,i #aacth ,,congress #b;d ,session ,h4 ,r4 #chfb ,,in ,,the ,,house ,,of ,,representatives ,january #ad1 #bjad,mr4 ,latta 7for himself and ,mr4 ,walz7 introduced the following bill2 which was referred to the ,committee on ,transportation and ,infrastructure ,a ,,bill ,to amend the ,federal ,water ,pollution ,control ,act to assist municipalities and regional sewer authorities that would experience a significant hardship raising the revenue necessary to finance projects and activities for the construction of wastewater treatment works1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,clean ,water ,affordability ,act of #bjad4 #b4 ,integrated permitting process 7a7 ,in general ,section #djb7;a7 of the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #acdb7;a77 is amended by adding at the end the following3 7#f7 ,integrated ,permits 7,a7 ,definition of publicly owned permittee ,in this paragraph1 the term publicly owned permittee means either-- 7i7 a treatment works 7as defined in section #bab7 that is publicly owned2 or 7ii7 a municipal separate storm sewer system referred to in this section4 7,b7 ,planning approach ,the ,administrator shall establish a comprehensive and integrated planning approach to the obligations under this section of a publicly owned permittee-- 7i7 under which permit obligations may be implemented according to a schedule that-- 7,i7 accounts for the financial capability of the publicly owned permittee2 7,,ii7 prioritizes permit obligations according to the most cost-effective and environmentally beneficial outcomes2 7,,iii7 accounts for the preexisting maintenance1 operational1 and regulatory obligations of the publicly owned permittee under this section2 and 7,,iv7 enables the publicly owned permittee to implement innovative approaches to meet those obligations2 and 7ii7 that accounts for changed circumstances in the obligations of the publicly owned permittee1 such as-- 7,i7 new innovative treatment approaches2 7,,ii7 new regulatory requirements2 and 7,,iii7 changes in financial capability4 4 7b7 ,duration of permits ,section #djb7;b77#a77;,b7 of the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #acdb7;b77#a77;,b77 is amended by inserting before the semicolon at the end the following3 1 except that a permit with a term of more than #e years but not more than #be years may be approved if the permittee has an approved integrated plan established under subsection 7a77#f74 #c4 ,updating of guidance 7a7 ,definitions ,in this section1 the following definitions apply3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7#b7 ,affordability ,the term affordability means1 with respect to payment of a utility bill1 a measure of whether an individual customer or household can pay the bill without undue hardship or unreasonable sacrifice in the essential lifestyle or spending patterns of the individual or household1 as determined by the ,administrator4 7#c7 ,financial capability ,the term financial capability means the financial capability of a community to make investments necessary to make water quality-related improvements1 taking into consideration the criteria described in subsection 7b77#b77;,a74 7#d7 ,guidance ,the term guidance means the guidance published by the ,administrator entitled ,combined ,sewer ,overflows--,guidance for ,financial ,capability ,assessment and ,schedule ,development and dated ,february #aiig1 as applicable to combined sewer overflows and sanitary sewer overflows4 7b7 ,updating 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,administrator shall update the guidance to ensure that the evaluations by the ,administrator of financial capability assessment and schedule development meet the criteria described in paragraph 7#b74 7#b7 ,criteria ,the criteria described in this paragraph are that1 under the updated guidance-- 7,a7 in assessing the financial capability of a community-- 7i7 greater emphasis should be placed on local economic conditions2 7ii7 for regional systems1 consideration should be given to the economic conditions of political jurisdictions and significant demographic groups within each region2 7iii7 prescriptive formulas for use in calculating financial capability and thresholds for expenditure should not be considered to be the only indicator of the financial capability of a community2 7iv7 site-specific local conditions should be taken into consideration in analyzing financial capability2 7v7 a single measure of financial capability or affordability 7such as median household income7 should be viewed in the context of other economic measures1 rather than as a threshold to be achieved2 and 7vi7 7,i7 consideration should be given to the economic outlook of a community1 including the potential impact of program requirements over time1 in the development of implementation schedules2 and 7,,ii7 the assessment should take into consideration other essential community investments relating to water quality improvements2 7,b7 with respect to the timing of implementation of water quality-related improvements-- 7i7 environmental improvement implementation schedules should be structured to mitigate the potential adverse impact on distressed populations resulting from the costs of the improvements2 7ii7 implementation schedules should reflect local community financial conditions and economic impacts2 7iii7 implementation schedules should allow permittees up to #cj years to implement water quality-related improvements in appropriate cases in which the cost of implementing the improvements places a high financial burden on the permittee2 and 7iv7 existing implementation schedules should be modified in appropriate cases taking into consideration the criteria set forth in this subparagraph2 7,c7 with respect to implementation-- 7i7 a determination of local financial capability may be achieved through an evaluation of an array of factors the relative importance of which may vary across regions and localities2 and 7ii7 an appropriate methodology should give consideration to such various factors as are appropriate to recognize the prevailing and projected economic concerns in a community2 and 7,d7 the residential indicator should be revised to include-- 7i7 a consideration of costs imposed upon ratepayers for essential utilities2 7ii7 increased consideration and quantification of local community-imposed costs in regional systems2 7iii7 a mechanism to assess impacts on communities with disparate economic conditions throughout the entire service area of a utility2 7iv7 a consideration of the industrial and population trends of a community2 7v7 recognition that-- 7,i7 the median household income of a service area reflects a numerical median rather than the distribution of incomes within the service area2 and 7,,ii7 more representative methods of determining affordability1 such as shelter costs1 essential utility payments1 ,state affordability criteria1 and ,state and local tax efforts1 should be considered2 7vi7 a consideration of low-income ratepayer percentages2 and 7vii7 impacts relating to program delivery1 such as water quality infrastructure market saturation and program management4 7#c7 ,implementation ,the updated guidance should indicate that1 in a case in which a previously approved long-term control plan or associated enforceable agreement does not prohibit modification of the plan or terms of the agreement 7including financial capability considerations71 and all parties are in agreement that a change is needed or that the plan or agreement does not prohibit reopening to address changes in the economic or financial status of the community since the effective date of the plan or agreement1 reconsideration and modification of financial capability determinations and implementation schedules based on the criteria described in paragraph 7#b7 is appropriate4 7#d7 ,applicability ,the ,administrator shall apply the updated guidance1 including the criteria described in paragraph 7#b71 to each determination and analysis of affordability1 financial capability1 or widespread and substantial economic impact related to implementation of a program under the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #abea et seq474 7c7 ,publication and submission ,upon completion of the updating of guidance under subsection 7b71 the ,administrator shall publish in the ,federal ,register and submit to the ,committee on ,environment and ,public ,works of the ,senate and the ,committee on ,transportation and ,infrastructure of the ,house of ,representatives the updated guidance4 #d4 ,capitalization grant agreements ,section #fjb7;b7 of the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #achb7;b77 is amended-- 7#a7 by striking and at the end of paragraph 7#i72 7#b7 by striking the period at the end of paragraph 7#aj7 and inserting 2 and2 and 7#c7 by adding at the end the following3 7#aa7 the ,state will use at least #ae percent of the amount of each capitalization grant received by the ,state under this title after ,september #cj1 #bjae1 to provide assistance to municipalities of fewer than #aj1jjj individuals that meet the affordability criteria established by the ,state under section #fjc7;i77#b7 for activities included on the ,state's priority list established under section #fjc7;g71 to the extent that there are sufficient applications for such assistance4 4 #e4 ,water pollution control revolving loan funds 7a7 ,extended ,repayment ,period ,section #fjc7;d77#a7 of the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #achc7;d77#a77 is amended-- 7#a7 in subparagraph 7,a7 by striking #bj years and inserting the lesser of #cj years or the design life of the project to be financed with the proceeds of the loan2 and 7#b7 in subparagraph 7,b7 by striking not later than #bj years after project completion and inserting upon the expiration of the term of the loan4 7b7 ,additional ,subsidization ,section #fjc of such ,act 7#cc ,u4,s4,c4 #achc7 is amended by adding at the end the following3 7i7 ,additional ,subsidization 7#a7 ,in general ,in any case in which a ,state provides assistance to a municipality or intermunicipal1 interstate1 or ,state agency under subsection 7d71 the ,state may provide additional subsidization1 including forgiveness of principal1 negative interest loans1 and grants to benefit a municipality that-- 7,a7 meets the ,state's affordability criteria established under paragraph 7#b72 or 7,b7 does not meet the ,state's affordability criteria if the recipient-- 7i7 seeks additional subsidization to benefit individual ratepayers in the residential user rate class2 and 7ii7 demonstrates to the ,state that such ratepayers will experience a significant hardship from the increase in rates necessary to finance the project or activity for which assistance is sought4 7#b7 ,affordability criteria 7,a7 ,establishment ,on or before ,september #cj1 #bjae1 and after providing notice and an opportunity for public comment1 a ,state shall establish affordability criteria to assist in identifying municipalities that would experience a significant hardship raising the revenue necessary to finance a project or activity eligible for assistance under section #fjc7;c77#a7 if additional subsidization is not provided4 ,such criteria shall be based on income data1 population trends1 and other data determined relevant by the ,state1 including whether the project or activity is to be carried out in an economically distressed area1 as described in section #cja of the ,public ,works and ,economic ,development ,act of #aife 7#db ,u4,s4,c4 #cafa74 7,b7 ,existing criteria ,if a ,state has previously established1 after providing notice and an opportunity for public comment1 affordability criteria that meet the requirements of subparagraph 7,a71 the ,state may use the criteria for the purposes of this subsection4 ,for purposes of this ,act1 any such criteria shall be treated as affordability criteria established under this paragraph4 7,c7 ,information to assist ,states ,the ,administrator may publish information to assist ,states in establishing affordability criteria under subparagraph 7,a74 7#c7 ,use of capitalization grants ,a ,state shall use not less than #bj percent but not more than #cj percent of the amount of the capitalization grants received by the ,state under this title in fiscal years beginning after ,september #cj1 #bjae1 to provide additional subsidization to eligible recipients under paragraph 7#a74 4