DRINKING WATER STATE REVOLVING FUNDS.

SEC. 7312. DRINKING WATER STATE REVOLVING FUNDS. Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is amended— (1) in subsection (a)(2), by adding at the end the following: “(G) Emerging contaminants.— “(i) In general.—Notwithstanding any other provision of law and subject to clause (ii), amounts deposited under subsection (t) in a State loan fund established under this section may only be used to provide grants for the purpose of addressing emerging contaminants, with a focus on perfluoroalkyl and polyfluoroalkyl substances. “(ii) Requirements.— “(I) Small and disadvantaged communities.—Not less than 25 percent of the amounts described in clause (i) shall be used to provide grants to— “(aa) disadvantaged communities (as defined in subsection (d)(3)); or “(bb) public water systems serving fewer than 25,000 persons. “(II) Priorities.—In selecting the recipient of a grant using amounts described in clause (i), a State shall use the priorities described in subsection (b)(3)(A). “(iii) No increased bonding authority.—The amounts deposited in the State loan fund of a State under subsection (t) may not be used as a source of payment of, or security for (directly or indirectly), in whole or in part, any obligation the interest on which is exempt from the tax imposed under chapter 1 of the Internal Revenue Code of 1986.” ; (2) in subsection (m)(1), in the matter preceding subparagraph (A), by striking “this section” and inserting “this section, except for subsections (a)(2)(G) and (t)”; and (3) by adding at the end the following: “(t) Emerging Contaminants.— “(1) In general.—Amounts made available under this subsection shall be allotted to a State as if allotted under subsection (a)(1)(D) as a capitalization grant, for deposit into the State loan fund of the State, for the purposes described in subsection (a)(2)(G). “(2) Authorization of appropriations.—There is authorized to be appropriated to carry out this subsection $100,000,000 for each of fiscal years 2020 through 2024, to remain available until expended.” .