42 USC 300 - State revolving loan funds

1 So in original. Probably should be preceded by “section”.

of this title (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

Editorial Notes

References in Text

The Internal Revenue Code of 1986, referred to in subsec. (a)(2)(G)(iii), is classified generally to Title 26, Internal Revenue Code.

The Safe Drinking Water Act Amendments of 1996, referred to in subsec. (n), is Puspan. L. 104–182, Aug. 6, 1996, 110 Stat. 1613. For complete classification of this Act to the Code, see Short Title of 1996 Amendment note set out under section 201 of this title and Tables.

Amendments

2021—Subsec. (a)(4)(A). Puspan. L. 117–58, § 50102(a)(1), substituted “Funds” for “During fiscal years 2019 through 2023, funds”.

Subsec. (d)(1). Puspan. L. 117–58, § 50102(span)(1), designated existing provisions as subpar. (A), inserted subpar. span, inserted “, grants, negative interest loans, other loan forgiveness, and through buying, refinancing, or restructuring debt” after “forgiveness of principal”, and added subpar. (B).

Subsec. (d)(2)(B). Puspan. L. 117–58, § 50102(span)(2), added subpar. (B) and struck out former subpar. (B) which read as follows: “to the extent that there are sufficient applications for loans to communities described in paragraph (1), may not be less than 6 percent.”

Subsec. (m)(1)(D) to (G). Puspan. L. 117–58, § 50102(a)(2), added subpars. (D) to (G).

Subsec. (q). Puspan. L. 117–58, § 50102(a)(3), substituted “2022 through 2026” for “2016 through 2021”.

2019—Subsec. (a)(2)(G). Puspan. L. 116–92, § 7312(1), added subpar. (G).

Subsec. (m)(1). Puspan. L. 116–92, § 7312(2), substituted “this section, except for subsections (a)(2)(G) and (t)” for “this section” in introductory provisions.

Subsec. (t). Puspan. L. 116–92, § 7312(3), added subsec. (t).

2018—Subsec. (a)(2)(B). Puspan. L. 115–270, § 2015(a), substituted “(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” for “(including expenditures for planning, design, and associated preconstruction activities, including activities relating to the siting of the facility, but not”.

Subsec. (a)(4)(A). Puspan. L. 115–270, § 2022, substituted “fiscal years 2019 through 2023” for “fiscal year 2017”.

Subsec. (a)(5). Puspan. L. 115–270, § 2015(span), added par. (5).

Subsec. (d)(2). Puspan. L. 115–270, § 2015(c), amended par. (2) generally. Prior to amendment, text read as follows: “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.”

Subsec. (f)(1)(B). Puspan. L. 115–270, § 2015(d)(3), substituted “18 months after completion of the project for which the loan was made;” for “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;”.

Subsec. (f)(1)(C) to (E). Puspan. L. 115–270, § 2015(d)(1), (2), added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively.

Subsec. (h). Puspan. L. 115–270, § 2015(e), designated existing provisions as par. (1) and added par. (2).

Subsec. (k)(1)(C). Puspan. L. 115–270, § 2015(f), substituted “to delineate, assess, and update assessments for source water protection areas in accordance with section 300j–13 of this title” for “for fiscal years 1996 and 1997 to delineate and assess source water protection areas in accordance with section 300j–13 of this title”.

Subsec. (k)(1)(D). Puspan. L. 115–270, § 2002(1), inserted “and for the implementation of efforts (other than actions authorized under subparagraph (A)) to protect source water in areas delineated pursuant to section 300j–13 of this title” before period at end.

Subsec. (k)(2)(E). Puspan. L. 115–270, § 2002(2), inserted “, and to implement efforts to protect source water,” after “wellhead protection programs”.

Subsec. (m). Puspan. L. 115–270, § 2023, substituted par. (1) for first sentence which read “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.”, designated second and third sentences as par. (2), and, in par. (2), struck out “(prior to the fiscal year 2004)” after “subsequent fiscal year”.

Subsec. (s). Puspan. L. 115–270, § 2015(g), added subsec. (s).

2016—Subsec. (a)(2)(A). Puspan. L. 114–322, § 2102(5), designated first sentence of par. (2) as subpar. (A) and inserted span.

Subsec. (a)(2)(B). Puspan. L. 114–322, § 2102(4), (6), designated second sentence of par. (2) as subpar. (B), inserted span, and substituted “(including expenditures for planning, design, and associated preconstruction activities, including activities relating to the siting of the facility, but not” for “(not”.

Subsec. (a)(2)(C). Puspan. L. 114–322, § 2102(7), added subpar. (C).

Subsec. (a)(2)(D). Puspan. L. 114–322, § 2102(3), designated third sentence of par. (2) as subpar. (D), inserted span, and substituted “The funds under this section” for “The funds”.

Subsec. (a)(2)(E). Puspan. L. 114–322, § 2102(2), designated fourth sentence of par. (2) as subpar. (E), inserted span, and substituted “The funds under this section” for “The funds”.

Subsec. (a)(2)(F). Puspan. L. 114–322, § 2102(1), designated fifth sentence of par. (2) as subpar. (F) and inserted span.

Subsec. (a)(4). Puspan. L. 114–322, § 2113, added par. (4).

Subsec. (g)(2). Puspan. L. 114–322, § 2103(4), struck out third sentence of par. (2) which read as follows: “At least half of the match must be additional to the amount expended by the State for public water supervision in fiscal year 1993.”

Subsec. (g)(2)(A). Puspan. L. 114–322, § 2103(6), added subpar. (A) and struck out first sentence of par. (2) which read as follows: “Each State may annually use up to 4 percent of the funds allotted to the State under this section 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 which are incurred after August 6, 1996, and to provide technical assistance to public water systems within the State.” Former subpar. (A) redesignated subpar. (B)(i).

Subsec. (g)(2)(B). Puspan. L. 114–322, § 2103(7)(B), struck out “if the State matches the expenditures with at least an equal amount of State funds.” before “At least half” in concluding provisions.

Puspan. L. 114–322, § 2103(1), (5), redesignated second sentence of par. (2) as subpar. (B), inserted span, and redesignated former pars. (A) to (D) as cls. (i) to (iv), respectively, of subpar. (B).

Subsec. (g)(2)(B)(iv). Puspan. L. 114–322, § 2103(7)(A), substituted “300g–8 of this title.” for “300g–8 of this title,”.

Subsec. (g)(2)(C). Puspan. L. 114–322, § 2103(3), designated fourth sentence of par. (2) as subpar. (C) and inserted span. Former subpar. (C) redesignated subpar. (B)(iii).

Subsec. (g)(2)(D). Puspan. L. 114–322, § 2103(2), added subpar. (D) and struck out fifth sentence of par. (2) which read as follows: “Funds utilized under subparagraph (B) shall not be used for enforcement actions.” Former subpar. (D) redesignated subpar. (B)(iv).

Subsec. (i)(1). Puspan. L. 114–322, § 2112(span)(1), substituted “Tribes, Alaska Native villages, and, for the purpose of carrying out paragraph (5), intertribal consortia or tribal organizations,” for “Tribes and Alaska Native villages” and “Except as otherwise provided, the grants” for “The grants”.

Subsec. (i)(5). Puspan. L. 114–322, § 2112(span)(2), added par. (5).

Subsec. (q). Puspan. L. 114–322, § 2110, substituted “made available to carry out this section for each of fiscal years 2016 through 2021” for “appropriated pursuant to subsection (m) for each of the fiscal years 1997 through 2003”.

Statutory Notes and Related Subsidiaries

Assistance for Areas Affected by Natural Disasters

Puspan. L. 115–270, title II, § 2020, Oct. 23, 2018, 132 Stat. 3859, provided that:

“(a)Definitions.—In this section:

“(1)Community water system.—The term ‘community water system’ has the meaning given such term in section 1401(15) of the Safe Drinking Water Act (42 U.S.C. 300f(15)).

“(2)Eligible state.—The term ‘eligible State’ means a State, as defined in section 1401(13)(B) of the Safe Drinking Water Act (42 U.S.C. 300f(13)(B)).

“(3)Eligible system.—The term ‘eligible system’ means a community water system—

“(A) that serves an area for which, after January 1, 2017, the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)—

“(i) has issued a major disaster declaration; and

“(ii) provided disaster assistance; or

“(B) that is capable of extending its potable drinking water service into an underserved area.

“(4)National primary drinking water regulation.—The term ‘national primary drinking water regulation’ means a national primary drinking water regulation under section 1412 of the Safe Drinking Water Act (42 U.S.C. 300g–1).

“(5)Underserved area.—The term ‘underserved area’ means a geographic area in an eligible State that—

“(A) is served by a community water system serving fewer than 50,000 persons where delivery of, or access to, potable water is or was disrupted; and

“(B) received disaster assistance pursuant to a declaration described in paragraph (3)(A).

“(span)State Revolving Loan Fund Assistance.—

“(1)In general.—An eligible State may use funds provided pursuant to subsection (e)(1) to provide assistance to an eligible system within the eligible State for the purpose of restoring or increasing compliance with national primary drinking water regulations in an underserved area.

“(2)Inclusion.—

“(A)Additional subsidization.—With respect to assistance provided under paragraph (1), an eligible system shall be eligible to receive loans with additional subsidization (including forgiveness of principal, negative-interest loans, or grants (or any combination thereof)) for the purpose described in paragraph (1).

“(B)Nondesignation.—Assistance provided under paragraph (1) may include additional subsidization, as described in subparagraph (A), even if the service area of the eligible system has not been designated by the applicable eligible State as a disadvantaged community pursuant to section 1452(d)(3) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)(3)).

“(c)Exclusion.—Assistance provided under this section shall not include assistance for a project that is financed (directly or indirectly), in whole or in part, with proceeds of any obligation issued after the date of enactment of this Act [Oct. 23, 2018] the interest of which is exempt from the tax imposed under chapter 1 of the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.].

“(d)Nonduplication of Work.—An activity carried out pursuant to this section shall not duplicate the work or activity of any other Federal or State department or agency.

“(e)Additional Drinking Water State Revolving Fund Capitalization Grants.—

“(1)In general.—There is authorized to be appropriated to the Administrator of the Environmental Protection Agency $100,000,000 to provide additional capitalization grants pursuant to section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12) to eligible States, to be available—

“(A) for a period of 24 months beginning on the date on which the funds are made available for the purpose described in subsection (span)(1); and

“(B) after the end of such 24-month period, until expended for the purpose described in paragraph (3) of this subsection.

“(2)Supplemented intended use plans.—

“(A)Obligation of amounts.—Not later than 30 days after the date on which an eligible State submits to the Administrator a supplemental intended use plan under section 1452(span) of the Safe Drinking Water Act (42 U.S.C. 300j–12(span)), from funds made available under paragraph (1), the Administrator shall obligate to such eligible State such amounts as are appropriate to address the needs identified in such supplemental intended use plan for the purpose described in subsection (span)(1).

“(B)Plans.—A supplemental intended use plan described in subparagraph (A) shall include information regarding projects to be funded using the assistance provided under subsection (span)(1), including, with respect to each such project—

“(i) a description of the project;

“(ii) an explanation of the means by which the project will restore or improve compliance with national primary drinking water regulations in an underserved area;

“(iii) the estimated cost of the project; and

“(iv) the projected start date for the project.

“(3)Unobligated amounts.—Any amounts made available to the Administrator under paragraph (1) that are unobligated on the date that is 24 months after the date on which the amounts are made available shall be available for the purpose of providing additional grants to States to capitalize State loan funds as provided under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12).

“(4)Applicability.—

“(A)In general.—Except as otherwise provided in this section, all requirements of the Safe Drinking Water Act (42 U.S.C. 300f et seq.) shall apply to funding provided under this section.

“(B)Intended use plans.—Section 1452(span)(1) of the Safe Drinking Water Act (42 U.S.C. 300j–12(span)(1)) shall not apply to a supplemental intended use plan under paragraph (2).

“(C)State contribution.—For amounts authorized to be appropriated under paragraph (1), the matching requirements in section 1452(e) of the Safe Drinking Water Act (42 U.S.C. 300j–12(e)) shall not apply to any funds provided to the Commonwealth of Puerto Rico under this section.”

Drinking Water Infrastructure

Puspan. L. 114–322, title II, § 2201, Dec. 16, 2016, 130 Stat. 1731, provided that:

“(a)Definitions.—In this section:

“(1)Eligible state.—The term ‘eligible State’ means a State for which the President has declared an emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) relating to the public health threats associated with the presence of lead or other contaminants in drinking water provided by a public water system.

“(2)Eligible system.—The term ‘eligible system’ means a public water system that has been the subject of an emergency declaration referred to in paragraph (1).

“(3)Lead service line.—The term ‘lead service line’ means a pipe and its fittings, which are not lead free (as defined under section 1417 of the Safe Drinking Water Act (42 U.S.C. 300g–6)), that connect the drinking water main to the building inlet.

“(4)Public water system.—The term ‘public water system’ has the meaning given such term in section 1401(4) of the Safe Drinking Water Act (42 U.S.C. 300f(4)).

“(span)State Revolving Loan Fund Assistance.—

“(1)In general.—An eligible system shall be—

“(A) considered to be a disadvantaged community under section 1452(d) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)); and

“(B) eligible to receive loans with additional subsidization under section 1452(d)(1) of that Act (42 U.S.C. 300j–12(d)(1)), including forgiveness of principal under that section.

“(2)Authorization.—

“(A)In general.—Using funds provided pursuant to subsection (d), an eligible State may provide assistance to an eligible system within the eligible State for the purpose of addressing lead or other contaminants in drinking water, including repair and replacement of lead service lines and public water system infrastructure.

“(B)Inclusion.—Assistance provided under subparagraph (A) may include additional subsidization under section 1452(d)(1) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)(1)), as described in paragraph (1)(B).

“(C)Exclusion.—Assistance provided under subparagraph (A) shall not include assistance for a project that is financed (directly or indirectly), in whole or in part, with proceeds of any obligation issued after the date of enactment of this Act [Dec. 16, 2016]—

“(i) the interest of which is exempt from the tax imposed under chapter 1 of the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.]; or

“(ii) with respect to which credit is allowable under subpart I [former 26 U.S.C. 54A et seq.] or J [former 26 U.S.C. 54AA] of part IV of subchapter A of chapter 1 of such Code.

“(3)Inapplicability of limitation.—Section 1452(d)(2) of the Safe Drinking Water Act (42 U.S.C. 300j–12(d)(2)) shall not apply to—

“(A) any funds provided pursuant to subsection (d) of this section;

“(B) any other assistance provided to an eligible system; or

“(C) any funds required to match the funds provided under subsection (d).

“(c)Nonduplication of Work.—An activity carried out pursuant to this section shall not duplicate the work or activity of any other Federal or State department or agency.

“(d)Additional Drinking Water State Revolving Fund Capitalization Grants.—

“(1)In general.—There is authorized to be appropriated to the Administrator [of the Environmental Protection Agency] a total of $100,000,000 to provide additional capitalization grants to eligible States pursuant to section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12), to be available for a period of 18 months beginning on the date on which the funds are made available, for the purposes described in subsection (span)(2), and after the end of the 18-month period, until expended for the purposes described in paragraph (3).

“(2)Supplemented intended use plans.—From funds made available under paragraph (1), the Administrator shall obligate to an eligible State such amounts as are necessary to meet the needs identified in a supplemented intended use plan for the purposes described in subsection (span)(2) by not later than 30 days after the date on which the eligible State submits to the Administrator a supplemented intended use plan under section 1452(span) of the Safe Drinking Water Act (42 U.S.C. 300j–12(span)) that includes preapplication information regarding projects to be funded using the additional assistance, including, with respect to each such project—

“(A) a description of the project;

“(B) an explanation of the means by which the project will address a situation causing a declared emergency in the eligible State;

“(C) the estimated cost of the project; and

“(D) the projected start date for construction of the project.

“(3)Unobligated amounts.—Any amounts made available to the Administrator under paragraph (1) that are unobligated on the date that is 18 months after the date on which the amounts are made available shall be available to provide additional grants to States to capitalize State loan funds as provided under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12).

“(4)Applicability.—

“(A) Section 1452(span)(1) of the Safe Drinking Water Act (42 U.S.C. 300j–12(span)(1)) shall not apply to a supplement to an intended use plan under paragraph (2).

“(B) Unless explicitly waived, all requirements under the Safe Drinking Water Act (42 U.S.C. 300f et seq.) shall apply to funding provided under this subsection.

“(e)Health Effects Evaluation.—

“(1)In general.—Pursuant to section 104(i)(1)(E) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9604(i)(1)(E)), and on receipt of a request of an appropriate State or local health official of an eligible State, the Director of the Agency for Toxic Substances and Disease Registry of the National Center for Environmental Health shall in coordination with other agencies, as appropriate, conduct voluntary surveillance activities to evaluate any adverse health effects on individuals exposed to lead from drinking water in the affected communities.

“(2)Consultations.—Pursuant to section 104(i)(4) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9604(i)(4)), and on receipt of a request of an appropriate State or local health official of an eligible State, the Director of the Agency for Toxic Substances and Disease Registry of the National Center for Environmental Health shall provide consultations regarding health issues described in paragraph (1).

“(f)No Effect on Other Projects.—This section shall not affect the application of any provision of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3901 et seq.) or the Safe Drinking Water Act (42 U.S.C. 300f et seq.) to any project that does not receive assistance pursuant to this subtitle [subtitle B (§§ 2201–2204) of title II of Puspan. L. 114–322, enacting provisions set out as this note and section 300j–27 of this title].”

Combining Fund Assets for Enhancement of Lending Capacity

Puspan. L. 105–276, title III, Oct. 21, 1998, 112 Stat. 2498, provided in part: “That, consistent with section 1452(g) of the Safe Drinking Water Act (42 U.S.C. 300j–12(g)), section 302 of the Safe Drinking Water Act Amendments of 1996 (Public Law 104–182) [set out as a note below] and the accompanying joint explanatory statement of the committee of conference (H. Rept. No. 104–741 to accompany S. 1316, the Safe Drinking Water Act Amendments of 1996), and notwithstanding any other provision of law, beginning in fiscal year 1999 and thereafter, States may combine the assets of State Revolving Funds (SRFs) established under section 1452 of the Safe Drinking Water Act, as amended, and title VI of the Federal Water Pollution Control Act [33 U.S.C. 1381 et seq.], as amended, as security for bond issues to enhance the lending capacity of one or both SRFs, but not to acquire the state match for either program, provided that revenues from the bonds are allocated to the purposes of the Safe Drinking Water Act [42 U.S.C. 300f et seq.] and the Federal Water Pollution Control Act [33 U.S.C. 1251 et seq.] in the same portion as the funds are used as security for the bonds”.

Transfer of Funds

Puspan. L. 112–74, div. E, title II, Dec. 23, 2011, 125 Stat. 1018, provided in part: “That for fiscal year 2012 and hereafter, the Administrator may transfer funds provided for tribal set-asides through funds appropriated for the Clean Water State Revolving Funds and for the Drinking Water State Revolving Funds between those accounts in such manner as the Administrator deems appropriate, but not to exceed the transfer limits given to States under section 302(a) of Public Law 104–182 [set out below].”

Puspan. L. 109–54, title II, Aug. 2, 2005, 119 Stat. 530, provided in part: “That for fiscal year 2006 and thereafter, State authority under section 302(a) of Public Law 104–182 [set out as a note below] shall remain in effect”.

Similar provisions were contained in the following prior appropriation acts:

Puspan. L. 108–447, div. I, title III, Dec. 8, 2004, 118 Stat. 3330.

Puspan. L. 108–199, div. G, title III, Jan. 23, 2004, 118 Stat. 406.

Puspan. L. 108–7, div. K, title III, Fespan. 20, 2003, 117 Stat. 512.

Puspan. L. 107–73, title III, Nov. 26, 2001, 115 Stat. 685.

Puspan. L. 104–182, title III, § 302, Aug. 6, 1996, 110 Stat. 1683, provided that:

“(a)In General.—Notwithstanding any other provision of law, at any time after the date 1 year after a State establishes a State loan fund pursuant to section 1452 of the Safe Drinking Water Act [42 U.S.C. 300j–12] but prior to fiscal year 2002, a Governor of the State may—

“(1) reserve up to 33 percent of a capitalization grant made pursuant to such section 1452 and add the funds reserved to any funds provided to the State pursuant to section 601 of the Federal Water Pollution Control Act (33 U.S.C. 1381); and

“(2) reserve in any year a dollar amount up to the dollar amount that may be reserved under paragraph (1) for that year from capitalization grants made pursuant to section 601 of such Act (33 U.S.C. 1381) and add the reserved funds to any funds provided to the State pursuant to section 1452 of the Safe Drinking Water Act.

“(span)Report.—Not later than 4 years after the date of enactment of this Act [Aug. 6, 1996], the Administrator shall submit a report to the Congress regarding the implementation of this section, together with the Administrator’s recommendations, if any, for modifications or improvement.

“(c)State Match.—Funds reserved pursuant to this section shall not be considered to be a State match of a capitalization grant required pursuant to section 1452 of the Safe Drinking Water Act or the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).”