Federal

Assistance for Rural Water Systems Act of 2023

Source: Congress.gov · 590 words in original text

What This Bill Does

This bill amends the Consolidated Farm and Rural Development Act to provide additional financial assistance to rural water systems, wastewater systems and waste disposal systems. The bill allows the Secretary (the head of the federal agency responsible for these programs) to offer grants and loans with favorable terms to help these systems operate and maintain public health and safety.

Who It Affects

Rural water facilities, rural wastewater facilities and rural waste disposal facilities that qualify for assistance under existing federal water programs. The Secretary of the federal agency responsible for rural development programs.

Key Provisions

- The Secretary may give grants, zero percent interest loans or 1 percent interest loans to eligible rural water, wastewater or waste disposal systems (Sec. 306B(b)(1)) - The Secretary may forgive (cancel) or reduce the principal (original borrowed amount) or interest on existing loans to these systems, or refinance part or all of other qualifying loans (Sec. 306B(b)(2)) - Assistance may be provided to ensure these systems have resources to maintain public health, safety or order, or to address financial hardships in disadvantaged or economically distressed areas (Sec. 306B(c)) - The Secretary must establish a way to measure affordable water service costs in each state or area by calculating cost per household as a percentage of median household income (Sec. 306B(d)(1))

What Changes

Rural water, wastewater and waste disposal systems gain access to new types of financial assistance including grants, low-interest loans, loan forgiveness and loan refinancing options. The Secretary gains authority to cancel or reduce portions of existing loans to eligible systems and to establish criteria for determining which areas qualify as disadvantaged or economically distressed.

Important Definitions

Eligible entity: A rural water, wastewater or waste disposal facility that can receive assistance under existing federal water programs.

Effective Date

Not specified in bill text

II 118TH CONGRESS 1ST SESSION S. 1079 To amend the Consolidated Farm and Rural Development Act to provide additional assistance to rural water, wastewater, and waste disposal sys- tems, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 30, 2023 Mrs. SHAHEEN (for herself and Mr. TILLIS) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nu- trition, and Forestry A BILL To amend the Consolidated Farm and Rural Development Act to provide additional assistance to rural water, wastewater, and waste disposal systems, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Assistance for Rural 4 Water Systems Act of 2023’’. 5 VerDate Sep 11 2014 22:32 Apr 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1079.IS S1079 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1079 IS SEC. 2. ADDITIONAL ASSISTANCE FOR RURAL WATER SYS- 1 TEMS. 2 Subtitle A of the Consolidated Farm and Rural De- 3 velopment Act is amended by inserting after section 306A 4 (7 U.S.C. 1926a) the following: 5 ‘‘SEC. 306B. ADDITIONAL ASSISTANCE FOR RURAL WATER 6 SYSTEMS. 7 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec- 8 tion, the term ‘eligible entity’ means a rural water, waste- 9 water, or waste disposal facility with respect to which as- 10 sistance may be provided under a water, wastewater, or 11 waste disposal program under section 306(a), 306A, 12 306C, or 306D. 13 ‘‘(b) ADDITIONAL ASSISTANCE.— 14 ‘‘(1) GRANTS AND LOANS.—The Secretary may 15 provide a grant, a zero percent interest loan, or a 1 16 percent interest loan to an eligible entity. 17 ‘‘(2) EXISTING LOANS.—The Secretary may— 18 ‘‘(A) forgive principal or interest or modify 19 any term or condition of an outstanding loan 20 made to an eligible entity; or 21 ‘‘(B) refinance part or all of any other loan 22 (if the purpose of the loan is an eligible purpose 23 under section 306(a)(1) or 306C) made to an 24 eligible entity. 25 VerDate Sep 11 2014 22:32 Apr 10, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1079.IS S1079 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1079 IS ‘‘(3) LIMITATION.—The Secretary may not pro- 1 vide assistance under paragraph (2) with respect to 2 a loan made under paragraph (1). 3 ‘‘(c) ELIGIBLE PURPOSES.—The Secretary may pro- 4 vide assistance to an eligible entity under subsection (b) 5 as the Secretary determines is necessary— 6 ‘‘(1) to ensure that the eligible entity has the 7 necessary resources to maintain public health, safe- 8 ty, or order; or 9 ‘‘(2) to address financial hardships of the eligi- 10 ble entity, if the eligible entity is located in a dis- 11 advantaged or economically distressed area, as deter- 12 mined under subsection (d). 13 ‘‘(d) DETERMINATION.—To determine whether an el- 14 igible entity may receive assistance pursuant to subsection 15 (c)(2), the Secretary shall establish— 16 ‘‘(1) a residential indicator of affordable water 17 services in each State or local or geographic area, 18 calculated using the cost per household as a percent- 19 age of median household income; and 20 ‘‘(2) factors relating to disadvantaged or eco- 21 nomically distressed areas.’’. 22 Æ VerDate Sep 11 2014 22:32 Apr 10, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1079.IS S1079 pbinns on DSKJLVW7X2PROD with $$_JOB

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