EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

SEC. 2326. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM. (a) Establishment of Program.— Subtitle A of the Consolidated Farm and Rural Development Act is amended by inserting after section 306A (7 U.S.C. 1926a) the following new section: “SEC. 306B. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM. “(a) In General.— The Secretary shall make grants in accordance with this section to assist the residents of rural areas and small communities to secure adequate quantities of safe water— “(1) after a significant decline in the quantity or quality of water available from the water supplies of such rural areas and small communities; or “(2) when repairs, partial replacement, or significant maintenance efforts on established water systems would remedy an acute shortage of quality water or would remedy a significant decline in the quantity or quality of water that is available. “(b) Priority.— In carrying out subsection (a), the Secretary shall give priority to projects described in subsection (a)(1), and provide at least 70 percent of all such grants to such projects. “(c) Eligibility.— To be eligible to obtain a grant under this section, an applicant shall— “(1) be a public or private nonprofit entity; and “(2) in the case of a grant made under subsection (a)(1), demonstrate to the Secretary that the decline referred to in such subsection occurred within 2 years of the date the application for such grant was made. “(d) Uses.— “(1) In general.— Grants made under this section may be used for waterline extensions from existing systems, laying of new waterlines, repairs, significant maintenance, digging of new wells, equipment replacement, hook and tap fees, and any other appropriate purpose associated with developing sources of, or treating, storing, or distributing water, and to assist communities in complying with the requirements of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 U.S.C. 300f et seq.). “(2) Joint proposals.— This section shall not preclude rural communities from submitting joint proposals for emergency water assistance, subject to the restrictions of subsection (e). Such restrictions should be considered in the aggregate, depending on the number of communities involved. “(e) Restrictions.— Grants made under this section shall not be used to assist any rural area or community that— “(1) includes any area in any city or town with a population in excess of 5,000 inhabitants according to the most recent decennial census of the United States; or “(2) has a median household income in excess of the State nonmetropolitan median household income according to the most recent decennial census of the United States. Not less than 75 percent of the funds allocated under this section shall be allocated to rural communities with populations that do not exceed 3,000 inhabitants. “(f) Maximum Grants.— Grants made under this section may not exceed— 104 STAT. 4015 “(1) in the case of each grant made under subsection (a)(1), $500,000; and “(2) in the case of each grant made under subsection (a)(2), $75,000. “(g) Full Funding.— Subject to subsection (e), each grant under this section shall be made in an amount equal to 100 percent of the costs of the projects with respect to which the grant is made. “(h) Application.— The Secretary shall develop a nationally competitive application process to award grants under this section. Such process shall include criteria for evaluating applications, including population, median household income, and the severity of the decline in quantity or quality of water. The Secretary snail make every effort to review and act on applications within 60 days of the date that such applications are submitted. “(i) Limitations on Authorization of Appropriations.— To carry out this section, there are authorized to be appropriated $25,000,000 for fiscal year 1991, and $10,000,000 for fiscal year 1992. To the extent the amount authorized to be appropriated for a fiscal year under this subsection exceeds the amount so appropriated, such excess amount shall remain authorized to be appropriated for succeeding fiscal years until fully appropriated.”. (b) Implementation.— (1) Regulations.— The Secretary shall publish— (A) interim final regulations to carry out section 306B of the Consolidated Farm and Rural Development Act not later than 45 days after the date of enactment of this Act; and (B) final regulations to carry out section 306B not later than 90 days after such date of enactment. (2) Funds.— (A) Obligation.— The Secretary shall obligate 70 percent of the funds made available for the first fiscal year for which appropriations are made under section 306B(i) of the Consolidated Farm and Rural Development Act not later than 5 months after the date such funds are appropriated. (B) Release.— The Secretary may make grants under section 306B(a)(1) of Consolidated Farm and Rural Development Act before final regulations are issued under paragraph (1)(B) of this subsection.