Title II — Drinking Water System Improvement

“(j) State Response to Contaminants.—

“(1) In general.—The Administrator may, subject to the terms and conditions of this section, issue a grant to a requesting State, on behalf of an underserved community, so the State may assist in, or otherwise carry out, necessary and appropriate activities related to a contaminant—

“(A) that is determined by the State to—

“(i) be present in, or likely to enter into, a public water system serving, or an underground source of drinking water for, such underserved community; and

“(ii) potentially present an imminent and substantial endangerment to the health of persons; and

“(B) with respect to which the State determines appropriate authorities have not acted sufficiently to protect the health of such persons.

“(2) Recovery of funds.—If, subsequent to the Administrator’s award of a grant to a State under this subsection, any person or entity (including an eligible entity), is found by the Administrator or a court of competent jurisdiction to have caused or contributed to contamination that was detected as a result of testing conducted, or treated, with funds provided under this subsection, and such contamination violated a law administered by the Administrator, such person or entity shall, upon issuance of a final judgment or settlement and the exhaustion of all appellate and administrative remedies—

“(A) notify the Administrator in writing not later than 30 days after such issuance of a final judgment or settlement and the exhaustion of all appellate and administrative remedies; and

“(B) promptly pay the Administrator an amount equal to the amount of such funds.”

; and

“(l) Drinking Water Infrastructure Resilience and Sustainability.—

“(1) Resilience and natural hazard.—The terms ‘resilience’ and ‘natural hazard’ have the meaning given such terms in section 1433(h).

“(2) In general.—The Administrator may establish and carry out a program, to be known as the Drinking Water System Infrastructure Resilience and Sustainability Program, under which the Administrator, subject to the availability of appropriations for such purpose, shall award grants in each of fiscal years 2019 and 2020 to eligible entities for the purpose of increasing resilience to natural hazards.

“(3) Use of funds.—An eligible entity may only use grant funds received under this subsection to assist in the planning, design, construction, implementation, operation, or maintenance of a program or project that increases resilience to natural hazards through—

“(A) the conservation of water or the enhancement of water use efficiency;

“(B) the modification or relocation of existing drinking water system infrastructure made, or that is at risk of being, significantly impaired by natural hazards, including risks to drinking water from flooding;

“(C) the design or construction of desalination facilities to serve existing communities;

“(D) the enhancement of water supply through the use of watershed management and source water protection;

“(E) the enhancement of energy efficiency or the use and generation of renewable energy in the conveyance or treatment of drinking water; or

“(F) the development and implementation of measures to increase the resilience of the eligible entity to natural hazards.

“(4) Application.—To seek a grant under this subsection, the eligible entity shall submit to the Administrator an application that—

“(A) includes a proposal of the program or project to be planned, designed, constructed, implemented, operated, or maintained by the eligible entity;

“(B) identifies the natural hazard risk to be addressed by the proposed program or project;

“(C) provides documentation prepared by a Federal, State, regional, or local government agency of the natural hazard risk to the area where the proposed program or project is to be located;

“(D) includes a description of any recent natural hazard events that have affected the applicable water system;

“(E) includes a description of how the proposed program or project would improve the performance of the system under the anticipated natural hazards; and

“(F) explains how the proposed program or project is expected to enhance the resilience of the system to the anticipated natural hazards.

“(5) Authorization of appropriations.—There is authorized to be appropriated to carry out this subsection $4,000,000 for each of fiscal years 2019 and 2020.”

“(F) Revisions.—

“(i) Understandability and frequency.—Not later than 24 months after the date of enactment of America’s Water Infrastructure Act of 2018, 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.”

“(3) Authority for mandatory assessment.—

“(A) Authority.—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), or other actions expected to achieve compliance with national primary drinking water regulations described in clause (i)(I), 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 determined 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, transfer, or other action is feasible; and

“(iii) such consolidation, transfer, or other action could result in greater compliance with national primary drinking water regulations.

“(B) Tailoring of assessments.—Requirements for any assessment to be conducted pursuant to subparagraph (A) shall be tailored with respect to the size, type, and characteristics, of the public water system to be assessed.

“(C) Approved entities.—An assessment conducted pursuant to subparagraph (A) may be conducted by an entity approved by the State requiring such assessment (or the Administrator, if the State does not have primary enforcement responsibility), which may include such State (or the Administrator, as applicable), the public water system, or a third party.

“(D) Burden of assessments.—It is the sense of Congress that any assessment required pursuant to subparagraph (A) should not be overly burdensome on the public water system that is assessed.

“(4) Financial assistance.—Notwithstanding section 1452(a)(3), a public water system undertaking consolidation or transfer of ownership or other actions pursuant to an assessment completed under paragraph (3) may receive a loan described in section 1452(a)(2)(A) to carry out such consolidation, transfer, or other action.

“(5) Protection of nonresponsible system.—

“(A) Identification of liabilities.—

“(i) In general.—An owner or operator of a public water system that submits a plan pursuant to paragraph (1) based on an assessment conducted with respect to such public water system under paragraph (3) shall identify as part of such plan—

“(I) any potential and existing liability for penalties and 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 and existing liabilities for penalties and damages arising from each specific violation identified in the plan are identified.

“(B) Reservation of funds.—A public water system that, consistent with the findings of an assessment conducted pursuant to paragraph (3), has completed the actions under a plan submitted and approved pursuant to this subsection 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 America’s Water Infrastructure Act of 2018, the Administrator shall promulgate regulations to implement paragraphs (3), (4), and (5).”

“(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. 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 America’s Water Infrastructure Act of 2018, 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 2020 and 2021 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 $25,000,000 for each of fiscal years 2020 and 2021.

“(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.”

“(5) 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 State loan fund.”

“(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.”

“(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 America’s Water Infrastructure Act of 2018, 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.”

“(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 fewer 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) Limitation on enforcement.—The Administrator may not enforce a requirement to monitor pursuant to paragraph (1) with respect to any public water system serving fewer than 3,300 persons, including by subjecting such a public water system to any civil penalty.

“(5) 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.”

“(1) There are authorized to be appropriated to carry out the purposes of this section—

“(A) $1,174,000,000 for fiscal year 2019;

“(B) $1,300,000,000 for fiscal year 2020; and

“(C) $1,950,000,000 for fiscal year 2021.”

“(2) To the extent amounts authorized to be”

; and