# Clean Water SRF Parity Act: What It Does

This bill expands who can get federal money to build and improve water treatment systems. Right now, federal clean water funding flows mainly through state programs that help municipalities and public water systems. This bill opens the door to two new groups: nonprofit organizations and privately owned water treatment companies.

For nonprofits, the bill allows qualified organizations to tap into federal revolving loan funds to build or upgrade water treatment facilities. This could help rural areas or underserved communities where nonprofits run water systems. The catch is that states can't give these nonprofits extra subsidies or special deals beyond what the regular program offers—they get the same terms as everyone else.

For private water companies, the bill creates a new funding stream, but only when federal appropriations exceed a specific threshold of about $1.64 billion annually. Any money above that amount can go to privately owned treatment works for improvements, efficiency upgrades, or conservation measures. However, there's an important limitation: the money can only fund projects that directly benefit the customers and communities served by these systems, not the companies' shareholders or owners. States can't give private companies subsidies either.

The practical effect is that this bill could help fill infrastructure gaps in areas where nonprofits or private companies operate water systems, potentially improving water quality and service in communities that might otherwise struggle to fund upgrades. However, it doesn't change how much total federal money goes to water infrastructure—it just redirects some of it to new eligible recipients.

Clean Water SRF Parity Act

Rep. Garamendi, John [D-CA-8]

Clean Water SRF Parity Act This bill expands the state revolving fund established under the Clean Water Act, including by allowing low-interest loans to be given to privately owned treatment works to address wastewater. Currently, loans are given to wastewater systems that are publicly owned.