Sponsors (3)
The bill expands eligible SRF uses to include software, digital tools, and energy-efficiency measures—likely improving efficiency, resilience, and emissions outcomes—but risks diverting limited subsidy dollars from direct construction for disadvantaged communities, imposing new administrative burdens, and producing uneven cost and equity outcomes.
Local governments and utilities can access subsidized software and digital tools (asset-management, construction-management, operational systems) that improve water-system planning, efficiency, and project durability, lowering long-term operating and capital costs.
Urban and rural communities can implement improved stormwater-mitigation projects that reduce flood risk and water pollution, enhancing local public health and safety.
Utilities and ratepayers can benefit from funding for energy-efficiency measures that lower utility energy use and greenhouse-gas emissions, potentially reducing energy bills for customers.
Low-income communities and rural areas could receive fewer direct construction grants because SRF subsidy dollars may be redirected to subsidize software and digital tools.
Taxpayers and ratepayers could bear increased costs if subsidized technology projects underperform or require ongoing maintenance not covered by the subsidy.
Wealthier or better-resourced utilities are more likely to capture subsidies for digital tools, raising equity concerns and risking that disadvantaged systems are left behind.
Based on analysis of 2 sections of legislative text.
Allows state water pollution control revolving funds to subsidize processes, materials, techniques, and technologies (including specified digital tools) for water/energy efficiency, stormwater mitigation, and sustainable, cost‑effective projects.
Introduced September 19, 2025 by Vince Fong · Last progress September 19, 2025
Amends federal rules for state water pollution control revolving funds to explicitly allow subsidization of processes, materials, techniques, and technologies that advance water‑ and energy‑efficiency, reduce stormwater runoff, and support cost‑effective, sustainably planned projects. The change specifically calls out digital tools — such as asset‑management software, operational‑analysis software, and advanced digital construction management systems — as eligible examples of covered technologies. The change clarifies and expands what states may fund through subsidization (grants, principal forgiveness, negative interest loans, etc.) under these revolving funds, helping utilities and local governments use modern tools and methods for planning, design, construction, operations, and maintenance of water infrastructure.