Clean Water Allotment Modernization Act of 2021
This bill revises the formula the Environmental Protection Agency (EPA) uses to determine how to distribute funds from the Clean Water State Revolving Fund (SRF) program. Under the program, the EPA allocates funding to states for water quality infrastructure projects, such as wastewater systems and stormwater management projects.
In FY2022-FY2026, the EPA must provide an initial allotment to each state that is equal to the amount the state received in FY2023. The EPA must also provide an additional allotment to each state that is based on its share of the U.S. population.
In FY2027 and each subsequent fiscal year, the EPA must use an updated allotment formula, which is based on the needs of states as identified in the most recently available clean watersheds needs survey.
Beginning in FY2022, the formula must also provide allotments for Indian tribes and territories. In addition, the formula must provide an allotment for EPA's oversight of SRF projects to ensure they use American iron and steel.
To amend the Federal Water Pollution Control Act to modify certain 
           allotments under that Act, 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 ``Clean Water Allotment Modernization 
Act of 2021''.

SEC. 2. MODIFICATION TO ALLOTMENTS UNDER THE FEDERAL WATER POLLUTION 
              CONTROL ACT.

    Section 205 of the Federal Water Pollution Control Act (33 U.S.C. 
1285) is amended by striking the section designation and heading and 
all that follows through the end of subsection (a) and inserting the 
following:

``SEC. 205. ALLOTMENTS.

    ``(a) In General.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Buy american oversight.--The term `Buy 
                American oversight' means any activity carried out by 
                the Administrator for the purposes of management or 
                oversight with respect to section 608.
                    ``(B) Clean watersheds needs survey.--The term 
                `clean watersheds needs survey' means the detailed 
                estimate prepared by the Administrator under section 
                516(b)(1)(B).
                    ``(C) State.--The term `State' means--
                            ``(i) each of the 50 States;
                            ``(ii) the District of Columbia; and
                            ``(iii) the Commonwealth of Puerto Rico.
                    ``(D) United states territory.--The term `United 
                States territory' means--
                            ``(i) American Samoa;
                            ``(ii) the Commonwealth of the Northern 
                        Mariana Islands;
                            ``(iii) the United States Virgin Islands; 
                        and
                            ``(iv) Guam.
            ``(2) Fiscal years 2022 through 2026.--
                    ``(A) Buy american oversight.--For each of fiscal 
                years 2022 through 2026, of the amounts made available 
                to carry out this section for a fiscal year, the 
                Administrator shall provide an allotment of not less 
                than 0.1 percent for Buy American oversight.
                    ``(B) Initial allotments to states.--For each of 
                fiscal years 2022 through 2026, of the amounts made 
                available to carry out this section for a fiscal year, 
                the Administrator shall provide an allotment to each 
                State in an amount that is not less than the amount 
                received by the State under this section in fiscal year 
                2021.
                    ``(C) Additional allotments to states.--
                Notwithstanding any other provision of this section, 
                for each of fiscal years 2022 through 2026, of the 
                amounts made available to carry out this section for a 
                fiscal year that remain available after application of 
                subparagraph (B), the Administrator shall provide an 
                additional allotment to each State in an amount that is 
                based on the proportion that, as determined using the 
                most recently published annual estimate of the Bureau 
                of the Census--
                            ``(i) the population of the State; bears to
                            ``(ii) the total population of all States.
                    ``(D) Allotments to indian tribes.--For each of 
                fiscal years 2022 through 2026, of the amounts made 
                available to carry out this section for a fiscal year, 
                the Administrator shall provide an allotment of 2 
                percent to Indian tribes.
                    ``(E) Allotments to united states territories.--For 
                each of fiscal years 2022 through 2026, of the amounts 
                made available to carry out this section for a fiscal 
                year, the Administrator shall provide an allotment of 
                1.5 percent to United States territories.
            ``(3) Subsequent fiscal years.--
                    ``(A) In general.--For fiscal year 2027 and each 
                fiscal year thereafter, in allotting amounts made 
                available to carry out this section for a fiscal year, 
                the Administrator shall use an updated allotment 
                formula consistent with subparagraph (B).
                    ``(B) Formula.--
                            ``(i) Development.--The Administrator 
                        shall, by regulation, develop a formula--
                                    ``(I) for the calculation of 
                                allotments of amounts made available to 
                                carry out this section for a fiscal 
                                year to States in accordance with 
                                clause (ii); and
                                    ``(II) that includes allotments of 
                                amounts made available to carry out 
                                this section for a fiscal year--
                                            ``(aa) to provide to Indian 
                                        tribes in accordance with 
                                        clause (iii);
                                            ``(bb) to provide to United 
                                        States territories in 
                                        accordance with clause (iv); 
                                        and
                                            ``(cc) for Buy American 
                                        oversight in accordance with 
                                        clause (v).
                            ``(ii) Allotments for states.--In 
                        developing the formula required under 
                        subparagraph (A) for the allotments described 
                        in clause (i)(I), the Administrator shall--
                                    ``(I) base the formula on the needs 
                                of the States, as identified in the 
                                most recently available clean 
                                watersheds needs survey; and
                                    ``(II) ensure that each State 
                                receives not less than 1 percent of the 
                                amounts made available to carry out 
                                this section for a fiscal year.
                            ``(iii) Allotments for indian tribes.--In 
                        developing the formula required under 
                        subparagraph (A) for the allotments described 
                        in clause (i)(II)(aa), the Administrator shall 
                        provide 2 percent of the amounts made available 
                        to carry out this section for a fiscal year to 
                        Indian tribes.
                            ``(iv) Allotments for united states 
                        territories.--In developing the formula 
                        required under subparagraph (A) for the 
                        allotments described in clause (i)(II)(bb), the 
                        Administrator shall provide 1.5 percent of the 
                        amounts made available to carry out this 
                        section for a fiscal year to United States 
                        territories.
                            ``(v) Buy american oversight.--In 
                        developing the formula required under 
                        subparagraph (A) for the allotments described 
                        in clause (i)(II)(cc), the Administrator shall 
                        ensure that 0.1 percent of the amounts made 
                        available to carry out this section for a 
                        fiscal year are used for Buy American 
                        oversight.
                    ``(C) Timeline.--
                            ``(i) Initial formula.--The Administrator 
                        shall develop the initial formula required 
                        under subparagraph (A) by not later than 
                        September 30, 2026, to ensure that the formula 
                        is in effect for fiscal year 2027.
                            ``(ii) Updates required.--After developing 
                        the formula required under subparagraph (A) by 
                        the date described in clause (i), the 
                        Administrator shall update that formula by not 
                        later than the date that is 1 year after the 
                        date on which the Administrator submits a new 
                        clean watersheds needs survey to Congress.
            ``(4) Savings provision.--To the extent practicable, the 
        Administrator shall continue developing the allotment formula 
        under paragraph (2) until the date on which the Administrator 
        submits to Congress a new clean watersheds needs survey for 
        purposes of the formula required under paragraph (3)(A).''.

SEC. 3. CLEAN WATERSHEDS NEEDS SURVEY.

    Section 516(b) of the Federal Water Pollution Control Act (33 
U.S.C. 1375(b)) is amended--
            (1) by striking paragraph (2);
            (2) in paragraph (1)--
                    (A) in the third sentence, by striking ``Whenever 
                the Administrator,'' and inserting the following:
            ``(3) Submission to congress.--Whenever the 
        Administrator,''; and
                    (B) in the second sentence, by striking ``The 
                Administrator shall'' and inserting the following:
            ``(2) Deadline.--The Administrator shall'';
            (3) by striking the subsection designation and all that 
        follows through ``The Administrator,'' in paragraph (1) and 
        inserting the following:
    ``(b) Estimates; Studies; Analyses.--
            ``(1) In general.--The Administrator,''; and
            (4) in paragraph (1) (as so amended)--
                    (A) by striking ``; and (D) a comprehensive'' and 
                inserting the following: ``; and
                    ``(D) a comprehensive'';
                    (B) by striking ``(C) a comprehensive'' and 
                inserting the following:
                    ``(C) a comprehensive'';
                    (C) by striking ``(B) a detailed estimate'' and all 
                that follows through ``in each of the States;'' and 
                inserting the following:
                    ``(B) a detailed estimate, biennially revised, of 
                the cost of construction of all planned publicly owned 
                treatment works in each State, and all needed publicly 
                owned treatment works in each State, which shall 
                include a detailed estimate of--
                            ``(i) the cost of construction for 
                        rehabilitating or upgrading all existing 
                        publicly owned treatment works (excluding any 
                        pipe or other device or system for the 
                        conveyance of wastewater) every 20 years, 
                        including the cost of implementing measures 
                        necessary to address the resilience and 
                        sustainability of publicly owned treatment 
                        works to manmade or natural disasters; and
                            ``(ii) the cost of construction for 
                        replacing 10 percent of existing publicly owned 
                        pipes and other devices and systems for the 
                        conveyance of wastewater to publicly owned 
                        treatment works over the 20-year period 
                        following the date of the estimate;''; and
                    (D) by striking ``shall make (A) a detailed 
                estimate'' and inserting the following: ``shall make--
                    ``(A) a detailed estimate''.

SEC. 4. ADDITIONAL ELIGIBLE USE OF ALLOTTED FUNDS.

    Section 603 of the Federal Water Pollution Control Act (33 U.S.C. 
1383) is amended by adding at the end the following:
    ``(k) Additional Eligible Use of Allotted Funds.--Notwithstanding 
any other provision of this section, each fiscal year, a State may 
reserve up to 0.5 percent of the amounts allotted to the State under 
this title and section 205(m) for that fiscal year to carry out 
activities necessary to create the detailed estimate under section 
516(b)(1)(B).''.
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Clean Water Allotment Modernization Act of 2021
A bill to amend the Federal Water Pollution Control Act to modify certain allotments under that Act, and for other purposes.
Clean Water Allotment Modernization Act of 2021
Sen. Rubio, Marco