Rural decentralized water systems

Section 306E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926e) is amended to read as follows: 306E. Rural decentralized water systems (a) Definitions In this section: (1) Eligible individual The term eligible individual means an individual who is a member of a household the members of which have a combined income (for the most recent 12-month period for which the information is available) that is not more than 80 percent of the median nonmetropolitan household income for the State or territory in which the individual resides, according to the most recent decennial census of the United States. (2) Eligible grant recipient The term eligible grant recipient means a private nonprofit organization that uses a grant provided under this section for the purposes described in subsection (b)(1). (3) Qualified water quality testing The term qualified water quality testing means a baseline analysis of the bacterial and chemical characteristics of concern from a drinking water sample collected at the point of consumption and tested by a laboratory certified to conduct water quality testing that is provided to— (A) the Secretary; and (B) the eligible grant recipient receiving a grant under this section and any eligible individual served by the eligible grant recipient. (b) Grants (1) In general The Secretary may make grants to an eligible grant recipient for the purpose of— (A) providing loans and subgrants to eligible individuals for— (i) the construction, refurbishing, and servicing of individual household water well systems and individually owned household decentralized wastewater systems in rural areas that are or will be owned by the eligible individuals; or (ii) in the event of ground well water contamination, the installation or replacement of water treatment, where needed as determined by a qualified water quality test or other third party third-party documentation to the satisfaction of the Secretary; (B) performing qualified water quality testing of individual household water well systems and individually utilized household decentralized wastewater systems in rural areas that are or will be utilized by the eligible individuals; or (C) providing technical assistance to eligible individuals for— (i) the installation or replacement of individual household water well systems and individually owned household decentralized wastewater systems in rural areas that are or will be owned by the eligible individuals; (ii) interpreting qualified water quality tests; or (iii) addressing ground well water contamination. (2) Terms and amounts for loans and subgrants (A) Terms of loans A loan made with grant funds under this section— (i) shall have an interest rate of 1 percent; and (ii) shall have a term not to exceed 20 years. (B) Amounts A loan or subgrant made with grant funds under this section shall not exceed $20,000 for each water well system or decentralized wastewater system described in paragraph (1). (3) Administrative expenses A recipient of a grant made under this section may use grant funds to pay administrative expenses associated with providing the assistance described in paragraph (1), as determined by the Secretary. (4) Water treatment standards Water treatment provided under this section shall— (A) incorporate components that are third-party certified as compliant with relevant consensus-based standards for drinking water treatment units or systems, as determined by the Secretary; and (B) be installed, according to the instructions of the manufacturer, by a qualified, certified, or licensed water treatment professional, including a professional credentialed through a manufacturer or third-party. (c) Priority in awarding grants In awarding grants under this section, the Secretary shall give priority to an applicant that has substantial expertise and experience in promoting the safe and effective use of individually owned household water well systems, individually owned household decentralized wastewater systems, and ground water. (d) Limitation An eligible grant recipient cannot use more than 10 percent of a grant awarded under this section for the activities described under subparagraphs (B) and (C) of subsection (b)(1). (e) Authorization of appropriations There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2027 through 2031..