Septic Upgrade Grant Act
This bill expands the clean water state revolving fund program to include additional subsidization for on-site wastewater treatment system projects, such as projects that replace septic systems with wastewater treatment systems that reduce nitrogen pollution as specified under the bill.
To amend the Federal Water Pollution Control Act to provide for 
 additional subsidization assistance to a municipality to carry out on-
   site wastewater treatment system projects, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Septic Upgrade Grant Act''.

SEC. 2. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.

    Section 603(i) of the Federal Water Pollution Control Act (33 
U.S.C. 1383(i)) is amended--
            (1) by striking paragraph (1)(B) and inserting the 
        following:
                    ``(B) to implement a program, process, material, 
                technique, or technology to--
                            ``(i) address water-efficiency goals;
                            ``(ii) address energy-efficiency goals;
                            ``(iii) mitigate stormwater runoff;
                            ``(iv) mitigate pollution from from on-site 
                        wastewater treatment systems; or
                            ``(v) encourage sustainable project 
                        planning, design, and construction.'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Subsidization amounts.--A State may use for providing 
        additional subsidization in a fiscal year under this subsection 
        an amount that does not exceed the greater of--
                    ``(A) 30 percent of the total amount received by 
                the State in capitalization grants under this title for 
                the fiscal year; or
                    ``(B) the annual average over the previous 10 
                fiscal years of the amounts deposited by the State in 
                the State water pollution control revolving fund from 
                State moneys that exceed the amounts required to be so 
                deposited under section 602(b)(2).''; and
            (3) by adding at the end the following:
            ``(4) Additional subsidization for on-site wastewater 
        treatment system programs.--
                    ``(A) Eligibility.--
                            ``(i) In general.--To be eligible for 
                        additional subsidization for an on-site 
                        wastewater treatment system program under 
                        paragraph (1)(B)(iv), a municipality shall 
                        ensure that such program is included in a 
                        conservation management plan approved pursuant 
                        to any State or local law or in a conservation 
                        and management plan approved pursuant to 
                        section 320.
                            ``(ii) Plan contents.--A plan described in 
                        clause (i) shall--
                                    ``(I) identify any pollutants of 
                                concern or water pollution problems 
                                that threaten public health, drinking 
                                water, natural resources, or freshwater 
                                or marine ecosystem recovery; and
                                    ``(II) address how the on-site 
                                wastewater treatment system program 
                                described in clause (i) will abate the 
                                pollutants or water pollution problems 
                                identified in subclause (I).
                            ``(iii) Program management.--An on-site 
                        wastewater treatment system program carried out 
                        using funds provided under this subsection 
                        shall be managed by a municipality and have 
                        enforceable program requirements to ensure the 
                        long-term sustainability of an on-site 
                        wastewater treatment system, including proper 
                        operation and maintenance of such system.
                    ``(B) New construction not eligible.--Any on-site 
                wastewater treatment system project proposed to be 
                carried out on a new construction site shall not be 
                eligible for additional subsidization pursuant to this 
                subsection.
                    ``(C) Non-federal share.--The non-Federal share of 
                the cost of an on-site wastewater treatment system 
                project carried out under this subsection shall be not 
                more than 20 percent.
                    ``(D) Priority.--A State shall prioritize awarding 
                additional subsidization under paragraph (1)(B)(iv) for 
                on-site wastewater treatment system programs that--
                            ``(i) benefit a financially distressed 
                        community (as such term is defined in section 
                        221(c)); or
                            ``(ii) are carried out in an area that--
                                    ``(I) is in close proximity to 
                                threatened or impaired water bodies or 
                                groundwater; or
                                    ``(II) has groundwater, or surface 
                                waters used as drinking water where a 
                                septic system or cesspool is known or 
                                suspected to be a major source of 
                                pollutants.
            ``(5) Definitions.--In this subsection:
                    ``(A) New construction.--The term `new 
                construction' means the preparation for and 
                construction of--
                            ``(i) a new housing structure on a site; or
                            ``(ii) a significant extension to an 
                        existing housing structure on a site.
                    ``(B) On-site wastewater treatment system 
                program.--The term `on-site wastewater treatment system 
                program' means a program to carry out more than 1 on-
                site wastewater treatment system project in a 
                municipality that meets the eligibility criteria under 
                paragraph (4)(A).
                    ``(C) On-site wastewater treatment system 
                project.--The term `on-site wastewater treatment system 
                project' means a project that replaces a septic system 
                or cesspool serving a single dwelling or small business 
                with a wastewater treatment system that reduces 
                nitrogen pollution by at least 50 percent, in 
                accordance with standard 245 developed by the National 
                Sanitation Foundation.''.
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Septic Upgrade Grant Act
To amend the Federal Water Pollution Control Act to provide for additional subsidization assistance to a municipality to carry out on-site wastewater treatment system projects, and for other purposes.
Septic Upgrade Grant Act
Rep. Suozzi, Thomas R.