H.R. 5833: Clean Water Affordability Act

This bill, known as the Clean Water Affordability Act, aims to amend existing federal laws regarding water pollution control funding. Here are the key features of the bill:

Changes to Subsidization Rules

The bill proposes modifications to how states receive funding through water pollution control revolving loan funds. Specifically, it aims to:

• Change the criteria under which states can provide additional financial assistance to residents, specifically ratepayers using wastewater treatment services.
• Increase the available amount for additional subsidization that states can use each fiscal year, allowing them to access up to 50% of the total funding received from federal capitalization grants or the average state contributions over the past decade.
• Mandate that at least 20% of the total capitalization grants received by a state in a given fiscal year must be allocated to providing additional subsidization, assuming there are sufficient applications that meet certain eligibility criteria.

Definitions and Guidelines

The bill clarifies what constitutes additional subsidization by specifying that loans with interest rates of 0% or higher are not considered additional subsidization.

Goals of the Legislation

The primary objective of this legislation is to enhance access to wastewater treatment services by reducing the financial burden on ratepayers through increased state flexibility in funding distribution. It seeks to ensure that communities can better manage the costs associated with maintaining clean water services.

Implementation Framework

The bill would require states to develop programs that comply with the new rules regarding subsidization and to provide necessary reporting on how funds are utilized to support water treatment services.

Impact on Localities

Local governments and communities may benefit from this bill by having greater financial support available for wastewater treatment projects, which can help prevent water pollution and protect public health.

Relevant Companies

• ACM - A company heavily involved in infrastructure development, potentially benefiting from increased funding for water treatment projects.
• DVN - A firm engaged in environmental services that may experience greater demand for its services as localities enhance their water treatment systems.