(a) Establishment

Subject to the availability of appropriations, not later than 180 days after November 15, 2021, the Administrator shall establish an efficiency grant program (referred to in this section as the “efficiency grant program”) under which the Administrator shall award grants to eligible entities for the replacement or repair of equipment that improves water or energy efficiency of small publicly owned treatment works, as identified in an efficiency audit.

(b) Eligible entities

Terms Used In 33 USC 1302c

  • replacement: as used in this subchapter means those expenditures for obtaining and installing equipment, accessories, or appurtenances during the useful life of the treatment works necessary to maintain the capacity and performance for which such works are designed and constructed. See 33 USC 1292
  • treatment works: means any devices and systems used in the storage, treatment, recycling, and reclamation of municipal sewage or industrial wastes of a liquid nature to implement section 1281 of this title, or necessary to recycle or reuse water at the most economical cost over the estimated life of the works, including intercepting sewers, outfall sewers, sewage collection systems, pumping, power, and other equipment, and their appurtenances. See 33 USC 1292

The Administrator may award a grant under the efficiency grant program to—

(1) an owner or operator of a small publicly owned treatment works that serves—

(A) a population of not more than 10,000 people; or

(B) a disadvantaged community; or


(2) a nonprofit organization that seeks to assist a small publicly owned treatment works described in paragraph (1) to carry out the activities described in subsection (a).

(c) Report

Not later than 2 years after the date on which the Administrator establishes the efficiency grant program, and every 2 years thereafter, the Administrator shall submit to Congress a report describing—

(1) each recipient of a grant under the efficiency grant program; and

(2) a summary of the activities carried out under the efficiency grant program.

(d) Use of funds

(1) Small systems

Of the amounts made available for grants under this section, to the extent that there are sufficient applications, not less than 15 percent shall be used for grants to publicly owned treatment works that serve fewer than 3,300 people.

(2) Limitation on use of funds

Of the amounts made available for grants under this section, not more than 2 percent may be used to pay the administrative costs of the Administrator.