S 5016

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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.”. <all>