Rural decentralized water systems

Section 306E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926e) is amended— (1) by striking the section designation and heading and all that follows through the period at the end of subsection (b)(1) and inserting the following: 306E. Decentralized water and wastewater system program (a) Grants to nonprofit organizations The Secretary may provide grants to private nonprofit organizations and federally recognized Indian Tribes for the purpose of providing subgrants and loans in accordance with subsection (b) to individuals for 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 individuals. (b) Loans and subgrants to individuals (1) In general A nonprofit organization or federally recognized Indian Tribe shall use grant amounts received under subsection (a) to provide— (A) subgrants for use in accordance with this section to individuals residing in the service area of the nonprofit organization who are members of a household with a combined income (for the most recent 12-month period for which the information is available) that is less than 80 percent of the median nonmetropolitan household income for the area, according to the most recent decennial census; and (B) loans for use in accordance with this section to individuals residing in the service area of the nonprofit organization who are members of a household with a combined income (for the most recent 12-month period for which the information is available) that is not more than 100 percent, of the median nonmetropolitan household income for the area, according to the most recent decennial census.; (2) in subsection (b)— (A) in paragraph (2)(B), by striking $15,000 and inserting $25,000; and (B) by adding at the end the following: (5) Funding to cover cost of performance warranties A subgrant provided to an individual under this subsection for an individually owned household decentralized wastewater system may include sufficient additional funding to cover the cost of a performance warranty with a duration of at least 5 years. (6) Technical assistance and support A nonprofit organization or federally recognized Indian Tribe that receives a grant under this section may use an amount equal to not more than 10 percent of the grant to provide technical assistance and support to individuals eligible for a subgrant or loan under this section relating to the installation and maintenance of household decentralized water and wastewater systems.; and (3) in subsection (d), by striking 2023 and inserting 2031.