Clean Water Allotment Modernization Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5016 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5016

 To amend the Federal Water Pollution Control Act to modify allotments
                under that Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 16, 2026

 Mr. Scott of Florida (for himself, Mr. Kelly, Mr. Curtis, Mr. Bennet,
  Mr. Crapo, Mr. Ossoff, Mr. Warnock, and Mr. Gallego) introduced the
 following bill; which was read twice and referred to the Committee on
                      Environment and Public Works

_______________________________________________________________________

                                 A BILL

 To amend the Federal Water Pollution Control Act to modify 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 2026''.

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

    (a) In General.--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 (c) and
inserting the following:

``SEC. 205. ALLOTMENTS.

    ``(a) Definitions.--In this section:
            ``(1) 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.
            ``(2) Clean watersheds needs survey.--The term `clean
        watersheds needs survey' means the assessment prepared by the
        Administrator under section 609.
            ``(3) State.--The term `State' means--
                    ``(A) each of the 50 States;
                    ``(B) the District of Columbia; and
                    ``(C) the Commonwealth of Puerto Rico.
            ``(4) United states territory.--The term `United States
        territory' means--
                    ``(A) American Samoa;
                    ``(B) the Commonwealth of the Northern Mariana
                Islands;
                    ``(C) the United States Virgin Islands; and
                    ``(D) Guam.
    ``(b) Set Asides.--Before making an allotment to States under
subsection (c), of the amounts made available from appropriation to
carry out this section for a fiscal year, the Administrator shall set
aside the following:
            ``(1) Buy american oversight.--Not less than 0.1 percent to
        carry out Buy American oversight.
            ``(2) Allotments for indian tribes.--Pursuant to section
        518(c)(2), 2 percent for Indian tribes (as defined in section
        518(h)) for the purposes described in section 518(c)(3).
            ``(3) Allotments for united states territories.--1.5
        percent for allotment to United States territories in an amount
        consistent with the allotment the United States territory
        received in fiscal year 2026.
    ``(c) Allotments to States.--
            ``(1) Formula.--Beginning with the first fiscal year after
        the publication of the initial formula pursuant to paragraph
        (3)(A), of the amounts appropriated to carry out this section
        for a fiscal year that remain available after the set-asides
        required under subsection (b) and any other required set-
        asides, the Administrator shall allot to States--
                    ``(A) 60 percent based on the proportion that--
                            ``(i) the needs of a State, as identified
                        in the categories and associated proportions
                        included in the most recent clean watersheds
                        needs survey; bears to
                            ``(ii) the needs of all States, as
                        identified in that most recent clean watersheds
                        needs survey;
                    ``(B) 20 percent based on the proportion that--
                            ``(i) the population of a State, as
                        identified in the most recent decennial census
                        or American Community Survey 1-year estimate of
                        population; bears to
                            ``(ii) the population of all States, as
                        identified in that most recent decennial census
                        or American Community Survey 1-year estimate of
                        population; and
                    ``(C) 20 percent based on the proportion that--
                            ``(i) the share of the population of a
                        State at or below 200 percent of the Federal
                        poverty level, as identified in the most recent
                        American Community Survey 1-year estimate of
                        poverty; bears to
                            ``(ii) the total of the share of the
                        population of all States at or below 200
                        percent of the Federal poverty level, as
                        identified in that most recent American
                        Community Survey 1-year estimate of poverty.
            ``(2) Transition period.--For the first fiscal year after
        the publication of the initial formula pursuant to paragraph
        (3)(A), and for each of the 3 subsequent fiscal years
        thereafter, the Administrator shall ensure that the allotment
        pursuant to paragraph (1) for each State does not, as compared
        to the amount allotted to the State during the immediately
        prior fiscal year--
                    ``(A) increase by more than 200 percent; or
                    ``(B) decrease by more than 25 percent.
            ``(3) Publication.--
                    ``(A) Initial formula.--The Administrator shall
                publish in the Federal Register the formula and
                allotment amounts pursuant to this subsection by not
                later than September 30 of the first fiscal year after
                the publication of the first clean watersheds needs
                survey after the date of enactment of the Clean Water
                Allotment Modernization Act of 2026.
                    ``(B) Updates required.--The Administrator shall
                publish annually in the Federal Register updates, as
                appropriate, to the allotments for each State based on
                the most recently released--
                            ``(i) decennial census;
                            ``(ii) American Community Survey 1-year
                        estimates of population and poverty; and
                            ``(iii) clean watersheds needs survey.''.
    (b) Minimum Allotments.--Section 205(e) of the Federal Water
Pollution Control Act (33 U.S.C. 1285(e)) is amended by striking ``(e)
For'' and all that follows through ``1990'' in the first sentence and
inserting the following:
    ``(e) Minimum Allotment; Additional Appropriations; Ratio of Amount
Available.--For fiscal year 2027 and each fiscal year thereafter''.
    (c) No Effect on Infrastructure Funds.--Nothing in this section or
an amendment made by this section affects--
            (1) amounts made available to carry out section 205 of the
        Federal Water Pollution Control Act (33 U.S.C. 1285) or title
        VI of that Act (33 U.S.C. 1381 et seq.) under division J of the
        Infrastructure Investment and Jobs Act (Public Law 117-58; 135
        Stat. 1350); or
            (2) any allocations of those amounts.

SEC. 3. CLEAN WATERSHEDS NEEDS SURVEY.

    Section 516 of the Federal Water Pollution Control Act (33 U.S.C.
1375) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c) through (e) as
        subsections (b) through (d), respectively.

SEC. 4. ADDITIONAL ELIGIBLE USE OF CAPITALIZATION GRANTS.

    Section 603(k) of the Federal Water Pollution Control Act (33
U.S.C. 1383(k)) is amended--
            (1) in the subsection heading, by striking ``Use'' and
        inserting ``Uses'';
            (2) by striking ``A State may'' and inserting the
        following:
            ``(1) Technical assistance.--A State may''; and
            (3) by adding at the end the following:
            ``(2) Clean watersheds needs surveys.--Notwithstanding any
        other provision of this section, of the amounts received by a
        State through a capitalization grant with funds made available
        under this title and section 205(m) each fiscal year, a State
        may use not more than 0.5 percent to carry out activities
        necessary for the assessment under section 609.''.
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