(a) Establishment

Subject to the availability of appropriations, the Administrator shall establish a wastewater efficiency grant pilot program (referred to in this section as the “pilot program”) to award grants to owners or operators of publicly owned treatment works to carry out projects that create or improve waste-to-energy systems.

(b) Selection

(1) Applications

To be eligible to receive a grant under the pilot program, an owner or operator of a treatment works shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require.

(2) Number of recipients

The Administrator shall select not more than 15 recipients of grants under the pilot program from applications submitted under paragraph (1).

(c) Use of funds

(1) In general

Subject to paragraph (2), a recipient of a grant under the pilot program may use grant funds for—

(A) sludge collection;

(B) installation of anaerobic digesters;

(C) methane capture;

(D) methane transfer;

(E) facility upgrades and retrofits necessary to create or improve waste-to-energy systems; and

(F) other new and emerging, but proven, technologies that transform waste to energy.

(2) Limitation

A grant to a recipient under the pilot program shall be not more than $4,000,000.

(d) Reports

(1) Report to the Administrator

Not later than 2 years after receiving a grant under the pilot program and each year thereafter for which amounts are made available for the pilot program under subsection (e), the recipient of the grant shall submit to the Administrator a report describing the impact of that project on the communities within 3 miles of the treatment works.

(2) Report to Congress

Not later than 1 year after first awarding grants under the pilot program and each year thereafter for which amounts are made available for the pilot program under subsection (e), the Administrator shall submit to Congress a report describing—

(A) the applications received by the Administrator for grants under the pilot program; and

(B) the projects for which grants were awarded under the pilot program.

(e) Authorization of appropriations

(1) In general

There is authorized to be appropriated to carry out the pilot program $20,000,000 for each of fiscal years 2022 through 2026, to remain available until expended.

(2) Limitation on use of funds

Of the amounts made available for grants under paragraph (1), not more than 2 percent may be used to pay the administrative costs of the Administrator.