H.R. 3862: Clean Water SRF Parity Act of 2025

This bill, known as the Clean Water SRF Parity Act of 2025, aims to amend the Federal Water Pollution Control Act to expand the types of projects that can receive financial assistance through state water pollution control revolving funds. Here’s a breakdown of its main provisions:

1. Expanded Eligibility for Financial Assistance

The bill proposes changes to Section 603 of the Federal Water Pollution Control Act, specifically:

• Addition of Nonprofit Entities: It allows qualified nonprofit entities to receive financial assistance for:
• Construction or acquisition of treatment works.
• Improvements to existing treatment works.
• Any other activities related to water pollution control that are already eligible.

2. Special Provisions for Privately Owned Treatment Works

The bill adds new rules regarding privately owned treatment works, permitting financial assistance for:

• Improvements to existing privately owned treatment works.
• Construction of new privately owned treatment works.
• Implementing measures to:
• Reduce demand through water conservation and efficiency.
• Lower energy consumption.
• Enhance security.
• Other activities related to water pollution control that align with existing criteria.

3. Limitations on Financial Assistance

Financial assistance for privately owned treatment works can only be provided for projects that primarily benefit those who use the treatment works instead of benefiting shareholders or owners. The determination of this benefit falls to the state agency managing the water pollution control revolving fund.

4. Ineligible Activities

States will not be allowed to provide additional subsidization to qualified nonprofit entities for certain types of projects, specifically those that use funds for private treatment works that primarily benefit people or entities other than the shareholders or owners.

Relevant Companies

• VEA - Companies involved in water treatment and utilities may see changes in funding opportunities for their projects.
• XYL - This water technology company may benefit from increased support for water infrastructure improvements.
• OGA - As a provider of environmental solutions, they may be involved in projects eligible for financial assistance.