*>EPA
America's Water Infrastructure Act:
Promoting Water System Compliance and Long-term Capacity
via the Water System Restructuring Rule
Purpose
AWIA amends SDWA Subsection 1414(h) - Consolidation Incentive - to require that EPA issue a regulation which authorizes primacy agencies to
mandate restructuring assessments for public water systems (PWSs) which frequently violate health-based standards, and which have unsuccessfully
attempted, or which are unable to attempt, feasible and affordable actions to comply. The assessments must be tailored to the water system's size,
type, and other factors, and cannot be overly burdensome. The regulation also must describe liability protection for a compliant PWS which is
consolidating with an assessed PWS. In addition, primacy agencies may provide enforcement relief to PWSs under contractual agreements to correct
violations identified in a restructuring plan. AWIA also amended SDWA Section 1413 requirements for primary enforcement responsibility to include
the new mandatory assessment authority. As a result, all primacy agencies will need to update their primacy status to meet the new requirement. In
response to the AWIA mandate, EPA is developing the Water System Restructuring Rule, which will include both the consolidation incentive provisions
under Subsection 1414(h), and the primacy requirements under Section 1413, of the SDWA.
Background
Since the AWIA became law:
~	Primacy agencies also may provide enforcement relief under a contract
for managerial or administrative functions.
~Assessments must be tailored and should not be "overly burdensome"
~	Primacy agencies, EPA, approved third parties, or the PWS under
assessment may conduct the assessments
~	Restructuring plans are eligible for DWSRF Funding
~	Primacy agencies may offer liability protection to a "non-responsible
system" under an approved restructuring plan
~	EPA must publish a regulation for SDWA 1414(h) by October 2020
Because AWIA also changed primacy requirements, all state, local and
Tribal primacy agencies must revise their primacy status and resubmit
applications to the EPA for review and approval.
Key Concepts for the Water System Restructuring Rule
~Tailoring of a mandatory assessment to the assessed water system's size,
type and "other characteristics" to be defined in the rule.
~Ensuring a mandatory assessment is not "overly burdensome" on the
assessed water system, as defined in the rule
~Protection of the non-responsible system from liability for violations incurred
by an assessed water system when the systems consolidate
~Enforcement relief under a primacy-agency approved restructuring plan
~Relationship of a mandatory assessment to a restructuring plan
Implementation
As mandated under SDWA 1414(h)(6), the EPA will be developing a
Water System Restructuring Rule which governs mandatory
restructuring assessments. The Agency will consult with state and
Tribal primacy agencies, water system associations, technical service
providers, and other stakeholders. The Water System Restructuring
Rule also will define valid water system restructuring plans and
mandatory restructuring assessments, and clarify when a plan must be
based on an assessment. In addition, the rule will clarify when a primacy
agency may provide enforcement relief and liability protection for water
systems under a restructuring plan, describe how the assessments must
be tailored to the water system, and define what it means for an
assessment to not be "overly burdensome."
PWSs which are very likely
candidates for restructuring
assessments
Systems near regulatory limits; Systems with Health
Based limits in previous years butnot currently in
violation
Systems in with no Heath Based violations in the Previous 10
years and no warning signs of deterioration - (60+ percent of
Universe)
PWSs which might be
candi dates for restructuring
assessments if underlying
causes are not addressed
OFFICE OF WATER
EPA # 810-F-19-009
July 2019

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SEC. 2010. ADDITIONAL CONSIDERATIONS FOR COMPLIANCE
(a)	MANDATORY ASSESSMENT—Subsection (h) of section 1414 of the Safe Drinking Water Act (42 U.S.C. 300g—3) is amended by adding at the
end the following:
"(3) AUTHORITY FOR MANDATORY ASSESSMENT-
"(A) AUTHORITY—A State with primary enforcement responsibility or the Administrator (if the State does not have primary enforcement
responsibility) may require the owner or operator of a public water system to assess options for consolidation, or transfer of ownership of the system,
as described in paragraph (1), or other actions expected to achieve compliance with national primary drinking water
regulations described in clause (i)(l), if—
"(i) the public water system— "(I) has repeatedly violated one or more national primary drinking water regulations and such repeated violations are
likely to adversely affect human health; and "(ll)(aa) is unable or unwilling to take feasible and affordable actions, as determined by the State with
primary enforcement responsibility or the Administrator (if the State does not have primary enforcement responsibility), that will result in the public
water system complying with the national primary drinking water regulations described in subclause (I), including accessing technical assistance and
financial assistance through the State loan fund pursuant to section 1452; or "(bb) has already undertaken actions described in item (aa) without
achieving compliance; "(ii) such consolidation, transfer, or other action is feasible; and "(iii) such consolidation, transfer, or other action could result in
greater compliance with national primary drinking water regulations.
"(B) TAILORING OF ASSESSMENTS—Requirements for any assessment to be conducted pursuant to subparagraph (A) shall be tailored with
respect to the size, type, and characteristics, of the public water system to be assessed.
"(C) APPROVED ENTITIES—An assessment conducted pursuant to subparagraph (A) may be conducted by an entity approved by the State
requiring such assessment (or the Administrator, if the State does not have primary enforcement responsibility), which may include such State (or the
Administrator, as applicable), the public water system, or a third party.
S. 3021-84
"(D) BURDEN OF ASSESSMENTS—It is the sense of Congress that any assessment required pursuant to subparagraph (A) should not be overly
burdensome on the public water system that is assessed.
"(4) FINANCIAL ASSISTANCE—Notwithstanding section 1452(a)(3), a public water system undertaking consolidation or transfer of ownership or
other actions pursuant to an assessment completed under paragraph (3) may receive a loan described in section 1452(a)(2)(A) to carry out such
consolidation, transfer, or other action.
"(5) PROTECTION OF NONRESPONSIBLE SYSTEM-
"(A) IDENTIFICATION OF LIABILITIES—
"(i) IN GENERAL.—An owner or operator of a public water system that submits a plan pursuant to paragraph (1) based on an assessment conducted
with respect to such public water system under paragraph (3) shall identify as part of such plan—"(I) any potential and existing liability for penalties
and damages arising from each specific violation identified in the plan of which the owner or operator is aware; and "(II) any funds or other assets that
are available to satisfy such liability, as of the date of submission of such plan, to the public water system that committed such violation,
"(ii) INCLUSION—In carrying out clause (i), the owner or operator shall take reasonable steps to ensure that all potential and existing liabilities for
penalties and damages arising from each specific violation identified in the plan are identified.
"(B) RESERVATION OF FUNDS.—A public water system that, consistent with the findings of an assessment conducted pursuant to paragraph (3),
has completed the actions under a plan submitted and approved pursuant to this subsection shall not be liable under this title for a violation of this title
identified in the plan, except to the extent to which funds or other assets are identified pursuant to subparagraph (A)(i)(ll) as available to satisfy such
liability.
"(6) REGULATIONS—Not later than 2 years after the date of enactment of America's Water Infrastructure Act of 2018, the Administrator shall
promulgate regulations to implement paragraphs (3), (4), and (5)."
(b)	RETENTION OF PRIMARY ENFORCEMENT AUTHORITY-
(1)	IN GENERAL—Section 1413(a) of the Safe Drinking Water Act (42 U.S.C. 300g—2(a)) is amended—
(A)	in paragraph (5), by striking "; and" and inserting a semicolon;
(B)	by redesignating paragraph (6) as paragraph (7); and
(C)	by inserting after paragraph (5) the following new paragraph:
"(6) has adopted and is implementing procedures for requiring public water systems to assess options for consolidation or transfer of ownership or
other actions in accordance with the regulations issued by the Administrator under section 1414(h)(6); and".
S. 3021-85
(2)	CONFORMING AMENDMENT-Section 1413(b)(1) of the Safe Drinking Water Act (42 U.S.C. 300g-2(b)(1)) is amended by striking "of
paragraphs (1), (2), (3), and (4)".
SEC. 2009. CONTRACTUAL AGREEMENTS
(a) IN GENERAL—Section 1414(h)(1) of the Safe Drinking Water Act (42 U.S.C. 300g—3(h)(1)) is amended—(1) in subparagraph (B), by striking "or"
after the semicolon; S. 3021—83 (2) in subparagraph (C), by striking the period at the end and inserting"; or"; and (3) by adding at the end the
following new subparagraph: "(D) entering into a contractual agreement for significant management or administrative functions of the system to correct
violations identified in the plan.".
OFFICE OF WATER
EPA # 810-F-19-009
July 2019

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