not later than 2 years after the 
        date of enactment of the Drinking Water System 
        Improvement Act of 2017, the Administrator shall 
        promulgate regulations to implement paragraphs (3), 
        (4), and (5).
  (i) Definition of Applicable Requirement.--In this section, 
the term ``applicable requirement'' means--
          (1) a requirement of section 1412, 1414, 1415, 1416, 
        1417, 1433, 1441, or 1445;
          (2) a regulation promulgated pursuant to a section 
        referred to in paragraph (1);
          (3) a schedule or requirement imposed pursuant to a 
        section referred to in paragraph (1); and
          (4) a requirement of, or permit issued under, an 
        applicable State program for which the Administrator 
        has made a determination that the requirements of 
        section 1413 have been satisfied, or an applicable 
        State program approved pursuant to this part.
  (j) Improved Accuracy and Availability of Compliance 
Monitoring Data.--
          (1) Strategic plan.--Not later than 1 year after the 
        date of enactment of this subsection, the 
        Administrator, in coordination with States, public 
        water systems, and other interested stakeholders, shall 
        develop and provide to Congress a strategic plan for 
        improving the accuracy and availability of monitoring 
        data collected to demonstrate compliance with national 
        primary drinking water regulations and submitted--
                  (A) by public water systems to States; or
                  (B) by States to the Administrator.
          (2) Evaluation.--In developing the strategic plan 
        under paragraph (1), the Administrator shall evaluate 
        any challenges faced--
                  (A) in ensuring the accuracy and integrity of 
                submitted data described in paragraph (1);
                  (B) by States and public water systems in 
                implementing an electronic system for 
                submitting such data, including the technical 
                and economic feasibility of implementing such a 
                system; and
                  (C) by users of such electronic systems in 
                being able to access such data.
          (3) Findings and recommendations.--The Administrator 
        shall include in the strategic plan provided to 
        Congress under paragraph (1)--
                  (A) a summary of the findings of the 
                evaluation under paragraph (2); and
                  (B) recommendations on practicable, cost-
                effective methods and means that can be 
                employed to improve the accuracy and 
                availability of submitted data described in 
                paragraph (1).
          (4) Consultation.--In developing the strategic plan 
        under paragraph (1), the Administrator may, as 
        appropriate, consult with States or other Federal 
        agencies that have experience using practicable methods 
        and means to improve the accuracy and availability of 
        submitted data described in such paragraph.

           *       *       *       *       *       *       *


                          capacity development

  Sec. 1420. (a) State Authority for New Systems.--A State 
shall receive only 80 percent of the allotment that the State 
is otherwise entitled to receive under section 1452 (relating 
to State loan funds) unless the State has obtained the legal 
authority or other means to ensure that all new community water 
systems and new nontransient, noncommunity water systems 
commencing operation after October 1, 1999, demonstrate 
technical, managerial, and financial capacity with respect to 
each national primary drinking water regulation in effect, or 
likely to be in effect, on the date of commencement of 
operations.
  (b) Systems in Significant Noncompliance.--
          (1) List.--Beginning not later than 1 year after the 
        date of enactment of this section, each State shall 
        prepare, periodically update, and submit to the 
        Administrator a list of community water systems and 
        nontransient, noncommunity water systems that have a 
        history of significant noncompliance with this title 
        (as defined in guidelines issued prior to the date of 
        enactment of this section or any revisions of the 
        guidelines that have been made in consultation with the 
        States) and, to the extent practicable, the reasons for 
        noncompliance.
          (2) Report.--Not later than 5 years after the date of 
        enactment of this section and as part of the capacity 
        development strategy of the State, each State shall 
        report to the Administrator on the success of 
        enforcement mechanisms and initial capacity development 
        efforts in assisting the public water systems listed 
        under paragraph (1) to improve technical, managerial, 
        and financial capacity.
          (3) Withholding.--The list and report under this 
        subsection shall be considered part of the capacity 
        development strategy of the State required under 
        subsection (c) of this section for purposes of the 
        withholding requirements of section 1452(a)(1)(G)(i) 
        (relating to State loan funds).
  (c) Capacity Development Strategy.--
          (1) In general.--Beginning 4 years after the date of 
        enactment of this section, a State shall receive only--
                  (A) 90 percent in fiscal year 2001;
                  (B) 85 percent in fiscal year 2002; and
                  (C) 80 percent in each subsequent fiscal 
                year,
        of the allotment that the State is otherwise entitled 
        to receive under section 1452 (relating to State loan 
        funds), unless the State is developing and implementing 
        a strategy to assist public water systems in acquiring 
        and maintaining technical, managerial, and financial 
        capacity.
          (2) Content.--In preparing the capacity development 
        strategy, the State shall consider, solicit public 
        comment on, and include as appropriate--
                  (A) the methods or criteria that the State 
                will use to identify and prioritize the public 
                water systems most in need of improving 
                technical, managerial, and financial capacity;
                  (B) a description of the institutional, 
                regulatory, financial, tax, or legal factors at 
                the Federal, State, or local level that 
                encourage or impair capacity development;
                  (C) a description of how the State will use 
                the authorities and resources of this title or 
                other means to--
                          (i) assist public water systems in 
                        complying with national primary 
                        drinking water regulations;
                          (ii) encourage the development of 
                        partnerships between public water 
                        systems to enhance the technical, 
                        managerial, and financial capacity of 
                        the systems; and
                          (iii) assist public water systems in 
                        the training and certification of 
                        operators;
                  (D) a description of how the State will 
                establish a baseline and measure improvements 
                in capacity with respect to national primary 
                drinking water regulations and State drinking 
                water law[; and];
                  (E) an identification of the persons that 
                have an interest in and are involved in the 
                development and implementation of the capacity 
                development strategy (including all appropriate 
                agencies of Federal, State, and local 
                governments, private and nonprofit public water 
                systems, and public water system customers)[.]; 
                and
                  (F) a description of how the State will, as 
                appropriate--
                          (i) encourage development by public 
                        water systems of asset management plans 
                        that include best practices for asset 
                        management; and
                          (ii) assist, including through the 
                        provision of technical assistance, 
                        public water systems in training 
                        operators or other relevant and 
                        appropriate persons in implementing 
                        such asset management plans.
          (3) Report.--Not later than 2 years after the date on 
        which a State first adopts a capacity development 
        strategy under this subsection, and every 3 years 
        thereafter, the head of the State agency that has 
        primary responsibility to carry out this title in the 
        State shall submit to the Governor a report that shall 
        also be available to the public on the efficacy of the 
        strategy and progress made toward improving the 
        technical, managerial, and financial capacity of public 
        water systems in the State, including efforts of the 
        State to encourage development by public water systems 
        of asset management plans and to assist public water 
        systems in training relevant and appropriate persons in 
        implementing such asset management plans.
          (4) Review.--The decisions of the State under this 
        section regarding any particular public water system 
        are not subject to review by the Administrator and may 
        not serve as the basis for withholding funds under 
        section 1452.
  (d) Federal Assistance.--
          (1) In general.--The Administrator shall support the 
        States in developing capacity development strategies.
          (2) Informational assistance.--
                  (A) In general.--Not later than 180 days 
                after the date of enactment of this section, 
                the Administrator shall--
                          (i) conduct a review of State 
                        capacity development efforts in 
                        existence on the date of enactment of 
                        this section and publish information to 
                        assist States and public water systems 
                        in capacity development efforts; and
                          (ii) initiate a partnership with 
                        States, public water systems, and the 
                        public to develop information for 
                        States on recommended operator 
                        certification requirements.
                  (B) Publication of information.--The 
                Administrator shall publish the information 
                developed through the partnership under 
                subparagraph (A)(ii) not later than 18 months 
                after the date of enactment of this section.
          (3) Promulgation of drinking water regulations.--In 
        promulgating a national primary drinking water 
        regulation, the Administrator shall include an analysis 
        of the likely effect of compliance with the regulation 
        on the technical, financial, and managerial capacity of 
        public water systems.
          (4) Guidance for new systems.--Not later than 2 years 
        after the date of enactment of this section, the 
        Administrator shall publish guidance developed in 
        consultation with the States describing legal 
        authorities and other means to ensure that all new 
        community water systems and new nontransient, 
        noncommunity water systems demonstrate technical, 
        managerial, and financial capacity with respect to 
        national primary drinking water regulations.
          (5) Information on asset management practices.--Not 
        later than 5 years after the date of enactment of this 
        paragraph, and not less often than every 5 years 
        thereafter, the Administrator shall review and, if 
        appropriate, update educational materials, including 
        handbooks, training materials, and technical 
        information, made available by the Administrator to 
        owners, managers, and operators of public water 
        systems, local officials, technical assistance 
        providers (including nonprofit water associations), and 
        State personnel concerning best practices for asset 
        management strategies that may be used by public water 
        systems.
  (e) Variances and Exemptions.--Based on information obtained 
under subsection (c)(3), the Administrator shall, as 
appropriate, modify regulations concerning variances and 
exemptions for small public water systems to ensure flexibility 
in the use of the variances and exemptions. Nothing in this 
subsection shall be interpreted, construed, or applied to 
affect or alter the requirements of section 1415 or 1416.
  (f) Small Public Water Systems Technology Assistance 
Centers.--
          (1) Grant program.--The Administrator is authorized 
        to make grants to institutions of higher learning to 
        establish and operate small public water system 
        technology assistance centers in the United States.
          (2) Responsibilities of the centers.--The 
        responsibilities of the small public water system 
        technology assistance centers established under this 
        subsection shall include the conduct of training and 
        technical assistance relating to the information, 
        performance, and technical needs of small public water 
        systems or public water systems that serve Indian 
        Tribes.
          (3) Applications.--Any institution of higher learning 
        interested in receiving a grant under this subsection 
        shall submit to the Administrator an application in 
        such form and containing such information as the 
        Administrator may require by regulation.
          (4) Selection criteria.--The Administrator shall 
        select recipients of grants under this subsection on 
        the basis of the following criteria:
                  (A) The small public water system technology 
                assistance center shall be located in a State 
                that is representative of the needs of the 
                region in which the State is located for 
                addressing the drinking water needs of small 
                and rural communities or Indian Tribes.
                  (B) The grant recipient shall be located in a 
                region that has experienced problems, or may 
                reasonably be foreseen to experience problems, 
                with small and rural public water systems.
                  (C) The grant recipient shall have access to 
                expertise in small public water system 
                technology management.
                  (D) The grant recipient shall have the 
                capability to disseminate the results of small 
                public water system technology and training 
                programs.
                  (E) The projects that the grant recipient 
                proposes to carry out under the grant are 
                necessary and appropriate.
                  (F) The grant recipient has regional support 
                beyond the host institution.
          (5) Consortia of states.--At least 2 of the grants 
        under this subsection shall be made to consortia of 
        States with low population densities.
          (6) Authorization of appropriations.--There are 
        authorized to be appropriated to make grants under this 
        subsection $2,000,000 for each of the fiscal years 1997 
        through 1999, and $5,000,000 for each of the fiscal 
        years 2000 through 2003.
  (g) Environmental Finance Centers.--
          (1) In general.--The Administrator shall provide 
        initial funding for one or more university-based 
        environmental finance centers for activities that 
        provide technical assistance to State and local 
        officials in developing the capacity of public water 
        systems. Any such funds shall be used only for 
        activities that are directly related to this title.
          (2) National capacity development clearinghouse.--The 
        Administrator shall establish a national public water 
        system capacity development clearinghouse to receive 
        and disseminate information with respect to developing, 
        improving, and maintaining financial and managerial 
        capacity at public water systems. The Administrator 
        shall ensure that the clearinghouse does not duplicate 
        other federally supported clearinghouse activities.
          (3) Capacity development techniques.--The 
        Administrator may request an environmental finance 
        center funded under paragraph (1) to develop and test 
        managerial, financial, and institutional techniques for 
        capacity development. The techniques may include 
        capacity assessment methodologies, manual and computer 
        based public water system rate models and capital 
        planning models, public water system consolidation 
        procedures, and regionalization models.
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $1,500,000 for each of the fiscal years 1997 
        through 2003.
          (5) Limitation.--No portion of any funds made 
        available under this subsection may be used for 
        lobbying expenses.

           *       *       *       *       *       *       *


Part D--Emergency Powers

           *       *       *       *       *       *       *


[SEC. 1433. TERRORIST AND OTHER INTENTIONAL ACTS.

  [(a) Vulnerability Assessments.--(1) Each community water 
system serving a population of greater than 3,300 persons shall 
conduct an assessment of the vulnerability of its system to a 
terrorist attack or other intentional acts intended to 
substantially disrupt the ability of the system to provide a 
safe and reliable supply of drinking water. The vulnerability 
assessment shall include, but not be limited to, a review of 
pipes and constructed conveyances, physical barriers, water 
collection, pretreatment, treatment, storage and distribution 
facilities, electronic, computer or other automated systems 
which are utilized by the public water system, the use, 
storage, or handling of various chemicals, and the operation 
and maintenance of such system. The Administrator, not later 
than August 1, 2002, after consultation with appropriate 
departments and agencies of the Federal Government and with 
State and local governments, shall provide baseline information 
to community water systems required to conduct vulnerability 
assessments regarding which kinds of terrorist attacks or other 
intentional acts are the probable threats to--
          [(A) substantially disrupt the ability of the system 
        to provide a safe and reliable supply of drinking 
        water; or
          [(B) otherwise present significant public health 
        concerns.
  [(2) Each community water system referred to in paragraph (1) 
shall certify to the Administrator that the system has 
conducted an assessment complying with paragraph (1) and shall 
submit to the Administrator a written copy of the assessment. 
Such certification and submission shall be made prior to:
          [(A) March 31, 2003, in the case of systems serving a 
        population of 100,000 or more.
          [(B) December 31, 2003, in the case of systems 
        serving a population of 50,000 or more but less than 
        100,000.
          [(C) June 30, 2004, in the case of systems serving a 
        population greater than 3,300 but less than 50,000.
  [(3) Except for information contained in a certification 
under this subsection identifying the system submitting the 
certification and the date of the certification, all 
information provided to the Administrator under this subsection 
and all information derived therefrom shall be exempt from 
disclosure under section 552 of title 5 of the United States 
Code.
  [(4) No community water system shall be required under State 
or local law to provide an assessment described in this section 
to any State, regional, or local governmental entity solely by 
reason of the requirement set forth in paragraph (2) that the 
system submit such assessment to the Administrator.
  [(5) Not later than November 30, 2002, the Administrator, in 
consultation with appropriate Federal law enforcement and 
intelligence officials, shall develop such protocols as may be 
necessary to protect the copies of the assessments required to 
be submitted under this subsection (and the information 
contained therein) from unauthorized disclosure. Such protocols 
shall ensure that--
          [(A) each copy of such assessment, and all 
        information contained in or derived from the 
        assessment, is kept in a secure location;
          [(B) only individuals designated by the Administrator 
        may have access to the copies of the assessments; and
          [(C) no copy of an assessment, or part of an 
        assessment, or information contained in or derived from 
        an assessment shall be available to anyone other than 
        an individual designated by the Administrator.
At the earliest possible time prior to November 30, 2002, the 
Administrator shall complete the development of such protocols 
for the purpose of having them in place prior to receiving any 
vulnerability assessments from community water systems under 
this subsection.
  [(6)(A) Except as provided in subparagraph (B), any 
individual referred to in paragraph (5)(B) who acquires the 
assessment submitted under paragraph (2), or any reproduction 
of such assessment, or any information derived from such 
assessment, and who knowingly or recklessly reveals such 
assessment, reproduction, or information other than--
          [(i) to an individual designated by the Administrator 
        under paragraph (5),
          [(ii) for purposes of section 1445 or for actions 
        under section 1431, or
          [(iii) for use in any administrative or judicial 
        proceeding to impose a penalty for failure to comply 
        with this section,
shall upon conviction be imprisoned for not more than one year 
or fined in accordance with the provisions of chapter 227 of 
title 18, United States Code, applicable to class A 
misdemeanors, or both, and shall be removed from Federal office 
or employment.
  [(B) Notwithstanding subparagraph (A), an individual referred 
to in paragraph (5)(B) who is an officer or employee of the 
United States may discuss the contents of a vulnerability 
assessment submitted under this section with a State or local 
official.
  [(7) Nothing in this section authorizes any person to 
withhold any information from Congress or from any committee or 
subcommittee of Congress.
  [(b) Emergency Response Plan.--Each community water system 
serving a population greater than 3,300 shall prepare or 
revise, where necessary, an emergency response plan that 
incorporates the results of vulnerability assessments that have 
been completed. Each such community water system shall certify 
to the Administrator, as soon as reasonably possible after the 
enactment of this section, but not later than 6 months after 
the completion of the vulnerability assessment under subsection 
(a), that the system has completed such plan. The emergency 
response plan shall include, but not be limited to, plans, 
procedures, and identification of equipment that can be 
implemented or utilized in the event of a terrorist or other 
intentional attack on the public water system. The emergency 
response plan shall also include actions, procedures, and 
identification of equipment which can obviate or significantly 
lessen the impact of terrorist attacks or other intentional 
actions on the public health and the safety and supply of 
drinking water provided to communities and individuals. 
Community water systems shall, to the extent possible, 
coordinate with existing Local Emergency Planning Committees 
established under the Emergency Planning and Community Right-
to-Know Act (42 U.S.C. 11001 et seq.) when preparing or 
revising an emergency response plan under this subsection.
  [(c) Record Maintenance.--Each community water system shall 
maintain a copy of the emergency response plan completed 
pursuant to subsection (b) for 5 years after such plan has been 
certified to the Administrator under this section.
  [(d) Guidance to Small Public Water Systems.--The 
Administrator shall provide guidance to community water systems 
serving a population of less than 3,300 persons on how to 
conduct vulnerability assessments, prepare emergency response 
plans, and address threats from terrorist attacks or other 
intentional actions designed to disrupt the provision of safe 
drinking water or significantly affect the public health or 
significantly affect the safety or supply of drinking water 
provided to communities and individuals.
  [(e) Funding.--(1) There are authorized to be appropriated to 
carry out this section not more than $160,000,000 for the 
fiscal year 2002 and such sums as may be necessary for the 
fiscal years 2003 through 2005.
  [(2) The Administrator, in coordination with State and local 
governments, may use funds made available under paragraph (1) 
to provide financial assistance to community water systems for 
purposes of compliance with the requirements of subsections (a) 
and (b) and to community water systems for expenses and 
contracts designed to address basic security enhancements of 
critical importance and significant threats to public health 
and the supply of drinking water as determined by a 
vulnerability assessment conducted under subsection (a). Such 
basic security enhancements may include, but shall not be 
limited to the following:
          [(A) the purchase and installation of equipment for 
        detection of intruders;
          [(B) the purchase and installation of fencing, 
        gating, lighting, or security cameras;
          [(C) the tamper-proofing of manhole covers, fire 
        hydrants, and valve boxes;
          [(D) the rekeying of doors and locks;
          [(E) improvements to electronic, computer, or other 
        automated systems and remote security systems;
          [(F) participation in training programs, and the 
        purchase of training manuals and guidance materials, 
        relating to security against terrorist attacks;
          [(G) improvements in the use, storage, or handling of 
        various chemicals; and
          [(H) security screening of employees or contractor 
        support services.
Funding under this subsection for basic security enhancements 
shall not include expenditures for personnel costs, or 
monitoring, operation, or maintenance of facilities, equipment, 
or systems.
  [(3) The Administrator may use not more than $5,000,000 from 
the funds made available under paragraph (1) to make grants to 
community water systems to assist in responding to and 
alleviating any vulnerability to a terrorist attack or other 
intentional acts intended to substantially disrupt the ability 
of the system to provide a safe and reliable supply of drinking 
water (including sources of water for such systems) which the 
Administrator determines to present an immediate and urgent 
security need.
  [(4) The Administrator may use not more than $5,000,000 from 
the funds made available under paragraph (1) to make grants to 
community water systems serving a population of less than 3,300 
persons for activities and projects undertaken in accordance 
with the guidance provided to such systems under subsection 
(d).]

SEC. 1433. COMMUNITY WATER SYSTEM RISK AND RESILIENCE.

  (a) Risk and Resilience Assessments.--
          (1) In general.--Each community water system serving 
        a population of greater than 3,300 persons shall 
        conduct an assessment of the risks to, and resilience 
        of, its system. Such an assessment--
                  (A) shall include an assessment of--
                          (i) the risk to the system from 
                        malevolent acts and natural hazards;
                          (ii) the resilience of the pipes and 
                        constructed conveyances, physical 
                        barriers, source water, water 
                        collection and intake, pretreatment, 
                        treatment, storage and distribution 
                        facilities, electronic, computer, or 
                        other automated systems (including the 
                        security of such systems) which are 
                        utilized by the system;
                          (iii) the monitoring practices of the 
                        system;
                          (iv) the financial infrastructure of 
                        the system;
                          (v) the use, storage, or handling of 
                        various chemicals by the system; and
                          (vi) the operation and maintenance of 
                        the system; and
                  (B) may include an evaluation of capital and 
                operational needs for risk and resilience 
                management for the system.
          (2) Baseline information.--The Administrator, not 
        later than August 1, 2019, after consultation with 
        appropriate departments and agencies of the Federal 
        Government and with State and local governments, shall 
        provide baseline information on malevolent acts of 
        relevance to community water systems, which shall 
        include consideration of acts that may--
                  (A) substantially disrupt the ability of the 
                system to provide a safe and reliable supply of 
                drinking water; or
                  (B) otherwise present significant public 
                health or economic concerns to the community 
                served by the system.
          (3) Certification.--
                  (A) Certification.--Each community water 
                system described in paragraph (1) shall submit 
                to the Administrator a certification that the 
                system has conducted an assessment complying 
                with paragraph (1). Such certification shall be 
                made prior to--
                          (i) March 31, 2020, in the case of 
                        systems serving a population of 100,000 
                        or more;
                          (ii) December 31, 2020, in the case 
                        of systems serving a population of 
                        50,000 or more but less than 100,000; 
                        and
                          (iii) June 30, 2021, in the case of 
                        systems serving a population greater 
                        than 3,300 but less than 50,000.
                  (B) Review and revision.--Each community 
                water system described in paragraph (1) shall 
                review the assessment of such system conducted 
                under such paragraph at least once every 5 
                years after the applicable deadline for 
                submission of its certification under 
                subparagraph (A) to determine whether such 
                assessment should be revised. Upon completion 
                of such a review, the community water system 
                shall submit to the Administrator a 
                certification that the system has reviewed its 
                assessment and, if applicable, revised such 
                assessment.
          (4) Contents of certifications.--A certification 
        required under paragraph (3) shall contain only--
                  (A) information that identifies the community 
                water system submitting the certification;
                  (B) the date of the certification; and
                  (C) a statement that the community water 
                system has conducted, reviewed, or revised the 
                assessment, as applicable.
          (5) Provision to other entities.--No community water 
        system shall be required under State or local law to 
        provide an assessment described in this section (or 
        revision thereof) to any State, regional, or local 
        governmental entity solely by reason of the requirement 
        set forth in paragraph (3) that the system submit a 
        certification to the Administrator.
  (b) Emergency Response Plan.--Each community water system 
serving a population greater than 3,300 shall prepare or 
revise, where necessary, an emergency response plan that 
incorporates findings of the assessment conducted under 
subsection (a) for such system (and any revisions thereto). 
Each community water system shall certify to the Administrator, 
as soon as reasonably possible after the date of enactment of 
the Drinking Water System Improvement Act of 2017, but not 
later than 6 months after completion of the assessment under 
subsection (a), that the system has completed such plan. The 
emergency response plan shall include--
          (1) strategies and resources to improve the 
        resilience of the system, including the physical 
        security and cybersecurity of the system;
          (2) plans and procedures that can be implemented, and 
        identification of equipment that can be utilized, in 
        the event of a malevolent act or natural hazard that 
        threatens the ability of the community water system to 
        deliver safe drinking water;
          (3) actions, procedures, and equipment which can 
        obviate or significantly lessen the impact of a 
        malevolent act or natural hazard on the public health 
        and the safety and supply of drinking water provided to 
        communities and individuals, including the development 
        of alternative source water options, relocation of 
        water intakes, and construction of flood protection 
        barriers; and
          (4) strategies that can be used to aid in the 
        detection of malevolent acts or natural hazards that 
        threaten the security or resilience of the system.
  (c) Coordination.--Community water systems shall, to the 
extent possible, coordinate with existing local emergency 
planning committees established pursuant to the Emergency 
Planning and Community Right-To-Know Act of 1986 (42 U.S.C. 
11001 et seq.) when preparing or revising an assessment or 
emergency response plan under this section.
  (d) Record Maintenance.--Each community water system shall 
maintain a copy of the assessment conducted under subsection 
(a) and the emergency response plan prepared under subsection 
(b) (including any revised assessment or plan) for 5 years 
after the date on which a certification of such assessment or 
plan is submitted to the Administrator under this section.
  (e) Guidance to Small Public Water Systems.--The 
Administrator shall provide guidance and technical assistance 
to community water systems serving a population of less than 
3,300 persons on how to conduct resilience assessments, prepare 
emergency response plans, and address threats from malevolent 
acts and natural hazards that threaten to disrupt the provision 
of safe drinking water or significantly affect the public 
health or significantly affect the safety or supply of drinking 
water provided to communities and individuals.
  (f) Alternative Preparedness and Operational Resilience 
Programs.--
          (1) Satisfaction of requirement.--A community water 
        system that is required to comply with the requirements 
        of subsections (a) and (b) may satisfy such 
        requirements by--
                  (A) using and complying with technical 
                standards that the Administrator has recognized 
                under paragraph (2); and
                  (B) submitting to the Administrator a 
                certification that the community water system 
                is complying with subparagraph (A).
          (2) Authority to recognize.--Consistent with section 
        12(d) of the National Technology Transfer and 
        Advancement Act of 1995, the Administrator shall 
        recognize technical standards that are developed or 
        adopted by third-party organizations or voluntary 
        consensus standards bodies that carry out the 
        objectives or activities required by this section as a 
        means of satisfying the requirements under subsection 
        (a) or (b).
  (g) Technical Assistance and Grants.--
          (1) In general.--The Administrator shall establish 
        and implement a program, to be known as the Drinking 
        Water Infrastructure Risk and Resilience Program, under 
        which the Administrator may award grants in each of 
        fiscal years 2018 through 2022 to owners or operators 
        of community water systems for the purpose of 
        increasing the resilience of such community water 
        systems.
          (2) Use of funds.--As a condition on receipt of a 
        grant under this section, an owner or operator of a 
        community water system shall agree to use the grant 
        funds exclusively to assist in the planning, design, 
        construction, or implementation of a program or project 
        consistent with an emergency response plan prepared 
        pursuant to subsection (b), which may include--
                  (A) the purchase and installation of 
                equipment for detection of drinking water 
                contaminants or malevolent acts;
                  (B) the purchase and installation of fencing, 
                gating, lighting, or security cameras;
                  (C) the tamper-proofing of manhole covers, 
                fire hydrants, and valve boxes;
                  (D) the purchase and installation of improved 
                treatment technologies and equipment to improve 
                the resilience of the system;
                  (E) improvements to electronic, computer, 
                financial, or other automated systems and 
                remote systems;
                  (F) participation in training programs, and 
                the purchase of training manuals and guidance 
                materials, relating to security and resilience;
                  (G) improvements in the use, storage, or 
                handling of chemicals by the community water 
                system;
                  (H) security screening of employees or 
                contractor support services;
                  (I) equipment necessary to support emergency 
                power or water supply, including standby and 
                mobile sources; and
                  (J) the development of alternative source 
                water options, relocation of water intakes, and 
                construction of flood protection barriers.
          (3) Exclusions.--A grant under this subsection may 
        not be used for personnel costs, or for monitoring, 
        operation, or maintenance of facilities, equipment, or 
        systems.
          (4) Technical assistance.--For each fiscal year, the 
        Administrator may use not more than $5,000,000 from the 
        funds made available to carry out this subsection to 
        provide technical assistance to community water systems 
        to assist in responding to and alleviating a 
        vulnerability that would substantially disrupt the 
        ability of the system to provide a safe and reliable 
        supply of drinking water (including sources of water 
        for such systems) which the Administrator determines to 
        present an immediate and urgent need.
          (5) Grants for small systems.--For each fiscal year, 
        the Administrator may use not more than $10,000,000 
        from the funds made available to carry out this 
        subsection to make grants to community water systems 
        serving a population of less than 3,300 persons, or 
        nonprofit organizations receiving assistance under 
        section 1442(e), for activities and projects undertaken 
        in accordance with the guidance provided to such 
        systems under subsection (e) of this section.
          (6) Authorization of appropriations.--To carry out 
        this subsection, there are authorized to be 
        appropriated $35,000,000 for each of fiscal years 2018 
        through 2022.
  (h) Definitions.--In this section--
          (1) the term ``resilience'' means the ability of a 
        community water system or an asset of a community water 
        system to adapt to or withstand the effects of a 
        malevolent act or natural hazard without interruption 
        to the asset's or system's function, or if the function 
        is interrupted, to rapidly return to a normal operating 
        condition; and
          (2) the term ``natural hazard'' means a natural event 
        that threatens the functioning of a community water 
        system, including an earthquake, tornado, flood, 
        hurricane, wildfire, and hydrologic changes.

           *       *       *       *       *       *       *


Part E--General Provisions

           *       *       *       *       *       *       *


                       grants for state programs

  Sec. 1443. (a)(1) From allotments made pursuant to paragraph 
(4), the Administrator may make grants to States to carry out 
public water system supervision programs.
  (2) No grant may be made under paragraph (1) unless an 
application therefor has been submitted to the Administrator in 
such form and manner as he may require. The Administrator may 
not approve an application of a State for its first grant under 
paragraph (1) unless he determines that the State--
          (A) has established or will establish within one year 
        from the date of such grant a public water system 
        supervision program, and
          (B) will, within that one year, assume primary 
        enforcement responsibility for public water systems 
        within the State.
No grant may be made to a State under paragraph (1) for any 
period beginning more than one year after the date of the 
State's first grant unless the State has assumed and maintains 
primary enforcement responsibility for public water systems 
within the State. The prohibitions contained in the preceding 
two sentences shall not apply to such grants when made to 
Indian Tribes.
  (3) A grant under paragraph (1) shall be made to cover not 
more than 75 per centum of the grant recipient's costs (as 
determined under regulations of the Administrator) in carrying 
out, during the one-year period beginning on the date the grant 
is made, a public water system supervision program.
  (4) In each fiscal year the Administrator shall, in 
accordance with regulations, allot the sums appropriated for 
such year under paragraph (5) among the States on the basis of 
population, geographical area, number of public water systems, 
and other relevant factors. No State shall receive less than 1 
per centum of the annual appropriation for grants under 
paragraph (1): Provided, That the Administrator may, by 
regulation, reduce such percentage in accordance with the 
criteria specified in this paragraph: And provided further, 
That such percentage shall not apply to grants allotted to 
Guam, American Samoa, or the Virgin Islands.
  (5) The prohibition contained in the last sentence of 
paragraph (2) may be waived by the Administrator with respect 
to a grant to a State through fiscal year 1979 but such 
prohibition may only be waived if, in the judgment of the 
Administrator--
          (A) the State is making a diligent effort to assume 
        and maintain primary enforcement responsibility for 
        public water systems within the State;
          (B) the State has made significant progress toward 
        assuming and maintaining such primary enforcement 
        responsibility; and
          (C) there is reason to believe the State will assume 
        such primary enforcement responsibility by October 1, 
        1979.
The amount of any grant awarded for the fiscal years 1978 and 
1979 pursuant to a waiver under this paragraph may not exceed 
75 per centum of the allotment which the State would have 
received for such fiscal year if it had assumed and maintained 
such primary enforcement responsibility. The remaining 25 per 
centum of the amount allotted to such State for such fiscal 
year shall be retained by the Administrator, and the 
Administrator may award such amount to such State at such time 
as the State assumes such responsibility before the beginning 
of fiscal year 1980. At the beginning of each fiscal years 1979 
and 1980 the amounts retained by the Administrator for any 
preceding fiscal year and not awarded by the beginning of 
fiscal year 1979 or 1980 to the States to which such amounts 
were originally allotted may be removed from the original 
allotment and reallotted for fiscal year 1979 or 1980 (as the 
case may be) to States which have assumed primary enforcement 
responsibility by the beginning of such fiscal year.
  (6) The Administrator shall notify the State of the approval 
or disapproval of any application for a grant under this 
section--
          (A) within ninety days after receipt of such 
        application, or
          (B) not later than the first day of the fiscal year 
        for which the grant application is made, whichever is 
        later.
          (7) Authorization.--For the purpose of making grants 
        under paragraph (1), there are authorized to be 
        appropriated [$100,000,000 for each of fiscal years 
        1997 through 2003] $150,000,000 for each of fiscal 
        years 2018 through 2022.
          (8) Reservation of funds by the administrator.--If 
        the Administrator assumes the primary enforcement 
        responsibility of a State public water system 
        supervision program, the Administrator may reserve from 
        funds made available pursuant to this subsection an 
        amount equal to the amount that would otherwise have 
        been provided to the State pursuant to this subsection. 
        The Administrator shall use the funds reserved pursuant 
        to this paragraph to ensure the full and effective 
        administration of a public water system supervision 
        program in the State.
          (9) State loan funds.--
                  (A) Reservation of funds.--For any fiscal 
                year for which the amount made available to the 
                Administrator by appropriations to carry out 
                this subsection is less than the amount that 
                the Administrator determines is necessary to 
                supplement funds made available pursuant to 
                paragraph (8) to ensure the full and effective 
                administration of a public water system 
                supervision program in a State, the 
                Administrator may reserve from the funds made 
                available to the State under section 1452 
                (relating to State loan funds) an amount that 
                is equal to the amount of the shortfall. This 
                paragraph shall not apply to any State not 
                exercising primary enforcement responsibility 
                for public water systems as of the date of 
                enactment of the Safe Drinking Water Act 
                Amendments of 1996.
                  (B) Duty of administrator.--If the 
                Administrator reserves funds from the 
                allocation of a State under subparagraph (A), 
                the Administrator shall carry out in the State 
                each of the activities that would be required 
                of the State if the State had primary 
                enforcement authority under section 1413.
  (b)(1) From allotments made pursuant to paragraph (4), the 
Administrator may make grants to States to carry out 
underground water source protection programs.
  (2) No grant may be made under paragraph (1) unless an 
application therefor has been submitted to the Administrator in 
such form and manner as he may require. No grant may be made to 
any State under paragraph (1) unless the State has assumed 
primary enforcement responsibility within two years after the 
date the Administrator promulgates regulations for State 
underground injection control programs under section 1421. The 
prohibition contained in the preceding sentence shall not apply 
to such grants when made to Indian Tribes.
  (3) A grant under paragraph (1) shall be made to cover not 
more than 75 per centum of the grant recipient's costs (as 
determined under regulations of the Administrator) in carrying 
out, during the one-year period beginning on the date the grant 
is made, an underground water source protection program.
  (4) In each fiscal year the Administrator shall, in 
accordance with regulations, allot the sums appropriated for 
such year under paragraph (5) among the States on the basis of 
population, geographical area, and other relevant factors.
  (5) For purposes of making grants under paragraph (1) there 
are authorized to be appropriated $5,000,000 for the fiscal 
year ending June 30, 1976, $7,500,000 for the fiscal year 
ending June 30, 1977, $10,000,000 for each of the fiscal years 
1978 and 1979, $7,795,000 for the fiscal year ending September 
30, 1980, $18,000,000 for the fiscal year ending September 30, 
1981, and $21,000,000 for the fiscal year ending September 30, 
1982. For the purpose of making grants under paragraph (1) 
there are authorized to be appropriated not more than the 
following amounts:

    Fiscal year:
                                                                 Amount 
    1987................................................   $19,700,000  
    1988................................................    19,700,000  
    1989................................................    20,850,000  
    1990................................................    20,850,000  
    1991................................................    20,850,000  
    1992-2003...........................................     15,000,000.

  (c) For purposes of this section:
          (1) The term ``public water system supervision 
        program'' means a program for the adoption and 
        enforcement of drinking water regulations (with such 
        variances and exemptions from such regulations under 
        conditions and in a manner which is not less stringent 
        than the conditions under, and the manner in, which 
        variances and exemptions may be granted under sections 
        1415 and 1416) which are no less stringent than the 
        national primary drinking water regulations under 
        section 1412, and for keeping records and making 
        reports required by section 1413(a)(3).
          (2) The term ``underground water source protection 
        program'' means a program for the adoption and 
        enforcement of a program which meets the requirements 
        of regulations under section 1421 and for keeping 
        records and making reports required by section 
        1422(b)(1)(A)(ii). Such term includes, where 
        applicable, a program which meets the requirements of 
        section 1425.
  (d) New York City Watershed Protection Program.--
          (1) In general.--The Administrator is authorized to 
        provide financial assistance to the State of New York 
        for demonstration projects implemented as part of the 
        watershed program for the protection and enhancement of 
        the quality of source waters of the New York City water 
        supply system, including projects that demonstrate, 
        assess, or provide for comprehensive monitoring and 
        surveillance and projects necessary to comply with the 
        criteria for avoiding filtration contained in 40 CFR 
        141.71. Demonstration projects which shall be eligible 
        for financial assistance shall be certified to the 
        Administrator by the State of New York as satisfying 
        the purposes of this subsection. In certifying projects 
        to the Administrator, the State of New York shall give 
        priority to monitoring projects that have undergone 
        peer review.
          (2) Report.--Not later than 5 years after the date on 
        which the Administrator first provides assistance 
        pursuant to this paragraph, the Governor of the State 
        of New York shall submit a report to the Administrator 
        on the results of projects assisted.
          (3) Matching requirements.--Federal assistance 
        provided under this subsection shall not exceed 50 
        percent of the total cost of the protection program 
        being carried out for any particular watershed or 
        ground water recharge area.
          (4) Authorization.--There are authorized to be 
        appropriated to the Administrator to carry out this 
        subsection for each of fiscal years 2003 through 2010, 
        $15,000,000 for the purpose of providing assistance to 
        the State of New York to carry out paragraph (1).

           *       *       *       *       *       *       *


                        records and inspections

  Sec. 1445. (a)(1)(A) Every person who is subject to any 
requirement of this title or who is a grantee, shall establish 
and maintain such records, make such reports, conduct such 
monitoring, and provide such information as the Administrator 
may reasonably require by regulation to assist the 
Administrator in establishing regulations under this title, in 
determining whether such person has acted or is acting in 
compliance with this title, in administering any program of 
financial assistance under this title, in evaluating the health 
risks of unregulated contaminants, or in advising the public of 
such risks. In requiring a public water system to monitor under 
this subsection, the Administrator may take into consideration 
the system size and the contaminants likely to be found in the 
system's drinking water.
  (B) Every person who is subject to a national primary 
drinking water regulation under section 1412 shall provide such 
information as the Administrator may reasonably require, after 
consultation with the State in which such person is located if 
such State has primary enforcement responsibility for public 
water systems, on a case-by-case basis, to determine whether 
such person has acted or is acting in compliance with this 
title.
  (C) Every person who is subject to a national primary 
drinking water regulation under section 1412 shall provide such 
information as the Administrator may reasonably require to 
assist the Administrator in establishing regulations under 
section 1412 of this title, after consultation with States and 
suppliers of water. The Administrator may not require under 
this subparagraph the installation of treatment equipment or 
process changes, the testing of treatment technology, or the 
analysis or processing of monitoring samples, except where the 
Administrator provides the funding for such activities. Before 
exercising this authority, the Administrator shall first seek 
to obtain the information by voluntary submission.
  (D) The Administrator shall not later than 2 years after the 
date of enactment of this subparagraph, after consultation with 
public health experts, representatives of the general public, 
and officials of State and local governments, review the 
monitoring requirements for not fewer than 12 contaminants 
identified by the Administrator, and promulgate any necessary 
modifications.
          (2) Monitoring program for unregulated 
        contaminants.--
                  (A) Establishment.--The Administrator shall 
                promulgate regulations establishing the 
                criteria for a monitoring program for 
                unregulated contaminants. The regulations shall 
                require monitoring of drinking water supplied 
                by public water systems and shall vary the 
                frequency and schedule for monitoring 
                requirements for systems based on the number of 
                persons served by the system, the source of 
                supply, and the contaminants likely to be 
                found, ensuring that only a representative 
                sample of systems serving 10,000 persons or 
                fewer are required to monitor.
                  (B) Monitoring program for certain 
                unregulated contaminants.--
                          (i) Initial list.--Not later than 3 
                        years after the date of enactment of 
                        the Safe Drinking Water Act Amendments 
                        of 1996 and every 5 years thereafter, 
                        the Administrator shall issue a list 
                        pursuant to subparagraph (A) of not 
                        more than 30 unregulated contaminants 
                        to be monitored by public water systems 
                        and to be included in the national 
                        drinking water occurrence data base 
                        maintained pursuant to subsection (g).
                          (ii) Governors' petition.--The 
                        Administrator shall include among the 
                        list of contaminants for which 
                        monitoring is required under this 
                        paragraph each contaminant recommended 
                        in a petition signed by the Governor of 
                        each of 7 or more States, unless the 
                        Administrator determines that the 
                        action would prevent the listing of 
                        other contaminants of a higher public 
                        health concern.
                  (C) Monitoring plan for small and medium 
                systems.--
                          (i) In general.--Based on the 
                        regulations promulgated by the 
                        Administrator, each State may develop a 
                        representative monitoring plan to 
                        assess the occurrence of unregulated 
                        contaminants in public water systems 
                        that serve a population of 10,000 or 
                        fewer in that State. The plan shall 
                        require monitoring for systems 
                        representative of different sizes, 
                        types, and geographic locations in the 
                        State.
                          (ii) Grants for small system costs.--
                        From funds reserved under section 
                        1452(o) or appropriated under 
                        subparagraph (H), the Administrator 
                        shall pay the reasonable cost of such 
                        testing and laboratory analysis as are 
                        necessary to carry out monitoring under 
                        the plan.
                  (D) Monitoring results.--Each public water 
                system that conducts monitoring of unregulated 
                contaminants pursuant to this paragraph shall 
                provide the results of the monitoring to the 
                primary enforcement authority for the system.
                  (E) Notification.--Notification of the 
                availability of the results of monitoring 
                programs required under paragraph (2)(A) shall 
                be given to the persons served by the system.
                  (F) Waiver of monitoring requirement.--The 
                Administrator shall waive the requirement for 
                monitoring for a contaminant under this 
                paragraph in a State, if the State demonstrates 
                that the criteria for listing the contaminant 
                do not apply in that State.
                  (G) Analytical methods.--The State may use 
                screening methods approved by the Administrator 
                under subsection (i) in lieu of monitoring for 
                particular contaminants under this paragraph.
                  (H) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                this paragraph $10,000,000 for each of the 
                fiscal years [1997 through 2003] 2018 through 
                2022.
  (b)(1) Except as provided in paragraph (2), the 
Administrator, or representatives of the Administrator duly 
designated by him, upon presenting appropriate credentials and 
a written notice to any supplier of water or other person 
subject to (A) a national primary drinking water regulation 
prescribed under section 1412, (B) an applicable underground 
injection control program, or (C) any requirement to monitor an 
unregulated contaminant pursuant to subsection (a), or person 
in charge of any of the property of such supplier or other 
person referred to in clause (A), (B), or (C), is authorized to 
enter any establishment, facility, or other property of such 
supplier or other person in order to determine whether such 
supplier or other person has acted or is acting in compliance 
with this title, including for this purpose, inspection, at 
reasonable times, of records, files, papers, processes, 
controls, and facilities, or in order to test any feature of a 
public water system, including its raw water source. The 
Administrator or the Comptroller General (or any representative 
designated by either) shall have access for the purpose of 
audit and examination to any records, reports, or information 
of a grantee which are required to be maintained under 
subsection (a) or which are pertinent to any financial 
assistance under this title.
  (2) No entry may be made under the first sentence of 
paragraph (1) in an establishment, facility, or other property 
of a supplier of water or other person subject to a national 
primary drinking water regulation if the establishment, 
facility, or other property is located in a State which has 
primary enforcement responsibility for public water systems 
unless, before written notice of such entry is made, the 
Administrator (or his representative) notifies the State agency 
charged with responsibility for safe drinking water of the 
reasons for such entry. The Administrator shall, upon a showing 
by the State agency that such an entry will be detrimental to 
the administration of the State's program of primary 
enforcement responsibility, take such showing into 
consideration in determining whether to make such entry. No 
State agency which receives notice under this paragraph of an 
entry proposed to be made under paragraph (1) may use the 
information contained in the notice to inform the person whose 
property is proposed to be entered of the proposed entry; and 
if a State agency so uses such information, notice to the 
agency under this paragraph is not required until such time as 
the Administrator determines the agency has provided him 
satisfactory assurances that it will no longer so use 
information contained in a notice under this paragraph.
  (c) Whoever fails or refuses to comply with any requirement 
of subsection (a) or to allow the Administrator, the 
Comptroller General, or representatives of either, to enter and 
conduct any audit or inspection authorized by subsection (b) 
shall be subject to a civil penalty of not to exceed $25,000.
  (d)(1) Subject to paragraph (2), upon a showing satisfactory 
to the Administrator by any person that any information 
required under this section from such person, if made public, 
would divulge trade secrets or secret processes of such person, 
the Administrator shall consider such information confidential 
in accordance with the purposes of section 1905 of title 18 of 
the United States Code. If the applicant fails to make a 
showing satisfactory to the Administrator, the Administrator 
shall give such applicant thirty days' notice before releasing 
the information to which the application relates (unless the 
public health or safety requires an earlier release of such 
information).
  (2) Any information required under this section (A) may be 
disclosed to other officers, employees, or authorized 
representatives of the United States concerned with carrying 
out this title or to committees of the Congress, or when 
relevant in any proceeding under this title, and (B) shall be 
disclosed to the extent it deals with the level of contaminants 
in drinking water. For purposes of this subsection the term 
``information required under this section'' means any papers, 
books, documents, or information, or any particular part 
thereof, reported to or otherwise obtained by the Administrator 
under this section.
  (e) For purposes of this section, (1) the term ``grantee'' 
means any person who applies for or receives financial 
assistance, by grant, contract, or loan guarantee under this 
title, and (2) the term ``person'' includes a Federal agency.
  (f) Information Regarding Drinking Water Coolers.--The 
Administrator may utilize the authorities of this section for 
purposes of part F. Any person who manufactures, imports, 
sells, or distributes drinking water coolers in interstate 
commerce shall be treated as a supplier of water for purposes 
of applying the provisions of this section in the case of 
persons subject to part F.
  (g) Occurrence Data Base.--
          (1) In general.--Not later than 3 years after the 
        date of enactment of the Safe Drinking Water Act 
        Amendments of 1996, the Administrator shall assemble 
        and maintain a national drinking water contaminant 
        occurrence data base, using information on the 
        occurrence of both regulated and unregulated 
        contaminants in public water systems obtained under 
        subsection (a)(1)(A) or subsection (a)(2) and reliable 
        information from other public and private sources.
          (2) Public input.--In establishing the occurrence 
        data base, the Administrator shall solicit 
        recommendations from the Science Advisory Board, the 
        States, and other interested parties concerning the 
        development and maintenance of a national drinking 
        water contaminant occurrence data base, including such 
        issues as the structure and design of the data base, 
        data input parameters and requirements, and the use and 
        interpretation of data.
          (3) Use.--The data shall be used by the Administrator 
        in making determinations under section 1412(b)(1) with 
        respect to the occurrence of a contaminant in drinking 
        water at a level of public health concern.
          (4) Public recommendations.--The Administrator shall 
        periodically solicit recommendations from the 
        appropriate officials of the National Academy of 
        Sciences and the States, and any person may submit 
        recommendations to the Administrator, with respect to 
        contaminants that should be included in the national 
        drinking water contaminant occurrence data base, 
        including recommendations with respect to additional 
        unregulated contaminants that should be listed under 
        subsection (a)(2). Any recommendation submitted under 
        this clause shall be accompanied by reasonable 
        documentation that--
                  (A) the contaminant occurs or is likely to 
                occur in drinking water; and
                  (B) the contaminant poses a risk to public 
                health.
          (5) Public availability.--The information from the 
        data base shall be available to the public in readily 
        accessible form.
          (6) Regulated contaminants.--With respect to each 
        contaminant for which a national primary drinking water 
        regulation has been established, the data base shall 
        include information on the detection of the contaminant 
        at a quantifiable level in public water systems 
        (including detection of the contaminant at levels not 
        constituting a violation of the maximum contaminant 
        level for the contaminant).
          (7) Unregulated contaminants.--With respect to 
        contaminants for which a national primary drinking 
        water regulation has not been established, the data 
        base shall include--
                  (A) monitoring information collected by 
                public water systems that serve a population of 
                more than 10,000, as required by the 
                Administrator under subsection (a);
                  (B) monitoring information collected from a 
                representative sampling of public water systems 
                that serve a population of 10,000 or fewer; 
                [and]
                  (C) if applicable, monitoring information 
                collected by public water systems pursuant to 
                subsection (j) that is not duplicative of 
                monitoring information included in the data 
                base under subparagraph (B) or (D); and
                  [(C)] (D) other reliable and appropriate 
                monitoring information on the occurrence of the 
                contaminants in public water systems that is 
                available to the Administrator.
  (h) Availability of Information on Small System 
Technologies.--For purposes of sections 1412(b)(4)(E) and 
1415(e) (relating to small system variance program), the 
Administrator may request information on the characteristics of 
commercially available treatment systems and technologies, 
including the effectiveness and performance of the systems and 
technologies under various operating conditions. The 
Administrator may specify the form, content, and submission 
date of information to be submitted by manufacturers, States, 
and other interested persons for the purpose of considering the 
systems and technologies in the development of regulations or 
guidance under sections 1412(b)(4)(E) and 1415(e).
  (i) Screening Methods.--The Administrator shall review new 
analytical methods to screen for regulated contaminants and may 
approve such methods as are more accurate or cost-effective 
than established reference methods for use in compliance 
monitoring.
  (j) Monitoring by Certain Systems.--
          (1) In general.--Notwithstanding subsection 
        (a)(2)(A), the Administrator shall, subject to the 
        availability of appropriations for such purpose--
                  (A) require public water systems serving 
                between 3,300 and 10,000 persons to monitor for 
                unregulated contaminants in accordance with 
                this section; and
                  (B) ensure that only a representative sample 
                of public water systems serving less than 3,300 
                persons are required to monitor.
          (2) Effective date.--Paragraph (1) shall take effect 
        3 years after the date of enactment of this subsection.
          (3) Limitation.--Paragraph (1) shall take effect 
        unless the Administrator determines that there is not 
        sufficient laboratory capacity to accommodate the 
        analysis necessary to carry out monitoring required 
        under such paragraph.
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated $15,000,000 in each 
        fiscal year for which monitoring is required to be 
        carried out under this subsection for the Administrator 
        to pay the reasonable cost of such testing and 
        laboratory analysis as are necessary to carry out 
        monitoring required under this subsection.

           *       *       *       *       *       *       *


                       STATE REVOLVING LOAN FUNDS

  Sec. 1452. (a) General Authority.--
          (1) Grants to states to establish state loan funds.--
                  (A) In general.--The Administrator shall 
                offer to enter into agreements with eligible 
                States to make capitalization grants, including 
                letters of credit, to the States under this 
                subsection to further the health protection 
                objectives of this title, promote the efficient 
                use of fund resources, and for other purposes 
                as are specified in this title.
                  (B) Establishment of fund.--To be eligible to 
                receive a capitalization grant under this 
                section, a State shall establish a drinking 
                water treatment revolving loan fund (referred 
                to in this section as a ``State loan fund'') 
                and comply with the other requirements of this 
                section. Each grant to a State under this 
                section shall be deposited in the State loan 
                fund established by the State, except as 
                otherwise provided in this section and in other 
                provisions of this title. No funds authorized 
                by other provisions of this title to be used 
                for other purposes specified in this title 
                shall be deposited in any State loan fund.
                  (C) Extended period.--The grant to a State 
                shall be available to the State for obligation 
                during the fiscal year for which the funds are 
                authorized and during the following fiscal 
                year, except that grants made available from 
                funds provided prior to fiscal year 1997 shall 
                be available for obligation during each of the 
                fiscal years 1997 and 1998.
                  (D) Allotment formula.--Except as otherwise 
                provided in this section, funds made available 
                to carry out this section shall be allotted to 
                States that have entered into an agreement 
                pursuant to this section (other than the 
                District of Columbia) in accordance with--
                          (i) for each of fiscal years 1995 
                        through 1997, a formula that is the 
                        same as the formula used to distribute 
                        public water system supervision grant 
                        funds under section 1443 in fiscal year 
                        1995, except that the minimum 
                        proportionate share established in the 
                        formula shall be 1 percent of available 
                        funds and the formula shall be adjusted 
                        to include a minimum proportionate 
                        share for the State of Wyoming and the 
                        District of Columbia; and
                          (ii) for fiscal year 1998 and each 
                        subsequent fiscal year, a formula that 
                        allocates to each State the 
                        proportional share of the State needs 
                        identified in the most recent survey 
                        conducted pursuant to subsection (h), 
                        except that the minimum proportionate 
                        share provided to each State shall be 
                        the same as the minimum proportionate 
                        share provided under clause (i).
                  (E) Reallotment.--The grants not obligated by 
                the last day of the period for which the grants 
                are available shall be reallotted according to 
                the appropriate criteria set forth in 
                subparagraph (D), except that the Administrator 
                may reserve and allocate 10 percent of the 
                remaining amount for financial assistance to 
                Indian Tribes in addition to the amount 
                allotted under subsection (i) and none of the 
                funds reallotted by the Administrator shall be 
                reallotted to any State that has not obligated 
                all sums allotted to the State pursuant to this 
                section during the period in which the sums 
                were available for obligation.
                  (F) Nonprimacy states.--The State allotment 
                for a State not exercising primary enforcement 
                responsibility for public water systems shall 
                not be deposited in any such fund but shall be 
                allotted by the Administrator under this 
                subparagraph. Pursuant to section 1443(a)(9)(A) 
                such sums allotted under this subparagraph 
                shall be reserved as needed by the 
                Administrator to exercise primary enforcement 
                responsibility under this title in such State 
                and the remainder shall be reallotted to States 
                exercising primary enforcement responsibility 
                for public water systems for deposit in such 
                funds. Whenever the Administrator makes a final 
                determination pursuant to section 1413(b) that 
                the requirements of section 1413(a) are no 
                longer being met by a State, additional grants 
                for such State under this title shall be 
                immediately terminated by the Administrator. 
                This subparagraph shall not apply to any State 
                not exercising primary enforcement 
                responsibility for public water systems as of 
                the date of enactment of the Safe Drinking 
                Water Act Amendments of 1996.
                  (G) Other programs.--
                          (i) New system capacity.--Beginning 
                        in fiscal year 1999, the Administrator 
                        shall withhold 20 percent of each 
                        capitalization grant made pursuant to 
                        this section to a State unless the 
                        State has met the requirements of 
                        section 1420(a) (relating to capacity 
                        development) and shall withhold 10 
                        percent for fiscal year 2001, 15 
                        percent for fiscal year 2002, and 20 
                        percent for fiscal year 2003 if the 
                        State has not complied with the 
                        provisions of section 1420(c) (relating 
                        to capacity development strategies). 
                        Not more than a total of 20 percent of 
                        the capitalization grants made to a 
                        State in any fiscal year may be 
                        withheld under the preceding provisions 
                        of this clause. All funds withheld by 
                        the Administrator pursuant to this 
                        clause shall be reallotted by the 
                        Administrator on the basis of the same 
                        ratio as is applicable to funds 
                        allotted under subparagraph (D). None 
                        of the funds reallotted by the 
                        Administrator pursuant to this 
                        paragraph shall be allotted to a State 
                        unless the State has met the 
                        requirements of section 1420 (relating 
                        to capacity development).
                          (ii) Operator certification.--The 
                        Administrator shall withhold 20 percent 
                        of each capitalization grant made 
                        pursuant to this section unless the 
                        State has met the requirements of 1419 
                        (relating to operator certification). 
                        All funds withheld by the Administrator 
                        pursuant to this clause shall be 
                        reallotted by the Administrator on the 
                        basis of the same ratio as applicable 
                        to funds allotted under subparagraph 
                        (D). None of the funds reallotted by 
                        the Administrator pursuant to this 
                        paragraph shall be allotted to a State 
                        unless the State has met the 
                        requirements of section 1419 (relating 
                        to operator certification).
          (2) Use of funds.--
                  (A) In general.--Except as otherwise 
                authorized by this title, amounts deposited in 
                a State loan fund, including loan repayments 
                and interest earned on such amounts, shall be 
                used only for providing loans or loan 
                guarantees, or as a source of reserve and 
                security for leveraged loans, the proceeds of 
                which are deposited in a State loan fund 
                established under paragraph (1), or other 
                financial assistance authorized under this 
                section to community water systems and 
                nonprofit noncommunity water systems, other 
                than systems owned by Federal agencies.
                  (B) Limitation.--Financial assistance under 
                this section may be used by a public water 
                system only for expenditures [(including 
                expenditures for planning, design, and 
                associated preconstruction activities, 
                including activities relating to the siting of 
                the facility, but not] (including expenditures 
                for planning, design, siting, and associated 
                preconstruction activities, or for replacing or 
                rehabilitating aging treatment, storage, or 
                distribution facilities of public water 
                systems, but not including monitoring, 
                operation, and maintenance expenditures) of a 
                type or category which the Administrator has 
                determined, through guidance, will facilitate 
                compliance with national primary drinking water 
                regulations applicable to the system under 
                section 1412 or otherwise significantly further 
                the health protection objectives of this title.
                  (C) Sale of bonds.--Funds may also be used by 
                a public water system as a source of revenue 
                (restricted solely to interest earnings of the 
                applicable State loan fund) or security for 
                payment of the principal and interest on 
                revenue or general obligation bonds issued by 
                the State to provide matching funds under 
                subsection (e), if the proceeds of the sale of 
                the bonds will be deposited in the State loan 
                fund.
                  (D) Water treatment loans.--The funds under 
                this section may also be used to provide loans 
                to a system referred to in section 1401(4)(B) 
                for the purpose of providing the treatment 
                described in section 1401(4)(B)(i)(III).
                  (E) Acquisition of real property.--The funds 
                under this section shall not be used for the 
                acquisition of real property or interests 
                therein, unless the acquisition is integral to 
                a project authorized by this paragraph and the 
                purchase is from a willing seller.
                  (F) Loan assistance.--Of the amount credited 
                to any State loan fund established under this 
                section in any fiscal year, 15 percent shall be 
                available solely for providing loan assistance 
                to public water systems which regularly serve 
                fewer than 10,000 persons to the extent such 
                funds can be obligated for eligible projects of 
                public water systems.
          (3) Limitation.--
                  (A) In general.--Except as provided in 
                subparagraph (B), no assistance under this 
                section shall be provided to a public water 
                system that--
                          (i) does not have the technical, 
                        managerial, and financial capability to 
                        ensure compliance with the requirements 
                        of this title; or
                          (ii) is in significant noncompliance 
                        with any requirement of a national 
                        primary drinking water regulation or 
                        variance.
                  (B) Restructuring.--A public water system 
                described in subparagraph (A) may receive 
                assistance under this section if--
                          (i) the use of the assistance will 
                        ensure compliance; and
                          (ii) if subparagraph (A)(i) applies 
                        to the system, the owner or operator of 
                        the system agrees to undertake feasible 
                        and appropriate changes in operations 
                        (including ownership, management, 
                        accounting, rates, maintenance, 
                        consolidation, alternative water 
                        supply, or other procedures) if the 
                        State determines that the measures are 
                        necessary to ensure that the system has 
                        the technical, managerial, and 
                        financial capability to comply with the 
                        requirements of this title over the 
                        long term.
                  (C) Review.--Prior to providing assistance 
                under this section to a public water system 
                that is in significant noncompliance with any 
                requirement of a national primary drinking 
                water regulation or variance, the State shall 
                conduct a review to determine whether 
                subparagraph (A)(i) applies to the system.
          (4) American iron and steel products.--
                  (A) In general.--During [fiscal year 2017] 
                fiscal years 2018 through 2022, funds made 
                available from a State loan fund established 
                pursuant to this section may not be used for a 
                project for the construction, alteration, or 
                repair of a public water system unless all of 
                the iron and steel products used in the project 
                are produced in the United States.
                  (B) Definition of iron and steel products.--
                In this paragraph, the term ``iron and steel 
                products'' means the following products made 
                primarily of iron or steel:
                          (i) Lined or unlined pipes and 
                        fittings.
                          (ii) Manhole covers and other 
                        municipal castings.
                          (iii) Hydrants.
                          (iv) Tanks.
                          (v) Flanges.
                          (vi) Pipe clamps and restraints.
                          (vii) Valves.
                          (viii) Structural steel.
                          (ix) Reinforced precast concrete.
                          (x) Construction materials.
                  (C) Application.--Subparagraph (A) shall be 
                waived in any case or category of cases in 
                which the Administrator finds that--
                          (i) applying subparagraph (A) would 
                        be inconsistent with the public 
                        interest;
                          (ii) iron and steel products are not 
                        produced in the United States in 
                        sufficient and reasonably available 
                        quantities and of a satisfactory 
                        quality; or
                          (iii) inclusion of iron and steel 
                        products produced in the United States 
                        will increase the cost of the overall 
                        project by more than 25 percent.
                  (D) Waiver.--If the Administrator receives a 
                request for a waiver under this paragraph, the 
                Administrator shall make available to the 
                public, on an informal basis, a copy of the 
                request and information available to the 
                Administrator concerning the request, and shall 
                allow for informal public input on the request 
                for at least 15 days prior to making a finding 
                based on the request. The Administrator shall 
                make the request and accompanying information 
                available by electronic means, including on the 
                official public Internet site of the Agency.
                  (E) International agreements.--This paragraph 
                shall be applied in a manner consistent with 
                United States obligations under international 
                agreements.
                  (F) Management and oversight.--The 
                Administrator may retain up to 0.25 percent of 
                the funds appropriated for this section for 
                management and oversight of the requirements of 
                this paragraph.
                  (G) Effective date.--This paragraph does not 
                apply with respect to a project if a State 
                agency approves the engineering plans and 
                specifications for the project, in that 
                agency's capacity to approve such plans and 
                specifications prior to a project requesting 
                bids, prior to the date of enactment of this 
                paragraph.
          (5) Evaluation.--During fiscal years 2018 through 
        2022, a State may provide financial assistance under 
        this section to a public water system serving a 
        population of more than 10,000 for an expenditure 
        described in paragraph (2) only if the public water 
        system--
                  (A) considers the cost and effectiveness of 
                relevant processes, materials, techniques, and 
                technologies for carrying out the project or 
                activity that is the subject of the 
                expenditure; and
                  (B) certifies to the State, in a form and 
                manner determined by the State, that the public 
                water system has made such consideration.
          (6) Prevailing wages.--The requirements of section 
        1450(e) shall apply to any construction project carried 
        out in whole or in part with assistance made available 
        by a drinking water treatment revolving loan fund.
  (b) Intended Use Plans.--
          (1) In general.--After providing for public review 
        and comment, each State that has entered into a 
        capitalization agreement pursuant to this section shall 
        annually prepare a plan that identifies the intended 
        uses of the amounts available to the State loan fund of 
        the State.
          (2) Contents.--An intended use plan shall include--
                  (A) a list of the projects to be assisted in 
                the first fiscal year that begins after the 
                date of the plan, including a description of 
                the project, the expected terms of financial 
                assistance, and the size of the community 
                served;
                  (B) the criteria and methods established for 
                the distribution of funds; and
                  (C) a description of the financial status of 
                the State loan fund and the short-term and 
                long-term goals of the State loan fund.
          (3) Use of funds.--
                  (A) In general.--An intended use plan shall 
                provide, to the maximum extent practicable, 
                that priority for the use of funds be given to 
                projects that--
                          (i) address the most serious risk to 
                        human health;
                          (ii) are necessary to ensure 
                        compliance with the requirements of 
                        this title (including requirements for 
                        filtration); and
                          (iii) assist systems most in need on 
                        a per household basis according to 
                        State affordability criteria.
                  (B) List of projects.--Each State shall, 
                after notice and opportunity for public 
                comment, publish and periodically update a list 
                of projects in the State that are eligible for 
                assistance under this section, including the 
                priority assigned to each project and, to the 
                extent known, the expected funding schedule for 
                each project.
  (c) Fund Management.--Each State loan fund under this section 
shall be established, maintained, and credited with repayments 
and interest. The fund corpus shall be available in perpetuity 
for providing financial assistance under this section. To the 
extent amounts in the fund are not required for current 
obligation or expenditure, such amounts shall be invested in 
interest bearing obligations.
  (d) Assistance for Disadvantaged Communities.--
          (1) Loan subsidy.--Notwithstanding any other 
        provision of this section, in any case in which the 
        State makes a loan pursuant to subsection (a)(2) to a 
        disadvantaged community or to a community that the 
        State expects to become a disadvantaged community as 
        the result of a proposed project, the State may provide 
        additional subsidization (including forgiveness of 
        principal).
          [(2) Total amount of subsidies.--For each fiscal 
        year, the total amount of loan subsidies made by a 
        State pursuant to paragraph (1) may not exceed 30 
        percent of the amount of the capitalization grant 
        received by the State for the year.]
          (2) Total amount of subsidies.--For each fiscal year, 
        of the amount of the capitalization grant received by 
        the State for the year, the total amount of loan 
        subsidies made by a State pursuant to paragraph (1)--
                  (A) may not exceed 35 percent; and
                  (B) to the extent that there are sufficient 
                applications for loans to communities described 
                in paragraph (1), may not be less than 6 
                percent.
          (3) Definition of disadvantaged community.--In this 
        subsection, the term ``disadvantaged community'' means 
        the service area of a public water system that meets 
        affordability criteria established after public review 
        and comment by the State in which the public water 
        system is located. The Administrator may publish 
        information to assist States in establishing 
        affordability criteria.
  (e) State Contribution.--Each agreement under subsection (a) 
shall require that the State deposit in the State loan fund 
from State moneys an amount equal to at least 20 percent of the 
total amount of the grant to be made to the State on or before 
the date on which the grant payment is made to the State, 
except that a State shall not be required to deposit such 
amount into the fund prior to the date on which each grant 
payment is made for fiscal years 1994, 1995, 1996, and 1997 if 
the State deposits the State contribution amount into the State 
loan fund prior to September 30, 1999.
  (f) Types of Assistance.--Except as otherwise limited by 
State law, the amounts deposited into a State loan fund under 
this section may be used only--
          (1) to make loans, on the condition that--
                  (A) the interest rate for each loan is less 
                than or equal to the market interest rate, 
                including an interest free loan;
                  (B) principal and interest payments on each 
                loan will commence not later than [1 year after 
                completion of the project for which the loan 
                was made, and each loan will be fully amortized 
                not later than 20 years after the completion of 
                the project, except that in the case of a 
                disadvantaged community (as defined in 
                subsection (d)(3)), a State may provide an 
                extended term for a loan, if the extended 
                term--]
                          [(i) terminates not later than the 
                        date that is 30 years after the date of 
                        project completion; and]
                          [(ii) does not exceed the expected 
                        design life of the project;] 18 months 
                        after completion of the project for 
                        which the loan was made;
                  (C) each loan will be fully amortized not 
                later than 30 years after the completion of the 
                project, except that in the case of a 
                disadvantaged community (as defined in 
                subsection (d)(3)) a State may provide an 
                extended term for a loan, if the extended 
                term--
                          (i) terminates not later than the 
                        date that is 40 years after the date of 
                        project completion; and
                          (ii) does not exceed the expected 
                        design life of the project;
                  [(C)] (D) the recipient of each loan will 
                establish a dedicated source of revenue (or, in 
                the case of a privately owned system, 
                demonstrate that there is adequate security) 
                for the repayment of the loan; and
                  [(D)] (E) the State loan fund will be 
                credited with all payments of principal and 
                interest on each loan;
          (2) to buy or refinance the debt obligation of a 
        municipality or an intermunicipal or interstate agency 
        within the State at an interest rate that is less than 
        or equal to the market interest rate in any case in 
        which a debt obligation is incurred after July 1, 1993;
          (3) to guarantee, or purchase insurance for, a local 
        obligation (all of the proceeds of which finance a 
        project eligible for assistance under this section) if 
        the guarantee or purchase would improve credit market 
        access or reduce the interest rate applicable to the 
        obligation;
          (4) as a source of revenue or security for the 
        payment of principal and interest on revenue or general 
        obligation bonds issued by the State if the proceeds of 
        the sale of the bonds will be deposited into the State 
        loan fund; and
          (5) to earn interest on the amounts deposited into 
        the State loan fund.
  (g) Administration of State Loan Funds.--
          (1) Combined financial administration.--
        Notwithstanding subsection (c), a State may (as a 
        convenience and to avoid unnecessary administrative 
        costs) combine, in accordance with State law, the 
        financial administration of a State loan fund 
        established under this section with the financial 
        administration of any other revolving fund established 
        by the State if otherwise not prohibited by the law 
        under which the State loan fund was established and if 
        the Administrator determines that--
                  (A) the grants under this section, together 
                with loan repayments and interest, will be 
                separately accounted for and used solely for 
                the purposes specified in subsection (a); and
                  (B) the authority to establish assistance 
                priorities and carry out oversight and related 
                activities (other than financial 
                administration) with respect to assistance 
                remains with the State agency having primary 
                responsibility for administration of the State 
                program under section 1413, after consultation 
                with other appropriate State agencies (as 
                determined by the State): Provided, That in 
                nonprimacy States eligible to receive 
                assistance under this section, the Governor 
                shall determine which State agency will have 
                authority to establish priorities for financial 
                assistance from the State loan fund.
          (2) Cost of administering fund.--
                  (A) Authorization.--
                          (i) In general.--For each fiscal 
                        year, a State may use the amount 
                        described in clause (ii)--
                                  (I) to cover the reasonable 
                                costs of administration of the 
                                programs under this section, 
                                including the recovery of 
                                reasonable costs expended to 
                                establish a State loan fund 
                                that are incurred after the 
                                date of enactment of this 
                                section; and
                                  (II) to provide technical 
                                assistance to public water 
                                systems within the State.
                          (ii) Description of amount.--The 
                        amount referred to in clause (i) is an 
                        amount equal to the sum of--
                                  (I) the amount of any fees 
                                collected by the State for use 
                                in accordance with clause 
                                (i)(I), regardless of the 
                                source; and
                                  (II) the greatest of--
                                          (aa) $400,000;
                                          (bb) \1/5\ percent of 
                                        the current valuation 
                                        of the fund; and
                                          (cc) an amount equal 
                                        to 4 percent of all 
                                        grant awards to the 
                                        fund under this section 
                                        for the fiscal year.
                  (B) Additional use of funds.--For fiscal year 
                1995 and each fiscal year thereafter, each 
                State may use up to an additional 10 percent of 
                the funds allotted to the State under this 
                section--
                          (i) for public water system 
                        supervision programs under section 
                        1443(a);
                          (ii) to administer or provide 
                        technical assistance through source 
                        water protection programs;
                          (iii) to develop and implement a 
                        capacity development strategy under 
                        section 1420(c); and
                          (iv) for an operator certification 
                        program for purposes of meeting the 
                        requirements of section 1419.
                  (C) Technical assistance.--An additional 2 
                percent of the funds annually allotted to each 
                State under this section may be used by the 
                State to provide technical assistance to public 
                water systems serving 10,000 or fewer persons 
                in the State.
                  (D) Enforcement actions.--Funds used under 
                subparagraph (B)(ii) shall not be used for 
                enforcement actions.
          (3) Guidance and regulations.--The Administrator 
        shall publish guidance and promulgate regulations as 
        may be necessary to carry out the provisions of this 
        section, including--
                  (A) provisions to ensure that each State 
                commits and expends funds allotted to the State 
                under this section as efficiently as possible 
                in accordance with this title and applicable 
                State laws;
                  (B) guidance to prevent waste, fraud, and 
                abuse; and
                  (C) guidance to avoid the use of funds made 
                available under this section to finance the 
                expansion of any public water system in 
                anticipation of future population growth.
        The guidance and regulations shall also ensure that the 
        States, and public water systems receiving assistance 
        under this section, use accounting, audit, and fiscal 
        procedures that conform to generally accepted 
        accounting standards.
          (4) State report.--Each State administering a loan 
        fund and assistance program under this subsection shall 
        publish and submit to the Administrator a report every 
        2 years on its activities under this section, including 
        the findings of the most recent audit of the fund and 
        the entire State allotment. The Administrator shall 
        periodically audit all State loan funds established by, 
        and all other amounts allotted to, the States pursuant 
        to this section in accordance with procedures 
        established by the Comptroller General.
  (h) Needs Survey.--[The Administrator] (1) The Administrator  
shall conduct an assessment of water system capital improvement 
needs of all eligible public water systems in the United States 
and submit a report to the Congress containing the results of 
the assessment within 180 days after the date of enactment of 
the Safe Drinking Water Act Amendments of 1996 and every 4 
years thereafter.
  (2) Any assessment conducted under paragraph (1) after the 
date of enactment of the Drinking Water System Improvement Act 
of 2017 shall include an assessment of costs to replace all 
lead service lines (as defined in section 1459B(a)(4)) of all 
eligible public water systems in the United States, and such 
assessment shall describe separately the costs associated with 
replacing the portions of such lead service lines that are 
owned by an eligible public water system and the costs 
associated with replacing any remaining portions of such lead 
service lines, to the extent practicable.
  (i) Indian Tribes.--
          (1) In general.--1\1/2\ percent of the amounts 
        appropriated annually to carry out this section may be 
        used by the Administrator to make grants to Indian 
        Tribes, Alaska Native villages, and, for the purpose of 
        carrying out paragraph (5), intertribal consortia or 
        tribal organizations, that have not otherwise received 
        either grants from the Administrator under this section 
        or assistance from State loan funds established under 
        this section. Except as otherwise provided, the grants 
        may only be used for expenditures by tribes and 
        villages for public water system expenditures referred 
        to in subsection (a)(2).
          (2) Use of funds.--Funds reserved pursuant to 
        paragraph (1) shall be used to address the most 
        significant threats to public health associated with 
        public water systems that serve Indian Tribes, as 
        determined by the Administrator in consultation with 
        the Director of the Indian Health Service and Indian 
        Tribes.
          (3) Alaska native villages.--In the case of a grant 
        for a project under this subsection in an Alaska Native 
        village, the Administrator is also authorized to make 
        grants to the State of Alaska for the benefit of Native 
        villages. An amount not to exceed 4 percent of the 
        grant amount may be used by the State of Alaska for 
        project management.
          (4) Needs assessment.--The Administrator, in 
        consultation with the Director of the Indian Health 
        Service and Indian Tribes, shall, in accordance with a 
        schedule that is consistent with the needs surveys 
        conducted pursuant to subsection (h), prepare surveys 
        and assess the needs of drinking water treatment 
        facilities to serve Indian Tribes, including an 
        evaluation of the public water systems that pose the 
        most significant threats to public health.
          (5) Training and operator certification.--
                  (A) In general.--The Administrator may use 
                funds made available under this subsection and 
                section 1442(e)(7) to make grants to 
                intertribal consortia or tribal organizations 
                for the purpose of providing operations and 
                maintenance training and operator certification 
                services to Indian Tribes to enable public 
                water systems that serve Indian Tribes to 
                achieve and maintain compliance with applicable 
                national primary drinking water regulations.
                  (B) Eligible tribal organizations.--
                Intertribal consortia or tribal organizations 
                eligible for a grant under subparagraph (A) are 
                intertribal consortia or tribal organizations 
                that--
                          (i) as determined by the 
                        Administrator, are the most qualified 
                        and experienced to provide training and 
                        technical assistance to Indian Tribes; 
                        and
                          (ii) the Indian Tribes find to be the 
                        most beneficial and effective.
  (j) Other Areas.--Of the funds annually available under this 
section for grants to States, the Administrator shall make 
allotments in accordance with section 1443(a)(4) for the Virgin 
Islands, the Commonwealth of the Northern Mariana Islands, 
American Samoa, and Guam. The grants allotted as provided in 
this subsection may be provided by the Administrator to the 
governments of such areas, to public water systems in such 
areas, or to both, to be used for the public water system 
expenditures referred to in subsection (a)(2). The grants, and 
grants for the District of Columbia, shall not be deposited in 
State loan funds. The total allotment of grants under this 
section for all areas described in this subsection in any 
fiscal year shall not exceed 0.33 percent of the aggregate 
amount made available to carry out this section in that fiscal 
year.
  (k) Other Authorized Activities.--
          (1) In general.--Notwithstanding subsection (a)(2), a 
        State may take each of the following actions:
                  (A) Provide assistance, only in the form of a 
                loan, to one or more of the following:
                          (i) Any public water system described 
                        in subsection (a)(2) to acquire land or 
                        a conservation easement from a willing 
                        seller or grantor, if the purpose of 
                        the acquisition is to protect the 
                        source water of the system from 
                        contamination and to ensure compliance 
                        with national primary drinking water 
                        regulations.
                          (ii) Any community water system to 
                        implement local, voluntary source water 
                        protection measures to protect source 
                        water in areas delineated pursuant to 
                        section 1453, in order to facilitate 
                        compliance with national primary 
                        drinking water regulations applicable 
                        to the system under section 1412 or 
                        otherwise significantly further the 
                        health protection objectives of this 
                        title. Funds authorized under this 
                        clause may be used to fund only 
                        voluntary, incentive-based mechanisms.
                          (iii) Any community water system to 
                        provide funding in accordance with 
                        section 1454(a)(1)(B)(i).
                  (B) Provide assistance, including technical 
                and financial assistance, to any public water 
                system as part of a capacity development 
                strategy developed and implemented in 
                accordance with section 1420(c).
                  (C) Make expenditures from the capitalization 
                grant of the State [for fiscal years 1996 and 
                1997 to delineate and assess source water 
                protection areas in accordance with section 
                1453] to delineate, assess, and update 
                assessments for source water protection areas 
                in accordance with section 1453, except that 
                funds set aside for such expenditure shall be 
                obligated within 4 fiscal years.
                  (D) Make expenditures from the fund for the 
                establishment and implementation of wellhead 
                protection programs under section 1428.
          (2) Limitation.--For each fiscal year, the total 
        amount of assistance provided and expenditures made by 
        a State under this subsection may not exceed 15 percent 
        of the amount of the capitalization grant received by 
        the State for that year and may not exceed 10 percent 
        of that amount for any one of the following activities:
                  (A) To acquire land or conservation easements 
                pursuant to paragraph (1)(A)(i).
                  (B) To provide funding to implement 
                voluntary, incentive-based source water quality 
                protection measures pursuant to clauses (ii) 
                and (iii) of paragraph (1)(A).
                  (C) To provide assistance through a capacity 
                development strategy pursuant to paragraph 
                (1)(B).
                  (D) To make expenditures to delineate or 
                assess source water protection areas pursuant 
                to paragraph (1)(C).
                  (E) To make expenditures to establish and 
                implement wellhead protection programs pursuant 
                to paragraph (1)(D).
          (3) Statutory construction.--Nothing in this section 
        creates or conveys any new authority to a State, 
        political subdivision of a State, or community water 
        system for any new regulatory measure, or limits any 
        authority of a State, political subdivision of a State 
        or community water system.
  (l) Savings.--The failure or inability of any public water 
system to receive funds under this section or any other loan or 
grant program, or any delay in obtaining the funds, shall not 
alter the obligation of the system to comply in a timely manner 
with all applicable drinking water standards and requirements 
of this title.
  (m) Authorization of Appropriations.--[There are authorized 
to be appropriated to carry out the purposes of this section 
$599,000,000 for the fiscal year 1994 and $1,000,000,000 for 
each of the fiscal years 1995 through 2003.]
          (1) There are authorized to be appropriated to carry 
        out the purposes of this section--
                  (A) $1,200,000,000 for fiscal year 2018; 
                  (B) $1,400,000,000 for fiscal year 2019; 
                  (C) $1,600,000,000 for fiscal year 2020; 
                  (D) $1,800,000,000 for fiscal year 2021; and 
                  (E) $2,000,000,000 for fiscal year 2022.  [To 
                the extent amounts authorized to be]
          (2) To the extent amounts authorized to be  
        appropriated under this subsection in any fiscal year 
        are not appropriated in that fiscal year, such amounts 
        are authorized to be appropriated in a subsequent 
        fiscal year [(prior to the fiscal year 2004)]. Such 
        sums shall remain available until expended.
  (n) Health Effects Studies.--From funds appropriated pursuant 
to this section for each fiscal year, the Administrator shall 
reserve $10,000,000 for health effects studies on drinking 
water contaminants authorized by the Safe Drinking Water Act 
Amendments of 1996. In allocating funds made available under 
this subsection, the Administrator shall give priority to 
studies concerning the health effects of cryptosporidium (as 
authorized by section 1458(c)), disinfection byproducts (as 
authorized by section 1458(c)), and arsenic (as authorized by 
section 1412(b)(12)(A)), and the implementation of a plan for 
studies of subpopulations at greater risk of adverse effects 
(as authorized by section 1458(a)).
  (o) Monitoring for Unregulated Contaminants.--From funds 
appropriated pursuant to this section for each fiscal year 
beginning with fiscal year 1998, the Administrator shall 
reserve $2,000,000 to pay the costs of monitoring for 
unregulated contaminants under section 1445(a)(2)(C).
  (p) Demonstration Project for State of Virginia.--
Notwithstanding the other provisions of this section limiting 
the use of funds deposited in a State loan fund from any State 
allotment, the State of Virginia may, as a single demonstration 
and with the approval of the Virginia General Assembly and the 
Administrator, conduct a program to demonstrate alternative 
approaches to intergovernmental coordination to assist in the 
financing of new drinking water facilities in the following 
rural communities in southwestern Virginia where none exists on 
the date of enactment of the Safe Drinking Water Act Amendments 
of 1996 and where such communities are experiencing economic 
hardship: Lee County, Wise County, Scott County, Dickenson 
County, Russell County, Buchanan County, Tazewell County, and 
the city of Norton, Virginia. The funds allotted to that State 
and deposited in the State loan fund may be loaned to a 
regional endowment fund for the purpose set forth in this 
subsection under a plan to be approved by the Administrator. 
The plan may include an advisory group that includes 
representatives of such counties.
  (q) Small System Technical Assistance.--The Administrator may 
reserve up to 2 percent of the total funds made available to 
carry out this section for each of fiscal years 2016 through 
2021 to carry out the provisions of section 1442(e) (relating 
to technical assistance for small systems), except that the 
total amount of funds made available for such purpose in any 
fiscal year through appropriations (as authorized by section 
1442(e)) and reservations made pursuant to this subsection 
shall not exceed the amount authorized by section 1442(e).
  (r) Evaluation.--The Administrator shall conduct an 
evaluation of the effectiveness of the State loan funds through 
fiscal year 2001. The evaluation shall be submitted to the 
Congress at the same time as the President submits to the 
Congress, pursuant to section 1108 of title 31, United States 
Code, an appropriations request for fiscal year 2003 relating 
to the budget of the Environmental Protection Agency.
  (s) Best Practices for State Loan Fund Administration.--The 
Administrator shall--
          (1) collect information from States on administration 
        of State loan funds established pursuant to subsection 
        (a)(1), including--
                  (A) efforts to streamline the process for 
                applying for assistance through such State loan 
                funds;
                  (B) programs in place to assist with the 
                completion of applications for assistance 
                through such State loan funds;
                  (C) incentives provided to public water 
                systems that partner with small public water 
                systems to assist with the application process 
                for assistance through such State loan funds;
                  (D) practices to ensure that amounts in such 
                State loan funds are used to provide loans, 
                loan guarantees, or other authorized assistance 
                in a timely fashion;
                  (E) practices that support effective 
                management of such State loan funds;
                  (F) practices and tools to enhance financial 
                management of such State loan funds; and
                  (G) key financial measures for use in 
                evaluating State loan fund operations, 
                including--
                          (i) measures of lending capacity, 
                        such as current assets and current 
                        liabilities or undisbursed loan 
                        assistance liability; and
                          (ii) measures of growth or 
                        sustainability, such as return on net 
                        interest;
          (2) not later than 3 years after the date of 
        enactment of the Drinking Water System Improvement Act 
        of 2017, disseminate to the States best practices for 
        administration of such State loan funds, based on the 
        information collected pursuant to this subsection; and
          (3) periodically update such best practices, as 
        appropriate.

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                     SOURCE WATER PETITION PROGRAM

  Sec. 1454. (a) Petition Program.--
          (1) In general.--
                  (A) Establishment.--A State may establish a 
                program under which an owner or operator of a 
                community water system in the State, or a 
                municipal or local government or political 
                subdivision of a State, may submit a source 
                water quality protection partnership petition 
                to the State requesting that the State assist 
                in the local development of a voluntary, 
                incentive-based partnership, among the owner, 
                operator, or government and other persons 
                likely to be affected by the recommendations of 
                the partnership, to--
                          (i) reduce the presence in drinking 
                        water of contaminants that may be 
                        addressed by a petition by considering 
                        the origins of the contaminants, 
                        including to the maximum extent 
                        practicable the specific activities 
                        that affect the drinking water supply 
                        of a community;
                          (ii) obtain financial or technical 
                        assistance necessary to facilitate 
                        establishment of a partnership, or to 
                        develop and implement recommendations 
                        of a partnership for the protection of 
                        source water to assist in the provision 
                        of drinking water that complies with 
                        national primary drinking water 
                        regulations with respect to 
                        contaminants addressed by a petition; 
                        and
                          (iii) develop recommendations 
                        regarding voluntary and incentive-based 
                        strategies for the long-term protection 
                        of the source water of community water 
                        systems.
                  (B) Funding.--Each State may--
                          (i) use funds set aside pursuant to 
                        section 1452(k)(1)(A)(iii) by the State 
                        to carry out a program described in 
                        subparagraph (A), including assistance 
                        to voluntary local partnerships for the 
                        development and implementation of 
                        partnership recommendations for the 
                        protection of source water such as 
                        source water quality assessment, 
                        contingency plans, and demonstration 
                        projects for partners within a source 
                        water area delineated under section 
                        1453(a); and
                          (ii) provide assistance in response 
                        to a petition submitted under this 
                        subsection using funds referred to in 
                        subsection (b)(2)(B).
          (2) Objectives.--The objectives of a petition 
        submitted under this subsection shall be to--
                  (A) facilitate the local development of 
                voluntary, incentive-based partnerships among 
                owners and operators of community water 
                systems, governments, and other persons in 
                source water areas; and
                  (B) obtain assistance from the State in 
                identifying resources which are available to 
                implement the recommendations of the 
                partnerships to address the origins of drinking 
                water contaminants that may be addressed by a 
                petition (including to the maximum extent 
                practicable the specific activities 
                contributing to the presence of the 
                contaminants) that affect the drinking water 
                supply of a community.
          (3) Contaminants addressed by a petition.--A petition 
        submitted to a State under this subsection may address 
        only those contaminants--
                  (A) that are pathogenic organisms for which a 
                national primary drinking water regulation has 
                been established or is required under section 
                1412; or
                  (B) for which a national primary drinking 
                water regulation has been promulgated or 
                proposed and that are detected by adequate 
                monitoring methods in the source water at the 
                intake structure or in any collection, 
                treatment, storage, or distribution facilities 
                by the community water systems at levels--
                          (i) above the maximum contaminant 
                        level; or
                          (ii) that are not reliably and 
                        consistently below the maximum 
                        contaminant level.
          (4) Contents.--A petition submitted under this 
        subsection shall, at a minimum--
                  (A) include a delineation of the source water 
                area in the State that is the subject of the 
                petition;
                  (B) identify, to the maximum extent 
                practicable, the origins of the drinking water 
                contaminants that may be addressed by a 
                petition (including to the maximum extent 
                practicable the specific activities 
                contributing to the presence of the 
                contaminants) in the source water area 
                delineated under section 1453;
                  (C) identify any deficiencies in information 
                that will impair the development of 
                recommendations by the voluntary local 
                partnership to address drinking water 
                contaminants that may be addressed by a 
                petition;
                  (D) specify the efforts made to establish the 
                voluntary local partnership and obtain the 
                participation of--
                          (i) the municipal or local government 
                        or other political subdivision of the 
                        State with jurisdiction over the source 
                        water area delineated under section 
                        1453; and
                          (ii) each person in the source water 
                        area delineated under section 1453--
                                  (I) who is likely to be 
                                affected by recommendations of 
                                the voluntary local 
                                partnership; and
                                  (II) whose participation is 
                                essential to the success of the 
                                partnership;
                  (E) outline how the voluntary local 
                partnership has or will, during development and 
                implementation of recommendations of the 
                voluntary local partnership, identify, 
                recognize and take into account any voluntary 
                or other activities already being undertaken by 
                persons in the source water area delineated 
                under section 1453 under Federal or State law 
                to reduce the likelihood that contaminants will 
                occur in drinking water at levels of public 
                health concern; and
                  (F) specify the technical, financial, or 
                other assistance that the voluntary local 
                partnership requests of the State to develop 
                the partnership or to implement recommendations 
                of the partnership.
  (b) Approval or Disapproval of Petitions.--
          (1) In general.--After providing notice and an 
        opportunity for public comment on a petition submitted 
        under subsection (a), the State shall approve or 
        disapprove the petition, in whole or in part, not later 
        than 120 days after the date of submission of the 
        petition.
          (2) Approval.--The State may approve a petition if 
        the petition meets the requirements established under 
        subsection (a). The notice of approval shall, at a 
        minimum, include for informational purposes--
                  (A) an identification of technical, 
                financial, or other assistance that the State 
                will provide to assist in addressing the 
                drinking water contaminants that may be 
                addressed by a petition based on--
                          (i) the relative priority of the 
                        public health concern identified in the 
                        petition with respect to the other 
                        water quality needs identified by the 
                        State;
                          (ii) any necessary coordination that 
                        the State will perform of the program 
                        established under this section with 
                        programs implemented or planned by 
                        other States under this section; and
                          (iii) funds available (including 
                        funds available from a State revolving 
                        loan fund established under title VI of 
                        the Federal Water Pollution Control Act 
                        (33 U.S.C. 1381 et seq.)) or section 
                        1452;
                  (B) a description of technical or financial 
                assistance pursuant to Federal and State 
                programs that is available to assist in 
                implementing recommendations of the partnership 
                in the petition, including--
                          (i) any program established under the 
                        Federal Water Pollution Control Act (33 
                        U.S.C. 1251 et seq.);
                          (ii) the program established under 
                        section 6217 of the Coastal Zone Act 
                        Reauthorization Amendments of 1990 (16 
                        U.S.C. 1455b);
                          (iii) the agricultural water quality 
                        protection program established under 
                        chapter 2 of subtitle D of title XII of 
                        the Food Security Act of 1985 (16 
                        U.S.C. 3838 et seq.);
                          (iv) the sole source aquifer 
                        protection program established under 
                        section 1427;
                          (v) the community wellhead protection 
                        program established under section 1428;
                          (vi) any pesticide or ground water 
                        management plan;
                          (vii) any voluntary agricultural 
                        resource management plan or voluntary 
                        whole farm or whole ranch management 
                        plan developed and implemented under a 
                        process established by the Secretary of 
                        Agriculture; and
                          (viii) any abandoned well closure 
                        program; and
                  (C) a description of activities that will be 
                undertaken to coordinate Federal and State 
                programs to respond to the petition.
          (3) Disapproval.--If the State disapproves a petition 
        submitted under subsection (a), the State shall notify 
        the entity submitting the petition in writing of the 
        reasons for disapproval. A petition may be resubmitted 
        at any time if--
                  (A) new information becomes available;
                  (B) conditions affecting the source water 
                that is the subject of the petition change; or
                  (C) modifications are made in the type of 
                assistance being requested.
  (c) Grants to Support State Programs.--
          (1) In general.--The Administrator may make a grant 
        to each State that establishes a program under this 
        section that is approved under paragraph (2). The 
        amount of each grant shall not exceed 50 percent of the 
        cost of administering the program for the year in which 
        the grant is available.
          (2) Approval.--In order to receive grant assistance 
        under this subsection, a State shall submit to the 
        Administrator for approval a plan for a source water 
        quality protection partnership program that is 
        consistent with the guidance published under subsection 
        (d). The Administrator shall approve the plan if the 
        plan is consistent with the guidance published under 
        subsection (d).
  (d) Guidance.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this section, the Administrator, in 
        consultation with the States, shall publish guidance to 
        assist--
                  (A) States in the development of a source 
                water quality protection partnership program; 
                and
                  (B) municipal or local governments or 
                political subdivisions of a State and community 
                water systems in the development of source 
                water quality protection partnerships and in 
                the assessment of source water quality.
          (2) Contents of the guidance.--The guidance shall, at 
        a minimum--
                  (A) recommend procedures for the approval or 
                disapproval by a State of a petition submitted 
                under subsection (a);
                  (B) recommend procedures for the submission 
                of petitions developed under subsection (a);
                  (C) recommend criteria for the assessment of 
                source water areas within a State; and
                  (D) describe technical or financial 
                assistance pursuant to Federal and State 
                programs that is available to address the 
                contamination of sources of drinking water and 
                to develop and respond to petitions submitted 
                under subsection (a).
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $5,000,000 for each 
of the fiscal years [1997 through 2003] 2018 through 2022. Each 
State with a plan for a program approved under subsection (b) 
shall receive an equitable portion of the funds available for 
any fiscal year.
  (f) Statutory Construction.--Nothing in this section--
          (1)(A) creates or conveys new authority to a State, 
        political subdivision of a State, or community water 
        system for any new regulatory measure; or
          (B) limits any authority of a State, political 
        subdivision, or community water system; or
          (2) precludes a community water system, municipal or 
        local government, or political subdivision of a 
        government from locally developing and carrying out a 
        voluntary, incentive-based, source water quality 
        protection partnership to address the origins of 
        drinking water contaminants of public health concern.

           *       *       *       *       *       *       *


SEC. 1459C. REVIEW OF TECHNOLOGIES.

  (a) Review.--The Administrator, after consultation with 
appropriate departments and agencies of the Federal Government 
and with State and local governments, shall review (or enter 
into contracts or cooperative agreements to provide for a 
review of) existing and potential methods, means, equipment, 
and technologies (including review of cost, availability, and 
efficacy of such methods, means, equipment, and technologies) 
that--
          (1) ensure the physical integrity of community water 
        systems;
          (2) prevent, detect, and respond to any contaminant 
        for which a national primary drinking water regulation 
        has been promulgated in community water systems and 
        source water for community water systems;
          (3) allow for use of alternate drinking water 
        supplies from nontraditional sources; and
          (4) facilitate source water assessment and 
        protection.
  (b) Inclusions.--The review under subsection (a) shall 
include review of methods, means, equipment, and technologies--
          (1) that are used for corrosion protection, metering, 
        leak detection, or protection against water loss;
          (2) that are intelligent systems, including hardware, 
        software, or other technology, used to assist in 
        protection and detection described in paragraph (1);
          (3) that are point-of-use devices or point-of-entry 
        devices;
          (4) that are physical or electronic systems that 
        monitor, or assist in monitoring, contaminants in 
        drinking water in real-time; and
          (5) that allow for the use of nontraditional sources 
        for drinking water, including physical separation and 
        chemical and biological transformation technologies.
  (c) Availability.--The Administrator shall make the results 
of the review under subsection (a) available to the public.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated to the Administrator to carry out this section 
$10,000,000 for fiscal year 2018, which shall remain available 
until expended.

  Part F--Additional Requirements To Regulate the Safety of Drinking 
                                 Water

                              definitions

  Sec. 1461. As used in this part--
          (1) Drinking water cooler.--The term ``drinking water 
        cooler'' means any mechanical device affixed to 
        drinking water supply plumbing which actively cools 
        water for human consumption.
          (2) Lead free.--The term ``lead free'' means, with 
        respect to a drinking water cooler, that each part or 
        component of the cooler which may come in contact with 
        drinking water contains not more than 8 percent lead, 
        except that no drinking water cooler which contains any 
        solder, flux, or storage tank interior surface which 
        may come in contact with drinking water shall be 
        considered lead free if the solder, flux, or storage 
        tank interior surface contains more than 0.2 percent 
        lead. The Administrator may establish more stringent 
        requirements for treating any part or component of a 
        drinking water cooler as lead free for purposes of this 
        part whenever he determines that any such part may 
        constitute an important source of lead in drinking 
        water.
          (3) Local educational agency.--The term ``local 
        educational agency'' means--
                  (A) any local educational agency as defined 
                in section 8101 of the Elementary and Secondary 
                Education Act of 1965,
                  (B) the owner of any private, nonprofit 
                elementary or secondary school building, and
                  (C) the governing authority of any school 
                operating under the defense dependent's 
                education system provided for under the Defense 
                Dependent's Education Act of 1978 (20 U.S.C. 
                921 and following).
          (4) Repair.--The term ``repair'' means, with respect 
        to a drinking water cooler, to take such corrective 
        action as is necessary to ensure that water cooler is 
        lead free.
          (5) Replacement.--The term ``replacement'', when used 
        with respect to a drinking water cooler or drinking 
        water fountain, means the permanent removal of the 
        water cooler or drinking water fountain and the 
        installation of a lead free water cooler or drinking 
        water fountain.
          (6) School.--The term ``school'' means any elementary 
        school or secondary school as defined in section 8101 
        of the Elementary and Secondary Education Act of 1965 
        and any kindergarten or day care facility.
          (7) Lead-lined tank.--The term ``lead-lined tank'' 
        means a water reservoir container in a drinking water 
        cooler which container is constructed of lead or which 
        has an interior surface which is not leadfree.

           *       *       *       *       *       *       *


SEC. 1465. DRINKING WATER FOUNTAIN REPLACEMENT FOR SCHOOLS.

  (a) Establishment.--Not later than 1 year after the date of 
enactment of this section, the Administrator shall establish a 
grant program to provide assistance to local educational 
agencies for the replacement of drinking water fountains 
manufactured prior to 1988.
  (b) Use of Funds.--Funds awarded under the grant program--
          (1) shall be used to pay the costs of replacement of 
        drinking water fountains in schools; and
          (2) may be used to pay the costs of monitoring and 
        reporting of lead levels in the drinking water of 
        schools of a local educational agency receiving such 
        funds, as determined appropriate by the Administrator.
  (c) Priority.--In awarding funds under the grant program, the 
Administrator shall give priority to local educational agencies 
based on economic need.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section not more than 
$5,000,000 for each of fiscal years 2018 through 2022.
                              ----------                              


       EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW ACT OF 1986

TITLE III--EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW

           *       *       *       *       *       *       *


            Subtitle A--Emergency Planning and Notification

SEC. 304. EMERGENCY NOTIFICATION.

  (a) Types of Releases.--
          (1) 302 302(a) substance which requires cercla 
        notice.--If a release of an extremely hazardous 
        substance referred to in section 302(a) occurs from a 
        facility at which a hazardous chemical is produced, 
        used, or stored, and such release requires a 
        notification under section 103(a) of the Comprehensive 
        Environmental Response, compensation, and Liability Act 
        of 1980 (hereafter in this section referred to as 
        ``CERCLA'') (42 U.S.C. 9601 et seq.), the owner or 
        operator of the facility shall immediately provide 
        notice as described in subsection (b).
          (2) Other 302(a) substance.--If a release of an 
        extremely hazardous substance referred to in section 
        302(a) occurs from a facility at which a hazardous 
        chemical is produced, used, or stored, and such release 
        is not subject to the notification requirements under 
        section 103(a) of CERCLA, the owner or operator of the 
        facility shall immediately provide notice as described 
        in subsection (b), but only if the release--
                  (A) is not a federally permitted release as 
                defined in section 101(10) of CERCLA,
                  (B) is in an amount in excess of a quantity 
                which the Administrator has determined (by 
                regulation) requires notice, and (C) occurs in 
                a manner which would require notification under 
                section 103(a) of CERCLA.
        Unless and until superseded by regulations establishing 
        a quantity for an extremely hazardous substance 
        described in this paragraph, a quantity of 1 pound 
        shall be deemed that quantity the release of which 
        requires notice as described in subsection (b).
          (3) Non-302 Non-302(a) substance which requires 
        cercla notice.--If a release of a substance which is 
        not on the list referred to in section 302(a) occurs at 
        a facility at which a hazardous chemical is produced, 
        used, or stored, and such release requires notification 
        under section 103(a) of CERCLA, the owner or operator 
        shall provide notice as follows:
                  (A) If the substance is one for which a 
                reportable quantity has been established under 
                section 102(a) of CERCLA, the owner or operator 
                shall provide notice as described in subsection 
                (b).
                  (B) If the substance is one for which a 
                reportable quantity has not been established 
                under section 102(a) of CERCLA--
                          (i) Until April 30, 1988, the owner 
                        or operator shall provide, for releases 
                        of one pound or more of the substance, 
                        the same notice to the community 
                        emergency coordinator for the local 
                        emergency planning committee, at the 
                        same time and in the same form, as 
                        notice is provided to the National 
                        Response Center under section 103(a) of 
                        CERCLA.
                          (ii) On and after April 30,1988, the 
                        owner or operator shall provide, for 
                        releases of one pound or more of the 
                        substance, the notice as described in 
                        subsection (b).
          (4) Exempted leases.--This section does not apply to 
        any release which results in exposure to persons solely 
        within the site or sites on which a facility is 
        located.
  (b) Notification.--
          (1) Recipient of notice.--Notice required under 
        subsection (a) shall be given immediately after the 
        release by the owner or operator of a facility (by such 
        means as telephone, radio, or in person) to the 
        community emergency coordinator for the local emergency 
        planning committees, if established pursuant to section 
        301(c), for any area likely to be affected by the 
        release and to the [State emergency planning 
        commission] State emergency response commission of any 
        State likely to be affected by the release. With 
        respect to transportation of a substance subject to the 
        requirements of this section, or storage incident to 
        such transportation, the notice requirements of this 
        section with respect to a release shall be satisfied by 
        dialing 911 or, in the absence of a 911 emergency 
        telephone number, calling the operator.
          (2) Contents.--Notice required under subsection (a) 
        shall include each of the following (to the extent 
        known at the time of the notice and so long as no delay 
        in responding to the emergency results):
                  (A) The chemical name or identity of any 
                substance involved in the release.
                  (B) An indication of whether the substance is 
                on the list referred to in section 302(a).
                  (C) An estimate of the quantity of any such 
                substance that was released into the 
                environment.
                  (D) The time and duration of the release.
                  (E) The medium or media into which the 
                release occurred.
                  (F) Any known or anticipated acute or chronic 
                health risks associated with the emergency and, 
                where appropriate, advice regarding medical 
                attention necessary for exposed individuals.
                  (G) Proper precautions to take as a result of 
                the release, including evacuation (unless such 
                information is readily available to the 
                community emergency coordinator pursuant to the 
                emergency plan).
                  (H) The name and telephone number of the 
                person or persons to be contacted for further 
                information.
  (c) Followup Emergency Notice.--AS soon as practicable after 
a release which requires notice under subsection (a), such 
owner or operator shall provide a written followup emergency 
notice (or notices, as more information becomes available) 
setting forth and updating the information required under 
subsection (b), and including additional information with 
respect to--
          (1) actions taken to respond to and contain the 
        release,
          (2) any known or anticipated acute or chronic health 
        risks associated with the release, and
          (3) where appropriate, advice regarding medical 
        attention necessary for exposed individuals.
  (d) Transportation Exemption Not Applicable.--The exemption 
provided in section 327 (relating to transportation) does not 
apply to this section.
  (e) Addressing Source Water Used for Drinking Water.--
          (1) Applicable state agency notification.--A State 
        emergency response commission shall--
                  (A) promptly notify the applicable State 
                agency of any release that requires notice 
                under subsection (a);
                  (B) provide to the applicable State agency 
                the information identified in subsection 
                (b)(2); and
                  (C) provide to the applicable State agency a 
                written followup emergency notice in accordance 
                with subsection (c).
          (2) Community water system notification.--
                  (A) In general.--An applicable State agency 
                receiving notice of a release under paragraph 
                (1) shall--
                          (i) promptly forward such notice to 
                        any community water system the source 
                        waters of which are affected by the 
                        release;
                          (ii) forward to the community water 
                        system the information provided under 
                        paragraph (1)(B); and
                          (iii) forward to the community water 
                        system the written followup emergency 
                        notice provided under paragraph (1)(C).
                  (B) Direct notification.--In the case of a 
                State that does not have an applicable State 
                agency, the State emergency response commission 
                shall provide the notices and information 
                described in paragraph (1) directly to any 
                community water system the source waters of 
                which are affected by a release that requires 
                notice under subsection (a).
          (3) Definitions.--In this subsection:
                  (A) Community water system.--The term 
                ``community water system'' has the meaning 
                given such term in section 1401(15) of the Safe 
                Drinking Water Act.
                  (B) Applicable state agency.--The term 
                ``applicable State agency'' means the State 
                agency that has primary responsibility to 
                enforce the requirements of the Safe Drinking 
                Water Act in the State.

           *       *       *       *       *       *       *


Subtitle B--Reporting Requirements

           *       *       *       *       *       *       *


SEC. 312. EMERGENCY AND HAZARDOUS CHEMICAL INVENTORY FORMS.

  (a) Basic Requirement.--(1) The owner or operator of any 
facility which is required to prepare or have available a 
material safety data sheet for a hazardous chemical under the 
Occupational Safety and Health Act of 1970 and regulations 
promulgated under that Act shall prepare and submit an 
emergency and hazardous chemical inventory form (hereafter in 
this title referred to as an ``inventory form'') to each of the 
following:
          (A) The appropriate local emergency planning 
        committee.
          (B) The State emergency response commission.
          (C) The fire department with jurisdiction over the 
        facility.
  (2) The inventory form containing tier I information (as 
described in subsection (d)(l)) shall be submitted on or before 
March 1, 1988, and annually thereafter on March 1, and shall 
contain data with respect to the preceding calendar year. The 
preceding sentence does not apply if an owner or operator 
provides, by the same deadline and with respect to the same 
calendar year, tier 11 information (as described in subsection 
(d)(2)) to the recipients described in paragraph (1).
  (3) An owner or operator may meet the requirements of this 
section with respect to a hazardous chemical which is a mixture 
by doing one of the following:
          (A) Providing information on the inventory form on 
        each element or compound in the mixture which is a 
        hazardous chemical. If more than one mixture has the 
        same element or compound, only one listing on the 
        inventory form for the element or compound at the 
        facility is necessary.
          (B) Providing information on the inventory form on 
        the mixture itself.
  (b) Thresholds.--The Administrator may establish threshold 
quantities for hazardous chemicals covered by this section 
below which no facility shall be subject to the provisions of 
this section. The threshold quantities may, in the 
Administrator's discretion, be based on classes of chemicals or 
categories of facilities.
  (c) Hazardous Chemicals Covered.--A hazardous chemical 
subject to the requirements of this section is any hazardous 
chemical for which a material safety data sheet or a listing is 
required under section 311.
  (d) Contents of Form.--
          (1) Tier i information.--
                  (A) Aggregate Information by Category.--An 
                inventory form shall provide the information 
                described in subparagraph (B) in aggregate 
                terms for hazardous chemicals in categories of 
                health and physical hazards as set forth under 
                the Occupational Safety and Health Act of 1970 
                and regulations promulgated under that Act.
                  (B) Required information.--The information 
                referred to in subparagraph (A) is the 
                following:
                          (i) An estimate (in ranges) of the 
                        maximum amount of hazardous chemicals 
                        in each category present at the 
                        facility at any time during the 
                        preceding calendar year.
                          (ii) An estimate (in ranges) of the 
                        average daily amount of hazardous 
                        chemicals in each category present at 
                        the facility during the preceding 
                        calendar year.
                          (iii) The general location of 
                        hazardous chemicals in each category.
                  (C) Modifications.--For purposes of reporting 
                information under this paragraph, the 
                Administrator may--
                          (i) modify the categories of health 
                        and physical hazards as set forth under 
                        the Occupational Safety and Health Act 
                        of 1970 and regulations promulgated 
                        under that Act by requiring information 
                        to be reported in terms of groups of 
                        hazardous chemicals which present 
                        similar hazards in an emergency, or
                          (ii) require reporting on individual 
                        hazardous chemicals of special concern 
                        to emergency response personnel.
          (2) Tier ii information.--An inventory form shall 
        provide the following additional information for each 
        hazardous chemical present at the facility, but only 
        upon request and in accordance with subsection (e):
                  (A) The chemical name or the common name of 
                the chemical as provided on the material safety 
                data sheet.
                  (B) An estimate (in ranges) of the maximum 
                amount of the hazardous chemical present at the 
                facility at any time during the preceding 
                calendar year.
                  (C) An estimate (in ranges) of the average 
                daily amount of the hazardous chemical present 
                at the facility during the preceding calendar 
                year.
                  (D) A brief description of the manner of 
                storage of the hazardous chemical.
                  (E) The location at the facility of the 
                hazardous chemical.
                  (F) An indication of whether the owner elects 
                to withhold location information of a specific 
                hazardous chemical from disclosure to the 
                public under section 324.
  (e) Availability of Tier II Information.--
          (1) Availability to state commissions, local 
        committees, and fire departments.--Upon request by a 
        [State emergency planning commission] State emergency 
        response commission, a local emergency planning 
        committee, or a fire department with jurisdiction over 
        the facility, the owner or operator of a facility shall 
        provide tier II information, as described in subsection 
        (d), to the person making the request. Any such request 
        shall be with respect to a specific facility.
          (2) Availability to other state and local 
        officials.--A State or local official acting in his or 
        her official capacity may have access to tier II 
        information by submitting a request to the State 
        emergency response commission or the local emergency 
        planning committee. Upon receipt of a request for tier 
        II information, the State commission or local committee 
        shall, pursuant to paragraph (1), request the facility 
        owner or operator for the tier II information and make 
        available such information to the official.
          (3) Availability to public.--
                  (A) In general.--Any person may request a 
                State emergency response commission or local 
                emergency planning committee for tier II 
                information relating to the preceding calendar 
                year with respect to a facility. Any such 
                request shall be in writing and shall be with 
                respect to a specific facility.
                  (B) Automatic provision of information to 
                public.--Any tier II information which a State 
                emergency response commission or local 
                emergency planning committee has in its 
                possession shall be made available to a person 
                making a request under this paragraph in 
                accordance with section 324. If the State 
                emergency response commission or local 
                emergency planning committee does not have the 
                tier II information in its possession, upon a 
                request for tier II information the State 
                emergency response commission or local 
                emergency planning committee shall, pursuant to 
                paragraph (1), request the facility owner or 
                operator for tier II information with respect 
                to a hazardous chemical which a facility has 
                stored in an amount in excess of 10,000 pounds 
                present at the facility at any time during the 
                preceding calendar year and make such 
                information available in accordance with 
                section 324 to the person making the request.
                  (C) Discretionary provision of information to 
                public.---In the case of tier II information 
                which is not in the possession of a State 
                emergency response commission or local 
                emergency planning committee and which is with 
                respect to a hazardous chemical which a 
                facility has stored in an amount less than 
                10,000 pounds present at the facility at any 
                time during the preceding calendar year, a 
                request from a person must include the general 
                need for the information. The State emergency 
                response commission or local emergency planning 
                committee may, pursuant to paragraph (1), 
                request the facility owner or operator for the 
                tier II information on behalf of the person 
                making the request. Upon receipt of any 
                information requested on behalf of such person, 
                the State emergency response commission or 
                local emergency planning committee shall make 
                the information available in accordance with 
                section 324 to the person.
                  (D) Response in 45 days.--A State emergency 
                response commission or local emergency planning 
                committee shall respond to a request for tier 
                II information under this paragraph no later 
                than 45 days after the date of receipt of the 
                request.
          (4) Availability to community water systems.--
                  (A) In general.--An affected community water 
                system may have access to tier II information 
                by submitting a request to the State emergency 
                response commission or the local emergency 
                planning committee. Upon receipt of a request 
                for tier II information, the State commission 
                or local committee shall, pursuant to paragraph 
                (1), request the facility owner or operator for 
                the tier II information and make available such 
                information to the affected community water 
                system.
                  (B) Definition.--In this paragraph, the term 
                ``affected community water system'' means a 
                community water system (as defined in section 
                1401(15) of the Safe Drinking Water Act) that 
                receives supplies of drinking water from a 
                source water area, delineated under section 
                1453 of the Safe Drinking Water Act, in which a 
                facility that is required to prepare and submit 
                an inventory form under subsection (a)(1) is 
                located.
  (f) Fire Department Access.--Upon request to an owner or 
operator of a facility which files an inventory form under this 
section by the fire department with jurisdiction over the 
facility, the owner or operator of the facility shall allow the 
fire department to conduct an on-site inspection of the 
facility and shall provide to the fire department specific 
location information on hazardous chemicals at the facility.
  (g) Format of Forms.--The Administrator shall publish a 
uniform format for inventory forms within three months after 
the date of the enactment of this title. If the Administrator 
does not publish such forms, owners and operators of facilities 
subject to the requirements of this section shall provide the 
information required under this section by letter.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    Our nation's public drinking water systems serve over 300 
million people, but aging and failing infrastructure threatens 
reliable access to safe drinking water. Earlier this year, the 
American Society of Civil Engineers published its periodic 
infrastructure report card, and rated our drinking water 
infrastructure a ``D'' grade.\1\ Most of the pipes in this 
country are between 75 and 110 years old--at or beyond the 
expected limits of their useful life. Because of this, an 
estimated 240,000 water main breaks occur every year, wasting 
money, disrupting service, and compromising water quality.\2\
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    \1\American Society of Civil Engineers, 2017 Report Card for 
America's Infrastructure, (online at www.infrastructurereportcard.org).
    \2\Id.
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    Lead is also a significant and growing threat from our 
aging infrastructure. Lead is present in our drinking water 
distribution systems in service lines, solder, and fixtures. As 
that infrastructure ages and corrodes, more lead can leach into 
drinking water.
    To maintain safe drinking water delivery, public water 
systems will need to make significant investments to repair or 
replace infrastructure and equipment. EPA's most recent needs 
assessment for drinking water infrastructure estimated that 
$384 billion will be necessary for infrastructure repairs by 
2030.\3\ This amount grew significantly since the agency's last 
assessment, demonstrating that investment has not kept pace 
with need.\4\
---------------------------------------------------------------------------
    \3\U.S. Environmental Protection Agency, Drinking Water 
Infrastructure Needs Survey and Assessment, Fifth Report to Congress 
(April 2013) (EPA-816-R-13-006) (online at water.epa.gov/
grants_funding/dwsrf/index.cfm).
    \4\Id.
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    Delaying these investments will increase costs because 
repairing damaged pipes is more expensive than replacing them 
before breakage.\5\ Old pipes will continue to break resulting 
in massive quantities of lost treated water, and prompting 
inefficient emergency repair expenditures. These costs are then 
passed onto the consumer in higher utility bills and increased 
service disruptions. We support the Drinking Water System 
Improvement Act, but believe that higher funding levels will 
ultimately be needed to address our drinking water 
infrastructure needs.
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    \5\Id.
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    Over the course of the Committee's consideration of this 
bill, provisions were added to address several serious drinking 
water challenges, including resiliency to extreme weather and 
intentional attacks, improved consumer notification 
requirements, and improved monitoring. We strongly support 
these provisions, but note that some serious drinking water 
challenges are still not addressed by the bill. In particular, 
the onerous and unworkable standard setting process in place 
since the 1996 Safe Drinking Water Act Amendments is not 
changed by this bill. That ineffectual process has prevented 
EPA from revising and setting needed drinking water standards, 
including standards for lead, perchlorate, perfluorinated 
chemicals, and algal toxins.
    Additionally, the impacts of Hurricanes Irma and Maria in 
Puerto Rico and the U.S. Virgin Islands show that the federal 
government must take a more active role in addressing drinking 
water needs throughout all of our nation. As we write, more 
than one month after Hurricane Maria hit Puerto Rico, roughly a 
quarter of the residents of Puerto Rico have no access to 
drinking water. Providing access to safe drinking water is a 
fundamental function of our government, and we must do more to 
meet our responsibility in U.S. territories.
    We hope to build on the Drinking Water System Improvement 
Act in the coming months and years to address these remaining 
challenges and remaining funding needs.

                                   Frank Pallone, Jr.,
                                           Ranking Member, Committee on 
                                               Energy and Commerce.
                                   Paul D. Tonko,
                                           Ranking Member, Subcommittee 
                                               on Environment.

                                  [all]